(1 day, 8 hours 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.