(1 day, 16 hours ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
The Minister for Employment (Alison McGovern)
The unemployment rate is 4.7%—well below the historic high of 11.9% in 1984—but no one should ever be complacent about unemployment, especially considering the significant jump in economic inactivity under the Tories. That is why I am pleased to tell the House that employment is up by 725,000, to 75.3%, since July 2024 and inactivity is down by more than the rise in unemployment—a reduction of 400,000.
Alison Griffiths
On the House of Commons dashboard, the data for my constituency shows that universal credit claims increased dramatically by 20% in just one month. Claimants increased by over 2,000—from 10,344 to 12,415—from May to June this year. Given this recent increase in economic inactivity, what evidence does the Minister have that the Government’s employment support programmes are successfully moving people from out-of-work benefits into sustained employment?
Alison McGovern
The Conservative Government unified in-work and out-of-work benefits, so universal credit is also an in-work benefit. As I mentioned some moments ago, the legacy of the Tories on economic inactivity is now seeing a welcome reversal, with economic inactivity down by 400,000.
Sarah Russell (Congleton) (Lab)
The Minister for Employment (Alison McGovern)
As my hon. Friend knows well, improved employment is at the heart of our approach to child poverty, and that is why reductions in economic inactivity and improvements in employment will be part of our child poverty strategy that is to be published very soon.
Tim Farron (Westmorland and Lonsdale) (LD)
Does the Minister accept that the Government’s increase in national insurance contributions has had a negative impact on employment in communities such as ours? Cumbria Tourism assesses that 37% of its businesses have cut staff as a consequence and 33% are freezing recruitment. Is it possible that the Government will get less from this tax rise than they expect, and that in doing this they are doing grave harm to the Cumbrian tourism economy and many other parts of our economy?
Alison McGovern
I speak to many businesses, and since coming into office, the Secretary of State and I have totally changed our approach with employers. That new approach includes a partnership with UK Hospitality, providing specific employment support to get into hospitality, and a hospitality passport so that people can evidence their qualifications, which we and UK Hospitality believe can help those people who really need a chance in life to get a good start in the hospitality sector.
Jessica Morden (Newport East) (Lab)
After visiting businesses in Newport East this summer, I know that there is a high demand for companies—including Thames Valley Construction, which I visited—to train more construction workers locally, and I was pleased to see the Government make the announcement in the summer on training 40,000 more people. Can Ministers tell me what conversations they are having with the Welsh Government on working together to do this?
Alison McGovern
We will not build the much-needed 1.5 million homes without bringing people into the construction sector. That is why, as part of our new approach for employers, we have partnered with the construction sector and set up specific schemes with them. We are also talking directly across Whitehall with other Government Departments and with the sector about moving people into great jobs in construction.
Helen Whately (Faversham and Mid Kent) (Con)
Thank you, Mr Speaker. It is good to see you back after the summer recess.
The hon. Lady can fling around the stats all she likes, but the facts are clear and bleak. Under her watch, youth unemployment has gone up; nearly a million young people, and rising, are not in work or education, including over 40,000 more young women. A generation of brilliant young people are going on to benefits, rather than into work. The Government’s jobs tax and their unemployment rights Bill were guaranteed to reduce opportunities for young people. We have had the winter fuel U-turn and the welfare U-turn; why not a U-turn to help young people?
Alison McGovern
The damage was done to the coming generation under the Tories. We failed the pandemic generation, who put a shift in—they stayed at home and gave up their social lives to save older loved ones. I could talk at length about our youth guarantee, our trailblazers and the work we are doing to expand youth hubs, but actually, it sticks in my craw to hear the Conservatives, who failed this generation, harp on about it from that Dispatch Box.
Joe Morris (Hexham) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
This Labour Government believe that every young person should be able to fulfil their potential. Unlike Conservative Members, we will not stand by while almost 1 million young people are not in education, employment or training. Our Get Britain Working trailblazer in the north-east is already helping young and neurodivergent people with supported work and training placements, including in Hexham. The local jobcentre is also working with Newcastle United Foundation to help young people build their confidence and develop their skills so that they and our country can look forward to a brighter future.
Joe Morris
For too long, previous Governments did not take into account the realities of life in communities across my constituency, which is incredibly sparsely populated and quite rural. The youth guarantee can and will make a considerable difference in communities all across it, from the Tyne Valley all the way out to the north Tyne and into Callerton and Throckley, too. Will the Secretary of State work with me to ensure that we continue to support young people in all those different, disparate communities to access the skills and opportunities they deserve?
Liz Kendall
My hon. Friend is right that people have different needs in different parts of the country. We need to tailor employment support to the needs of individuals, so alongside measures like our youth guarantee, we are overhauling our jobcentres to provide that more personalised support and introducing measures such as mobile jobcentres to provide better help in rural areas.
Michelle Scrogham (Barrow and Furness) (Lab)
Alison McGovern
Given the significant investment, the DWP has partnered with BAE and the nuclear sector to promote a variety of career pathways, including roles across its supply chains. We are also working within BAE’s new “The Bridge” hub in Barrow—a collaborative space offering employment advice and support from BAE Systems and a range of local employers and organisations to connect talent with locally based jobs. Further, in Barrow, our youth hub is run in partnership with Brathay Trust and Project John, supporting young people holistically to meet employers and develop their talents.
Michelle Scrogham
I have been impressed by the work being done in Drop Zone in my constituency. It runs a variety of projects for young people, including specialised education for those with additional needs, mental health support, and support for the transition back into education, employment and training. But young people in Barrow and Furness still face difficult challenges from a long legacy of underfunding. The youth trailblazer scheme is already making a difference in some constituencies after just a few months. Will the Minister meet me to discuss how we can tailor the scheme to specifically target young people in Barrow and Furness?
Alison McGovern
Barrow has unique circumstances, challenges and opportunities, and it is important that all parts of the Government address those unique opportunities and challenges in Barrow. I would be happy to meet my hon. Friend to further discuss what we are already doing and what more we can go on to do to ensure that young people in Barrow have the best possible chance in life.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The Minister for Social Security and Disability (Sir Stephen Timms)
The Office for Budget Responsibility forecast in March that incapacity and disability benefits spending would be £90.7 billion in 2029-30. That figure will be updated at the Budget. Better employment support and removing perverse work incentives in universal credit are the key to getting more people into work.
John Lamont
Just two months ago, the Secretary of State was left humiliated after being forced to significantly water down her botched welfare Bill. If the Government had pressed ahead with the Bill as originally drafted, how much less would taxpayers be spending on benefits by 2030?
Sir Stephen Timms
As I have said, the OBR will update its forecast at the time of the Budget. We inherited a terrible situation, with record numbers of economically inactive people. Economic inactivity is down since the election, and employment is up. Those developments have been encouraging, but our reforms will go much further. The £3.8 billion that we are investing in employment support for people out of work on health and disability grounds—the biggest package ever—will be key.
Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)
Does the Minister agree that we must invest in community mental health services if we are to reduce spending on mental health disability?
Sir Stephen Timms
I very much welcome the NHS 10-year plan published by our right hon. Friend the Health Secretary, which gives a new priority and commitment to mental health support. I agree with my hon. Friend that that is an important part of tackling the problems that we need to resolve.
Danny Kruger (East Wiltshire) (Con)
It is good to see the Minister back after the break, but I am sorry to hear that there are still no plans to reduce spending on personal independence payments. He has said that he is collaborating with people who would not be working with him on his review if there were to be any reductions in the levels of benefit or eligibility. Given that veto on cuts to PIP, I implore him again to consider the benefits to which PIP is a gateway, such as Motability, disability premiums, council tax discounts and blue badges. Will he promise at least that those entitlements could come down?
Sir Stephen Timms
We have made it clear that we will co-produce our review of the PIP assessment with disabled people and representatives of disability organisations. The review will cover the assessment for the mobility component, which leads on to the Motability scheme, and other entitlements to which PIP is a gateway.
Danny Kruger
But with no possibility of any of those entitlements coming down or any of the spending being reduced? We have 1.25 million foreign nationals claiming universal credit, most of whom are not in employment. I hope that the Minister does not plan to co-produce his plans with foreign nationals—although, knowing Labour lawyers, I expect they will say that the European convention on human rights demands that they do just that. Does he think that subsidising more and more foreign nationals is what the British social security system is for? If not, will he restrict sickness benefits to British nationals only, as we have argued for?
Sir Stephen Timms
It is crucial that we have a fair system. We are reviewing universal credit at the moment, considering problems such as the five-week wait that was inserted when universal credit was introduced and changes to ensure that universal credit effectively tackles poverty and does the job that we need it to do. Fairness will be at the heart of the system.
Natasha Irons (Croydon East) (Lab)
The Minister for Employment (Alison McGovern)
In Croydon East, young people aged 18 to 21 will be helped by the youth guarantee trailblazer being delivered by the Greater London Authority. It will strengthen early identification and outreach to engage young Londoners who are not, or risk not being, in employment, education or training, by linking them to enhanced support, employment and education opportunities and the essential services that they need. I am glad that the DWP will continue to support communities in Croydon East by hosting an information stall at my hon. Friend’s upcoming advice fair in New Addington.
Natasha Irons
Croydon is London’s youngest borough. Given that 6.6% of people aged 16 to 24 in my Croydon East constituency claim out-of-work benefits, supporting young people into work, and breaking down barriers to opportunity, is vital. Will the Minister give a little more detail about the additional funding for the London youth guarantee trailblazers, and will she outline how that will help Croydon’s young people into work? I look forward to having the DWP with us in New Addington.
Alison McGovern
I will pass on my hon. Friend’s comments to my colleagues in Croydon, who are keen to work with her and the other MPs there. In the summer, the Secretary of State announced further funding of £45 million for our eight youth guarantee trailblazers. That will ensure that in London, as in the rest of the country, our young people get the choices and chances that they deserve.
John Cooper (Dumfries and Galloway) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
The Government have committed to significant measures to counter welfare fraud, error and debt. This is the biggest package of such measures in recent history, and the Office for Budget Responsibility has estimated that it will deliver an additional £9.6 billion of savings over the next five years. The package is underpinned by our Public Authorities (Fraud, Error and Recovery) Bill, which contains a range of new powers to enable us to keep pace with offenders who exploit the social security system.
John Cooper
I think we can all agree that fraud strikes at the heart of the system, kicking away its underpinnings. I hope that the Government will undertake a zero-tolerance approach, unlike in Scotland, where we recently heard that £36 million of benefit money paid out in error is now not to be recovered. Does the Minister agree that that is deeply unfair to taxpayers?
Andrew Western
The hon. Gentleman tempts me to encroach on what are legitimately policy questions for the Scottish Government. The policy of this Government is clear and set out in the Bill, but I am grateful to the Cabinet Secretary for Social Justice for continuing to work with me constructively to make the Bill as workable as possible, with alignment where possible, such that if we end up diverging we are still able to ensure that this Parliament does everything it can, and the Scottish Government do everything they choose to do, to bear down on fraud and error.
Chris Kane (Stirling and Strathallan) (Lab)
Does the Minister share my surprise that a Member of the party responsible for more than a decade of rising poverty, record benefit delays, and billions lost to fraud and error is now suddenly concerned about tackling that? Across the House, while we recognise the need to tackle fraud in our welfare system, we should also recognise the huge issue with tax avoidance and evasion—as recently highlighted by the Public Accounts Committee—which requires significant attention.
Andrew Western
I very much agree with my hon. Friend. This Government are determined to bear down on tax evasion with 5,000 additional investigators. Wherever we see people ripping off the public purse, whether that is defrauding the Department for Work and Pensions or abusing the tax system, we are determined to bear down on them, and that is what we will do.
Anna Sabine (Frome and East Somerset) (LD)
The Minister for Social Security and Disability (Sir Stephen Timms)
The PIP application process is outdated and can be very difficult to navigate. The health transformation programme will deliver radical improvements and much better efficiency.
Anna Sabine
In my constituency, I was contacted by a woman who had suffered two strokes, resulting in permanent right-side paralysis and ongoing mobility difficulties. Despite her condition being permanent, she has had to undergo reassessment for PIP and has appealed for it to be reinstated. I welcome the Government changing the reassessment requirement for people with long-term health conditions. Will the Minister clarify what steps the Government are taking to reduce the stress and difficulty of the PIP application process for people with those serious health conditions?
Sir Stephen Timms
The health transformation programme that I mentioned will allow the introduction of a modern digital service, which is certainly not how the existing arrangements could be characterised. It is a big job—the programme will run until 2029—but the outcome from it will be a process that is simpler and easier to understand, which I hope will reduce the stress to which the hon. Member has rightly drawn attention, and shorten decision times.
Rachael Maskell (York Central) (Ind)
Over the summer, I have been doing a deep dive into children with special educational needs and disabilities, not least the transition points between education and work. As part of the Timms review—the Minister’s own review—will he ensure that that interface is looked at, so that there is a smooth transition for young people, as opposed to the cliff edges that many of them face when making the transition into work?
Sir Stephen Timms
The review will look specifically at the PIP assessment, but one proposal in our Green Paper published earlier this year was increasing the age of transition from DLA to PIP from 16 to 18. I think that that change could assist with the concern expressed by my hon. Friend. We are looking at the consultation responses that we have received.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
The Secretary of State for Work and Pensions (Liz Kendall)
We are determined to drive down child poverty in the hon. Gentleman’s constituency and right across Scotland and the rest of the UK. Our child poverty strategy will look at every lever at our disposal to drive up family incomes, to drive down family costs and to give every child the best start in life. I discuss such issues regularly with the Chancellor and Ministers across Government, because we will leave no stone unturned to ensure that every child can fulfil their potential—they deserve it and our country needs it.
Graham Leadbitter
Two million pensioners in the UK are in poverty, and the British state pension is among the worst in north-west Europe. During the independence referendum, Better Together claimed that our pensions are more affordable when Scotland is part of the UK. Eleven years on, will the Minister tell me exactly what the Union is doing for Scottish pensioners, other than impoverishing them?
Liz Kendall
Investing an additional £31 billion in the triple lock over this Parliament is delivering huge benefits to pensioners in Scotland, as are our measures to drive up the uptake of pension credit in order to help the very poorest pensioners; our measures to stabilise the economy; and our investment in the NHS, on which many pensioners rely. I am proud of the action that we are taking. Given that this Government have agreed and are giving Scotland its biggest ever funding settlement, the hon. Gentleman should ask some challenging questions of his Government, to ensure that they deliver for Scotland’s pensioners, too.
Baggy Shanker (Derby South) (Lab/Co-op)
Last year, a staggering one in four kids in Derby lived in poverty. Our local charities, such as the Derby Food 4 Thought Alliance, do amazing work; last year, they handed out 20,000 food parcels. Will the Secretary of State ensure that the upcoming child poverty strategy addresses the root causes of child food poverty, so that parents are not left struggling to put tea on the table?
Liz Kendall
I understand very well the issue that my hon. Friend raises. As a former chair of Feeding Leicester, the programme to end hunger in my city, I see only too clearly the links between poverty and dependence on emergency food parcels. I am very proud that we have already slashed deductions in universal credit and extended the crisis and resilience fund, providing it with its first three-year funding settlement. There is much more to do. We want to make sure that children have hungry minds, not hungry bellies, and we are determined to deliver that.
Mr Peter Bedford (Mid Leicestershire) (Con)
The best way to reduce poverty is for people to be in work, but as a result of this Government’s damaging economic policies, we have seen youth unemployment rise by 6% since the general election. What representations will the Secretary of State make to the Chancellor ahead of the Budget to ensure that more damage is not done?
Liz Kendall
The Labour party believes that everybody who can work must work. The hon. Gentleman should look at his own party’s record: progress on the disability employment gap and the lone parent employment rate stalled under its watch, and economic inactivity rose. We are the only country in the G7 whose employment rate has not got back to pre-pandemic levels. We are overhauling our employment system to help more people into work, and to get on in work. I am proud of our record; maybe he should look at his own.
Neil Duncan-Jordan (Poole) (Ind)
Tackling poverty should be a key priority of any Government who wish to see their people thrive. The Equality Act 2010 includes a socioeconomic duty on all public bodies to address inequalities “when making strategic decisions”. When will that duty be enacted in England?
Liz Kendall
My hon. Friend raises a really important point. Throughout its work, the DWP is already looking at how to narrow the gaps between different parts of the country and different groups of people. We have set our jobcentres and employment systems new targets for reducing those gaps, and we are taking cross-Government action to tackle child poverty. We have achieved a lot. There is a lot more to do, but this Government, unlike Opposition Members, have made tackling poverty an absolute priority. Our child poverty strategy is coming out in the autumn, so I ask hon. Members to watch this space.
Sarah Bool (South Northamptonshire) (Con)
The Minister for Employment (Alison McGovern)
The latest provisional statistics, taken from Stat-Xplore, show that in July 2025, there were 768,000 people aged 16 to 24 on universal credit. About a quarter of those young people—around 180,000—are on universal credit and in work.
Sarah Bool
According to the Library, in my constituency, the claimant count among those aged 16 to 24 has risen by 46%; that is one of the largest percentage increases in the country. Conservative Members know that the Government have a moral duty not to let our young people learn that a life of benefits is the life for them, so how does the Minister explain that increase? What will she do?
Alison McGovern
I must remind Conservative Members again that it was their party that introduced universal credit, removing the distinction between out-of-work benefits and in-work benefits. For three quarters of young people who are out of work and on universal credit, our guarantee for young people will make sure that they get a second chance in life, after they were utterly failed during the pandemic by the Conservative party.
Sarah Hall (Warrington South) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
The Department continues to provide a broad range of data to local authorities to enable fast, accurate assessments for services, including blue badges and free school meals. Looking ahead, the Department is committed to expanding real-time data sharing in critical areas, such as housing benefit and care homes, while also testing innovative models such as the WorkWell scheme, which bring together local and central services to deliver more joined-up support for citizens.
Sarah Hall
In Warrington South, too many children entitled to free school meals are missing out because of avoidable administrative barriers. No child should have to sit in a classroom hungry; every child deserves a full stomach and a fair chance. A simple change would make a big difference and ensure that every eligible child got the support that they are entitled to. It would ease pressure on families, help to reduce child poverty, and give schools confidence that pupils are ready to learn. Will the Minister commit to strengthening data sharing with not only local authorities, but the Department for Education, so that automatic enrolment for free school meals can be introduced?
Andrew Western
My hon. Friend is entirely right to raise this issue. We will look at that, working closely with the Department for Education, as part of the child poverty strategy. We of course share her ambition to ensure that families can claim the support that they need. Our expansion of free school meals to all children in households claiming universal credit will make it much easier for parents to know if they are eligible, as well as lifting some 100,000 children out of poverty.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his reply; as always, he is very positive in his responses. He referred to the anti-poverty strategy. What discussions has he had about the anti-poverty strategy for us in Northern Ireland? Levels of poverty and mental health issues have risen dramatically, and young people in particular are under great pressure. The Minister is always compassionate and understanding; what is he doing in relation to the Northern Ireland Assembly to make things better for us as well?
Andrew Western
The hon. Gentleman will understand that we want this strategy to be for England, Wales, Scotland and, of course, Northern Ireland. He will be reassured to learn that those leading on the child poverty strategy have held a number of meetings with Ministers in Northern Ireland to ensure that its specific needs are taken into consideration.
Damien Egan (Bristol North East) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
One in eight young people are not in education, employment or training. That is bad for them, bad for businesses and bad for our country as a whole. Our west of England youth guarantee trailblazer, which covers my hon. Friend’s constituency, is helping to remove barriers to work for young people, including by providing free bus travel for participants and connecting young people with skills support. Last month, I announced an additional £45 million to extend our youth guarantee trailblazers, so that we can guarantee that all young people are earning or learning.
Damien Egan
That is fantastic to hear. Will the Secretary of State set out the practical impact of the west of England youth guarantee trailblazer so far? Assuming that it is positive, will she confirm plans to back it up with more investment, in order to support our young people in the Bristol area?
Liz Kendall
I am really proud of the work being led in the west of England—including by our fantastic Mayor, Helen Godwin—to help more young people. The trailblazer is engaging much more deeply with employers—it has engaged over 135 of them. It is helping to enrol young people on employability courses and giving them more work placements, giving them the skills and experience they need. As my hon. Friend knows, young people say that they need a job to gain experience, but in order to get the job, they need that experience. We are trying to turn that around. We have announced additional funding of up to another £5 million for that west of England youth guarantee trailblazer. A lot has been done, but there is a lot more to do.
Christine Jardine (Edinburgh West) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)
The Government are committed to ensuring that all pensioners receive the support to which they are entitled. That is why we have been running the biggest ever pension credit take-up campaign. We plan to continue promotional activity from September through to the end of this financial year, with the focus not just on eligible pensioners but on their friends and family too.
Christine Jardine
Earlier this year, a constituent of mine in Edinburgh West contacted me about the delay she had faced in getting the pension credit she was entitled to. She applied in September last year and was told that she would receive it in November, but it was March before she got her pension credit awarded. The delay meant that she went without extra support just when she lost her winter fuel allowance, so what steps will the Minister take to cut those delays and stop more vulnerable pensioners from being left cold this winter?
Torsten Bell
I hope the hon. Member will write to me with the details of the case she raised. On the more general picture, I can reassure her that we now have a lower backlog of pension credit cases to be processed than we inherited from the last Government, despite the record number of claims that have come through.
Juliet Campbell (Broxtowe) (Lab)
Boots has been a significant employer in my constituency since 1927, and many of my constituents have been proud to work for it. However, those close to claiming their pensions have been advised that they will be unable to withdraw their pension at an unreduced rate at the age of 60, contrary to what they were led to believe. Does the Minister recognise the frustration that many of the Boots pensioners feel, and does he agree that the Pensions Ombudsman should progress swiftly with its process?
Torsten Bell
My hon. Friend has raised this matter with me before, and the one thing I can confirm is that she is a powerful advocate for her constituents on this very important issue for them. As she knows, I cannot comment on individual cases—particularly as the matter is now with the Pensions Ombudsman—but more generally, it is important that promises made to pensioners about their pensions are lived up to. Making sure that happens is exactly why the Pensions Ombudsman exists.
Mark Garnier (Wyre Forest) (Con)
Thanks to our Conservative winter fuel payments campaign, thousands of pensioners have signed up to pension credit, and millions more pensioners will receive winter fuel allowance, now that the Labour party has admitted that its policy on winter fuel payments was wrong. However, the Social Security Advisory Committee recently concluded that the Government’s winter fuel plans fall short of delivering their objectives of fairness, administrative simplicity and targeted support. It seems that the Government have prioritised civil service bureaucracy over helping frozen pensioners. Does the Minister agree with the Social Security Advisory Committee’s conclusion about their policies?
Torsten Bell
I thank the hon. Member for his question, and I congratulate Members on all sides of this House who have run campaigns to drive up pension credit uptake. That is very important, and it is why we have seen 60,000 extra awards over the course of the year to July 2025 compared with the previous year. That work, which is very welcome, has been done by not just Members but civil society organisations and local authorities.
On the points that the hon. Member raised about the process for winter fuel payments this winter and going forward, I do not agree with the characterisation he chose to present. Particularly on the tax side, the process will be automatic. Nobody will be brought into tax or self-assessment purely because of that change; the vast majority of people will have their winter fuel payments automatically recouped through the pay-as-you-earn system; and anyone who wants to can opt out. I remind Members that the deadline for that is 15 September.
Steve Darling (Torbay) (LD)
Around a year ago, the Labour Government inherited from the previous Conservative Government around 3 million pensioners in poverty. Sadly, last winter’s cuts to the winter fuel payment saw many pensioners pushed into hardship. In the light of winter fuel price hikes, will the Minister reconsider the Government’s proposals and ensure that moneys are paid to pensioners who missed out on the winter fuel payment last winter?
Torsten Bell
I thank the hon. Member for his question, but would gently say that every time he opposes every single tax rise or any difficult choice in this House, he is saying that the Liberal Democrats are not a party that could deliver on commitments, for example, to the triple lock, which will increase in cost, as my right hon. Friend the Secretary of State mentioned earlier, by £31 billion by the end of this Parliament. There are things called “choices”, which are necessary if we are to provide for our top priorities—and for Labour Members, the top priorities, when it comes to pensioners, are making sure that we can increase the state pension, the bedrock of most pensioners’ living standards, and saving the NHS, and that is exactly what we will continue to do.
Edward Morello (West Dorset) (LD)
The Minister for Social Security and Disability (Sir Stephen Timms)
We will increase the number of face-to-face, rather than remote, PIP assessments, and will increase the number of health professionals in assessment centres in order to deliver that. I think the hon. Gentleman will agree, however, that it is important to keep telephone or video alternatives for those who need them.
Edward Morello
Many West Dorset constituents have written to me with deep anxiety about the assessment for personal independence payments, and especially the use of remote assessments. One constituent, despite previously being awarded enhanced PIP, has endured months of repeated phone assessments, which have triggered severe panic attacks and high blood pressure, and caused lasting psychological harm. The Secretary of State has given me a commitment to moving away from phone-based assessments, so what additional resources will be made available to support the roll-out of more face-to-face assessments in West Dorset?
Sir Stephen Timms
There was a switch to remote assessments in the pandemic, for obvious reasons, but my right hon. Friend the Secretary of State has made the point repeatedly that, as was said in the “Pathways to Work” Green Paper, we want to move sharply back to face-to-face, while keeping alternatives for those who need them. I am sure the hon. Gentleman will have spoken to people for whom the prospect of going to an assessment centre provokes the kind of anxiety that his constituent experienced as a result of a telephone call. We are speaking to the assessment providers, and we have already increased the proportion of face-to-face assessments. That work will continue.
Mr Bayo Alaba (Southend East and Rochford) (Lab)
David Burton-Sampson (Southend West and Leigh) (Lab)
The Minister for Employment (Alison McGovern)
With permission, I will answer these questions together, as they are both about the great city of Southend.
Colleagues in Southend jobcentre are working very hard with Southend young people to help them gain skills, experience and confidence. The team have launched a bespoke employability workshop designed for young people, and recently delivered a regional work experience pilot for college students. They also work with our great partners, such as the King’s Trust and FirstPoint Training, to provide placements and opportunities, and there is also the employer-led Movement to Work programme.
Mr Alaba
Young people across the UK who are not in education, employment or training are more than twice as likely to come from disadvantaged backgrounds. What steps is the Minister taking to ensure that support reaches those who need it most?
Alison McGovern
The Secretary of State mentioned some moments ago that in everything we do in the Department for Work and Pensions, we are trying to close the gap between those who have suffered disadvantage and those who have not. Young people, especially those who have experienced poverty, are vulnerable to mental ill health, and the pandemic generation deserve more support to get chances that they have missed. That is why we have a joint work and health unit with the Department of Health and Social Care. We also have many agreements across Whitehall relating to our net zero mission, as well as our investment in defence, to help employers recruit the next generation, whatever their background.
David Burton-Sampson
In Southend West and Leigh, I will soon host a youth day, featuring local star of “The Apprentice” Chisola Chitambala, who is now an apprenticeship coach, among other things. Does the Minister agree that early interventions, like this youth day, are really important to prevent young people from becoming another NEET statistic?
Alison McGovern
I agree with my hon. Friend, and congratulate him on his youth day and the work he is doing on this kind of early intervention. The data clearly show that if people get qualifications, some work experience, and support for their health and support with other factors in life, that is very protective against being without work, education or training. We have to give a second chance to those who need one, and take steps to prevent people from being in that situation in the first place.
Jo Platt (Leigh and Atherton) (Lab/Co-op)
The Secretary of State for Work and Pensions (Liz Kendall)
It is a shameful legacy from the Conservatives that more than a third of children in my hon. Friend’s constituency are living in poverty according to the Child Poverty Action Group, and we are determined to tackle that. We will be lifting more than 100,000 children out of poverty by providing free school meals to all children whose families are on universal credit, benefiting more than 7,300 children in Leigh and Atherton. We will also be helping to feed them during the summer holidays by extending the holiday activities and food programme, alongside our fair repayment rate in universal credit and our crisis and resilience fund. We are helping struggling families. There is much more we will do in our child poverty strategy this autumn, but we can and we are making a difference.
Jo Platt
I thank the Secretary of State wholeheartedly for that response, and I agree with her. Because of the lack of action from the last Government, 26.6% of children in Leigh and Atherton are living in poverty. I welcome the measures that this Government are taking, including the extension of free school meals, but more needs to be done. Can she reassure us that she is working hard on the child poverty strategy to ensure that it addresses the needs of all children in poverty, including those with disabilities and special educational needs, so that every child can reach their full potential?
Liz Kendall
We will absolutely do that. The child poverty taskforce, which includes Ministers from across Government, had a specific session on children with disabilities and special educational needs, including with families and the charities that fight so hard to deliver improvements. I am not a patient person, but I ask my hon. Friend to wait until the child poverty strategy is published in the autumn, because we believe that every child—no matter where they are born or their ability or what their parents did—must be given an equal start in life.
Will Stone (Swindon North) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
This Government are determined to get Britain working again. That is why we are investing £80 million in our trailblazer programmes to drive down economic inactivity. We are overhauling our job centres to provide better, more personalised employment support. We are delivering a youth guarantee, so that every young person is earning or learning, and we are providing a record £3.8 billion to help sick and disabled people who can work to get into work. There is much further to go, but we are already making a difference.
Will Stone
I thank the Secretary of State for that response. A lot of disabled people in Swindon with long-term health conditions tell me that they want to get to work, but are just simply not given the opportunity. What are this Government doing to support those people to get dignified work?
Liz Kendall
I thank my hon. Friend for his question, because he raises an important point that I do not want to let go, which is how many people with a long-term health condition or a disability are desperate to work. Our own survey of people on sickness and disability benefits found that 200,000 people would work right now if they were given an opportunity. We need to give people help to tackle their underlying health conditions, which we are doing through our investment in the NHS. We need to encourage employers to do more to give opportunities to disabled people to work. Above all, this Government are determined to meet our responsibilities, with £3.8 billion invested into employment support for sick and disabled people—the biggest amount in a generation. I look forward to working with him and organisations in Swindon to make sure we get that support right locally.
Sir Ashley Fox (Bridgwater) (Con)
Does the Secretary of State accept that the reason that unemployment is higher today than the day she took office is the jobs tax, which increases employers’ costs by £25 billion? What hope does her trailblazer programme have when the Chancellor is working against her?
Liz Kendall
I fundamentally disagree with the hon. Gentleman’s premise. Economic inactivity is down by 400,000 because we are moving more people from being out of work and not looking for work to starting to have to look for work. Employment is up by 725,000. We have created 380,000 jobs. I know there is more we need to do. We are working very closely with employers. We are overhauling what we are doing. One of the things that employers say to us is, “We do not want to tell our story to thousands of different job centres.” We are putting in a single account manager and we are overhauling our support for employers. I would be happy to meet him and employers in his constituency to see what more we can do to support them, because we want to get Britain working and earning again.
Chris Vince (Harlow) (Lab/Co-op)
The Secretary of State for Work and Pensions (Liz Kendall)
Let me start by congratulating all the pupils who have received their exam results over the last few weeks. Having good qualifications is essential in today’s economy, and it is brilliant to see so many young people doing so well. However, the number of young people not in education, employment or training is one of the biggest challenges facing the country, and young people are much more likely to be NEETs if they lack basic skills. That is why I am so proud of the action that the Government are taking to increase the number of youth apprenticeships, overhaul foundation apprenticeships and, above all, introduce a youth guarantee so that every young person is earning or learning.
Chris Vince
I hope you had a lovely recess, Mr Speaker.
Harlow is full of fantastic schools, and I see the potential of young people there every single day, but that potential is often overlooked because of economic circumstances. Will the Secretary of State explain how the new crisis and resilience fund will support the poorest children in Harlow?
Liz Kendall
In the spending review we announced this first ever multi-year settlement for local support, replacing the household support fund. The crisis and resilience fund will provide £1 billion every single year, and will give families emergency help if, for example, their white goods break down or they need food urgently. However, we want to start shifting it increasingly towards tackling the root causes of poverty, helping people to become more financially resilient through the provision of debt advice. We recently held a meeting with more than 600 stakeholders to discuss how we could achieve that shift, because we want to prevent people from falling into poverty and to give them the tools that they need to emerge from poverty themselves.
Helen Whately (Faversham and Mid Kent) (Con)
I welcome the right hon. Lady back after the summer. She said recently that it had been “a bumpy…few months”—an understatement, in my view. Last time we stood here, she had just completed a rather humiliating climbdown on her welfare savings plans. She set out to save money, but ended up spending it. You couldn’t make it up, Mr Speaker, but here we are: the number of benefit claimants has hit a record high; the sickness benefit bill is heading up and up; and still the right hon. Lady has Back Benchers and Cabinet colleagues calling for even more spending on welfare. The Chancellor is busy doing her sums in advance of the Budget, so can the right hon. Lady tell us how much lifting the two-child benefits cap will cost?
Liz Kendall
I am not often called understated, but I thank the hon. Lady for her comments.
Welfare reform is always difficult because it involves real people and real lives, and it is a complicated and personal issue. However, we are investing £3.8 billion in employment support to help sick and disabled people into work, we are introducing the first ever right to try work, and we are dealing fundamentally with the perverse incentive left by the Conservative party which encouraged people to define themselves as incapable of work. We are addressing that by raising the standard allowance of universal credit and halving the health top-up for new claims. There is much more that we need to do, and we will be publishing our strategy to deal with child poverty in the autumn, but I am proud to say that the last Labour Government lifted 600,000 children out of poverty, while the hon. Lady’s party plunged 900,000 children into poverty. We will take action, and, as I said earlier, the hon. Lady should watch this space.
Helen Whately
I asked the right hon. Lady a simple question, but I fear that she does not know the answer; she certainly did not reply to it. What is clear is that Labour wants to spend more on welfare. So do the Liberal Democrats, and so does Reform. Only one party here is telling the truth about the welfare bill: the country cannot afford it.
May I urge the right hon. Lady to take up my proposals? Will she stop giving people benefits for common mental health problems such as anxiety and attention deficit hyperactivity disorder, and give them help instead? Will she stop giving personal independence payments to foreign citizens who have not paid into our system and free cars to people who do not need them? Will she stop people scamming the benefits system over the phone and on the internet? Will she keep the two-child benefits cap, and get the benefits bill under control?
Mr Speaker
Order. Can I just say that we are on topicals? It is your own Members who are not going to get in.
Liz Kendall
The Conservative party failed on welfare because it failed on work. The reason why we inherited such a dire situation with sickness and disability benefits is that the Conservatives failed to get people into work. We are turning that around, and it is about time the hon. Lady and Opposition Members put forward a proper plan of action that actually gets people into work. We believe in work; it is a pity the Conservative party does not.
Perran Moon (Camborne and Redruth) (Lab)
The Minister for Employment (Alison McGovern)
Yes, that is exactly how we are working, and I thank my hon. Friend for his question. Our “Get Britain Working” plan identified Cornwall as a rural industrial legacy employment area, and we specifically pointed out the lack of connectivity. That is why, when it comes to our new jobcentres service, we are also trialling jobcentres on wheels: buses that can take support to where people are and which are designed for rural areas. They recently featured on “The One Show”.
Steve Darling (Torbay) (LD)
The Government are right to want to see more people with disabilities and long-term sickness get into work. Sadly, this was used to justify the savage cuts to benefits that were proposed earlier this year. My colleagues and I are hearing reports of cuts to current awards through Access to Work, and to new payments, being done by the back door. Can the Minister cast any light on whether guidance has been given to civil servants on such cuts?
The Minister for Social Security and Disability (Sir Stephen Timms)
There has been no change at all to policy on Access to Work. As the hon. Member knows, we did consult, in the Green Paper earlier in the year, on reform to Access to Work. There has been a big increase in demand for it, and reform is needed. We are looking at the consultation responses at the moment. There may have been instances in the past where the published guidance was not always properly applied. It is being applied now, and that may give rise to some of the issues that have been drawn to his attention, but there has been no change at all in the policy.
Jim Dickson (Dartford) (Lab)
Liz Kendall
We want to give people like Charlie the chances and choices in life that he deserves. Our Connect to Work programme will do everything from helping people access health treatment to providing work placements and building their confidence through training, skills—whatever meets their individual needs. That is the key to this: an end to a one-size-fits-all tick-box approach, and tailored support for him. We are also working closely with employers so that they remove the barriers to work and can employ people with all the skills and talent that people like Charlie have.
Sarah Bool (South Northamptonshire) (Con)
The Parliamentary Secretary to the Treasury (Torsten Bell)
The hon. Lady only had to wait till next week’s Treasury questions, when she could have asked her question, but she has the same answer. What we should do is look at the record of parties and what they have done. When I look back over the last 14 years of Tory Budgets, I see a party—[Interruption.] And the Lib Dems; thank you for pointing that out. I have seen parties chopping and changing pension tax relief left, right and centre, because they had no plan. Those were the same Budgets that drove child poverty up and wages down.
Mr Luke Charters (York Outer) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
I congratulate my hon. Friend on the recent addition to his family. I hope he had a restful summer, although I doubt he did considering the likely lack of sleep. He is right to raise this issue. It is now past the date for the call for evidence, but if he wants to write to me directly about that issue, I will ensure it is fed in.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Torsten Bell
I thank the hon. Member for his question. We discussed this issue at some length in the statement before the recess. He knows that the priority for the Labour party has been to raise the state pension by committing to the triple lock throughout this Parliament at a cost of £31 billion a year. For the new state pension, that will mean an increase of £1,900 a year by the end of this Parliament.
On winter fuel payments specifically—and I thought this was the Conservative party’s position—most people think that we should not be paying hundreds of pounds to the very richest pensioners. We have listened to concerns and raised the threshold, but it is important to maintain that principle. If the Conservatives’ position is now that they want a return to universal winter fuel payments, they need to have a word with the Leader of the Opposition, who has not supported universal winter fuel payments or, indeed, a universal state pension.
John Slinger (Rugby) (Lab)
Alison McGovern
I thank my hon. Friend for his question. I am glad he is visiting Rugby jobcentre, and I encourage all Members across the House to go to their local jobcentres, because their work coaches have the most experience and knowledge about what we need to do to get people into work. We are creating “jobcentre in your pocket”, so that everyone can have access to help 24 hours a day. Letting technology take the strain will mean that our work coaches can do more of what they do best, which is giving people—person to person—the confidence to take up life’s chances.
John Glen (Salisbury) (Con)
Sir Stephen Timms
We have set up a panel of experts to advise us on how best to improve employment prospects for people with autism and neurodivergence. As the right hon. Member knows, we will be undertaking a review of the PIP assessment, co-producing it with disabled people, so that we have a clear way forward for who should and who should not be entitled to the personal independence payment.
Peter Swallow (Bracknell) (Lab)
Torsten Bell
I thank my hon. Friend for his crucial question. That is exactly why we have revived the landmark pensions commission. We have to confront the reality that we are on track for tomorrow’s pensioners to be poorer than today’s. Auto-enrolment has been a huge success, with 88% of eligible employees now saving, but 45% of working-age adults, including 3 million self-employed and one in four low earners, are currently saving nothing. The commission will ensure that we build a pension system that is strong, fair and sustainable.
Alison Bennett (Mid Sussex) (LD)
The carer’s allowance overpayments review was due to report in early summer. It is now 1 September. In recent weeks, I have become aware of a case where the DWP has informed somebody that they now owe it £18,000. That is a scandal. When will the review report back?
Sir Stephen Timms
We have received the report from Liz Sayce, and I want to thank her very much for her review of earnings-related overpayments of carer’s allowance. We are currently considering the findings. We are, as the hon. Lady knows, making a number of changes. We have increased the earnings threshold for carer’s allowance in a way that I think will help avoid these problems in the future. We are looking at the possibility of a taper on carer’s allowance. We will come forward, before very long at all, with both the report and the Government’s response to it.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
As someone who proudly served the trade union movement for two decades before entering this place, I warmly welcome the Government’s improvement to workers’ rights. Will the Minister set out what steps are being taken to ensure that no one is left behind in the vital reforms to statutory sick pay?
Alison McGovern
I know that so many of my hon. Friends will, like her, welcome the changes we are making to statutory sick pay, which will improve eligibility for 1.3 million of the lowest-paid employees and remove the waiting period. Many of those who will benefit are low-paid women. The removal of the waiting period will mean that all employees receive at least £60 more at the start of their sickness absence compared to the current system, but we will continue to evaluate the measures as they are implemented.
Kirsty Blackman (Aberdeen North) (SNP)
Scotland is the only part of these islands where child poverty is falling, as a result of the Scottish child payment and the mitigation of the bedroom cap. When will the Labour Government move from empty words to actual action to take children out of poverty?
Liz Kendall
We are already extending free school meals to all families on universal credit. We have extended the holiday activities and food programme, so that we feed poor kids not just during school but in the holidays, too. We have introduced a new fair repayment rate in universal credit. We have made the first ever multi-year settlement for the crisis and resilience fund to help struggling families. We are introducing and rolling out breakfast clubs. Our child poverty strategy will be published in the autumn. We are already taking action to tackle poverty and we will do more. I say to the hon. Lady that the Scottish Government need to look at how they are spending the biggest ever funding settlement, given in the spending review, including on employment support, because helping parents into good quality jobs is the long-term key to tackling poverty and inequality.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
I was delighted to see the establishment of the disability advisory panel a week or so ago. [Interruption.] I am so sorry, Mr Speaker; I have a cold. How will the advisory panel link with the co-production in the Timms review?
Sir Stephen Timms
I am grateful to my hon. Friend. We have announced that Zara Todd will be the chair of the Department’s disability advisory panel. The panel was announced in the “Get Britain Working” White Paper last year. Separately, we will set up a group to work with me on the review of the PIP assessment. I will, of course, talk to the disability advisory panel about the arrangements, but they will be separate structures.
Sir Julian Lewis (New Forest East) (Con)
Despite his new role in riding to the rescue of the Treasury, is the Pensions Minister still available to fulfil in principle the undertaking he gave me before the recess to have a meeting about the plight of ExxonMobil pensioners and the difficulties in them getting the discretionary surplus benefits to which I think they should be entitled?