Disability Employment Gap

Stephen Crabb Excerpts

Wednesday 8th June 2016 Commons Chamber

[The Secretary of State for Work and Pensions (Stephen Crabb)]

It is a pleasure to follow the hon. Member for Pontypridd (Owen Smith).

This House is at its best when it seeks to speak with one voice. There have been times in the past when the House has sought to speak with one voice, and no more so than in the area of disability. That is when we get the best response from organisations that represent disabled people and disabled people themselves, because they respect that. The tone that the hon. Gentleman has struck this afternoon is entirely the opposite approach. I regret the way in which he has gone about his business this afternoon and his partisan tone. I know he thinks that this style of opposition works for him, especially on Twitter, but organisations that represent disabled people and disabled people themselves will be very disappointed with the tone that he has struck.

Under this Government, our country has seen the highest levels of employment ever, with more than 2.5 million more people in work than six years ago. However, for many disabled people who want to work and who could work, the unquestionable improvement in our labour market and historic levels of employment over recent years do not ring true when it comes to their own circumstances and outlook for the future.

That is partly a legacy of the system that we inherited as a Government. It dates back to the days of one of my predecessors, John Hutton, who said that under his reforms, he wanted to see 1 million sick or disabled people get back to work. The truth is that that never happened. Instead, far too many sick and disabled people were parked on benefits without the correct support from the health service or the jobcentres. That is what happened under Labour and what has been happening over the last six years.

I made it clear in my first statement to the House following my appointment in March that I am ambitious for disabled people and for the support that they receive. I am ambitious for Britain to become the best country in the world for disabled people to live: a country that provides the right kind of support to help them lead as full and active a life as possible; a country that is a world leader in assistive technologies that transform their independence at home and their working environments; a country where employers embrace and embed disability awareness as a core component of their business; a country where disabled people have the same opportunities as anybody else to get a job and share in the prosperity of our growing economy.

[Stephen Timms (East Ham) (Lab)]

The Secretary of State chided my hon. Friend the Member for Pontypridd (Owen Smith) for the tone of his opening remarks, but does he not recognise that the organisations that represent disabled people are unanimously opposed to the scale of the cuts to support that his Government have introduced?

[Stephen Crabb]

I have huge respect for the right hon. Gentleman. The truth is that in real terms, we are increasing the support that we give to disabled people. By the end of the Parliament, we will still be spending about £50 billion to support people with long-term health conditions and disabilities.

[Neil Gray (Airdrie and Shotts) (SNP)]

I struggle to understand how the Secretary of State could suggest that support for disabled people has gone up in real terms, when if someone who is currently on employment and support allowance and who is in receipt of ESA WRAG goes into work but then falls out, they lose access to that £30 a week. How can he possibly say that when he is looking at a person-centred approach to this debate?

[Stephen Crabb]

We can get on to that later in the debate. The truth is that ESA has not worked in the way that was intended when it was set up by the previous Labour Government. When John Hutton created ESA, it was with a view to seeing 1 million people with disabilities and long-term health conditions get back into work. It has not done anything like that. The truth is that for those people who are in the work-related activity group, there are better ways to get them the support they need and to help them back into work. The incentives are not in place.

[Mr Jim Cunningham (Coventry South) (Lab)]

What percentage of the workforce in this country has disabilities, or, to put it another way, what percentage of people with disabilities are part of the workforce?

[Stephen Crabb]

There are different ways of measuring that, but around one in six people have a disability. I will come on to explain why those figures will go up and what challenges that will present to us as a society. It is a mark of the extent of our ambition as a Government that we have a commitment to halve the disability employment gap. That is exactly the right vision to have, but we are in no doubt that the challenges are both profound and complex.

The employment rate for those who are not disabled is currently 80%; for disabled people it is 47%. That is not just a gap of 33 percentage points, but a gap in the life chances of disabled people up and down the country. It is a gap that has persisted for too long. The barriers that disabled people have built up over many years will take time to break down. I am clear that, for far too long, too many have not had the right support or been given the opportunity of work. Very often they are parked on benefits, cast aside and forgotten about. That is not good enough.

[Neil Coyle]

rose—

[Stephen Crabb]

I will make a bit more progress, but I will give way later.

Emerging from this past of unfulfilled potential, there are encouraging signs that those barriers are being dismantled and that attitudes are changing. Travelling home on the Tube the other day, I saw an advert promoting a career with Shell—I can already see grimaces on Labour Members’ faces. That ad made it clear that Shell recognises that the more diverse and inclusive a team, the more varied the ideas and the better the business. Diversity drives innovation. The ad shows how a disabled person is as much a part of a business’s core vision of success as any other recruit. Recruiting disabled people should not be a bolt-on extra or a nice thing to do. As the ad says, the company is in search of “pioneers” and “remarkable people”. For me, this was more than a recruitment ad; it was a much wider advert for how society is changing and how disabled people are viewed. They are no longer patronised or diminished, but a core component of a well-performing business and of a diverse and successful society.

I see and hear that change for myself when I meet employers, charities and disabled people. I hear it from members of the Disability Charities Consortium and of the mental health expert advisory group. Just yesterday, when I was visiting the constituency of the hon. Member for Bermondsey and Old Southwark (Neil Coyle), I had the pleasure of going to a micro-brewery in Bermondsey where all the employees have learning disabilities.

[Neil Coyle]

rose—

[Stephen Crabb]

Now is probably a good moment to give way to the hon. Gentleman.

[Neil Coyle]

I thank the Secretary of State for giving way and for visiting the fantastic organisation, UBREW, in my constituency. He has spoken a lot about ambition, but does he not think that this House and disabled people were misled about the timing of the new disability support programme from next year—at the same time as the ESA cut is going to be delivered? Does he not think that it would be fairer and more reasonable if the ESA cut was delayed until his delay to deliver the new employment programme has come to an end?

[Stephen Crabb]

I do not think that the House was misled. The money has been made available from the Treasury and I have discussed it with the Chancellor. That money is there. What I have decided to do—I will explain this in more detail later—is to take a step back and work much more closely with disability organisations and disabled people. Rather than rush to push out a White Paper, I have decided to talk to those organisations that know the situation the best, and work in a new spirit to work up some proposals that we know will make a long-term difference. That decision I have taken not to rush ahead with a White Paper and to work more collaboratively on a Green Paper has been welcomed by the organisations that I have been speaking to.

[Mrs Maria Miller (Basingstoke) (Con)]

The Secretary of State talked about the importance of having the right support for people with a learning disability. Young people with a learning disability often tell me that the transition at 16 to mainstream college can be especially challenging for them, particularly if they want to go on into employment. Will he join me in supporting organisations, such as Dove House in my constituency, that want to do more to help special schools support students right through to 19, to ensure that young people have the support they need to get into employment?

--- Later in debate ---

[Stephen Crabb]

My right hon. Friend, a former Minister in the Department for Work and Pensions, makes a really important point and that is an organisation that I would love to hear more from. That period of transition is crucial. Those charities—we all have them in our constituencies, do we not, Madam Deputy Speaker?—often have more expertise than anybody else and work day by day in local communities, supporting people with disabilities. We need to hear far more from organisations like that.

The pride and passion that I saw displayed yesterday among the staff at that social enterprise, employing people with learning disabilities in that wonderful community of Bermondsey in south London, was a model of motivation for supporting people with disabilities. These positive experiences are reflected in the figures. Over the past two years alone, 365,000 more disabled people have gone into work, and that is a huge achievement. However, that progress has not translated into a narrowing of the disability employment gap, largely because of the enormous growth across the labour market in general. The gap will close only when we see a faster increase in the rate of employment growth among people with disabilities than across the economy generally. That is how we close the gap.

The shadow Secretary of State lauded the fact that, on paper at least, the disability gap was narrower under Labour, but that was because unemployment was soaring across the economy. That is not the way to close the disability employment gap. We need to harness the positive progress across the economy and ensure that people with disabilities and long-term health conditions are at the front of the queue to benefit from those changes in economy.

[Chloe Smith]

I am very pleased that my right hon. Friend has come on to this point. Does this not echo the broader point about what we need to do about life chances, which is not to focus on transfers over an imaginary line but instead focus on the real underlying factors?

[Stephen Crabb]

My hon. Friend makes an important broader point about how we think about poverty and disadvantage. I think that we have come a long way as a Government and across society in understanding poverty. It is not just about chasing after a target on paper; it is about understanding what is going on behind the scenes and drilling down into root causes.

The disability employment gap is national but the support and solutions are, I believe, often local. Many Members on both sides of the House are doing excellent work to encourage and support disabled people in moving into work in their constituencies. One example of that is the holding of reverse job fairs, which are important events to link local employers with specialist disability organisations and help to create long-term job opportunities for disabled jobseekers. Jobcentres up and down the country are also on the frontline, supporting disabled people’s move into work, and we are more than doubling the number of disability employment advisers in jobcentres to provide specialist and local expertise to help disabled people enter employment.

[James Morris (Halesowen and Rowley Regis) (Con)]

I commend the Secretary of State for his tone. One category that he has not mentioned is those who suffer from long-term mental health conditions and who are getting back into work. I commend to him recommendation 7 of the independent mental health taskforce, chaired by the chief executive of Mind, which talks about the DWP working to direct funds currently used to support people on employment and support allowance to commission evidence-based health-led interventions to help get people with long-term mental health conditions back into work.

[Stephen Crabb]

My hon. Friend makes an important point. I am clear, as is my whole ministerial team at the Department, that the challenge of mental health is enormous and profound. We must do far more to understand it and its interaction with employment. We will be spending tens of millions of pounds in the coming years on pilots to try to understand what interventions can make a positive difference for people with mental health conditions, and I can assure my hon. Friend that we are determined to see positive change in that regard.

We are expanding Access to Work, so that 25,000 more disabled people by 2021 will be helped with the additional costs they face from working. We are ensuring that disabled people are part of our plans to increase apprenticeships, with an accessible apprenticeship task force which is providing advice on how potential apprentices with learning disabilities and other hidden impairments can take these up.

[Nicola Blackwood]

The Secretary of State is generous in giving way. On Access to Work and the fact that we are increasing spending on it, that increased spending will be of little value if it remains, as Liz Sayce said, the “best kept secret” in the DWP. How can we ensure that the most vulnerable and the smallest businesses, which would benefit most from it, hear about it and can gain the full value of that scheme?

[Stephen Crabb]

The slightly glib answer that I could give is that there is a role for all of us in this House to promote Access to Work in our communities and constituencies, but there is a broader challenge for the Department and for the Ministers as to how we get that information out. My hon. Friend the Under-Secretary, who has responsibility for disabled people, is taking the lead on that and will refer to it in his closing remarks.

[Neil Coyle]

I thank the Secretary of State for giving way. Can he explain why the number of disabled people supported by Access to Work is lower now than it was in the last full year of Labour in government? When will he publish the figures for the number of young disabled people who are supported from the £10 million fund that was meant to have been dedicated to voluntary placements from 2013?

[Stephen Crabb]

I do not have the specific figures to hand, but I heard a voice in my ear from my colleague, the Under-Secretary of State for Disabled People, my hon. Friend the Member for North Swindon (Justin Tomlinson), that those figures are not correct, so perhaps in his closing remarks he can respond directly to the question from the hon. Member for Bermondsey and Old Southwark (Neil Coyle).

[Mr Robin Walker (Worcester) (Con)]

My right hon. Friend made the point about apprenticeships. I was interested to hear some comments from the Minister for Skills recently about the possibilities of adapted apprenticeship frameworks for people with particular disabilities and learning difficulties. We recently had a fantastic cross-party debate in this House about autism. Does my right hon. Friend agree that for people with autism, apprenticeships can offer a very good way forward if they are properly designed?

[Stephen Crabb]

Indeed. We have the accessible apprenticeship taskforce, which will report to my hon. Friend the Under-Secretary. That is chaired by my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), who has deep experience and expertise on these issues. I am sure autism will be one of the aspects that we consider.

We are embedding employment advisers with mental health therapies to support people with mental health conditions to receive timely and tailored employment advice. We are supporting disabled entrepreneurs through the new enterprise allowance, with over 16,000 businesses being set up by people with disabilities and long-term health conditions since 2011. Only today, I was reading about a deaf person in Gloucester who has been helped by the new enterprise allowance to set up a carpentry business. That person is no longer on benefits and has joined the many thousands of small business entrepreneurs who are so important to our economy.

These are all real, practical measures that we are taking to make a difference for disabled people, but the scale of the challenge that we face demands a broader response. The scale of the challenge is demonstrated by the forecasts and by the way our demographics are changing. More and more of us of working age will be living with some kind of health condition in the future that will need to be managed for us to stay healthy in work. Around 12 million people of working age are already living with at least one long-term condition, and that figure is forecast to rise. Mental health problems are also rising, particularly for young people. Around one in six working people have a mental health condition, and that figure rises to around one in four for jobseeker’s allowance claimants and almost half for those receiving ESA. Lifestyle factors such as smoking and obesity mean that the proportion of the working population with significant health conditions such as diabetes and heart disease is likely to increase.

[Sue Hayman (Workington) (Lab)]

Is any monitoring being done as to how many people who get into work are still in that job one year later? Sustainability is just as important as getting the job in the first place.

[Stephen Crabb]

The hon. Lady mentions an extremely important point. We are doing that, particularly for people with disabilities. More broadly, with our universal credit reforms, that is one of the things that we will be doing generally for people moving off benefits. The support does not end the day that they find a job. The support continues, to ensure that the employment is sustainable.

On top of the long-standing barriers disabled people have faced, there are serious long-term demographic changes. They require serious and long-term cross-sector solutions. No single policy or initiative from my Department or any other will serve as a silver bullet to immediately close and seal the disability employment gap. We will only make the strides we all want to see by working differently and by working in a truly collaborative way; yes, with the health service and the welfare system, but also with local authorities, employers, charities and voluntary organisations. It means we also need to listen to, and speak with, those who know what support will work best—disabled people themselves.

That is why I announced that we will publish a Green Paper later this year to do just that. I make no apology for taking the time to ensure we get such important reforms right. The reforms have the potential to transform so many lives. It is important to build consensus and to seek the views and support of the individuals and groups involved. It is also about understanding what works with groups who perhaps have not been heard from enough so far, such as smaller, local organisations who have a lot of expertise and understanding of what works on the ground, and importantly, groups such as employers to look seriously at the role they have to support and help the disabled people they employ.

[Richard Graham (Gloucester) (Con)]

The Secretary of State will know of the work done by the charity Pluss. Indeed, his colleague the Under-Secretary of State for Disabled People, my hon. Friend the Member for North Swindon (Justin Tomlinson), attended the showing of a recent video it produced about people who had returned to work. Does he agree with Pluss and me that there may be opportunities to attract more smaller employers into taking on people with disabilities if there is a tax break on national insurance, in the same way as there is a tax break on apprenticeships for smaller employers at the moment?

[Stephen Crabb]

It is exactly that kind of incentive that I hope the Green Paper process will explore. Those are exactly the kinds of ideas that we need to examine. My colleagues in the Treasury will obviously take an interest, but we have to think differently right across Government if we are to have any hope of closing the disability employment gap. I am particularly keen to know what small businesses think about what they can do to employ more people with disabilities.

[Stephen Timms]

I applaud the aspiration for consensus, which the Secretary of State has now set out a couple of times in his speech. Does he not recognise, however, that he will not achieve a consensus against a backdrop of such huge cuts in support for disabled people? The Chancellor tried that again in the most recent Budget. While the Government are cutting support so much, the Secretary of State will not find the consensus that he rightly wants to achieve.

[Stephen Crabb]

I hear the right hon. Gentleman’s point. When it was made earlier, I said that by the end of this Parliament we will still be spending more in real terms on supporting people with disabilities. My aspiration for the end of the Parliament is that we will be spending in a much more effective way to help to transform lives.

This new approach is not just about changing the way disabled people are supported to move into work, but how they are helped to stay in work. A disabled person may make the breakthrough into work only to permanently fall out of work and on to sickness benefits soon after. Tens of thousands of disabled people do so every few months. I completely agree with the Resolution Foundation’s report this week, which highlighted the need for more focus on supporting disabled people in work, as well as those moving into work. Prevention and early support will be key to that, which is why we are supporting people to stay in work and trying to prevent them from becoming ill in the first place. That is why we are investing an extra £1 billion a year for mental health care in the NHS to support 1 million more people to access high-quality timely care.

Our Green Paper has the potential to be an historic opportunity to harness and build on the positive changes we have seen for disabled people. It is only through this approach—working with employers, disabled people themselves, the NHS and the welfare system, and local authorities—that we can build a strategy that will work to make a difference to people’s lives, keeping them in work as well as helping to support many, many more into employment.