(12 years ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
George Hollingbery (Meon Valley) (Con)
1. When he plans to bring forward his proposals for a single-tier state pension.
The Minister of State, Department for Work and Pensions (Steve Webb)
With permission, Mr Speaker, I will answer this question together with Questions 6 and 20.
I can confirm that, as was announced by the Chancellor in his Budget, we will present further details about the single-tier state pension in a White Paper later in the spring. Final decisions on the detailed implementation of the policy will be made in the next spending review.
George Hollingbery
A number of my constituents have contacted me expressing concern about the transition between the old and new systems—in particular, a Mr Theo Stellakis, whose questions the Minister has answered on a number of occasions. Can the Minister tell us how the transition will affect two people, one reaching the age of 65—or reaching pensionable age—on the day before the changes are implemented, and the other doing so the day after?
Steve Webb
I recall corresponding with Mr Stellakis on a number of occasions. What concerns him is the idea of a cliff edge before and after 2016. Let me clarify the position. When people receive state pensions of less than the full amount because they were contracted out, as I believe the hon. Gentleman’s constituent was, we will continue to take account of that after 2016, so there will not be the cliff edge that he envisages. We will have to phase out the arrangement over time, but in 2016 we will continue to take account of past contracting out.
Mr Speaker
Mr Simon Hughes? Not here. Jo Swinson? Not here.
The Department kindly informed me of the intended grouping at approximately 9.10 this morning. I hope, and say with some confidence that I trust, that it also informed the hon. Members in question. Neither of them is present, however, so I call Mr Julian Brazier.
Mr Julian Brazier (Canterbury) (Con)
Does my hon. Friend agree that the great advantage of his proposal is that it will help to restore incentives to save? Many people feel today that there are few such incentives in the benefits system.
Steve Webb
My hon. Friend is right. At present, the level of the basic state pension is so far below that of the means test that the first slice of savings is largely offset by means-tested benefits. My right hon. Friend the Chancellor has confirmed that whatever detailed proposition we present, the level of the single-tier pension will be clear of basic means-testing, and will therefore reward those who have saved rather than penalising them.
Mr Frank Field (Birkenhead) (Lab)
How long does the Minister think he will get away with these proposals? If a private company decided to do what he proposes to do—take contributions away from people who have paid over the years and give additional pensions to people who have not paid anything—the House would be jumping around with anger. Why does he think he can do that to people who have paid for a second state pension?
Steve Webb
If we were doing what the right hon. Gentleman says we are doing, I should be as outraged as he is. However, we are not doing that. Part of our proposition is that all contributions paid to date will be recognised in the new system. At the point of transition, if someone was heading for a pension of £150, £160 or £170 a week, that is what we would pay that person. [Interruption.] The right hon. Gentleman asks, from a sedentary position, where the money is coming from. We will present our costings in the White Paper, and he will see then that we will find it through less means-testing, among other things.
As for bringing people into the system, successive Governments have, for example, credited women who have spent a period at home with children. Although they have not paid cash, they have contributed, and that should be recognised. I think that that is right, and we are doing the same.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
In his Budget statement, the Chancellor told the House that moving to a single state pension would not cost more in any year than the current pension system. Further to the question from my right hon. Friend the Member for Birkenhead (Mr Field), may I ask whether the costs of the move will be borne partly by the more than 7 million workers in the private and public sectors who contribute to defined-benefit schemes and are currently contracted out?
Steve Webb
As the hon. Gentleman knows, when we introduce a single state pension there will be no more contracting out, so clearly those who were in contracted-out schemes will be contracted back in. However, the annually managed expenditure costs of the scheme are being met by the reduction in means-testing and paying of savings credit to new claimants only, and by an increase in de minimis provision, so that people who have spent only a few years in the country do not build up a state pension as they would currently do. Those are the two main ways of meeting the costs, but they will also be met through the non-accrual of additional second state pensions after 2016.
Julie Elliott (Sunderland Central) (Lab)
2. What assessment he has made of the effect of changes in funding for childcare support on unemployment among women.
The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)
I refer the hon. Lady so the answer that I gave the right hon. Member for East Ham (Stephen Timms) last Thursday. In case she was not able to read Hansard, however, I can tell her that the Government fully recognise the importance of child care in helping parents—not just mothers—to move into or stay in work. Through universal credit, we will for the first time extend help with child care costs to those who work for less than 16 hours a week, which will benefit 80,000 families who formerly had no entitlement to such support.
Julie Elliott
Is the Minister aware that since the cut in the child care element of benefit in October 2011, 44,000 people have stopped claiming? How many of those people does she think have simply left work because it does not pay to work any more?
Maria Miller
I think the hon. Lady is referring to some statistics about the reason why individuals are not in work, but I do not think she can quite draw the conclusion she has drawn that those particular individuals are out of work. As she will know, the Government are absolutely committed to making sure more women are able to move into work, which is perhaps why there are some 61,000 more women in work now than when Labour left office.
Mrs Helen Grant (Maidstone and The Weald) (Con)
Does the Minister agree that flexible working and shared parental leave will be very helpful in keeping women in work and child care costs down?
Maria Miller
My hon. Friend is right. We have put in place a package of measures, including flexible working, that will make all the difference. I should also remind her that we have doubled the number of two-year-olds getting free nursery care, and some 80,000 more families will be able to get child care support under universal credit.
Mel Stride (Central Devon) (Con)
3. What progress he has made on support packages for Remploy workers in stage one factories.
The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)
We will have a full and intensive package of support available for any employee affected by the Government’s announcement to accept the Sayce review recommendations. Remploy is currently within its 90-day consultation period, and once that has ended we will provide final and detailed information about the support disabled people will be given to move into mainstream employment.
Mel Stride
Like my hon. Friend, I believe it is far better for disabled people to have the opportunity to work in mainstream employment than in segregated factories. However, will she outline the reforms she is making to the access to work programme to make sure that, in this case, some of the most vulnerable people in our society are able to get back into work quickly?
Maria Miller
My hon. Friend is right to suggest that we feel that access to work is the measure that will, when expanded, do most to help disabled people into work, and we will be working with disabled people to ensure we get the measures right. We have already been able to announce an extra £15 million to support access to work over the spending period, thereby helping some 8,000 more disabled people into work.
Mr Frank Roy (Motherwell and Wishaw) (Lab)
I have spoken to every single worker in the Wishaw Remploy factory, and all of them are in despair at the thought of losing their jobs. How many notes of interest have there been from potential bidders for the Wishaw factory?
Maria Miller
I thank the hon. Gentleman for that question. I am not privy to those sorts of commercial details, but I will be working as hard as I can—as, I am sure, will he—to ensure that there are more credible bids so that, if possible, factories such as the one in Wishaw, which supports some 20 disabled people, can continue. However, I also remind him that there are more than 11,000 disabled people in his constituency, and we are trying to ensure that the available money is helping all of them.
Mr Lee Scott (Ilford North) (Con)
Does my hon. Friend agree that it is very important to get young people with special needs into work, and does she welcome the scheme to be piloted in the borough of Redbridge in my constituency to get young people into work, and congratulate Interface and local businesses on playing their role in that?
Maria Miller
I commend the work my hon. Friend has been doing. He has done so much to support disabled people in his constituency get into work, and I look forward to continuing to follow the work he is doing.
Mrs Anne McGuire (Stirling) (Lab)
Remploy Ltd provides a defined benefit occupational pension scheme for its employees, but it is not eligible for pension protection funding by virtue of regulation 2(1)(d) of the Pension Protection Fund (Entry Rules) Regulations 2005. In the case of Remploy, the Secretary of State for Work and Pensions guarantees that the company’s assets are sufficient to meet its liabilities in the event of its winding-up. Under the Minister’s current proposals, will the Secretary of State continue to honour that commitment to current and retired Remploy employees?
Maria Miller
I am sure the right hon. Lady is aware of the fact that when this Government took office we inherited an enormous deficit in the Remploy pension fund. We are trying to sort that out. I can absolutely give her the undertaking that pensions that are in place will be fully protected, as she would expect.
Karl MᶜCartney (Lincoln) (Con)
4. What progress he has made on the youth contract; and if he will make a statement.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
18. What progress he has made on the youth contract; and if he will make a statement.
The Minister of State, Department for Work and Pensions (Chris Grayling)
The youth contract was successfully launched on 2 April 2012. It builds on existing support available through Jobcentre Plus and the Work programme, enabling young people who are unemployed to look for work, gain work experience and skills, and find real, lasting jobs.
Karl MᶜCartney
I thank the Minister for that illuminating answer. What assessment has been made of the impact of the work experience programme, which is being expanded under the youth contract?
Chris Grayling
We published the latest assessment of the effectiveness of the work experience scheme last week. It showed that the people who participated were 16% more likely to be off benefits 21 weeks after starting than a similar group who did not. It is worth stating that that is similar to the success rate of the future jobs fund, at a 20th of the cost.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Can my right hon. Friend tell the House how the youth contract is being received by employers across the country?
Chris Grayling
We have had enormously gratifying levels of support from employers for the youth contract, in terms of their willingness both to hire and to give apprenticeships to young people. In particular, I wish to pay tribute to all the companies, large and small, around this country, including in your constituency, Mr Speaker, and that of my hon. Friend, which are providing work experience opportunities for young people. We know that such opportunities give them a much better start in life than those who do not have that experience.
Sheila Gilmore (Edinburgh East) (Lab)
Press reports have suggested that the amount of extra support being given to young people might be as little as a text message. Will the Minister be specific about how much face-to-face advice and support young people are getting under this programme?
Chris Grayling
Much more than was the case under the previous Government. We do not apply a one-size-fits-all approach; we do not drag somebody in from a work experience placement or from a sector-based work academy to do an interview with them. However, we keep in contact with everyone every week, and when people are not working—when they are not in a work experience placement—we are now providing weekly contact with young people, as opposed to the fortnightly contact that was the case under the previous Government.
Karen Bradley (Staffordshire Moorlands) (Con)
One message coming from Staffordshire Moorlands Community and Voluntary Services, which runs the job club in Leek and Biddulph, in my constituency, is that it would like more employers to offer the youth contract. What can the Minister do to encourage more employers to get involved?
Chris Grayling
First, I pay tribute to the work being done in the Moorlands by the job clubs there, which is making a real difference to the prospects of the unemployed. What I say to my hon. Friend and to every hon. Member is that there is a real opportunity for each of us, individually, to approach local employers and encourage them to provide work experience opportunities. Tremendous work is already being done by colleagues in organising job fairs and organising different opportunities for young people who are looking for work. We can all play a part in this; it is a way in which this House can be a real activist centre in trying to help unemployed young people.
Stephen Timms (East Ham) (Lab)
It is a good thing that the youth contract has finally started. The Deputy Prime Minister says that he told the Cabinet in January last year that something needed to be done on youth unemployment. Why has it taken the Department for Work and Pensions 15 months to make something happen?
Chris Grayling
I have great respect for the right hon. Gentleman, but on this occasion he has plain got it wrong. Over the past 12 months, we have put in place support through the work experience scheme, and we have put in place the Work programme and sector-based work academies. We have also given greater flexibility to job centres to use funding that is available to them to provide tailored support for people in their community. We have been working hard to tackle a problem of youth unemployment that built up and was left behind as a dreadful legacy by the previous Government.
Stephen Timms
In the youth contract, the wage subsidies are in a national pot to be handed out on a first-come, first-served basis, so providers will be competing to hand them out as fast as possible, whether or not they are actually needed. Surely it would have been far better to target subsidies where they are needed. Why has the youth contract been so badly designed?
Chris Grayling
Once again, the right hon. Gentleman has just got it plain wrong. We are targeting this support at young people who are struggling to get into work—the long-term unemployed. I am talking mostly about those who have been out of work for more than nine months, but sometimes this will go to those who have come from the most difficult backgrounds and who have been out of work for three months. This money is targeted absolutely at where it is needed, and I believe that it will make a difference.
Elizabeth Truss (South West Norfolk) (Con)
5. What assessment he has made of the means by which universal credit will deliver funding for childcare.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
We have committed to invest some £2.3 billion in child care support in universal credit—that is £2 billion spent on the current system and an extra £300 million we secured in order to extend support to parents working less than 16 hours. That should give them what is really important—support in work across the hours—and it means that some 80,000 more families will get child care under universal credit.
Elizabeth Truss
In the Netherlands there is a system of agencies that train and regulate childminders. That country has twice the number of childminders per head than we do in the UK and its child care is also more affordable. Will the Secretary of State look into what happens in the Netherlands, with a view to getting better value for the universal credit money and getting more people into work as childminders?
Mr Duncan Smith
I take this opportunity to congratulate my hon. Friend on the work that she has been doing on this. She is quite right that it is an important area and it is one that I have asked my Department and the Department for Education to consider together. Under the previous Government, the number of childminders fell quite dramatically. In 1996, there were about 100,000 and in 2011 that number had fallen below 60,000. That is a huge issue. When we took over, we found that the costs of child care in the UK are about the fourth highest in the world. My hon. Friend is absolutely right that there are big issues that we need to deal with and try to resolve so that we can get more people back to work with the support that they need.
Andrew Bridgen (North West Leicestershire) (Con)
7. What progress he has made on implementing the recommendations of the Löfstedt report on health and safety regulation.
Mr David Ruffley (Bury St Edmunds) (Con)
8. What progress he has made on implementing the recommendations of the Löfstedt report on health and safety regulation.
The Minister of State, Department for Work and Pensions (Chris Grayling)
As my hon. Friends will recall, the Löfstedt review was published last November. We have already made good progress on implementing the report’s key recommendations. Consultation on the repeal or revocation of 21 legislative measures is already under way by the Health and Safety Executive and the Government intend to scrap, consolidate or improve 84% of health and safety regulations, greatly reducing the burdens on business and creating a clearer regulatory framework. In addition, two independent challenge panels have been established, the first to consider complaints from businesses about decisions made by HSE or local authority inspectors. The second will consider problems arising from non-regulators, such as insurance companies, health and safety consultants and employers, and to assess whether those decisions are proportionate and appropriate or whether they are wrong.
Mr Speaker
There is scope for a written ministerial statement, I would have thought.
Andrew Bridgen
It was one, Mr Speaker.
I welcome the launch of the mythbusters challenge panel, designed to give quick advice to people affected by ridiculous or disproportionate health and safety decisions. Will my right hon. Friend explain how that panel will work?
Chris Grayling
What we are trying to do is to give people who believe that a decision that has been taken is wrong—such as a decision to cancel an event or to take some other step that will impact on their lives—a chance to go quickly to the HSE and ask whether it is based on a true interpretation. We will seek to give them a clear view within two days of whether the decision is appropriate, so that they can challenge it locally.
Mr Ruffley
EU directives accounted for 94% of the cost of health and safety rules between 1998 and 2009. What discussions has the Minister had in Brussels about this completely unacceptable state of affairs and will he make it clear to Brussels officials that British businesses want less, not more, Brussels interference in the British workplace?
Chris Grayling
I wholeheartedly agree with my hon. Friend. The tide of bureaucracy we have seen in recent years has hindered business and affected employment. My view is that the EU should focus on measures that create jobs, rather than hindering the creation of jobs. That is of fundamental importance and I can assure him that I will fight that battle extremely vigorously in Brussels.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
The Health and Safety Executive has recently concluded its consultation on charging business for some of its services. Will it be able to keep the income brought in through that process or will it go straight into the Treasury?
Chris Grayling
The actual process is that all moneys raised in such a way go to the Treasury first, but financial agreement has been reached between the Treasury and the HSE, so that appropriate amounts of money are passed on to the HSE so that it can carry out that regime as intended.
Stuart Andrew (Pudsey) (Con)
9. What steps his Department is taking to support families and individuals facing multiple disadvantages.
Paul Maynard (Blackpool North and Cleveleys) (Con)
10. What steps his Department is taking to support families and individuals facing multiple disadvantages.
Jake Berry (Rossendale and Darwen) (Con)
13. What steps his Department is taking to support families and individuals facing multiple disadvantages.
Chris Skidmore (Kingswood) (Con)
21. What steps his Department is taking to support families and individuals facing multiple disadvantages.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
My Department’s reforms of the welfare system are to support people with difficulties entering the world of work. We have considered this matter extensively and are introducing support that is tailored to the needs of individuals to get them closer to employment and to tackle the entrenched worklessness at the heart of that. That includes £200 million of European social fund support for families with multiple problems. Local authorities play a critical role in the delivery of that support and we urge them to consider it to be as important as we do.
Stuart Andrew
I welcome the fact that about half the organisations involved in the delivery of this scheme are voluntary. Does my right hon. Friend agree that local charities are often best placed to provide the tailored and personalised support that such families need?
Mr Duncan Smith
It is true that voluntary sector organisations tend to deal with the whole person, rather than, like Government Departments and even sometimes local authorities, considering specific issues while forgetting that many of them knock on to each other. Such organisations have an important role to play. We should not ignore the fact that local authorities and Government Departments have to get their act together and make sure that when dealing with families with multiple problems, they talk to each other—always, there is a tendency for them not to do so. The good authorities hub up all the services around the family, which is at the centre, so Health, Work and Pensions, Education and all the Departments involved start to co-ordinate their activity, rather than spend all that money and get nowhere.
Paul Maynard
One of my wards, Claremont, is, according to the latest DCLG statistics, the fifth most deprived ward in the country, and I see daily the hurdles that families have to overcome to deal with some of the entrenched problems they face. I realise that no single agency can solve them, nor indeed can any single Government Department. Will the Secretary of State explain what he is doing with other Departments to ensure that all troubled families get a whole-of-Government approach, rather than a series of unconnected initiative-itises?
Mr Duncan Smith
My hon. Friend raises a good point. That is why the Prime Minister asked specifically that Louise Casey operate and head up a unit, reporting to my right hon. Friend the Secretary of State for Communities and Local Government, which is looking at the 120,000 worst affected, most difficult families. The idea, as I said earlier, is that, working with her, local authorities nominate the families. She wants them to hub up services to make sure that the pooled amount of money they get is spent on life-changing actions, not the tokenistic box-ticking that too often takes place.
Jake Berry
Does my right hon. Friend agree that the best way to escape the silo mentality in Government Departments and local authorities is to champion the voluntary sector in helping to support families in areas of multiple deprivation, such as those in my constituency? Home-Start is a fantastic charity that does such work in my area. Will he support it?
Mr Duncan Smith
Indeed I do. Home-Start is a remarkable charity and I am sure that right hon. and hon. Members on both sides of the House will give it their full support. It is worth bearing in mind that the families it deals with are very much in that category of worst and most troubled, with children growing up with parents who often have multiple issues themselves—sometimes serious drug addictions—and sometimes the money given to the families does not get down to where it benefits the children. It is worth reminding the House that 1.8 million children live in workless households, which gives them a difficult start in life.
Chris Skidmore
Some of the families and individuals facing multiple disadvantages are also family carers and young carers. What reassurance can the Secretary of State give the House that the Government will recognise those who have a caring role when introducing this fantastic support package?
Mr Duncan Smith
That is very much part of what we are trying to do and we will certainly recognise such roles. After all, we recognise fully that the effort given beyond the state multiplies many times the amount given by the state. Without that support—that voluntary and family work with people with difficulties—it would be almost impossible for the state to operate.
Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)
Will the right hon. Gentleman join me in paying tribute to Lord Ashley, who was passionately committed to people with disabilities and pursued that work both in this House and in the other place? As a further tribute, will he ensure that, in his Department, the needs of people with hearing impairments are met as they should be able to expect?
Mr Duncan Smith
Indeed I will. The right hon. Gentleman reminds us that we should all pay tribute to a brilliant campaigner, if I dare say, and supporter of people with disabilities. All of us in this House and the other place know the effectiveness of his campaigns and stand in awe of someone who dedicated his life as he did to supporting vulnerable people.
Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)
Yesterday, I was contacted by my constituent Edward Connolly. Edward and his wife have four children under 10, and Edward is recovering from prostate cancer. He works 16 hours a week and his employer cannot give him any more hours. He cannot access the Work programme, and he is losing £250 a month in tax credits. Can the Secretary of State tell me how he proposes to protect the Connolly family from the multiple disadvantages that have been introduced by this Government?
Mr Duncan Smith
If the hon. Gentleman wants to write to me directly about that, I am very happy to speak to the individual concerned and his family. Clearly, we want to do the best by them. That is the whole point of universal credit, which will benefit him enormously at 16 hours, and other hours too, whereas the present system, as the hon. Gentleman knows, targets only specific hours, rather than all the hours that people work. I am happy to deal with that case directly.
Mr Gerry Sutcliffe (Bradford South) (Lab)
May I add my condolences to the family of Lord Ashley, who was a tremendous worker in both Houses? The Minister is right: it is difficult to deal with families with multiple disadvantages. The difficulty is that that group is growing wider now because of people losing disability or other benefits. How will the Minister make sure that we maintain an up-to-date list of the families who have problems—a list that is going to grow?
Mr Duncan Smith
The hon. Gentleman is absolutely right. This is one of the big issues that we have to deal with. The reason why Louise Casey was asked to do this work was so that she, working with the local authorities, could start to map out where the most difficult families are in their areas. The key thing—I come back to this—is that it is ultimately local authorities that will and should know where these families are. There are some good examples. In Westminster the council has already hubbed up the issue and got organisations working with it; other local authorities are not so good. I am not here to name and blame, but I want local authorities to act with Louise Casey and the team to make sure we map those families, as the hon. Gentleman so rightly asks us to do.
Grahame M. Morris (Easington) (Lab)
The Secretary of State refers to Louise Casey, but my understanding is that Emma Harrison was paid £8.6 million in dividends last year from her company, A4e, which was appointed by the Prime Minister to head up that programme, but she has now resigned. Can the Secretary of State list her main achievements?
Mr Duncan Smith
Nice try, but the hon. Gentleman has got it wrong. Emma Harrison had nothing to do with the programme. Louise Casey has always been heading it up. I understand why he wants to elide the issues, but it is not true. Emma Harrison heads an organisation and was asked to give some advice, I understand, to 10 Downing street on other issues to do with families, but she has not controlled this issue at all. I hope the hon. Gentleman will try again some other time.
Katy Clark (North Ayrshire and Arran) (Lab)
11. How many blind people had their contributory employment and support allowance withdrawn in the last month for which figures are available.
The Minister of State, Department for Work and Pensions (Chris Grayling)
May I associate myself also with the remarks about Lord Ashley? He was one of my constituents. He and I worked together closely on the future of Epsom hospital. He was a great campaigner, as well as being a lovely man, and he will be much missed.
Assuming that the hon. Lady is talking about the changes in the Welfare Reform Act, the answer is that the change has not yet come into force so no one has had their benefit withdrawn yet.
Katy Clark
I thank the Minister for his answer and associate myself with the comments about Lord Ashley. A 56-year-old blind constituent came to my surgery a fortnight ago. He currently receives incapacity benefit but is very concerned about the Government’s proposals in relation to employment and support allowance. What can the Minister say to him and to the many other blind people who are worried that they will no longer be eligible for benefits under the Government’s proposals?
Chris Grayling
It is obviously difficult to be exact in an individual circumstance without knowing about the case, but my message to all those in receipt of benefits is that this change affects only those in the work-related activity group who have the potential to return to work and who have another means of income or who have savings in their household. It does not affect those who cannot work in the support group. It does not affect those who need the financial support through an income-based benefit. It affects only a minority of claimants who have the potential to return to work and have other means.
Duncan Hames (Chippenham) (LD)
I understand why the Minister would want assessments to consider people individually. However, the frameworks for those assessments need to be got right. Take, for example, how a blind person may fare in applying for the new personal independence payment. Will the Minister and his colleague look again at the weightings that will apply to the activities supported by this payment, since if someone with full sight loss is unlikely to qualify for the enhanced level of support, surely there would be a case for changing the weightings?
Chris Grayling
We are trying to get this right. We want a reform that produces a system that reflects genuine disability and does not provide support to those who do not need it. We are in the middle of a consultation about this. I ask my hon. Friend to take part in that consultation and to encourage his constituents who may be concerned about the reform to do so. We want to get it right.
Ian Paisley (North Antrim) (DUP)
What message has the Minister for my constituent, Annie McAlonan, who was on income support and incapacity benefit and has now been transferred to ESA but has failed the medical examination? This woman has breast cancer and ongoing medical difficulties associated with that condition, yet she is told that she is now fit for employment and has to seek employment. Is this not a classic case of welfare reform failing the most vulnerable?
Chris Grayling
It is under different leadership in Northern Ireland, but let us be absolutely clear that someone who is undergoing treatment for cancer and is having chemotherapy and radiotherapy would, in almost all cases, be in a support group and be receiving long-term care. I do not know enough about the circumstances of the hon. Gentleman’s constituent to be exactly certain where she is in the course of her treatment, but one of the changes that we made on coming to office was to improve support for cancer patients, not to reduce it.
Richard Fuller (Bedford) (Con)
A constituent visited me during the weekend to express her concerns about her husband who is blind and who has been informed that he will lose ESA in five months. He is taking a course to enable himself to get back into work, but it will take longer than five months to complete. What additional support may be provided to people in his situation to enable them to get back into work?
Chris Grayling
It very much depends on the circumstances of those concerned. The only people in danger of losing ESA as a result of those changes are those with other financial means in the household. It may be that they gain an additional entitlement to housing benefit and tax credits as a result of the changes, but we do not want to apply a one size fits all through the system to those who are blind or partially sighted. Some will need long-term support as a result of their conditions, and we will want to help others with long records in employment back into employment as quickly as possible.
Alex Cunningham (Stockton North) (Lab)
12. What support he plans to provide to young people who leave the Work programme without a job.
The Minister of State, Department for Work and Pensions (Chris Grayling)
The Work programme will help and is helping a significant number of people into lasting work. We are trialling two approaches to supporting the very long-term unemployed. Those trials will inform the development of a national programme of support from the summer of 2013 for those leaving the Work programme who still need to find employment and need further help.
Alex Cunningham
Young people deserve the offer of a real job if they are out of work long term. Why does not the Minister put in place Labour’s real jobs guarantee to ensure that young people have the opportunity of real jobs with training and time to search for a job, instead of dropping them like a stone?
Chris Grayling
We have to remember that the funding that underlies Labour party policy has already been announced for, I believe, nine different purposes of late. The programmes that we have put in place to help young people are much more cost-effective than the previous Government’s programmes, and much more affordable at a time when, as the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) reminded us, there is no money left, and they are making a real difference today.
Robert Halfon (Harlow) (Con)
Is not the best way to help these young people the investment in the hundreds of thousands of apprenticeships that give young people the skills they need?
Chris Grayling
I completely agree. My hon. Friend has done a first-rate job in promoting apprenticeships in his constituency and in Parliament. The apprenticeship dimension to the youth contract will be an important part of getting young people into work. This is a much better way forward to create long-term career opportunities for young people than the short-term placements out of the private sector that were the hallmark of the previous Government.
Mr David Lammy (Tottenham) (Lab)
Will the Minister share his concerns with the House about the rising level of long-term unemployment among London’s black youth, now three times the level of their white peers? Why is it that in Tottenham, 87% of Haringey’s young residents are not entitled to the wage incentive scheme under the youth contract? This is a real concern.
Chris Grayling
The only young unemployed people in Haringey not entitled to access funding under the youth contract are those who have not been out of work for very long. I genuinely share the hon. Gentleman’s concerns about young black unemployment, and that is one reason why we have created for Jobcentre Plus the flexible support fund, which enables our local offices to target support, as it is indeed doing in Haringey, at organisations such as the Tottenham Hotspur Foundation, which is working with young black people. The figures that the Labour party keeps putting forward about long-term youth unemployment are completely distorted by the fact that it used to hide people in the training allowance, which did not show up in the figures, and we no longer do that.
Guy Opperman (Hexham) (Con)
14. What steps Jobcentre Plus is taking to use the flexible support fund to support claimants into work.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Referencing that last answer, we are all rather proud of the flexible support fund. It is a bold scheme that changes the direction of travel for jobcentres, which until 2011 worked in a static and rigid way. We are getting more flexibility, and the flexible support fund allows advisers to target money at individuals who may need support in getting to job interviews or buying the right kind of clothing, which is a big and bold change.
Guy Opperman
How has the flexible support fund actually provided funding to local partnerships to address those barriers to work, and will the Secretary of State write to me with specific evidence relating to the north-east?
Mr Duncan Smith
Indeed I will write to my hon. Friend. We have looked again at the flexible support fund and increased its flexibility and what advisers can do. Let me give some examples. General advisers in jobcentres can give up to £300—raised by over £100—to whatever specific area they think needs it. Senior operational managers can give up to £500, district managers can give up to £50,000, and work service directors can give up to £100,000, so the scope is there for them to do that flexibly. Many awards have been made, for example £985 for a class 1 HGV driver’s licence, so there is scope. I advise right hon. and hon. Members on both sides of the House to remind their young unemployed and other unemployed constituents that there is scope for them to be supported if they have difficulties.
Dr Julian Huppert (Cambridge) (LD)
15. What steps he is taking to ensure that pension funds adopt ethical and infrastructure investments.
The Minister of State, Department for Work and Pensions (Steve Webb)
If I may refer briefly to the grouping of earlier questions, Mr Speaker, I understand that we failed to notify my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) and my hon. Friend the Member for East Dunbartonshire (Jo Swinson) of the grouping and so apologise to them and to you.
Pension scheme trustees can consider companies’ environmental, social and governance practices. I am clear that trustees’ duties do not require them simply to maximise short-term investment returns. On infrastructure, the autumn statement set out details of a memorandum of understanding signed by the Government with two groups of UK pension funds to support additional investment in UK infrastructure.
Dr Huppert
I thank the Minister for his comments. He will be aware of the whole range of investments that give more than just short-term financial returns. For example, the Cambridge Retrofit programme, which was launched last week, will try to retrofit every building in Cambridge by 2050. However, how will he communicate with trustees and ensure that they are aware that their fiduciary duties do not prevent them from doing this, because many of them seem to be unaware of it?
Steve Webb
The Pensions Regulator communicates regularly with trustees and provides a trustee toolkit on its website that sets out their duties, but I think that auto-enrolment provides an opportunity for ethical investment. For example, the National Employment Savings Trust will specifically have an ethical fund for those who wish to invest in that way, and I hope that the schemes my hon. Friend refers to will seek to find investment through that sort of route.
Kerry McCarthy (Bristol East) (Lab)
16. What recent estimate he has made of the level of unemployment in Bristol.
The Minister of State, Department for Work and Pensions (Chris Grayling)
The latest estimate for the level of International Labour Organisation unemployment in Bristol, produced by the Office for National Statistics, is 21,400.
Kerry McCarthy
Does the Minister know whether the Prime Minister, on his visit to Bristol today, will take the time to meet some of those affected by long-term unemployment, which is up by 72% in the past year and a staggering 15,000% among young people, or was the hon. Member for Mid Bedfordshire (Nadine Dorries) correct when she described the Prime Minister and the Chancellor on the “Daily Politics” show today as
“two arrogant posh boys who show no remorse, no contrition, and no passion to want to understand the lives of others”?
Chris Grayling
I cannot speak for the Prime Minister, but I can say that I have been to Bristol recently and spoken with unemployed people there. I can also tell the hon. Lady that the figures she quotes are nonsense. She and her Labour colleagues keep forgetting the fact that they used to hide large numbers of unemployed people on a training allowance, which masked the true picture of long-term unemployment. I can absolutely assure her that genuine long-term unemployment in her constituency is not up by 72%.
Julian Smith (Skipton and Ripon) (Con)
17. What assessment he has made of the effectiveness of the new enterprise allowance.
The Minister of State, Department for Work and Pensions (Chris Grayling)
We have not yet made a formal assessment of the effectiveness of the NEA because it is too early to draw robust conclusions. We will of course carry out a proper impact analysis in due course. Participation in the scheme has so far proved popular; at the end of November last year, when the most recent figures were published, nearly 2,000 new businesses had been created, and many more have been created since then.
Julian Smith
I thank the Minister for that answer. Is it not correct that Yorkshire and the Humber has one of the highest take-ups of the scheme anywhere in the country? Has he thought about how we could increase the number of places on the scheme in order to allow people who want to set up a business to start much earlier?
Chris Grayling
Yorkshire and the Humber has indeed proved to be a pathfinder for the scheme. I am aware of how popular it is and am now looking at ways in which we could modify it in order to provide a greater focus on those areas where demand is high and see whether it makes sense to allow people to access it earlier.
Yvonne Fovargue (Makerfield) (Lab)
19. What assessment he has made of homeless people’s experiences of the work capability assessment.
The Minister of State, Department for Work and Pensions (Chris Grayling)
In recognition of the specific issues that homeless people encounter, information and advice related to the work capability assessment is provided through their Jobcentre Plus adviser when they collect their benefit payment via the personal issue payment process.
We have also been in touch with the Department for Communities and Local Government about homeless people. Through this, a meeting has been arranged between Professor Harrington, the work capability assessment independent reviewer, and several charities representing homeless people. We will consider fully any recommendations he makes.
Yvonne Fovargue
Upcoming research from Crisis shows that almost half the homeless people questioned felt that the health care professionals at their assessment had a bad or very bad understanding of homelessness and how it impacts on their lives. What steps are being taken to raise awareness among the health care professionals conducting that research and carrying out the work capability assessment?
Chris Grayling
I have invited all the charitable groups that have an interest in WCA matters to feel free to offer guidance and training sessions to our decision makers, and to share their views so that any appropriate elements can be included in our training programmes, but of course the best way of helping the homeless is to help them into employment—to use the income to find a home and to sort their lives out properly.
Damian Hinds (East Hampshire) (Con)
Given the prevalence of mental health issues among homeless people, is not Professor Harrington’s focus on such issues in his second report particularly important for them? Does the Minister also welcome the view of charities such as Homeless Link that Professor Harrington’s work is making a material difference to the operation of the work capability assessment?
Chris Grayling
It might be appropriate at this point to pay tribute to Professor Harrington for the work that he has carried out. Of all the things that I have heard over the past 18 months about the work capability assessment, one thing I have not heard is anyone criticise Professor Harrington, who has done his job excellently and independently.
Jo Swinson (East Dunbartonshire) (LD)
20. When he plans to bring forward his proposals for a single-tier state pension.
The Minister of State, Department for Work and Pensions (Steve Webb)
I apologise to my hon. Friend for not giving her a chance to ask her question earlier on.
We will shortly bring forward a White Paper on the single-tier pension, as my right hon. Friend the Chancellor of the Exchequer announced.
Jo Swinson
I thank my hon. Friend for that reply. He and I have long campaigned for a citizen’s pension, to be paid at a decent level to all pensioners, without the need for bureaucratic means-testing and, of course, the problems that that creates, with many pensioners losing out. I welcome the plans for a single-tier pension from 2016. Will my hon. Friend confirm that, although the current proposals apply only to new pensions, there is nothing to stop a future extension to all pensioners if the money can be found?
Steve Webb
Obviously, we will not write the law in a way that prevents all pensioners from being brought within its scope, and I am sure my hon. Friend will press for that. We are aware that, under our proposals, getting on for more than 80%, and eventually 90%, of pensioners will qualify for the pension, so it will have many of the features of a citizen’s pension but be based on 30 years of contributions or credits.
Mr Speaker
Well, that exchange was worth waiting for, I am sure the House will agree. I thank both Members.
Topical Questions
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
In recent weeks we have published new figures on the incapacity benefit reassessment programme, so I thought it would be helpful to the House if I just reminded Members of the figures. Throughout Great Britain as a whole, some 37% of people have been found fit for work, with another 34% expected to be able to work in the future, with the right support. These figures show that the programme is working.
Tom Greatrex
Does any Minister think it appropriate that, while undertaking a contract on behalf of the Secretary of State’s Department, Atos Healthcare, first, published misleading information on its website; secondly, refused to comply with the Advertising Standards Authority inquiry into that information; and, thirdly, failed to correct it until alerted to do so by the media last week—several weeks after the compliance notice was issued? Do they think that that is acceptable for an agency working on behalf of the Government?
The Minister of State, Department for Work and Pensions (Chris Grayling)
We always discuss issues such as that one very carefully with our subcontractors, but I do not believe that it affects the professionalism of the health care professionals who are carrying out the work on our behalf. Many are doing a very difficult job in challenging circumstances—but doing the best for people who claim incapacity benefit and who could have a better future.
Simon Hughes (Bermondsey and Old Southwark) (LD)
Following earlier questions on pensions, will the Minister put on record the fact that the Budget and the Government’s decisions are the best news ever for pensioners now, as well as for pensioners in the future? The press and the Opposition appear to have somewhat missed the point.
The Minister of State, Department for Work and Pensions (Steve Webb)
My right hon. Friend is aware that, as Pensions Minister, I am responsible for people who are currently pensioners and for everyone who will be a pensioner, which is everybody, and we have good news for today’s pensioners: not only the highest-ever cash increase but, more than that, year-on-year above-inflation increases whenever earnings grow more rapidly—and, incidentally, an increase in the age-related personal allowance this April of more than £500.
Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
May I associate myself with the words of tribute to Lord Ashley, who was a formidable champion of the people whom we came into politics to serve? He will be sorely missed in both Houses, but his inspiration will live on.
Two years before the election, the Prime Minister gave the pensioners’ pledge:
“The Government I lead will make sure that older and retired people are treated with dignity and given the quality of life they deserve.”
Will the Secretary of State therefore confirm, as the Institute for Fiscal Studies has said, that pensioners will be £315 a year worse off, thanks to the granny tax?
Steve Webb
The changes announced by the Chancellor in the Budget will increase the age-related personal allowance this April by more than £500 and leave it at £10,500 for 65 to 74-year-olds while the allowance for those of working age is levelled up to that figure, at which point all people will have a substantial tax-free allowance that will be increased thereafter.
Mr Byrne
This is why pensioners on the doorstep are so cross—they know that they have been hoodwinked by the Government. This measure was dressed up in the Budget as a simplification. I think the Secretary of State detains his barbers for about as long as I do. Does he go along and ask for his hair to be “simplified”? I do not think so. A cut is a cut. On top of granny tax 1, we now learn of granny tax 2. Will the Minister admit that from 2014 pensioners will face a further cut of £900, and apologise for trying to keep it secret?
Steve Webb
I do not recognise the figures that the right hon. Gentleman quotes, but I assure him that what matters most to the pensioners to whom I speak is a decent state pension. After 30 years of the pension declining in value relative to earnings, from now on it will rise every year by whatever is the highest of earnings, prices or 2.5%. There will be a guaranteed increase every year that matches inflation or is above inflation. That is something that pensioners value.
Mr Mark Spencer (Sherwood) (Con)
T4. Does the Minister recognise that traditionally the Child Support Agency has targeted fathers who contribute willingly, rather than chase the more challenging maintenance evaders?
The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)
I understand that the current system feels unfair to many people. However, I reassure my hon. Friend that we do not target people in that way. We want to ensure that more people receive positive financial support. The tragic fact is that only half of children living in separated families currently have a positive financial arrangement in place.
Ann McKechin (Glasgow North) (Lab)
T2. The Scottish Trades Union Congress reported today that the number of young Scots who are in receipt of unemployment benefit for more than 12 months has increased by 1,100% since 2007. Will the Minister confirm that those 5,000-plus young people will not be abandoned? What guarantee will he give about how many of them will be in work by this time next year?
Chris Grayling
Once again, it is the same story from the Labour party and its supporters. Let us be clear that what has changed in long-term unemployment since we took office is that we no longer hide young unemployed people—or, indeed, older unemployed people—on a training allowance, which distorted the figures by as much as 30,000 each month. That is why long-term youth unemployment and unemployment appear to be rising. It has nothing to do with economic change and everything to do with how disingenuous the previous Government were.
Amber Rudd (Hastings and Rye) (Con)
T5. The Child Support Agency’s office for London and the south-east is in Hastings. It employs nearly 1,000 to do an often difficult and challenging job. When the Minister brings forward her reform plans, I ask her to ensure that this important service is not relocated, because a great deal of local expertise has been built up.
Maria Miller
I thank my hon. Friend for giving me the opportunity to pay tribute to the excellent work of the Child Support Agency staff in Hastings. I reassure her that the changes that we are planning will have a negligible effect on delivery staff.
Julie Hilling (Bolton West) (Lab)
T3. After the hard-fought and successful campaign to get the higher rate of the mobility component for blind and partially sighted people under disability living allowance, will the Minister reassure me that no blind people will be disadvantaged by the transition to the personal independence payment and that such people will continue to receive the higher rate of the mobility component?
Maria Miller
The hon. Lady will know that we are in the process of finalising the assessment criteria for the new personal independence payment. I am sure that she will be reassured to know that I have met a number of organisations that represent blind people. I remind her that with the personal independence payment, we are trying to recognise the barriers that people face to living an independent life, and not simply to categorise them based on their impairment.
Laura Sandys (South Thanet) (Con)
T9. I thank the Minister for agreeing to come to a jobs fair in Thanet in June. I am sure that he shares everybody else’s pleasure at seeing that there has been a small drop in youth unemployment. What more can I tell the young people of Thanet that we are doing to help them get the jobs that will be advertised at the jobs fair?
Chris Grayling
I am sure we were all pleased to see the small fall in youth unemployment announced last week, but there is a long way to go in tackling what is a big challenge for this country. I hope that the employers of Thanet will respond to the wage subsidies in the youth contract by giving young unemployed British people their first step on to the ladder of employment. That is what we all want to happen.
Grahame M. Morris (Easington) (Lab)
T6. We have heard a lot of talk from the Government about creating an information revolution in Whitehall, but with the Secretary of State’s Department leading a charge by outsourcing many of its responsibilities, will the same measures of transparency apply to private sector companies such as A4e and Atos as currently apply to public sector bodies?
Mr Duncan Smith
First, with respect to the hon. Gentleman, I do not think that this Government, or this Department under its current management, need to take any lessons from one of the most secret Governments in history. If he would like to look on our website, he will see that we publish a huge amount of data on all the contracts that we let, down to a very low level. He can find out more information now, as a direct result of what we do. Obviously, private contracts are for private people.
Miss Anne McIntosh (Thirsk and Malton) (Con)
Would the Minister like to clarify his earlier remarks about partially sighted people not being means-tested and judged on their savings but being awarded benefit on the basis of their need?
Chris Grayling
That is of course our approach right across ESA. We do not apply a one-size-fits-all approach. Those with the potential to return to work will receive help to do so, those who will be able to return to work in due course will get support and guidance along that journey, and those who cannot be expected to work will receive long-term unconditional support in the support group. That is absolutely how the Government should seek to work.
John McDonnell (Hayes and Harlington) (Lab)
T7. Members throughout the House, including Ministers, have emphasised the importance of the care that must be taken in dealing with people with mental health problems as they approach their medical and capability assessments, particularly if they lose benefits. Some anecdotal evidence is emerging of suicides taking place among people who have lost benefits. Have the Government explored any of the coroners’ reports of cases in which there has been a reference to the loss of benefits as a contributory factor, and what lessons have been learned?
Chris Grayling
We will always examine something like that very carefully indeed when it happens. So far, my experience is that the stories are usually much more complicated, but that does not mean we are not doing the right thing. I passionately believe that we should help such people, particularly those with mental health problems. I have met people who have been out of work for years and years with chronic depression, but whom we are now beginning to help back into work. We have to be careful, and we examine such situations carefully when they arise.
Jessica Lee (Erewash) (Con)
Will my hon. Friend join me in congratulating Erewash credit union on its participation in the back to work scheme? A young person I met on Friday who is participating in the scheme is extremely enthusiastic about their prospects and future and now feels ready for the next step back to work.
Steve Webb
I pay tribute to the credit union in my hon. Friend’s constituency. As she knows, the Department has given credit unions significant financial support. We have recently received a report on their future development and expansion, and we hope to bring forward proposals shortly to give them a greater role and an extended way of helping people on low incomes, through both finance and initiatives such as she describes.
Heidi Alexander (Lewisham East) (Lab)
Last Friday I attended Lewisham jobcentre and was told that between 1,800 and 2,000 people visit it every day. What extra resources are being provided to jobcentres in areas of acute unemployment to help people access work?
Chris Grayling
Most recently, we have increased the number of youth advisers so that we have additional support in places such as Lewisham to enhance our work to help unemployed young people get into work. I hope that those advisers will make a difference to young people’s prospects.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Is the number of people in receipt of out-of-work benefit higher or lower now than it was in May 2010?
Chris Grayling
I am very pleased to tell the House that since May 2010, the total number of people in this country on out-of-work benefits has fallen by 45,000.
Steve McCabe (Birmingham, Selly Oak) (Lab)
Is the Minister familiar with the recent freedom of information request that revealed that 1,100 employment support allowance claimants died between January and August last year after being assessed as fit for work? What steps is he taking to investigate this rather large number of deaths, and how come so many of those people were assessed as fit for work?
Chris Grayling
I am afraid that we cannot simply extrapolate one of those facts from the other. Sadly, we are all mortal, and circumstances arise that we do not expect. As I said to the hon. Member for Hayes and Harlington (John McDonnell), we always look very carefully at individual cases, but the Government are doing the right thing in trying to provide support to help people to get back into work. The worst thing for their health and well-being is for them to be on benefits for the rest of their lives if they do not need to be.
Mrs Helen Grant (Maidstone and The Weald) (Con)
What discussions has the Minister had with the Department for Communities and Local Government on council tenants starting a business in their homes?
Mr Duncan Smith
We discuss such matters at all times with the Department for Communities and Local Government. I promise my hon. Friend I will ensure that I raise that one.
May I take this opportunity to say to my opposite number, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), that I wish him the very best of luck if he heads off to be mayor? I have thought of a great slogan: “Byrne for Birmingham: not just 9 to 5, but also a ‘night mayor’.”