Better Jobs and a Fair Deal at Work

Toby Perkins Excerpts

Wednesday 12th May 2021 Commons Chamber

[Rishi Sunak]

With the greatest respect, I am only one minute into my speech, so perhaps the hon. Gentleman will forgive me for not mentioning everything in the first 30 seconds. I completely agree with him. As I have said repeatedly from this Dispatch Box, not only are jobs my highest economic priority, but I have, from the very beginning, highlighted the particular impact that this crisis has had on young people because many of them work in the sectors that are most affected, particularly in the hospitality industry, which is why the Government have taken steps to support that industry. As I will come on to say later, the kickstart scheme is a key part of our way to help those young people find work. It is one of many things we are doing, whether it is traineeships, apprenticeships or the Prime Minister’s lifetime skills guarantee, and we will continue to focus on that.

[Mr Toby Perkins (Chesterfield) (Lab)]

Will the Chancellor of the Exchequer give way?

[Rishi Sunak]

I will make a tiny bit more progress.

Taken together, over the last year and this, our plan for jobs is providing over £407 billion of support for British people and businesses—a historic package of economic support unmatched in peacetime—and the evidence shows our plan is working. GDP statistics published only this morning show that the economic impact of the lockdown at the start of the year was less severe than had been expected and that there are clear signs that we are now on our way to recovery. The Bank of England said last week that it now expects the economy to return to its pre-crisis level by the end of this year—earlier than it previously thought.

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[Rishi Sunak]

The Government believe in devolution and have worked successfully with Mayors across the country. I have a very productive relationship with Mayors. I commend all Mayors who have recently been re-elected, particularly Andy Street in the west midlands and Ben Houchen in the Tees Valley. I believe that all leaders want to drive jobs and growth in their areas. I look forward to working with anybody who shares that goal, and I look forward to working with that new Mayor.

When it comes to supporting work, what also matters is that we reaffirm our commitment to ending low pay by increasing the national living wage to £8.91, an annual pay rise for someone working full time of almost £350. We are providing targeted support to young people, who, as has rightly been identified, have been hardest hit in the pandemic. The £2 billion kickstart scheme will create hundreds of thousands of jobs for 16 to 24-year-olds who would otherwise be at risk of long-term unemployment.

[Mr Perkins]

The kickstart scheme is not reaching nearly as many people as the right hon. Gentleman suggests. Labour has proposed an apprenticeship wage subsidy funded by the underspend in the apprenticeship levy, which would ensure that companies that took on young people would be putting a lot more into them than under the kickstart scheme. Rather than continually pushing the kickstart scheme, which is much more expensive than the apprenticeship wage subsidy, why will he not adopt the apprenticeship wage subsidy that Labour has proposed?

[Rishi Sunak]

The kickstart scheme has now created almost 200,000 job placements for young people in record time, given that the scheme was only announced in July last year and operational in autumn. Its ramp-up compares very favourably with the future jobs fund, which preceded it, and with which the hon. Member will be familiar. Now that the economy is reopening, many more young people can start those placements over the coming months. I commend all people both at the Department for Work and Pensions and at the thousands of companies involved for their participation in a scheme that will transform the opportunities of young people up and down the country.

With regard to apprenticeships, we already have an incentive for employers to take on apprentices. In the crisis, the Government introduced a £3,000 hiring subsidy for small and medium-sized businesses to take on a new apprentice—a significant 35% subsidy, I think, of an apprentice at the apprenticeship median wage. It also pays for 95% of all training costs for apprentices employed by SMEs, as well as improving the quality of those apprenticeships. I agree with the hon. Gentleman that apprenticeships are important, but we took action in July last year.

To help people of all ages to get back into work, we have doubled the number of work coaches in jobcentres and provided over £3.5 billion to help people to search for work or retrain, and we are launching the restart programme, with £2.9 billion to provide intensive support to over 1 million people who are long-term unemployed. This Queen’s Speech goes even further to turbocharge our economic recovery and get people into decent, well-paid jobs. The plan set out in the Queen’s Speech creates more jobs, and jobs where people live. The levelling up White Paper will set out bold new interventions to improve livelihoods and opportunities. We are strengthening the Union with record investment in new infrastructure, such as road, railways and broadband. We are turning Britain into a science superpower, with our plan for growth making this country the best place in the world for inventors, innovators and engineers.

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[Rachel Reeves]

Two billion pounds-worth of contracts to friends and donors of the Conservative party—I will leave it at that, and let the record speak for itself.

Let us be clear about this Conservative Government’s record. They talk in this Queen’s Speech about a skills guarantee, but it was a Conservative Government who cut the education maintenance allowance; my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson), the shadow Chief Secretary to the Treasury, was a beneficiary of that and has spoken powerfully about the difference it made to her. And this Government have overseen a fall in the number of apprentices, leaving millions of people without the skills they need to thrive. They speak in this Queen’s Speech about investing in all parts of our country, but it was this Conservative Government who scrapped the regional development agencies—the very bodies designed to ensure that every part of our country could prosper.

The Government talk in this Queen’s Speech about levelling up, but it is this Conservative Government who have cut 60p from every £1 of funding to local councils, forcing them to close Sure Start and children’s centres, and to cut back on social care, libraries and leisure centres, degrading the very fabric of our local communities. The Government want the public to think that they have been in power for only a year. They have not; they have been in power for 11 years, and they need to take responsibility for their own record.

Throughout this crisis, the Chancellor has pitched our health against our economy, treating it as if it were a zero-sum game, with health on the losing side. To do so was short-sighted, misguided and dangerous, and he must take responsibility for that. In a pandemic of this kind, public health and the economy are two sides of the same coin. The Government’s failure to act speedily, pushing ahead with “eat out to help out” without sorting out test and trace, and the refusal to back an October circuit break or to level with the public about the risks of mixing at Christmas, have caused huge loss and huge suffering, as well as the largest economic decline in the G7.

[Mr Perkins]

My hon. Friend is absolutely right that the Government seem to be railing against the incompetence of their own government, and policies that they have been voting for in the last 10 years. I would add to her list that the lifetime skills guarantee that they are now trumpeting is merely the reintroduction on a smaller scale of what existed under a Labour Government. This Government voted for these things for 10 years, and now say that they are the answer to the problems that they have created.

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[Jeremy Wright (Kenilworth and Southam) (Con)]

It is a pleasure to follow the hon. Member for Edinburgh West (Christine Jardine), and unlike her, I find much to welcome in this Gracious Speech.

It will not surprise the House at all if I pick out the draft Online Safety Bill—a Bill that has had a long journey so far, some of which I have walked myself, and has further to go. Of course, I warmly welcome its publication, and although it is true that the fact that it is a draft Bill means that much of its impact will be delayed, I do appreciate the Government’s determination to get it right, especially if, as I believe to be the case, they are open to refining and improving the Bill as it makes its way through pre-legislative scrutiny. The detail of course needs to be scrutinised, but we can already say what this Bill is not. It is not a full-frontal assault on freedom of speech, as some would claim. It is a way to address the fact that restrictions on bad behaviour and protections for the vulnerable that exist in other environments do not exist at all online, and that is more and more unacceptable, the more of our lives we spend online. Also, the truth is that freedom of speech is not, and has never been, unlimited offline. We cannot say anything we want in print, in broadcast media or on the street. The criminal law confines us, and so do other standards, of decency or protection of children for example. The same should be true online.

We must of course ensure that we define carefully a duty of care on online platforms to keep their users as safe as they reasonably can, but these are highly capable companies, and systems or business models that permit or even promote harm can and must be changed. Although we should recognise and commend the progress that platforms are already making, we know, and they know, that self-regulation is no longer sufficient. We need an independent regulator with the capacity and the tools to do the job. That is what the Online Safety Bill can achieve, and we have an opportunity to lead the world in doing it.

Of course, in other areas of policy we already lead the world. I was pleased to hear in the Gracious Speech an ongoing commitment to overseas aid, but I noted, too, the absence of any proposed legislation to change the International Development (Official Development Assistance Target) Act 2015. I hope that means that any reduction in the percentage of our national wealth spent on aid is an aberration and a temporary failure to meet the current target in the exceptional circumstances envisaged by, and set out in, the 2015 Act, rather than a policy change. Urgent clarification of that, and of the circumstances in which we will return to 0.7%, would help those of us who could not support a deliberate, strategic and long-term reduction in aid and help to reassure the rest of the world that we will remain a global leader on this subject.

Finally, I come to social care. The problem is evident, but there is a reason why we have not for decades had a functioning social care policy solution. It is because any such solution will be very complicated, and elements of it are likely to be very unpopular. However, this is a collective failure of policy across the political spectrum, and resolving it must be a shared responsibility, because the implementation of any serious social care reform will outlast any single Government. It is also likely to require more of the taxpayer and more of individuals to save for their own care when they can afford to do so.

[Mr Perkins]

I agree entirely with what the right hon. and learned Member is saying about the complexity of the care issue and the need to work together on it. However, the Prime Minister stood on the steps of Downing Street and told us that he had a plan that he would bring before us if he was elected. If we are to start a debate, surely the starting point ought to be that plan. Why do we not all see the plan, if indeed it exists, and then we can discuss the bits we all agree on?

[Jeremy Wright]

I am tempted to agree entirely with the hon. Gentleman. He is right that all of us, including the Government, have to be braver than we have been and more willing to recognise the urgency of the situation. He is right that this reform cannot wait.

The truth is that our emergence from the covid-19 crisis demonstrates both the need for social care reform and also the political opportunity for it. Let us take the lesson from the election results we have just had. I think we can conclude from those that the different parties in office across the UK have all been rewarded by the electorate for addressing the crisis before them, even when doing so required difficult and unpopular measures. The challenge facing social care is also a crisis, just one unfolding at a slower speed. It is time, surely, to ask the electorate the support the right response to that crisis, too. Finally, I remind my colleagues on the Front Bench that they have considerable political authority to do this. This is a Government who have, as the hon. Gentleman has reminded us, promised to fix social care and who have a substantial parliamentary majority, there to be used, surely, to keep our promises. So let us get on with it.

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[Mr Toby Perkins (Chesterfield) (Lab)]

It is very interesting to follow the hon. Member for Clacton (Giles Watling), who appears to have made it all the way from Clacton to Portcullis House but not quite managed to get over the final 200 yards, which is quite an interesting metaphor for the Government’s Queen’s Speech. It promises so much, as the Government have over the last 11 years, yet, as is so often the case, there is less to it than originally meets the eye.

This is an entirely incoherent Government, and, most importantly, it is a Government who do not do what they say and who do not mean what they say. We had the stunning statistic from the hon. Member for Thirsk and Malton (Kevin Hollinrake)—I thought this was very interesting—that the gap between London and the south and the north of England is bigger than the gap between West Germany and East Germany before unification. What a stunning demonstration of the failure of the northern powerhouse, which we were all told to celebrate seven or eight years ago.

[Kevin Hollinrake]

The point is that we need to put political differences aside on this issue. Decades of underinvestment have brought us here. The hon. Gentleman is trying to make a cheap political point, but that is not at all what I was saying.

[Mr Perkins]

I am making a political point because we have had a Conservative Government for 11 years and I see videos on television showing people who have decided to vote Conservative because they are fed up about the health service or about ports closing, not realising that it is the policies of a Conservative Government, which Government Members have been voting for all these years, that have caused these problems.

When we look at what is in front of us, we see, for example, the lifetime skills guarantee. The lifetime skills guarantee existed under a Labour Government. In 2013, this Government got rid of it and now they want us to celebrate their bringing back, in a less ambitious form, exactly what existed previously under Labour. We have the apprenticeships levy. Since the introduction of the apprenticeships levy, apprenticeship numbers have fallen. We have a Prime Minister who, two years ago, stood on the steps of Downing Street and said, “On social care, trust me—I’ve got a plan.” The reality is that he is now coming back and saying, “Well, let’s have a chat about it because I’d like to work together on it.” The reality is that this Government have said one thing and done another.

The Government are talking about a revolution in skills. We have had 11 years of funding cuts. We have had cuts to adult education of over 50%. They are absolutely monumental, and now the Government have the audacity to stand there and suggest that they are the way that we solve the skills crisis. Hon. Members have spoken in this debate about the productivity gap between Britain and some of our European competitors. When we have had the cuts that we have seen to work-based learning and adult education—not just to funding, but to the numbers—and the impact that the introduction of the trebling of tuition fees has had on work-based learning and on people bettering themselves, is it any wonder that we have this productivity failure in front of us?

The Queen’s Speech talks about infrastructure. HS2 is an important infrastructure project, which was envisaged under the Labour Government. Never before has there been a Government spending as much money as they are on HS2 yet simultaneously looking so unenthusiastic and so incompetent in delivering it. I firmly believe in HS2 but I wish that we had a Government who believed in it as much as I do, and they are the ones actually spending the money.

The Government have abandoned smaller businesses. The Queen’s Speech talks about increasing the amount of trade that we do with the Gulf, Africa and the Indo-Pacific. I entirely agree with that, but the reality is that we have a large market on our doorsteps and the current arrangements that we have as a result of Brexit prevent small manufacturers from being able to trade with those companies. Companies in the UK say to me that if they do not have enough for an entire lorryload to export, it is impossible for them to do so. Recently, Sir David Frost, the architect of the UK-Northern Ireland protocol, said that the protocol is not “sustainable for long”. This is a Government who in every regard are telling us one thing, failing to deliver, and then coming back and suggesting that they are the solution to the very problems they have created.

Small businesses have been left in a very difficult situation. We have seen the number of apprenticeships that small businesses are able to get involved in completely reduced as a result of the complexity of the apprenticeships system. Many small businesses have really struggled through the pandemic because their directors were excluded from the self-employment support scheme.

The self-employment scheme was great for those who qualified, but the reality is that there were many people in many sectors who carried on working right through the pandemic and were also able to pocket a very generous pay-out from the Government, but there were also 3 million people who, for a variety of different reasons, were excluded. The Government spent huge amounts of money on a scheme that missed many people for different reasons, and which simultaneously gave a huge amount of money to some people who were gratefully able to receive it, but who, it could be argued, were not necessarily the right people.

We have a Government who do not mean what they say and who do not deliver what they say they will. This Queen’s Speech is an incoherent example of all their failings.