Oral Answers to Questions

Alok Sharma Excerpts

Monday 2nd July 2018 Commons Chamber

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

4. What assessment she has made of the efficacy of universal credit in supporting people into work.

[The Minister for Employment (Alok Sharma)]

The Department published an analysis on 8 June which showed a near doubling of the proportion of UC claimants in a paid job after eight months into the claim. The Department published analysis last year which shows that UC claimants are 4 percentage points more likely to be in work than an equivalent claimant on JSA six months after their claim.

[Neil Coyle]

The National Audit Office reported that the Department will never be able to measure whether universal credit actually leads to more people in work because it cannot isolate the effect of UC against other economic factors. So if the Department serious in what it told the NAO about intending to evaluate specifically the impact of UC, is that evaluation under way, how many people are being evaluated and when will it report?

[Alok Sharma]

As the Secretary of State has said, we are at record levels of employment in this country and that is because of the policies of this Government. The hon. Gentleman talks about the 200,000 extra people who will be in work as a result of UC. He will also know that, in 2012, the Institute for Fiscal Studies looked at the methodology, which related to the key element of this, which was the financial incentives that will make more people go into work, and it concluded that this was within the plausible range.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my hon. Friend agree that it is right that our welfare system supports those in need, but in the long term the best way out of poverty is sustainable employment?

[Alok Sharma]

My hon. Friend is absolutely right. We are at record levels of employment in this country. It is interesting that the Opposition talk about estimates. If I remember correctly, back in 2010, the Opposition said we would lose 1 million jobs as a result of our policies, but we have created 3.2 million. At the end of the day, when it comes to estimates, I am not taking lectures from the Opposition.

[David Hanson (Delyn) (Lab)]

5. What assessment she has made of the implications for her Department’s policies of the findings of the NAO report entitled rolling out universal credit, published on 15 June 2018.

--- Later in debate ---

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

7. What progress her Department is making on the roll-out of universal credit.

[The Minister for Employment (Alok Sharma)]

Nearly 1 million people are now claiming universal credit, with around 37% of them in employment. We take 5,000 new claims a day and universal credit is operational in half of all jobcentres, with the full roll-out expected to be concluded by the end of the year.

[Gavin Newlands]

From the Government’s own business case for universal credit, it transpires that just 3% of those who have been brought into conditionality under universal credit are expected to find work, as a result of sanctions. Given that my constituents are going to suffer this roll-out in September, does he think that this is a robust business case for his Department’s punitive and callous sanctions regime?

[Michael Fabricant (Lichfield) (Con)]

Enunciate, man!

[Alok Sharma]

The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) talks about sanctions, but he will know that the regime is different. For example, under JSA if somebody who was due to come in for an interview does not contact us after five days, they fall out of the system and are not sanctioned. Under universal credit, however, we continue to pay all the elements—the child element and the housing element—but the sanction that they would face applies only to the standard allowance. The hon. Gentleman talks about wanting to help people, but the Scottish National party voted against £1.5 billion of support. If he wants to support people, he should try to support the Government from time to time.

[Mr Speaker]

Order. The hon. Member for Lichfield (Michael Fabricant), from a sedentary position and rather gratuitously, offered advice and exhortation to the hon. Member for Paisley and Renfrewshire North (Gavin Newlands). I simply say to the hon. Member for Lichfield that we can always hear him with crystal clarity. He is in no danger of not being noticed.

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[Jessica Morden (Newport East) (Lab)]

Constituents who do not have a passport or driving licence, because they do not drive or have no need of one or cannot afford one, cannot use the online verification system and need to be seen in person at a job centre, but there are huge waits for appointments, including for those who urgently need advance payments. What is the Minister doing to tackle that?

[Alok Sharma]

The hon. Lady knows that advance payments are available if they are required on the day. As for verification, there is a set of criteria that can be applied so that we do not have to go through the verification system. If the hon. Lady has specific cases, she should please bring them to me as I would be happy to look into them.

[Ronnie Cowan (Inverclyde) (SNP)]

8. How many universal credit applicants have died during the period that their application was being assessed and as a result have received a zero payment for the days during that period when they were alive.

[The Minister for Employment (Alok Sharma)]

For universal credit full service, around 1,200 cases have been closed with a deceased closure reason since roll-out began in 2016, with the vast majority receiving a payment.

[Ronnie Cowan]

I know of cases where no universal credit payment has been received when constituents have passed away towards the end of their assessment period. Essentially, the DWP classes someone who dies at the end of an assessment period as having died at the beginning. Will the Minister address this so that bereaved families are not financially punished?

[Alok Sharma]

I have corresponded with the hon. Gentleman about one specific case. There are circumstances in which payment is still made after the death of a claimant and where payments have continued for two subsequent assessment periods, such as when the individual was in a couple. However, I note the hon. Gentleman’s point and will look into the policy.

[Helen Goodman (Bishop Auckland) (Lab)]

A connected problem might be that the Department does not tell people whether they are entitled to prescriptions when their UC claim is awarded. Will the Department please start doing that, because several of my constituents have been in touch in deep distress because of the fivefold fines that they have been forced to pay?

[Alok Sharma]

We do not want anybody to be in distress. If colleagues on either side of the House have specific cases, they should bring them to Ministers. We hear a lot of general commentary, but we would like to help individuals, so please bring us those specific cases.

[Giles Watling (Clacton) (Con)]

9. What assessment her Department has made of rates of universal credit claimant satisfaction.

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[Alex Norris (Nottingham North) (Lab/Co-op)]

T9. Universal credit is having a profound impact on local authorities, such as enormous housing revenue account pressures. Ahead of the roll-out of universal credit in Nottingham, what new resources will be made available to Nottingham City Council to mitigate this impact?

[The Minister for Employment (Alok Sharma)]

As the hon. Gentleman will know, a “new burdens” policy is in operation and has been for many years. Where local councils come forward with specific costs, we review them and make payments. In 2017-18, £13 million was paid out to local councils.

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[Kevin Foster (Torbay) (Con)]

As the Minister will know, universal credit rolls out in Torbay on 5 September. I have already welcomed the work that has been done by the DWP to engage with me. Will he confirm what resources will be made available to ensure that the roll-out on 5 September is successful for my constituents?

[Alok Sharma]

My hon. Friend will be receiving a letter from the local jobcentre manager, and that will give him an opportunity to engage. We make sure that work coaches provide the one-to-one support that is so important under universal credit.

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

Joanne in my constituency needs 24-hour care. She was selected for early mandatory reassessment last November, a full year before her PIP was supposed to run out. She lost that reassessment and is appealing. When she lost, her money was stopped, and the family are living on food bank generosity. Does the Minister agree that that is deeply unfair? Will she take a fresh look at maintaining benefit payments for those who have early reassessments—in that case, a whole 12 months before the PIP was supposedly going to run out?

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[Rachel Maclean (Redditch) (Con)]

I do not want to see any young person in Redditch unemployed, which was why I set up Redditch Mentors, a scheme to help young people to reach their full potential. The last Labour Government presided over a record rise of 45% in young people being unemployed. What more are the Government doing to improve that?

[Alok Sharma]

May I commend my hon. Friend on all the work she does in her constituency? Youth unemployment is at a record low—it is 40% lower than it was under the last Labour Government—and programmes such as the youth support programme are available to help individuals. We value young people. It is about time that Labour did the same.

[Stephen Timms (East Ham) (Lab)]

A Minister suggested earlier that the policies of the Labour Government had not reduced poverty. Are Ministers not aware that child poverty was reduced by 800,000 over 13 years thanks to the policy of the Labour Government? Are they also aware that it is now rocketing?

[Alok Sharma]

As the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for North West Hampshire (Kit Malthouse), made clear, since 2010 there are 300,000 fewer children living in absolute poverty. As we have heard, the route out of poverty is work. We have record levels of employment, and that is something we should all welcome across the House.

[Several hon. Members rose—]

Employment, Social Policy, Health and Consumer Affairs Council

Alok Sharma Excerpts

Thursday 28th June 2018 Written Statements

[The Minister for Employment (Alok Sharma)]

The Employment, Social Policy, Health and Consumer Affairs Council met on 21 June 2018 in Luxembourg. The Deputy Permanent Representative to the European Union, Katrina Williams, represented the UK.

Three legislative proposals achieved general approach at the Council. These were the proposed revision of regulations on co-ordination of social security systems (883/04 and 987/09); the directive on transparent and predictable working conditions in the European Union 16018/17; and the directive of the European Parliament and of the Council on work-life balance for parents and carers and repealing Council directive 2010/18/E.

The Council also discussed the European semester. As part of this agenda item, the Council approved draft Council recommendations on the national reform programmes 2018 of each member state; endorsed the opinions of the Employment Committee (EMCO) and the Social Protection Committee (SPC) on the 2018 country-specific recommendations (CSRs) and the implementation of the 2017 CSRs; and adopted a proposal on guidelines for the employment policies of the member states.

There were a number of progress reports and information items during the Council. These included an update on proposals for an equal treatment directive, the proposed European Labour Authority, and an overview of the Commission’s plans for the future European social fund plus (ESF+) and European globalisation adjustment fund (EGAF).

The Council closed with updates on the status of other legislative files, broader developments in the field of employment and social policy, and an overview of the priorities of the incoming Austrian presidency.

[HCWS806]

Jobseeker’s (Back to Work Schemes) Act 2013

Alok Sharma Excerpts

Thursday 28th June 2018 Written Statements

[The Minister for Employment (Alok Sharma)]

I am today laying a proposed draft remedial order to amend the Jobseekers (Back to Work Schemes) Act 2013.

The proposed draft remedial order ensures the right to a fair hearing for a small group of jobseekers who had a live appeal against a sanction decision made under the Jobseeker’s Allowance (Employment, Skills and Enterprise Schemes) Regulations 2011 (“the ESE regulations”) when the 2013 Act came into force. It enables the Secretary of State for Work and Pensions to change this sanction decision and refund the amount withheld, without those affected individuals having to continue with their appeal.

In 2013, the courts ruled that the Jobseeker’s Allowance (Employment, Skills and Enterprise Schemes) Regulations 2011 that underpinned a range of programmes of support to help people into work did not describe the individual schemes in enough detail, and that our referral letters did not say enough about the activities required. The 2013 Act reinstated the original policy intent of these regulations. This ensured that jobseekers who had failed to take all reasonable steps to increase their chances of finding work between 2011 and 2013 did not unfairly obtain advantage over claimants who complied with the benefit conditionality requirements.

The Court of Appeal has since ruled that the 2013 Act is effective.

The 2013 Act did not prevent people from appealing if they felt they had a good reason for not participating in one of the employment schemes, but it meant their appeal would be unsuccessful if it related to their compliance with the 2011 regulations or the referral notification letters they received. The Court of Appeal has ruled that the Act has prevented claimants who had an appeal for failing to comply with the 2011 regulations still in the tribunal system on 26 March 2013 from having a fair hearing. For this small, specific group, the Court found that the Act is incompatible with article 6 of the European convention on human rights. The proposed draft remedial order addresses the Court of Appeal’s decision but does not affect the continuing validity of the 2013 Act.

I am using the non-urgent remedial order process to allow time for parliamentary scrutiny. The next 60 sitting days are a consultation period for Members of both Houses to send me any views. The order will also be scrutinised by the Joint Committee on Human Rights, and it will write a report. I will consider all representations I receive on the proposed draft order, and the Committee’s report. Once I have done so, I will revert to both Houses with a draft of the remedial order for consideration for a further 60 days.

[HCWS807]

Employment, Social Policy, Health and Consumer Affairs Council

Alok Sharma Excerpts

Monday 18th June 2018 Written Statements

[The Minister for Employment (Alok Sharma)]

The Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) will take place on 21 June 2018 in Luxembourg.

The Council will first be invited to agree a general approach on directives on work-life balance for parents and carers, and transparent and predictable working conditions. The presidency will also pursue a general approach on the revision of regulations governing the co-ordination of EU social security systems.

The Council will then receive progress reports on a proposal to create a European labour authority, and a directive related to equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation.

Under non-legislative items, there will first be a policy debate on the European semester. As part of this agenda item, the Council will be asked to approve draft Council recommendations on the national reform programmes 2018 of each member state; endorse the opinions of the Employment Committee (EMCO) and the Social Protection Committee (SPC) on the 2018 country-specific recommendations (CSRs) and the implementation of the 2017 CSRs; and adopt a proposal on guidelines for the employment policies of the member states.

Following this, the Council will be asked to adopt a number of draft Council conclusions on the future of work, early childhood development and free frameworks.

Under any other business, the Commission will provide information on plans for a new European social fund plus (ESF+) programme and an update on recent international developments in the field of social policy. To close the meeting the Austrian delegation will outline the work programme of the incoming presidency.

[HCWS771]

Employment Rates

Alok Sharma Excerpts

Wednesday 6th June 2018 Westminster Hall

[The Minister for Employment (Alok Sharma)]

It is an absolute pleasure to serve under your chairmanship, Sir Roger. I congratulate my hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) on securing, for the second time, this important debate on recent trends in employment. He made a fine speech, as did colleagues from all parts of the House. I have time in this debate to respond to a lot of the points that have been raised, and I will aim to do that. I will also come back to some of the points that my hon. Friend raised.

Sir Roger, I think you and I are probably the only Members here who were in the House in 2010, when the Conservative-led Government came into office. One of their first acts was to introduce an emergency Budget. At the time—both during the debate and subsequently—there were many siren voices on the Labour Benches that warned with great conviction that the Government’s policies would lead to a big increase in unemployment. Well, those doom-laden predictions have not come to pass; as Members on both sides have pointed out, we have seen strong jobs growth.

The hon. Member for Warwick and Leamington (Matt Western) is no longer in his place, but, frankly, to talk about this jobs miracle as a mirage is insulting. It is insulting to the more than 3 million people who now have a job as a result of the jobs created since 2010. It is also insulting to the employers—the hard-working companies and organisations that have created those jobs.

[Margaret Greenwood]

Will the Minister comment on the 900,000 people who are on zero-hours contracts and cannot manage their lives? They do not know how much money they are going to earn. They do not know how much childcare they need. It is a state of real insecurity, creating anxiety for a lot of people, and it is not good for the economy either.

[Alok Sharma]

I will of course come on to discuss precisely those points, because they are important.

The labour market statistics published last month by the independent Office for National Statistics—I point out once again to the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) that it is independent—show that employment in the United Kingdom reached a record high in the last quarter of 75.6%. That was the 17th new record employment rate since 2010. Employment is up by more than 3 million since 2010. I place on record my thanks, as my hon. Friend the Member for Mid Dorset and North Poole did, to all the businesses and organisations across our constituencies that have created those jobs. The unemployment rate has fallen to 4.2%, which is a 40-year low. As my hon. Friend pointed out, there are now more than 800,000 vacancies across our economy.

Those who cannot quite accept that positive trend will say that all those jobs are low paid and temporary, but that is absolutely not true. Some 70% of the increase in employment has been in higher skilled occupations that pay higher salaries. Three quarters of them are full time and permanent.

A point was made about where those jobs are created and whether they are all in London and the south-east. I can confirm that 60% of the growth in private sector employment since 2010 has been outside London and the south-east.

Various colleagues, including the hon. Member for Wirral West (Margaret Greenwood), made a point about zero-hours contracts. Such contracts represent less than 3% of all people in employment. The hon. Lady is right to say that that is around 900,000 people, but the number is down on the year. On average, someone on a zero-hours contract usually works 25.2 hours a week. Again, of those who stated a preference—to be clear, this is in the ONS’s own labour force survey—only 30% of those on a zero-hours contract stated that they wanted to work more hours. So when the hon. Member for Plymouth, Sutton and Devonport talks about only a small number of people valuing such flexibility, I have to say that that is not what we see from the independent figures—a point well made by my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant).

[Margaret Greenwood]

I thank the Minister for giving way again; he is being very generous. Is he aware of the issue of sexual harassment in the workplace among staff on zero-hours contracts? What advice would he give to a young woman on such a contract who is experiencing that? Where can she go for support? How can she tackle it, and how can she remain employed, but in a safe environment?

[Alok Sharma]

Frankly, any kind of bullying and any such acts are completely unacceptable, whether someone is on a zero-hours contract or a full-time contract. As the hon. Lady knows, there are avenues open to people, but if she has specific cases, she is welcome to come and talk to me about them. It is important that we have flexibility in work patterns, which is what zero-hours contracts allow, but it is also right that the Government have banned exclusive zero-hours contracts.

We have discussed employment outcomes by groups. If we look at some of the groups that have historically been under-represented in the employment market, we have seen a significant improvement in their participation in the workforce. The hon. Member for Edinburgh North and Leith (Deidre Brock) welcomed the record high of 71.2% in the female employment rate, which I of course welcome as well. There are now more than 3.8 million people from ethnic minorities in work—an increase of 1.1 million since 2010. The ethnic minority employment rate currently stands at 65.1 %, which is a record high. However, I completely accept that the employment gap between ethnic minorities and the white population is too high, at 12%, and we are working to address that. If I have time, I will talk about the response to the race disparity audit.

My hon. Friend the Member for Ayr, Carrick and Cumnock talked about disabled people. We have seen a welcome rise in the employment of disabled people—600,000 in the past four years—to around 3.5 million people today. He also talked about the Disability Confident scheme. More than 6,000 employers are involved in that and in Access to Work support. That is really important in encouraging everyone in our country who aspires to work to have an opportunity to do so.

My hon. Friend the Member for Mid Dorset and North Poole made a powerful opening speech and highlighted the excellent work of the all-party group on youth employment, which he chairs. He has shared with various ministerial colleagues reports from inquiries that the APPG has conducted. Of course, I would be delighted to come to the APPG to discuss its work and to meet the youth ambassadors, who I am sure will ask challenging questions. As my hon. Friend highlighted, we have made progress on youth employment. The employment rate for those not in full-time education stands at 74.9%, and youth unemployment is down by 40% since 2010.

My hon. Friend made international comparisons, some of which I will repeat. The UK youth employment rate is 18.3 percentage points above that of the euro area and more than 16% above the EU average, but of course I agree with him that we need to do more. We therefore have a skills agenda, with a focus on apprenticeships and technical education. Colleagues have talked about the youth obligation support programme, which started in April last year, and about the ability to get work experience. We have also been encouraging work-based academies, which I think have been very successful.

My hon. Friend talked about whether there should be better working across Government on these issues. Of course, many are joined up. I can confirm that we have a number of taskforce initiatives where Ministers work together. He will be pleased to know that straight after this debate I will be having a meeting with the Minister for Apprenticeships and Skills to discuss precisely these issues.

The Government are funding lifelong learning pilots, investing in a national retraining scheme, and delivering basic digital skills and careers advice for older workers who need them. We are also ensuring there is support to assist those with a health condition or disability, to make sure they are able to access the support they need to move into work.

On the cost of living, I know that all Members will welcome the fact that the ONS reported last month that salaries are starting to outpace inflation. I certainly want to see that very welcome trend continue. We absolutely recognise that people need additional support with living costs, and we have been providing that support. We have recognised that high childcare costs can affect parents’ decisions to take up paid work or increase their working hours. That is why, by 2019-20, we will be spending around £6 billion a year on childcare support. That includes 30 hours’ free childcare for working parents of three and four-year-olds. Within universal credit, claimants are eligible to claim up to 85% of their childcare costs. The outcome from independent evaluation in areas of early introduction shows that, with increased childcare support, parents are able to work more flexibly and increase their hours. We are championing shared parental leave and have introduced a right to request flexible working.

My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) welcomed the increase in personal allowances, which means that a typical basic rate taxpayer now pays more than £1,000 less in income tax than in 2010. We also introduced the national living wage in 2016, which increased by 4.4% this April. Thanks to the national living wage, full-time minimum wage workers have had a boost of £2,000 since 2016.

Numerous colleagues, including the hon. Members for Edinburgh North and Leith and for Plymouth, Sutton and Devonport and my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk, talked about job quality and the Matthew Taylor review. Although we need to continue to work to maintain high levels of employment, I absolutely agree that we must also address the important issue of job quality. Among its recommendations, last year’s Taylor review asked the Government to focus on the quality of work and to identify a set of measures to evaluate job quality.

A strand of the Government’s industrial strategy has a focus on the creation of good jobs and greater earnings power for all, so the Government have outlined five foundational aspects of good work: overall satisfaction; good pay, which includes perceptions of fairness relative to one’s peers; participation and progression in the workforce, which includes the ability to work flexibly and acquire new skills; wellbeing, safety and security at work; and voice and autonomy in the workplace. It is self-evident that if people feel a sense of control over how they carry out their job, they will generally feel much more positive about it. The Government are working with experts to identify a set of measures against which we can evaluate quality of work, and I certainly look forward to the outcome of that work.

I have time to go through a number of points that colleagues have raised. My hon. Friend the Member for Mid Dorset and North Poole talked about the hospitality industry, and we absolutely want to see a strong and vibrant hospitality sector. I recently met Brigid Simmonds, chief executive officer of the British Beer & Pub Association, to talk about the hospitality sector. In February this year, the Department for Work and Pensions ran the annual Hospitality Works campaign, which aims to raise awareness of the thousands of great career options that exist in the sector and to showcase some of the key employers we work with.

[Luke Pollard]

Yesterday, in Question Time, the hon. Member for St Austell and Newquay (Steve Double) raised the issue of introducing a seasonal hospitality workers scheme similar to the agricultural workers scheme. The one thing we know is that, after Brexit, there is a real risk that many roles in the hospitality sector could be eroded by the lack of available labour, which would impact on the domestic market, as well as on incoming tourists. Will the Minister briefly reflect on that?

[Alok Sharma]

I am, of course, happy to reflect on that. Perhaps it would be useful to have a discussion with the hon. Gentleman after the debate on any thoughts that he may have.

The hon. Gentleman mentioned the claimant count, which is down significantly in his constituency from 2010. However, the claimant count is no longer a consistent indicator. The ONS has acknowledged that and removed it from its monthly labour market statistics. As he will know, we have launched a consultation on a new measure, and I hope that he and all colleagues will take part in that. Previously, the claimant count looked at people purely on jobseeker’s allowance, whereas now, with universal credit, which is both an in-work and out-of-work benefit, those numbers are increasing. They do not necessarily have a bearing on what is going on in the labour market, but clearly we need a consistent set of figures. I hope that colleagues will respond to that consultation, which closes on 21 July.

The hon. Gentleman also raised the issue of in-work poverty for working-age adults. Whichever way one looks at it, poverty rates, whether relative or absolute, or before or after housing, are lower than in 2010. Adults in workless families are four times more likely to be in poverty than those in working families, which is why we are keen to see more people move into employment.

The hon. Gentleman also mentioned people with disabilities. I have talked about the Disability Confident scheme and the Access to Work scheme. The number of people with disabilities in work has increased significantly over the last four years. That is something that both he and I greatly welcome. He also made a point about having a basket of measures. The Government already use a range of measures to assess labour market performance. We look at not only employment rates, but pay and productivity, security of work, and employment by labour market group—we have already talked about women, people from ethnic minority backgrounds and older workers.

My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk raised the issue of productivity. That is an important point, in the sense that our productivity levels have lagged behind those of some of our peers for a long time. That is why we now have a national £31 billion productivity investment plan, focused on exactly the sort of issues that colleagues have been highlighting, such as housing, physical infrastructure, digital infrastructure and, of course, research and development.

The hon. Member for Edinburgh North and Leith mentioned the working relationship between Westminster and the Government in Scotland. Actually, I have had a very good set of conversations with the Minister for Employability and Training in Scotland. In fact, when we spoke about Fair Start Scotland in our last conversation, he highlighted that as an example of the UK Government and the Scottish Government working well together. Of course we want to work together, but it requires both parties to come to the table when there are decisions to be made.

The hon. Member for Wirral West talked about the gender pay gap and the race disparity audit. That audit was conducted under a Conservative Government, by a Conservative Prime Minister who cares deeply about the issue. It is the first time that such an audit has happened, and I know the hon. Lady will welcome it. In terms of the plans we have to assist people, we have identified 20 challenge areas where the employment gap between the white population and the black and minority ethnic population is quite large. We are looking at a number of pilot schemes to see what can eventually be rolled out across the country.

The hon. Lady talked about public sector pay. As she will know, the Government ended the 1% pay policy in September last year, and pay review bodies will now come forward with proposals for pay that will be considered by the relevant Ministers. We have already announced that many of the lowest paid NHS workers will see double digit pay rises over the next three years.

I think I have answered many of the points that were raised, so I will conclude by saying that the recent trends in employment are very positive. It is a welcome development that we are starting to see wages outpace inflation, and the Government are enacting measures to help people with the cost of living. We are ensuring that our population, both younger and older workers, are able to upskill for the jobs of the future.

Jobseeker's Allowance Trial

Alok Sharma Excerpts

Monday 21st May 2018 Written Statements

[The Minister for Employment (Alok Sharma)]

It has been a long-standing policy of successive Governments that claimants on work-related benefits are generally expected to undertake certain activities in return for financial support through the benefit system. This system of “conditionality” can lead to sanctions, which deduct benefit from claimants when they fail, without good reason, to meet a conditionality requirement, such as failing to attend a jobcentre interview or failing to search for work. This ensures a fair, proportionate and effective use of public money, in support of employment and wider outcomes for society.

Today, we are publishing the jobseeker’s allowance (JSA) sanctions early warning trial’s final evaluation report (“JSA Sanctions Early Warning Trial Evaluation - Final report”) and qualitative research (“Jobseekers Allowance: Sanctions Early Warning Trial”).

In October 2015, the Department for Work and Pensions announced that it would be trialling a new process for JSA sanctions in response to the Work and Pensions Select Committee’s recommendations to review the JSA sanction process.

The trial was delivered between April and September 2016 and involved 6,500 claimants. It tested an approach of adding an additional step into the sanction decision-making process, by informing claimants through a “sanction warning letter” that, on the basis of information available, the decision maker intended to apply a sanction. Claimants were then given a further 14 days (on top of the standard seven days they already receive before the decision is initially considered) to submit evidence of good reason for not meeting their conditionality.

The aim of the trial was to consider whether such an approach would have an effect on:

The volume of claimants that provide reasons for not meeting their conditionality requirements.

The volume of claimants sanctioned who request a mandatory reconsideration of the initial sanction decision.

The service received by the claimant and whether this represented value for money.

The effectiveness of the process as perceived by decision makers.

The key findings of the trial were:

13% of those receiving a “sanction warning letter” responded to it during the additional 14 days and provided evidence. In around half of these cases the evidence provided did not contain a good reason for the labour market decision maker to change their decision and the sanction was applied.

There were some indications that the trial had an impact on reducing the proportion of cases where a decision review or mandatory reconsideration was carried out. However, as these findings are based on low volumes, they are indicative only.

The qualitative evaluation concluded that given the additional burden placed on the departmental resources and marginal gains achieved, the trial did not appear to be an effective use of the Department’s resource.

Results from the qualitative evaluation showed that there was support from staff for the intentions underpinning the trial, however evidence from interviews with staff suggested that in practice the trial appeared to make little difference to the outcomes of claimants.

Given the low proportion of cases in which claimants provided further evidence and the even lower proportion of cases where decision outcomes were changed, we do not consider that the benefits of the approach are sufficient to justify the extra time and cost it adds to the process.

We are now exploring the feasibility of an alternative process to give claimants written warnings, instead of a sanction, for a first sanctionable failure to attend a work search review. The aim will be to conduct a small-scale proof of concept to obtain qualitative feedback from staff on this new process, followed by any subsequent tests. More details will be made available once we have progressed with the design work.

[HCWS697]

Oral Answers to Questions

Alok Sharma Excerpts

Monday 21st May 2018 Commons Chamber

[Liz Twist (Blaydon) (Lab)]

2. What estimate she has made of the number of families affected by the two-child limit for child tax credits and universal credit since April 2017.

[The Minister for Employment (Alok Sharma)]

The aim of the two-child limit is to strike the right balance between support for claimants and fairness to taxpayers who support themselves solely through work. The policy has been in effect only since April 2017 and statistics relating to its implementation will be published in due course.

[Liz Twist]

The High Court recently found that the ordering restriction on the two-child limit for children in kinship care was unlawful. When are the Government going to introduce regulations to make sure that the law is in line with the Court judgment?

[Alok Sharma]

We welcome the High Court ruling, which showed that the policy is lawful. However, the hon. Lady is absolutely right: in terms of kinship carers, we are going to be making those changes. This will have to come about through regulations in Parliament and we will bring those forward shortly. I would point out that, as the Secretary of State made clear in her written statement, we will be making changes to include not just those in kinship arrangements, but children who are adopted and would otherwise be in local authority care.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my hon. Friend agree that it is completely right that in our country someone should be able to have as many children as they want as long as they can support them, but it should not be that the taxpayer has to subsidise them?

[Alok Sharma]

As I said in response to the hon. Member for Blaydon (Liz Twist), the aim of this policy is to strike the right balance between support for claimants and fairness to taxpayers, but of course we do have exceptions in place, quite rightly.

[David Linden (Glasgow East) (SNP)]

When the Government came up with their two-child policy, did they seek any guidance or advice from China about its one-child policy?

[Alok Sharma]

I will just report that we have exceptions in place and of course this policy is ultimately about being fair both to claimants and to taxpayers.

[Douglas Ross (Moray) (Con)]

3. What recent assessment the Government have made of trends in youth employment.

--- Later in debate ---

[Helen Hayes (Dulwich and West Norwood) (Lab)]

4. What assessment her Department has made of recent trends in the average level of household debt of people receiving universal credit.

[The Minister for Employment (Alok Sharma)]

The Government have taken a number of steps to prevent problem debt, such as capping payday lending costs. We also have interest-free advances within universal credit, and a system of priority deductions to help claimants who are in arrears.

[Helen Hayes]

A recent Trussell Trust survey found that 70% of respondents were in debt as a result of the initial universal credit wait and more than half had experienced problems with their housing linked to debts and arrears. Advance payments simply stack up more debt, and food banks in areas where universal credit has been fully rolled out for more than a year have seen an average increase in need of 52%. The Secretary of State has it within her power to make further changes to universal credit to stop this avoidable hardship and distress now. Why will she not do so?

[Alok Sharma]

As the hon. Lady will know, a report that was published last year by the National Federation of ALMOs found that more than three quarters of tenants who started claiming universal credit were already in rent arrears. Other research shows that after four months on universal credit the number of claimants in arrears fell by a third. The key point is to make sure that we get help to individuals and that is precisely what the budget changes the Secretary of State has outlined do.

[Craig Tracey (North Warwickshire) (Con)]

Could the Minister confirm whether, under universal credit, claimants are more likely to be in work within six months than they were under jobseeker’s allowance?

[Alok Sharma]

Yes, I can absolutely confirm that under universal credit claimants can get into work faster and stay in work longer than under the legacy system.

[Stephen Lloyd (Eastbourne) (LD)]

5. What assessment she has made of the effect of the roll-out of universal credit on the number of evictions in the private rented sector.

--- Later in debate ---

[Stephen Kerr (Stirling) (Con)]

T4. Where are we on the transfer of welfare powers to the Scottish National party Government? Whose court is the ball in?

[The Minister for Employment (Alok Sharma)]

We always aim to work constructively with the Scottish Government. Fair Start Scotland is a recent scheme that we are supporting proactively. My hon. Friend makes a point about changes. Introducing changes such as automatic split payments is a complex policy area, and we are having a detailed dialogue with the Scottish Government. There are currently many issues for the Scottish Government to resolve.

[Mr Speaker]

Of course, balls in court are always preferable to balls out of court. I am sure that that is a point with which the hon. Member for Stirling (Stephen Kerr) will be well familiar.

--- Later in debate ---

[Henry Smith (Crawley) (Con)]

T6. Universal credit is scheduled to be introduced in Crawley on 6 June. What support will be offered to my constituents who will be affected?

[Alok Sharma]

Ahead of the roll-out, my hon. Friend’s local jobcentre will speak to local partners, such as the local authority and Citizens Advice, to ensure that claimants are supported as they come on to universal credit. My officials and I will host an induction session tomorrow for all colleagues who have UC rolling out in their area in the near future, so I hope that he will join us.

[Neil Gray (Airdrie and Shotts) (SNP)]

Being able to walk 20 metres is an essential part of the PIP assessment process, yet Ministers have told me in written answers that they do not have a policy for their assessment centres to have parking within 20 metres, nor do they know which centres have such a facility. Indeed, the centre that I visited recently had double yellow lines outside. Given that not everyone has access to a home assessment, what would the Minister say to somebody who turns up for an assessment and cannot walk to the door?

--- Later in debate ---

[Robert Halfon (Harlow) (Con)]

T9. With 1,000 more people in jobs in Harlow than in 2010, and with 5,000 more apprentices over the same time, will my hon. Friend congratulate Harlow College and Harlow’s jobcentre?

[Alok Sharma]

I of course congratulate Harlow College, but I also thank my right hon. Friend for the enormous amount of work that he does to promote employment both here and in his constituency.

[Jeff Smith (Manchester, Withington) (Lab)]

T3. Recently, two constituents with serious and deteriorating cerebral palsy both scored zero points on their PIP assessments. Both require round-the-clock care, but both were forced to appeal the decisions. Is it acceptable that people with serious and deteriorating disabilities are being forced to go through the courts to get the support that they deserve?

--- Later in debate ---

[Scott Mann (North Cornwall) (Con)]

A small number of my constituents do not have the digital skills or the equipment to be able to process their universal credit online. What is the Department doing to help them?

[Alok Sharma]

Ninety-nine per cent. of universal credit claims are made online, and those who need support to gain basic digital skills are offered digital support as part of our universal support offering.

[Paula Sherriff (Dewsbury) (Lab)]

T5. My 20-year-old constituent Lucy has severe autism and learning disabilities. She has been told that she must attend a medical assessment to transition from employment and support allowance to universal credit. Medical advice says such an assessment will cause unnecessary stress and anxiety, but that advice has been ignored by the DWP. Will the Minister commit to reducing this burden on the most vulnerable in society?

--- Later in debate ---

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Unemployment in my constituency now stands at 7.1%, which represents an increase of 1,200 on this time last year. What is the Department doing to support people into decent, well-paid and secure employment?

[Alok Sharma]

As the hon. Gentleman knows, we have record levels of employment across the country. There are more than 800,000 vacancies in the economy and help is available at jobcentres, with one-to-one personalised support.

[Michelle Donelan (Chippenham) (Con)]

Will the Minister consider changing how budgeting loans are administered, as they currently do not take into account personal debt and so, ironically, can make budgeting harder?

[Alok Sharma]

Budgeting loans are indeed available, but under universal credit we also have budgeting advances. If my hon. Friend has any specific cases she wishes to raise, I would be happy to talk to her about them.

[Jessica Morden (Newport East) (Lab)]

Constituents who cannot afford a driving licence or a passport cannot do an initial online verification of their universal credit claim, meaning that they have to wait up to two weeks in order to be seen for a personal appointment. That is driving people to see loan sharks in some cases, so will the Minister look at it?

[Alok Sharma]

I will look at it, but if the hon. Lady would come forward with specific cases, that would make it easier.

[Rachel Maclean (Redditch) (Con)]

Between 2010 and 2017, the basic state pension rate rose by £1,250. What will the Minister do to ensure that pensioners in my constituency continue to be protected and looked after by this Government?

DWP Offices Closures: Merthyr Tydfil

Alok Sharma Excerpts

Wednesday 9th May 2018 Westminster Hall

[The Minister for Employment (Alok Sharma)]

It is always a pleasure to serve under your chairmanship, Mr McCabe. I congratulate the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) on securing this important debate.

The level of employment in the United Kingdom is at a record high. In the hon. Gentleman’s constituency, the employment rate is 70.1%—an increase of 7 percentage points since 2010. That trend has been replicated across Wales as a whole, where the employment rate has increased by 5.8 percentage points since 2010, and now stands at 73%. I know that all hon. Members will welcome those jobs figures.

It may be helpful if I explain the background to the changes in the DWP estate, which have led to this issue. In March 2018, the 20-year contract covering the majority of the DWP’s current estate of more than 900 sites came to an end, which gave us a significant opportunity to re-evaluate what we need from our estate, taking into account the impact of universal credit, the increased use of online services and the improving employment rates. It is therefore right that we reconfigure our Jobcentre estate and make jobcentres fit for the 21st century. This is not about reducing services; it is about taking the opportunity to stop spending money on empty space, so we can spend more on supporting those in need.

In July 2017, we announced our plans for the majority of sites in the DWP estate. As part of that, we announced that five sites in south Wales, all with a focus on back-of-house activities, including Merthyr Tydfil, would be moving to a new single strategic processing site from 2021. As the hon. Gentleman outlined, the current office in Merthyr Tydfil is a mixed site, with a customer-facing jobcentre and a back-of-house processing function. I can confirm our intention is to keep the current site in Merthyr Tydfil for the next three years. Thereafter we will transfer the back-of-house staff to our new consolidated site for back-of-house operations, which, as the hon. Gentleman noted, we recently formally confirmed will be in Treforest.

[Anna McMorrin]

Will the Minister confirm what conversations he has had with the Welsh Government about the closure of those centres and the moving of the office to another site?

[Alok Sharma]

I will talk about the Welsh Government in a moment.

By choosing Treforest, we will be securing quality jobs for the next generation in an area that still lags in terms of employment rates. The hon. Lady talked about the Welsh Government, and the hon. Member for Merthyr Tydfil and Rhymney talked about following the Welsh Government. The Welsh Government recently set out their “Our Valleys, Our Future” strategy. Their ambition is to see more public sector jobs relocated to the south Wales valleys, and we believe our investment in Treforest demonstrates our commitment to that. The announcement of the move to Treforest was welcomed by Rhondda Cynon Taf County Borough Council.

[Gerald Jones]

Does the Minister recognise that the Welsh Assembly’s “Our Valleys, Our Future” strategy is about bringing new jobs to the south Wales valleys, not relocating jobs from existing communities, thus decimating the economies of those town centres?

[Alok Sharma]

Of course, the Welsh Government’s Welsh Revenue Authority has also chosen to base itself in Treforest. The DWP’s site is able to house 1,700 jobs, which is more than the number of people who are moving, so there is the potential to locate more new jobs at that site in the future. I know hon. Members are keen on that, and of course I support it.

[Anna McMorrin]

Will the Minister answer my initial question? What conversations has he had with Welsh Government Ministers about this move?

[Alok Sharma]

I have been in post for a number of months, and I personally have not had a direct conversation with my Welsh counterparts, but I am happy to write to the hon. Lady after this debate to set out the conversations that have been had with the Welsh Government. As I say, with this move we are supporting the strategy that the Welsh Government have set out for additional jobs in the valleys.

[Nick Smith (Blaenau Gwent) (Lab)]

Does the Minister accept that those jobs are being moved from the heads of the valleys area—the north—to the south towards Cardiff? It is the area around Merthyr, and further east towards Tredegar, Ebbw Vale and Brynmawr, where jobs are needed most.

[Alok Sharma]

When we make changes to the estate, of course we have to take into account the impact on jobs, but new jobs in other areas will be created as a result, and it must be balanced with the savings we will get as a result of the reconfiguration of the DWP estate. That money will be ploughed back into helping those most in need.

[Anna McMorrin]

Will the Minister give way?

[Alok Sharma]

Let me continue for a little while.

In arriving at Treforest as the new site, we conducted a comprehensive postcode mapping exercise of the home locations of all potentially affected DWP colleagues. I have a set of figures for how long it will take individuals located in the five sites to reach Treforest by public transport. The latest personal travel report published by the Welsh Government—I think it is from 2013—set out that eight out of 10 journeys to work are by car. The proportion has remained broadly unchanged for 10 years. The timings I have been given suggest that the journey times will be about 20 to 25 minutes in most cases—perhaps less.

[Anna McMorrin]

The Minister is being very generous in giving way. Has he actually been to the south Wales valleys?

[Alok Sharma]

Certainly not during my time as a Minister in this role.

There is a train station at the edge of the estate, where the new site will be. We understand that the Welsh Government have ambitious plans to enhance the transport links throughout south Wales, and that they will further improve access to Treforest, which is one of their key priority areas for the south Wales metro. We will work closely with colleagues in the Welsh Government and the local council on those transport solutions.

The hon. Member for Merthyr Tydfil and Rhymney said that there is insufficient parking space at Treforest. The DWP has made provision for substantial car parking on site to complement the park-and-ride development led by the Welsh Government.

Based on current estimates, moving our back-of-house functions to Treforest will impact about 239 DWP staff in Merthyr Tydfil. As part of the move, we want to maximise the retention of DWP colleagues, along with their valuable skills and experience. To do that, we will consult fully with colleagues and trade unions and have one-to-one conversations with staff to understand the personal impact of any changes on them.

[Wayne David]

Has the DWP made any objective assessment of the impact that moving people out of a number of communities will have on those communities?

[Alok Sharma]

The question was asked in terms of the staff who will be required to move, as I said, although we did do a postcode mapping exercise. The hon. Member for Merthyr Tydfil and Rhymney also asked about the impact on claimants, but a jobcentre will continue to be located in Merthyr Tydfil—I confirm that again.

We shall seek to redeploy any staff, wherever possible, who are unable to move to the new location. We are also prepared to pay colleagues’ excess travel costs for up to three years to assist their transition. When it comes to the front-of-house staff, as I said, I reassure Members that we are committed to retaining a jobcentre in Merthyr Tydfil, so the impact on claimants should be minimal, because there will still be a jobcentre there. We are looking for alternative premises, and we want to be in the new location by the end of March 2021.

[Gerald Jones]

The Minister mentioned the discussions with staff and the impact assessments for those staff. Will he give us more information as to when those impact assessments are likely to take place? As I said, it would have been advantageous to the Department for that to have been done before the final decision was made—a case of the proverbial stable door being bolted after the horse has gone. Will he give us some indication of when the assessments are likely to take place?

[Alok Sharma]

We are talking about a move three years from now so, clearly, informal conversations will start now—that would be natural—and staff will be evaluating where they want to be located. We expect the formal process, however, to start nine months before the actual move. The reason for that is simple: individual circumstances may change during the period leading up to a move, so we want to deal with people and their circumstances in real time.

The hon. Gentleman also raised the issue of equality impact assessments, and I confirm that we have been mindful of our equalities duties throughout the process. The hon. Member for Cardiff North (Anna McMorrin) asked me whether I had visited any of the sites. I said that I had not. I confirm that I have visited Newport jobcentre but not any of the back-office sites due to be relocated to Treforest.

The move from the existing site at Merthyr Tydfil will be a change for the Department and for our claimants and staff. By choosing Treforest, however, the DWP is making a long-term commitment to providing quality jobs in an area of need. In securing the site on a 25-year lease, we shall provide job security for our staff. We are also committed, as I said, to retaining a jobcentre in Merthyr Tydfil itself.

Question put and agreed to.

Employment, Social Policy, Health and Consumer Affairs Council

Alok Sharma Excerpts

Tuesday 24th April 2018 Written Statements

[The Minister for Employment (Alok Sharma)]

The Employment, Social Policy, Health and Consumer Affairs Council met on 17-18 April 2018 in Sofia, Bulgaria. DWP officials represented the United Kingdom at this informal Council.

The agenda consisted of presentations from experts and panel discussions among experts, member states, the presidency and the Commission.

The first day focused on how member states and social partners can deliver upon principle one of the European Pillar of Social Rights: education, training and life-long learning. Following an opening plenary, a number of speakers presented on themes including early childhood development, and the implementation of the Council recommendation on upskilling pathways. Panellists then reflected on how to best provide upskilling opportunities for adults.

The second day centred on delivering on principle four of the European Pillar of Social Rights: active support to employment. The Commission first took stock of progress against the Council recommendation on the integration of the long-term unemployed into the labour market and the youth guarantee. A presentation was then provided by Eurofound on the remaining challenges with regard to integrating young people and the long-term unemployed into the labour market. Panellists then discussed domestic measures being taken to address the challenges.

The informal Council concluded with remarks from the EU Commissioner for Employment, Social Affairs, Skills, and Labour Mobility, and Dr Biser Petkov, Minister of Labour and Social Policy of the Republic of Bulgaria.

[HCWS638]

Universal Credit

Alok Sharma Excerpts

Thursday 22nd March 2018 Written Statements

[The Minister for Employment (Alok Sharma)]

The implementation of universal credit continues to make good progress. The full service is now operating in 250 jobcentres and we expect to complete national coverage and be in all jobcentres as planned by December 2018. Within this timetable, I am announcing today some modifications to reflect local considerations and discussions.

We continue to make progress in delivering a Welsh language capability within the full service. While it has always been possible to speak to DWP in Welsh, either in jobcentres or on the telephone, and to have dialogue in Welsh on online journals, we want to be able to offer full Welsh functionality as soon as we can for those areas of Wales with the highest density of Welsh speakers. In order to increase the chances that functionality will be in place in time with local roll-out, we are moving the 13 jobcentres with the highest density of Welsh speakers to December 2018.

In addition, Barrow Council has asked if its roll-out date could be changed to December to reflect the fact that it is bringing its housing benefit administration back in-house and it would like to sequence that change before universal credit rolls out. This is sensible planning and we have agreed to meet that request.

Finally, in order to balance resources more effectively within DWP we are making several other modifications to the roll-out timetable, as set out in the table available as an online attachment. We will modify the master schedule on gov.uk to reflect these changes. District managers are contacting local stakeholders about these changes and writing to their local MPs with details.

Attachments can be viewed online at: http://www.parliament. uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-03-22/HCWS577/.

[HCWS577]