House of Commons
Oral Answers to Questions
(5 months ago)
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Josh Babarinde (Eastbourne) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)
I am glad that the hon. Member and I have had the chance to discuss this issue on a number of occasions, and, more importantly, that we had the chance to do so with his constituent Staff Sergeant Pauline Cole, who served our country and campaigned on behalf of other veterans. I know that she has sadly passed away since our meeting, so I wish to put on the record my condolences to her family—not least to her son Les, on whose behalf my hon. Friend the Member for Hemel Hempstead (David Taylor) has been in touch in recent days. As the hon. Member for Eastbourne (Josh Babarinde) is aware, exactly because of the service of our armed forces, £10 per week of any armed forces compensation scheme award is disregarded when calculating pension credit entitlement.
Josh Babarinde
The Minister will remember that Pauline was a veteran who was awarded military compensation for injuries sustained in her service, but that led to her pension credit being cut from £77 a week to £10 a week, because military compensation is considered income by the Department for Work and Pensions. I have introduced Pauline’s law—the Armed Forces Compensation Scheme and War Pension Scheme (Report) Bill—to ask the DWP to correct that injustice and disregard military compensation in those calculations. Will the Minister work with me, and with Pauline’s sons, Les and Simon Haffenden, to conduct a review into the merits of disregarding that income in order to protect our veterans in future?
Torsten Bell
I recognise the powerful arguments that the hon. Member and Pauline made in our meeting. Our position today reflects the balance between recognising service injuries and being consistent across the welfare system. Pension credit is a means-tested benefit, the goal of which is to top up pensioners’ income to a guaranteed minimum level, so in order to ensure consistency, most forms of income—including those he refers to—are taken into account. However, as I said, there is a partial disregard in order to recognise veterans’ service, and the value of lump-sum payments received in respect of personal injury are fully disregarded.
John Cooper (Dumfries and Galloway) (Con)
Jerome Mayhew (Broadland and Fakenham) (Con)
Sir Desmond Swayne (New Forest West) (Con)
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
The Secretary of State for Work and Pensions (Pat McFadden)
Headline unemployment is below its average rate under the previous Government, and inactivity is falling as more people actively seek work. Some 381,000 more people have moved into work over the past year. However, there is a long-term challenge in youth unemployment, which we are responding to through the youth guarantee, more youth apprenticeship starts and other measures.
John Cooper
Youth unemployment is, in fact, spiking at nearly 5.3%, which is heartbreaking, particularly for young people who cannot get that all-important first job. The Government like to pretend that they are a cork in a storm-tossed sea and unable to do anything about this, but they could reconsider employer national insurance contributions and the disastrous Employment Rights Act 2025, which is driving up youth unemployment.
Pat McFadden
The hon. Member will be aware of the national insurance tax break under which no employer national insurance contributions are payable for workers under 21, unless they earn more than £50,000, which not too many workers under the age of 21 do.
Jerome Mayhew
The Minister answered a question about unemployment by giving data about employment, so let us focus on unemployment numbers. By how much has general unemployment increased since July 2024?
Pat McFadden
I did talk about unemployment. As I said, the unemployment figures are lower, on average, than when the hon. Gentleman’s party was in power. We are, of course, doing everything we can to help people into work, which is why I referred to the measures that we are taking, including the youth guarantee and increased apprenticeship starts. That is a much more active approach than the one carried out by the previous Government, who saw rising numbers of young people not in education, employment or training but did precisely nothing about it.
Sir Desmond Swayne
The Government loaded costs on to employers while the benefits bill let rip. What on earth did they think would happen?
Pat McFadden
As I said, no employer national insurance contributions are payable for workers under the age of 21, and we believe that workers should be decently paid for the work they do. We are responding to the particular challenge of youth unemployment, which I acknowledge is there, and was there when the Conservative party was in power, with active measures such as the youth guarantee and more youth apprenticeship starts. I remind the House that youth apprenticeship starts fell by 40% while the Conservatives were in power.
Alison Griffiths
I recently launched my Bognor Regis and Littlehampton business club. Many who joined are independent hospitality and leisure businesses, and their No.1 concern is how difficult it is to take on new staff under this Government. What assessment has the Department made of the impact of the Treasury’s new jobs tax, and the Government’s new employment regulations, on job creation in coastal constituencies such as mine? What steps is the Secretary of State taking to mitigate those effects?
Pat McFadden
I congratulate the business club—such organisations play a valuable role in our constituencies. The hon. Lady asks what measures we are taking, and I am grateful to the Chancellor for the extra funding made available in the Budget for the youth guarantee. That will gives hundreds of thousands more training and work experience places to young people and, importantly, will provide funding for the long-term youth unemployed to gain six months’ work, paid at the national minimum wage for 25 hours a week, so that young people get used to the discipline and duty of turning up, doing a job, and experiencing the sense of pride and purpose that comes with having a job.
Lauren Edwards (Rochester and Strood) (Lab)
Net migration has fallen to the lowest level since 2021, which will have a significant impact on our labour market and economy if we do not train and support unemployed people in the UK into jobs in key sectors. What steps is the Secretary of State taking to target back-to-work programmes, especially those for young people who are not in work, education or training, to fill skills shortages in crucial areas such as health and social care?
Pat McFadden
My hon. Friend asks an excellent question. The fact that net migration is falling to lower levels than we have seen for some time gives added urgency to a question that has often been posed: why do we not do more to train our own workers? That is precisely why I am prioritising youth apprenticeship starts, which fell by 40% under the previous Government. We must arrest that decline and ensure that we respond to the new situation of falling levels of net migration by training more of our own young people.
Steve Yemm (Mansfield) (Lab)
Will the Secretary of State outline what exactly the youth guarantee means for young people in my constituency of Mansfield?
Pat McFadden
What it will mean for young people in my hon. Friend’s constituency, and many others, is intensive work coach training, and the chance of training or work experience. If that does not get them into a job, ultimately it will mean a subsidised job, where they get six months of work experience, paid at the national minimum wage for 25 hours a week. The last thing we want is people leaving education and going on to a life on benefits.
Chris Vince (Harlow) (Lab/Co-op)
The Secretary of State will know that the level of young people not in education, employment or training in Harlow has gone down, due to the hard work of Harlow College, working in partnership with local schools such as Passmores Academy and Burnt Mill Academy, which I visited this morning. Businesses and the local chamber of commerce are telling me that the No.1 challenge for getting young people into employment is the skills they have upon leaving school. What work is the Secretary of State doing with the Department for Education to ensure that we have a curriculum that incorporates the skills that employers so desperately need?
Pat McFadden
I am relieved to hear that the number of young people not in education, employment or training is dropping in Harlow. The number of such people rose by a quarter of a million in the last few years of the Conservative party’s time in government, and they did absolutely nothing about it. Bringing skills into the Department for Work and Pensions gives us the chance to bring skills policy and labour market policy closer together, to help young people get that vital chance of a first job.
Mr Peter Bedford (Mid Leicestershire) (Con)
When this Government came into office, unemployment stood at 4.2%. After a brutal 18 months of job-destroying, anti-business, anti-growth policies, it now stands at 5.2%, with young people bearing the brunt—1 million of them are not in employment, education or training. We Conservatives believe in being in work and off welfare, and that is the best path to eradicating poverty. Will the Secretary of State break with the mistakes of all previous Labour Governments and commit that unemployment will be lower at the end of this Parliament than it was at the start?
Pat McFadden
I believe this may be the first time that the hon. Member has appeared at the Dispatch Box in his capacity as shadow Minister—if I am wrong about that, I am sorry; but if I am right, I welcome him to his position. He asks about the forecast for the future. It was published alongside the spring statement a couple of weeks ago, and in it the Office for Budget Responsibility forecast employment to rise in every year of the forecast period.
Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson.
Steve Darling (Torbay) (LD)
Politics is all about choices. Last week, the Chancellor stood at the Dispatch Box with a choice: she could have chosen to reverse the jobs tax that is costing thousands of jobs for young people up and down the United Kingdom. Why she did she not make that choice?
Pat McFadden
Whatever Department I am in, I hear the same question from the Liberal Democrats. They support all the extra spending that is funded by revenue-raising measures, but they oppose all the revenue-raising measures themselves. If the hon. Gentleman wants NHS waiting lists to fall and if he calls for more spending every week, then he has to support the revenue-raising measures that make that possible.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
Universal credit is primarily reserved for people settled in the UK. With regard to trends, overall the proportion of universal credit claimants in this country who are foreign nationals has fallen from 17% in January 2025 to 15.5% in the latest statistics from January 2026.
John Lamont
According to the Government’s own figures, most foreign nationals who are claiming universal credit are not in work. The Government do not seem to want to do anything to bring that figure down, so will the Minister tell us how much this is costing the UK taxpayer?
Andrew Western
The hon. Gentleman may be unaware that the proportion of foreign nationals claiming universal credit who are in work is one third higher than the proportion for people who are British or Irish claiming—[Interruption.] If he prefers to put the figures into the context that he has just suggested from a sedentary position, the figure is 10% lower in terms of people who are not in work. It is often difficult to extrapolate a specific number because universal credit figures, such as these, are calculated on a per household basis rather than on an individual basis. If I am able to provide the specific number, I will follow up with him in writing.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Secretary of State.
Helen Whately (Faversham and Mid Kent) (Con)
The working-age benefits bill is set to reach £171 billion by the end of this Parliament, yet the Government are doing nothing to get it under control. In fact, by scrapping the two-child cap, they have added another £3 billion. It is time to stop spending and get saving. The Conservatives would stop benefits for foreign nationals and save £7 billion a year. Britain cannot be a cash machine for the world. With war in Ukraine and now in the middle east, we must boost our national security, so why are the Government continuing to bankroll benefits for migrants rather than investing in defence?
Andrew Western
The hon. Lady will be aware that the Conservatives created this system. On her specific question about what we are doing to restrict access to the benefits system by foreign nationals, she will also be aware that the Home Secretary has brought forward proposals to extend the period before somebody can achieve settlement from five to 10 years, and there is a consultation under way to move that point from the point of settlement to the point of citizenship. However, if it is the Conservatives’ position to suggest that somebody who has worked here for decades, contributed to the system and made a positive contribution to this country should have absolutely no access to support, we have a fundamentally different point of view.
Mr Connor Rand (Altrincham and Sale West) (Lab)
Linsey Farnsworth (Amber Valley) (Lab)
Josh Dean (Hertford and Stortford) (Lab)
Anneliese Midgley (Knowsley) (Lab)
Alex McIntyre (Gloucester) (Lab)
The Secretary of State for Work and Pensions (Pat McFadden)
The statistics for the second half of 2024 show the scale of the situation that we inherited from the previous Government. The number of young people not in education, employment or training had increased by around 300,000 since 2021, but, unlike the last Government, we are doing something about that. Over three years, the Government will invest some £1.5 billion to improve opportunities for young people through both the youth guarantee and more youth apprenticeships. We are expanding the number of youth hubs to more areas of the country, and we aim to add about 50,000 more starts through the change to youth apprenticeships. That is in stark contrast to the situation we inherited.
Mr Rand
I draw the Secretary of State’s attention to Wiseup Networks, an organisation, based in my constituency, that enables employers across Manchester and London to provide young people with work experience and mentoring opportunities for those with social and economic barriers to work, including young people with special educational needs. Those opportunities lead to job offers, increased confidence and new career options for the participants. Given this Government’s commitment to social mobility and ensuring that young people are earning or learning, will the Secretary of State meet me and Wiseup Networks to discuss how we can support its vital work?
Pat McFadden
I am grateful to my hon. Friend for highlighting the valuable work of Wiseup Networks. He is absolutely right; work experience and mentoring can play a very important role in helping young people to find work. Confidence can be an issue for young people, so building that up is really important. I am happy to arrange a meeting between him and a Minister from this team.
Linsey Farnsworth
I am delighted that the Secretary of State is planning to visit the David Nieper Academy in Alfreton later this year. The school recently achieved zero NEETs at age 18 for the second year running by working closely with local industry and teaching employability skills. Local initiatives such as that should be complemented by national programmes. Will the Secretary of State provide an update on the results of the Wakefield pathfinder, which is seeking to trial a new, locally led approach to jobseeker support? Given our success in Alfreton, can he confirm whether Amber Valley could be considered as a location for the next pathfinder?
Pat McFadden
I thank my hon. Friend for highlighting the excellent work of the David Nieper Academy in achieving NEET zero, and I congratulate it on doing so. She mentions the career service pathfinder in Wakefield, which was launched in April 2025. We are testing more personalised employment support, and evaluation is under way to understand how this approach works. It is right that we approach these matters with flexibility and innovation, and do not always do what we have always done.
Josh Dean
A young person with undiagnosed attention deficit hyperactivity disorder is more likely not to be in education, employment or training. That is driven by a lack of recognition, treatment and tailored support. The expert-led NHS ADHD taskforce estimates that the cost to the UK economy of unsupported ADHD is £17 billion each year, but, with the right support, young people with ADHD can thrive. Will the Secretary of State set out how the Department is working across Government, including through the Milburn review, to ensure that young people with ADHD can access the support they need to thrive in work and reach their potential?
Pat McFadden
I know that my hon. Friend has spoken movingly about his own experience with ADHD. I assure him that Alan Milburn, a former Health Secretary who is carrying out this report for us, is in regular contact with the chair and secretariat of the independent review into prevalence and support for mental health conditions, ADHD and autism, which is being carried out by the Department of Health and Social Care. More broadly, we should support young people, try to increase their confidence and ensure they do not conclude that a diagnosis means that they cannot work, because that should not be the conclusion reached. Many people who do have a diagnosis can go on to have very productive working lives.
Anneliese Midgley
Last week I met with Knowsley chamber of commerce, and we all welcomed the Government’s youth guarantee. Some 55,000 placements is a great start, but no scheme starts are currently planned in Knowsley, where the likelihood of young people not being in employment, education or training is higher than average. Will the Secretary of State commit to expanding the scheme and meet me and Knowsley chamber of commerce to discuss how we can get more young people into good jobs in Knowsley?
Pat McFadden
My hon. Friend has spoken powerfully of how unemployment in her constituency has scarred generations. I assure her that the youth guarantee will become nationwide by the end of the year. We have to break the cycle of intergenerational unemployment that she has spoken about, and I share her desire to be more ambitious in that area. I am very happy to keep up a dialogue with her and to meet with her, or to have a fellow Minister in the team do so.
Alex McIntyre
Gloucestershire Gateway Trust does vital work in my constituency, helping those not in employment, education or training back into work. It runs the Bridging the Gap programme, which provides an employability skills course and a guaranteed interview at the country’s best motorway services, Gloucester services. It also ran the Going the Extra Mile project, which supported over 2,000 local residents who were furthest from employment. It is exactly the kind of organisation we need to work with to tackle the challenges we face, but the GEM project was stopped under the previous Government due to a lack of funding. Can the Secretary of State visit my constituency to see the work that Gloucestershire Gateway Trust is doing, and to discuss how we can work with community and voluntary organisations to tackle these challenges from the ground up?
Pat McFadden
I suspect we could be here for some time talking about what the best service station in the country is, but I have to say that Rugby services, between London and Wolverhampton, has taken things to another level. Gloucestershire Gateway Trust has helped create over 400 jobs for local residents. It continues to provide invaluable support, and I am very happy to take the opportunity to visit my hon. Friend’s constituency at some point—diary permitting, as they say.
Graham Stuart (Beverley and Holderness) (Con)
Might the Secretary of State perhaps come up to Long Riston in my constituency and go to Oasis services, where I went on Friday? It faces a fivefold increase in its business rates, as well as the impact of the more than £4,000 increase in the cost of hiring a young person. Some people may welcome this national youth guarantee from the Government, but does it not remind you, Madam Deputy Speaker, of what Ronald Reagan said about the left? If something is moving, they tax it; if it keeps moving, they regulate it; and when it stops moving, they subsidise it.
Pat McFadden
The truth is that the Conservatives presided over a huge post-covid rise in the number of young people not in education, employment or training, and they did precisely nothing about it. They also presided over a huge rise in the number of young people going on to sickness and disability benefits and did precisely nothing about it. They have discovered a thirst for change only after leaving office—they have no credibility and no plan on this issue. In contrast, we are responding through the youth guarantee, through changes to the apprenticeship system, and by giving young people more hope that the Government will help give them a chance in life.
John Milne (Horsham) (LD)
A recent report from Adzuna, a large job search agency, shows youth unemployment at an 11-year high and vacancies plummeting. Jobseekers urgently need the new “jobcentre in your pocket” digital service. Given that current timeframes suggest that it will not be ready until 2028, will the Secretary of State assure us that all options are on the table to accelerate delivery—including leveraging the private sector and technology—so that we can support jobseekers now, rather than years down the line?
Pat McFadden
We do want to support jobseekers now. As I said, there is a long-term challenge with youth unemployment, which we are responding to through the measures I have outlined. If we can be more ambitious than those measures in the future, we very much will.
Greg Smith (Mid Buckinghamshire) (Con)
The Centre for Social Justice found that as of the end of last year, 707,000 young people with a university degree were out of work and on benefits. That statistic comes at the same time that employers in my constituency, from the furniture makers in Princes Risborough to the rocket scientists and space sector in Westcott, are saying that they do not want graduates any more—they want apprentices. What is the Secretary of State doing in conjunction with the Department for Education to better signpost young people into pathways for learning and education that will actually help them get a job further down the line?
Pat McFadden
The hon. Gentleman will find that graduate unemployment is an international issue. If we want more non-higher education skills, he should support our plans to stop the decline that we saw in youth apprenticeship starts when his party was in power and to direct more money to youth apprenticeship starts. That is precisely what we will do.
Vikki Slade (Mid Dorset and North Poole) (LD)
MYTIME Young Carers in Dorset works to identify and support young people with caring responsibilities, as without information on their whereabouts, it is hard to target them for initiatives. In a recent national youth voice survey, one in three young carers aged 16 to 18 reported that they were not in education, employment or training. That is eight times the rate of the rest of their peers. What steps is the Department taking to level the playing field for young carers alongside their peers, so that they can fulfil their potential?
Pat McFadden
The hon. Lady makes a good point. When we look at the total number of NEETs, within that is what we might regard as standard unemployment cases, a lot of health, sickness and disability cases and a significant number of young carers. One of the things we are doing is expanding childcare support through free breakfast clubs and extending the number of free hours so that we can support young parents to get into work after they have had a child.
Tom Gordon (Harrogate and Knaresborough) (LD)
I recently visited Ventrolla, a specialist heritage window manufacturer in my constituency. It was concerned by the recent announcements of apprenticeship reform and the impact that will have on its apprentices. It has signed a cross-party and cross-organisation letter from industry leaders and experts to the Prime Minister about the sector’s concerns about the changes to apprenticeships. They think those changes will undermine the Government’s ambition to generate economic growth. What conversations are Ministers having with businesses such as Ventrolla to ensure that these changes do not adversely impact the sector and rob young people of these opportunities and apprenticeships?
Pat McFadden
We have a lot of dialogue with businesses about the nature of the growth and skills levy and how it is used. I have to say to the hon. Gentleman and to the House that we are making a choice to prioritise young people. It is precisely because the previous Government did not prioritise young people that we saw a 40% decline in apprenticeship starts. I do not think that is an argument for the status quo; it is an argument for change. That is the slogan upon which we were elected, and it is change to the system that we will bring.
Rebecca Smith (South West Devon) (Con)
When the Secretary of State and I last met like this, he lauded the roll-out of youth hubs and the introduction of the youth guarantee as the solution to tackling the scale of young people not in education, employment or training. Since then, however, apprenticeship figures have been updated. The latest figures show that apprenticeship vacancies and adverts have significantly decreased since the Labour Government took office. If we compare the latest figures from this academic year with the same period in 2024-25, apprenticeship adverts have fallen by 27% and the number of vacancies has fallen by 22%. How can the Secretary of State make the promise of a youth guarantee with this alarming reduction in the number of available apprenticeships?
Pat McFadden
Precisely because we are tilting the funding more towards youth apprenticeship starts, we will arrest the decline that happened when the hon. Lady’s party were in power. Change needs to come to the system if we want to do that, and I believe it is the right choice. The effect on young people who come off education and go on to benefits can be lifelong, so it is right that we prioritise them in the system.
Adam Thompson (Erewash) (Lab)
The Secretary of State for Work and Pensions (Pat McFadden)
The right hon. Alan Milburn is making progress on his report. He brings valuable experience as a former Secretary of State for Health and former chair of the Government’s Social Mobility Commission. He is engaging with stakeholders across the country to increase the understanding of what has driven the increase in NEETs in recent years, and his interim report is due later in the spring.
Adam Thompson
With almost 8% of 16 and 17-year-olds not in education, employment or training, Derbyshire is the worst county in the east midlands for NEET. In New Stanton Park in Ilkeston, on the former site of a once-famous ironworks, major investments are bringing good manufacturing jobs back to Erewash. Will the Secretary of State share the work he is doing to ensure that apprenticeships are available to disadvantaged young people so that they can thrive, instead of being left behind?
Pat McFadden
My hon. Friend brings valuable experience to this matter, including his experience of teaching engineering apprentices at the University of Nottingham. We are committed to ensuring that disadvantaged young people have access to high-quality apprenticeships and can benefit from the new jobs being created in places such as Erewash as a result of the changes in how the growth and skills levy is used—as I have explained in response to earlier questions—and the extension of youth hubs in the region to give young people who may not be claiming benefit or undertaking an apprenticeship the chance of finding that vital first job.
Dr Danny Chambers (Winchester) (LD)
Sophia, whom I spoke to in my constituency office in Winchester this morning, is one of many recent graduates—often with really good degrees from really good universities—who have been applying for hundreds of jobs and not even receiving replies. Has the Department carried out an assessment of the impact of artificial intelligence, in all its forms, on graduate employment prospects over the next few years? What work has been done with universities and institutions that offer apprenticeships to ensure that young people are graduating with the right set of skills to be able to work in this era of artificial intelligence?
Pat McFadden
The hon. Member has posed a very good and important question, and the issue of graduate unemployment is by no means confined to the UK. In the United States, for example, a similar debate about graduate unemployment is taking place. The truth is that structural developments are happening in the labour market. Technology is undergoing a big shift, and I think that all Governments must ask themselves how to help young people through this transition. The one thing that we cannot do is abandon them to it: we have to train people, and we have to ensure that the UK is best placed to take advantage of this big technological shift.
Kirith Entwistle (Bolton North East) (Lab)
The Minister of State, Department for Work and Pensions (Dame Diana Johnson)
Under the last Government an additional 900,000 children became part of the child poverty statistics, but as a result of our Child Poverty Strategy, published in December, 550,000 will be lifted out of poverty by the end of the current Parliament—the largest number ever in a single Parliament. The removal of the two-child limit from April, for instance, could benefit about 4,710 children in my hon. Friend’s constituency.
Kirith Entwistle
I am proud that this Labour Government will lift more than 4,500 children in my constituency out of poverty by scrapping the two-child limit, but what further measures are the Government implementing to tackle child poverty and support families in my constituency?
Dame Diana Johnson
Reducing child poverty is a moral imperative for us all, and for this Government in particular. We know that growing up in poverty damages children’s health, education and future employment prospects. We have just been discussing the number of NEETs, and many of those children could become NEETs, so child poverty is bad for the UK’s economic prosperity as well. We had not just been waiting for the strategy in December; we had already introduced the extension of free school meals eligibility, tripled access to breakfast clubs and supported the holiday activities and food programme, and we have put £1 billion into the reforming crisis and resilience fund.
Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)
The Parliamentary Secretary to the Treasury (Torsten Bell)
The yearly amount of the full new state pension is projected to rise by about £2,100 a year over the current Parliament. That reflects the Government’s commitment to the triple lock for the duration of the Parliament. Payments of both the basic and new state pensions will increase by 4.8% in a few weeks’ time, boosting pensioners’ incomes by up to £575 a year.
Peter Prinsley
I declare an interest, in that I receive a state pension. [Hon. Members: “No! No way!”] We welcome the Government’s commitment to the triple lock, but some pensioners in my constituency continue to live in poverty and isolation, and are in need of food banks. What specific measures can the Government take to reduce social isolation and tackle poverty in this group of people?
Torsten Bell
I thank my hon. Friend for his question—and for the shocking news of his age. He is absolutely right to highlight both these issues. Pensioner poverty halved under the last Labour Government, but it has risen more recently. That is why it is so important that, as well as increasing the state pension, we have put in place the biggest-ever take-up campaign for pension credit and focused on the cost of essentials—most importantly, energy, where new measures will come into place in the next few weeks.
My hon. Friend is also right to focus not just on poverty, but on isolation. I am sure that all Members of the House, when we are out knocking on doors at the weekend, meet some younger, but also some older, constituents who are too isolated. They might not be happy to see the Member who comes to knock on their door, but they might be. Whatever people think about politicians knocking on their doors, we all have organisations and charities in our constituencies—such as Age Cymru in Wales and, I am sure, many in my hon. Friend’s constituency—that do important work in tackling isolation among all our communities.
Sir Edward Leigh (Gainsborough) (Con)
I declare a similar interest to that of the hon. Member for Bury St Edmunds and Stowmarket (Peter Prinsley). I read this weekend that if we grapple with the increase in pensions and benefits, we might be able to afford 15 new frigates. It is easy for Opposition Members to attack in-work benefits; it is more difficult to question the state pension. Has the Minister seen the paper from the Institute for Fiscal Studies that says we should consider moving to a smoothed earnings link for state pensions, which would ensure that they never fall in real terms but, in the long term, always rise with earnings? He will not give me an answer now, but perhaps he can write to me about how we are going to buttress the long-term sustainability of the state pension.
Torsten Bell
The right hon. Member is right to recognise the challenge. We have around 12 million pensioners at the moment, but that will rise to 18 million over the next 50 years. Our view is that having the triple lock drive above-inflation increases, on average, among pensioners is the right thing to do for this Parliament. That is why we set it out in our manifesto, and that is what is driving the increases in the state pension. When it comes to affording the cost of frigates, I merely point him to the fact that defence spending under this Government is higher in every year than it was in a single year under the Conservative party.
Mark Garnier (Wyre Forest) (Con)
Helping millions of people ensure financial security in their retirement is a cornerstone of the Minister’s Department, but in the Government’s first 18 months, they have disincentivised pension savings by introducing inheritance tax on pensions, removing pensions from their lifetime ISA reforms, forcing pension trustees into mandation and, most recently, introducing a cap on salary sacrifice savings incentives. Through their actions, this Government are pushing people to be more reliant on the state pension, rather than encouraging people to take control of their own financial future. Which will be the next Government U-turn: cancelling mandation, or abandoning salary sacrifice caps?
Torsten Bell
That was just a bit sad, because the U-turn that we are seeing is from the hon. Member, who declined to vote against the Pensions Schemes Bill at Second Reading and on Report. I will quote him back to himself. He told me that “the Minister”—that is me—
“will be pleased to hear that there is cross-party consensus on many of the planned changes.”
[Interruption.] Wait a second. He then got even more excited—back in his reasonable days, before he had been leant on by the “looney tunes” who will wander off to Reform—and told us that
“we broadly support the measures in the Bill”.—[Official Report, 7 July 2025; Vol. 770, c. 722-723.]
The U-turn has been done by the hon. Member, who has let himself down.
Luke Akehurst (North Durham) (Lab)
The Minister for Social Security and Disability (Sir Stephen Timms)
The Health and Safety Executive is working to ensure that employers know their duties under COSHH—the Control of Substances Hazardous to Health Regulations 2022, as amended. Those regulations require a risk assessment and the prevention of, or adequate control of, exposure of employees to hazardous medicinal products.
Luke Akehurst
Will the Minister consider developing a clear statutory definition of “hazardous medicinal products” and subsequently mandate the development, publication and ongoing maintenance of a comprehensive UK list of hazardous medicinal products?
Sir Stephen Timms
My hon. Friend make an interesting suggestion, and I know there has been some campaigning around this issue. The Health and Safety Executive has not seen evidence that the current arrangements are inadequate. They appear to be robust and well established, and they seem to be doing the job that is needed. If there is evidence of a problem to which my hon. Friend is able to draw attention, the HSE will certainly look at that very seriously. For now, though, the focus is on making sure that NHS trusts and others know their obligations under the current regulations.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his answers. I do not know whether he had a chance to see in the paper last week some figures for poisonings of those over 50 years of age on a number of occasions, although whether those were the unexpected effects of medicinal products or arose from lifestyle is not yet known. As a result of the uncertainty and the rising number of such poisonings, will the Minister look into this issue and come back to the hon. Member for North Durham (Luke Akehurst), me and the House on whether there is a connection? I think there may well be one.
Sir Stephen Timms
I do not think I have seen the report the hon. Gentleman refers to. From what I have seen, there is no evidence of a problem with the current arrangements. There may be some pointers in the information he referred to, and if there are, I would be keen to have a look at them.
Kirsty Blackman (Aberdeen North) (SNP)
The Secretary of State for Work and Pensions (Pat McFadden)
The Scottish unemployment rate is 3.8%, and overall economic inactivity in Scotland is higher than in the UK as a whole. However, I am pleased to say that Scotland has had the biggest increase in funding since devolution began. It will benefit from major defence contracts, including the £10 billion contract to build five new frigates for the Norwegian navy, and from the trade deals we have negotiated over the past year, which will be of particular benefit to Scotland’s whisky and food industries.
Kirsty Blackman
One in three—or more than one in three—people in my constituency are employed directly or indirectly or in induced jobs in the offshore energies industries. Given the continuation of the tax system for oil and gas, investment in that industry has reduced. Is the Secretary of State confident that the Government’s measure of the number of jobs lost, particularly in the oil and gas industry, is truly accurate, given that people are generally not signing on for universal credit but rather doing things such as moving to Dubai and Doha?
Pat McFadden
That is of course a hugely important industry for the UK. The hon. Member will be aware that a transition is taking place, but oil and gas will be part of the mix for a long time to come. The Chancellor met those in the industry last week, and I assure the hon. Member and her constituents that the industry’s importance is recognised and hugely valued by the Government.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Last year, the SNP Government in Holyrood funded nearly 9,000 fewer apprenticeships than colleges and industry asked for, robbing thousands of Scots of opportunities and starving businesses of skilled workers. Meanwhile, youth unemployment in Scotland is rising; more than one in eight young people in Scotland are unemployed. Does my right hon. Friend agree that one of the solutions to that problem is electing a new Government in Holyrood in May, under Anas Sarwar of the Labour party?
Pat McFadden
I very much agree with my hon. Friend’s final point. I think Anas Sarwar would make an excellent First Minister, and I look forward to supporting him in the campaign to come. The youth guarantee, to which I have referred, extends to Scotland. We want young people in Scotland to have as many opportunities and as good opportunities as young people anywhere else in the UK, and in particular not to fall into the pattern of leaving education and going on to a life on benefits.
Manuela Perteghella (Stratford-on-Avon) (LD)
The Minister for Social Security and Disability (Sir Stephen Timms)
The hon. Lady’s hon. Friend, the Member for North East Fife (Wendy Chamberlain) raised this important concern in a Westminster Hall debate last week. A backlog of reassessments for the work capability assessment did build up during 2024. I am pleased to say that that backlog will have been almost entirely cleared by the end of this month.
Manuela Perteghella
Research from Scope found that, in 2025, only 7% of work capability assessments carried out were reassessments for existing claimants, compared with 19% the previous year. One of my constituents has experienced a significant deterioration in their health and urgently requires reassessment to determine whether they should now receive the limited capability for work and work-related activity element of universal credit. What further urgent actions will the Minister take to reduce waiting times and ensure that disabled people are not left without financial support?
Sir Stephen Timms
The hon. Lady is right to raise this matter. She is also right that the Department prioritises initial assessments, so that people without any support at all get it as soon as possible. Reassessments are then carried out when there is capacity. As I said, the backlog that built up towards the end of 2024 will have been almost entirely cleared by the end of this month. If there is still a problem in the case of her constituent, I would be grateful if she dropped me a line.
Sarah Dyke (Glastonbury and Somerton) (LD)
The Secretary of State for Work and Pensions (Pat McFadden)
Since the last Work and Pensions questions, we have had Apprenticeships Week, when I visited Cammell Laird shipyard in Birkenhead and London Underground’s Acton Works in west London. I attended the youth guarantee jobs fair in Blackpool, which connected over 3,000 local people with 90 employers; had a roundtable with business at which, for example, Make UK reported 50,000 vacancies in the engineering and manufacturing sectors; and we extended the Connect to Work programme to give employment support to more than 75,000 more people with disabilities or long-term sickness—people far too often in the past simply signed off and written off.
Sarah Dyke
Skills bootcamps in Somerset give businesses in Glastonbury and Somerton the opportunity to collaborate with training providers. This helps to address persistent skills shortages. However, changes to funding allocations could see Somerset lose nearly 70% of its funding. Will the Minister urgently review the skills bootcamp funding methodology? Without it, an important pathway for residents to gain valuable skills and to support economic prosperity in Somerset will be compromised.
Pat McFadden
I appreciate the value of skills bootcamps. They can play an important role in the mix of policies we are talking about today. I hear the representations the hon. Lady has made for more funding. All I would say to her and her party is that if we have more funding, I hope they support whatever revenue-raising measures that have to be put in place for it.
Sarah Coombes (West Bromwich) (Lab)
The Minister of State, Department for Work and Pensions (Dame Diana Johnson)
My hon. Friend is exactly right. This is why we need to ensure that jobcentres have really good engagement with local employers, including manufacturers. She will be pleased to know that there will be an employer roundtable at the Manufacturing Centre in West Bromwich on 17 March, with Sandwell college and manufacturing employers. There will also be an employer breakfast on 29 April, again at Sandwell college, about jobcentres and what they can offer, particularly around SWAPS—sector-based work academy programmes—and manufacturing SWAPS, which are so important.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Secretary of State.
Helen Whately (Faversham and Mid Kent) (Con)
Madam Deputy Speaker, you are no doubt familiar with the dramatic principle of Chekhov’s gun: if there is a gun on the wall in the first act, it will be fired by the final scene. Ministers say that the mandation power in the Pension Schemes Bill is merely a backstop that they do not intend to use, but once they have a power in law like a gun on the wall, how long will that intention last? Will the Secretary of State make a commitment to the House that the mandation gun will never be fired at the expense of UK pension savers?
The Parliamentary Secretary to the Treasury (Torsten Bell)
I thank the hon. Lady for her question. She will know that the industry itself set out in the Mansion House accord that it thinks there needs to be change in the pattern of investment in our largest defined contribution schemes. It says that because it is in the interests of savers, and that is why the previous hon. Member for Hexham, the longest-lasting Conservative Pensions Minister, labelled it a good thing. All the Pension Schemes Bill does is put in place the mechanism to make sure that change, which the industry has said is in the interest of members, actually happens.
Helen Whately
Given that the savings of millions of people are at stake, I am disappointed that the Secretary of State did not rise to answer this important question. The Pensions Minister needs to stop conflating the voluntary Mansion House agreement with changing the law to give Government the power to direct pension fund investments. The two are not the same. Both the Association of British Insurers and Pensions UK are urging the Government to drop the mandation power from the Bill. The Pensions Minister has a tendency to think he always knows best, but he is not always right; apparently, the Ed stone was his idea. Let us not have people’s retirements savings suffer the same fate as the quest of the right hon. Member for Doncaster North (Ed Miliband) to become Prime Minister. The Government should not be giving themselves control over how people’s retirement savings are invested, but that is what mandation does. I am against it, the pensions sector is against it, and savers are against it. Will he listen and change tack?
Torsten Bell
The hon. Lady is going to be absolutely furious when she finds out what those on the Opposition Front Bench did when the Pensions Schemes Bill came through this House. There is all this sound and fury now, but, when it came to choosing whether to vote against the very power she now says is incredibly dangerous, she went for a snooze on both Second and Third Reading. She is going to be even angrier when she finds out what her right hon. Friends the Members for Salisbury (John Glen) and for Godalming and Ash (Sir Jeremy Hunt) have called for, which is the mandation of pensions schemes in the UK to invest—
Madam Deputy Speaker (Judith Cummins)
Order. I remind Members and Ministers that this is topical questions—we should have short questions and short answers.
Linsey Farnsworth (Amber Valley) (Lab)
Dame Diana Johnson
With the Minister for Skills now working jointly across the DFE and DWP, we have very clear collaboration. We have already launched eight youth guarantee trailblazers, which are testing innovative approaches to localised support for young people who are NEET or at risk of becoming NEET, including targeted SEND support. We also have the Milburn review into young people and work and how better to support them.
Steve Darling (Torbay) (LD)
Last week, Citizens Advice shared a report into Access to Work which confirmed many things that we know from our own postbags relating to disturbing delays in the system on both processing applications and reimbursement. Will the Minister share with us what recovery plan he has in place and when the Government will get up to a 28-day turnaround for these important issues?
The Minister for Social Security and Disability (Sir Stephen Timms)
The new disability advisory panel—chaired by Zara Todd, whom the hon. Gentleman may know—will be working with us on reform of Access to Work. We have increased the number of staff working on this from 500 to 650 in the past couple of years, which is reducing some of the delays that we saw as a result of the big surge in applications. I would be glad to keep the hon. Gentleman posted on further progress, including our proposals for reform, which we will bring forward as soon as we are able to do so.
Amanda Hack (North West Leicestershire) (Lab)
I recently met my constituent Dean, who is in his 60s and wants to return to full-time work after a bit of ill health. With more than 15 years’ experience in human resources, he is struggling to get over the line and get that next job. He feels he is being turned away not just because of his age, but because of his medical condition, which means he needs a cane to walk. What is the Minister doing to support people with health conditions, such as Dean, back into work?
Sir Stephen Timms
My hon. Friend is right to raise this matter. She might know of the Connect to Work service we have introduced, which will be available across the whole country by summer. The methodology for it has been designed centrally, but it is being commissioned entirely locally. The feedback we are seeing so far is that it is doing a very good job in supporting people in exactly the kind of circumstances that my hon. Friend describes.
Greg Smith (Mid Buckinghamshire) (Con)
Sir Stephen Timms
I would be very grateful if the hon. Gentleman would drop me a line about that case so that I can look into what has happened.
Laura Kyrke-Smith (Aylesbury) (Lab)
I know that the Minister has been making progress with the review of the personal independence payment assessment. I hear from many people who struggle with the complexity and mistakes in the current system, including one lady with severe spinal and nerve conditions who had her payments reduced after the DWP did not receive the medical evidence that she had sent. Does the Minister agree that any changes to the system must be humane and fair, and that it must become easier to navigate and easier for people to trust?
Sir Stephen Timms
Yes, I do agree. As my hon. Friend will know, we have set up a review of personal independence payment, which is under way at the moment. We have a steering group of 12 individuals, almost all of whom are disabled people, plus me and two other co-chairs, and we had our third full-day, in-person meeting last week. The issues that my hon. Friend raises are exactly the ones that we want to work through in the course of the review, which will report to my right hon. Friend the Secretary of State in the autumn.
Ian Sollom (St Neots and Mid Cambridgeshire) (LD)
Pat McFadden
The hon. Member is right to point to the disparity of information that there sometimes is for apprenticeships compared with university courses. It is something that we need to address by improving the information available and ensuring that young people embarking on an apprenticeship are treated with just as much esteem and respect as those who undertake a university course. Information is very much part of the changes that we are pursuing.
Catherine Fookes (Monmouthshire) (Lab)
Sadly, I have been contacted by a number of constituents who are facing a hidden problem in the child maintenance system: their ex-partner has found ways of hiding their income to avoid having their monthly payments increased or paying the arrears that they owe. Can the Minister share with me the work that the Department is doing to ensure that income assessment of paying parents is accurate, agile and serves the children it is meant to support?
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
My hon. Friend will be pleased to know that a range of interventions are under way, including reviewing the child maintenance calculation across the piece. If there are specific cases that are causing her concern, she can share them with me and I will ensure that they are referred to our specialist financial investigation unit, which looks into cases where we fear that there is hidden income.
Calum Miller (Bicester and Woodstock) (LD)
Euan Stainbank (Falkirk) (Lab)
Powering Futures is a fantastic social enterprise based in Falkirk, and its oven-ready project will deliver at least £1.6 million in quantifiable social outcomes, including addressing youth unemployment in every local authority in Scotland. Funders have been identified, so will the Secretary of State meet me to discuss what support his Department may be able to offer Powering Futures?
Pat McFadden
I thank my hon. Friend for his question. I am very happy to make sure that he gets a meeting with me or another Minister in the team.
Lee Anderson (Ashfield) (Reform)
Pat McFadden
I am grateful to the hon. Gentleman for the retraining scheme that he is running for former Conservative MPs, although I am not convinced that a change of colour is really a change of heart. Let me come to the heart of his question. We do believe that if people have worked here and have contributed over the years, they are entitled to the benefits that the state provides. The logical conclusion of his position would be to deny that to many people who have lived and contributed here, sometimes for decades.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The Secretary of State will know that working in the visitor economy is so good for young people’s confidence. The extensive Cornish hospitality sector would like to be part of the youth guarantee pilot. Will he consider meeting us to discuss that?
Pat McFadden
We are all going to have busy diaries after this session. I pay tribute to the Cornish hospitality sector. My hon. Friend is right that those are great opportunities for young people, and I will make sure she gets a meeting with someone.
Mr Joshua Reynolds (Maidenhead) (LD)
Torsten Bell
The hon. Gentleman will be aware that the policy on overseas uprating is long standing under Governments of all parties, including the Liberal Democrat coalition Government. I am not going to make promises that will not be delivered. We will not be changing that policy in the near future.
Liam Conlon (Beckenham and Penge) (Lab)
Today, The Guardian published an article showing that up to 13,000 survivors of Ireland’s mother and baby homes living in Britain today could lose their compensation payments if they accept the redress scheme from the Irish Government. My campaign for Philomena’s law is backed by public figures including Dara Ó Briain, Siobhán McSweeney and Steve Coogan. It would resolve the issue by ensuring that the payments are ringfenced. Will the Secretary of State consider the merits of the case and agree to meet me to discuss it further?
Pat McFadden
The whole House will be aware that the women who lived in the mother and baby homes sometimes went through terrible experiences. I commend my hon. Friend for his campaign for some measure of justice for those women. We are examining what we can do in those cases. A small number of those women live in the UK, and I assure him that help is under active consideration.
Dr Al Pinkerton (Surrey Heath) (LD)
My constituent Michael, who is autistic, lost his personal independence payment in January when he was moved to employment and support allowance without explanation. He is attempting to appeal that decision. Given warnings from the National Autistic Society about barriers that autistic people face in navigating the benefits system, what steps is the Department taking to improve communication and staff training to better support neurodiverse claimants?
Sir Stephen Timms
The hon. Gentleman is right to raise that matter. It is fair to say that the PIP application process is old-fashioned, clunky and difficult for many. I mentioned earlier the review of PIP that is being undertaken. Members of the steering group have described applying for PIP as “dehumanising”. The health transformation programme is under way, and we are improving the process, including by making claims fully online in a trial number of postcode areas. I hope that a broadly much better approach will come out of the review.
John Slinger (Rugby) (Lab)
An important component of the Government’s drive to reduce the number of NEETs is encouraging Jobcentre Plus to work innovatively in constituencies such as mine. Will the Secretary of State join me in commending its work in organising with me a jobs fair on 16 April from 10 am till 1 pm at the Indian community centre in Rugby? Of course, he or his Ministers would be very welcome to come and see that innovation in practice.
Pat McFadden
I have already praised Rugby once during this session; let me do so a second time. I cannot promise to attend my hon. Friend’s jobs fair, but I can say that such fairs play a valuable role in bringing together employers who need staff with potential employees who need jobs. I saw that myself in the very sizeable Blackpool jobs fair that I attended a week or so ago.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
Emma from Abbots Langley in my constituency has to comply with strict timeframes for her job as a frontline worker within a local government adult care service. Despite that, the video relay service allowance that she receives as a deaf person has been reduced by over 75%, meaning that it is significantly below her working hours. Given that the waiting period for Access to Work reconsideration cases can span up to several months, how can the Minister assure my constituent that the delay will not undermine her ability to work?
Sir Stephen Timms
There is a serious problem with Access to Work delays—on 16 February, the application backlog was 66,699—which is why we have substantially increased the number of staff working on it. Those who have a job in the offing are prioritised for applications. If the hon. Member would like to drop me a line about the particular case he has in mind, I will gladly look into it.
Immigration Policy
(5 months ago)
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Madam Deputy Speaker (Judith Cummins)
Order. Before we come to the urgent question on immigration rules, I should say that time is tight today as there is an important Bill to be discussed as well as the three statements that the Government have chosen to make. However, I must put on record in the strongest terms my disappointment that the Home Secretary did not come to the House last week to make a statement on immigration. This follows a week of drip feeding announcements to the media and a major speech outside this place. It is simply not good enough. If that is the impact of the reported changes to the Government’s comms grid, it needs a rethink. It is unacceptable for important policy announcements to be made to the media before the House is informed.
I call the shadow Home Secretary.
Chris Philp (Croydon South) (Con)
(Urgent Question): To ask the Home Secretary if she will make a statement on her recently announced immigration policy.
The Minister for Border Security and Asylum (Alex Norris)
The British public expect and deserve an immigration system with order and control. In November, the Home Secretary announced the most sweeping reforms to tackle illegal migration since the second world war, and last week the Government took concrete steps to implement those necessary changes. I hear clearly the strong message from the Chair, Madam Deputy Speaker, and of course we would never mean any discourtesy to you or to your colleagues.
Features of the steps taken last week include that refugee status will now be reviewed every 30 months. At a 30-month review, refugees with a continuing need for protection will have that protection renewed, while those who no longer have a protection need will be expected to return home.
Further, we are introducing targeted measures known as a visa brake to help protect the integrity of the UK immigration system. As such, from 26 March we will refuse applications for specific visa routes from nationals of Afghanistan, Cameroon, Myanmar and Sudan, where evidence shows a consistently high number and proportion of visa-linked asylum claims. This is the beginning; other nationalities may face similar measures in the future.
Due to the number of asylum claims from nationals of Nicaragua and St Lucia, we have also introduced visit visa requirements and direct airside transit visa requirements on those countries to prevent visitor visa misuse. Those came into force on 5 March.
We have tabled further legislative changes to revoke the current legal duty to provide support to asylum seekers, instead restoring it to a power to provide support so that those who can support themselves do so. We are also amending existing conditions of support legislation to enable the suspension or discontinuation of asylum support when an asylum seeker is working illegally.
We have started a consultation on our approach to family returns, exploring reforms to the support available to families with no legal basis to remain in the UK and the approach used when enforcing the returns of families who have not departed voluntarily.
After years of chaos and crisis, it has fallen to this Government to fix the broken systems we inherited. I know this country, and I know the protection that people want to provide to those who need it—we have seen that with the Syrian scheme, Afghan resettlement, Hong Kong British national overseas passport holders and Homes for Ukraine—but we can do that only when there is confidence that the system has order and control. These reforms restore order and build the system that the British people deserve.
Chris Philp
It is disappointing the Government did not come here voluntarily to announce their policies, and I notice that there was no apology, but given the scale of their failure, this is not surprising. Since the election, 67,000 people have entered the UK illegally, a 45% increase compared with the same period before the election. Many of those 67,000 have since committed serious crimes, including murder and rape. In the last six days alone, 900 illegal immigrants have crossed the English channel. The Government’s promises lie in tatters: the gangs are not smashed; the French are not intercepting boats near the shores, as we were promised last year; and the so-called one in, one out deal saw 41,000 illegal immigrants come in across the channel last year and only 300 go out.
The Government are now resorting to bribing illegal immigrants with £40,000 per family to leave—that is more than most working people here earn in a year. British workers should not have to pay record high taxes for this Government to give their money away to illegal immigrants. It is frankly disgraceful. Instead, the Government should now agree to our plan to leave the European convention on human rights, which would enable them to rapidly deport all illegal immigrants. The crossings would then quickly stop and there would be no need to bribe illegal immigrants to leave.
Let me turn now to indefinite leave to remain. When we proposed a 10-year path, the Government voted against it, but I am delighted that they have now done yet another U-turn and adopted our policy. We do not agree with every detail in their plans, but we agree with the substance. However, I am sorry to hear that some of the Minister’s own MPs are apparently unconvinced, so let me help him. Given that the Government appear to need our votes to pass these ILR changes, we will support them. Will the Minister confirm whether the ILR changes will be made in primary legislation or via the rules? If the Government use primary legislation, that will take some time to pass, by which time the 2021 and 2022 arrivals will have ILR, so we would also support him to pass emergency legislation if he will accept that offer—
Alex Norris
It is a challenge to be lectured on the need for apologies from the architects of the Trussonomics that mean my constituents are paying more on their mortgages month on month. However, we have seen more of that mathematics from the right hon. Gentleman, because he says that spending an average of £158,000 on families in hotel accommodation who now have no right to be here because they have finished making their way through the asylum system is better value than spending £40,000 in order for them to return home and to build their lives again. I am not surprised.
The right hon. Gentleman talked about gangs, but he will know that there has been a record level of interventions—more than 4,000. He talked about our work with the French, but he will know that 40,000 crossings have been prevented. He also mentioned returns. He will know that 60,000 people have been returned under this Government, a 31% increase on his time in the Home Department. He offers criticism, but the only answer that he offers in lieu is to tear up international agreements with no sense of what change that would drive. It would merely set back that returns work and lead us back to years of debate and no action. I will not do that.
The right hon. Gentleman mentioned ILR, but of course that was not the nature of the announcement last week. That related to the closing of an important consultation on earned settlement in this country. We will be having those conversations with Parliament, and measures will be laid in the usual way in the weeks and months ahead.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Could the Minister update us on the discussions about people who arrived in this country pursuing leave for five years, or whatever period their visa stated, to get status in the UK, and who are approaching the end of that period? I have a number of constituents who will reach that point in April, and they are concerned that they will have to start all over again under a new process. Could he update the House on their position?
Alex Norris
I believe that my hon. Friend is referring to earned settlement. It has always been the case that the immigration rules in force at the point of application, rather than at the point of entry to the country, are the ones that are germane to the conditions an individual has to meet. Nevertheless, she will know that we consulted on what transition protections there could be, and that consultation closed last month. There is an important reality for all colleagues to wrestle with here. In the first five years of this decade we saw unprecedented levels of migration through legal means as a result of the Conservatives’ open borders experiment, which means that one in 30 people in this country came in during that window. That means that those people will become eligible for social housing and other benefits at the same time, which represents a significant challenge to the taxpayer and to public services. Nevertheless, that consultation took place and we will be coming back to respond in the usual way.
Mr Will Forster (Woking) (LD)
It is deeply disappointing that these changes were pushed through without an explanation in this Chamber. The same Home Secretary who emphasised the importance of scrutiny from MPs at the Institute for Public Policy Research has denied this House the chance to question her reforms. That is not good enough. Does the Minister think that reviewing each refugee’s status every two and a half years for 20 years will really fix the asylum system? That is estimated to cost £725 million over the next decade, so what plans do the Government have to fund this, and can they give a cast-iron guarantee that it will not cause the asylum backlog to further increase? Taxpayers are paying £6 million a day for asylum hotels—a legacy of the Conservative Government. Will the Minister back Liberal Democrat plans to end the processing through faster claims, such as Nightingale processing centres, or set out their own plan? Finally, will the Government confirm their plan for lifting the ban on asylum seekers working? Why have they chosen a year, not six months?
Alex Norris
I am surprised that the hon. Gentleman does not remember the statement in November on these very issues. I can assure him that one of his Front-Bench colleagues remembers it well and thinks about it quite a bit.
On the 30 months, let me be clear about how the system will work. We do not want people to come to the country and get that good news of their claim for refuge being accepted, and then be at home and not take part in British life. We are saying that if people do that, their claims will be assessed every 30 months. However, they will be offered the chance to move to a protected work and study route, which means that if they are taking part in work or study, learning the language and not committing crimes, they are outwith that. I do not recognise the points on how many decisions would have to be made or the spend—that is not accurate.
The hon. Gentleman talks about quicker decisions. Last year was the best year since records began on initial decisions, so we are operating that system effectively. Nevertheless, significant demand issues mean that applications are down significantly across the EU and up significantly in the UK. Until and unless those issues are addressed, any process changes would simply be overwhelmed.
John McDonnell (Hayes and Harlington) (Lab)
As other colleagues have said, some people came here under one system, but now the system is changing, so have the Government done any assessment of where those people are working? In my constituency, a large number of people are now in their fourth year before their cases were about to conclude, hopefully, to secure status. They work in the care sector and without them, to be frank, the care sector in my constituency would collapse.
Alex Norris
We know where these people are working because they came to this country on work visas, so we are clear on where they are. On the assessment, that was the point of the consultation that ended last month. We got more than 200,000 responses—that shows the strength of feeling. We are looking at that in the usual way, and we will come back with our plans after that in the usual way.
Sir Edward Leigh (Gainsborough) (Con)
May I quote approvingly the remarks of my constituency neighbour and Labour MP, the hon. Member for Bassetlaw (Jo White)? She said that if Labour is to win its battle against Reform, it has to do much more on illegal boats. I am sorry that she is not here, but I have warned her that I was going to ask this question. Specifically, she makes the good point that people should only be allowed to claim asylum abroad. If that were the case, surely there is an argument that if people arrived here illegally, they would not be able to claim asylum and would not be covered by the convention, and they could be detained and deported.
Alex Norris
I agree with the right hon. Gentleman in that I always agree with my hon. Friend the Member for Bassetlaw (Jo White). I have known her for a very long time, and have found that being disagreeable to her is a bad idea. The third chapter of our November statement is about safe and legal routes. The Home Secretary has talked about our first foray in that endeavour being a study route, to provide options for people to seek sanctuary in this country—to the degree to which our communities can sustain that—from outside the country, so that they do not make dangerous journeys and we do not see people crossing the channel. I think that is in everybody’s interests, and I am glad to see it drawing consensus.
Imran Hussain (Bradford East) (Lab)
My constituent came to this country after leaving a very good job and uprooting his whole family, including young children, on the promise that he would be allowed to work and contribute to our NHS, which he has done for the past four years. However, because of the Government’s harsh and hostile policies, not only is his future now uncertain, but his children may not even be able to go to university. Does the Minister not understand the hostility and unfairness of this?
Alex Norris
I think we all recognise the absolutely important role that people from outside the UK have played in the NHS for decades. My hon. Friend will know that our proposals set out that working in the NHS and other public services was one proposed way in which people could earn that route to settlement. As I have said to other colleagues, we are looking at the consultation closely. We must understand that there is a real challenge beneath this, and that the immigration rules have always been applied at the point of application, rather than at the point of entry. Nevertheless, I have heard the point that he and other hon. Members have made with vigour.
Dame Karen Bradley (Staffordshire Moorlands) (Con)
Has the Home Office made an assessment of the number of people who will be affected, and of the amount that will be saved, by moving from a statutory duty to support asylum seekers to a discretionary power?
Alex Norris
The overall supported population is 107,000. The decisions of approximately half of those people are now more than a year old, so they can access work in many cases. Similarly, a smaller proportion retain the right to work because they have overstayed their work visas. We are now doing the work of considering all those people individually to see who could work and therefore pay towards their own support costs, on the basis that if people can pay for their own support, they ought to—like our constituents—so that the cost does not fall on the taxpayer and we can reduce the burden.
Ruth Cadbury (Brentford and Isleworth) (Lab)
In my constituency, people of all faiths and backgrounds live, learn and work next to each other. Unlike many other European countries, the UK has a good reputation on integration, so can the Minister reassure me that these reforms will not lead to the UK becoming like our European neighbours with much poorer records?
Alex Norris
I absolutely can. I saw my own community in my hon. Friend’s description of hers. All our reforms seek to promote integration. With regards to illegal migration, for example, when people seek refuge and have their claim accepted, they should enter work or study, and learn the language, which is crucial for integration. We also have important work to do across Government on social cohesion, of which the Home Office has a significant component. The Secretary of State for Housing, Communities and Local Government will make a statement later about the important cohesion work to make this a brilliant, integrated and multicultural place, like Hounslow, Nottingham and the rest of the country.
Sir Roger Gale (Herne Bay and Sandwich) (Con)
There are thousands of Ukrainians in this country—most of them women and children—who are effectively stateless. They did not come here as asylum seekers; they came as refugees. They do not know whether they are coming or going. They cannot return to their country, and there is no prospect of them being able to in the short or medium term. They need to be able to determine accommodation, education and employment, so what will the Government do to create some sort of proper settled status for Ukrainian refugees?
Alex Norris
I am grateful for that question. It is really important that colleagues appreciate that the Homes for Ukraine scheme—the way by which people came to this country from Ukraine—was never intended as a settlement scheme. That was part of our engagement with the Government of Ukraine at the time. Nevertheless, as the right hon. Gentleman will know, we have extended that period of protection for longer, in line with the challenges that people are facing. We want those people to live fully while they are here, and I hear the challenges that he describes, but, as I said, that scheme was never designed as a settlement scheme.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
I thank the Minister for his response to the urgent question. On work visas and people integrating into our communities, will he say something about the abuses that we hear of—including how sponsors control the situation for these people—and about the potential damage that will be caused, especially to our public services, if the thresholds are unobtainable to many of our key workers, especially those in our health service?
Alex Norris
I absolutely recognise the characterisation offered by my hon. Friend. We know there was abuse of that scheme by unscrupulous employers. We have been working with trade unions—indeed, I met their representatives only this morning—on what a future model could look like to avoid such abuse, so that if people come to this country, they are not so precariously reliant on one employer, who therefore has a very unhelpful amount of power over them and their lives—it is an imbalance. We are looking at that closely.
Wendy Chamberlain (North East Fife) (LD)
In Afghanistan, women and girls are being persecuted on grounds of their gender. They cannot work, they cannot study, and by law their husbands can punish them however they see fit. Last year the Home Office closed safe and legal routes for Afghan women to come to the UK, and last week it closed the door for both professionals and students. The work of the Linda Norgrove Foundation means that a number of female medical students are currently studying at Scottish universities, including St Andrews. What hope is there for others to complete their studies and support the maternal healthcare crisis that is under way in Afghanistan?
Alex Norris
We take our obligations and commitment to Afghans very seriously; since 2021, over 37,000 have come here via resettlement schemes. The change last week is because we have a student visa system that is being used as a de facto immigration system, which cannot be right. Of the 3,730 visas issued to students from Afghanistan, there were 3,454 claims for asylum. That is not an orderly system. I feel the power and passion with which the hon. Lady speaks, but to accept that premise is to say that we believe universities ought to set our asylum system, which cannot be right. I hope she will recognise that, taken in concert with what we have announced about a safe and legal study route, these measures must be a much better way, so that we as a Government accountable to Parliament know who is coming, what their protection need is, what their institution is and what they are learning while they are here. I think that is the right balance.
Several hon. Members rose—
Madam Deputy Speaker (Judith Cummins)
Order. Members should be aware that I am hoping to finish this urgent question by around half-past 4, because we have three statements to follow, so please keep questions and answers short.
Afzal Khan (Manchester Rusholme) (Lab)
The Baobab Centre for Young Survivors in Exile has found that restrictive policies have had an insignificant effect on the number of unaccompanied children seeking asylum in Denmark. Instead, the discrimination and constant uncertainty make it harder for young refugees to learn, build relationships or plan for their futures. Will the Minister commit to keeping permanently the five years’ leave for unaccompanied children, to create stability for the most vulnerable asylum seekers?
Alex Norris
I can give my hon. Friend succour in that regard. Our 30-month protection announcement last week does not include unaccompanied asylum-seeking children, and we take our responsibilities to children very seriously. I have optimism in our new system. We need those children to study and then get into work, as well as to learn the language, as they have the most to benefit so that, so the protected work and study route will be particularly important for them.
Simon Hoare (North Dorset) (Con)
The Minister and the Government are to be commended for trying to wrestle with this issue, and where there can be cross-party consensus, let us build on and foster it. Lots of groups of people who come to this country generate complaints, but one group that does not are those who come from New Zealand and Australia to help our sheep farmers at shearing time. May I urge the Minister to rethink the measure in this regard, as not a single rural Member of Parliament is calling for it? Those people should be allowed in. This is an animal welfare issue, and it is important for our food security and agricultural sector.
Alex Norris
The announcements about illegal migration that we made in November were the most sweeping since the second world war, and they were unpacked last week as well, but they were not so sweeping or broad as to include sheep shearing, although I know that that has become a pertinent point for some. The Minister for Migration and Citizenship and I are having conversations with rural MPs, and we have heard clearly the hon. Gentleman’s words.
Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)
In response to the urgent question, the Minister did not mention the announcement last week that people from four countries—Sudan, Afghanistan, Myanmar and Cameroon—will no longer be able to apply for a student visa. Many students who applied for such visas and came to study here subsequently found that the situation in their country had materially changed, so they then applied for asylum. I am very concerned that when things materially change, we will change the policy on student applications. We are seeing a war in the middle east now, and the situation in Ukraine, and I am concerned that this is now the Government’s policy. We should take it in good faith that people who come here to study do so—that they study and contribute, and that they can go back to their countries to contribute there when things have settled. We should not be cutting off student visas for people from countries in conflict.
Alex Norris
I hate to correct my hon. Friend, but I did mention those countries. No matter what reforms we announced in November and the impact of any element, everybody will have their claim individually assessed on the basis of their own individual circumstances. If someone has come here for a three-year course, I accept totally that the circumstances at home could have materially changed during that period. I say gently to my hon. Friend that when that is happening, in virtually every case, those systems cease to be merely a study route and become a de facto asylum route, and it is better that these routes are organised and co-ordinated by the Government rather than academic institutions.
Kirsty Blackman (Aberdeen North) (SNP)
The Minister is unhappy that we are conflating two different announcements, but the issue is that the Home Secretary has not actually made an announcement about this matter—she has not come to the Chamber, set out the position and made an announcement. The Government are planning to make these changes without parliamentary approval, because the changes will not come before the House for debate. Will the Minister commit to ensuring that all hon. Members can have a voice, that the changes are not made through a negative statutory instrument, and that MPs from across the House will be able to make our points clear in order to ensure that the goalposts will not be moved after refugees have arrived here?
Alex Norris
I hate to disagree with the hon. Lady, but I am not unhappy at all. The way I look at it, I get to give the answers, and right hon. Members and hon. Members get to ask the questions—I do not get to do both—so colleagues can raise whatever issues they wish to raise. On her point about scrutiny of the policies, as she will be aware, there has been a public consultation that with very good participation. There were two statements in November, one relating to restoring order and control—our asylum policy statement—and one relating to earned settlement, and colleagues had the opportunity for debate then. She will know that there has subsequently been at least one debate in Westminster Hall; I am sure there will be more. I have no doubt that colleagues will find parliamentary opportunities to debate these policies and any others of the Home Department.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
On the issue of indefinite leave to remain, the Minister said from the Dispatch Box that there will be “close consideration” of the public consultation that concluded last month, and yet last week the Home Secretary said that she is determined to push ahead with those changes to retrospective indefinite leave to remain. Which is true? This is about people who are working here and people who are contributing in many ways, not just financially.
Alex Norris
At the outset of the consultation, we were very clear that there were certain non-negotiable elements that we had decided prior to the consultation, including moving to a system with a default 10 years that could be reduced to five on the basis of the people’s contribution to their community and in relation to speaking English. Within the consultation, there were also questions about transitional protections. We are looking at all those issues in the round and I do not see an inconsistency in the two positions.
Sir Desmond Swayne (New Forest West) (Con)
Where will we send an illegal entrant with no right to remain but whose country of origin is unsafe?
Alex Norris
The right hon. Gentleman will know that this Government have removed 60,000 people with no right to be in this country—a 31% increase on our predecessors. It is not possible to effect return in every case; everybody knows that. There are certain countries to which we are unable to do so. In those cases, we are not effecting returns, but we have to have a system that has a backstop of removal. I think that is an accepted principle.
Tony Vaughan (Folkestone and Hythe) (Lab)
I acknowledge the considerable challenge that the Government have in winning back public confidence in the asylum system. The Home Office published a report last year concluding that there was insufficient evidence that restrictive asylum policies reduce claims, so will the Home Office publish evidence to show that cutting refugee leave from five years down to 30 months will deter claims in the UK? Does the Minister accept that a substantial settlement pathway of 20 years-plus is also unlikely to deter those claims?
Alex Norris
My hon. and learned Friend knows that we bring forward our impact assessments alongside the policies as we publish them, and as we seek to debate or implement them. He knows about the case that we made in our document in November as well. With regard to whether these policies work, I would gently say that Germany and Denmark have a similar period of time for protection, and both are seeing reductions in asylum claims. In the UK, there have been over 80,000 asylum claims for the last two years; for the previous decade, claims averaged 27,500. I do not think we can say that no change is an option.
Claire Young (Thornbury and Yate) (LD)
My constituent is a hard-working taxpayer, but his wife and daughter remain in Iran because the family reunion route has effectively been closed since September. Does the Minister accept that failing to provide controlled, safe and legal routes not only lets down families like this one, but fuels the use of dangerous routes?
Alex Norris
That route is paused for now. The hon. Lady will know that over the last four or five years, we have seen a huge increase—fivefold, I think—in the use of that route. Given the significant changes, it is right that the Government ensure that the system is effective. We are looking at it closely and we appreciate the importance of family reunion. She will have heard what I said about safe and legal means.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
Given these changes, what changes to the national referral mechanism in relation to modern slavery does the Minister expect to see? What does the switch from a duty to a power for housing people waiting for asylum mean for the national dispersal method, including for places that have routinely had more people than was agreed, such as Stoke-on-Trent—and, if there are no changes, will he look at funding integration work in those places?
Alex Norris
My hon. Friend will know about my work on modern slavery over my years in this place. We know that is a constantly moving picture. We want to make sure that the protections for victims of slavery are robust—I think there is a consensus here on that—and that the system is being used properly. I also take his point on dispersal. The Department’s view is that there should be full dispersal, meaning that communities share the challenge across their means. With regard to payments, we pay £1,200 per head to help that integration work.
Lewis Cocking (Broxbourne) (Con)
Paying illegal asylum seekers £40,000 to leave the United Kingdom is a kick in the teeth for my hard-working constituents. Why are we not using that money to build a detention centre so that we can detain and immediately deport those who arrive in this country illegally?
Alex Norris
See, this is funny, Mr Speaker: when the hon. Gentleman was in my office saying he wanted the hotel in his constituency closed, he was saying, “Make sure we get a grip and get them closed”, but then when he sees the proposals to do so, he does not want them. He cannot have those two things together.
Damien Egan (Bristol North East) (Lab)
We see reports of armed criminal gangs operating with confidence along the northern coastline of France. My constituents ask what the French authorities are actually doing to deal with the issue. Can the Minister give an update on the ongoing discussions that he is having with his French counterparts? What will change on the back of these reforms?
Alex Norris
This is an important point. The gangs are well embedded; they had a head start of a good six-plus years on this Government. It is not easy for the French authorities, which we work very closely with. Through the Sandhurst agreement, we have seen 40,000 preventions, but we are in active negotiations about where we go next to tackle that pernicious threat.
Carla Denyer (Bristol Central) (Green)
Aside from the cruelty of asking people who have fled war and persecution to re-justify their already-recognised refugee status every 30 months, how does the Minister plan to pay for this huge additional administrative burden? As we have heard, the Refugee Council has estimated that it will cost £725 million over 10 years, but he contests that estimate. Perhaps he can tell us how much he thinks it will cost, and why—when our NHS and schools are crying out for funding—he is spending taxpayers’ money on scapegoating migrants instead.
Alex Norris
I gently say to the hon. Lady that we will not be asking those who come to this country, have a protection need, enter into work and study, learn the language and do not commit crimes to re-justify their protection need. I think that strikes the right balance between the taxpayer and the individual, and I do not recognise or accept the figures that she cites. Turning to the issue of cost, we must recognise that we in this country support a significantly bigger supported population than we have traditionally. That number needs to reduce—we need to break that attractiveness—which is why we have proposed these reforms.
Neil Duncan-Jordan (Poole) (Lab)
Last week, the Home Secretary mentioned that our immigration policy needed to be based on the idea of fairness. Is it fair to change the rules on indefinite leave to remain for those who are already making a contribution to our society and came here under the old rules? Will the Minister give those individuals some assurance that they will get some transitional protection?
Alex Norris
I am grateful for that question. On fairness, the applicable rules have always been those in force at the point of application, rather than at the point of entry, so I do not accept that that in itself represents a lack of fairness. Nevertheless, I have heard the point that my hon. Friend and other colleagues have made, which is why we carried out the consultation in the way we did.
Sir Julian Lewis (New Forest East) (Con)
There have often been occasions on which somebody has leaked in advance the contents of a statement that they are going to make to the House of Commons, or part of its contents, but this is the first time I have seen a total revelation in the press of something that the Government had no intention of making a statement about to the House of Commons. Why is that, and what will these measures do to deter people from breaking into this country illegally, with it then being impossible to deport them?
Alex Norris
On the deterrence point, as I have said, we are receiving applications at an unprecedented level, and at a time when our European Union counterparts are seeing fewer applications. There is an attractiveness to this country, which is why we are changing the protection package and carrying out record levels of enforcement against illegal working. Those are the changes we are making to break those pull factors to this country.
Turning to announcements, we would of course mean no discourtesy to the House, and the right hon. Gentleman will have heard the apology I made at the outset. However, we stated our policy in November, and what we are now doing is building it out.
Ben Goldsborough (South Norfolk) (Lab)
South Norfolk expects our immigration system to be fair, open and transparent. The one problem we have come across, unfortunately, is that there is a lot of confusion online, as has been expertly shown by the shadow Home Secretary today. Can the Minister clarify that the process we are looking at will save the taxpayer £20 million, instead of spending money to keep open asylum hotels?
Alex Norris
My hon. Friend is exactly right. With regard to family returns, I hear from Conservative Members that they would rather pay a family with no prospect of staying in the country an average of £158,000 to stay in a hotel, rather than pay that £40,000. There are 150 families in the pilot; if we were to be successful with all of them, that would save the British taxpayer £20 million. I think we would be doing right by them in doing so.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Yesterday we marked International Women’s Day with the statistic that women hold fewer than two thirds of the rights enjoyed by men globally. Afghan women are already barred from secondary and higher education, and they now face further violence and discrimination under the Taliban’s new criminal regulations. What is the Secretary of State doing? She is stopping them from applying to study at our universities. Does the Minister not agree that the aim of ending violence against women and girls extends beyond borders, and that his Government have a moral duty to help women fulfil their potential in safety?
Alex Norris
I totally agree, which is why we have offered sanctuary to over 37,000 Afghans via resettlement schemes since 2021, as well as those who have come via the asylum system. I do not think that the point of difference between the right hon. Lady and me is about the substance; it is about whether those sorts of routes to provide sanctuary to people who want to study and have their protection needs met should be run by universities on our behalf, without the scrutiny of Parliament, or by the Government themselves. I cannot agree with her on that.
Matt Bishop (Forest of Dean) (Lab)
I thank the Minister for his updates. The Home Secretary was absolutely right last week that the public expect a controlled and orderly immigration system. I fully support her plans, but can the Minister say more about how quickly the measures announced will be implemented, and how the Home Office will ensure that they are properly enforced in practice?
Alex Norris
I know that the public are eager to see change. We were able to make some immediate changes in November when we announced the policies, and last Thursday we tabled statutory instruments that we hope will effect further changes. Similarly, we made changes to the immigration rules last week, and we will do so at future opportunities when the need arises. Of course, where there is the need for primary legislation—particularly on important appeals reform—that will come in front of the House in the usual way.
Dr Kieran Mullan (Bexhill and Battle) (Con)
The only country that has successfully tackled illegal boat crossings similar to ours is Australia, and it did so not by paying people £40,000 per family to leave, but by sending them to a safe third country. I noticed that the Minister completely failed to answer the question from my right hon. Friend the Member for New Forest West (Sir Desmond Swayne). Does the Minister accept the reality that the only way to tackle this problem will be to get on with having a safe third country to deport these people to?
Alex Norris
I follow the hon. Gentleman’s work. He always says no to large sites and no to hotels, and then proposes fantastical third countries that he is not capable of naming. Ultimately, this is the choice: do people want fantasy, more empty rhetoric and argument, or do they want change and action with this Government? I know what I choose.
Lewis Atkinson (Sunderland Central) (Lab)
Along with Home Affairs Committee colleagues, I spent time in northern France last year seeing the challenges of intercepting small boats. The French maritime doctrine has clearly been an obstacle to adopting the more assertive tactics that my constituents wish and expect to see. Can the Minister outline the progress in getting the French to change their tactics, and will he make the continuation of Sandhurst funding dependent on that?
Alex Norris
From my perspective, with regards to action in northern France, what works is what works. It is a matter of record that we have enthusiasm about maritime doctrine-type tactics, but there are other things prior to that which need to work as well, particularly our work with the French to disrupt organised crime, which is having a significant impact. My hon. Friend mentions Sandhurst, which we are in the process of negotiating. I can absolutely assure him that all of that will be seen through the prism of bringing forward effective action.
Manuela Perteghella (Stratford-on-Avon) (LD)
If the Government are serious about stopping dangerous small boats crossings and smashing the gangs, there must be safe routes for those fleeing war and persecution. I remind the House that bombs are falling right now in the Gulf and in the middle east. What progress has the Home Secretary made in establishing safe and legal routes for refugees, so that people do not risk their lives crossing the channel?
Alex Norris
The hon. Lady will know from our announcements in November that we believe in safe and legal alternatives. She will know that the “one in, one out” work with France is itself a safe and legal route. She will also know of the announcements we have made about a refugee study route. We are getting on with those things, alongside the difficult decisions we have made in front of Parliament in relation to the balance in disrupting that model and changing those behaviours from irregular and dangerous to safe and legal.
Adam Thompson (Erewash) (Lab)
Like many towns, Long Eaton is home to an asylum seeker hotel. It was gifted to us by the last Tory Government, but I know the Minister is doing everything in his power to close it as soon as possible. A secondary effect of the Tories’ hotels, however, is illegal work associated with the exploitation of local asylum seekers. Can the Minister elaborate on how measures announced recently will help to end illegal work in Erewash?
Alex Norris
We know from the materials of the traffickers that illegal working is one of those advertising features used to suggest to people that they should try to come to the UK. The impact of that is then felt in communities such as Long Eaton, and it means that we have got hotels open, but we are changing that equation. We have extended the powers around illegal working to the gig economy in the Border Security, Asylum and Immigration Act 2025, which is now coming into force. The message is clear: people will not be able to employ people illegally, and people will not be able to work illegally.
Dr Andrew Murrison (South West Wiltshire) (Con)
We learn from the press, if not from the Minister, that up to £40,000 of taxpayers’ money will be used to reward illegal activity. Does that not make a mockery of the law? Would it not be far better to withdraw from the European convention on human rights, so that we can deport people who have no basis to be here?
Alex Norris
It is tricky, because the right hon. Gentleman talks with power and vigour that was lacking from his colleagues in their 14 years in government. Indeed, he may well know, as colleagues on the Opposition Front Bench certainly know, that they paid people to leave the country, because it is in the taxpayers’ interest. There are choices between measures that work and measures such as leaving the ECHR, which are fantastical and would just lead to years and years of arguing, disruption and no impact.
Tom Hayes (Bournemouth East) (Lab)
Some say that this Government are controlling our borders in spite of our progressive values, but no, we are securing our borders because it is in line with our Labour values. In my constituency, residents want to feel safe, and they do not feel safe with our borders not yet controlled. In wanting to tackle illegal ads, will the Minister set out what this Government are doing to stop illegal working, particularly within Deliveroo, Just Eat and Uber Eats??
Alex Norris
My hon. Friend is right, and I make exactly the same assessment of the position in Nottingham that I make of the position in Bournemouth. Those are people who leant into the Afghan scheme, the Syrian scheme, the Hong Kong British national overseas scheme and the Homes for Ukraine scheme, but who are rightly fed up about the three hotels in Bournemouth and the impact on their community. My hon. Friend’s vigour in working for the closure of those hotels is well known. As for the question of illegal workers, to prevent them from using those facilities we have introduced new punishments. People who work in the gig economy and are using the substitution of labour to circumvent legal working rules will be caught and punished, and we are doing that at record levels.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
At lunch time today I chaired a meeting of the all-party parliamentary group on fisheries, during which we heard about existential threats to the fishing industry across these islands. Will the Minister agree to attend a meeting of the APPG so that he can hear at first hand about some of the threats posed by his party’s immigration policies?
Alex Norris
I am sure that the subject of that meeting was not how to help people to work illegally in the fishing industry, which, as the hon. Gentleman knows, we are discussing today, but of course I am always open to meetings with colleagues to hear about their important work and what they want to see from the Government.
Shaun Davies (Telford) (Lab)
I welcome the Government’s focus on closing the hotels, and I am delighted that the last remaining hotel in my constituency that was opened by the Conservatives will be closing in the coming weeks, but will the Minister recommit the efforts of the Home Office to recovering the excess profits made by the providers of the contracts that were so badly negotiated by the last Government?
Alex Norris
My hon. Friend has timed his question perfectly, enabling me to say, just as the Chancellor joins me, that we have recouped tens of millions of pounds from those contracts, not to mention reduction amounting to hundreds of millions as a result of our improvement in relation to hotels. Nevertheless, all those hotels will be closed—opened by the Tories, closed by Labour.
Dr Luke Evans (Hinckley and Bosworth) (Con)
Raising that point was useful, because many of the migrants are going into houses in multiple occupation, which is a real problem in my constituency. Along with my Liberal Democrat-run council, I have raised concerns not only about the impact on our community, but about where people are being placed. Those concerns have been raised with Serco, which is ignoring them. Will the Minister meet me so that I can discuss them with him? Those in my community are extremely concerned.
Alex Norris
Of course I will. I want to see equitable dispersal, and I am desperately trying to close the gap between the Home Office and local government so that there is better information sharing. Local authorities should not be surprised: there should be an early conversation about possible sites in their communities, not because they will have a veto but because they may have a better way of doing things.
Chris Vince (Harlow) (Lab/Co-op)
I know that the Minister will agree that it is important for us to have a working and fair immigration system, but that, sadly, is not what we inherited. Constituents of mine in Harlow are rightly concerned that people who come to settle here should be law-abiding. Does the Minister agree that if they are not law-abiding, they will not be settling here?
Alex Norris
I totally agree. My hon. Friend can assure people in Harlow that every element of our system will incentivise people to come here and follow the rules, and if they do not, that will be a bar to citizenship. It will bar them from getting what they want from our settlement system. That is the right balance for the British people to ensure that our generosity is not abused.
Ayoub Khan (Birmingham Perry Barr) (Ind)
I am very perplexed, and indeed I suspect that most Brits will be perplexed. We have more than 650,000 job vacancies, of which more than 165,000 are for unskilled workers. Why are we not dealing with the refugees—processing their applications, giving them training, putting them into jobs and enabling them to earn some money, rather than paying their hotel costs?
Alex Norris
The hon. Gentleman will have heard earlier that we in the Home Office are making decisions faster than ever without affecting the grant rate. We are making those quick decisions so that those who need protection can build their lives in this country. The hon. Gentleman may well have heard Question Time earlier today, when we were talking about the number of young people in Britain who are out of work. I cannot accept that so many young people in Britain can be out of work and the Government can have no aspiration for them to fill roles.
Bradley Thomas (Bromsgrove) (Con)
My constituents want the Government to get off their back and get on their side, rather than using their hard-earned taxpayers’ money to spend up to £40,000 on removing illegal asylum seekers. Will the Minister rule that out?
Alex Norris
The hon. Gentleman has heard what I have said to his colleagues: the choice is between paying £158,000 for those families to live in hotels and paying £40,000 for them to leave the country. I do not know whether he needs a calculator, but I think that is a good equation.
Christine Jardine (Edinburgh West) (LD)
Can the Minister tell us what modelling those in the Home Office have done in respect of whether these visa bans will actually affect the backlog of refugee and asylum seekers? Have they looked at the impact on local services in constituencies such as mine? People running care homes have told me that they are losing vital workforce members and may not be able to stay open.
Alex Norris
Of course we take a lens on reform. The hon. Lady will know that those seeking asylum cannot work in such environments, so they would not be germane to that conversation. We look very closely at the impacts of our policies and publish reviews at the appropriate moments.
Greg Smith (Mid Buckinghamshire) (Con)
The concept of paying someone who has come here illegally £40,000 to leave will stick in the throats of all taxpayers in this country. Notwithstanding the arguments that the Minister has put forward, what assessment has he made that making an offer of 40 grand will not act as a huge pull factor and cause more people to come here to collect our cash?
Alex Norris
First of all, I can offer the hon. Gentleman some degree of comfort: this is a targeted pilot at this stage. It cannot act as a pull factor, because people will not be eligible for it. Other countries that offer money, including Denmark, are seeing their numbers go down, which can also give him a degree of comfort.
Dr Ben Spencer (Runnymede and Weybridge) (Con)
The Minister failed to answer the questions from my right hon. Friend the Member for New Forest West (Sir Desmond Swayne) and my hon. Friend the Member for Bexhill and Battle (Dr Mullan). In the absence of a third-country scheme, to where do we remove people when their countries are not safe or there are no returns agreements?
Alex Norris
As I have said to the hon. Gentleman’s colleagues, the Rwanda scheme would not have removed those people; it would have removed a tiny proportion, at an eye-watering cost. We are ramping up removals of those who have no right to be here. If the hon. Gentleman is really saying that he wants to rip up the ECHR because he wants to send people back to countries that are not safe, he should name which ones.
Vikki Slade (Mid Dorset and North Poole) (LD)
Alongside last week’s announcements was the most welcome announcement that BNO passport holders will not be required to hold B2 language qualifications, but Hongkongers resident in Wimborne are really concerned about the income threshold. Can the Minister confirm whether that is also being exempted?
Alex Norris
As I have said to other colleagues, I can confirm that the income threshold, and particularly how it is resolved at a family unit level, was part of the consultation. We have had more than 200,000 replies, and we are looking at them closely.
Shockat Adam (Leicester South) (Ind)
Over 330,000 people have signed a petition urging the Government to scrap the plan to increase the ILR period from five years to 10 years, especially the retrospective nature of it. This will have a detrimental effect on the core of our society, especially the NHS, and will exploit workers, who will be vulnerable to exploitative bosses. Does the Minister agree with many of his Back Benchers that the Government must stop this cruel proposal taking effect?
Alex Norris
As the hon. Gentleman knows, and as I have said previously, the governing criteria for settlement have always applied at the point of application, rather than at the point of entry. He will also have heard from me that one in 30 people in this country came during the last three or four years, so a significant problem must be resolved in terms of pressure on public services and fairness to the British taxpayer. That is why we are looking at this issue so closely.
Jim Shannon (Strangford) (DUP)
Some time ago, there was a debate on fisheries in this Chamber. The Minister who replied for the Department for Environment, Food and Rural Affairs said that she would meet those of us who represent fishing villages. There is a need for visas for fishing crews, and it will not cost this country any money to have them here, as they contribute to it. Will the Minister please agree to a meeting?
Alex Norris
Whether it is with me or the Minister for Migration and Citizenship, I will ensure that a meeting on fisheries takes place.
Mr Adnan Hussain (Blackburn) (Ind)
My constituents are deeply alarmed that retrospective changes to ILR could leave long-term residents living in fear of deportation. Does the Minister accept that leaving families across this country in a state of profound uncertainty risks undermining the very sense of security and fairness that our immigration system is supposed to uphold?
Alex Norris
I cannot accept that. The hon. Gentleman will have seen that we were very clear in our settlement consultation that coming here, working hard, contributing, paying taxes, learning the language, taking part in the community and not committing crimes will get someone the best route to settlement. I think that gives people the security they need.
Mr Speaker
I believe the Minister had a telling-off earlier, and I just want to reiterate the problem. The scrapping of the communications grid may be of benefit to the Government, but it is not beneficial to this House. This House does not want to be drip-fed for seven days via the news; the Government should come here first. We have got it the wrong way round. I hope the message goes back that this should happen no more.
Middle East: Economic Update
(5 months ago)
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The Chancellor of the Exchequer (Rachel Reeves)
With permission, Mr Speaker, I will make a statement about the Government’s preparedness and economic response to the conflict in the middle east. Let me begin by paying tribute to our armed forces, and by expressing my concern and sympathy for the British citizens whose lives have been disrupted by the conflict so far. I understand the anxiety felt by families and businesses during these incredibly uncertain times. This conflict affects us all, and we must respond to it.
As I have demonstrated time and again, I will take the necessary decisions to help families with the cost of living and protect the public finances. I am clear-eyed about my response to the current situation. My economic approach will be both responsive to a changing world and responsible in the national interest. The economic impact of the situation in the middle east will depend of course on its severity and its duration. The movements we have already seen are likely to put upward pressure on inflation in the coming months, but I also want to confirm to the House that our financial markets are functioning and that I am in regular touch with the Governor of the Bank of England.
This afternoon, I spoke with G7 Finance Ministers, setting out my priorities for the international co-operation needed. First, we are calling for immediate de-escalation and a return to the diplomatic process. Secondly, we must guarantee the security of vessels passing through the strait of Hormuz. Thirdly, I stand ready to support a co-ordinated release of collective International Energy Agency oil reserves. Fourthly, the UK will play its part as the global hub of maritime insurance. I am meeting the chair of Lloyd’s of London later today, when we will discuss how best to support the continued passage of maritime trade.
I want to assure the country that the fundamentals of Britain’s economy are strong. Every step that I have taken since the election has built our national resilience: stability in the public finances; investment in infrastructure in both defence and energy security; and reform to our economy. Last week, I updated the House about our progress in delivering that plan. We have cut inflation so that it is now at 3%, a lower base than at the outset of the Russia-Ukraine conflict. I have prioritised economic growth to drive up living standards and I have stabilised the public finances. We have already reduced the deficit by £20 billion since last year, from 5.2% to 4.3% of GDP. We are due to reduce borrowing more over the rest of this Parliament, and by more than any other G7 economy, and I have increased our financial buffers, confirmed last week by the Office for Budget Responsibility.
I know that families and businesses will be concerned about the impact of this conflict on them, so I want to set out the action we have already taken and will take to protect them. I am prioritising energy security, investing in clean, home-grown energy. Our contracts for difference are already protecting consumers, ensuring that generators of low-carbon energy pay money back into the system when the wholesale prices are high, shielding bill payers from fossil fuel price shocks. I can confirm to the House that, in the coming days, we will publish the Government’s response to the Fingleton review of nuclear regulation to build nuclear power more quickly.
Our energy system is now more secure than it was at the outset of the Russia-Ukraine conflict. In 2025, the UK imported 17% less gas than we did in 2021. While gas generation is estimated to have set the wholesale price of electricity in Britain around 90% of the time in the early 2020s, that has now fallen by around a third. As a result we are less reliant on and less exposed to volatile international energy prices than we were at the outset of the Russia-Ukraine conflict, and that is welcome.
I recognise the role that North sea oil and gas will play in our economy for years to come. Last week, I met North sea industry leaders to discuss their role in jobs, investment and growth, and in energy supply. The energy profits levy currently remains in place and the electricity generator levy will also be activated if prices remain at high levels. I have set out the details of our successor regime to the energy profits levy, the oil and gas price mechanism, balancing providing certainty to business with fairly taxing windfall profits from energy companies.
I have also taken direct action on energy bills. Our supercharger discount on business electricity is increasing next month, cutting costs for around 500 of the most energy-intensive businesses by an additional £420 million per year. We are supporting the lowest-income families by investing £15 billion in our warm homes plan to improve the energy efficiency of people’s homes and reduce their bills, and, through the warm homes discount, taking £150 off bills for 6 million of the lowest-income households—a doubling of the number of people who will receive the warm home discount compared with the plans the previous Government had. That is in addition to the £117 drop in the price cap that Ofgem has confirmed from next month, thanks to the wider action on bills I took in the Budget.
I want to be clear to families at home that despite the movements we have seen in energy prices in the last few days, the price cap for domestic bills for April will not change, giving families immediate certainty on their bills until at least the end of June. However, I recognise that households who use heating oil face unique challenges, so I have asked the Financial Secretary to the Treasury to lead discussions with officials and rural and Northern Irish MPs to explore further action we can take. Those meetings will happen on Wednesday.
The current conflict only increases the importance of the action I took at the Budget to reduce energy bills. A rapid de-escalation in the middle east remains the best way to protect us from rising energy bills, but as the situation continues to unfold my priorities will continue to be helping families with the cost of living and protecting the public finances. I am also taking action to ensure that people pay the lowest possible price at the pump. In November, I extended the 5p per litre cut in fuel duty for a further five months and ensured that fuel duty will not increase in line with inflation this year. Petrol is more than 8p per litre cheaper today than it would have been under the plans we inherited at the election. That discount increases to 11p per litre next month once that extension takes effect.
The new cheap fuel finder that I confirmed at the Budget is currently being delivered, helping consumers find the cheapest price for their fuel. Almost 90% of petrol retailers have already registered for this and last week I instructed my officials to accelerate the integration of the cheaper fuel finder with map applications. This week, I am meeting petrol forecourt operators and I will not hesitate to call out retailers who fail to provide data to the fuel finder. I am clear that the best way to keep prices at the pump low is rapid de-escalation, and I will continue to monitor prices as the situation develops. I have also asked the Competition and Markets Authority to be vigilant across prices, including essentials such as road fuel and heating oil. Let me be absolutely clear: I will not tolerate any company exploiting the current crisis to make excess profits at consumers’ expense.
I am proud to be the Chancellor who is delivering the biggest uplift in defence spending since the end of the cold war. I am committed to giving our military the resources they need. That is why I can confirm today that I approved access for the Ministry of Defence to the special reserve to deploy additional capabilities in the middle east, meaning that no net additional costs of these operations will be funded by the MOD, but instead will be funded by the Treasury.
We do not yet know how long the conflict will last or what further action will be required, but it is my duty to be responsive in an uncertain world and responsible in the national interest to protect the public finances and help families with the cost of living. That is what the Prime Minister is doing and that is what I will continue to do. I commend this statement to the House.
Sir Mel Stride (Central Devon) (Con)
I thank the Chancellor for advance sight of her statement and add the Opposition’s firm support for our armed forces.
As the Chancellor has made clear, these are very serious and concerning times, and developments in the middle east are already having profound consequences for our economy. Oil prices have surged above $100 a barrel for the first time since the 2022 energy crisis. That alone is enough to have huge knock-on effects for households and businesses: families filling up their car will already have noticed petrol prices increasing, and fixed-price energy tariffs have either been increased or pulled from the market. We are already seeing British households worse off as a result of this conflict.
I am grateful to the Chancellor for updating the House on her meetings with other G7 Finance Ministers, and I welcome her commitment to supporting action to ease pressure on global supply by using strategic oil reserves. That, however, will go only so far.
As the Chancellor has said, the longer this conflict continues, the more likely it is that we will see a sustained period of higher prices. That, in turn, will have implications for interest rates and our cost of borrowing. The longer that lasts, the more likely it is that higher inflationary expectations will become anchored. If that happens, monetary policy will need to adjust accordingly, which may mean higher mortgages for homeowners who have only just begun to see some relief.
Gilt markets have already been responding to these events, which could mean that the forecasts we were given just last week from the Office for Budget Responsibility end up looking very different. We must continue to monitor developments closely.
Where the Opposition clearly differ from the right hon. Lady is in her approach to the economy in the run-up to this crisis, as her gross mismanagement has left us far more vulnerable than would otherwise have been the case. She refers to inflation, which was bang on target when we left office; thanks to her choices, though, it rose back up to almost 4% last year—the highest in the G7—and remains elevated, which is far from ideal given the threat of a significant further spike in energy prices. Extraordinarily, the Chancellor has just now reconfirmed that the Government will press ahead with a rise in fuel duty later this year.
Borrowing is running higher than was forecast when the Government took office—we are spending well over £100 billion a year on debt interest alone. This leaves us far more vulnerable to rising