(9 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I congratulate the hon. Member for Islwyn (Chris Evans) on securing the debate and I pay tribute to many of his remarks. He rightly stated that Jobcentre Plus is important and nothing to do with left or right on the political spectrum. The debate is about people; it should not be about structures or institutions, although I will come on to speak about the jobcentres and various programmes and partnerships.
Importantly, the debate is about many of the bigger societal issues to do with unemployment and about the challenges that we face as a society in all our communities, given what unemployment and the spiral of worklessness mean for individuals and families. That was the focus of our welfare reforms in the previous Parliament under my right hon. Friend the Secretary of State for Work and Pensions, as it will be of this Government’s agenda. We are on the side of working families and individuals, and we aspire to achieve full employment and, rightly, to do more to support those individuals who are furthest away from the labour market. Those are the individuals on whom we must concentrate Government resources, to help and train them and to secure real opportunities for them.
I thank everyone who has contributed to this important debate, which has covered a range of significant employment issues, including support to help people in work. In my view, work helps to transform people’s lives, which is about the wider world consisting of individuals as well as of society.
Jobcentre Plus, however, is the core theme of today’s debate. Labour Members will not be surprised that I will categorically disagree with claims that Jobcentre Plus is not fit for purpose. Like the hon. Member for Stretford and Urmston (Kate Green), I pay tribute to everyone who works in our jobcentres and in Jobcentre Plus. Every day up and down the country our advisers work with individuals, local authorities and local organisations in the community to support and help people not only to come off benefits in the long term, but—importantly—to get access to the labour market. We want to help them on the journey to secure long-term employment.
Every day our work coaches conduct nearly 100,000 interviews across a network of more than 7,000 jobcentres. They work closely with local employers—as is right and proper—which I have seen for myself in my constituency. If I remember rightly, back in 2010 in Witham, I too was almost critical, because my perception was that jobcentres did not have enough of a locus in the local employment market and were not making enough connections with local employers. That has now changed, and I have seen that for myself in the jobcentres I have visited. I can speak with some conviction about the Witham jobcentre, which now works with local employers.
Importantly, our jobcentres and work coaches have a clear understanding of the local labour market. They know where the skills shortages are and who the training providers in their community are. They provide the guiding role to support claimants who come to them in search of local employment opportunities. Therefore, I take issue with the overall assertion that Jobcentre Plus is not fit for purpose. It is doing a good job and we should pause for a minute and recognise that we now have one of the highest employment rates in the developed world and the second lowest unemployment in the European Union. That has been achieved through our network of jobcentres, obviously, but also through rightly focusing on support and assistance to people who need that to access the labour market. That has been achieved, yes, through the wider economic reforms of the Government, but also by creating the right economic conditions for businesses to grow and thrive. It is important for sustainable businesses to employ people, to sustain employment and to invest in people, jobs and economic growth. Jobcentre Plus also has a vital role in all our local communities.
I am sure that everyone in the Chamber and across the political divide pays tribute to the work of people in the jobcentres. However, we are discussing their expertise and increasing their powers, as the Minister rightly said. What is her response to my example of twice the number of people in the Work programme being sanctioned as are actually getting work through it? Surely that statistic suggests that such programmes are not working.
We touched on this during debate on the Scotland Bill last week and I told the hon. Lady that if she wants to bring me the evidence of such cases, I will look into them myself. I have also said that to her party colleagues—bring me the cases and I will intervene personally, look into them in more detail and see what can be done. I want to come on to the Work programme as well.
It is important. We want to ensure that we are doing the right thing for individuals and supporting them, because the issue is not only one of institutions, processes and structures, although they are there for a reason.
I will highlight a couple of points about Jobcentre Plus. There has been some criticism of it, but the National Audit Office reported that it responded well to the challenge of the recession from 2008 onwards and the recovery. The OECD stated:
“The UK experience suggests that merging the public employment service and benefit agency has improved employment outcomes”.
Furthermore, Jobcentre Plus has added £5.5 billion to UK GDP since its introduction. In the previous Parliament, the Work and Pensions Committee commented that Jobcentre Plus has performed “effectively” and “is cost-effective”. Last year, Jobcentre Plus achieved or exceeded every one of its labour market performance measures. That is important.
Jobcentre Plus is a high-volume national organisation, and so not every experience will be perfect. That is a fact of life with such an organisation—not everything will be right. We monitor performance and have service standards, but more can always be done to improve quality and professionalism. We are conscious of how we can improve services, and improvements are based on feedback that we receive. I experience that personally when I visit jobcentres.
I turn now to the issue of partnership. The Government cannot achieve our objectives on employment on our own. We can do so only by working in partnership with others in the private and voluntary sectors, at national, regional and local levels. I have touched briefly on my own experiences going out and about to jobcentres, and I have seen that partnership work in action. I know about the partnership work taking place in the constituency of the hon. Member for Islwyn—we see it in case studies and he will be fully aware of it—and I pay tribute to all the community-based and local organisations in his constituency. One is Groundwork’s Routes 2 Life, which provides work experience and skills training for over-50s—again, this issue does not just affect young people but runs across the age range. It is relevant to the fuller working lives agenda, as well as how we can support those young people who may face challenges when trying to get a foot in the labour market because they do not have the right work experience or CV. Borough councils are involved as well. Across Wales, there are plenty of great examples of partnership, and they should be developed further.
Importantly—this is always a challenge for central Government in my view—this is a question of integration: how we join up working, and how that joined-up approach delivers results. We need the right outcomes, not just for the structures and systems but for individuals. I am also clear that I want more local authorities, in particular, to work more closely with voluntary sector, charity and other community and labour market partners.
On a national level, there is much more integration. Following the general election, my party has committed to achieving full employment, with more focus on young people getting the support they need. We have also made a commitment to help more women get work and to support more individuals with disabilities getting into work. We can do that only by working across Government. That is right and proper, and we will use every lever at the disposal of central Government to integrate our services and support everyone across the age range, as well as young people and people with disability or health issues.
On devolution, there is, for example, the Manchester devolution deal for the combined authority. Projects in central London are working with local authorities, and—together with Glasgow City Council—we will launch a programme to support employment and support allowance claimants in finding and remaining in employment. That is the right way forward. We should devolve to our communities, and the Government support that agenda.
I am pleased to say that there is greater partnership integration with the Work programme, including getting people access to apprenticeship opportunities, and there is more to do on that. We want a more constructive joint-working approach to ensure that, for example, claimants in Wales are able to access the full range of support that they need. That includes projects funded through the European social fund, which are targeted at particular disadvantaged communities; naturally, we want to do more to support them.
The Work programme aims to support claimants at risk of long-term unemployment. It has been successful and, to date, has supported over 400,000 long-term unemployed people in getting back into work. As a result, we have been able to get more people back into work and support people through very challenging circumstances.
The Work programme has been improving after a shaky start, but it is still not performing well for disabled people. Will the Minister tell us how she intends to improve performance for disabled people and answer my question about the role of the Work Choice programme in that?
Absolutely. I will. My point is that the Work programme has been successful—it has been one of the most successful employment programmes in the United Kingdom’s history. At the end of the day, that should be welcomed and supported by all of us.
The Government are clear that we want to support more individuals with disability into work. A lot of work is being done with Work programme contractors and providers to concentrate more resources and investment in that area. If I may just share an anecdote, last week I sat down with Work programme providers to look at what has been working and some of the successes and strengths of the Work programme, and how we can address some of the real challenges for individuals with disabilities. That is the right thing to do, and we should all be focusing on that. We should also look at what support and interventions we can put in place not just for individuals with disability but for other individuals who are further away from the labour market—for example, those with health conditions.
Am I right in thinking that there will at some point, probably before the end of the year, be a review of some of the criteria for selection for contractors for the Work programme? I believe that the current contracts come to an end at the beginning of 2017, so there is an opportunity for all Members—and for Select Committees, all-party groups, and so on—to chip in ideas for the Government to consider over the next few months.
My hon. Friend is right. We can never stand still on this issue and it is important that we learn the lessons as we go forward. On that basis, I would welcome Members’ views.
To conclude, Mr Williams—
(9 years, 1 month ago)
Commons ChamberThis has been a full debate on a range of important issues in which there is a great deal of interest from Members of this House, Members of the Scottish Parliament and people throughout Scotland. As my right hon. Friend the Secretary of State for Scotland has made clear on many occasions during the Bill’s passage, the Government are committed to implementing the Smith commission agreement in full, and we believe the provisions of the Bill meet the spirit and substance of the agreement.
I will explain the Government’s approach as I respond to the proposed amendments in turn. Before I do so, however, I want to reflect on the fact that the Bill will give the Scottish Parliament very extensive new powers on welfare. Benefits for which powers are being devolved accounted for £2.5 billion of spending last year, which is about a quarter of all welfare spending in Scotland outside the state pension.
The clauses on welfare provide tremendous opportunities for the Scottish Government and Scottish Parliament to design, implement and structure welfare in Scotland. Such a huge change should not be underestimated. If the Scottish Government and Scottish National party want to spend more on welfare, they will of course be able to do so. The consequence of the Smith agreement is that the UK and Scottish Governments will in future work together to provide welfare systems for people in Scotland, and we need to co-operate in doing that. Scotland’s two Governments already work together well and achieve a great deal, and I am confident that that will continue as we seek to implement the devolution of these significant welfare powers.
This is now day three in Committee on the Scotland Bill, and thus far the Government have refused to accept any amendments. The Scottish Parliament’s Devolution (Further Powers) Committee has said that the Bill does not meet Smith, and the House of Commons Library says that it does not meet Smith.
Will the Government now agree to accept some of the amendments? I tell the right hon. Lady that she had better not even be thinking of amending the Bill in the House of Lords, out of sight of democratic scrutiny by this House. Will she assure me today that the Government will not table amendments in the House of Lords, but will do so on the Floor of the House of Commons?
As the hon. Gentleman will have heard the Secretary of State say, the Library simply does not say that at all. I will go through the specific amendments that we are debating, and it is important for the hon. Gentleman to hear the points I will make by way of clarification. We have only just started day three, and I think he should give the Government the benefit of the doubt and listen to the arguments that we will advance.
Amendments 128 and 112 relate to the disability benefits aspects of clause 19. The clause, and specifically the interpretation of what is meant by “disability benefit”, is intended to allow the Scottish Parliament to legislate in areas currently covered by attendance allowance, disability living allowance and personal independence payment. There are a number of common features to these disability benefits. The key ones are, first, that they are usually intended to contribute towards additional costs that people with physical or mental health conditions or disabilities can incur; secondly, that they should primarily be directed at people with long-term physical or mental health conditions or disabilities, rather than conditions of a transient nature; and, thirdly, that disability is by reference to the significant effects or needs arising, rather than the fact of being disabled.
I want to focus on the third aim. Clearly, disability and long-term health issues affect many people across the UK. In fact, they affect more than 12 million people under the Equality Act 2010 definition, and disability has an impact on each of those 12 million people in an individual and very specific way. We know that many disabled people can fully participate in society and can work, and that they have no or very modest additional costs, but we also know that others of course experience great barriers that some disabled people or non-disabled people simply do not have. Let us be clear: it is right that support through the social security system is targeted. That targeted support is there to help them, and it is provided by targeting needs and effects, rather than diagnoses or conditions primarily. That is the approach taken for all disability benefits.
It is in that context that the Government have approached their commitment to devolving disability benefits to the Scottish Parliament. By setting out the broad parameters to the benefits, we can confer legislative competence for a defined policy area in such a way that allows the Scottish Parliament to determine how it achieves that and does not tie it to using existing rules and criteria. In that spirit, our approach has not been to take the seemingly more obvious route of somehow mimicking the existing legislative provisions or providing a formulation that sets absolute boundaries; our view is that either of those approaches could place unnecessary restrictions on the Scottish Parliament. Our approach must reflect the benefits as they stand, including, importantly, the fact that they contain exceptions both to allow entitlement and to restrict payment where necessary. I emphasise that the Bill will provide ample flexibility and allow the Scottish Parliament to legislate for myriad outcomes for people who would not meet the more general requirements.
The Minister says that the Government do not want to place unnecessary restrictions on the Scottish Parliament. Which of the amendments that hon. Members have spoken to would do that?
I am talking about the definition of a disability benefit, which we want to ensure provides ample flexibility for the Scottish Parliament to legislate for a range of outcomes for people who would not otherwise meet the requirements.
Amendment 48 relates to carers’ benefits. As with disability benefits, our approach has been to describe the key features of the existing carer’s allowance, but clause 19 will not restrict the Scottish Parliament to following all the detailed features of that allowance. For example, it will not be restricted to making a benefit payment to only one carer in respect of each disabled person. Taken together with existing devolved powers in areas such as social care, the clause will ensure that the Scottish Parliament has powers to set out how support for carers is provided, including the rate at which it is paid and whether it is paid as a benefit or provided in some other way.
There is also a broad definition of a disabled person in respect of whom a carer’s benefit can be paid. Amendment 48 would extend the Scottish Parliament’s legislative competence still further, allowing it to provide a carer’s benefit to children under 16, people in full-time education or those who are gainfully employed. I will take each category in turn and explain why we do not consider that there is a case for that expansion of competence.
It is a long-standing principle of the social security system that those under 16 are normally supported not by the benefits system but by guardians, local authorities or parents. With regard to those not gainfully employed, carer’s allowance is designed to recognise those whose opportunities to work are limited because of the time that they dedicate to caring duties. There needs to be a threshold so that we can judge whether a claimant is in employment. The reference to gainful employment provides that threshold.
Those in full-time education are normally supported not by the benefits system but by the education maintenance system of loans and grants. Clause 19 will allow the Scottish Parliament to decide on the details of who carers’ benefits are paid to, how much is paid and what the eligibility criteria should be. The parameters of the definition of “relevant carer” are appropriate and reflect long-standing principles about the purpose of carers’ benefits.
The Minister has explained the restricted definition of carers, but if the Scottish Parliament has full power to set up a new devolved benefit on top of a reserved benefit, why should it not be up to the Scottish Parliament to decide on its own definition of carers? That should not affect the provisions in the Bill.
As I have said, the clause will allow the Scottish Parliament to decide on the details of who carers’ benefits are paid to. I want to make progress now, because I need to come to many other points that have been made.
I am grateful to the Minister; I think there is some problem with Ministers getting to the House.
How will the block grant be adjusted to take into account both the extra welfare responsibilities and the extra revenues? That is a rather important point if we are to understand the significance of the clauses on benefits.
That is subject to the discussions taking place on the fiscal framework.
Returning to carers, we recognise and appreciate, as everybody in the House will, the contribution of informal carers, who provide tremendous support to parents and other family members.
Amendment 115 relates to the powers being devolved on the provision of the regulated social fund. Clause 20 will give the Scottish Parliament legislative competence over support currently provided through a number of reserved benefits such as funeral payments and maternity grants, which some Members have briefly touched on today. As with our approach to disability benefits and carers’ benefits, the clause devolves not simply the existing benefits but the subject matter of them. That will give the Scottish Parliament wide-ranging powers to make its own provision for the areas in question.
I wish to respond briefly to Members’ points about amendments 132 and 117—the hon. Member for Nottingham North (Mr Allen), who is no longer in his place, spoke to the former. The Government have made significant changes to the clauses on discretionary payments since they were first published in draft in January, having listened to the views of the Scottish Government, the Scottish Parliament and key stakeholders. The Bill now includes new top-up provisions in clause 21, and we have removed some provisions on discretionary housing payments that people felt would unnecessarily constrain the powers being devolved. Together, clauses 21 to 23 will give the Scottish Parliament significant powers to legislate for discretionary payments to people in Scotland, whether by topping up a reserved benefit or by providing assistance to meet short-term needs. The Scottish Government will be able to provide people with money additional to that provided by the UK Government.
Some Members mentioned welfare reforms and tax credits. I should point out that my right hon. Friend the Chancellor will bring his Budget to the House next week, when further measures will be highlighted. The hon. Member for Banff and Buchan mentioned the letter in today’s Herald and spoke about children, and I want to put it on the record that the proportion of children in poverty is at its lowest level since the mid-1980s.
There has been some discussion of welfare reform. The Government are absolutely committed not just to reforming welfare but to supporting families into work. The best route out of poverty is work, and I make no apology for all our efforts to raise incomes by expanding employment opportunities. We will of course have a debate about employment opportunities in a later group of amendments this afternoon, and because we are short of time I will not touch on that subject now.
Members mentioned sanctions and conditionality. Conditionality is an important feature of our welfare system, and I note that both the Labour party and the Scottish National party have always stated that they agree that there should be conditionality in the system. I put it on the record again that there has been an independent review of sanctions, the Oakley review. The Government have accepted all the recommendations highlighted in it and have already implemented a number of provisions, including improvements to the hardship payments process.
The Minister is right that the Oakley report made a number of recommendations about process, but Oakley was not asked to address the real concerns of the Select Committee on Work and Pensions, which were about whether sanctions were being applied fairly and proportionately. What can the Minister say in response to the Select Committee’s recommendations on the problems with the substance of how sanctions are operated?
I am aware of the Select Committee’s report, and the Department will put its views on the record. I urge Members, particularly SNP Members, who have previously mentioned sanctions cases in the House, to write to me directly with specific cases and the points that they wish to make.
I will not give way, because we are running out of time.
Members mentioned clause 23, on discretionary payments. I assure the Committee that the clause will not limit the Scottish Parliament’s existing competence and will not prevent the making of discretionary payments to people in families under exceptional pressure.
Finally, I turn to new clause 31, which would insert a new exception into the social security reservation in the Scotland Act 1998, giving the Scottish Parliament the power to create new benefits. As set out on Second Reading and in our discussions with the Scottish Government, the Government agree with the principle in the Smith commission agreement that the Scottish Parliament should be able to create new benefits.
No. I have taken interventions and I want to make my point. Time is running out.
On a point of order, Mr Crausby. The Minister has repeatedly said that she cannot respond to the House because time is short. We have until 7 o’clock.
For the record, let me say that we have other groups of amendments to discuss this afternoon. I will happily have that discussion and I will come on to some of those other points in later discussions. There is no excuse.
Perhaps I may continue. We believe that the Scottish Parliament can already create new benefits under either existing powers or those devolved by the Bill. The Smith commission was clear about which welfare powers were to be devolved to the Scottish Parliament, and the Bill delivers those powers in a way that allows that Parliament to replace the benefits and payments for which powers are being devolved.
On areas of devolved responsibility outside welfare, we believe that the Scottish Parliament has the powers to provide financial assistance to people in devolved areas—it currently does so in some areas already. We do not consider that the social security reservation prevents the Scottish Parliament from providing such financial assistance. The proposed new exception would give the Scottish Parliament competence to legislate to create new benefits in any area other than those where reserved powers existed on 28 May 2015—the date on which the Bill was introduced. That would flip the social security reservation on its head. As such, that would not provide a new power to create benefits in areas of devolved responsibility; rather, it would devolve further areas of responsibility to the Scottish Parliament, which is not what the Smith commission agreement called for.
Undermining the social security reservation in that way would simply limit the freedom of the UK Parliament when introducing new welfare benefits, or making changes to existing reserved benefits in the future. We will discuss many other clauses and groups of amendments this afternoon, and I will happily cover some of those points in those discussions. At this stage, however, I urge hon. Members to withdraw their amendments.
I appreciate that the Minister has come to the Dispatch Box to respond to the amendments, but I am slightly disappointed that she has used the excuse of restricted time; we have another five hours left and only two more groups of amendments. As I said at the end of my initial contribution, if the Government are to accept any amendments at all it would be useful for them to accept new clause 31, as that would give the Scottish Parliament power to establish any new benefit in a devolved area and top up any benefit in the reserved area. That would give it a wide-ranging power to design a system of welfare in Scotland that fits the needs of the Scottish people, which is incredibly important. I will push new clause 31 to the vote later today, but in the meantime I will push amendments 128 and 48 to the vote.
Question put, That the amendment be made.
I begin by commending the contributions not just on this group but throughout the day. It has been said that the Government are not doing what the Smith commission said we should. We are clear that the commission recommended that the UK Government devolve all powers specifically in relation to contracted employment programmes, but the amendments go well beyond that remit and would include the powers to operate support through Jobcentre Plus.
Beyond that, there are key reasons why the amendments do not work. First, there would be no clear demarcation of responsibilities between the Scottish and UK Governments around the provision of employment support. The UK Government would retain the Executive competence under existing legislation and could continue to operate employment programmes and Jobcentre Plus. This would create a confusing, disjointed and misaligned landscape of support that could hinder employment support as much as it helps move people back to work.
Clause 26 manages that risk by creating clear lines of accountability between those claimants for whom Scottish Ministers can create employment programmes and those who will continue to be supported through the Jobcentre Plus structure. In particular, it makes it clear that the Scottish Parliament can only provide employment support for claimants at risk of long-term unemployment where the assistance lasts at least a year and for disabled claimants likely to need greater support. It thereby draws a line between such schemes and the core functions of Jobcentre Plus, enabling a smooth delivery of an integrated welfare and benefits system and, importantly, resulting in a better service for claimants.
In the debate around the devolution of contracted employment programmes, there have been extensive discussions through the joint ministerial working group on welfare, which has played a key role in ensuring a seamless transfer of responsibility. As my right hon. Friend the Secretary of State said, these are ongoing discussions, and, importantly, officials are working to set up the right framework and ways of working. On the Work programme, our officials have had many meetings with Scottish Government officials on a range of aspects relating to the delivery of contracted employment support programmes. That engagement is good. It is concerned with how we can work together to develop integrated local support and the issue of Skills Development Scotland in jobcentres, which of course is going strong today.
I would like to touch on some of the other points raised in this debate. The hon. Member for Livingston (Hannah Bardell) spoke about the current system for employment. The Government are delivering on the current system for welfare reform and it is working in Scotland, too, as demonstrated by record levels of men and women in employment. Importantly, they are providing more support for getting lone parents back to work. In Scotland, benefits reform has seen 2 million people back in work and employment continuing to rise. That is to be commended and supported. For our ongoing discussions at official and ministerial level, it is at the heart of what we are trying to achieve.
Amendment 113 applies to the matters that clause 26 will except from reservation for job search and support. Clause 26 delivers on the Smith commission agreement to give the Scottish Parliament the legislative competence to establish employment programmes that support disabled people and that offer long-term support to benefit claimants at the risk of long-term unemployment. I have no doubt that that is welcomed by all hon. Members. The amendments to clause 26 would have changed the scope of the legislative competence of the Scottish Parliament to allow for the provision of employment programmes for those at risk of long-term unemployment where assistance, as I have said, has been ongoing for less than one year.
We want to ensure that the employment landscape in Scotland is not confusing when it comes to the support structure in Scotland. Importantly, we want to ensure that Jobcentre Plus continues to deliver effectively for claimants, while also giving employers greater continuity in respect of the overall landscape.
I shall speak now to amendments 9, 10 and 114 collectively and show how clause 26 already covers many of the points raised by them. Amendment 9 is designed to add to the illustrative list of the ways in which the power to make arrangements for employer support might be used. Members will be pleased to hear that the list provided in the clause is purely illustrative and that it would be possible for the Scottish Government to work with local authorities and other partners and stakeholders to design and deliver employment programmes. The same applies to amendment 10, which is designed to add to the illustrative forms of the assistance that Scottish Ministers might provide under clause 26.
On the point about the devolution of the Access to Work programme, which is the subject of amendment 114, we have not sought unreasonably to limit the legislative competence of the Scottish Parliament. Non-repayable awards such as those provided through the Access to Work scheme are already covered in clause 26. As such, the Scottish Government can choose to introduce a similar form of support for disabled people additional to that provided by the Access to Work programme, should they wish to do so. Given that Access to Work is an integral element of the support we offer, let me be clear that this Government intend to continue the Access to Work provision in Scotland and will retain the associated funding.
I hope that my response has assured hon. Members that clause 26 fully enables the Scottish Parliament to make the provisions covered in amendments 9, 10 and 114 and has set out a clear rationale as to why the Access to Work programme will remain a reserved programme.
We have had a fascinating debate, and it has been a pleasure to participate in it. It seems to me that there is much agreement across the Benches on this side of the House. The hon. Member for Stretford and Urmston (Kate Green) made some important points about tailoring work programmes in de-industrialised areas, and I certainly agree with much of what she said about West Lothian. Although Livingston is its name, it does not fully take into consideration the many former mining towns in my constituency. I well know the impact of de-industrialisation and the need for tailored work programmes there.
The hon. Member for Edinburgh South (Ian Murray) touched on the future jobs fund, and I would certainly be interested in looking further at how we can work together on that. The hon. Member for Stretford and Urmston highlighted the importance she placed on it, and made it clear that she saw the importance of devolution.
My hon. Friend the Member for Glasgow South West (Chris Stephens) spoke about his experience as a Unison representative, the importance of access to work for those with disabilities and how those who were already in work could be helped to find further employment if they developed a disability. My hon. Friend the Member for Banff and Buchan (Dr Whiteford) spoke passionately—as she has throughout the debate—about Opportunities for All. That initiative has been a huge success in Scotland, and it is a very good example of how local authorities can work closely with the Government. I think that my hon. Friend the Member for Angus (Mike Weir) and I are still stuck on the point made by the hon. Member for Edinburgh South about the detail of the devolution of those powers to local authorities, given that, as was pointed out by my hon. Friend the Member for Banff and Buchan, 90% of ring-fencing has been abolished.
The hon. Member for Edinburgh South also referred to college funding. He may have missed my comments about the increase in the number of modern apprenticeships, and the investment that has been made by the SNP Government. We are clearly investing more in colleges than Labour ever did. College resource budgets increased to £526 million in 2015-16, which is well above Labour’s highest level of £510 million in 2006-07, in cash terms. The number of full-time students aged under 25 has increased by more than 15%, and the number of those aged over 25 has also risen.
The Minister talked a great deal about Access to Work, and why it should not be devolved. She spoke of the success of the current system, and said that it might become disjointed if further powers were devolved. We would argue that there is already a significantly disjointed approach, given the number of problems caused by benefit sanctions. I know that many of our constituents come to our surgeries, and walk through the doors of our constituency offices, with harrowing and desperate stories about sanctions, and citizens advice bureaux have informed us of a number of such cases.
A CAB in the south of Scotland reported that a client had been sanctioned for the second time for failing to log into Universal Jobmatch. The client’s local library had been closed for refurbishment, and there was no other access to public computers in the local area. The sanction was upheld following a mandatory reconsideration request, and the client produced a letter from his doctor stating that his mental health had declined as a direct result. He was also building up council tax debts, and his home telephone had been disconnected.
We must remember that we are not just debating statistics today; we are debating real people’s lives, and real situations. We are talking about people left in desperate circumstances as a result of benefit sanctions. If we do not change the system, people in Scotland and throughout the United Kingdom will continue to suffer.
Question put, That the amendment be made.
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Written StatementsThe Employment, Social Policy, Health and Consumer Affairs Council took place on 18 June 2015 in Luxembourg. Lord Freud, Minister for welfare reform, represented the UK.
There was a policy debate on the European semester 2015. As part of the discussion, the Council sought approval of draft Council recommendations on the national reform programmes 2015 to each member state; sought endorsement of the opinions of the Employment Committee (EMCO) and the Social Protection Committee (SPC) for the assessment of the 2015 country-specific. Most Ministers welcomed the streamlined process and outlined their acceptance for their respective CSRs and endorsed the EMCO report on employment performance monitor and benchmarks. Lord Freud highlighted the progress made domestically on issues such as childcare and skills.
The Council agreed a general approach on the proposals for a Council decision on guidelines for the employment policies of the member states.
The Council adopted draft Council conclusions on European Court of Auditors’ special report No. 3/2015 “EU Youth Guarantee: first steps taken, but implementation risk ahead”; and draft Council conclusions on “Equal income opportunities for women and men: Closing the gender gap on pensions”.
The Council received progress reports on the proposal for a directive of the European Parliament and of the Council on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures; and the proposal for a Council directive on implementing the principle of equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation. On women on boards in particular, the Commission hoped for a general approach at the October EPSCO Council in order for the file to be adopted by the end of the year.
Under any other business, the Latvian presidency informed the Council on current legislative proposals, and outcomes of the conferences organised by the Latvian presidency. The Commission provided information on the national Roma integration strategy—annual implementation report; and the report on the functioning of the transitional arrangements on free movement of workers from Croatia and accompanying Commission staff working document. The Luxembourg delegation provided information on the work programme of the incoming presidency, stating that it intended to make progress on the platform on undeclared work and the anti-discrimination directive and wanted to focus on inclusive growth. It also wanted to explore the challenges arising from technological developments in the workplace and the skills needed for young people to successfully enter the labour market.
[HCWS69]
(9 years, 2 months ago)
Commons Chamber6. What support his Department is providing to young people seeking apprenticeships and employment.
Apprenticeships give young people the chance to reach their potential, giving them the skills and training required to achieve a successful career. The Government have funded training elements of apprenticeships in England, and between 2009-10 and 2013-14 there has been a 40% increase in the number of young people starting one.
Does my right hon. Friend agree that the Conservative commitment to create an additional 3 million apprenticeships over this Parliament will give young people the skills they need to get on in life? Will she tell the House what she is doing to work with both the Department for Work and Pensions and the Department for Business, Innovation and Skills to ensure that the quality of those new apprenticeships is top notch and improving all the time?
Let me start by commending my hon. Friend and fellow Essex MP for his work in this area, particularly with his local employers, many of whom I have met and know. He is of course right to say that our commitment to create 3 million apprenticeships will give young people the vital skills to reach their full potential. We are already working with the Department for Business, Innovation and Skills and employers as part of our apprenticeship reforms to ensure that Britain’s young people get a quality apprenticeship that will help them to reach their full potential.
While there are indeed some excellent apprenticeships—there is no doubt about that—sadly, all too often there are employers who use them as, in effect, a rebranded youth training scheme or youth opportunities programme-type arrangement. What will the Minister do to publish details of employers who abuse the apprenticeship system, or does the scrutiny simply not allow for that?
We all know, and this House recognises, that apprenticeships are vital. They give young people the chance to learn the skills to reach their full potential. [Interruption.] I hear an Opposition Member chuntering away. Employers play a vital role in this scheme. I have already touched on the fact that we are working with the Department for Business, Innovation and Skills on our reforms and delivering 3 million apprenticeships. Employers will be at the heart of that, providing quality training and accountability in their role with apprenticeships.
20. On a recent visit to Fuel Conservation Services in Hednesford, I saw the impact that access to apprenticeships and high-quality training has on young people entering the workplace. Will my right hon. Friend join me in praising the work of businesses like FCS in offering apprenticeships to young people? [Interruption.] Does she recognise the role that businesses can play in working with the Government on initiatives to tackle youth unemployment?
Let me start by welcoming my hon. Friend to the House as a new Member of Parliament. It is interesting to hear the conversations among those on the Opposition Benches. They do not like success stories, such as that of the business in my hon. Friend’s constituency. I commend her local business. It is important that the House recognises the vital contribution that employers like FCS make in offering young people apprenticeships. She touches on a very valuable point: they support young people in the transition from school to the world of work, which we know is challenging for young people, and we will support employers in that.
Having served an apprenticeship under a dual system of high-quality apprenticeships, I ask the Minister to accept that employers have to play a much larger role in providing the skills space for our apprentices, and that just expanding level 2 apprenticeships is not sufficient.
I welcome the hon. Lady’s comments. This is all about quality. The quality of the apprenticeships is what we should concern ourselves with: working with employers in particular to make sure that they are giving our young people not just the hopes and aspirations but the skills they require for their own businesses and sectors to enable succession planning within companies and sectors. Also, we have made a commitment to deliver 3 million new apprenticeships, and we are absolutely clear that they should now provide parity with a degree-equivalent qualification. Employers play an important role in delivering that.
8. What his policy is on maintaining the level of (a) employment and support allowance, (b) personal independence payment and (c) attendance allowance for disabled claimants.
9. What arrangements are in place to prevent child maintenance payments from increasing when a parent is prevented from spending time with their child by the recipient of the payments.
The issue of contact with children and that of the calculation of child maintenance, although related, are separate. In the calculation, we will reflect the level of care that a parent provides for any child for whom he or she should pay maintenance, but we have no power to direct what the level of care should be. That is a matter for the parents to agree either privately or through the courts.
I asked the question on behalf of a constituent, but obviously many others will be in the same situation. I do not agree that there is no link, because it clearly states on the Child Support Agency website that if someone spends less time with their children, they will pay more in child maintenance. Some people spend less time with their children because, through no fault of their own and with no suggestion of any detriment to the children if they were to see them, the partner prevents that from happening. Will the Minister examine this and stop punishing parents twice over?
Child contact following the separation of two parents is always a difficult and emotive issue, and the child’s needs must be met by both parents, in terms of financial support, when they separate. We are investing in support for parents to help them make more family-based child maintenance arrangements, and we will continue to help and secure separated families so that they can do what is in the best interests of their child. The hon. Lady mentioned that she has a particular case, and I am happy to look into it.
The Minister rightly said that contact and payment are separate issues. In most cases it is right that a child stays in contact with both parents if they are no longer living together, but I wish to press her on something: it cannot be right that a payment should be linked to a right to see that child.
My right hon. Friend makes a valid point. As I said, we know that this is an emotive issue for separating parents, and much of it is arbitrated in the courts system. It is all about balance in terms of parental support and parental access. Access is a matter for the courts, not for the Department for Work and Pensions. As I have said, we as a Department and as a Government are already investing in support for parents to make the right kind of arrangements. We will continue to do so and help separated families so that they can do what is in the best interests of their child.
14. If he will make an assessment of the effects of the benefits sanctions and conditionality regime on use of food banks.
We have looked at the issue extensively, and we agree with the conclusion reached by the all-party parliamentary inquiry into hunger that the reasons for food bank use are complex and overlapping. There is no robust evidence that directly links sanctions and food bank use.
While all Members of this House will commend the work carried out by charities such as the Gate food bank in Alloa in my constituency, it is absolutely clear from all independent evidence that the sanctions regime is having a heartbreaking effect on people such as David Duncan from Fife, who, as reported in this morning's Daily Record, was sanctioned after missing a jobcentre appointment, despite being in hospital recovering after major surgery following a serious heart attack. Will the Minister commit to an immediate review of the conditionality and sanctions regime to put a stop to this relentless and heartless assault on vulnerable people in this country?
Food banks play an important role in local welfare provision. I do not accept anything that the hon. Lady has said. In Scotland, the number of jobseeker’s allowance sanctions has decreased from 84,000 in 2013 to 55,000—
Well, we are devolving welfare, and we can have this debate next week on the Floor of the House. It is also important to emphasise that the purpose of sanctions is to encourage claimants to comply with reasonable requirements to help them develop and move into the world of work. That is vital.
I thank the Minister for her response, but in the year following the introduction of benefits sanctions, approximately 2,500 people were sanctioned in my city of Dundee, leading to a 51% increase in referrals to Dundee’s Trussell Trust food bank, including many parents with young children. The number is rising year on year, despite what she just said about falling figures. Does she not accept that there is an intrinsic link between the two, and that it is an absolute disgrace to have rising food poverty in the 21st century?
Sanctions were in place for a significant amount of time before this Government and the previous Government. Let me reiterate the point, made in the recent Oakley review of benefits sanctions, that sanctions are a
“key element of the mutual obligation that underpins both the effectiveness and fairness of the social security system.”
For the benefit of the hon. Gentleman, let me say that we have accepted all the recommendations made by Oakley. This brings us back to the fact that sanctions play an important role in encouraging and supporting people to go back to work.
Does the Minister agree that those who pay for these benefits through their taxes expect an effective mechanism to be in place, such as sanctions, to ensure that the rules are complied with?
My hon. Friend is right, because at the end of the day we are speaking about hard-working taxpayers who support and contribute to the welfare system. Of course, we have a duty to support those who are seeking work and who are in receipt of benefits, but at the same time, hard-working taxpayers want to ensure that their taxes are spent fairly.
All I know is that those at Mission Trinity, an excellent independent non-political food bank in Goole, tell me that benefits sanctions are driving people to use it. I support the benefit sanctions system, but one issue that seems to be a problem is the consistency with which sanctions are applied. May we have a review of this and ensure that the recipients of the sanctions properly understand the consequences?
I commend my hon. Friend’s local food bank, and him, on the work done in his constituency. If he has specific examples that he would like to draw to my attention, I will happily discuss them with him.
May I welcome the Minister to her new role? Before the election, we had a most unsatisfactory debate on benefits sanctions with her predecessor. I have to say, Mr Speaker, that in a disappointing election for Labour, the result in Wirral West was one bright spot.
One person in four is now being sanctioned, and sanctions are cited as one of the top reasons for people visiting food banks. Will the Minister take steps to make sure that DWP staff apply the good reasons code correctly and end these vicious and arbitrary sanctions?
I thank the hon. Lady for her welcome, although I must say I thought her comments about my predecessor were ungracious.
Regarding sanctions, I assure the House that for those in genuine need, hardship payments are on offer, as is support for those who have been sanctioned. Support is there for those who can demonstrate that they require financial assistance to buy essential items. It is absolutely right that in our jobcentres and in the interactions with claimants, we give them the right sort of support, guidance and advice, and I assure the hon. Lady that that does take place.
T1. If he will make a statement on his departmental responsibilities.
T2. What support is the Department giving young people in my constituency who are seeking apprenticeships and employment?
I commend my hon. Friend, who is a strong and assiduous champion of young people and apprenticeships. I assure him that we are engaging with young people in his constituency, promoting nine apprenticeships that are available with his local authority and working in partnership with Kirklees College to promote traineeships. In 2013-14, 616 apprenticeships were started in his constituency.
We welcome the Government’s belated decision to consult on a charge cap for savers withdrawing their money from pensions. Will the cap apply only to exit fees, or will it also cover recurring charges on investment and income drawdown products? Which? says that that sort of cap could save £10,000 out of a typical £36,000 pension pot, and before her appointment, in March, the new Minister for Pensions said that that sort of cap was needed to protect savers. Will the wider cap be the subject of the Government’s consultation?
T9. The latest employment statistics show that under this Government record numbers of women are in work, yet there are 2 million more women who would like to be in employment but are not. What discussions has the Minister had with colleagues to ensure that the barriers that those women face are being removed?
My right hon. Friend is right. We are all about ensuring that more women get employment and enter the labour market. On the barriers to women entering the labour market, she will be aware of our work, for example, on shared parental leave, increasing the availability of childcare places, and increasing the provision of childcare from 15 free hours to 30 free hours. In relation to women and pay, the Government will require large employers to publish information on the gender pay gap.
T7. My hon. Friend the Member for St Helens South and Whiston (Marie Rimmer) is right. Given that on 5 June the High Court found the Department’s actions—this time on PIP delays—unlawful, does the Secretary of State think that he and his Department are above the law? Why does he refuse to publish the details of the number of people who have died within six weeks of their claims for incapacity benefit and employment and support allowance, including those who have been found fit for work?
As the employment figures tell us, the work plan is working. Before I came to this place, I ran my own business, and when I saw the same CVs coming back six months or a year later, I would choose to email or call those people and try to give them some coaching. It is a great opportunity for businesses to mentor individuals who are not being touched by the work plan.
I congratulate my hon. Friend on coming into the House. I think she was referring to the Work programme, in particular. She is absolutely right. For us, if the Work programme is to be successful—and it is succeeding; we have record numbers of people in employment because of it—it will be through working with employers to find the right kind of work experience that helps them to fill vacancies and to make a big difference too. Work programme providers have the freedom to design and deliver, with employers, the support that is most appropriate for claimants.
One of my constituents who has been disabled from birth has had her mobility allowances reduced, so she cannot have her mobility car. She is now housebound, and she says she is being punished because of her disability by the Government. Why is the Secretary of State so keen to be the obedient lapdog of the Chancellor in spreading misery wherever possible to the most vulnerable? This Government are conducting a campaign of harassment against disabled people in our country.
The hon. Gentleman has highlighted a constituency case, and I would be very happy to discuss it with him and look into the details.
This weekend I had a discussion about the difficulties that those suffering from mental health conditions face when trying to access support, specifically in relation to budgeting. What support is available, particularly in the most difficult cases?
(9 years, 2 months ago)
Written StatementsThe Employment, Social Policy, Health and Consumer Affairs Council will take place on 18 June 2015 in Luxembourg. The UK will be represented by the Minister for Welfare Reform, Lord Freud.
There will be a policy debate on the European semester 2015. As part of the discussion, the Council will seek approval of draft Council recommendations on the national reform programmes 2015 of each member state; seek endorsement of the opinions of the Employment Committee (EMCO) and the Social Protection Committee (SPC) for the assessment of the 2015 country-specific recommendations (CSRs) and implementation of the 2014 CSRs and endorsement of the EMCO report on employment performance monitor and benchmarks.
The Council will seek a general approach on the proposals for a Council decision on guidelines for the employment policies of the member states.
The Council will also seek to adopt draft Council conclusions on European Court of Auditors special report No 3/2015 “EU Youth Guarantee: first steps taken, but implementation risk ahead”; and draft Council conclusions on equal income opportunities for women and men: Closing the gender gap on pensions.
The Council will receive progress reports on the proposal for a directive of the European Parliament and of the Council on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures; and the proposal for a Council directive on implementing the principle of equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation.
Under any other business, the Latvian presidency will inform on current legislative proposals, and outcomes of the conferences organised by the Latvian presidency. The Commission will provide information on the national Roma integration strategy—annual implementation report; and the report on the functioning of the transitional arrangements on free movement of workers from Croatia and accompanying Commission staff working document. The Luxembourg delegation will provide information on the work programme of the incoming presidency.
[HCWS39]
(10 years, 5 months ago)
Commons ChamberThank you, Madam Deputy Speaker, for calling me to speak in this debate. I am delighted to be able to contribute to a debate on what I consider to be an historic and era-defining Budget. In my view, this is a first-in-a-generation Budget that empowers the people. It is about putting people first and back in control of their savings, spending and pensions. That has been made possible not only because of the hard and tough decisions this Government have had to make—we all recognise and acknowledge that—but because, importantly, there is a long-term economic plan that will safeguard and secure the future of Britain’s hard-working families.
Judging by what I have heard from Opposition Members this afternoon, they spend a lot of time talking down Britain, our economy and British industries and companies. To be frank, why would a business want to invest in some of their constituencies, let alone think about long-term investment in this country, given some of their negative and hostile remarks about business?
As the economy grows, employment is reaching record levels, for which Opposition Members should be grateful. The country now has record numbers in terms of employment growth and, importantly, new business growth. It is businesses that pay the taxes in this country—they employ people, and the money, jobs and prosperity that are created contribute to taxes, which pay for the welfare budgets that Opposition Members have been speaking about.
This is a Budget that rewards hard work, cuts taxes for those on lower incomes, empowers people to go out to work and gives families greater choice over how they spend their money—their savings and their pensions. What is so wrong about that? I find the hostility of Labour Members overwhelming; I really do.
My constituents will benefit from the increase in the personal allowance, which I assume the Labour party does not support, and fuel duty will be 20p lower under this Government than it would have been had Labour’s plans been implemented. We are helping people to keep more of what they earn, in contrast to Labour.
The Leader of the Opposition talks about a temporary and unworkable freeze in energy prices, but it is this Government and Conservatives who are cutting energy bills for families and businesses by removing and reforming the costly green levies that the right hon. Member for Doncaster North (Edward Miliband) advocated when he was Energy Secretary—he championed them. The investment that the Government are supporting to develop new technologies, such as carbon capture and storage and the exploration of shale gas, is very important. Opposition Members have overlooked that. Those technologies will bring energy security to this country and create jobs. It should not be lost on the Chamber that they will help to reduce our dependence on energy imports from regimes such as Russia. That point is particularly salient right now.
It is the Conservatives that are giving people genuine help with their living costs by cutting taxes, including council tax, and using tax incentives to encourage investment, rather than by following the policies of the Labour party, which would tax with one hand and give less back with the other.
We have heard about the importance of work in this debate. Developing an economy that supports business and business investment is one of the most important ways in which we can get more people into meaningful employment. Under Labour, businesses were penalised by a legacy of high taxes. Labour went into the last general election wanting to increase corporation tax on small firms and national insurance contributions. We have slashed those rates. We are bringing corporation tax down to 20%, making the UK one of the most competitive places in the world for enterprise. That is another point that is lost on Opposition Members.
The Conservatives and the coalition Government know that it is the genius, entrepreneurial spirit and wealth-creating acumen of businesses that create jobs. This afternoon, I met a prominent Essex business, Claridon Group, which is based in south Essex. It made that exact point to me. Such businesses are the wealth creators. They are the ones that have created the jobs and the prosperity in Essex. Claridon Group is exporting to a range of emerging markets, which are difficult to do business with. It praised the Budget, the Government’s approach to exports, and the incentives for companies to go overseas and expand their businesses.
The best way for the Government to help such businesses is to remove the barriers to growth, cut corporation tax and cut red tape so that they can invest in creating new jobs. They want to keep more money in this country. Taxes need to be low so that they can continue to invest and create jobs. I commend not just businesses in the entrepreneurial county of Essex, but businesses across the country that are doing the same things. It is small and medium-sized enterprises in the private sector that are creating the record number of jobs, and they should be supported and commended.
There are plenty of other policies in the Budget that will help businesses to grow and to support employment. The cut in beer duty should not be overlooked, despite the disparaging remarks of Opposition Members, and neither should the abolition of the alcohol duty escalator, which will help to create thousands of new jobs in the sector. There is high demand for British wines and spirits, and the market for them overseas is growing hugely. My constituency contains the West Street vineyard, which is producing award-winning wines that will start to go overseas, and Hayman Distillers.
I want to touch briefly on air passenger duty. The abolition of bands C and D will make Britain more attractive to travellers from east Asia, India and Latin America, which are important markets for communities in this country. That is to be commended.
In conclusion, this is a very sound Budget. It is also a refreshing Budget. It is the first Budget in a generation to send out a powerful message to savers, investors and British businesses. It is a Budget that will help to secure the economic foundations of our country.
(10 years, 6 months ago)
Commons ChamberI would like to begin my contribution by paying tribute to businesses up and down the country, particularly in Essex and in my constituency, for the jobs they have created. Under this Government, unemployment in my constituency has fallen by almost 80% since it peaked in 2009 under Labour. In the last year alone, unemployment has fallen by 28% in Witham, resulting in almost 400 more people in work and off benefits. That should be welcomed and I would like to think everybody in the House does welcome it.
In October, the Secretary of State for Work and Pensions came to Witham, and when he visited a jobs and apprenticeship fair that I hosted, he saw the confidence and the large number of local businesses looking to recruit and take on new staff. I thank everybody who was involved in the jobs fair. As I have said repeatedly in this House, Essex is the county of entrepreneurs. With the right Government policies in place, we will continue to create jobs, wealth and prosperity.
The one thing that would do the most damage to job creation and employment prospects in my constituency would be for the Government to follow the appalling policies and gimmicks supported by the Labour party. In the previous general election, Labour planned to increase the small profits rate and corporation tax on business. It plotted to increase the burden on employers through national insurance contributions, and planned to increase fuel duty. It left office with a regulatory and compliance regime in place that cost small and medium-sized enterprises in the region of £17 billion. Those measures would cost jobs, take money out of the economy and harm economic growth.
The Labour party has no answer to the economic challenges facing this country, and it has zero credibility when it comes to the debate on jobs. I have listened to the contributions from the Opposition this afternoon. What we have learned—not just this afternoon but in the past four years—is that the Labour party has no faith in the entrepreneurial spirit of British business, which has created 1.6 million private sector jobs since the general election. Labour would tax and borrow more, expand the public sector and take Britain back to the dinosaur days of the failed socialist policies of the past; notwithstanding the fact, of course, that the Labour leader supports exactly what President Hollande is doing in France.
My constituents and businesses in Witham want, and have, a Government who get behind them and are committed to supporting job creation. When we think of the £17 billion regulatory burden left by the Labour Government—the equivalent of 11 times the amount of money this Government are currently investing in funding apprenticeships—even the modest savings on red tape that this Government are making can make a real difference in freeing up funds for businesses to invest in jobs and economic growth.
Naturally, we have to reject the Opposition motion on that basis alone. It is completely unviable and demonstrates once again the economic illiteracy of the Labour party. Creating jobs and getting more people into employment are central to this Government’s long-term economic plan to build a stronger and more competitive economy, in sharp contrast to the Labour party and the motion it has tabled. That is why we will reject the motion.
(11 years, 9 months ago)
Commons ChamberI welcome this debate, as it gives us an opportunity to highlight the positive steps that the Government have taken to get people off benefits and back into work. It is extraordinary that the Opposition should want to hold this debate given that many of the problems that the Government face in tackling unemployment are due to the Labour party’s failings when it was last in power. Labour left a legacy of more than 3 million workless families, with youth unemployment of about 1 million—the figure rose by about 40% from 2004—and that was when the economy was growing. Millions of people had never worked as Labour confined people to the scrapheap and kept people on disability and incapacity benefits even though they were capable of working. Labour also imposed heavy tax and regulatory burdens on businesses, which stopped them employing people and creating jobs.
I am sure that we all remember the following remarkable statement by the previous Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown). Once upon a time, he spoke about British jobs for British workers, but his policies—especially on open-door immigration in respect of eastern Europe and accession states—effectively left a generation of young people struggling to compete with their international competitors in our domestic labour market. That policy denied hundreds of thousands—if not millions—of British people jobs.
Labour also left that generation of young people struggling to compete with their international competitors because our school standards fell. In 2000, England was ranked 8th in the world for maths, 7th for literacy and 4th for science. By the time Labour left office, we had dropped down the international league tables to 24th for maths, 17th for reading and 14th for science. Education is very important for young people’s job prospects and this country’s ability to attract inward foreign investment and compete for jobs internationally, and Labour’s neglect of education has left Britain far behind in the global race for jobs, investment and growth. The current Government are trying to turn that around.
I applaud the Secretary of State for his commitment to changing the culture in this country. Ministers are putting an end to the “something for nothing” culture that blights our economy and saps our hunger to compete in the global race. It also undermines many of our communities and does so much to damage aspiration—the concept of social mobility and moving onwards and upwards in life. Over time, reforms to education and welfare will improve the prospects for young people who are currently trapped in challenging situations.
My constituency has some areas of substantial deprivation and poverty, yet youth unemployment has fallen by 6.6% in the last year—and it would be nice to hear a few positive words of congratulation from Opposition Members on such achievements. We should do whatever we can to support our young people to get into employment and to enhance their skills, and we should create opportunities for them not only in the labour market, but through apprenticeships and other innovative schemes with small businesses.
Many young people in my constituency are securing apprenticeship places, and the Government should be congratulated on doubling the number of adult apprenticeships to about 650,000 this year, from a figure of 300,000 inherited from the previous Government. If we include apprenticeships for 16 to 18-year-olds, there will be close to 900,000 apprentices in this country this year. Apprenticeships help people to learn new skills, to get a foothold in the labour market and to increase their confidence by having work experience.
Unemployment is, of course, still too high. No one likes the fact that it is high, but we should remember that the Government are also reducing the number of economically inactive people, by helping to get those who were left on the scrapheap by Labour into meaningful employment. Even in these challenging economic times, Britain is expanding its work force and businesses in my constituency are eager to grow and create more jobs, and they are doing so.
About 83% of jobs in my constituency are based in small and medium-sized enterprises—a figure considerably higher than the national average. Those firms are local wealth creators, and they will do their utmost to support local jobs. Many of them are opening their doors to young people, again giving them the opportunity to get off benefits, get work experience and increase their skills. That is why it is so important that the Government continue to focus on getting rid of business regulation, so that small businesses have a greater opportunity to invest and grow.
Unlike the Labour party, which tried to force small businesses to pay for the deficit by increasing all sorts of taxes and regulatory burdens on them, this Government understand small businesses and know exactly what needs to be done to cut red tape costs, which are still about £17 billion a year. That is equivalent to the cost of Crossrail or almost two Olympic games; it is 11 times the apprenticeships budget.
I urge the Government to continue with all the positive work that they are doing. I know that Ministers value the private sector and the role that it plays in supporting employment and will do more in the months ahead to support the sector. I welcome the steps that the Government are taking to create jobs and enable our young people and unemployed to move onwards, off benefits and back into work. The employment prospects of my constituents are far greater and higher now than they would have been under a Labour Government.
(11 years, 9 months ago)
Commons ChamberT9. Essex is an important engine of economic growth in the United Kingdom. Businesses in our county are being held back by poor broadband infrastructure, and yet we have been placed 31st out of 35 on the Broadband Delivery UK project framework. Will the Secretary of State support local businesses in Essex by prioritising the roll-out of high-speed broadband?
(12 years, 7 months ago)
Commons ChamberWe are working towards that, and so far it has been a success. Small companies of nine employees or fewer will have access to free software upgrades, so those that do not have a software payroll system will not incur any great charge. We are running trials that will start in April and that will join with the DWP in October. We are on target and we will continue to work towards that date. That is our expectation and ambition.
6. What steps he plans to take to reduce the cost of sickness benefit paid to UK citizens living abroad.
We are bound by EU rules to pay sickness benefits abroad when people are eligible. I emphasise that they need to be eligible, and the same rules apply to the contributory element on employment and support allowance and incapacity benefit—there are no additional limits. We are determined to clamp down on people claiming when they are not eligible, and we are arguing that through at the moment, even in the Commission.
In the light of the significant sums being paid in sickness benefits to UK citizens abroad will my right hon. Friend update the House on the legal dispute between the Government and the European Commission? Will he assure me that he will fight the Commission all the way on this matter?
The Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), is in the Councils on this one. My hon. Friend refers to the Commission’s idea that the habitual residency test should be abolished. That is quite wrong and we disagree with it fundamentally, but we are not alone: a large number of European nations disagree with the Commission and we join them in saying that this is a step too far—a leap into an area that has always been preserved for national Governments and in which it has no right. We will fight this, and I believe that we will win.