Department for Education

Stephen Timms Excerpts

Tuesday 26th February 2019 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

I want to raise one topic, which has already been touched on by my hon. Friend the Member for High Peak (Ruth George) in her excellent speech opening the debate: namely, the current five-week delay between claimants applying for universal credit and being entitled to their first payment. Like the hon. Member for Edinburgh West (Christine Jardine), I welcome the change of tone from the Secretary of State and her frank acknowledgment of the fact, long denied by her predecessors, that the roll-out of universal credit has increased demand at food banks.

The theory of the five-week delay was explained to us by the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) during the coalition period. He explained that people leaving a job will have their last monthly pay cheque in the bank, which will keep them going for a month. In addition to the normal waiting days, which have always been part of the benefits system, that results in a delay of five or six weeks.

There are some obvious problems with that justification. For example, what about those who are paid weekly? The hon. Member for Bexhill and Battle (Huw Merriman) told us that 75% of people are paid monthly—that may well be right; I think it is about right—but what about the 25% who are not? According to the latest annual survey of hours and earnings, 16.2 % are paid weekly and 2.9% are paid fortnightly. What are those people supposed to do during this five-week gap? The Government’s justification for the five-week gap clearly does not apply to them.

I have repeatedly pressed Ministers on this subject. They are not capable of providing a justification for the five-week delay for people who are not paid monthly. I do not blame them, because there is no justification. I confidently predict that we are not going to hear a justification that works for them when the Minister winds up this debate. What about people on zero-hours contracts? They cannot be confident of having had a monthly pay check when they left their last job either. Even more starkly, the five-week gap will also apply to the millions of people about to be transferred from legacy benefits to universal credit.

[Chris Stephens (Glasgow South West) (SNP)]

On zero-hours contracts, does it alarm the right hon. Gentleman that someone on universal credit who comes out of a zero-hours contract job could be sanctioned, whereas if they were on a legacy benefit, they would not be sanctioned?

[Stephen Timms]

The hon. Gentleman is absolutely right. On JSA, people could not be sanctioned for that and on universal credit they can. I agree with him that that is wrong. That was revealed in a very recent written answer.

Another written answer to a question I asked last week told us that 57% of new universal credit claimants are taking an advance. The proportion of those applying for universal credit who have a month’s savings, as the policy assumes, is less than half. Most applicants have to go into debt to the DWP and take an advance to stay afloat in the first five weeks. Having been forced into debt in that way by the Department, far too many people find it impossible to get out of it. That is why we have seen the big increase in demand for food banks.

The Secretary of State suggested that the problem was temporary, because of early glitches in the roll-out of universal credit. No doubt it is true that the extraordinary delays that were experienced at the start of the universal credit roll-out did make things even worse, but the fact that over half of applicants are forced into debt by taking an advance, because they do not have the money in the bank that the policy assumes they will have, is why so many people have to use food banks and why so many get into arrears with their rent. This problem is hard-baked into the Department’s current policy.

The Trussell Trust made the point that it found the increase in referrals to its food banks was 52% in areas where universal credit had been rolled out for 12 months or more, compared with a 13% increase for areas where it was, at most, three months since universal credit had been rolled out or it had not rolled out at all. In other words, when universal credit is well-established and has been there for at least 12 months, the increase in referrals to food banks is greater than when universal credit has just been introduced. The Trussell Trust has been pointing that out for a considerable length of time.

Another change of tone I welcome came in another written answer last week. It told us that the Department is now working with the Trussell Trust to see if it is possible to develop—I think this is how it referred to it—a “shared conclusion” about the impact of universal credit on food bank demand. I shall certainly be very interested to see that shared conclusion when it is published. The Trussell Trust briefing for this debate highlights the five-week delay as among the

“urgent problems causing significant hardship”.

It goes on to say that Trussell Trust food bank referrals due to benefit delays are increasingly driven by this initial wait. It is a huge problem that needs to be fixed.

Employment and Support Allowance: Underpayments

Stephen Timms Excerpts

Monday 25th February 2019 Commons Chamber

[Sarah Newton]

My hon. Friend makes a good point. In not only the process for claiming new benefits but this particular exercise, a lot of effort is going into ensuring that we find people and engage with them to check whether they are eligible for these additional payments. That happens through letters, telephone calls and even home visits, to ensure that we contact people in the most appropriate way possible for them.

[Stephen Timms (East Ham) (Lab)]

What is the Minister’s current estimate for how long it is going to take to complete this exercise and to correct all these very serious mistakes?

[Sarah Newton]

We anticipate completing the exercise this year.

Oral Answers to Questions

Stephen Timms Excerpts

Monday 11th February 2019 Commons Chamber

[Amber Rudd]

My hon. Friend draws attention to a real failing of the previous system. There was such a high rate of tax—sometimes up to £9 out of every £10—that there was no incentive for people to get into work. I thank him for reminding us that universal credit adjusts to such situations and ensures that work will always pay.

[Stephen Timms (East Ham) (Lab)]

The Secretary of State is, no doubt, right that delays in payment were part of the problem, but does she recognise that the fact that people are not entitled to any money for the first five weeks makes a big contribution to the problems that we are seeing?

[Amber Rudd]

I have acknowledged that people having difficulty in accessing money on time was one of the causes of the growth in food bank usage, but we have tried to address that. One of the principal ways of doing so is to ensure that every applicant can receive advance payments on the day that they apply. In fact, I visited a jobcentre just before Christmas and was told about a number of claimants who came in for the first time on the Friday before Christmas and got those advance payments.

Universal Credit

Stephen Timms Excerpts

Monday 14th January 2019 Commons Chamber

[Alok Sharma]

My right hon. Friend has highlighted a very important point. He has talked of the incredibly hard-working DWP staff in the Haywards Heath jobcentre, but the Secretary of State and I see the same hard work as we go up and down the country talking to our colleagues in jobcentres. They are all incredibly committed, and they see the benefits of universal credit in helping people and ensuring that claimants have the one-to-one support that was not in place before.

[Stephen Timms (East Ham) (Lab)]

I also welcome these modest steps in the right direction, but why did the Secretary of State and the Minister both deny a week ago the change that the Minister has now announced about the separate regulations for the 10,000 migration? Will the Minister respond to the point made by the Father of the House, the right hon. and learned Member for Rushcliffe (Mr Clarke)? The five-week delay is indefensible; it is forcing people to rely on advances, putting them into debt right at the start of their claim.

[Alok Sharma]

I know that we have had this exchange before, and I am sorry if the right hon. Gentleman feels that I repeat myself. Of course it is important that we get money in people’s pockets early. There is no question about that, and that is why we made the changes when we said we would make sure that absolutely anyone who needed it could get up to 100% of their advances up front. I have talked about the two-week run-on for those on housing benefit, which does not have to be repaid, and as the right hon. Gentleman knows in the last Budget we also announced that from July 2020 those on out-of-work DWP benefits will also get a two-week run-on.

Universal Credit: Managed Migration

Stephen Timms Excerpts

Tuesday 8th January 2019 Commons Chamber

[Alok Sharma]

I thank my right hon. and learned Friend for his support. We have always said there will be a test phase, and that is what we will have. He is absolutely right to highlight that the introduction of tax credits was not a success, whatever Opposition Members may say. It is absolutely right that we listen and learn, and that is precisely what we will do as we go through the test phase.

[Stephen Timms (East Ham) (Lab)]

Tax credits were a great success. In answering my question yesterday about the five-week wait before claimants are entitled to their benefit, the Minister pointed out that advances are available. That is true, but of course that means people are indebted to his Department right at the start of their claim. Press reports at the weekend stated that the roll-out would be paused because of worries about growing indebtedness. Are Ministers concerned about rising indebtedness among benefit claimants because of universal credit?

[Alok Sharma]

As I said yesterday, I know the right hon. Gentleman takes these issues extremely seriously, but so do we. That is why we introduced a change last year to ensure that advances of up to 100% are available on day one. Some 60% of those who come on to universal credit now take advantage of those advances. There is also the two-week run-on for housing benefit and, as he knows, we set out in the Budget further measures, which will come into place in 2020, when those moving across from out-of-work DWP legacy benefits will also get run-on.

Oral Answers to Questions

Stephen Timms Excerpts

Monday 7th January 2019 Commons Chamber

[Alok Sharma]

My hon. Friend highlights a very important point. Youth unemployment has almost halved since 2010, and we have the youth employment support programme to thank for that—the work we do through jobcentres in schools to make sure that people do not end up not in education, employment or training. Ultimately, however, this is about supporting people through the process, and that is what we are doing in universal credit.

[Stephen Timms (East Ham) (Lab)]

I hope it does turn out to be the case, as reported, that the Secretary of State is going to pause the roll-out of universal credit in order to fix it. I hope she has noticed that the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) congratulated her because he thought that that was what she had decided. Can the Minister assure the House that those who are being transferred to universal credit from other benefits will not have to wait five weeks before they are entitled to support? That is what is forcing them into debt.

[Alok Sharma]

I know the right hon. Gentleman cares very deeply about these issues, and we have had many discussions about this. It is precisely to help people with their cash flows that we have made advances available up front—up to 100%, if that is what they require—as well as two weeks of housing benefit run-on.

Disability Support

Stephen Timms Excerpts

Wednesday 19th December 2018 Commons Chamber

[Helen Goodman]

If those schemes were so good, the proportion of people with disabilities in work would have gone up, but as my hon. Friend the Member for Oldham East and Saddleworth, who opened the debate, pointed out, it has not increased one jot in the last eight years.

[Stephen Timms (East Ham) (Lab)]

My hon. Friend is right. She will recall that the gap between the employment rate for disabled people and the overall average was falling steadily until 2010, and she will know that it has flatlined ever since. Does she share my disappointment that the Government no longer have a target for reducing the disability employment gap—the target initially set by David Cameron but since abandoned, unfortunately?

[Helen Goodman]

My right hon. Friend, who had a proud record as a Minister tackling these issues in the previous Labour Government, points out the twists and turns of policy. It is patently ridiculous for Ministers, following the UN report, to be complacent in this area. There is no room for complacency.

I wish to illustrate the problem of ESA with some stories of constituents of mine. Mrs M, 63, had to stop working as a carer because of ill health. She was signed off by her GP. She has Paget’s disease and a tumour on her leg. She sees an oncologist. She needs a new hip. She is seeing a surgeon because she needs a new knee. She has heart arrhythmia on the left side and sees a cardiologist. She was refused ESA at assessment and had to apply for JSA, and she was advised to apply for jobs as a roofer and bouncer or to consider retraining as a social worker. Obviously, we supported her appeal, and ESA was awarded. It is patently ridiculous that people have to go through this sort of thing.

Mr C, 60, had previously been awarded DLA following a series of strokes. He was transferred to PIP in January 2018 and awarded a high rate for both care and mobility. He put in an ESA assessment request in September 2018, but he got confused because all his medical information had been sent to DWP for the PIP assessment, and he was then expected to pay again for the medical evidence for the ESA application. Why can the Department not sort out its administration, instead of putting these financial burdens on to our vulnerable constituents?

Mr I, 64, was previously awarded PIP and was reassessed in 2018. The award was unchanged—eight points for mobility because he cannot walk 50 metres unaided—but his ESA assessment in October 2018 failed because he could move 200 metres using a wheelchair. He is currently awaiting a mandatory reconsideration. One of the confusions is that people cannot understand how they can be awarded a high award in the PIP assessment but then be required to work under the ESA assessment. It does not stack up. One reason it does not stack up is the amateurish and unqualified nature of the staff doing the assessments. This has been a problem from the off. Ministers have had eight years to sort it out, but they have failed.

Let me tell the story of Mr J. Mr J is autistic and has various mental impairments. He had been receiving DLA, but was moved to PIP. He applied for ESA and was placed in the support group. He was unaware that his ESA was contribution-based rather than income-based. When he went to the chemist and was given the prescription form, he ticked the box because he had previously been entitled to free prescriptions, but that was no longer the case. A fine was issued, which the family had to pay. Mr J’s mother had to intervene and become the appointee to deal with the issue, as Mr J was plainly not capable of doing so himself.

Mr J is not a one-off. He is not unusual. Five years ago, 30,000 people were fined for falsely saying that they were entitled to NHS prescriptions. Last year the figure was 1 million, and it was 1 million because the Department of Health and Social Care and the Department for Work and Pensions are not properly co-ordinated. The Department for Work and Pensions does not give people the information that they need when they receive their benefits, and the Department of Health and Social Care is hounding them for money. For the Minister, on a nice ministerial salary of £98,000 a year, a £100 fine might not be a lot, but for people with incomes of £100-£150, it is a whole week’s income.

This is a complete disgrace. It is utterly careless. We have been raising the issue with Ministers for the last six months and they have still not sorted it out. Of course I am not saying that Ministers set out to fine a million people—that would be a ridiculous assertion—but it is sometimes culpable to be careless, and this Government are careless of disabled people.

--- Later in debate ---

[Ruth George]

The hon. Lady makes a very relevant point. The evidence from my constituents with mental health issues and brain injuries is that assessments are centred on physical health and physical difficulties.

I know from my 20 years working for the shop workers’ union, USDAW, that work is not easy these days, particularly for people with long-term health conditions. Employers now have sickness absence procedures, and employees often cannot have more than three periods of sickness absence, however short, in any six-month period. People with disabilities—particularly those who do not have a union representative to support them under the Equality Act 2010—are simply slipping through the net, not performing and being left out of the workplace.

Unfortunately, universal credit and the cuts to that benefit will trap people who have disabilities more without work, and particularly those who are on a higher-level benefit with premiums and then take up a short period of work. For example, one of my constituents took a job working for Royal Mail for six weeks over the Christmas period, because he felt relatively well and wanted to do it. He has just found out that when he finishes that job, he will be transferred on to universal credit and will lose his transitional protection and support. That is not a message that says to people with disabilities, “Try to work. Try to do your best.”

We see even more problems with the system where people with disabilities are being refused work capability assessments and are not seeing any money at all. One of my constituents was presented to me by a support charity six months ago. It has been trying for six months to get him some money, since he failed his ESA assessment. He had a fit note and should have been getting money. Only with my intervention did he get support. For six months, he was living off friends, family and food bank parcels.

[Stephen Timms]

I wonder whether my hon. Friend saw this comment from Professor Alston in his report:

“great misery has also been inflicted unnecessarily…on people with disabilities who are already marginalized”.

Ministers have sought to dismiss that criticism, but does that not sum up pretty well the experience of a very large number of people up and down the country?

[Ruth George]

I thank my right hon. Friend for making that important point, on which I was going to end my speech.

I want to quote a constituent with a disability who wrote to me to set out her experience. She was not asking for support—she was able to fight the system—but she said:

“The reason I’m writing to you is to encourage you to keep fighting for us in Westminster, to be the voice that is being taken away from the disabled people in this country. Fight to put an end to this barbaric, humiliating assessment system, where the person who makes life or death decisions doesn’t even get to meet you, isn’t medically qualified (specific to the individual condition) and is meeting targets to refuse claims.”

That is the view of people with disabilities. They want Parliament to be seen to be supporting them. The changes to universal credit in the Budget did not affect people with disabilities, who are some of the worst impacted by cuts to universal credit. I very much hope that the Minister and the Government are listening.

--- Later in debate ---

[The Minister for Disabled People, Health and Work (Sarah Newton)]

I should like to add my voice to those congratulating the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) on securing such an important debate. It is to the great credit of the House that, after what have been an emotional, long and tiring few weeks here, Members from every country of Great Britain are here tonight to speak up so well and so passionately for their constituents. This is probably our last full debate before the Adjournment debate tomorrow, and it is right that we have focused on such an important issue as the disabled people in our country and the amazing contribution that they make.

Of course, we should rightly focus all our efforts on what more we can do for those who are vulnerable and need our support, and I am sure that all hon. Members will want to ensure that we are doing everything we can to live up to the ideals of the United Nations conventions, which we helped to design, and to those of the Disability Discrimination Act 1995, which a Conservative Prime Minister introduced in this House. There is also cross-party support for the Equality Act 2010, which underpins so much of what we are doing. These are important issues that should unite the House, and I am pleased to have heard a lot of constructive comments this evening. I have very little time, and I will not be able to answer all the questions that have been raised, but I will write to hon. Members if I have not been able to address their concerns. I want to focus on the motion, as it is so important.

I want to reassure hon. Members that the Government do publish distributional analysis of the cumulative impact of Government decisions on household finances at every fiscal event. The last publication was in October, to accompany the autumn Budget, and assessed the tax, welfare and public spending changes announced from the 2016 autumn statement onwards that carry a direct and quantifiable impact on households. Her Majesty’s Treasury uses its intragovernmental tax and benefits microsimulation model to produce that analysis, and the underlying data comes from the Office for National Statistics annual living costs and food survey.

Her Majesty’s Treasury uses the LCF survey, because it is the primary source of data about what income people have, how they spend their money and what public services they have accessed. The survey is unique in capturing all that information. Only by assessing the impact of Government policy on each of these areas can an accurate and fully comprehensive assessment of the total impact of all Government policies on welfare, taxes and spending on public services be made. Looking at only one aspect, such as changes to income from benefits, does not provide a complete picture and is misleading. For example, the Government have committed to increasing spending on the NHS by £20 billion, which will have a positive and direct impact on the lives of millions of disabled people. To look only at benefits would be really misleading.

The LCF survey came into existence in 2007, but a household food consumption and expenditure survey has been run by Government since the 1940s. The primary purpose of these surveys has always been to collect detailed expenditure data for a sample of people, which is then used to assess changes in people’s spending patterns in order to adjust the basket of goods used to estimate inflation. The survey does not collect information from the sample of individuals that would allow us to assess whether a person is disabled—it has never been able to do that. As with all Government surveys, taking part is voluntary and a difficult balance has to be struck between the amount of information we are asking respondents to provide, and therefore the time it takes to complete the survey, and the proportion of the sample who are willing to take part. The survey sample is designed to be representative of the population, and the more people who do not respond, the more the estimates from the survey potentially suffer in quality.

Therefore, the lack of information about disability means that the information does not exist for the Treasury to estimate the cumulative impact of all Government policies on disabled people. However, the Office for National Statistics is currently undertaking developments to its household surveys to integrate various surveys and to link various sources of administrative data held by the Government, which means it might be possible to have the required information on disability status in future. The ONS is consulting users, and I have instructed my officials to raise the issue of disability status in the living costs and food survey. I encourage stakeholders, and all Members who care about this as much as I do, to contact the ONS, which is independent, and raise the issue. If we had that information, and if the ONS proceeds in the way I have just described by linking datasets, it would be possible for us to undertake the sorts of assessments that people have articulated so well this evening.

However, although a cumulative impact assessment is not possible now, the DWP does undertake a wide range of other research and analysis to assess and monitor the impact of policies on disabled people. The DWP runs its own household survey—the family resources survey—which collects information from a sample of households, with detailed information on sources of income, the amount of income families receive and detailed information on the characteristics of the people in those households.

[Stephen Timms]

rose—

[Sarah Newton]

I have said that I will not take interventions, in order to answer all the questions, but I will write to any Members I am unable to answer in the time available.

The family resources survey collects the information required to make an assessment of the disability status of people in a household. The information is then used to provide estimates of the amount of income that families with disabled people have. The DWP publishes estimates of the numbers and percentages of people within households with disabled people who have low incomes in the annual “Households below average income” publication.

In the 2016-17 survey, we saw that 16% of people in families with a disabled person were described as in absolute low-income poverty before housing costs, with a weekly income after tax of £280 or less for a couple with no children, compared with 19% in 2009-10. Absolute low-income poverty, on a before housing costs basis, has actually improved by three percentage points since 2010 for families with a disabled person.

Looking at all four measures of low-income poverty—before and after housing costs, and on a relative and on an absolute basis—poverty for people in families with a disabled person has improved since 2010 on three of the four measures, and there was no change in the fourth. I am not complacent. One person living in poverty in this country is one person too many, which is why we are determined to do everything we can to put more money in people’s pockets.[Official Report, 5 February 2019, Vol. 654, c. 2MC.]

[Stephen Timms]

Will the Minister give way?

[Sarah Newton]

Let me make these points. I have been asked to address a lot of issues, and I really want to do that.

As well as the poverty figures, the Department for Work and Pensions publishes impact assessments for every new policy that carefully consider the potential impact of those policies on people with protected characteristics, in line with its legal obligations and its strong commitment to promoting fairness. The DWP has a continual and broad programme of research and evaluation of policies affecting disabled people, which is often contracted to independent research bodies, and all the findings are published. A recent example of such work is the research into the experience of PIP claimants, which was published in September and provided valuable insight into how PIP is working to inform policy development.

We have had some appalling misuse of statistics tonight. Of all the people who have applied for PIP, 9% have gone to appeal and 4% have been overturned. I work with a great number of colleagues in this House, with the Select Committees, with the all-party parliamentary groups, with disabled people and with those who represent disabled people. When we hear recommendations on how we can improve the process, we implement them. The Work and Pensions Committee did an extremely valuable piece of work on assessments for ESA and PIP, and we are delivering on implementing those recommendations.

The hon. Member for High Peak (Ruth George), who is a member of the Work and Pensions Committee, spoke about the video recording of PIP assessments. I am determined to see that happen, because it will restore a lot of confidence in the process. We spent the summer carefully speaking to people with disabilities and to those who undertake the assessments—let us not forget that they are fully qualified healthcare professionals—about video recording. Putting all that information together, we started live testing the video recording of PIP assessments only a few weeks ago. That work will be completed in the new year, and we will be able to report back to the Select Committee and to the House on our progress and on how we will roll it out.

We are also undertaking a huge, large-scale test—it is actually the largest randomised control trial of its kind in the western world—as well as research into the employment and support package, to look at all the things that work to enable people with disabilities who want to work to get into work. It was interesting to listen to the personal experiences of the hon. Member for Eastbourne (Stephen Lloyd), and there are many disabled people who want to work but face unacceptable barriers to work, although we have made a lot of progress.

The latest data from the ONS shows that 900,000 more people are in work over the last five years, which is a steady increase in the employment rate from 43% to 51%, but we are very ambitious and want to see that gap close completely so that employers can draw on all the talents of the nation. We have set ourselves the goal of having 1 million more disabled people in work, on which we are making good progress.

Not only are we helping those people who can work into work, but we are always looking at what more we can do to improve our main health and disability-related benefits. Let us be absolutely clear that we are spending record sums on those benefits—over £50 billion this year, which is much larger than our defence budget. The figure has grown by more than £5.4 billion since 2010, and it is forecast to rise in every single year of this Parliament. All those benefits that are about the additional costs of disability were not frozen and were not part of the benefits cap, and include payments for carers, so it is simply not true to say, as Members have this evening, that we have been reducing the amount of money that we spend on the social security system.

[Stephen Timms]

Professor Alston produced a punchy report, and it made some telling points. He referred to

“the dramatic decline in the fortunes of the least well off in this country.”

He added:

“The Government has remained determinedly in a state of denial.”

From what the Minister is saying, it seems she is confirming Professor Alston’s point. There has, has there not, been a dramatic decline in the fortunes of the least well-off?

[Sarah Newton]

I was very pleased when the hon. Member for Oldham East and Saddleworth opened this debate by saying that she is an evidence-based policymaker, because I am too. I spent time serving on the Science and Technology Committee, where I was instrumental in having social science brought into its purview, and I was on the board of the Parliamentary Office of Science and Technology. It is very important to me to make sure we use statistics, data and research accurately, and I am quoting from independent, impartial information.

As I said, one person in poverty is one too many, but let us not forget that we have had to deal with the legacy we were left by the previous Government of “There is no money”. We have had to make difficult choices about public expenditure, but we made sure that we increased the amount of money for people with disabilities and we increased money for the NHS. That extra money going into the NHS is directly benefiting people with health conditions and disability.

I have little time to wind up, but I want to mention that we have talked about other barriers that people face to fulfilling their aspiration to play a full part in our society, on which I completely agree. Employment is really important. All of us will be going back to our constituencies. We will do some Christmas shopping, go to carol services and enjoy a panto—we will be doing things with our families—but so many disabled people in our country will not be able to do that. We are absolutely determined through what we do with our sector champions and on our inter-ministerial working groups to make sure that every disabled person in our society can play their full part. We are removing those barriers. We are absolutely committed to living up to all the UN standards that we have signed up to, which are certain to make positive differences and changes.

Oral Answers to Questions

Stephen Timms Excerpts

Monday 19th November 2018 Commons Chamber

[Justin Tomlinson]

I am very sorry to hear of that. If there are specific cases, please do not hesitate to highlight them. Through the roll-out of the landlord portal, which has been warmly welcomed by social housing companies and local authorities, there is an opportunity for claimants and housing bodies to work together to manage this migration process smoothly.

[Stephen Timms (East Ham) (Lab)]

The Minister knows that the five-week delay under universal credit forces people into debt right at the start of their claim, which too often leads to rent arrears and other hardships. I welcome the new Secretary of State to her post. Will the Minister encourage her to take a fresh look at this indefensible five-week delay in particular?

[Justin Tomlinson]

As we have pointed out, those transitioning from legacy benefits will get the additional two weeks of housing benefit and, with the new measures announced, two weeks of either their employment and support allowance, their jobseeker’s allowance or their income support, as well as access to advance payments from day one. The key thing is that this system mirrors the world of work. For the vast majority of people, their aim is to get into work, and in work they would expect to be paid in arrears. They would have to deal with that at the same time as going back into work, whereas now the personalised work coach can provide support by giving them access to advance benefits and pointing them to the support offered by Citizens Advice and our wider universal credit support network. It is about providing that support as people prepare themselves for the world of work.

Universal Credit

Stephen Timms Excerpts

Monday 5th November 2018 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

Everybody claiming universal credit has to wait at least five weeks before being entitled to payments, including those being moved across from previous benefits. The Secretary of State referred to the additional two weeks of previous benefits announced by the Chancellor in the Budget. How can Ministers justify stopping all benefits for a period of at least three weeks for people migrating from previous benefits on to universal credit?

[Ms McVey]

It will be a continuum. The payment cycle will be going from two weeks to four weeks, and this is actually extra money. They will be getting two weeks’ extra money because they will be getting the full period they are entitled to when it comes along after four weeks. This is not giving them less money, or even part of their money; this is two weeks’ extra benefit.

Youth Obligation

Stephen Timms Excerpts

Friday 26th October 2018 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

Over the course of the past year, I have tabled a number of parliamentary questions about the Government’s youth obligation support programme, which was introduced in April last year, and the answers to those questions have contained remarkably little information. I am delighted to see the Minister in his place, and I hope he will take this opportunity to provide the House with some more information to allow us to make at least an initial assessment of whether the programme is proving effective. At the very least, will he confirm to the House that such information will be forthcoming in the near future?

Just over two decades ago, I became the Parliamentary Private Secretary to Andrew Smith, who was the first holder of the post of Minister for Employment after the 1997 general election. We introduced the new deal for young people, which was a radical departure in state labour market intervention, and it has profoundly influenced all the programmes since.

By the way, as the youth obligation is the only current labour market programme for young people and is available only in areas where universal credit has been rolled out, there have been since April 2017—for the first time in two decades—parts of the country where there is no programme at all for young people. With universal credit being rolled out for new claims to every jobcentre by the end of the year, as I understand it, will the Minister confirm that we will again have a programme for young people in every part of the country by the end of the year?

Young people are still at a distinct disadvantage in the labour market. According to this month’s labour market statistics, the unemployment rate among 16 to 24-year-olds is 10.8%, compared with an overall rate of 4% for those aged 16 and over. The unemployment rate among young people has consistently been two and a half to three times the overall rate for quite a long time. Of course the employment rate—the overall rate and the youth rate—is much lower than the peaks we saw five or six years ago, but the introduction of the youth obligation is an acknowledgement, rightly, that youth unemployment remains too high.

More than one in 10 young people are out of work and looking for a job, when they ought to be building the skills to secure for themselves a lifetime of employment and in a position to contribute to the economy. There is also of course a disastrously large number of young people outside the system altogether—not in education, employment or training at all. The Government are therefore absolutely right to focus effort on young unemployed people.

The question is whether the current programme is any good. From the answers given by the Minister’s colleague, the Minister for Employment, the Government appear not to know whether it is any good, and indeed they appear not to have very much interest in finding out. I therefore hope that the Minister will be able to dispel that impression when he responds to this debate.

The only information provided in answers to my questions so far was in those from April and May, when I was told that, from when the youth obligation started in April 2017 to this February, 24,600 people had started on the programme and 9,300 were still on it. Is the Minister able to provide the House today, after another six months, with an update on those figures? As far as I know, there are no figures in the public domain other than those in the answer I received at that time. The obvious and important question is: what has become of the 15,300 who started on the programme and then left it? I asked a series of questions about this—for example, how many of them had gone on to an apprenticeship—and in reply to each the Minister’s colleague said that he did not know and that it would be disproportionately expensive to find out.

It is now 10 years since I was a Minister in the Department, but I cannot believe that the Department has forgotten the importance it attached at that time to evidence about effectiveness. Indeed, if the Minister is doubtful about the value of such data, he should read some of the speeches that the current Secretary of State made about the Work programme when she was the Minister responsible for employment. The Work Programme, for all its many faults, generated a great deal of valuable, published performance data. I understand that Ministers intend to publish comparable data for the Work and Health programme in due course, in some detail and with reasonable regularity, although I also understand that publication of that data has been delayed. It would be puzzling if Ministers really do not intend to gather, still less publish, evaluation data on the youth obligation.

On 26 April, I asked how many of those supported through the youth obligation had gone on to various destinations. The Minister for Employment replied on 1 May in a written answer, stating:

“It is not possible to say how many of them have subsequently gone on to (a) an apprenticeship (b) a traineeship and (c) a work placement without checking individual records, which would incur disproportionate cost.”

I asked how many young people had stopped receiving benefits since beginning the youth obligation, and an answer from 1 May stated:

“DWP does not hold this information as part of any centralised management information process. To answer this would require checking individual records at each Jobcentre, which would incur disproportionate cost.”

I tabled more questions on 6 September, and on 11 September the Minister for Employment replied, more encouragingly:

“The information requested is not currently readily available, however the Department does monitor requests we receive for new statistics and consider whether we can produce and release analysis that will helpfully inform public debate. The Department is therefore looking at this issue with a view to seeing what statistics could be produced on a regular basis.”

I hope that the Minister will provide us with an update on the Department’s thinking on the matter.

Although the Department is not able to say how the youth obligation is going, others have started to provide valuable information about the effectiveness of the programme. Their findings so far are not encouraging, and I want to quote this afternoon from two pieces of research. Centrepoint, drawing on funding from the Trust for London, commissioned the University of Warwick to evaluate the extent to which the youth obligation supports disadvantaged young people into employment, education or training. The researchers undertook longitudinal research in London and Manchester, including a survey of 80 youth obligation participants. Centrepoint has compiled interim findings, with a final report due to be published in the spring. Those interim findings concluded that only around half of those who started the youth obligation programme remained on it for the whole six-month period. That was not generally because the participants found work or entered training; instead, there were three key reasons for withdrawing from the programme.

First, 45% of London participants and 40% of Manchester participants left the programme because of continuing, pre-existing difficulties in their lives, such as homelessness, drug or alcohol problems, or mental health issues. Secondly, 45% of London participants and 57% of Manchester participants left because they ran into a specific problem, and afterwards—through fear, embarrassment or uncertainty about their continued status on the programme—did not go back. Thirdly, 10% of London participants and 3% of Manchester participants left because they did not like the programme. That included two participants with learning difficulties who found the activities they were asked to engage in impossible without support, which they said they were not offered.

Research found that the most positive aspect of the programme was the initial engagement, and nearly two thirds of participants thought that making an individual plan that identified their interests and the support they wanted was helpful. Beyond that the focus was on practical mechanisms for identifying and applying for jobs, such as how to write a CV and use websites. In the experience of those who took part, there appeared to be little acknowledgement of whether the participant was ready to find work, or of the specific barriers that many participants faced or how to mitigate them. For example, one participant with low qualifications commented:

“They just tell you how to make a CV. Then they tell you to make it a different way.

Like every day, that’s all we did”.

Most participants were happy with their work coach, but there did not seem to be much substantive personalisation. Participants rarely noted that they had been offered access to particular activities or services to meet their specific aspirations, or additional or specialised support to address their more complex needs. Despite the complex needs of quite a number of the participants, referrals outside Jobcentre Plus were rare. In interviews, participants noted that they thought their work coach did not have time to discuss issues not directly related to looking for work.

A significant group of participants held very negative views about Jobcentre Plus and expected to be treated poorly. This made them less likely to disclose issues that were hindering their ability to work, such as worsening mental health or addiction issues. It also resulted in some participants viewing reasonable advice from the Jobcentre very negatively. In both London and Manchester, the sanction rate for those on the youth obligation was higher than for the comparator group claiming benefits in a non-youth obligation area. Some 36% of London youth obligation participants were sanctioned at some point in the past year, compared with 24% in non-youth obligation areas.

The second piece of research I want to draw on has been published today by the Young Women’s Trust. It is brand new and I appreciate that the Minister and his officials may well not yet have had a chance to consider it. However, it, too, is a useful and informative piece of work. The research surveyed over 700 young Jobcentre Plus users in the UK over three years. It conducted interviews with staff in 13 jobcentres across three London boroughs and conducted focus group interviews with 28 young people aged between 18 to 25 who were living across 10 different London boroughs. It concluded that the youth obligation is misunderstood by Jobcentre Plus staff and is patchy in its implementation. Young people’s employment outcomes are not recorded and there is little plan for support beyond six months. Only a third of young women and two fifths of men surveyed felt they were getting personalised support from their work coach. Some 21% of black, Asian and minority ethnic jobseekers said they were treated unfairly by Jobcentre Plus staff, compared with 15% of white jobseekers.

One youth obligation manager described their package for young people as intense specialist support for six months, which I think is what Ministers intended. Another manager, however, explained that over the course of six months they

“have two workshops where young people can learn how to write a good CV and meet providers”.

That appeared to be it. Managers in all the boroughs studied acknowledged that they do not monitor referrals and that there is no effective monitoring system in place, as the Minister’s difficulty in answering my parliamentary questions also illustrates. The policy, as I understand it, is that after six months on the programme, if young people do not have a job they should go on to a mandated apprenticeship or voluntary work experience. That is not happening in practice, according to the published research. In a small survey of voluntary sector service providers who work in youth employability and training, 79% were completely unaware of the youth obligation scheme, including a fair number of those who work with their local Jobcentre Plus on a weekly or monthly basis.

The report presents the positive conclusion that there has been a 17% increase in the number of users saying that the jobcentre helped to motivate them in their job search since 2016. However, it also reports that of the young women using Jobcentre Plus over the last three years, 52% have ranked their experiences as humiliating and 65% as stressful and that 63% have felt ashamed to go to the jobcentre.

It is clear from both pieces of research that the programme is not going well. I understand that one of the problems for the Department is that the universal credit IT system does not provide the basic information that would allow an assessment of how the programme is doing—information that was routinely provided under the older systems. I recognise that providing evaluation data may well not be the top priority among the current difficulties with the universal credit IT system, which I have been following closely for the last eight years, but I am sure the Minister will agree that it needs to be fixed.

I am encouraged that the Minister’s colleague told me in his written answer last month that the Department is considering what statistics could be produced on a regular basis, and so I want to finish by suggesting what some of the statistics ought to be. I would hope they could be produced at least on a half-yearly or perhaps on a quarterly basis—statistics on the Work programme were published quarterly.

We need to know how many people have gone on to the youth obligation in the latest period and how many have left it, and how many were on the programme at the beginning of the period and at the end. It would also be helpful to know something about the age, geographic spread and gender of participants. For those who have left the programme, the crucial information we need is where they have gone: how many have gone on to an apprenticeship, in line with the policy intent; how many have gone on to a traineeship or work placement; how many have gone into education or training; how many have got a job; and how many have stopped claiming benefit but not started work or training. Finally, what is the sanction rate for those on the programme?

I welcome the fact that, as I understand it, by the end of this year we will again have a nationwide labour market support programme for unemployed young people, but we need to know how effective it is. At risk of teaching my grandmother to suck eggs, I make the obvious point that that requires at least basic data to be recorded, collected centrally and published. At the moment, none of that is being done for this programme. I hope the Minister can provide some reassurance that it will soon start being done, for the Department’s benefit and the benefit of us all.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

I congratulate the right hon. Member for East Ham (Stephen Timms) on securing this debate. I have been asked to respond because the Minister for Employment sadly cannot be here.

Everyone on the Government Benches acknowledges that the right hon. Gentleman should be on the Opposition Front Bench, given his massive experience at the Department for Work and Pensions, and I welcome this opportunity both to debate this matter and to discuss in the more detail the subject of youth employment, which I think motivates every single Member of Parliament. We all want to improve the life chances of those whom we represent.

Nationally, the employment rate for 18 to 24-year-olds not in full-time education is 77%, which is up eight percentage points from 69% in 2010, and only 4.3% of young people aged 16 to 24 are unemployed or not in full-time education, which is a fall of 350,000 since 2010. Moreover, the national unemployment rate for this age group is 10.8%, as the right hon. Gentleman set out, which is a record low. It is worth commenting briefly that the decrease in youth unemployment is markedly better than that in the EU. When one compares our record low youth unemployment rate with that in Spain, at 34%, Italy, at 32%, France, at 21%, and Greece, at 39%, one realises that there has genuinely been a transformation, and one that I believe is among the driving successes of this Government. We all accept, I believe—I think the right hon. Gentleman accepts this—that the single biggest driver of social mobility and improvement of life chances is work, and the reality is that the universal credit programme and the Government reforms since 2010 are helping to create an employment revolution in this country, which is a massive improvement on the old system.

The statistics reflect a real achievement, but while this is worth celebrating we must not be complacent. That is why the Government have introduced a wide range of support for younger people. The principle of support for young people is well known to the right hon. Gentleman; it has dated back through many different Governments and generations and has been developed by the DWP in collaboration with a variety of organisations. We recognise that providing early targeted help at the start of a young person’s adult life helps them secure work and avoid unemployment. It is in that context that we introduced the youth obligation support programme.

The programme is for people aged 18 to 21 who make a new claim in a UC full service jobcentre. It is worth understanding how this programme came into being, and I will briefly outline that. We believe it takes the best types of support that previous individual evaluations have shown to work and puts them together in a single programme. The support starts with the intensive activity period. In 2016, the Department published an evaluation of this approach by the Institute for Employment Studies. It reported that it had an immediate positive behavioural effect on participants. It increased their confidence, and meant they engaged in a wider range of job search activities and made job applications to a higher standard. Earlier this year, the Work and Pensions Committee recognised in its youth employment report of 2018 that the Department had conducted a good quality trial of intensive activity. It said that the intensive activity element of the youth obligation should help young people overcome key barriers to work. We believe it encourages young people to think more broadly about their skills and job goals and identify any training they may need.

An example that applies to both the programme under discussion and the traditional model for younger people are sector-based work academies, which last for up to six weeks and include work experience, some bespoke training and a guaranteed interview for a real apprenticeship or other job. The Department published a quantitative impact assessment in 2016 that showed that young people who took part in this type of support spent on average considerably more days in employment and considerably fewer days on benefit than those who did not take part, and I know it had some success in the right hon. Gentleman’s constituency of East Ham, particularly utilising the work of his local colleges.

[Stephen Timms]

I am grateful for the way the hon. Gentleman is answering my questions. Does he have any information about how many participants on the youth obligation programme had the opportunity of the sector-based work academy to which he refers?

[Guy Opperman]

I am going to come to the specific points the right hon. Gentleman raises on numbers and data, but let me make a quick point before returning to my speech. We are in utter agreement that data and statistics are needed on a long-term basis—no one is disputing that—and he will know from his knowledge of the DWP that it likes to focus on long-term figures. However, I am not in a position to give individual numbers in answer to that specific question.

However, the right hon. Gentleman surely accepts that sector-based work academies, which occur in many different types of profession but in particular teaching, retail, hospitality, transport and logistics, social care, manufacturing and engineering, are one of the most successful innovations that apply to all young people whether on the YOSP or the traditional support provided by jobcentres.

In addition, there are traineeships. Like the right hon. Gentleman, I have visited a multitude of jobcentres. In the last year, I have been from Hastings and Chichester in the south to Banff in northern Scotland, from Basildon to Blackpool last Friday, to Birmingham and Lambeth in London, and in the last four years I have hosted a jobs fair in Hexham and worked with my jobcentre, and I have seen the impact of traineeships, which are another part of the YOSP that are utterly key. I must mention Release Potential in my constituency, which provides these traineeships for younger people on an ongoing basis up and down the country, and I have seen their success.

The right hon. Gentleman will realise that this programme began only in April 2017 and that it is still being rolled out around the country. More than 500 jobcentres are now offering this support, but some started only this week. I accept that others started in April 2017, but I believe that the programme still has to be rolled out to 22 jobcentres before completion takes place at the end of this year. In his own area, jobcentres have strong links to Barking and Dagenham College, and there is also specialist guidance on training, apprenticeships, the Prince’s Trust, the movement to work programme, the construction skills programme and English language classes.

I want to address a couple of points that the right hon. Gentleman raised. I take on board his suggestions, which have been noted, on statistical evaluations and pathways. He will understand that the Department takes these matters very seriously, and I will ensure that they are taken back to the Minister for Employment. As I have said, the programme is still being rolled out, and the automated management information process is still being developed as we speak. He raised the matter of young people in particular, and there is one point on which I want to push back. He said that the was no other programme for young people, but he will surely know that the Department is committed to providing targeted support for all young people, including those who are still claiming jobseeker’s allowance or claiming through the universal credit live service. The traditional JSA includes basic skills training, traineeships and support funded through organisations such as the Prince’s Trust. There are also opportunities involving sector-based work academy placements for those individuals. It would therefore be wrong to suggest that there is no other programme over and above the youth obligation support programme.

I repeat that we collect information on each individual claimant, but there is not at this stage an aggregated assessment of the kind that the Department traditionally produces. However, the right hon. Gentleman will under- stand that this programme started only in April 2017, that it has not finished being rolled out and that in some jobcentres it started only in the last week. With respect, therefore, I would say to him that we believe the programme is becoming more mature every day, that we are continuing to test and learn and that we are holding workshops with work coaches to get their insight into what works well and into the local barriers that 18 to 21-year-olds can face in the labour market. We are also collating and sharing good practice, and we will obviously take on board the reports that he has outlined today, including the one that came out just this morning. We are genuinely committed to ensuring that any 18 to 21-year-old, whether they are from East Ham or Hexham, Carlisle or Cardiff, has the ability to work towards securing an income, to develop their skills and to improve their life chances. After all, that is what this is all about.

Question put and agreed to.