Jobcentre Plus

Richard Graham Excerpts

Tuesday 7th July 2015 Westminster Hall

[Richard Graham (Gloucester) (Con)]

The hon. Lady talks with passion about the impact of sanctions, but does she agree that the whole business of claiming JSA is based on a contract signed by the benefit seeker and Jobcentre Plus? It is a commitment on both sides. Jobcentre Plus rarely uses sanctions. They are used only as a last resort. It is a stick and carrot approach. The reducing level of unemployment across the country shows that the approach is working effectively. Does she agree?

[Hannah Bardell]

I am afraid I do not. I have a number of examples, and I will happily cite one that comes from Citizens Advice Scotland. An east of Scotland citizens advice bureau reports that a client was sanctioned for failing to attend an appointment that he missed because he was on a forklift training course. He was advised by the jobcentre to attend after he finished his course, but was sanctioned for not coming on his normal signing-on day. The client was married with a young child and required a food parcel to feed his family.

Sadly, the stream of people coming through my constituency office door has not indicated that the job programmes are working. We want full devolution to Scotland so that we can have Scottish answers to Scottish questions on some of these matters. I have no doubt that there may be areas where sanctioning is working, but there seems to be a consensus that modernisation is required. A Poverty Alliance report in February 2015 found that action to increase state benefits, end the punitive sanctions regime, address in-work poverty, raise the minimum wage and promote the living wage that will ultimately have the biggest impact on stemming the growth of food poverty in Scotland.

The Scottish Government have done a lot to mitigate some aspects of the UK Government regime, and they continue to do what they can with the resources they have to alleviate the impact of welfare reform and cuts. Current and planned Scottish Government funding will result in an investment of around £296 million over the period 2013-14 to 2015-16. The Scottish Government are also providing £33 million in funding for the Scottish welfare fund in 2015-16 to mitigate the impact of benefits reform. We will have to see what we can do on the further cuts. They are also providing local authorities with £35 million in 2015-16 to allow them to top up discretionary housing payments to meet the estimated £44.8 million required to compensate for the cost of the bedroom tax.

The proposals in the Scotland Bill to allow the Scottish Government to top up reserved benefits are welcome, but Scotland is expected to mitigate the impact of welfare cuts from a budget that is being cut year on year. Scotland must have full control of working-age benefits to create a fairer system that provides adequate support for those who need it.

We have done a huge amount on the living wage—we are halfway towards our target of having 500 private companies paying it. We reached the 250 mark two weeks ago with a nursery just outside my constituency in West Lothian. However, the Scotland Bill as it stands restricts the devolution of employment support programmes to those for long-term unemployed and disabled people. That would prevent the Scottish Government from providing effective early intervention for those recently out of work and from joining up employment support services with previously devolved services, such as skills and education. The Smith commission report stated:

“The Scottish Parliament will have all powers over support for unemployed people through the employment programmes currently contracted by DWP (which are presently delivered mainly, but not exclusively, through the Work Programme and Work Choice) on expiry of the current commercial arrangements.”

We must intervene early, and we must have the powers to do that so that we can effectively help people out of benefits and into work. Roseanna Cunningham, the Cabinet Secretary for Fair Work, Skills and Training, has said:

“The Work Programme as it stands is not fit for a modern Scotland but there may be aspects of the current system that do work for individuals and organizations and we want to hear those views too. Professor Alan McGregor and members of the advisory group will play a key role in drawing in views from all areas of the country in as many sectors as possible.”

The Scottish Government will have responsibility for the Work programme and the Work Choice programme within two years. They have set up an advisory group so that we can work on that.

The Smith commission’s recommendations went further than the Scotland Bill’s limitations on employment support, and the SNP wants to go further yet and devolve the Jobcentre Plus network in Scotland to Holyrood. That would deliver the complete and coherent devolution of welfare-to-work functions, ensuring co-ordinated support for those out of work. Having responsibility for universal credit sanctions and conditions would also empower the Scottish Parliament to ensure a more effective, supportive and socially just approach to getting people into work. With those powers in Scotland’s hands, we could rectify the failings of the jobcentre network and the damaging changes to welfare and employment support that are harming so many in Scotland.

I want to finish by explaining why this subject is so close to my heart. I recently employed a young man called Marcus Woods who had worked passionately behind the scenes on my campaign. He had been out of work for some time and gave his time to my campaign free of charge, with great dignity and passion. I recently employed him full time. I am proud to have taken someone who had been on benefits and long-term unemployed out of unemployment and into work. I have seen with my own eyes how the opportunity to be involved in the democratic process in Scotland has inspired someone to come into full-time employment.

--- Later in debate ---

[Priti Patel]

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.

[Richard Graham]

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.

[Priti Patel]

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—