Oral Answers to Questions
Alison McGovern Excerpts(1 day, 15 hours ago)
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Alison Griffiths (Bognor Regis and Littlehampton) (Con)
The Minister for Employment (Alison McGovern)
The unemployment rate is 4.7%—well below the historic high of 11.9% in 1984—but no one should ever be complacent about unemployment, especially considering the significant jump in economic inactivity under the Tories. That is why I am pleased to tell the House that employment is up by 725,000, to 75.3%, since July 2024 and inactivity is down by more than the rise in unemployment—a reduction of 400,000.
Alison Griffiths
On the House of Commons dashboard, the data for my constituency shows that universal credit claims increased dramatically by 20% in just one month. Claimants increased by over 2,000—from 10,344 to 12,415—from May to June this year. Given this recent increase in economic inactivity, what evidence does the Minister have that the Government’s employment support programmes are successfully moving people from out-of-work benefits into sustained employment?
Alison McGovern
The Conservative Government unified in-work and out-of-work benefits, so universal credit is also an in-work benefit. As I mentioned some moments ago, the legacy of the Tories on economic inactivity is now seeing a welcome reversal, with economic inactivity down by 400,000.
Sarah Russell (Congleton) (Lab)
The Minister for Employment (Alison McGovern)
As my hon. Friend knows well, improved employment is at the heart of our approach to child poverty, and that is why reductions in economic inactivity and improvements in employment will be part of our child poverty strategy that is to be published very soon.
Tim Farron (Westmorland and Lonsdale) (LD)
Does the Minister accept that the Government’s increase in national insurance contributions has had a negative impact on employment in communities such as ours? Cumbria Tourism assesses that 37% of its businesses have cut staff as a consequence and 33% are freezing recruitment. Is it possible that the Government will get less from this tax rise than they expect, and that in doing this they are doing grave harm to the Cumbrian tourism economy and many other parts of our economy?
Alison McGovern
I speak to many businesses, and since coming into office, the Secretary of State and I have totally changed our approach with employers. That new approach includes a partnership with UK Hospitality, providing specific employment support to get into hospitality, and a hospitality passport so that people can evidence their qualifications, which we and UK Hospitality believe can help those people who really need a chance in life to get a good start in the hospitality sector.
Jessica Morden (Newport East) (Lab)
After visiting businesses in Newport East this summer, I know that there is a high demand for companies—including Thames Valley Construction, which I visited—to train more construction workers locally, and I was pleased to see the Government make the announcement in the summer on training 40,000 more people. Can Ministers tell me what conversations they are having with the Welsh Government on working together to do this?
Alison McGovern
We will not build the much-needed 1.5 million homes without bringing people into the construction sector. That is why, as part of our new approach for employers, we have partnered with the construction sector and set up specific schemes with them. We are also talking directly across Whitehall with other Government Departments and with the sector about moving people into great jobs in construction.
Helen Whately (Faversham and Mid Kent) (Con)
Thank you, Mr Speaker. It is good to see you back after the summer recess.
The hon. Lady can fling around the stats all she likes, but the facts are clear and bleak. Under her watch, youth unemployment has gone up; nearly a million young people, and rising, are not in work or education, including over 40,000 more young women. A generation of brilliant young people are going on to benefits, rather than into work. The Government’s jobs tax and their unemployment rights Bill were guaranteed to reduce opportunities for young people. We have had the winter fuel U-turn and the welfare U-turn; why not a U-turn to help young people?
Alison McGovern
The damage was done to the coming generation under the Tories. We failed the pandemic generation, who put a shift in—they stayed at home and gave up their social lives to save older loved ones. I could talk at length about our youth guarantee, our trailblazers and the work we are doing to expand youth hubs, but actually, it sticks in my craw to hear the Conservatives, who failed this generation, harp on about it from that Dispatch Box.
Joe Morris (Hexham) (Lab)
Michelle Scrogham (Barrow and Furness) (Lab)
Alison McGovern
Given the significant investment, the DWP has partnered with BAE and the nuclear sector to promote a variety of career pathways, including roles across its supply chains. We are also working within BAE’s new “The Bridge” hub in Barrow—a collaborative space offering employment advice and support from BAE Systems and a range of local employers and organisations to connect talent with locally based jobs. Further, in Barrow, our youth hub is run in partnership with Brathay Trust and Project John, supporting young people holistically to meet employers and develop their talents.
Michelle Scrogham
I have been impressed by the work being done in Drop Zone in my constituency. It runs a variety of projects for young people, including specialised education for those with additional needs, mental health support, and support for the transition back into education, employment and training. But young people in Barrow and Furness still face difficult challenges from a long legacy of underfunding. The youth trailblazer scheme is already making a difference in some constituencies after just a few months. Will the Minister meet me to discuss how we can tailor the scheme to specifically target young people in Barrow and Furness?
Alison McGovern
Barrow has unique circumstances, challenges and opportunities, and it is important that all parts of the Government address those unique opportunities and challenges in Barrow. I would be happy to meet my hon. Friend to further discuss what we are already doing and what more we can go on to do to ensure that young people in Barrow have the best possible chance in life.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Natasha Irons (Croydon East) (Lab)
The Minister for Employment (Alison McGovern)
In Croydon East, young people aged 18 to 21 will be helped by the youth guarantee trailblazer being delivered by the Greater London Authority. It will strengthen early identification and outreach to engage young Londoners who are not, or risk not being, in employment, education or training, by linking them to enhanced support, employment and education opportunities and the essential services that they need. I am glad that the DWP will continue to support communities in Croydon East by hosting an information stall at my hon. Friend’s upcoming advice fair in New Addington.
Natasha Irons
Croydon is London’s youngest borough. Given that 6.6% of people aged 16 to 24 in my Croydon East constituency claim out-of-work benefits, supporting young people into work, and breaking down barriers to opportunity, is vital. Will the Minister give a little more detail about the additional funding for the London youth guarantee trailblazers, and will she outline how that will help Croydon’s young people into work? I look forward to having the DWP with us in New Addington.
Alison McGovern
I will pass on my hon. Friend’s comments to my colleagues in Croydon, who are keen to work with her and the other MPs there. In the summer, the Secretary of State announced further funding of £45 million for our eight youth guarantee trailblazers. That will ensure that in London, as in the rest of the country, our young people get the choices and chances that they deserve.
John Cooper (Dumfries and Galloway) (Con)
Sarah Bool (South Northamptonshire) (Con)
The Minister for Employment (Alison McGovern)
The latest provisional statistics, taken from Stat-Xplore, show that in July 2025, there were 768,000 people aged 16 to 24 on universal credit. About a quarter of those young people—around 180,000—are on universal credit and in work.
Sarah Bool
According to the Library, in my constituency, the claimant count among those aged 16 to 24 has risen by 46%; that is one of the largest percentage increases in the country. Conservative Members know that the Government have a moral duty not to let our young people learn that a life of benefits is the life for them, so how does the Minister explain that increase? What will she do?
Alison McGovern
I must remind Conservative Members again that it was their party that introduced universal credit, removing the distinction between out-of-work benefits and in-work benefits. For three quarters of young people who are out of work and on universal credit, our guarantee for young people will make sure that they get a second chance in life, after they were utterly failed during the pandemic by the Conservative party.
Sarah Hall (Warrington South) (Lab/Co-op)
David Burton-Sampson (Southend West and Leigh) (Lab)
The Minister for Employment (Alison McGovern)
With permission, I will answer these questions together, as they are both about the great city of Southend.
Colleagues in Southend jobcentre are working very hard with Southend young people to help them gain skills, experience and confidence. The team have launched a bespoke employability workshop designed for young people, and recently delivered a regional work experience pilot for college students. They also work with our great partners, such as the King’s Trust and FirstPoint Training, to provide placements and opportunities, and there is also the employer-led Movement to Work programme.
Mr Alaba
Young people across the UK who are not in education, employment or training are more than twice as likely to come from disadvantaged backgrounds. What steps is the Minister taking to ensure that support reaches those who need it most?
Alison McGovern
The Secretary of State mentioned some moments ago that in everything we do in the Department for Work and Pensions, we are trying to close the gap between those who have suffered disadvantage and those who have not. Young people, especially those who have experienced poverty, are vulnerable to mental ill health, and the pandemic generation deserve more support to get chances that they have missed. That is why we have a joint work and health unit with the Department of Health and Social Care. We also have many agreements across Whitehall relating to our net zero mission, as well as our investment in defence, to help employers recruit the next generation, whatever their background.
David Burton-Sampson
In Southend West and Leigh, I will soon host a youth day, featuring local star of “The Apprentice” Chisola Chitambala, who is now an apprenticeship coach, among other things. Does the Minister agree that early interventions, like this youth day, are really important to prevent young people from becoming another NEET statistic?
Alison McGovern
I agree with my hon. Friend, and congratulate him on his youth day and the work he is doing on this kind of early intervention. The data clearly show that if people get qualifications, some work experience, and support for their health and support with other factors in life, that is very protective against being without work, education or training. We have to give a second chance to those who need one, and take steps to prevent people from being in that situation in the first place.
Jo Platt (Leigh and Atherton) (Lab/Co-op)
Perran Moon (Camborne and Redruth) (Lab)
The Minister for Employment (Alison McGovern)
Yes, that is exactly how we are working, and I thank my hon. Friend for his question. Our “Get Britain Working” plan identified Cornwall as a rural industrial legacy employment area, and we specifically pointed out the lack of connectivity. That is why, when it comes to our new jobcentres service, we are also trialling jobcentres on wheels: buses that can take support to where people are and which are designed for rural areas. They recently featured on “The One Show”.
John Slinger (Rugby) (Lab)
Alison McGovern
I thank my hon. Friend for his question. I am glad he is visiting Rugby jobcentre, and I encourage all Members across the House to go to their local jobcentres, because their work coaches have the most experience and knowledge about what we need to do to get people into work. We are creating “jobcentre in your pocket”, so that everyone can have access to help 24 hours a day. Letting technology take the strain will mean that our work coaches can do more of what they do best, which is giving people—person to person—the confidence to take up life’s chances.
John Glen (Salisbury) (Con)
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
As someone who proudly served the trade union movement for two decades before entering this place, I warmly welcome the Government’s improvement to workers’ rights. Will the Minister set out what steps are being taken to ensure that no one is left behind in the vital reforms to statutory sick pay?
Alison McGovern
I know that so many of my hon. Friends will, like her, welcome the changes we are making to statutory sick pay, which will improve eligibility for 1.3 million of the lowest-paid employees and remove the waiting period. Many of those who will benefit are low-paid women. The removal of the waiting period will mean that all employees receive at least £60 more at the start of their sickness absence compared to the current system, but we will continue to evaluate the measures as they are implemented.
Kirsty Blackman (Aberdeen North) (SNP)
Scotland is the only part of these islands where child poverty is falling, as a result of the Scottish child payment and the mitigation of the bedroom cap. When will the Labour Government move from empty words to actual action to take children out of poverty?
Welfare Spending
Alison McGovern Excerpts(1 month, 2 weeks ago)
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The Minister for Employment (Alison McGovern)
Well, there we have it—as ever, all politics and no economics. The Conservatives come to this House to talk not about the people of this country, but about themselves. In March, we found out the truth of the Tory record on child poverty, which is highly relevant to their motion today. From 2010 to 2024, the number of poor children skyrocketed by nearly 1 million. After 14 years in office, the Conservatives left us with 4.5 million of our children growing up without the ability to make ends meet. That is what Tory Governments do, just as they did from 1979 to 1997, when child poverty more than doubled, leaving 4.2 million children in relative poverty. The Conservatives can come to this House to defend the failures of the last Government as many times as they like, as their motion does today. Every single time, we will remind them of their record.
Alison McGovern
I will give way if the hon. Gentleman apologises to the 4.5 million children in this country growing up in poverty.
Graham Stuart
The Minister and Labour Members are in absolute denial about the state of the country. The Government came in with growth as their No. 1 mission, and what have they done? They have brought growth to an absolute, shuddering halt. They have done what every Labour Government do, which is to increase unemployment. Who does that hurt the most? It is the poorest. From an age point of view, who does that hurt the most? It is the young. An increase in youth unemployment of 45% was a scar on this country that the last Labour Government left. It was the Conservative Government that outgrew Germany, France, Japan and Italy over the 14 years we were in power. She should be ashamed of her record, even though it is only 12 months old.
Alison McGovern
I thank the right hon. Gentleman for that lengthy intervention. I deeply regret that he does not feel the need to look his own record in the face and, more than anything, that he has nothing to say to the 4.5 million children in this country without the means to make ends meet.
Emergency food parcels distributed by Trussell Trust food banks have increased by 164% over the past 10 years, and 1.1 million children are living in households that have gone to a food bank over the past 12 months. In this country we now have more food banks than police stations. Are the Conservatives proud of that record? I hope not.
Nobody in this country should be begging—no child should face that indignity. The consequences are serious. Over 80% of parents say they struggle to get basic support, such as a GP appointment, or to see a health visitor. Schools are in an attendance crisis, with one in five kids now missing a day a fortnight or more, and it is worse for poor kids. That is the Conservatives’ record. These failures for our children will echo down the years and will turn up in our nation’s life expectancy, the benefits bill they say they care about and, worst of all, in the sense of hopelessness that far too many people in this country now have.
Do the Conservative Opposition have a response on their record? As we have heard, no, they do not. Have they apologised to families in the UK? As we have heard, no, they have not. Have they reflected on their record? As we have heard, no, they have not. They bring a motion to this House to do none of the above, but to agree with the Tory party policy from 10 years ago. They are the same Conservative party that created the mess we are in now, and they have no regrets. Their motion talks of a benefits trap, and the hon. Member for Faversham and Mid Kent (Helen Whately) just repeated that. They will be awfully cross when they find out who spent £3 billion on the universal credit system that they now say traps people in poverty. They promised that universal credit would get people into work; instead, it pushed people into incapacity benefits.
Paul Holmes (Hamble Valley) (Con)
I gently say to the Minister that she and her Back-Bench colleagues do not have a monopoly on talking about poverty. If she really cared about poverty, she would not have allowed a policy to be brought before this House last week that, before it was changed, would have put 150,000 extra children into poverty. If she genuinely believes in tackling poverty, why is she still standing at the Dispatch Box as a Minister, because she should have resigned for putting more children into poverty under her proposals?
Alison McGovern
I do not believe for a moment that it is just people in the Labour party who care about poverty in this country. Former Conservative Members of this House who were discharged from their duties by previous Prime Ministers, and many other Members of different parties over many years, have cared about poverty. We should deal with facts in this place, and I am merely repeating, for the benefit of the House, the Conservative Government’s record on poverty. I will cover the details of the child poverty taskforce in my speech. If the hon. Gentleman wishes at any point to make representations to the taskforce of Ministers dealing with child poverty in this country, I will happily receive them.
Sir Desmond Swayne (New Forest West) (Con)
On the question of facts, will the Minister give way?
Alison McGovern
Let me make a little progress, if I may.
The official Opposition’s motion speaks of a “benefits culture”. I simply ask them this: who made that culture happen? Who was in charge for the past decade and a half? Either the last Tory Government were powerless to stop that culture being created, or they were responsible for it—which is it? Until they can see the consequences of their own time in office and accept the damage that they did, which they clearly cannot, no one will hear a single word that they say.
There are, however, people in this country who deserve a hearing: those who have experienced childhood under the last Tory Government. As the hon. Member for Angus and Perthshire Glens (Dave Doogan) mentioned, we heard last week from the Children’s Commissioner —who, I point out, was appointed under the Conservatives—on her work capturing the opinions of children who have grown up in poverty because of the policies espoused by Conservative Members.
Paul Waugh (Rochdale) (Lab/Co-op)
The Minister is making an important speech with which many Labour Members will agree. She will be aware that 59% of families with more than two children and which are on universal credit are in work. That is far from the feckless parent caricature that we have heard from the Conservatives. More importantly, does she agree that the children should come first, so we should urgently scrap the two-child cap as quickly as possible?
Alison McGovern
As my hon. Friend rightly points out, in the speech by the shadow Minister, the hon. Member for Faversham and Mid Kent (Helen Whately), we heard yet again from a Tory party that wants only to ignore the facts in favour of dividing people in this country, as it did for the many years it was in government. That is not what people want. People want this country to move forward together.
Alison McGovern
I will mention a few contributions by the Children’s Commissioner for England, and then I will give way further.
We heard from the commissioner that children think that free breakfast clubs and school meals are important. That is why we have begun the roll-out of free breakfast clubs in all primary schools and last month announced the expansion of free school meals to all on universal credit, lifting 100,000 children out of poverty by the end of this Parliament.
Young people told the commissioner about how they absorb their parents’ money worries. One 16-year-old girl said:
“I worry about money quite a lot. I see myself as quite approachable to my mum so my mum will tell me absolutely everything.”
Children need to grow up without that stress, so we have introduced the fair repayment rate for universal credit households, so that a debt to the Government does not keep families poor, which will help 700,000 households with children.
Sir John Hayes
I am mindful of two of her predecessors in Birkenhead. The first is F. E. Smith, the great Tory, who talked about “all must have prizes”. Sometimes, in our modern Britain, it feels that all must have state support. The second is the late Frank Field, who is much regarded and revered in this House for his honesty about welfare reform. The Minister is right that successive Governments have failed to grasp this nettle. The truth is that the relationship between the state and the individual has changed over time. We need a welfare system that focuses support on those in the greatest need. She surely believes that, and that requires bold welfare reform. Is she up for that or not?
Alison McGovern
I thank the right hon. Gentleman for his intervention and for reminding me of two of my predecessors. I cannot claim to have known the former, but I did know Frank Field very well. Frank and I talked many times, particularly with regard to Birkenhead, about his belief in the value of work. He wanted to see our shipyard thrive and young people in Birkenhead grow up with the pride of employment. I like to think that when the Prime Minister came to Cammell Laird shipyard recently to talk about the value of good work in Birkenhead, Frank would have felt very proud.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Will the Minister give way?
Alison McGovern
I will continue for just a moment.
All the young people who spoke to the commissioner could not have been clearer about the challenge of learning in overcrowded bedrooms. They were clear and direct about the shame of not always being able to keep clean because of a lack of hot water. I am deeply proud that we have committed funding for social housing to get children out of temporary accommodation, and expanded the warm home discount for all those on universal credit who are eligible. To ensure that the next generation of families experience a friendly face and have a place to play, we have expanded Best Start family hubs to every local authority.
As I said earlier, those are just some of the changes being brought about thanks to the child poverty taskforce chaired by my right hon. Friends the Secretaries of State for Work and Pensions and for Education.
Stuart Anderson (South Shropshire) (Con)
The family hubs are a great thing. The Minister said that they have gone to every local authority, but, if I have read the data correctly, none has gone to South Shropshire. Will she look into that and see whether we can get them there?
Alison McGovern
I will ask the Minister with responsibility for family hubs to write directly to the hon. Gentleman and work with him on that suggestion.
From the word go on taking office, the Prime Minister wasted no time in setting up the taskforce of Ministers to analyse the situation for our children in poverty.
Stephen Flynn
If I recall correctly, from the get-go, the Labour party suspended seven Members of its parliamentary party for voting to scrap the two-child cap. The Minister’s colleague, the hon. Member for Rochdale (Paul Waugh), asked her very clearly whether she believes that the two-child cap should be scrapped, but she did not answer. Perhaps now she will. Does she believe that the cap should be scrapped—yes or no?
Alison McGovern
I will come to the two-child limit in a moment, but let me correct the right hon. Gentleman: the issue then was Members voting to amend the King’s Speech.
From the word go on taking office, the Prime Minister wasted no time in setting up the taskforce of Ministers to analyse the situation for our children in poverty and to identify the most cost-effective ways of helping them to experience better childhoods. Our child poverty strategy will be published later this year, but, as I have said, we have already taken steps that we believe will help to mitigate the worst effects of 14 Tory years. Just yesterday, the Chancellor announced the better futures fund, the world’s largest social outcomes fund, which will be backed by £500 million of Government funding over 10 years to support vulnerable children, young people and their families.
Several hon. Members rose—
Alison McGovern
I have given way a lot, Madam Deputy Speaker, and I am worried that you will be quite cross with me if I keep giving way, so I will make progress.
Alison McGovern
I did say that I would give way to the hon. Gentleman, so let me do so before I finish my speech.
Jamie Stone
The Minister is extraordinarily gracious. She has rightly talked about universal credit, and what she says is very interesting indeed. I have constituents on legacy benefits who are—I think this is the right word—“migrating” to universal credit. The trouble is that they have to wait five weeks until they get their first cash. How will they make ends meet? What about the direct debits? I worry about that. Perhaps the wonderful group of Ministers considering these matters could look at that situation, because people are really caught in a trap.
Alison McGovern
The hon. Gentleman is not the only person who worries about it, and I will receive his intervention as a submission to the child poverty taskforce.
The child poverty taskforce is looking at all the levers we can pull—across income, costs, debt and local support—to prevent poverty, including social security reform. Our universal credit review is considering ways that the system can improve in order to stabilise family finances and provide roots into good work.
On the two-child limit specifically, the consequences of the Conservative choices made over the past decade and a half are clear for all to see. We have rightly said many times that we will not commit to any policy without knowing how we will pay for it. Taxpayers in this country—who include many parents, grandparents and those who care deeply about the fortunes of the next generation—have the right to know that they have a Government who will help grow our country and our economy. Poverty creates stony ground for that growth. It robs people of the dignity of being able to look after themselves and the choices about how to live their own lives. It robs children of what should be a worry-free time and makes them less able to take risks and try new things as they grow up.
This makes bad beginnings for a country that needs its next generation to be innovators, to be inventors and to build our future. I say this as one of three in a family with hard-working parents where money was tight. We knew every day in those years when I was growing up that the Tory Government at the helm did not give a stuff about people like us—we knew that every single day. Families in this country who are struggling should know that this Labour Government think about them every day. We have taken action to improve life for our kids, and we will keep fighting for that every single day.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Oral Answers to Questions
Alison McGovern Excerpts(2 months, 1 week ago)
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Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
The Minister for Employment (Alison McGovern)
We are building a new jobs and careers service for all, including those on universal credit, as the cornerstone of our Get Britain Working reforms. This new service will build towards an 80% employment rate, closing the gaps between disabled people and others and between parents and those without caring responsibilities, and dealing with the crisis in youth unemployment. We are also changing universal credit to stop people being left on the scrapheap, as per our “Pathways to Work” Green Paper.
Josh Simons
Last week, I held an emergency community meeting for 250 workers in my constituency who are about to lose their jobs following the closure of the electric fibreglass site in Hindley Green. It was heartbreaking. Some families have three generations of workers who have powered the blast furnace and produced materials for our energy, defence and housing sectors. I am bitterly disappointed that after the hard graft of the Government, me, the Mayor of Greater Manchester and the GMB union, it has come to this, and another foreign company is closing a blast furnace in our country. What is the Minister doing to get workers like those back into work, so that they can do what they want to do, which is contribute to a strong industrial future?
Alison McGovern
Specifically on the business that my hon. Friend mentioned, the Department’s rapid response service has worked with those affected and is keen to do more. I will personally ensure that he is put in touch with my colleagues in the Department so that he can help facilitate that, too.
More broadly, like many industrial communities, my hon. Friend’s constituency deserves more good jobs. Our industrial strategy will help lead the way on that, as will the Chancellor’s investment plans set out in the recent spending review. I know that if my hon. Friend feels that we need to do more for his constituency, he will not hold back in telling us.
Katrina Murray
My constituent Tracy is living in local authority temporary accommodation after fleeing domestic violence. She is currently trapped on universal credit because the cost of her accommodation is way beyond anything she could earn locally—by a factor of about 10. As a single young person, she faces years before she is likely to be allocated a flat, and she is rightly concerned that future employers would question her years of unemployment and under-employment. She wants to work full time but has been advised not to do so. Does the Minister agree that we need to do something to address the cliff edge?
Alison McGovern
I thank my hon. Friend for bringing that important case to the House. Universal credit has no fixed hours requirement, but the connection between housing costs and universal credit, as she mentioned, is still a problem. I would be keen to look at the detail of her constituent’s case. Universal credit was introduced with the promise that it would move people off benefits and into work, but that clearly has not happened as we need it to happen, so considerable work is under way to deal with the inadequacies of the mess that the Conservative Government left us.
Mr Richard Holden (Basildon and Billericay) (Con)
There are 300 more people on out-of-work benefits in Basildon and Billericay than there were 12 months ago. Local businesses tell me that that is because business rates have gone up under the Labour Government, national insurance tax has gone up under the Labour Government and taxes on investment for the long term have gone up under the Labour Government. Does the Minister agree, or has she got another explanation for the fact that 300 more of my constituents are unemployed than there were 12 months ago?
Alison McGovern
Our Department is determined to serve businesses well. If the right hon. Member would like to help his local jobcentre do that and get good jobs into the jobcentre so that we can help his constituents, I am sure that I can facilitate that. However, he should be aware that employment is up and inactivity is down. We are moving towards an 80% employment rate, and the Chancellor’s investment plans, as she set out in the spending review, will help us move towards that.
Alison Bennett (Mid Sussex) (LD)
The Government’s proposals to change benefits have a compound consequence for people wanting to stay in work. For example, the Department has said that 95,000 working-age claimants receive carer’s allowance and, under the proposals, would lose the PIP they receive. Does the Minister agree that those proposals will actually make it harder for people to stay in work, rather than easier as they claim?
Alison McGovern
As the Secretary of State set out some moments ago, we are introducing the biggest improvement to employment support that the country has known. We will ensure that people receive the help they need to get into work and to stay in work.
Sarah Green (Chesham and Amersham) (LD)
Luke Akehurst (North Durham) (Lab)
The Minister for Employment (Alison McGovern)
Given our objective to reduce the number of children in poverty overall, I expect the impact of the child poverty strategy on children in Stroud to be positive, as all children benefit when the whole community can rely on children enjoying a good childhood. We will publish the child poverty strategy as soon as possible, but, as we have said, we are not waiting to act. The Secretary of State has listed a number of initiatives that we have already been getting on with.
Dr Opher
In Stroud, after 14 years of austerity, over 4,000 children are living in poverty. A recent Joseph Rowntree Foundation report stated that after removing the two-child limit, the next most effective way of reducing child poverty is to get rid of the benefit cap. Would the Minister be willing at least to review the benefit cap?
Alison McGovern
As the Secretary of State has already said, all policies that can lift children out of poverty are under consideration by the taskforce. We obviously will not commit to any policy without knowing how we will pay for it; neither, as I have said, will we wait to act if there are steps we can take immediately. I thank my hon. Friend for his question, which I will take as input to the child poverty taskforce. I also take this opportunity to thank all colleagues who have participated in the five parliamentary sessions that the taskforce has hosted since November 2024.
Luke Akehurst
Will the Minister give an update on the work the Department is doing with the North East Mayor Kim McGuinness’s child poverty reduction unit to tackle the specific drivers of that issue in our region?
Alison McGovern
Child poverty is a significant challenge in the north-east, and that is why it is right that Mayor Kim McGuinness participated in an early session of the taskforce and has shaped the agenda since then. The child poverty reduction unit engages regularly with colleagues from the north-east and will hold a dedicated session on strategy with the north-east child poverty commission this week. Mayors have been absolutely critical to the development of the strategy, and we will continue to work closely with them.
Gideon Amos (Taunton and Wellington) (LD)
As in Stroud and the north-east, children in poverty rely on food banks to get by—6,617 food parcels in my constituency alone. Will the Government take the advice of the Trussell Trust and seek and follow independent advice on the universal credit standard allowance?
Alison McGovern
As Labour’s manifesto said, the emergency food parcels that we have seen are a “moral scar” on our country. That is why I am glad that, as Ministers have said, we are increasing the standard allowance for the first time in—as long as I can remember, certainly. I am also pleased that emergency food parcels were down this year.
Sir Julian Smith (Skipton and Ripon) (Con)
The Minister for Employment (Alison McGovern)
If a person is out of work and is offered a job, they are required to accept appropriate work that is offered to them. The focus of our Get Britain Working reforms is to address the current situation whereby nearly 3 million people are out of work sick and not actively looking for work, and 1.7 million people are out of work but are not getting the help they deserve from the existing jobcentre system.
Sir Julian Smith
R and J Yorkshire’s Finest butchers in Kirkby Malzeard have had multiple job applications via jobcentres from people who they think never had an intention of going to interview or taking a job. May I urge the Minister to look at how incentives and penalties are matched up, to ensure that people actually turn up to interview and take a job?
Alison McGovern
The right hon. Gentleman mentions a problem that I think is central to the situation that we have inherited. That is why, as I mentioned in response to the right hon. Member for Basildon and Billericay (Mr Holden), we are changing the way that DWP acts, so that we serve employers better and match people who actually want to move into those jobs. If the right hon. Gentleman would allow me, I will connect him with his local jobcentre manager, so that he can link up the businesses he mentions.
Tom Rutland (East Worthing and Shoreham) (Lab)
Kirsty Blackman (Aberdeen North) (SNP)
Matching the Scottish child payment by raising the child element of universal credit would bring more than half a million children out of poverty. The Secretary of State has been clear that a lot of issues are being considered by the child poverty taskforce. Is raising the child element of universal credit to the level of the Scottish child payment one of those matters?
The Minister for Employment (Alison McGovern)
At the risk of boring the House, let me say that all levers are very much on the table when it comes to getting our kids out of poverty.
David Taylor (Hemel Hempstead) (Lab)
Graham Stuart (Beverley and Holderness) (Con)
At the weekend, Vivergo and Ensus workers learned that UK negotiators had successfully protected the UK bioethanol industry until President Trump called the Prime Minister and he sold out that industry, allowing a genetically modified bioethanol to flood the market and put all those jobs at risk. What can the Secretary of State tell those workers who feel that they have been sold out by our Prime Minister when negotiators had successfully protected an industry of the future?
Alison McGovern
This Government will always have the backs of working people, and I believe there will be a statement shortly on our modern industrial strategy. I know that Ministers from the Department for Business and Trade will be extremely engaged in the point that the right hon. Gentleman has just raised.
Fred Thomas (Plymouth Moor View) (Lab)
Many new mothers in Plymouth are claiming maternity allowance, not because they are unemployed, but because they do not qualify for statutory maternity pay; they may be self-employed, have recently changed jobs or have had a pregnancy-related sickness. Many of them have contacted me with concerns that maternity allowance is treated as unearned income and is therefore subject to universal credit deductions, unlike statutory maternity pay. What steps is the Department taking to ensure financial security for women in Plymouth who are claiming maternity allowance?
Sir Julian Lewis (New Forest East) (Con)
Do Ministers agree with the Trussell Trust’s recent estimate that the weekly cost of basic essentials is £120 for a single person and £205 for a couple?
Alison McGovern
Through the child poverty taskforce, we have been looking at the issue of incomes versus expenditures. We are taking steps urgently where we are able, but we will have more to say about that issue shortly.
Disabled People in Poverty
Alison McGovern Excerpts(2 months, 2 weeks ago)
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The Minister for Employment (Alison McGovern)
It is a pleasure, as ever, to serve under your chairship, Ms Jardine.
I thank my hon. Friend the Member for Poole (Neil Duncan-Jordan) for securing this important debate. It has been a good debate. I would normally run through all the people who have spoken, but there have been so many—I will try to cover some of the points that have been raised. However, I begin by saying that the level of poverty among disabled people demands our attention and action, and it is right that we discuss it today.
Disabled people, like everybody else, have the right to dignity, the right to work and the right to have power, choice and control over their lives. When someone is in poverty, regardless of whether they are disabled, they are robbed of the opportunity to choose how to live their own life, which is why the situation we face today is so very shameful. When the Tories left office, 14 million people were in poverty, including 6.3 million people living in households in which someone is disabled—enough to fill Wembley stadium 70 times over, and more than the population of Scotland. That is a moral, social and economic failure on a colossal scale, and this Government have already taken urgent action to tackle it by delivering our plan for change, putting more money in people’s pockets and raising living standards.
Some of the specific anti-poverty measures in last week’s spending review are really important. For the first time, we have taken a long-term approach to the household support fund so that local authorities can properly plan, and we are turning the fund into a crisis and resilience fund so that we can properly deal with the issues that come up from time to time when a crisis tips somebody into long-term poverty.
Last autumn, we introduced a fair repayment rate for universal credit by reducing the maximum amount that can be taken from people’s benefits to pay for what they owe from 25% to 15%, meaning that 1.2 million of the poorest households will keep an average of £420 more in universal credit. As my dad used to say, “Out of debt, out of danger.”
Ellie Chowns
Today the Minister has heard many MPs, representing their constituents, express their huge concern about the effects of the PIP cuts on disabled members of our communities. She says that she cares about disabled people in poverty and about dignity. Why are her Government refusing to raise funds through a wealth tax so that our disabled constituents can have the support they need to live full and supported lives?
Alison McGovern
I thank the hon. Lady for her comment. I do not just say that I care about poverty; I have spent nearly a year working on a child poverty strategy to repair the damage the Tory Government did to this country. We will bring forward proposals as soon as we can to deal with the poverty crisis—I have mentioned several of them already.
The hon. Lady asks about a wealth tax. We have put VAT on private schools and private jets. We have removed exemptions from inheritance tax, which is a wealth tax. We have doubled stamp duty, which is a wealth tax. We are increasing capital gains tax and abolishing non-dom status, which meant that wealthy people could escape the taxes they owe. I do not accept that we have not taken steps to raise money through taxes so that we can pay for the public services this country needs so that working-class people can escape poverty. That is what this Government have done. [Interruption.] I will continue before I lose my temper.
We are expanding free school meals in England to all children with a parent receiving universal credit, lifting 100,000 children out of poverty by the end of the Parliament, and that is on top of our roll-out of free breakfast clubs. As I just mentioned, our child poverty strategy, on which Ministers right across Government have been working extremely hard, will reduce costs, support families with better local services and increase incomes, because we know that is the best way to tackle poverty.
As I mentioned, the extra money we are collecting through taxation will help to rebuild our NHS, with an extra £29 billion a year for the day-to-day running of our health service, so that disabled people can get the healthcare they need. We are also extending the £3 national bus fare cap, helping people to maintain their independence.
I want to respond to some of the points that Members have raised, particularly on the PIP review, which is already under way. I know that Members will be involved in that work but, just to be clear, it is already happening.
Johanna Baxter
The Government’s consultation on mandatory ethnicity and disability pay gap reporting, led by the Office for Equality and Opportunity, recently closed. Can the Minister update the House on the findings of that consultation and when we might expect a formal Government response?
Alison McGovern
My hon. Friend raises an important manifesto commitment. I will relay her request to the Minister for Disability, who I am sure will update her.
We are anxious to get on with it. As many Members have said, it is important to reset some of the assumptions that employers have about the capabilities of disabled people, and the assumptions about whether disabled people should be included in our economy like everybody else.
On how many people will be affected by this, I point out that all the numbers that have been mentioned, including the numbers we have published on the poverty impact of the policy change, are static. They assume that nothing else changes by 2030.
While I understand the very correct concern that the employment support system this Government inherited was nowhere near what it should be, I can reassure Members that change is already happening. We are already getting on with Connect to Work and building a new jobs and careers service. I currently spend half my life with frontline work coaches in jobcentres, including disability employment advisers who are anxious to do better and are moving forward with a changed system. We are not waiting to get on with the change; the change is already happening.
Ayoub Khan
On the £5 billion cut to PIP, does the Minister agree that it is not just a lifeline for the most vulnerable in our society but is £5 billion that ends up in the economy? For that reason, does she not agree that a holistic impact assessment needs to be done? It ought not to be rushed, so that Members can review it and come to a sensible conclusion.
Alison McGovern
I thank the hon. Member for his point, because it is one of the other things I wanted to clarify. A number of Members have mentioned money being taken out of communities. Having been a Member of Parliament during the actual austerity years under the Conservatives, I can say that the benefit and other changes made under austerity clearly had a huge impact on certain parts of the country.
That is why the spending review set out our investment plans. I have already mentioned the funding for the NHS and other areas through which we will be supporting the very communities that need to be lifted. I refer the hon. Member to the distributional analysis published alongside the documents last week, where he will see that this Government are prioritising lifting the communities that really need to be lifted.
The hon. Member for Surrey Heath (Dr Pinkerton) has gone now, but I want to say that veterans can be supported through the armed forces independence payment, whether in work or not. That is separate from PIP, and no changes are proposed to it.
Alison McGovern
I will wind up, because we are out of time. I have no doubt that these discussions will continue over the coming weeks, and I look forward to engaging with everybody here on them. [Interruption.]
Christine Jardine (in the Chair)
I am sorry, but we have to put the Question quickly.
Question put and agreed to.
Resolved,
That this House has considered Government support for disabled people in poverty.
Oral Answers to Questions
Alison McGovern Excerpts(3 months, 3 weeks ago)
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Josh Simons (Makerfield) (Lab)
The Minister for Employment (Alison McGovern)
It is an unacceptable part of the Conservative legacy that almost 1 million young people are out of work or education and have little hope of a good start in life. That is why, as part of the plan to get Britain working, we will create a guarantee for all young people aged 18 to 21 in England to ensure they have access to high-quality training or an apprenticeship, or have help to find work. That plan will be vital to young people everywhere, including in Makerfield’s towns.
Josh Simons
In the towns I represent, the largest type of private employment is the trades. Bricklayers, plumbers, electricians—these are the people who build our nation’s future and on whom our future security and prosperity depend. They are the working people the Labour party was created to represent. What is the Minister doing to ensure that more young people get into the trades, in particular partnering with local technical colleges like ours in Wigan and Leigh?
Alison McGovern
I thank my hon. Friend for that question because, as the Prime Minister says, we are the party of the builders. As my hon. Friend says, the Labour party was created to serve the simple principle that working-class people could run the country. The Department for Education is working closely with colleges and with us in the Department for Work and Pensions to create construction foundation apprenticeships from this August, which will give many more young people the tools they need for a career in the trades. That is in addition to DWP support for employers, which we have recently expanded specifically with those trades he mentions in mind.
Jim Shannon (Strangford) (DUP)
The rules and regulations that apply to employment, education or training in the Makerfield constituency should apply across this great United Kingdom. Many of those in the construction sector that the Minister referred to, whether they are builders, carpenters, plumbers, plasterers or electricians, come from my constituency of Strangford across to London, so it is important that people in my constituency and across Northern Ireland get the same opportunities through the colleges. Will the Minister ensure that discussions take place with Northern Ireland so that my constituency can continue to supply the people who build houses here in London?
Alison McGovern
I pay tribute to all those from the hon. Gentleman’s constituency who have been part of building our whole country. We work very closely with the devolved Administrations across the United Kingdom to ensure that, as the Secretary of State laid out, chances and opportunities are there for everybody. I look forward to working with the hon. Gentleman as we move forward through our change programme.
Chris Murray (Edinburgh East and Musselburgh) (Lab)
The Minister for Employment (Alison McGovern)
Our new changed jobcentres will serve the whole of Great Britain. The changes that we are bringing forward will mean more personalised help for everyone, but especially young people. Frontline work coaches who help young people need better technology and more time to help them find the best opportunities. The goal of our changes is to better serve employers and young people.
Chris Murray
In the pandemic, young people were among the least at risk, but they gave up so much of their lives to protect those who were at risk. No generation has made such a sacrifice for another since the war, but they have been badly let down: across the UK, one in eight are not in employment, education or training, and it is worse in Scotland, where the figure is one in six young Scots. What steps is the Minister taking to mitigate the inaction of the SNP Scottish Government and build a better future for young Scots?
Alison McGovern
As I just mentioned, our new jobcentres will create a universal service across Great Britain. We must make those changes to serve young people. My hon. Friend makes an excellent point about the pandemic generation, who deserve much better from us all. I know that his city of Edinburgh is full of chances and opportunities that we cannot let go to waste. Given the role of Edinburgh and Glasgow in our visitor economy, I am sure that he will be interested in the work we are doing with UKHospitality to help more young people to have an opportunity in that great sector.
Wendy Chamberlain (North East Fife) (LD)
Struggling to make ends meet, paying bills, buying work appropriate clothing and paying for public transport all affect someone’s ability to get and keep a job. That is just as true for under-25s as it is for anybody else, but the Government continue to maintain a lower rate of universal credit for young people when there is no guarantee that they have financial support from their families. In looking at universal credit, will the Government consider that?
Alison McGovern
As the hon. Member will know, we are reviewing universal credit. I am particularly focused on ensuring that young people have a chance before they reach the age of 25. If they are out of work in those first years after leaving school or college, it is absolutely devastating for the rest of their careers. That is why we are making these changes.
Ms Polly Billington (East Thanet) (Lab)
Over the weekend I was shocked, but not surprised, to see the new statistics for young people in Thanet who are not in education, employment or training—having hit 11.6%, the figure is the highest in the south-east. Some 3% of young people in Thanet also experience support for special educational needs. Although I am not suggesting that correlation equals causation, can the Minister explain how denying access to the health-related element of universal credit will help those young people into work?
Alison McGovern
The House will know that we have consultations in a number of policy areas relating to my hon. Friend’s question. As I have said, in the end, young people need an opportunity at the start. In places like Thanet, where there are significant poverty and challenges but great opportunity, I want to ensure that we serve employers, and the young people who need them, much better.
Mr Peter Bedford (Mid Leicestershire) (Con)
Employers in my constituency tell me that they are less likely to employ young people as a result of the Employment Rights Bill because of the increased risk of employing someone at the start of their career. What representations has the Minister made to her colleagues to ensure that the most damaging parts of that legislation are softened?
Alison McGovern
The House may know that, on coming into office, the Secretary of State and I totally changed the way the Department for Work and Pensions approaches employers. We want to serve them much better, and we have given them a single point of contact. Having met many businesses over the past six or seven months, my experience has been that they have vacancies and want us to help fill them. We will do that so that we can serve employers and young people alike.
Robin Swann (South Antrim) (UUP)
Joe Powell (Kensington and Bayswater) (Lab)
The Minister for Employment (Alison McGovern)
As we have already discussed, every young person in this country needs a good start. As part of our plans to get Britain working, we announced £45 million-worth of funding for eight youth guarantee trailblazers to lead the way. Kensington and Bayswater is covered by the youth guarantee trailblazer launched last month by the Greater London Authority.
Joe Powell
I recently visited the North Kensington jobcentre to learn about its support for young people and discuss the potential for working more closely with our brilliant local college, the North Kensington Centre for Skills, so that people can access opportunities in industries such as trades and housing. Will the Minister outline what more the Department is doing to bring together colleges and jobcentres for young people?
Alison McGovern
I thank my hon. Friend both for his question and for going to see the team at the North Kensington jobcentre; there is a really dedicated team of five work coaches specifically for young people. I am working with colleagues in the Department for Education on the development of Skills England so that in the future our work coaches—for example, the five who serve his constituency and look after young people—will have much closer access to get them into courses and get them building to move our economy and their careers on.
Sir Ashley Fox (Bridgwater) (Con)
The Government’s own impact assessment of their Employment Rights Bill says that it will increase the cost to businesses by £5 billion, which will be borne mostly by small businesses. Does the Minister share my concern that, when combined with the additional national insurance charges on employers, that will reduce the opportunities for young people in my constituency just as much as for young people in Kensington and Bayswater?
Alison McGovern
I have said already in this session of questions that we have changed the DWP to serve employers much better, and that is an important shift. I understand that Conservative Members do not want people in this country to have greater rights at work, sick pay if they need it or secure hours if they are on an exploitative zero-hours contract. Unfortunately for them, last year the public voted for the opposite.
Blake Stephenson (Mid Bedfordshire) (Con)
The Minister for Employment (Alison McGovern)
In Colne Valley, my hon. Friend’s constituents receive support from Huddersfield jobcentre. Work is also ongoing led by West Yorkshire combined authority, which is one of our trailblazers. It is stepping up to help everybody who needs help getting into work, whether or not they are on universal credit.
Paul Davies
Recently, Kirklees college, in partnership with Flannery Plant Hire and Kirklees council, officially launched the Kirklees operator skills hub to meet local skills demand in the construction industry. The hub, which is the fifth of its kind in the country, is a mobile unit with two virtual-reality plant machinery simulators and classroom facilities for skills bootcamps, and will open many doors for young people in my constituency. Does the Minister agree that such initiatives will help many young people into work, and help us to bring about the growth that we need in our economy?
Alison McGovern
I do agree with my hon. Friend. As we have said in response to a number of questions, our ministerial team know that this Government are about building the homes that we need and ensuring that the jobs in the sector go to people who will really benefit from a career in construction, and I congratulate Kirklees college and all those involved in that pioneering work. Last week I visited the UK Construction Week conference, where George Clarke talked about the fantastic opportunities in construction and the great building businesses. I say well done to everyone in my hon. Friend’s constituency who is pushing this forward.
Wendy Morton (Aldridge-Brownhills) (Con)
Lewis Cocking (Broxbourne) (Con)
How is the Minister working with the Department for Education to ensure that when young people leave education, they have the skills they need to thrive in the world of work?
The Minister for Employment (Alison McGovern)
I refer the hon. Gentleman to some of the responses we have already given. The DWP and the DFE are working together closely as we change apprenticeships and change our jobcentres to ensure that the opportunities are there. Having met the hon. Gentleman, I know that his constituency is full of opportunities for young people, and we want to ensure that they get them.
Mary Kelly Foy (City of Durham) (Lab)
Recent analysis by Health Equity North shows that more than £13 million will be stripped out of the local economy in the City of Durham every year due to PIP changes. That comes on top of the already worsened health conditions for people in the north-east due to Tory austerity. Would it not be more constructive for the Government to start by listening to the calls of disability groups and disabled people, and supporting them into work, rather than cutting the benefits first and pushing those people further into poverty?
Bradley Thomas (Bromsgrove) (Con)
So many disabled members of society are unable to demonstrate the minimum academic requirements to get on to many courses, or to secure employment. What steps are the Government taking to support those people, so that they can demonstrate vocational and non-academic competencies, and get the jobs that they deserve?
Alison McGovern
That is exactly the point of our changes to jobcentres and the £1 billion of investment in employment support—so that we can understand the pathways to work for people who have skills and talents but, as the hon. Gentleman said, perhaps not quite the right qualifications.
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
More than 9 million people in the UK are not actively seeking work, with long-term illness cited as the single largest reason. Does the Minister agree that rather than penalising those who are sick or disabled, the Government should introduce a wealth tax to fund a genuine transformation of our public services, enabling us to face the future with a healthier, happier and more productive workforce?
Poverty: Glasgow North East
Alison McGovern Excerpts(3 months, 3 weeks ago)
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The Minister for Employment (Alison McGovern)
As ever, it is a pleasure to serve under your chairship, Ms Butler. I congratulate my hon. Friend the Member for Glasgow North East (Maureen Burke) on securing this debate on a topic that could hardly be more important. I will take the transcript of this debate as a submission to the child poverty taskforce because Members have made significant points today. I know that my colleagues in the ministerial taskforce and in the Child Poverty Unit in the Cabinet Office will read the transcript of this debate with interest, because, as I say, Members have made very important points.
I thank the hon. Member for Aberdeen North (Kirsty Blackman), and my hon. Friends the Members for Glasgow East (John Grady), for Glasgow North (Martin Rhodes) and for Glasgow West (Patricia Ferguson), for their contributions. I had the pleasure of reading the submission from the child poverty taskforce event that my hon. Friend the Member for Glasgow West held recently. I, too, read the story of the child she mentioned. We should not apologise for engaging emotionally with this issue, because nothing matters more than the fortunes of our kids in this country.
I also thank the hon. Member for Mid Dunbartonshire (Susan Murray). I welcome all the contributions that have been made as we move towards the publication of our child poverty strategy. I know that my hon. Friend the Member for Glasgow North recently met some of my DWP colleagues at the Springburn Jobcentre Plus office. I hope that she found them to be really helpful, because they will have enjoyed meeting her. I encourage all Members from all parties to engage with their local DWP teams in their local jobcentres. They are brilliant human beings and all constituency MPs can get a lot out of working with them, so I thank my hon. Friend for doing just that.
As has been made evident by this debate, poverty is a stain on this country, and tackling it is a priority. Our plan for change as a Government includes giving children the best start in life, as well as raising living standards in each and every part of the United Kingdom. Reducing poverty is vital to achieving both those ambitions, and to the lives and life chances of millions of people living in hardship right now. That hardship has been caused, as Members have said, by a combination of social and economic failures.
I feel an affinity with Glasgow. It is a wonderful city and shares many features with my own Merseyside. As on Merseyside, Glasgow’s industrial past of shipbuilding and the long-running effects of deindustrialisation have had huge consequences. One of the points that has come out of this debate really clearly is that all of that not only has poverty consequences but consequential health impacts. I know that picture in Glasgow and it is true for my home as well, so I feel it. These problems are acute and places like Glasgow have felt the consequences of policy failures over a very long period. We have heard some of the statistics already. Glasgow, the city, has the second highest level of people on out-of-work benefits in Britain. That is not a good enough future for a wonderful city.
In my role as Minister for Employment—though in my life, many times before—I have been fortunate to be in Glasgow to hear directly about not only the problems that the city faces, but the opportunities and the work to support people in Glasgow. Last October, I was pleased to meet a number of partners tackling child poverty there. We see good results when we are able to join up support for people, and that is the kind of approach I want to feed into our child poverty strategy when it is published. I apologise in advance for not being able to give all the details of what will be in the strategy, but I know that Members will understand and be patient. The strategy, which we are all anxious to have, is coming.
The DWP in Scotland is working closely with partners in Glasgow, including on identifying where we can join up support to make it better and employers that can help to give people a good chance in life. In November, as part of the child poverty taskforce, I was fortunate to meet child poverty charities, experts, parents and children in Glasgow. They told me their stories, their challenges and their priorities, putting those into the development of our strategy, which is focused on increasing incomes, reducing costs and supporting families with better local services, so Glasgow will influence it. We have heard from people, as we have done again today. We understand what they need. This has to be a cross-Government strategy. Members have mentioned health, housing and education, and we will work across the UK Government and with the Scottish Government to ensure that it is an effective strategy.
I will take a moment to describe action we have already delivered to tackle the scourge of poverty. We have taken some urgent steps before being able to publish the strategy. We extended the household support fund, which councils in England can use to support low-income households, so there was extra funding for Scotland through the Barnett formula. That support is there for crises, which is important, but beyond that, we know that we need to act on incomes and ensure that people can do better.
Just last week, therefore, our fair repayment rate for universal credit came into effect, reducing how much people in debt can have taken off their benefits to pay what they owe. A maximum of 25% of someone’s universal credit standard allowance has been reduced to 15%. On average, affected households will benefit by £420 a year, reducing the impact of debt on people. As my dad always used to say, “Out of debt, out of danger.” As a result of the change, 110,000 of Scotland’s poorest households will now be better off. That marks the Government’s first step into a wider review of universal credit to ensure that it works to help lift people out of poverty.
Thanks to our commitment to the triple lock, more than 1 million pensioners in Scotland will benefit from as much as £470 a year being added to their state pension this year, following the increase we implemented last month. That is on top of the biggest-ever pension credit take-up campaign, helping to drive up claims by 81% in the 30 weeks since July, compared with the same period a year earlier.
My hon. Friend the Member for Glasgow North East asked a couple of questions about the Green Paper and our proposed changes. She asked me specifically about end-of-life care—I agree that the work of Marie Curie and others is deeply impressive. The DWP supports people nearing the end of life through the special rules for end of life. Those rules enable such people to get faster and easier access to certain benefits without needing to attend a medical assessment or to serve waiting periods. In most cases, they receive the highest rate of benefits. Those rules have been extended to apply to people who have 12 months of life to live, rather than six months, so that people can receive that vital support through the special rules six months earlier.
My hon. Friend also asked me about new employment support and how we will protect people where work is simply not possible. That is a really important point, because we know that there are people who need to be protected. The Green Paper outlines how we will consult on that and work on our safeguarding policies to make sure the process of protecting those people is improved. My particular passion on employment support is making sure that people are treated with real dignity, and that our fantastic frontline staff in jobcentres are able to see the person in front of them, not for it to be a box-ticking exercise, but to make sure that person has access to great opportunities. That is the whole point of our employment support changes.
The hon. Member for Aberdeen North asked about the process in Scotland. That will be finalised as we get towards the White Paper in autumn. As she pointed out, we need to make sure that we have got the solution right for Scotland. We will work with the Scottish Government to do that.
In her maiden speech last year, my hon. Friend the Member for Glasgow North East said:
“Education and further education are a route out of poverty. It gives you a sense of achievement, self-belief and the confidence that anything is possible.”—[Official Report, 15 October 2024; Vol. 754, c. 765.]
My hon. Friend was absolutely spot on with that sense that anything is possible. She was also right when she said earlier that poverty is theft, because you rob people of that sense of what is possible when you leave them with the indignity of poverty. That is why our whole strategy is about giving people chances and choices in life, with them learning skills and gaining qualifications. We are creating more good jobs through the modern industrial strategy. It is about unleashing the full potential of great cities like Glasgow so they have the growth and prosperity that they should have. Good jobs, with our plan to make work pay, will put money in the pockets of people in Glasgow and give them the dignity, self-respect, chances and choices that they deserve.
We need radical change to the help that we give people to escape poverty and to get a good job, but we need the whole Government to act together, and with devolved Administrations, collaborating in work that will see people do much better. I know that Glasgow is a wonderful place, which I have been welcomed to many times, but I also know the truth of what we have heard today—that people in Glasgow are robbed of years of good life that they should have, because of the shame of poverty. I am glad to be able to work with good colleagues from all parties who care about ending poverty to get the right set of policies in our strategy and to make those policies real, so that people have the chances, choices and dignity they deserve.
Oral Answers to Questions
Alison McGovern Excerpts(5 months, 2 weeks ago)
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Mr Joshua Reynolds (Maidenhead) (LD)
The Minister for Employment (Alison McGovern)
The two-child benefit cap was introduced by the Conservative party 10 years ago. Its period in office saw child poverty rise to over 4 million and one in three of our children arriving at primary school not ready to learn. As soon as the Secretary of State and I were appointed, we got to work to establish our child poverty taskforce, as promised in Labour’s manifesto, and those efforts are ongoing.
Mr Joshua Reynolds
A BMJ study found that people in food poverty have diets with worse health outcomes including more fat, sugar and salt, so what conversations has the Minister had with the Health Secretary about how lifting the two-child benefit cap could improve diet and reduce costs for the NHS?
Alison McGovern
The Health Secretary and I talked about child poverty many times as we sat on the Opposition Benches watching the situation for our kids get worse and worse every year. The Member makes a very serious and important point about the wide-ranging consequences of poverty and, if I may, I would encourage him to submit the evidence he mentioned to the child poverty taskforce so that we can take full account of it.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
One in two children in my constituency live in poverty. There is a lot of speculation swirling around the excellent child poverty taskforce, which I applaud the Government for establishing, including that the cap could be lifted for under-fives, which would affect fewer than 20,000 households compared with the 440,000 households which currently are affected by the two-child benefit cap. Can the Minister reassure the House and the country that the child poverty taskforce is looking to support all children in poverty, whatever decisions it comes up with, and not just a small segment of them?
Alison McGovern
Yes, I can. All children matter. We are taking account of a considerable range of different policy options, carefully working through the impact that they would have, but all the children in this country matter.
Paul Holmes (Hamble Valley) (Con)
The Minister for Employment (Alison McGovern)
I meet regularly with Business and Trade Ministers. We are committed to working with businesses to ensure that policy is pro-employer and pro-worker. Boosting wages will increase workforce participation, helping employers fill vacancies and supporting us to reach our ambition of 80% employment.
Paul Holmes
With many Labour Members claiming that they care about young people being employed, has the Minister’s Department made assessments about the employment impact of the decision to introduce minimum guaranteed hours for students and young people who rely on the flexibility of being able to pick and choose their work hours, particularly those who are working in the hospitality sector, which is being decimated by this Government?
Alison McGovern
I think the hon. Gentleman is referring to the ban on exploitative zero-hours contracts, but if somebody wants a flexible hours contract, then that is a good thing, and nothing in the changes prevents that. In fact, since I have been at the DWP, I have found that employers have not had sufficient contact from jobcentres and only one in six employers think about using them. When getting young people a proper range of choices and jobs through the jobcentre, not nearly enough work has been done to serve employers better. That is what a real growth agenda looks like from DWP.
Deirdre Costigan (Ealing Southall) (Lab)
Lá Fhéile Pádraig Sona Duit—a happy St Patrick’s day to you, Mr Speaker, and all your team.
The disability employment gap stands at 30% and countless disabled workers end up out of work because their employers refuse to make simple changes that would help them to do their jobs. Does the Minister agree that the default right to flexible working in Labour’s Employment Rights Bill will help many disabled workers to keep the jobs they love? What else can the Minister’s Department do to help more disabled people to find and keep work?
Alison McGovern
May I first say how great it is to hear the beautiful language of Irish spoken in this Chamber?
With the increase in conditions that can be variable over time, the flexible working right will help people. The Minister for Social Security and Disability and I are working closely with disabled people’s organisations, charities and others to think about how we can build those pathways into work as we change jobcentres and improve employment support, ensuring that raising disability employment rates is at the heart of those changes.
Lincoln Jopp (Spelthorne) (Con)
The Minister for Employment (Alison McGovern)
The introduction of universal credit and the policy choices of the last Conservative Government seem to have had some effect on people’s propensity to be in work. In January, the Department for Work and Pensions published data showing that of the increase in the incapacity benefits caseload since the 2018 universal credit roll-out, 30% of the rise in claims could be explained by foreseeable demographic change and the effect of the structural alterations to the benefit. That leaves 70% of the increase that we do not have data to explain, but the Office for Budget Responsibility and others have drawn attention to the structure of social security and the changes over the past decade. On publishing the analysis I just mentioned, I told the House that the previous Conservative Government took decisions on social security that
“segregated people away from work and forgot about them.”—[Official Report, 29 January 2025; Vol. 761, c. 366.]
I stand by those comments.
Lincoln Jopp
The people of Spelthorne are very hard-working and do not mind their taxes being paid for a safety net for the most vulnerable in our society, but they really do get annoyed when they see their taxes going to people who are scamming the benefits system. What assessment have any of the Ministers on the Front Bench made of so-called sickfluencer sites—social media platforms where people are shown how to game the benefits system? Have any of them looked at those sites? Are they a good or bad thing?
Alison McGovern
The hon. Gentleman will know that the Public Authorities (Fraud, Error and Recovery) Bill is going through the House at the moment. The issue that he has raised is at the forefront of the attention of the Minister for Transformation, my hon. Friend the Member for Stretford and Urmston (Andrew Western), who will take every step he can to deal with issues in that area.
Chris Vince (Harlow) (Lab/Co-op)
On Friday I visited Stansted airport, a huge employer for my constituency, and found out about the important work it is doing with the DWP and the jobcentre to get long-term unemployed people back into work. What work is the Department doing with organisations such as Stansted airport to promote good practice, such as that at Stansted and Working Minds in my constituency?
Alison McGovern
Through my hon. Friend, I give my thanks to everybody at Harlow jobcentre, because it sounds like they have their shoulders to the wheel in getting job opportunities for people who need them. When we arrived in the Department, we uncovered that there was not nearly a good enough relationship between the Department and employers. That is why we put a new strategy in place to do the basics well: there is a single point of contact and we are making sure that there is on-the-job training that is tailored to specific employers. We will be doing more to promote change in that area, but I thank everyone in Harlow for the efforts they are making.
Steve Darling (Torbay) (LD)
There continue to be unacceptable delays in processing Access to Work applications, both for my constituents in Torbay and across the country. This leads to fears among disabled people that job offers will be withdrawn by their would-be employers. What reassurance can the Minister give the Chamber that the Government have plans afoot to tackle that backlog?
Alison McGovern
The hon. Member makes an important point. We had a manifesto commitment to try to tackle the backlog. We have put more staff in place to deal with that backlog, but we have more to do, because it is important that disabled people are able to take up jobs that are offered to them. We need to make sure that that is a scheme that works.
Vikki Slade (Mid Dorset and North Poole) (LD)
The Minister for Employment (Alison McGovern)
Official unemployment currently sits at 4.4%, which is clearly much lower than the historic high of 11.9% in June 1984. However, today’s official unemployment level masks the legacy of the Conservatives’ recent period in office, which saw the number of people off sick rise to nearly 3 million, concentrated in places with employment rates well below the national average, creating a vicious circle where people are forced to leave the place they love for the chance of a career, and where those who are left do worse and worse. That is why, as part of our “Get Britain Working” reforms, we are building a new jobs and careers service that will be locally tailored and will help everyone find access to support to get a good, meaningful job and to progress in work.
Mr Holden
Compared with this time last year, almost 500 more people are on the claimant count in Basildon and Billericay. Almost 100 of those are under 25. How many more will have to be made unemployed before Labour Ministers listen to charities, GPs, supermarkets, manufacturers and care providers? They visited me in my constituency and said that Labour needs to think again about its catastrophic national insurance rise which, before it even hits in April, is already costing the jobs of my constituents.
Alison McGovern
We have a significant reform plan to make sure that we tailor jobcentre support towards the needs of employers, because there is still a significant number of vacancies out there that young people should be making the most of to start their career and progress in life. That is why we have a new employer strategy, so that the Department for Work and Pensions can serve businesses properly.
Neil Duncan-Jordan (Poole) (Lab)
Disabled people often face additional barriers when trying to get back into work. Does the Minister acknowledge that rather than freezing or cutting their benefits, we will need to invest in those people to help them back into work and to sustain them there?
Alison McGovern
Yes, I do agree. We see potential in every single person in the country, and many of those who have been written off and left on the scrapheap deserve a much better pathway back into work.
Markus Campbell-Savours (Penrith and Solway) (Lab)
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
The Minister for Employment (Alison McGovern)
In the year to September 2024, 4.7% of working-age people were unemployed in Stoke-on-Trent, but as I said earlier, that often masks bigger problems relating to economic inactivity, frequently caused by ill health. We propose to join up work, health and skills support, and to ensure that local areas throughout England have “Get Britain Working” plans so that every part of the country has a plan to grow.
Gareth Snell
It is clear that the Government are making a serious attempt to remove the barriers preventing people with mental health conditions from entering work. May I issue an invitation to the Minister, and commend to her the work of the combined healthcare trust in Stoke-on-Trent and its peer support mentors? These are people who have overcome mental health challenges and now work with other people struggling with their own mental health to build confidence and opportunity. Whatever plan the Government introduce, work of this kind should be central to it, and I think that if they came to see it, they would be very impressed.
Alison McGovern
I would love to come to Stoke—[Interruption.] There are so many football-related jokes that I could make at this point, but I will not trouble the House. I would love to come to Stoke, and not just on a wet Tuesday night.
My hon. Friend makes the case for exactly the strategy that underpins our reform, which is to join up health and work support. I have seen in my own constituency the power of peer mentors for mental health conditions, and I would love to come and see the brilliant work that my hon. Friend has described.
David Williams (Stoke-on-Trent North) (Lab)
Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)
The Minister for Employment (Alison McGovern)
JobsPlus pilots were launched in July 2024 and are helping to address employment barriers for the residents of 10 social housing communities. We plan to publish our initial evaluation in the summer, which will help us to understand more about how this type of innovative community-led employment might support our vision to get Britain working. I look forward to working with all Members, especially my hon. Friend, on the next steps for this project.
Bradley Thomas (Bromsgrove) (Con)
Alison McGovern
I absolutely join the hon. Member in thanking all the organisations he mentions. If he could link them up with his local jobcentre, we can help make the connection between young people who have suffered disadvantage and that really positive community support that is available for them in his constituency. That would be very helpful.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Alison McGovern
As my hon. Friend mentions, there are important opportunities in Slough that the young people growing up there need to be able to take advantage of. That is why we launched our youth guarantee as part of our plan to get Britain working. It will be there for 18 to 21-year-olds. Again, I encourage my hon. Friend to work with his local jobcentre in Slough as we improve the support available for young people.
Vikki Slade (Mid Dorset and North Poole) (LD)
Julia Lopez (Hornchurch and Upminster) (Con)
At a constituency meeting last week, I was told that small businesses are starting to ask employees to go self-employed as they cannot otherwise keep roles open because of forthcoming national insurance contribution rises and extra employment laws. Will the Department watch out for this trend in its data, in case it was not the Government’s intention to make workers less secure with these new taxes and more regulations?
Alison McGovern
Since we took office, we have published research, reports, data and other bits of information that the Department for Work and Pensions had previously been sitting on. The hon. Lady can rest assured that we monitor employment trends and are keen to ensure that the DWP is far more transparent about data than it has been.
Noah Law (St Austell and Newquay) (Lab)
Work and Pensions
Alison McGovern Excerpts(6 months, 3 weeks ago)
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Alison McGovern
… What was the result of a decade of Conservative welfare caps? Repeated breaches of the cap, with ever higher limits. The latest cap is now on course to be breached by an £8.6 billion overspend. This is not tolerable, given the state of our economy and the public finances.
[Official Report, 29 January 2025; Vol. 761, c. 364.]
Written correction submitted by the Minister for Employment, the hon. Member for Birkenhead (Alison McGovern):
Alison McGovern
… What was the result of a decade of Conservative welfare caps? Repeated breaches of the cap, with ever higher limits. The latest cap, with a margin included, is now on course to be breached by an £8.6 billion overspend. This is not tolerable, given the state of our economy and the public finances.
Community and Third Sector Organisations: Employment
Alison McGovern Excerpts(6 months, 3 weeks ago)
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The Minister for Employment (Alison McGovern)
I thank and pay tribute to my hon. Friend the Member for Birmingham Erdington (Paulette Hamilton), who brought the debate to the House this evening. All hon. Members will agree that her passion and commitment to her constituency and this subject shine through. I can only say what an absolute honour it was to visit her constituency to discuss the work of the north Birmingham economic recovery board. I will come shortly to the situation in Birmingham and the approach that my hon. Friend recommends that the Government take. I hope that her remarks at the end of her speech on the purpose of politics and the role we all must play in giving everybody a chance and an opportunity in our society would be supported across the House, but she makes the case well for that approach.
And so to Birmingham. This debate is important for many reasons, not least because some parts of our country suffer much worse than others with poor employment outcomes. The Government are committed to moving towards our goal of an 80% employment rate, though some places in our country are already there. Unfortunately, that is not the case in Birmingham where the employment rate is around just 66%. That is not acceptable because when some parts of our country fall behind economically, it is bad for those places and bad for all of us, because it means that some people in our country cannot play their full role in our economic growth.
Economic inactivity is also higher than the average, and that is why our reform plans take a different approach. We are no longer doing the same thing everywhere, but trying to tailor and personalise our employment support to where people are and what they need.
Richard Baker
Does the Minister agree that one of the challenges with previous models of employability support is that they have not been tailored and they have not meet the needs of people for sustained support in that employment? Does she agree that one of the benefits of what my hon. Friend the Member for Birmingham Erdington (Paulette Hamilton) said is that those third sector partnerships, which bring together organisations with great expertise in certain areas in a consortium model, provide the best opportunity for a one-stop shop for people to get the tailored support that will sustain them in employment, as well as helping them find that job in the first place?
Alison McGovern
My hon. Friend is right. When I was in Erdington, my Department for Work and Pensions colleagues and I met the college, Witton Lodge and other community partners. By bringing those people together around a common goal, we can change the fortunes of a place. As I will explain in a moment, that approach is knitted into what we set out in the White Paper in November.
I want to mention my DWP colleague Lucy Divers, who has worked as part of the north Birmingham economic recovery board to bring DWP right to the heart of this local community approach. That is the right way to have a partnership where people can bring their different expertise to tackling the ingrained problems of economic disadvantage and unemployment. I met colleagues in Erdington, and we talked through the various challenges. I was struck by the importance of skills and the need to address the skills deficit, but we also need to ensure that young people—Birmingham is quite a young city—have access to the best possible jobs.
I want to mention a few ways in which the Government have redesigned employment support to try to bring this new localised approach to enable us to work better with community and third sector partners. The last Parliament saw the biggest increase in economic inactivity in nearly 40 years. We remain the only G7 country with a higher rate of economic inactivity now than before the pandemic. We have a near-record 2.8 million people out of work due to long-term sickness, and, tragically, almost a million young people are not in education, employment or training and many more are stuck in low-paid work. This is an absolute crisis. It is the biggest unemployment crisis in our generation.
We know that we have to learn the lessons of the failures of the past 14 years. We cannot keep going in the same direction; we needed to change course. For me, that means localising our services, so we pay attention to the specific features of each place that we are trying to help.
David Williams
On localised services, other programmes of years gone by, such as the Work programme, had big contract package areas and moved towards nationalised models, and a lot of voluntary groups would describe themselves as “bid candy”—they were included as subcontractor partners, but they did not have any ownership of how services were delivered on the ground. Does my hon. Friend agree that we need to move away from that model and towards understanding what local groups, which are rooted in their communities, can do to really play their part?
Alison McGovern
It is testament to the importance of this issue, and to how strongly Members feel about tackling unemployment in their constituencies and working across and in partnership with community groups, that so many have stayed for the Adjournment in order to make detailed points, as my hon. Friend has, on a matter that is the biggest challenge in some constituencies. I thank him for bringing that expertise and hope that we can continue this conversation as the DWP moves forward with our change programme.
As I was saying, the challenge is great. We need a totally different approach and much more local collaboration. That is why our “Get Britain Working” plan sets out three major reforms. The first is creating a new jobs and careers service that will test, trial and develop different ways of working to get much closer to communities. We are already seeing work coaches take their role out into communities to connect with people where they are, using the expertise of local community groups. We have also set up a number of trailblazers, including in the west midlands, to collaborate with the NHS and other organisations to give young people and those who are out of work because of ill health the support they need to get back into work, develop their talents and take up the opportunities on offer.
I know that we will not do that without better support for employers. That is one of the reasons I was so heartened to have a conversation in Erdington about the different employers and opportunities in Birmingham and across the midlands, and about ensuring that the DWP plays its role in serving employers better and getting the best-quality roles into jobcentres so that they are available to people who might otherwise be overlooked. That has been a crucial part of the north Birmingham economic recovery board, about which I learned, and it is a great example of how local leaders can take action, through work with employers, to get to the heart of unemployment and inequality.
I will respond to one point raised by my hon. Friend the Member for York Central (Rachael Maskell) about enabling community groups and third sector organisations to test the efficacy of their work. She comes from the great social research city of York, so there is nobody better to make that point. Organisations can use the DWP’s data lab to establish the effectiveness of their employment programme. I encourage third sector organisations, charities and beyond to work with us to get to the heart of how we can effectively support people into work and into better work.
Tom Collins (Worcester) (Lab)
I am encouraged by the collaborative approach that the Minister is describing. Business and the third sector have demonstrated the power of an approach that involves just beginning and focusing on the person—the end user—and then iterating rapidly. That responsive, agile approach is really effective. Does she agree that the Government need to adopt that approach more and more as we try to address these big challenges?
Alison McGovern
I thank my hon. Friend for his intervention. I think he has described the approach that the Chancellor of the Duchy of Lancaster has recommended to us all: testing and trialling things quickly and reviewing what works and what does not work, and trying to respond swiftly and change quickly, rather than setting out a huge great plan that takes years to develop. That is an approach that the DWP is trying to model now. Only this morning, I was in Bolton with some work coaches who have developed a jobcentre on wheels—a van that we can take out to communities. They have done that pretty swiftly, and as my hon. Friend has described, they are trying to work out what works on the ground there so that they can feed back to us.
I will conclude now, Madam Deputy Speaker, because I fear that collectively, all of us in the Chamber could probably speak about this topic for about three hours uninterrupted. We had better not do that, but I want to finish by saying how important it is that we have had this debate this evening. The “Get Britain Working” plan sets out the requirement for all places to have such a plan for themselves, so that they can work out where their employment challenges are and work collectively to address them. Everywhere in our country must have a plan for growth, and our reforms nationally are in the spirit of the local action that we have seen in the north Birmingham area. Economic growth needs us all to pull together, and we know that when we do so, the benefits will be widely spread.
Question put and agreed to.
Oral Answers to Questions
Alison McGovern Excerpts(6 months, 4 weeks ago)
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Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)
The Minister for Employment (Alison McGovern)
Increasing employment and helping people into good work is essential to growing our economy, which is why our “Get Britain Working” plan sets out our vision to reform jobcentres and build a new jobs and careers service that will meet the different needs of local labour markets, people and businesses.
Deirdre Costigan
On Friday, I visited the assessment centre at the west Ealing jobcentre, where staff told me the assessments focus on proving that disabled people cannot work, rather than identifying what jobs they could do if they had the right support. Many disabled people in my constituency are eager for a good job. What more could jobcentres and the Department do to help disabled people into work, rather than simply writing them off?
Alison McGovern
I thank my hon. Friend for meeting with Department for Work and Pensions colleagues in west Ealing and, through her, thank them for all the work they are doing. I know she will have been impressed by them, as I always am.
Disabled people have a right to work like everyone else, and it is our job to see that right realised. Doing so will benefit everyone, as we all win when people’s talents and potential are maximised. It is good for business and strengthens our economy. We are doing great things to bring forward our plan for a new jobs and careers service, which will put disabled people at its heart.
Lee Pitcher
I recently visited two jobcentres in my area, Thorne and Scunthorpe, and saw the great work being done by the staff there. Our jobcentres should be places where everyone can go for help to get them back into work. However, many blind and visually impaired people need technology such as screen readers to use computers, while others might need specialist screen magnification software. Research by Sense has found that no jobcentres have this specialist assistive technology, meaning that some disabled jobseekers cannot use the computers on site to look for work. How will the Government ensure that jobcentres are equipped with essential pieces of assistive technology in the future, enabling more disabled people to look for work?
Alison McGovern
I apologise to my hon. Friend; I could not quite hear which jobcentres he has visited. However, I thank him for doing so and for connecting with DWP colleagues in that way; it is really valuable. I ask him to take all our thanks back to them.
As part of the new jobs and careers service, we will radically enhance our use of technology so that people can access support through the channels that best meet their needs. Assistive technology can aid the accessibility and inclusiveness of the new service that we are building, so we are listening to those who already use it.
On 22 January, the Minister for disabled people, my right hon. Friend the Member for East Ham (Sir Stephen Timms), and I met colleagues from across Parliament on the all-party parliamentary group on eye health and visual impairment, where we had a great opportunity to listen to experts in this field.
Mr Peter Bedford (Mid Leicestershire) (Con)
Does the Minister agree that whatever steps her Department is taking to get people into work are being immediately undermined by the anti-growth, anti-jobs and anti-business measures included in the Government’s Employment Rights Bill?
Alex Easton (North Down) (Ind)
Will the Minister join me in commending the dedication and hard work of our work coaches, who assist with job applications and interview preparations?
Alison McGovern
On that one, I certainly will agree. Our work coaches are absolutely brilliant, and they are leading the way in changing jobcentres.
Neil Duncan-Jordan (Poole) (Lab)
The Minister for Employment (Alison McGovern)
Thanks to the dreadful inheritance left to us by the Tory Government, we need to raise productivity, reduce economic inactivity, increase employment rates and drive up economic growth. Our “Get Britain Working” plan sets out how we will progress our ambition of an 80% employment rate, which would place the UK among the highest-performing countries in the world.
Mr Snowden
There was some lovely wording in that answer, but the Government appear to be doing absolutely the opposite. Following the Budget, it appears that there is not a week that goes by without another employer announcing significant job cuts. Reed recruitment has already announced that job postings are plummeting. What will the Government do to support the Minister’s Department in the situation it will find itself in—a rapidly increasing number of people looking for jobs and a rapidly decreasing number of jobs being posted because of the Government’s policies?
Alison McGovern
I am glad the hon. Gentleman is bothered by the employment rate and I hope he is bothered by the record of his party, which saw employment fall off a cliff after the pandemic and never recover. We were an outlier in that; it did not happen anywhere else in the world. As it is, our jobcentres, which, as we have said, are full of brilliant staff, see just one in six employers ever consider using them to recruit. We will change that. We have a new strategy. The Secretary of State recently announced our plan to ensure that the Department of Work and Pensions serves businesses and that we get the best jobs into jobcentres so that people can take them up, improve their lives and grow our economy.
Luke Akehurst (North Durham) (Lab)
Liz Jarvis (Eastleigh) (LD)
The Minister for Employment (Alison McGovern)
It is a terrible consequence of 14 years of Conservative misrule that around 4.3 million of our children are growing up in poverty. That is why the child poverty taskforce’s work to complete our strategy is urgent. Taskforce Ministers have met six times and have had extensive engagement with people across the country, including external experts, local leaders and children and their families living in poverty.
Liz Jarvis
According to the End Child Poverty coalition, in 2022-23 the child poverty rate after housing costs in my constituency of Eastleigh was 21%. Analysis by the Joseph Rowntree Foundation projects that child poverty in England will rise to 31.5% by 2029. Every day without action pushes more children into hardship, and they cannot wait for the Government’s strategy to be published. What urgent measures will the Government take now to prevent more children from growing up in poverty?
Alison McGovern
The hon. Lady is absolutely right: this issue is urgent. That was why in the Budget the Chancellor announced the fair repayment rate, which stops families having to deal with so much debt through the universal credit system, saving families over £400 a year, but we know we have to go further. That is why, as I mentioned, Ministers are working hard to bring forward our child poverty strategy.
Tonia Antoniazzi (Gower) (Lab)
I know the Government are working hard on developing their child poverty strategy, but what discussions is the Minister having with the Welsh Government to ensure that combined efforts deliver the best for our children, wherever they live?
Alison McGovern
I regularly meet representatives of the Welsh Government because while we strongly believe in devolution, we know that a partnership between Governments is the best way to protect our children from the terrible consequences of the poverty that the Conservatives left them in.
Kirsty Blackman (Aberdeen North) (SNP)
I am pleased that the Minister is updating us with progress. Does she believe the poverty strategy will be announced quickly enough for there to be changes made in, for example, the spring or autumn statements, or are we looking into next year? Please could she give an idea of the timeline?
Alison McGovern
I hope the hon. Lady will understand from the tone of what I said that this matter is urgent and that we are working quickly and will bring forward proposals as soon as we can.
Brian Leishman (Alloa and Grangemouth) (Lab)
Alarmingly, there has been talk of ruthless cuts to welfare. That would be utterly devastating as any cuts would push more families into poverty. We will not see a reduction to child poverty by economic growth alone; it will require targeted policy action—something that the Trussell Trust and the Joseph Rowntree Foundation agree with in their essentials guarantee. Do Ministers have plans to change the basic rate of universal credit so that it reflects the cost of life’s essentials—food and household bills?
Alison McGovern
As I have said several times, we are working quickly to bring forward the detail of that plan. In fact, only last week we had a parliamentary engagement session so that colleagues across the House could be brought up to speed on the detail of that work. I sat on the Opposition Benches and watched for 14 years as the Conservatives put our children into poverty. We will waste no time in dealing with this problem.
Steve Darling (Torbay) (LD)
Children in poverty in Torbay make up 23% of our population but 100% of our future. Barnardo’s recently highlighted that the most powerful tool in the Government’s toolbox to tackle child poverty is ending the two-child cap. Only last week, the annual poverty report by the Joseph Rowntree Foundation came to the same conclusion. When will the Minister come to that same conclusion and end the two-child cap?
Alison McGovern
I thank the hon. Gentleman for his question and for coming along to our parliamentary engagement session last week, which I hope he agrees was a productive update for everybody. As I just mentioned, I watched from the Opposition Benches as various policies, including the one he mentions, were introduced. We can see their consequences all around us. We cannot promise to do anything that we cannot pay for, but we are determined to have a child poverty strategy that works.
Perran Moon (Camborne and Redruth) (Lab)
Peter Swallow (Bracknell) (Lab)
The Minister for Employment (Alison McGovern)
I thank my hon. Friend for his question, and I am so pleased to hear about that work in Bracknell Forest. That is why the fourth part of our child poverty strategy is about local support. I look forward to working with my hon. Friend and his constituents to ensure that strategy is a success.
Dr Danny Chambers (Winchester) (LD)
The Child Poverty Action Group has reported that 4.3 million children in the UK are living in poverty. In a classroom of 30, that is nine children living in poverty. Given that the Government have ruled out scrapping the two-child benefit cap, will the Minister commit to publishing measurable targets for reducing child poverty during this Parliament?
Alison McGovern
As I have already mentioned in a number of responses, we understand the scale and seriousness of the problem the hon. Member mentions. We have already published the terms of reference for the child poverty taskforce, and we will continue to keep the House updated as we move forward, given the seriousness of the issue.
Andrew Pakes (Peterborough) (Lab)
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
The Minister will have heard several references to the Joseph Rowntree Foundation report this afternoon. The report demonstrates not only that extreme poverty is rising, but that the only part of these islands where child poverty will fall in the next four years is Scotland. Is it not time that the Westminster Government took a leaf out of the Scottish Government’s book?
Alison McGovern
I think it is fair to say that we have spent a great deal of time talking to people from all parts of the United Kingdom, and we will continue to do so, because only a strategy that covers all of the UK will be a success.
Darren Paffey (Southampton Itchen) (Lab)
We all know that the best route out of poverty is through well-paid work, but for families in my constituency, where a third of children grow up in poverty, low-paid and insecure jobs are a massive barrier. What will the Department do to help more families back into work and to alleviate poverty for children growing up in Southampton Itchen?
Alison McGovern
My hon. Friend eloquently makes the case for our “Make Work Pay” reforms. This is not just about helping our economy grow, it is also about protecting people from poverty. In all we do to change jobcentres, we want to support people into good, sustainable, well-paid work because that is the best way out of poverty.
Sarah Olney (Richmond Park) (LD)
A constituent came to see me last week who had not eaten for four days. Her state pension had increased in line with the triple lock but this took her over the threshold for pension credit, which then took away her entitlement to a range of other benefits including the winter fuel allowance. What are the Government doing to ensure people do not experience such a significant cliff edge?
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
I applaud the Front-Bench team for its energy in driving the child poverty taskforce, but every decision has consequences and costs. Will the Minister outline the costs of some of the processes she is looking at changing, particularly the cost of lifting the two-child cap, and if she does not have the figure to hand will she write to me?
Alison McGovern
I thank my hon. Friend the Chair of the Treasury Committee for all her work on this issue. I will happily engage with her through correspondence on the matter.