Oral Answers to Questions

Thérèse Coffey Excerpts

Monday 29th June 2020 Commons Chamber

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

What steps she has taken to meet the increased demand on her Department’s services resulting from the covid-19 outbreak.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

I want to praise our excellent jobcentre staff and all Department for Work and Pensions staff and contractors for their tireless work through this emergency in supporting an unprecedented level of new claimants as well as existing claimants. To assist this effort, we redeployed thousands of staff and streamlined our processes where possible. Looking forward, we are now working with local managers to start fully reopening jobcentres in July to help get Britain back into work. Over 17,00 people are now working remotely, and we have already recruited new people into DWP to help with the increased demand.

[Stuart Anderson]

Unemployment in Wolverhampton is above the country average, and covid-19 will have an impact on these figures. Does my right hon. Friend agree that the local jobcentre staff, who have been working tirelessly through this pandemic, will play an integral part in making sure our great city is not left behind?

[Dr Coffey]

My hon. Friend is right to pay tribute to staff at his local jobcentre. Without the success of the furlough scheme introduced by my right hon. Friend the Chancellor, this could have been far worse. We are working hard across Government to help people in these challenging times to get back into work as soon as possible and to support an economic recovery that levels up all parts of the country, including Wolverhampton. I am sure he can refer people to the two new websites, job help and employer help, to signpost people to live vacancies and online support.

[Daniel Kawczynski]

I would like the Secretary of State to pass on our thanks to her team for the tremendous work that her officials have been doing at this very difficult time, but does she agree that the digital nature of universal credit has enabled it to respond effectively in recent months?

[Dr Coffey]

My hon. Friend is spot on. The Department has acted at incredible pace to bring in measures as quickly as possible to help those most financially disadvantaged as a result of c-19. Through the digital universal credit system, we have enabled those changes while meeting that unprecedented demand. The legacy system, which was heavily paper-based, would simply have been unable to cope.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I also pay tribute to all the frontline staff at the DWP for the way they have processed so many claims for support since the beginning of the crisis. It is important to recognise, however, that the universal credit they have been processing so far in this crisis is a significantly different product from usual. In particular, all sanctions and conditionality have been temporarily suspended. That suspension is due to end tomorrow. At a time when unemployment has risen sharply, the number of vacancies has dropped, people are shielding and schools have not yet gone back, threatening people with reducing their financial support if they do not look for jobs is surely untenable, so will the Secretary of State announce an immediate extension?

[Dr Coffey]

It is important that as the jobcentres fully reopen this week we reinstate the need for a claimant commitment. It is an essential part of the contract to help people start to reconsider what vacancies there are, but I know that I can trust the work coaches and jobcentre managers, who are empowered to act proactively with people. There will be some people right now who have not had to look for a job for the last 20 to 30 years, and they will need careful support, tailored to make sure they can start to look for the jobs that are available and which I hope will soon become available.

[Jeff Smith (Manchester, Withington) (Lab)]

What recent estimate her Department has made of the number of universal credit applicants awaiting a decision on applications made since the start of the covid-19 outbreak.

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[Huw Merriman (Bexhill and Battle) (Con)]

What steps she plans to take with Cabinet colleagues to support employment after the covid-19 outbreak.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

I am already actively working with a number of my Cabinet colleagues, particularly the Chancellor and the Secretaries of State for Education, for Business, Energy and Industrial Strategy, for Digital, Culture, Media and Sport, for Transport, and for Housing, Communities and Local Government—and of course the Prime Minister. This is a joined-up Government that is working hard to help people, in these challenging times, to get back into work as soon as possible.

[Huw Merriman]

Many of us are concerned about jobs in the aviation sector, particularly British Airways, which is not only making up to 12,500 redundancies but firing and rehiring virtually the remainder of the workforce, despite its group putting €1 billion into a new airline and BA staff putting 66% of profits into that group. What can the Government do to ensure that our employers do the right thing by the workforce who have previously delivered those profits?

[Dr Coffey]

As my right hon. Friend the Prime Minister has previously said to my hon. Friend, we are concerned about the way that some companies are treating their workforce and we are actively looking into the issue. The furlough scheme has been a huge success in keeping over 9 million employees connected to their jobs, but companies should not be using it cynically to keep people on their books just to then get rid of them. The whole point of the furlough scheme is to help people to get back into their jobs and the country back on its feet.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op) [V]]

New analysis suggests that up to 1 million people could be added to the current jobless total unless more support is provided from August, with sectors like aviation being harder hit. We have learned from covid to plan early and to work together. However, last week’s DWP Committee report said that the Secretary of State has not provided any persuasive reason for her refusal to share her economic downturn plans. Why is a plan that is the basis of how we get millions of people back into work such a secret? Will she now work with her colleagues for a back-to-work budget so that local partnerships can plan together for what is coming?

[Dr Coffey]

I think the hon. Lady is confusing the element in the Select Committee report with the emergency contingency plan, which is an operational document that is prepared by all Departments in the event of the sort of emergency that requires, for example, redeployment within the Department. In terms of her broader question on what I think she was really referring to, I assure her that, as I pointed out, I am actively working with Ministers across the Government to make sure that we will be there to help people get into the new jobs that we rely on the private sector to create, but will be working across the public sector too.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

What estimate she has made of the average time taken to process work capability assessments during the covid-19 outbreak.

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[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I congratulate my hon. Friend the Member for Stretford and Urmston (Kate Green) on her promotion to the shadow Cabinet.

The Government say that the aim of the benefit cap is to make people work more hours or move to cheaper accommodation. Neither of those options has been possible during the covid crisis, so what possible justification have the Government got for persisting with that policy, which prevents families from receiving what the Department for Work and Pensions itself believes to be necessary?

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

The benefit cap does play an important part, but the hon. Gentleman may not aware of the exemptions to it. New and existing claimants can benefit from a nine-month grace period when their benefit will not be capped if they have a sustained work history. Since 2013, nearly 220,000 households which were subject to the benefit cap are now no longer capped.

[Neil O’Brien (Harborough) (Con)]

What recent assessment she has made of the adequacy of benefits for people with severe disabilities.

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

What discussions she has had with Cabinet colleagues on the potential merits of providing extended income support for people in seasonal industries.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

I have regular conversations with my right hon. Friend the Chancellor, who is responsible for the coronavirus job retention scheme and the self-employment income support scheme, which have supported 9.2 million and 2.6 million people respectively—nearly 12 million people in total. He has set out how the schemes will be phased out during the autumn. The furlough scheme continues until the end of October.

[Mr Carmichael]

The position for people in the visitor economy in my constituency is particularly acute because of the highly seasonal nature of the trade. It has been described to me as being like three winters in a row. Does the Secretary of State accept, and will she prosecute the case within Government, that if some industries in some areas are to have a viable future, there will need to be special consideration?

[Dr Coffey]

I too have a coastal constituency with a significant tourism economy. As my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport said, we are looking to get the tourist sector up and running as strong as possible, and extending it for as long as we can. That is a key part of the campaign. When it is back, we will invest heavily and ensure that we have a major campaign to encourage British people to take British staycations.

[Darren Henry (Broxtowe) (Con)]

What steps her Department is taking to support pensioners affected by the covid-19 outbreak.

[Mr Speaker]

Would somebody step in, please, and answer the question?

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

To echo my hon. Friend, the Government are committed to ensuring that older people are able to live with the dignity and respect that they deserve. The state pension is a foundation of state support. In April, full amounts of the basic and new state pensions increased by 3.9% to £134.25 and £175.20 per week respectively. We continue to work with the Post Office to ensure that vulnerable customers have access to cash when shielding.

[Darren Henry]

People in Broxtowe affected by the closure of Equitable Life are increasingly worried as they approach retirement age. Can my right hon. Friend tell me what measures the Government will take to ensure that soon-to-be pensioners get the compensation they deserve and are supported in their old age?

[Dr Coffey]

My hon. Friend raises a long-standing issue. I am aware that during the 2010 Administration, extra money was put in after the original proposal in order to support those on Equitable Life, but this is a matter for my right hon Friend the Chancellor and I would encourage my hon. Friend to follow up with him directly.

[Joy Morrissey (Beaconsfield) (Con)]

If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

As I outlined to the House earlier, I am really pleased with the massive efforts that have been undertaken by members of the Department for Work and Pensions in responding to public needs during this important emergency. We are starting to return to normal and I look forward to jobcentres fully reopening so that they can help people to get ready again for the world of work.

[Joy Morrissey]

Does my right hon. Friend agree on the importance of jobcentres and businesses working closely together to support employment and economic recovery, and will she join me in praising Pinewood studios in my constituency, which is a shining example of such practices?

[Dr Coffey]

As I outlined earlier, we want to ensure that we have that ongoing local support between jobcentres and businesses. I know that in Beaconsfield the local jobcentre staff are working with the local enterprise partnership to explore how they can collaboratively support people back into work. I am sure that the company to which my hon. Friend refers will also be looking at the Employer Help website, which provides a range of guidance and advice, including on identifying transferable skills, promoting opportunities to work in different sectors of the economy, and supporting staff.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Last week, the Pensions Regulator introduced an interim regime to cover so-called superfunds, which are funds that aim to bring together several corporate pension schemes to be run collectively. This is a sensitive area, because breaking the link between an employer and their pension scheme means that the employer cannot in future be called upon to fill any deficits. Given that sensitivity, will the Secretary of State explain, first, why the Government have not legislated for this area in the current Pension Schemes Bill; secondly, why the regulatory requirements for these superfunds are so much lower than they are for a buy-out from an insurance company; and, thirdly, whether the Governor of the Bank of England is right to say that this lack of action by the Government is a potential risk to the UK’s financial stability?

[Dr Coffey]

The independent Pensions Regulator published guidance on an interim regime for pensions superfunds. I want to stress that this is an interim regime, and that the Government will continue to develop the permanent regime before legislating with full and proper parliamentary scrutiny in the usual way. Market participants are well aware that they should not assume that the interim regime will automatically transfer into the permanent regime.

[Dr James Davies (Vale of Clwyd) (Con)]

Not-for-profit organisations such as RCS Wales in Rhyl have provided critical employment support throughout the outbreak. Will my right hon. Friend do what she can to support such organisations and ensure that people with mental health difficulties are not left behind as they look for sustainable employment?

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[Jeff Smith (Manchester, Withington) (Lab)]

Will the Secretary of State clarify whether the Government intend to keep their manifesto commitment to maintaining the pensions triple lock?

[Dr Coffey]

The Government are absolutely committed to fulfilling their manifesto commitments. It is fair to say that we have some situations ahead of us, but it is something I am in discussions about. This is not about abandoning the triple lock in any way, but I assure the hon. Gentleman that there are some consequences—of which he may not be aware—if average earnings fall during this year. We may need to rectify things to make sure that aspects of the law that are already in place cannot be set aside.

[Scott Benton (Blackpool South) (Con)]

Universal credit has supported millions of new claimants since March, many of whom will now be looking for new job opportunities as the economy reopens. Does my hon. Friend agree that one of the inherent strengths of universal credit is its flexibility in incentivising and rewarding employment?