(14 years, 3 months ago)
Commons ChamberObviously, it is important for Members to take part in this debate. I can reassure my hon. Friend that as a result of the proposals that we have announced today, some 8,000 more disabled people will be helped into employment. This is not just about the £320 million that the Government have already announced that they have protected to support this important group of people; it is about an extra £15 million on top of that, and I think that our actions speak very loudly.
I think that the 54 disabled people who are losing the jobs at Remploy in Chesterfield will see through the Minister’s warm words and rhetoric. The fact is that more disabled people than able-bodied people are unemployed generally: it is a desperately difficult jobs market out there anyway. The Minister has already dodged this question twice. Will she commit herself to coming back to the House in six months and telling us where those who have lost their jobs at Remploy have gone, so that we can establish whether her warm words mean anything to the 54 people in my constituency who are losing their jobs?
I do not doubt the hon. Gentleman’s genuine concern for his constituents, but I do not think that I have dodged that question. I have made it clear that we will monitor the progress made by disabled people, and I am always happy to come to the House and talk about the progress that the Government are making.
(14 years, 3 months ago)
Commons ChamberI entirely understand the importance of mobility and being able to get out and about for disabled people. It is our intention that Motability should continue to be linked to the new PIP scheme. I take my hon. Friend’s comments into account.
Beverley Herbert in my constituency was one of six people recently employed on a work experience basis by a major pub chain. Within four weeks, four of the others had gone, and the two people who were there for eight weeks collecting glasses were given permanent jobs, but were sacked within two weeks. Does the Secretary of State agree that for the work experience programme to enjoy widespread confidence, safeguards are needed to ensure that it does not end up exploiting people and providing free labour?
If Labour Members really want to answer the questions about the work experience scheme, they need to talk to some of the young people who have been through it, got jobs in their thousands and are delighted by the support they have received. That is what a responsible Government do: try to tackle a real challenge, find the right way to solve it and do so in a cost-effective way for the taxpayer. It is just a shame that the Labour party is not more vociferous in its support for what we are doing.
(14 years, 6 months ago)
Commons ChamberClearly, and another problem in the British economy is that there is a lot of private sector borrowing. We have a high level of indebtedness, both of government and of the private sector. In Italy, they save rather more than we do, and as a country we should try to encourage more of our citizens to save and not live on the never-never in the long term.
I support what the Chancellor did in the autumn statement. We are clearly in choppy weather, but that is no reason to change course. We cannot adjust the budget down or raise taxation painlessly. The living standards of most of the population will be squeezed. As the IFS and other organisations have said, living standards have fallen by about 7% over the past two to three years. The good news is that next year the projection is for things to be fairly flat, with some modest recovery after that. It may well be that when we get to 2015—the general election year—we have lower living standards than in 2010 as a consequence of the fact that we have inherited a major deficit, very difficult problems and a pretty rotten international environment. That is no reason for going off course, but it is a reason for sticking to a very sensible policy. Labour Members may think that we cannot do things without breaking eggs, but that is not so. We have to raise the tax burden and reduce spending, and I am afraid that that has consequences.
The hon. Gentleman said at the beginning that this would have happened under any Government. I congratulate him on his frankness, but the Chancellor is in complete denial about that—he wants to disown the fact that in 2007 and 2008 his policy was to follow Labour’s spending plans. The hon. Gentleman is right and his Chancellor is wrong, and I hope that he will try to get him to be a little more frank in future. No one disagrees about the need to reduce the deficit, but we are cutting more and more and yet the debt is going up way beyond what was predicted because the policy is not working.
We have been in office for only 18 months. It will take six, seven or eight years to stabilise the debt and probably several more to start reducing debt as a proportion of GDP.
I have said some complimentary things about the right hon. Member for Edinburgh South West. I rather suspect that had Labour won the general election in 2010 and Labour Members were sitting on the Treasury Bench, they would have a policy not dissimilar from that of the current Government. The seriousness of the problem is demonstrated by the fact that we are acting as a coalition Government. For all my political life, we fought the Liberal Democrats like ferrets in a sack, yet we have managed to find some degree of agreement because of the scale of the economic problems that we face.
The Government’s policy is sensible and measured in trying to do things gradually. That means that it will take a long time to implement, but we will ultimately get to a point where we have managed to reduce debt and get the economy into a much better state. In the short term, as I say, it is going to hurt, but I am afraid that that is a consequence of where we are. I see no other way around that. Tough decisions are necessary. I am glad that the Government—Conservative Ministers and even Liberal Democrat Ministers, to my surprise—have taken some pretty tough decisions. They are doing so for the national interest and for the interests of our children and our grandchildren.
I am more than happy to give way in a moment to the hon. Lady whose constituency is next to mine in Nottingham.
What people do not do—they recognise this if they are responsible—is to borrow more. If they have reached the maximum on their credit card or their overdraft, they must pull in their horns, live within their means, and cut their expenditure to match their income. Opposition Members struggle with that concept, because they never practised it when in government. That is why we have an appalling level of debt and, worst of all, an appalling level of deficit.
The first thing the hon. Lady seems to be suggesting is that the national debt is a brand new concept. The country has always had a national debt. The reality is that until 2008, her party supported our spending plans. The national debt fell between 1997 and 2007 under the Labour Government. She is talking as though the issue is brand new, but the reality is that a global economic crisis caused the scale of the deficit, and she must take that into account.
Hugh Bayley
No; I will make my case, if I may.
In opposition, the Government argued against the PFI, but their investment stimulus, which was announced yesterday—I was one of those who applauded it—is going to be paid for by the same sort of off-balance-sheet private finance as financed the PFI.
Yesterday, I ran the risk of incurring anger from my colleagues by welcoming the Chancellor’s plan B. It is a small plan B, but it is £5 billion of Government money backed up by further off-balance-sheet money from the private sector to stimulate the economy. The Chancellor does not call it a plan B. That would be embarrassing, as he has spent 18 months telling us that there is no alternative to plan A: savage cuts in public investment and infrastructure. But now it is plain for all to see that there has been a U-turn.
I congratulate the Chancellor on having the courage to start to do what is right and necessary for the economy. We heard about the U-turn in relation to a road in Nottinghamshire that was cancelled by the coalition Government and has now been reinstated. The Access York scheme—a £22 million improvement to the city’s park-and-ride system—is another good illustration. It was approved by the previous Labour Government, stopped by the coalition one month after the general election, and has now been reinstated, and I thank the coalition Government for that. In the short term, that green transport system will create construction jobs in my constituency, and in the longer term it will attract more visitors to York who will spend money in the shops and the visitor economy.
Nobody so far has mentioned the situation of the NHS. The Government promised that they would not cut NHS spending in real terms. I asked the Library to look at the figures for my PCT area, where many services are being cut. Gastric band surgery for the obese is not available on the same terms in North Yorkshire and York as in neighbouring areas. Facet joint injections for back pain are available elsewhere but not in York. Assisted fertility is available in neighbouring health authority areas, but not in York.
In the last year of the Labour Government, the increase to the PCT budget was 5.8%, which, with inflation running at 3.7%, was a net increase of 2.1%. In the first year of the coalition Government, the local PCT budget was increased by 2.2% but, with RPI running at 4%, that was a 1.8% cut in real terms. Nationally, the figures tell a similar story. In 2011-12, the real-terms cut in NHS funding is 0.56% on the previous year, and in 2012-13 it is predicted to be 0.33%. The Government gave a pledge not to cut NHS funding, and with inflation running at higher levels than they were anticipating, it is necessary for the Treasury to increase NHS funding to meet that pledge. I ask the Minister to respond to that point particularly.
What my hon. Friend says about the NHS is absolutely right, but there was also a pledge not to have any major reorganisations of the NHS. In Chesterfield, alongside the financial pressures that the NHS would have been under anyway, additional resources are being spent on reorganisation rather than on patient care. That is the other major problem that the NHS is facing.
Hugh Bayley
My hon. Friend is absolutely right. The reason why, under a Labour Government, there was a 2% real-terms increase in the NHS budget is that the cost of an ageing population and the new medical technologies introduced to the NHS is roughly 2% a year. A 2% real-terms increase, therefore, is a standstill in the ability to treat patients, but adding in a costly health service reorganisation and a real-terms cut in the budget means a savage cut in the availability of care for NHS patients.
(15 years, 3 months ago)
Commons Chamber
Mr Byrne
Any increase in vacancies is good news, but 40,000 is not an enormous increase, and when private sector employment is dead flat and public sector redundancies are mounting, I am afraid that it poses serious questions about whether unemployment will continue to rise over the next couple of years.
Does my right hon. Friend agree that, worrying as the youth unemployment figures are, the complacency demonstrated by the Government in debate after debate is even more worrying. We heard today from the Prime Minister that youth unemployment has been a problem for a long time, but the Government’s policies are making the situation worse. In my constituency, 1,100 people will potentially lose their jobs as a result of Auto Windscreens going into administration this week. All we hear from the Government is complacency, rather than an admission that their policies are making this major problem worse.
Mr Byrne
My hon. Friend is right to highlight his constituency case, which has caused concern to families up and down the country. We saw figures today showing that earnings growth is now about half the rate of inflation. At a time when the jobs market is weaker, that will contribute to a tighter and tighter squeeze on working families over the coming months.
We are taking decisions in the interests of the country. When I look back to 2005 and 2006, we always knew that Labour was making a mess of things, but we never imagined that they could do it quite so spectacularly.
If you realised that they were making such a mess of things, why did you agree to follow those plans? Is it not the right hon. Gentleman who has the amnesia?
Order. Members should not be using “you”—I have no responsibility for this and am certainly not guilty for the unemployment figures.
(15 years, 5 months ago)
Commons ChamberThe consultation has gone very well. We are sifting through the responses. There have been more responses than we anticipated. The vast majority have been positive, although there are some, in some areas of business, that were not as positive as we had hoped. We will publish those results and press on. I can guarantee to my hon. Friend and the rest of the House that we will press on with the issue.
I am glad to hear that the Secretary of State is keen to extend fairness to workers. It is important that people are not discriminated against, regardless of their age. Does he agree that unfair dismissal is unfair dismissal whenever it takes place, and that any steps that the Government take that make it easier for unscrupulous employers to sack people without the right of appeal will be a retrograde step?
(15 years, 6 months ago)
Commons ChamberMy hon. Friend will see tomorrow, with the publication of the Harrington review, some innovative suggestions about how we can deal with that problem. It is a very real problem. I am determined to ensure that we do everything we can to avoid people with mental health problems being wrongly diagnosed by the assessment. I pay tribute to Paul Farmer of Mind, whose input into the process has been hugely valuable.
May I bring the Minister back to the question asked by my hon. Friend the Member for Glasgow North East (Mr Bain) about the cuts to housing benefit? The cuts to local housing allowance are the same cuts that will make people in Chesterfield up to £11 a week worse off. Will the Minister confirm that that was not in the Labour party manifesto and is nothing to do with the cap? Will he set the record straight?
Steve Webb
On the contrary. The Labour party manifesto said that people who were in work should not be in worse accommodation than people who are out of work. That implies the 30th percentile change, and that is what we have implemented.
(15 years, 7 months ago)
Commons ChamberI think that that is the case on the Opposition side. The reality is that they have been scaring the public, and they know it. I detect just a little dog whistle blowing from those on the Labour Benches, freezing and frightening everybody out there in the socially rented sector.
I want to deal with some of the allegations. Opposition Members made the allegations, so let us get the record straight. The first was that London will somehow end up like Paris—socially cleansed so that people live only on the outer circle.
I will give way, but I want to make some progress first.
The fact is that we have heard a lot of this nonsense. We have put aside a large amount of money—some £140 million, and we have been keeping the position under review—so that we can deal with the hardest cases when we believe that it is necessary for anyone to be affected or moved. The Department for Communities and Local Government is assisting us with that.
Among the Opposition’s other charges was the charge that our changes were somehow not fair. The maximum rent following a cap—and the Opposition still have not said whether they agree with it—is £400, the weekly equivalent of more than £20,000 a year. Let me remind the House what someone who was out there earning would have to earn to pay that £20,000. That person would have to earn £80,000. The Government left us an LHA rate of £104,000 a year. Someone would have to earn £250,000 a year to pay that in rent. [Interruption.] I fully accept that we are dealing with the top end of the cases, who constitute by no means the largest number. The point is, however, that the previous Government were so slack with the system that they allowed abuses and excesses. Before the last election, even people on their own side were saying that they would have to change it. That is the reality.
I think that the Secretary of State is focusing excessively on the cap. My right hon. Friend the Member for Paisley and Renfrewshire South (Mr Alexander) has already made it clear that that is not the main focus of our objections to the Government’s proposals. The Secretary of State dealt with myths earlier. Will he now deal with the myth that housing benefit recipients are out of work? Many of them are working, but they are low-paid. More than 350 of them in Chesterfield will be badly affected, when they are trying to work their way towards a better life. Why are they the people whom the Secretary of State is attacking with his policy?
There are people in work who receive housing benefit, but the worst aspect of the changes with which the previous Government left us is that many of them are now trapped in short working hours. They dare not work for more hours, because they would lose too much of their housing benefit and would lose their homes as a consequence. Setting housing benefit at the levels at which the previous Government set it was no kindness to people who really do want to get on and work longer hours, because they are faced with the invidious choice of whether to move. That is one of the reasons more than 100,000 people moved in the rental market last year. Many people have to move to find a house that is suitable so that they can go and find better work. That is the reality. The hon. Gentleman’s party left us with that situation, and it is his party that he should now blame for the mess and chaos.
(15 years, 7 months ago)
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Natascha Engel
It does, unless one knows the demographic of the group. A big problem for those who have been out of work for a long time is that it has a really awful impact on their self-esteem and even on their ability to get out of bed, as they can get very depressed. One problem for those who are moved en masse from incapacity benefit to jobseeker’s allowance is that they do not have the confidence to appeal the decision. It takes groups such as welfare rights organisations to help them. Of those who are helped, the number who are successful on appeal is an absolute disgrace.
I wish to expand briefly on a couple of those points. In Chesterfield and Derbyshire, unemployed workers have had success in 75% of cases. I turn specifically to Atos Healthcare and its motivation. It did an assessment on behalf of Royal Mail for one of my constituents and found that he was not fit to work. Royal Mail retired him on the grounds of ill health, saying that he would never work again. However, when that person went for a work capability assessment, Atos said that he scored no points. The same company assessed him twice; on behalf of Royal Mail, it said that he was not fit to work and should be laid off, but on behalf of the Department for Work and Pensions, it said that he was fit to work and gave him no points. That puts the company’s performance in context.
Natascha Engel
I might have used that example, but I thank my constituency neighbour for his contribution. It is a serious matter, and errors are a fundamental problem. The system must be right if we are to move huge numbers from incapacity benefit.
(15 years, 7 months ago)
Commons ChamberMy hon. Friend will know that we are planning to bring forward a White Paper on reform of the benefits system soon. As I alluded to earlier, one of the biggest problems is that the existing benefit system has become so complex, with so many different withdrawal rates and different tapers—some at gross, some at net levels—done through different Departments. By bringing all that together and simplifying the system by giving people basically one withdrawal rate, we should be able to allow them to understand what they will retain, while also ensuring that work always pays. That, I think, is in the interest of everyone in the House.
I welcome what the Minister of State, the right hon. Member for Epsom and Ewell (Chris Grayling), said previously about looking into the work capability assessment. I met a delegation from Chesterfield and north Derbyshire on Thursday, although they were due to have a meeting with him. One in the group was told that she was fit to work four days before a cancer operation, while another who had a plaster cast the whole length of his arm was told that he was fit to work. Unfortunately, the Minister cancelled his appointment to see them on the day before they came down to London. Will he commit to seeing them? If he really wants to learn about the work capability assessment, he should meet some of the people who have been affected by it.
I did not cancel any appointment, and I had a meeting with the TUC official who organised the rally on that day. What I cannot do is get into discussion of every individual case. My goal remains to do the right thing by those people who are on incapacity benefit in the long term. We need to modify and refine the work capability assessment based on the best information available to us. What we face today is what we inherited from the previous Government. What I am doing right now is trying to improve it so that it is as foolproof as possible when we come to the national roll-out next spring. I will do my best to get that right and I hope there will be cross-party support for doing so.
(15 years, 10 months ago)
Commons ChamberI absolutely guarantee to do that, and I will talk to my right hon. Friend the Minister of State about it. It is worth bearing in mind what a real challenge this is for us. I have to repeat that, over the past 14 years, that group particularly was most failed by the previous Government. Before they carry on giving us lectures about it, they should recognise that failure and probably apologise for it.
Given that the Secretary of State says that the Labour Government failed young people and that his policies are going to be so much better, if youth unemployment goes up, will he resign?
Unless we can get retrospective resignations from the whole pack of the last Cabinet, I do not think that I should answer that.