Tuesday 13th March 2012

(12 years, 2 months ago)

Westminster Hall
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Marcus Jones Portrait Mr Jones
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I thank the hon. Lady for her comments. There is a distinction. With work experience, we are talking about a short-term opportunity for young people; they can be given some short-term experience of work to allow them to get into mainstream employment, often with employers who are keen to take on a certain number of those who have been on work experience and to put them into proper employment. There is a distinction from internships, which have traditionally been used as a method of giving people experience in this place, but also in law firms and all sorts of other professions. There is a distinction, and we need to be alive to that.

Over recent weeks, I have been pretty dismayed by the response to the current Work Experience scheme offered by the Government in partnership with many of our best companies in this country. I have been dismayed by the vitriol towards employers, who have not sought to create a free supply of labour but, on the contrary, have shown a genuine will to give experience and a chance to young people who, for whatever reason, have not been given that chance elsewhere.

Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
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I was open to the hon. Gentleman’s comments about not being ideological, so I hoped that he would rebut some of the interventions that he has already had, which were extremely ideological. On the specific question of the Work Experience scheme, does he agree that the work experience must be relevant to the needs and previous experience of the participants?

Marcus Jones Portrait Mr Jones
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It does have to be experience, but I hope that the hon. Lady is not taking us down the route of demeaning certain types of employment—I will come on to this in a moment—or of being what I call a job snob. I am sure that she is not seeking to do that at all. Over recent weeks, however, we have seen a small cohort of people who have been willing to show a great deal of vitriol towards some of those companies which were willing to give young people an opportunity. In the debate today and over the past few weeks, we have seen what I consider to be the huge red herring of whether work experience is compulsory or voluntary, and that has been a huge distraction from the real issue.

--- Later in debate ---
Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
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It is a pleasure to serve under your chairmanship, Mr Howarth. I congratulate the hon. Member for Nuneaton (Mr Jones) on securing this debate, although despite his claims that he would not be ideological, I think that he was ideological throughout.

Last Friday, I met a young man in a local community café that is run entirely by volunteers and opens for two hours a week. It is quite new, but it has been very successful. The young man started to volunteer in that café through an arrangement with his school, as he was soon to be a school leaver and had some learning difficulties. He has since left school, although he has continued to volunteer. He told me that as a result of that volunteering experience, Debenhams had offered him the opportunity for paid work in its city café for four hours a day. I thought that that was a great story and a wonderful example of what work experience can do.

When I served on Edinburgh council, we started a scheme called JET—jobs, education and training—first in one high school, although it was subsequently rolled out to others. It was for a cohort of pupils who were in their final year at school but who were likely to emerge with very little to show for it, probably because they hardly ever attended. The pupils and their families were approached and asked to sign up for the scheme. They had a reduced school timetable; they spent one day a week doing work experience and one day a week at a college doing training that was related to that work experience. There were about 20 of those pupils in each school, and although I cannot say that they all came out with jobs at the end of the scheme—we discovered that a lot of them had deep-rooted personal problems—it was a good programme that involved a period of work experience and, importantly, was related to training.

I therefore refute absolutely the allegations that Labour Members are somehow against work experience or even—this is the allegation repeated by the hon. Member for Nuneaton—that we are content to leave people stuck in unemployment. That is totally wrong.

Marcus Jones Portrait Mr Marcus Jones
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Will the hon. Lady say whether she supports the Government’s work experience programme that I spent about 20 minutes outlining?

Sheila Gilmore Portrait Sheila Gilmore
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I was about to come on to that, but I wanted to establish the importance of correctly managed work experience.

What is wrong with the current scheme? To me, the most important thing is that work experience moves people away from their current situation and towards employability, whether or not that involves a job right away. As Ministers and others have said, it is essential to get people away from lying in bed or watching daytime TV—anyone who has been the parent of a teenager, particularly a teenage boy, will say amen to that. However, there is no one-size-fits-all solution.

The first, but by no means that last, example of the scheme was related to me by a constituent. She was still quite young and had worked in the past. She had qualifications and had done holiday jobs, but she had then become unemployed. Her complaint was that she was expected to do eight-weeks’ work experience—the shelf stacking that everybody goes on about—and wondered how that related to moving her to where she wanted to be or make her more employable. I do not think that that is being a job snob. We are mixing up two things.

Claire Perry Portrait Claire Perry
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May I ask the hon. Lady a personal question? My first job was baking bread in a bakery at the age of 14. What was the hon. Lady’s first work experience?

Sheila Gilmore Portrait Sheila Gilmore
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My first work experience, which was paid, was washing dishes in a department store in Coventry. We have all had such jobs. The point that I am trying to make is that, in the case to which I referred, it was not the young woman’s first job experience. She was not someone who had never worked and needed to get from that situation to another. Of course most of us have experience of different types of temporary work.

Andrew Bingham Portrait Andrew Bingham (High Peak) (Con)
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The hon. Lady just said that the lady she was referring to was forced into work experience. It is a voluntary programme. Frankly, if the lady is doing work experience, it might involve another skill that she can learn, but it is voluntary; she cannot have been compelled to do it.

Sheila Gilmore Portrait Sheila Gilmore
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I shall explain the issue as far as this young woman was concerned, and I think that this is where it comes down to conditionality. She was certainly put under, as she explained it, considerable pressure—as part of a general conditionality point—to do the work experience or her benefits would be put at risk. That was how she perceived it.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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Is not part of the problem that, as the Minister has repeatedly said, and as others have said today, this is a voluntary scheme, but jobcentres sent out letters telling people that they would lose their benefit if they did not join the scheme? There is, at the very least, huge confusion in Jobcentre Plus about what the terms of this arrangement are.

Sheila Gilmore Portrait Sheila Gilmore
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That is the kind of information that I have been getting from constituents. I am referring to the rules on conditionality and the advice or information that they were getting from the local jobcentre. This point is different from the point about whether people are sanctioned when they leave the scheme; it is about the conditionality regime.

Simon Hart Portrait Simon Hart
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In the specific circumstances that the hon. Lady outlines, what advice does she give her constituents when they come to her with that issue?

Sheila Gilmore Portrait Sheila Gilmore
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My advice to people in that situation—the young woman to whom I was referring had already completed the period of work experience—would be to question the relevance or appropriateness of the work experience to their situation. The young lady to whom I was referring did not need to learn those skills; she already had them. A different question might arise if we want to say about someone, “Should they apply for a job of that nature?” That young woman would have been qualified for any vacancy that came up of that nature. Some hon. Members present would no doubt say that she should simply apply for such a job, but anyone who has gone for such jobs when they are in that situation will find that they are likely to be turned down as over-qualified, or employers might think that they would leave quite quickly. It is a different question from whether work experience of that type is useful. They are two completely separate issues.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
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Surely, doing the work experience would both display a can-do attitude and place the lady in the shop window for the organisation, which could ultimately lead to a permanent role.

Sheila Gilmore Portrait Sheila Gilmore
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I am not convinced, from the young woman’s description of her experience, that she was in the shop window of anything. I should like to quote the chief executive of the Centre for Economic and Social Inclusion. His view is not that there should be no work experience, but that there should be

“a good ‘match’ between the nature of the work experience and the young person”.

He gives an example. He says that

“for someone with a law degree doing work experience at a legal firm would be a much better match than, say, the night shift at a pound shop. We have learned time and again that the better the match,”

the better the prospect of someone getting employment.

Brandon Lewis Portrait Brandon Lewis
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I thank the hon. Lady for giving way again and being so generous with her time. This scheme is voluntary and the work experience that people do is based on an area and an industry in which they are interested. The hon. Lady is a member of the Select Committee on Work and Pensions, but I suggest that she look at what her constituent has brought her, because she may be getting confused—mixed-up—between the work experience scheme and other schemes such as the mandatory work scheme, the skills and training schemes and even the Work programme. It seems as though she is talking about a totally different scheme, which is part of the problem that the Socialist Workers party has had in purposely trying to confuse the situation.

Sheila Gilmore Portrait Sheila Gilmore
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I accept that there is a plethora of schemes and some confusion—the media have been confused—but I am absolutely certain that the mandatory work experience scheme was not involved in this example. It is not good enough to have the view that when people make the point about relevant work experience—relevant to people’s existing experience and skills—they should simply be condemned as snooty job snobs and people who are not willing to work. That is not the case.

Chris White Portrait Chris White
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Does the hon. Lady not agree that relevant skills would include presentation, punctuality, communication and being able to get on with one’s co-workers?

Sheila Gilmore Portrait Sheila Gilmore
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Absolutely, but we must ensure that these schemes build on the experience and skills that people already have. Of course, some people have not worked for a very long time. Some young people have never held down a job. For them, some basic experiences will enable them to grow, develop and mature.

Tom Blenkinsop Portrait Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
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I come from a town with 14% unemployment; indeed, it has a history of unemployment over the past two or three decades. Most people will make any sacrifice, in any way, shape or form, for the promise of a job. The problem at the moment is not necessarily this policy in its totality; I think that it is well meaning, although perhaps it has a few kinks in it. The problem is the change to tax credits. There may be no promise of a job at the end, or particularly in retail, there may be a job that is part time and for fewer than 24 hours a week. Some people might therefore see such work experience as valueless, because the job at the end might not pay as much as they would receive on the dole.

Sheila Gilmore Portrait Sheila Gilmore
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My hon. Friend is correct. Someone spoke previously about an elephant in the room. The job at the end is probably the biggest elephant in the room. It is not good enough to say that the whole problem is about people not having skills or training and that, somehow, if we list all the schemes, work programmes and other programmes, we have solved the unemployment problem. There are two sides to the unemployment problem. There is the problem of the lack of jobs, which is very considerable in some areas of the country, and, yes, there are issues about whether people have the proper skills and experience to take up opportunities. We need both. To say constantly that we are on top of this because we have programme X, Y, Z and goodness knows what else will not solve the problem of the lack of jobs.

One big issue that we face is that we do not know a lot about the outcomes of the scheme. We are told that it is a wonderful scheme and is having great results. Will the Minister tell us when he will give us more detailed information about what is actually happening? Ministers and Back Benchers constantly recite the fact that half of those doing work experience are in jobs within a short time. That is based on an initial pilot involving some 1,300 people between January and March 2011. The more accurate statement—I accept that the Minister usually gives the more accurate statement, although others do not—is that one half or 51%, to be exact, were off benefits 13 weeks after the work experience period. They may have come off benefits and gone into a job or to college, or simply not have been claiming. For example, someone who has got to the end of their six months on jobseeker’s allowance and who has a working partner may simply stop claiming.

Chris Grayling Portrait The Minister of State, Department for Work and Pensions (Chris Grayling)
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Will the hon. Lady confirm that the benchmark that we use to judge the success of the work experience programme is exactly the same benchmark that she and her colleagues used to judge what they claimed to be the success—it was at a much higher cost—of the future jobs fund?

Sheila Gilmore Portrait Sheila Gilmore
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I am not going to dispute—[Interruption.] It is important to know a bit more about what has been happening. All these assertions are made on the basis of a fairly small number. If the Minister has other information to give us, that is all well and good, but we are not hearing that at the moment. I asked him in a written question how many of those who had taken part in the scheme, either between 16 and 18 years of age or between 18 and 25, had found employment with the firm with which they had done the work experience or with another employer. The answer was that the Department does not hold that information. The Government are not tracking that information. I find that worrying, because assertions and statements are being made about the success of a programme, but answers to the detailed questions that anyone might reasonably want to ask about these programmes are simply not being given to us.

Tom Blenkinsop Portrait Tom Blenkinsop
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May I give my hon. Friend an example? The Government are changing the point at which an employee’s rights kick in and they become a full employee with full rights to 24 months. What is there to say that a young person who has got work experience through this scheme and gets a job will not find that the workplace is subject to a short-time-working agreement and that they are probably first in line for a LIFO—last in, first out—scheme, unofficially, by that employer, because their employment rights do not kick in for another 12 months?

Sheila Gilmore Portrait Sheila Gilmore
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The situation might be even worse than that. At Treasury questions last week, my hon. Friend the Member for Chesterfield (Toby Perkins), who is not here today, raised the case of two young people who had been given a job at the end of a work experience scheme, but who were paid off within two weeks, which is not particularly satisfactory. If we are not tracking outcomes properly, we should be. If we are to judge the validity of schemes, we need the data.

Andrew Bingham Portrait Andrew Bingham
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Is the hon. Lady aware that 51% of the first 1,300 people who took part in the scheme were off benefits after 13 weeks?

Sheila Gilmore Portrait Sheila Gilmore
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That is precisely what I said—that 51% of the first 1,300 people who took part in the scheme between January and March 2011 were off benefits. That was the point where I came in.

We have to look not only at the quality of work experience, but at the fact that some firms may simply be using schemes to get people to do jobs they would otherwise have employed someone to do.

On a slightly different matter—this does not relate to the work experience scheme pure and simple—I was astonished to read in no less a paper than The Sunday Times, which is hardly a friend of the left, that McDonald’s had, it seemed to me, reframed its trainee posts as apprenticeships. It was taking Government money to train people in the skills they would need if they got a job at McDonald’s, such as customer service and food hygiene. Many people, including students and others, have gone through the McDonald’s scheme over many years and they have gone on to work in McDonald’s. However, people on the scheme are now being designated as apprentices, and I know of one case in which somebody doing a Saturday job got a contract as an apprentice. McDonald’s got the money from the Government and was quoted as saying that no additional jobs had been created.

Chris Grayling Portrait Chris Grayling
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Is the hon. Lady aware that she is describing the previous Labour Government’s policy of allowing companies that developed in-work training places to designate them as apprenticeships? Does she accept that what she is describing originated under the Labour Government and has been deemed—by that Government and this one—to be an important part of the career development mix?

Sheila Gilmore Portrait Sheila Gilmore
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Even if the Minister tells me that that is the case, I would not necessarily always accept everything previous Governments have done, because such provisions are not helping us in any respect to create additional jobs. The worry about firms taking successive people to do work experience without payment is that they may be reducing their other employees’ opportunities to do paid work—through additional hours, for example. We need reassurance that that is not happening, and if we do not get it, we will have some queries.

George Hollingbery Portrait George Hollingbery
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When I looked into the success of the future jobs fund, there was much trumpeting of 50% placements and costs per placement being reasonable. However, the cost per placement was about £3,000 to £5,000, while the figure under the work experience scheme is £200 to £300. Does the hon. Lady not agree that it was somewhat perverse for 80% of the placements under the future jobs fund to be in the public sector? Looking around the piece, that would hardly save the Government money in the long run.

Sheila Gilmore Portrait Sheila Gilmore
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My understanding regarding those public sector jobs is that there was, in part, a difficulty over whether the measures would constitute state aid if they were carried out in some other way. It is regrettable if that became an obstacle, because the future jobs fund was a good model and gave people good-quality work experience. I hope that the Government will consider returning to it in the future.

It is not my position or that of any Opposition Member that work experience is simply not to be done. However, we want people to have work experience that genuinely improves their employability; if it does not, it has to be questioned.

Brandon Lewis Portrait Brandon Lewis (Great Yarmouth) (Con)
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It is a pleasure to serve under your chairmanship, Mr Howarth. I congratulate my hon. Friend the Member for Nuneaton (Mr Jones) on securing this important debate.

It is important to start off with why we are here. The scheme, which has worked successfully, has been in place since January last year, and it is only in the past few weeks that it has gained any publicity. It has been working very nicely, the companies involved in it have been taking people on and more than 34,000 people have been through it. That tells us that something has happened in just the past few weeks to bring it to public attention.

Sheila Gilmore Portrait Sheila Gilmore
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I hope the hon. Gentleman will accept that some of us did, in fact, raise questions considerably longer ago than the past few weeks, but we were put down with exactly the same suggestions that we were being over-fussy and supporting people who thought they were too good to work.

Brandon Lewis Portrait Brandon Lewis
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I thank the hon. Lady for outlining that she supports the Socialist Workers party position on this. The reality is that the publicity came about a few weeks ago, when the Socialist Workers party started a campaign, having placed an advert that was wrong.

--- Later in debate ---
Damian Hinds Portrait Damian Hinds
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The hon. Gentleman makes a good point. I shall leave it hanging, so that the Minister can pluck it at the appropriate moment. All I would say is that the service industry is an enormous part of the economy. We all want to see growth in manufacturing, but services are a huge part of the economy in many of our constituencies. Getting work experience in that area is absolutely valuable in its own right.

The bemused e-mails that I have been receiving from my constituents say something along these lines: “I understand that the programme is voluntary. There are some advantages to the individual in taking part, but if, after a period of time—not on the first day but after a week or so—they just cease to turn up to work for no good reasons, there are adverse consequences.” It is called a work experience programme—I do not know about you, Mr Crausby, but that sounds an awful lot like an experience of work. I pay tribute to the firms that have taken part in the programme, particularly those that have stood firm and not given in. However, I also understand the nervousness of some of the firms that have issued statements expressing concerns.

We all welcome the new media campaigns with which we are pleased to communicate on a regular basis. As politicians, we also know that they are not always all that they purport to be. I am probably unusual on the Conservative Benches in being a Guardian reader. Perhaps I was the only Member present who was a little bemused, or amused, to read the helpful clarification in The Guardian that this right to work campaign was not run by a bunch of lefties because it contained not only the Socialist Workers party, but members of UK Uncut and the Occupy protest movement. I understand the nervousness of firms with quarterly results to deliver and daily revenues to monitor. We need a debate about how some of these campaigning organisations work and about their proper role in society.

Sheila Gilmore Portrait Sheila Gilmore
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I can say from my long political experience that if views that might be deemed extremist do not strike a chord with the public, they will simply sink. If some of the criticisms of this initiative, which have been raised in this House previously, had had no resonance with the public—

Damian Hinds Portrait Damian Hinds
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I am grateful to the hon. Lady. All credit to those organisations for creating a splash over the issue. However, I am afraid that they have done it by misleading the public and saying that young people are being forced into slave labour when that is absolutely not the case. This relates to what I was saying about the Opposition—I do not include the small number of Labour Members who have come here today. When their leader had an opportunity to debunk that theory and to put the record straight, he failed to do so. It was a great shame that we did not hear such a view from Labour, the party of work.

I know that we are short of time, but I should like to broaden my contribution to include work experience at school. Whenever employers give evidence on the Education Committee, on which I sit, they predictably complain about qualifications not doing what they say on the tin and about young people not being work ready. Work readiness is sometimes called employability skills, soft skills or, when the terminological obfuscation gets extreme, transferable non-cognitive skills. Essentially, what it means is all the stuff about dealing with other people—turning up to work on time, knowing the right way to dress, empathy with the customer, smiling and pride in a job well done. All those things can be partly developed through work experience. When we ask employers if the situation is getting worse, they often say that it is. We cannot demonstrate that it is getting worse. It may be just not getting better, but we are in the business of economic growth. To achieve economic growth, we need such things to be improving year on year.

We need a debate about the role and quality of work experience in schools. It may be that the two-week block in years 10 or 11 is an important part of that, but it does not seem to be doing the full job. With the rise in the participation age, I wonder whether moving the bulk of work experience into the sixth form might be more appropriate. It may well be that there is a role for both. I also hope that we can consider other ways of augmenting and bolstering that work experience. Perhaps we can have a more formal assessment of that young person’s performance in work experience that can count towards their future job prospects.