DWP Estate

Patrick Grady Excerpts

Wednesday 18th January 2017 Westminster Hall

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

I beg to move,

That this House has considered the future of the DWP estate.

It is an honour to serve under your Chairmanship, Ms Dorries, and a pleasure to see so many Members here to discuss this important issue. I am sure there will be plenty of excellent contributions and that the Minister will be given plenty of food for thought.

The Minister will be aware that this is a major issue in the Glasgow area, particularly at the moment owing to the announcement by the Department for Work and Pensions of the closure next year of half the jobcentres in the city, which is a morally outrageous plan. I hope that today’s debate is an opportunity for Members not only to discuss this serious matter, but to engage in a frank discussion about the DWP estate across the UK. I also hope the Department will listen intently to what is said here today.

This debate is not about cost considerations, spreadsheet figures or departmental proposals drawn up by people who are likely never to have visited the centres earmarked for closure. In essence, it is about how changes to the DWP estate will impact on lives, not in some abstract way but in a real sense. What might seem entirely rational and reasonable on a sheet of paper will have a profound impact on people’s lives, including those of my constituents in Cambuslang who use the jobcentre there, which unfortunately is one of the eight set to close.

My immediate concern is Cambuslang and the seven other jobcentres in Glasgow that are set to shut their doors. However, it is clear that the city is being used as a guinea pig for the reduction of DWP offices elsewhere. This matter is not just for me and my hon. Friends who represent Glasgow constituencies to worry about: all Members should be concerned. The closure of half of Glasgow’s jobcentres will be a troubling precursor to a brutal round of cuts in jobcentres across the UK. The Government will implement them without any consideration of the far-reaching and in some cases devastating implications for low-income families. In Glasgow alone, about 68,000 people who are in receipt of jobseeker’s allowance, employment support allowance and universal credit will be impacted by the closures. The cuts are so harsh and so brutal that they have achieved something that does not happen as often as it should: political consensus and almost cross-party condemnation.

At the weekend, my hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald) co-ordinated a letter to the Secretary of State for Scotland calling on him to take action on the jobcentre closures. I signed that letter with every other Glasgow MP; Scotland’s First Minister, Nicola Sturgeon; Scottish National party Members of the Scottish Parliament; Scottish Labour Members and Scottish Green party Members, as well as Labour and SNP leaders on Glasgow City Council. Despite voicing concerns on social media when the closures were first announced, Glasgow’s two Tory MSPs decided not to sign the letter.

[Patrick Grady (Glasgow North) (SNP)]

I congratulate my hon Friend on securing this debate and apologise for not being able to stay owing to commitments in the Procedure Committee. Will she join me in hoping that tomorrow Glasgow’s Conservative MSPs will have an opportunity to put on the record their opposition to the closures, especially that of Maryhill jobcentre, which is not far from their office and is in my constituency, when our colleague Bob Doris MSP leads a debate on the issue in the Scottish Parliament?

[Margaret Ferrier]

My hon. Friend makes a good point. We hope that there is consensus across all parties, including the Tory party in Scotland. I congratulate our colleague in the Scottish Parliament on again bringing forward this important debate in the Holyrood Chamber tomorrow. The decision is for Tory MSPs to make, but it is regrettable that they seem to have chosen to adopt an ideological party line rather than to lend their voice and support to the people they were elected to represent.

The Public and Commercial Services Union has also condemned the closure proposals, saying they represent a slash and burn policy by DWP. I want to put on the record my appreciation for the Evening Times, which has diligently reported the jobcentre closure story from the start and deserves recognition for its “Hands off our jobcentres” campaign. The cuts are so worrying that the Church of Scotland has intervened, condemning the effect they will have on people as fundamentally wrong and unjust, while our Catholic Archbishop, Philip Tartaglia, has expressed his concern and called on the Department to reconsider the proposals in a way that respects the dignity of claimants and meets their needs.

The concern of Members, which is demonstrably shared by civic society, is not political bluster or point scoring; it is born of genuine and legitimate concern for some of our most vulnerable constituents. I hope the Minister will listen properly today. It is unfortunate that the Secretary of State for Scotland is not here. His absence from today’s debate reflects his handling of the issue so far. I have asked him a series of written questions about when he learned of the proposed cuts to Glasgow’s jobcentres. Yesterday, in response to one of them, he was forced to admit that the DWP did not discuss the specific plans with him in advance of its announcement. This was no doubt an embarrassing confession by the Secretary of State for Scotland, but it raises an important question: why did the DWP keep the Scotland Office in the dark about the plans?

The Scottish Secretary has admitted that he met DWP representatives in July, but they provided only an overview of the Department’s estates process in general without detailing specific plans. The Minister must address this matter in her response today. Why were proposals of such huge significance kept secret from the Scotland Office, and why was a decision made to keep a Cabinet colleague uninformed, particularly given the embarrassment that would cause him when the truth came out? I can empathise with the Scottish Secretary because it seems that none of us was deemed important enough to be consulted or even informed by the DWP prior to the story breaking in the press. Indeed, it took the Department another seven hours thereafter to get round to sending affected MPs correspondence about the plans.

It is completely outrageous that the Scottish Government were not consulted on the proposals. That point specifically raises serious concerns about the UK Government’s commitment to paragraph 58 of the Smith commission’s report, which recognised that Jobcentre Plus will remain reserved, but called on the UK and Scottish Governments to

“identify ways to further link services through methods such as co-location wherever possible and establish more formal mechanisms to govern the Jobcentre Plus network in Scotland.”

The Scottish Minister for Employability and Training has written to the Secretary of State for Work and Pensions asking how the change will reduce access to services and perhaps increase the risk of sanctions that may be applied in relation to the need to attend such facilities.

The Scottish Minister has also asked for urgent advice on the future of Jobcentre Plus facilities across the rest of the country. I want to ask the same question today. Tens of thousands of people in the Glasgow area will, unacceptably, have to travel further and incur additional costs to access their social security entitlement and support. They deserve full and frank answers to these questions.

The PCS has said the closures will have an adverse impact, particularly on women, vulnerable children and people with disabilities, who are already hardest hit by Government cuts. The Government must be mindful that people travelling to jobcentres are seeking work or employment support and are doing so on very low incomes. One in three children in Glasgow last year were living in poverty—that is consistently the highest rate in Scotland according to the Joseph Rowntree Foundation. Making it more difficult for people to reach jobcentres will surely further exacerbate the problem. Indeed, the Tory Government continue to peddle the line that they want to help people into work, but continued cuts to benefits, and now these planned closures, only serve to push people further into hardship.

The Poverty Alliance has raised concerns that this reduction in face-to-face support could put people off claiming support that they need. The current sanctions regime has made accessing social security almost impossible for many people, particularly the young, and this move is likely to put people off claiming the support that they are actually entitled to. The Minister must realise that the jobcentre closures are seen as yet another callous attack on the disadvantaged and the vulnerable. They will create more hoops to jump through and increase the risk of sanctioning as a result.

I appreciate that the Minister’s response will probably seek to justify the rationale behind the closures, and I would therefore be obliged if she could also address my next points. We have been told that fewer jobcentres are needed because more people are in employment. The Fraser of Allander Institute has estimated that a hard Brexit could cost as many as 80,000 Scottish jobs. Following the Prime Minister’s speech yesterday, it now appears that we are facing not only a hard Brexit but, indeed, the hardest Brexit. Given that fact, and the significant potential for economic volatility ahead of us, what sense does it make to close the doors of jobcentres, let alone half of all the Glasgow jobcentres? Surely we should be cautious in our approach. The approach that the DWP is taking is like leaving the house in the morning wearing shorts and a T-shirt when snow is forecast later in the day. There is a shocking lack of foresight here, and I ask that the potential impact of Brexit be given proper consideration as a reason to halt these plans.

The other point that I would like to make regarding the rationale for closing the centres concerns savings. We are told that the financial benefit to the taxpayer is sufficient reason to close these centres. What we have not seen is any proof that other avenues were explored. Closure seems to have been the desired and only option on the table, rather than the one of last resort. Is the Minister able to tell us today what other options were considered for each of the eight centres marked for closure? Were alternative premises sought? Was the option of co-location fully explored for each of them?

The Minister must understand the lack of faith that we have in this process. This is particularly the case because of the shambolic manner in which another Government Department recently handled the closure of offices in Scotland. In total, 137 Her Majesty’s Revenue and Customs offices across the UK are closing, with potentially thousands of job losses in Scotland. The Government say they are prioritising closing the tax gap and getting people back into work, but the closure of HMRC offices and jobcentres could seriously compromise both. The National Audit Office recently released a report on HMRC’s estate changes, showing that up to 38,000 staff will be expected to move large distances as part of a reorganisation, with some having to relocate by up to 174 miles if they want to keep their jobs. Now, although the Government have said that no jobcentre staff are expected to lose their jobs as a result of DWP estate changes, the HMRC changes have set a worrying precedent. We need to be clear about how many staff will be affected, and whether there will be a guarantee of no redundancies—I repeat, no redundancies.

We in the SNP are concerned that this is a slippery slope—a move to downsize with a view to making savings that will ultimately lead to job losses as well as having a negative impact on service delivery. We are calling for progress on plans to close the sites to be halted immediately until a full equality impact assessment is carried out. We remain concerned that the proposed exercise will not consider the vast impact that these closures will have across Glasgow. Only three of the eight proposed closures are going to consultation, while the others will not be consulted on. That is completely inadequate; the consultation must look at the entire package of closures. Will the Minister, in her response, undertake to widen the scope of the consultation to look at the broader picture right across Glasgow? We are disappointed and worried that only carrying out an equality analysis post the consultation period will fail to identify the devastating hardships that these closures could cause our communities in Glasgow. We must have a proper guarantee that the results of any equality analysis will be considered in the eventual decision, and assurance that the Government will amend their plans accordingly. It is vital that a full equality impact assessment is conducted by the DWP urgently; I seek assurance from the Minister today that she will give that very serious consideration.

In summary, I would like the Minister to tell me why the Secretary of State for Scotland was kept in the dark about the planned closures in Glasgow. How might these changes reduce access to services and possibly increase the risk of sanctions, which are applied around the need to attend these facilities? What future changes are being discussed within the DWP for Jobcentre Plus facilities across the rest of the country? I would like the Minister to address the points that I made regarding our uncertain economic future due to Brexit, and the wisdom of closing the centres at this time. Also, what other options were considered for each of the eight centres that are marked for closure? Finally, will the Minister commit to widening the scope of the consultation and carrying out a full equality impact assessment?