Supporting Disadvantaged Families

Damian Hinds Excerpts

Monday 9th November 2020 Commons Chamber

[Dr Coffey]

I am conscious that we did boost the local housing allowance to the 30th percentile, which cost more than £1 billion, and I am sure that that may have helped some of the hon. Gentleman’s constituents. One thing we must recognise—we are working across Government on this—is what we can do to try to help reduce the cost of living. An interesting paper by the University of Bristol talks about the poverty premium, half of which is energy related—about £250 out of the £490 it identified. That is why I am working with people such as the Under-Secretary of State for Education, my hon. Friend the Member for Chelmsford (Vicky Ford), the Minister for Business, Energy and Clean Growth, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng) and a wide range of people in this Government to tackle issues that face not only the poorest in society, but other households as well. We will continue to do that and I look forward to ongoing activity in and out of Government in order to ensure that we reach as many people as possible and make their lives better.

[Damian Hinds (East Hampshire) (Con)]

I particularly welcome this very large extension of the holiday activities programme. Will my right hon. Friend assure me that, in rolling it out, the Government will learn from some of the best deployments such as Connect4Summer in Hampshire, with a focus not only on a nutritious meal, on the daily mile, and on purposeful activity to address the holiday learning loss to which she has just alluded, but on things such as cooking from scratch workshops, first aid, and whole family sessions?

Universal Credit: Delayed Roll-Out

Damian Hinds Excerpts

Tuesday 4th February 2020 Commons Chamber

[Will Quince]

I have not yet seen the BBC documentary, and I suspect that the hon. Gentleman has not done so either, because it is due to be aired shortly. However, it is important to stress that officials discussed advice to be sent to Ministers late in 2019, and the final discussions were held with Ministers in 2020. Parliament was then informed. This relates to the back end of the timetable, which concerns people moving to universal credit in 2024-25, so the change was communicated in good time.

The hon. Gentleman referred to cost, and it is important to put that in context. This is additional money that will go into the pockets of our claimants, some of the most vulnerable and disadvantaged in our country. About 900,000 people could now receive transitional protection who would not have been able to receive it through natural migration.

[Damian Hinds (East Hampshire) (Con)]

I welcome my hon. Friend’s clarification of the need for this reforecasting. May I invite him to restate the Government’s total commitment to a universal credit arrangement that simplifies the system? It means dealing with one Department rather than three, it combines six benefits into one, it helps people to get into work more quickly, and it smooths their transition into work thereafter.

[Will Quince]

I thank my right hon. Friend for his question, and for all the work that he did in our Department. He is absolutely right: universal credit is a modern, flexible, personalised benefit that reflects the rapidly changing world of work. Conservative Members believe that work should always pay, and that we need a welfare system that helps people into work, supports those who need help, and is fair to everyone who pays for it.

Oral Answers to Questions

Damian Hinds Excerpts

Monday 27th January 2020 Commons Chamber

[Justin Tomlinson]

The reality is that under PIP 32% of claimants now receive the highest rate of support compared with just 15% under the legacy system—that is worth £15.05 per week—and there are now 257,228 more people benefiting from PIP than did so under the legacy system.

[Damian Hinds (East Hampshire) (Con)]

UC smooths the transition into work and it smooths progression in work. Since it became the default benefit for newly unemployed people, we have had month after month after month of positive employment news. Is it not bizarre that Opposition Members want to scrap that system and return to the Labour system that saw millions of people either trapped in the 16-hour economy or shut out of work altogether?

[Mr Speaker]

Obviously this is all tied in with Hartlepool.

Universal Credit

Damian Hinds Excerpts

Tuesday 13th March 2018 Commons Chamber

[The Secretary of State for Education (Damian Hinds)]

There are sometimes days when Ministers have to come to this House to defend difficult decisions that have had to be made, but this is not one of those days. Today, we are talking about increasing spending and widening eligibility. I would never dream of accusing any Member on either side of seeking to mislead the House, but I will make a more general point: the mere repetition of a falsehood does not turn it into the truth.

We have had fully 24 Back-Bench speeches in this debate, and I will seek to respond to as many as I can in the short time available. There are five main elements to our support in early years and childcare, and each one is a bigger offer than under Labour. First, there are 15 hours a week of free early education for disadvantaged two-year-olds. There was no such entitlement under Labour. Today’s regulations amend the eligibility criteria, introducing an equivalent earnings threshold of £15,400, which typically equates to somewhere between £24,000 and £32,000 in total household income. By 2023, we estimate that around 7,000 more children will benefit from the entitlement compared with the previous system.

Secondly, there is the universal 15 hours a week free childcare for three and four-year-olds—more hours than under Labour and now with the early years pupil premium, which was also not available under Labour. Thirdly, there are an additional 15 hours for working parents, and guess what? No such offer existed before 2010. Fourthly, up to 85% of childcare costs can be reimbursed through universal credit, which is a higher percentage than was ever available under tax credits. Finally, tax-free childcare will provide support for nearly 1 million more families than the existing vouchers scheme.

[Emma Little Pengelly (Belfast South) (DUP)]

Given the concerns raised across the House about the April closure of the childcare vouchers scheme, does the Secretary of State agree that the closure should be delayed to allow for those concerns to be addressed?

[Damian Hinds]

I have heard the concerns about the timing, and I can confirm that, following the hon. Lady’s representations, we will be able to keep the voucher scheme open to new entrants for a further six months.

Tax-free childcare will mean that more people become eligible, regardless of their employer and including the self-employed for the first time. The hon. Member for Ashton-under-Lyne (Angela Rayner) raised concerns about families having to pay childcare costs up front, but I reassure her that the flexible support fund is available to help in such cases.

[Lucy Powell]

Will the Secretary of State give way on that point?

[Damian Hinds]

I am short of time, so if the hon. Lady will forgive me, I will come back to her if there is time.

Turning to free school meals, we have extended the availability of free meals since 2010, going much further than Labour. The Conservative-led coalition extended free meals to disadvantaged students in further education institutions and introduced universal infant free school meals. We are investing £26 million in a breakfast club programme over the next three years, using the soft drinks industry levy.

When universal credit was introduced, we made clear our intention to set new criteria for free school meals, as my hon. Friend the Member for Fylde (Mark Menzies) rightly pointed out. We stated that intention in our response to the Social Security Advisory Committee report on passported benefits in March 2012. We repeated it in April 2013, when we introduced a temporary measure enabling all universal credit families to receive free school meals during the early phase of universal credit, and we have repeated it again several times since, as my hon. Friend the Member for Croydon South (Chris Philp) mentioned. We are now, as we always planned, introducing new eligibility criteria to ensure that those entitlements continue to benefit those who need them the most.

Under our new regulations, we estimate that by 2022 around 50,000 more children will benefit from a free school meal compared with the previous system. The hon. Member for Washington and Sunderland West (Mrs Hodgson), who is shaking her head, asked about the methodology, as did the hon. Member for High Peak (Ruth George) and, I believe, the hon. Member for North West Durham (Laura Pidcock). We responded to the Social Security Advisory Committee on that exact point, and it put the information into the public domain.

[Lucy Powell]

Will the Secretary of State give way?

[Damian Hinds]

I cannot. No child who is receiving free meals now or who gained them during the roll-out of universal credit will lose their entitlement during the roll-out, even if family earnings rise above the threshold, as my hon. Friends the Members for Nuneaton (Mr Jones) and for Harborough (Neil O’Brien) mentioned. Once roll-out is complete, those children will be protected until the end of their phase of education—primary or secondary—as my hon. Friend the Member for Charnwood (Edward Argar) reminded us.

The protection arrangements will enable hundreds of thousands of children to continue to receive a meal during the roll-out, even if family earnings exceed the threshold. The £7,400 threshold relates to earned income, and it does not include additional incomings through universal credit. Depending on their exact circumstances, a typical family earning around our threshold would have a total annual household income of between £18,000 and £24,000.

The hon. Member for Manchester Central (Lucy Powell) said that the threshold was arbitrary. It is not arbitrary; the thresholds for these passported benefits are set at such a level as to hold the eligibility cohort steady, except that in the case of free school meals we took the decision to make it somewhat more generous than the previous system. The threshold is comparable, by the way, to that in the approach in Scotland, where there is a net earnings threshold equivalent of £7,320.

It is simply not true to say that we are introducing a cliff edge; there has always been one. The simple fact is that a child either gets a lunch or does not. A plate of food does not lend itself well to being tapered, as my hon. Friend the Member for South Cambridgeshire (Heidi Allen) has said. Some have suggested that we could convert the benefit into cash—that is true, of course—so that we could have a taper, but the whole point of free school meals is to guarantee that an individual child will receive a nutritious and healthy lunch.

Extending eligibility to all children in households on universal credit would result in around half of pupils becoming eligible. We estimate that that would cost in excess of £3 billion a year more by 2022. The additional meal costs alone, excepting the deprivation funding, would be in excess of £450 million a year—quite close to the figure mentioned by the hon. Member for Washington and Sunderland West. I reiterate that eligibility is going up, not down, as my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) said.

I am running short of time, so I will turn to the regulations on universal credit. My right hon. Friend the Secretary of State for Work and Pensions earlier outlined the changes in these regulations for UC. They include the removal of waiting days, which will put an average of £160 extra in people’s pockets and get them into the monthly routine sooner, and an additional two weeks of housing benefit to smooth the transition to universal credit. That one-off, additional, non-recoverable payment is worth an average of £233 to 2.3 million claimants over the roll-out period. Those measures form part of the £1.5 billion package of reforms that the Chancellor announced at the Budget. My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) said that he was surprised to hear that Labour Members would be voting against those measures. I suggest that their constituents will be even more surprised.

[Paul Masterton]

Wil my right hon. Friend give way?

[Damian Hinds]

I hope my hon. Friend will forgive me if I do not; we are very short of time. As my hon. Friend the Member for Lewes (Maria Caulfield) reminded us in her unique style, the Government are committed to tackling injustices, removing barriers and widening opportunity. Because of the strong economic management that my right hon. Friend the Chancellor recapped for us earlier, we are able to continue our bold and ambitious programme of social reform extremely quickly.

[Emma Little Pengelly]

Can the Secretary of State confirm clearly for the House—this is very important—that the six-month delay in the closure of the childcare voucher scheme will be used to address concerns and issues that have been raised in the House today?

[Damian Hinds]

I already confirmed that we would have this period to reflect concerns and to allow the bed-in.

Our approach is working, including through advances in education, ensuring everyone can get the best start, unprecedented investment in childcare to support career choices and household budgets and universal credit, helping people into work, faster. In this generation, we have employment at record levels, household incomes at record levels and income inequality down. For the next generation, we have major improvements in the early years foundation stages, 1.9 million more children in good or outstanding schools and a 10% narrowing in attainment between the rich and poor. Today’s legislation continues this important work. I am proud of the enhanced support we are offering families through these programmes, and I commend the regulations to the House.

Question put.

Employment, Social Policy, Health and Consumers Affairs Council

Damian Hinds Excerpts

Monday 18th December 2017 Written Statements

[The Minister for Employment (Damian Hinds)]

The Employment, Social Policy, Health and Consumer Affairs Council met on 7 December 2017 in Brussels. As Minister of State for Employment, I represented the UK.

The Council agreed a partial general approach on the long-term care and family benefits chapters of the revision of regulations on co-ordination of social security systems—(883/04 and 987/09). The UK explained its abstention due to a parliamentary scrutiny reservation.

The Council agreed a general approach on the European Accessibility Act. The UK supported the aims of the proposal but registered an abstention, reflecting concerns about the clarity of text.

The Council received a progress report on the draft directive on equal treatment (Art. 19) and the draft directive on work-life balance.

The Council gave political agreement to the directive implementing a social partner agreement on the implementation of amendments to the Maritime Labour Convention.

As part of the semester process the European Commission presented the annual growth survey 2018, the draft joint employment report, the alert mechanism report and the draft recommendation on the economic policy of the euro area. They also sought the views and gained the approval of member states on the employment and social aspects of the recommendation on the euro area.

The Council adopted Council conclusions on the following three topics: the future of work: making it e-easy; enhancing community-based support and care for independent living; and on enhanced measures to reduce horizontal gender segregation in education and employment.

Under any other business, the Commission presented information on the EU action plan 2017-2019 on tackling the gender pay gap and on concluding the year of focused actions to eliminate gender-based violence. The Swedish delegation and the Commission presented information on the Social summit (Gothenburg, 17 November 2017) and the Bulgarian delegation presented the work programme of its incoming presidency.

[HCWS357]

Oral Answers to Questions

Damian Hinds Excerpts

Monday 18th December 2017 Commons Chamber

[Ms Nusrat Ghani (Wealden) (Con)]

7. What recent assessment he has made of trends in youth unemployment.

[The Minister for Employment (Damian Hinds)]

Unemployment among 16 to 24-year-olds is 523,000—down 60,000 on the year and down 416,000 since 2010.

[Ms Ghani]

I welcome that news from the Minister. I am a strong campaigner for apprenticeships, including in my constituency, where we have just 70 young unemployed people. Does the Minister agree that making apprenticeships far more available helps young people into jobs, not only in Wealden but throughout the country?

[Damian Hinds]

My hon. Friend has indeed been a great campaigner and a great champion for apprenticeships. Apprenticeships—including the 620 starts in Wealden in 2016-17—are one of the key policies that have contributed to our successful labour market, in which employment now stands at 75%.

[Nic Dakin (Scunthorpe) (Lab)]

What is the trend in unemployment for young people with learning difficulties?

[Damian Hinds]

We absolutely accept that of course young people with learning difficulties need additional assistance and additional understanding of conditions and so on, which is why we have very much focused on providing that in jobcentres to make sure that they get the support they deserve.

[Sir Desmond Swayne (New Forest West) (Con)]

8. Whether his Department has set a target for the time taken for a personal independence payment claim to be processed from application to decision.

--- Later in debate ---

[Stephen Pound (Ealing North) (Lab)]

9. What estimate his Department has made of the number of sanctions that will be applied each month as universal credit is rolled out.

[The Minister for Employment (Damian Hinds)]

The Department does not forecast numbers of sanctions that will be applied. We do not want sanctions to be incurred, but they do play an important part in reasonable conditionality.

[Mr Speaker]

I think the hon. Gentleman is going to the west end to perform on the stage. He would feel so fulfilled. In fact, I think that he has already done so—perhaps just now.

[Damian Hinds]

I gently remind the hon. Gentleman that when I say that sanctions are considered to be a part of reasonable conditionality, it was also the approach that was taken up fully by the previous Labour Government. With regard to universal credit over Christmas, we have in place—as we do every year—robust processes to make sure that claims get paid. We can bring claims forward to make sure that things go smoothly, as we always seek to do before Christmas.

[Mr Speaker]

There is a matter of some dispute here between the Chair and the Table. I think that the hon. Gentleman is a representative of a petrocurrency, but Mycroft in front of me is not wholly convinced, so the matter remains as yet undetermined.

[Grahame Morris (Easington) (Lab)]

Thank you, Mr Speaker. I refer the Minister to the question I raised with the Leader of the House on Thursday. Will the Minister provide an assurance that when the Department makes mistakes in the administration of universal credit, claimants will be fully compensated in claims backdated to the point where they will be no worse off?

[Damian Hinds]

I welcome the hon. Gentleman’s question. I have written to him today on this specific case. I do not know whether the response has yet come to hand following his question on Thursday, but I am happy to meet him and discuss it in detail. I understand that there was an issue about some of the information at the time the claim was made, and that there has been some backdating. We will talk about the matter later.

[Robert Jenrick (Newark) (Con)]

10. What discussions he has had with Cabinet colleagues on the number of jobs created since 2010.

--- Later in debate ---

[Kevin Foster (Torbay) (Con)]

14. What assessment he has made of the level of preparedness in Torbay for the roll-out of universal credit.

[The Minister for Employment (Damian Hinds)]

We carry out a range of implementation activities well in advance of activation to ensure that sites are well prepared, and we have successfully rolled out to 235 jobcentres to date.

[Kevin Foster]

I thank the Minister for his answer. Roll-out of full service universal credit in Torbay is due to happen in September 2018. It is vital that claimants fully understand the system and their options. Will the Minister therefore confirm what work his Department is doing with Torbay’s local advice services to ensure that claimants can easily get such support if needed?

[Damian Hinds]

Yes, we are ensuring that stakeholders, including the key advice services, have a proper overview of universal credit, and we work closely with the citizens advice bureau and others. A dedicated employer and partnership team engages directly with local authorities, landlords and others to ensure there is a joined-up approach to supporting claimants.

[Stephen Timms (East Ham) (Lab)]

rose—

[Stephen Timms]

Thank you, Mr Speaker. There will be problems in Torbay and elsewhere if the universal credit calculation is wrong. The Minister told me in a written answer that there is no specific initiative called Late, Missing and Incorrect, but it turns out that there is, run jointly by his Department and Her Majesty’s Revenue and Customs. Will he confirm that if real-time PAYE—pay-as-you-earn—information is late, missing or incorrect, then the universal credit calculation will be wrong?

[Damian Hinds]

We all admire the right hon. Gentleman for his deftness in getting from Torbay to that point. He and I have had quite an extended correspondence in parliamentary questions on the subject of real-time information in its various aspects. Of course we want to continue to make sure that every aspect of universal credit is working entirely as it should, and he has my commitment that we will do so.

[Mr Speaker]

The right hon. Gentleman will experience a long journey from East Ham to Torbay. We empathise with him on his long journey.

--- Later in debate ---

[Henry Smith (Crawley) (Con)]

T4. What steps has the Department to taken to help older people who are looking, perhaps after redundancy or caring responsibilities, to get back into work?

[The Minister for Employment (Damian Hinds)]

My hon. Friend raises an important point. There are more working people in older age groups now than there ever have been, but much more needs to be done, which is why we published our “Fuller Working Lives” strategy. Of course, many employers are waking up to the possibilities in jobcentres, and we are also making sure that we have more older worker champions to represent that group fully.

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

Reports suggest that the Foreign Secretary, the Environment Secretary and others used this morning’s Cabinet meeting to start the campaign to scrap the working time directive after Brexit. That directive protects us when it comes to hours worked and paid holidays, as well as giving extra protection to night shift workers. Can the Secretary of State confirm what representations he has made at Cabinet to ensure that his Brexiteer colleagues are not successful at ripping up our workers’ rights?

--- Later in debate ---

[Alex Burghart (Brentwood and Ongar) (Con)]

On Friday, I visited my local jobcentre and saw the genuine enthusiasm that work coaches have for the new universal credit system. Will my hon. Friend confirm that additional help is available for users who are not too tech savvy?

[Damian Hinds]

Yes, indeed. My hon. Friend is quite right about the enthusiasm of jobcentre staff for universal credit, because it enables them to do more of what they want to do, which is to help people to get on and get into work. I can confirm to him that, yes, computers are available in jobcentres, and assistance is available when needed.

[Carolyn Harris (Swansea East) (Lab)]

With the uncertainty of universal credit payments following the roll-out in Swansea last week, my local paper, the South Wales Evening Post, has co-ordinated the collection of food and warm clothes to help those in need. Will the Secretary of State join me in congratulating the South Wales Evening Post on doing what the Government are failing to do, and making sure everyone has a good Christmas?

--- Later in debate ---

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

For jobseekers in my constituency of West Aberdeenshire and Kincardine, it is overwhelmingly the “can do” attitude of professionals and the dedication of the work coaches, whom they value, that will help them to find work. Especially at this time of year, we as a House should definitely pay tribute to them. May I ask my hon. Friend how the new work coaches will boost the chances of jobseekers in West Aberdeenshire and Kincardine, as well as those elsewhere, to find work?

[Damian Hinds]

I can confirm that we have been recruiting work coaches in every nation and region of the UK. We are seeking to do more to provide support with universal credit, and to ensure that what in-work support is needed is available.

[Patrick Grady (Glasgow North) (SNP)]

Two constituents came to my surgery on Friday, concerned that the switch of support for mortgage interest payments will force them into the private rented sector and on to housing benefit, and will therefore cost the taxpayer more money. Will the Government review that policy? Is it not more evidence of Tory austerity hitting the poorest the hardest?

Youth Employment

Damian Hinds Excerpts

Wednesday 6th December 2017 Westminster Hall

[The Minister for Employment (Damian Hinds)]

What a great pleasure it is to see you once again in the Chair in Westminster Hall, Mrs Moon. I congratulate my constituency neighbour, my hon. Friend the Member for Chichester (Gillian Keegan), on bringing this important debate to Westminster Hall. I know how important youth employment is to her, and it is important for us to have opportunities to debate it. We are all grateful to her. That is reflected in the attendance—we have had eight full speeches and this is the ninth. Seventeen Members have taken part in the debate, reflecting its importance. I also welcome the opportunity to set out the targeted support and reforms to vocational education we are implementing to give every young person the best start—an ambition we will achieve only with the help of employers large and small. We need businesses to be prepared to take a chance and offer more young people, whatever their background, valuable work experience and vocational training.

We have already made significant progress on youth unemployment. As my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) reminded us, youth unemployment is down by 422,000 since 2010. Youth unemployment is now at a record low: just 4.8% of under-25s are both unemployed and not in full-time education, and the UK now has the second-highest youth employment rate in the G7.

My hon. Friend the Member for Chichester reminded us of the reality of youth unemployment in some other countries, using her experience from Spain as an example. Around one in 10 16 to 24-year-olds are not in employment, education or training. While some of those have actively made a decision to take some time out before starting a career, others struggle to overcome complex barriers and multiple setbacks or have had their expectations and ambitions damaged, in turn damaging their confidence. The Government are committed to encouraging young people to be in education, training or employment and giving them the chance to progress and achieve. That is critical if we are to improve productivity, promote intergenerational fairness and tackle poverty and disadvantage.

The right support in school is critical, and if young people are to make the best choices at school, good advice is essential. It is important to widen children’s expectations, and broaden their understanding of the range of jobs and career opportunities available. My hon. Friend the Member for Ochil and South Perthshire (Luke Graham) spoke about the importance of social capital, and if there is an absence of that, the role of the school becomes even more important when trying to fill that gap. My right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) spoke about the importance of getting companies and industry into schools to present their opportunities directly, and I could not agree with him more. Some industry programmes, such as Feeding Britain’s Future, seek to widen people’s understanding of the range of careers in those industries, and STEM ambassadors talk about where people can get to if they knuckle down and do their maths and physics, including things like engineering, an apprenticeship or a degree.

To help young people make decisions about their future, we have introduced Jobcentre Plus support for schools. Working in partnership with the Careers & Enterprise Company and professional careers advisers, Jobcentre Plus advisers in schools help young people in a variety of ways. They set up work experience opportunities, offer advice on the local labour market, CV writing and interview techniques, and promote vocational routes into employment. We are also reforming the post-16 skills system and introducing T-levels. Employers want young people to have better vocational skills, and we want everyone to recognise that a technical education is as valuable as the traditional academic route for a successful career. We must keep pace if we are to drive the benefits to the UK economy: an estimated 1.2 million new technical and digitally skilled people are needed by 2022 if we are to compete globally. The Government are embarking on a major reform of the post-16 skills system in England, focusing particularly on technical education and lifelong learning.

My hon. Friend the Member for Chichester spoke of the high reputation of Chichester College, of which I am aware. She also spoke about her own experience, and what a great illustration her story is of where an apprenticeship can take someone. We have invested more in apprenticeships than any previous Government, and by 2020 we will have increased annual apprenticeship funding in England to £2.45 billion—double what it was in 2010. There have been 3.5 million apprenticeship starts of all ages since May 2010, and 1.1 million apprenticeship starts in England since May 2015.

My hon. Friend the Member for Henley (John Howell) spoke about the importance of quality apprenticeships. He is absolutely right, and the Institute for Apprenticeships is important in that regard. We are also improving access to apprenticeships for those who are disadvantaged or who have a learning difficulty, health condition or disability.

[Stephen Kerr]

FES in Stirling has set up its own training academy and is working in partnership with Forth Valley College. What more can the Government do to encourage more businesses to take that progressive attitude to investing in their talent?

[Damian Hinds]

That is something we are constantly engaged with, and Members of Parliament can play an important role. More and more companies are doing such things. With employment at its current level, and unemployment at its lowest level since 1975—some people in this room were not born the last time unemployment was lower than it is now—it is a competitive market for talent, and more and more companies are seeing that part of having the competitive edge is exactly about investing further and doing bold things with recruitment and development.

As my hon. Friend the Member for Ochil and South Perthshire reminded us, too many young people leave school without a place in further education or training, or an apprenticeship or job go to. To tackle that head on, in April we introduced a new programme of intensive support for unemployed 18 to 21-year-olds who were making a claim to universal credit full service. The programme starts with a 71-hour curriculum of workshops and exercises that encourages them to think more broadly about their skills and job goals. It helps them to identify any training they need, and supports them to improve their job search, job application and interview skills.

Young people also receive intensive work-focused coaching, and referral to additional support drawn from a wide variety of locally available provision. That provision is tailored to address specific needs and can include mental health support, employability skills, basic skills training in maths, English and IT, work-related skills training, mentoring, and a short work experience opportunity. We anticipate that many young people who receive that valuable intensive support will move quickly into further education, vocational training, an apprenticeship, or a job. Those who are still unemployed after five months on that programme will have an extended stock-take assessment to review their learning and progress, and identify additional barriers to work that need to be addressed quickly. At six months, if the individuals remain unemployed, they will be offered a sector-based work academy placement, which is a short period of vocational training, and work experience in a sector with a high number of vacancies, or encouraged to take up a traineeship. Every 18 to 21-year-old on the programme who does not take up work-related training will be offered a three-month work experience placement to help them achieve their job goals.

Universal credit also offers, for the first time, in-work support for young people on a low income to help them progress in work. Young people are better off in work under universal credit. Most young people were not entitled to claim working tax credit until they were 25, but under universal credit they continue to receive benefits while in work and on a low income.

The rate of the national minimum wage for young people is a balance. It is, of course, important to ensure that people are properly remunerated, but we must also protect their employment prospects. The rate for people aged 18 to 24 has risen by between 7% and 8% since 2015, and from April 2018 the apprenticeship rate will be at a record high in real terms. Overall, the national living wage—such a key reform—has meant that the lowest-earning 5% of the population have recently had the biggest rise in their annual incomes since records began.

The hon. Member for Wirral West (Margaret Greenwood) asked about our use of texts and other forms of communication. Yes, we absolutely use those things in jobcentres these days. It is an important part of our communication.

As our industrial strategy set out, we need to boost productivity and earning power across the country, improve the quality of work and ensure that everyone has the right skills to progress. As I hope my hon. Friend the Member for Chichester will agree, when businesses give a young person a chance of employment or the valuable opportunity of work experience, it is not only the job-specific skills that they gain that make a difference. Through work experience, young people broaden their horizons, learn how to work with others and gain confidence. That in itself can be instrumental in changing their job opportunities and life chances.

Employers say that one key reason why they do not employ young people is a lack of work experience, so getting that experience is important. If any Member has difficulty with putting local employers in touch with jobcentres and creating those work experience placements, they should get in touch with me and I will help to facilitate that. This is such an important subject, and I thank my hon. Friend for securing this debate. This is a partnership approach between the Government, MPs and educational employers.

Universal Credit Project Assessment Reviews

Damian Hinds Excerpts

Tuesday 5th December 2017 Commons Chamber

[The Minister for Employment (Damian Hinds)]

Universal credit is being introduced at a time when record numbers of people are in work and unemployment is at its lowest for 40 years. It is a vital reform, replacing the outdated and complex benefits system of the past, which too often stifled people’s potential, as my hon. Friends the Members for Rochester and Strood (Kelly Tolhurst) and for Middlesbrough South and East Cleveland (Mr Clarke) outlined. Six benefits are replaced with one simple monthly universal credit payment, designed to support people whether they are in or out of work.

Under UC, claimants are better off when they move into work and they are better off when they progress in work. People’s UC is gradually reduced as earnings increase, so claimants will not lose all their benefits at once if they are on a low income. My hon. Friend the Member for Moray (Douglas Ross) reminded us of features of the previous system that called out for reform. With UC, there is no 16-hour ceiling, no 16-hour floor, no such thing as “permitted work”—or, rather, non-permitted work—and there is no upheaval and risk in terms of people’s benefit as they move into a job, as my hon. Friend the Member for Wealden (Ms Ghani) mentioned. This means that the more people work, the more money they get in their pocket. So UC supports those who can work and cares for those who cannot, while being fair to the taxpayer as the Government continue to spend around £90 billion a year supporting people of working age.

My hon. Friends the Members for Stirling (Stephen Kerr) and for Aldridge-Brownhills (Wendy Morton), the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), who spoke about Wick, and others spoke of the dedication of Jobcentre Plus staff and of staff at housing associations and elsewhere, and the great deal of preparation going into readying for universal credit, and I echo those words of appreciation. I also say to any Members who have not recently visited their local jobcentre: please do so.

My hon. Friend the Member for North East Derbyshire (Lee Rowley) spoke of the phased roll-out approach and how that allows the Government to learn from frontline feedback and evolve the system, making the changes to improve as we go along, and making sure that people who need help can get it.

The Budget package that the Chancellor set out will put more money into claimants’ hands earlier, ensuring extra support for those who most need it. This is a £1.5 billion package and it addresses concerns that have been expressed about the delivery of the benefit, as my hon. Friend the Member for South Cambridgeshire (Heidi Allen) rightly said.

This month, new guidance will be issued to staff to ensure that claimants in the private rented sector who have their housing benefit paid directly to landlords are also offered that option when they join universal credit. From January, we will make two changes to advances, and my hon. Friend the Member for Ochil and South Perthshire (Luke Graham) reminded us of the new guidance given in jobcentres to make sure that advances are entirely known about. The changes are increasing the maximum recovery time from six months to a year and the maximum amount from 50% to 100%.

I should mention to the hon. Member for Reading East (Matt Rodda) that in practice this also means that new claimants in December can receive an advance of up to 50% of their overall entitlement, and may receive a second advance to take it up to 100% in the new year. So no one who needs immediate financial assistance will need to wait until the end of the first assessment period.

It has been said a few times that advances are a loan. An advance brings forward a payment, but it is not an advance like a normal loan, as there is no interest to be paid. It is also not like a normal wage advance in the sense that it does not just come out of people’s first payment. In addition, from February we will remove the seven-day waiting period, benefiting about 750,000 new universal credit claimants a year by an average of £160 per household. My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) asked me to confirm that that is a net improvement in the cash position. Waiting days were a long-standing feature of the benefits system, so he is exactly right.

From April, as claimants with housing support transfer to universal credit, an additional two weeks of housing benefit will continue to be paid. That change will provide an average of £233 pounds in additional financial support per household for 2.3 million claimants over the roll-out. From February, the initial wait for payment will comprise an assessment period of one calendar month, during which evidence of earnings and so on will be gathered, and up to a further week of payment generation and administration via Bacs. A claimant’s first UC pay date will be up to seven calendar days after the end of their initial assessment period, and subsequent pay due days will be on the same date each month. As my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) said, most people are paid monthly, and that is the case for universal credit, too.

I want to try to respond to as many of the points made in the debate as I can, but I fear I will not get to all of them. The hon. Members for Eastbourne (Stephen Lloyd) and for Central Ayrshire (Dr Whitford) talked about different payment patterns. It is a reality of devolution that they are possible under the devolved Administrations, and we will engage with them to make that work. However, we think that monthly is the better payment pattern. It is not that it is impossible to use other patterns, and an argument for why payment should be weekly could be constructed, but few things are paid fortnightly. Monthly is the more sensible pattern, and it is only way by which the assessment period can take account of all the different patterns of how people in work are paid.

My hon. and learned Friend the Member for South East Cambridgeshire (Lucy Frazer) noted the use of Opposition days in respect of matters relating to the release of documents and discussed other urgent matters that have not been covered in the meantime. My hon. Friend the Member for Brentwood and Ongar (Alex Burghart) talked about the positive role that the Work and Pensions Committee can play in the process. My hon. Friend the Member for Bolton West (Chris Green) reminded us of the need for care and responsibility in interpreting reports. The hon. Member for High Peak (Ruth George) asked about the post-implementation review, and that will come in 2022. My hon. Friend the Member for South Suffolk (James Cartlidge) mentioned the importance of fiscal responsibility, and universal credit will save substantially on fraud and error.

[Frank Field]

Will the Minister give way?

[Damian Hinds]

I cannot. My hon. Friend the Member for Stirling (Stephen Kerr) asked about home visits, and I can confirm that the DWP makes around 300,000 home visits a year, most of which are completed within 10 days.

I want to turn specifically to the comments of the right hon. Member for Birkenhead (Frank Field), who made a passionate, powerful, emotive speech. Nobody here could fail to have been affected by the moving stories that he related. I know that that is what brought him into politics, and I would never question his motivation, sincerity or determination. However, on the behalf of everybody on this side of the House—I can say this with no fear of contradiction—that is what brought us into politics, too. When we talk about extending free childcare, school results, the national living wage, the creation of 3 million jobs, the reduction in income inequality and record-high household incomes, they are not just statistics; they are steps towards tackling injustice and spreading opportunity, and universal credit is at the heart of that list.

Universal credit helps to prepare people for work through personalised support and help with IT skills and budgeting, by paying people monthly like most jobs and by paying money to people, not landlords. It helps people into work by removing the risk to their benefit claim by making it visibly clear that work will pay and by covering childcare costs in the run-up to work, so that children can settle and people can get set and ready for the first day at work. Once people are there, it helps them to get on in work, because it pays out based on earnings, not hours, because it covers more of their childcare costs, and because there are no hours rules and no restrictions on progression. We are in the middle of a fundamental structural reform that is already improving lives. We will continue to work with claimants, partners and right hon. and hon. Members from across the house to resolve issues and improve universal credit as it rolls out across the country.

Question put and agreed to.

Resolved,

That an humble Address be presented to Her Majesty, That she will be graciously pleased to give directions that the five project assessment reviews, carried out into universal credit between 2012 and 2015 by the Government’s Major Projects Authority now known as the Infrastructure and Projects Authority, and any subsequent project assessment reviews carried out into universal credit by the Infrastructure and Projects Authority between 1 January 2016 and 30 November 2017 that have been provided to Her Majesty’s Ministers at the Department for Work and Pensions, be provided by the Secretary of State for Work and Pensions to the Work and Pensions Committee.

[Frank Field]

On a point of order, Mr Speaker. I have never doubted the motives of people on the other side of the House. As the Government have accepted the motion, will the Select Committee have the papers tomorrow?

Employment, Social Policy, Health and Consumer Affairs Council

Damian Hinds Excerpts

Tuesday 5th December 2017 Written Statements

[The Minister for Employment (Damian Hinds)]

The Employment, Social Policy, Health and Consumer Affairs Council will take place on 7 December 2017 in Brussels. As Minister of State for Employment, I will represent the UK.

The Council will be invited to agree a partial general approach on the revision of regulations on co-ordination of social security systems—Long-Term Care and Family Benefits (883/04 and 987/09).

The Council will be invited to agree a general approach on the European Accessibility Act.

The Council will receive a progress report on the draft directive on equal treatment (Art. 19) and the draft directive on work-life balance.

The Council will be invited to give political agreement to the directive on Maritime Labour Convention (implementing a Social Partner agreement).

As part of the semester process the European Commission will present the annual growth survey 2018, the draft joint employment report, the alert mechanism report and the draft recommendation on the economic policy of the euro area. They will also seek the views and approval of member states on the employment and social aspects of the recommendation on the euro area.

The Council will be invited to adopt Council conclusions on the following three topics: the future of work: making it e-easy; enhancing community-based support and care for independent living; and on enhanced measures to reduce horizontal gender segregation in education and employment.

Under any other business, the Commission will present information on the EU action plan 2017-2019 on tackling the gender pay gap and on concluding the year of focused actions to eliminate gender-based violence. The Swedish delegation and the Commission will present information on the Social summit (Gothenburg, 17 November 2017) and the Bulgarian delegation will present the work programme of its incoming presidency.

[HCWS310]

Universal Credit Sanctions

Damian Hinds Excerpts

Monday 4th December 2017 Commons Chamber

[The Minister for Employment (Damian Hinds)]

Time is a little short, but I will seek to address as much of what the hon. Member for Oldham West and Royton (Jim McMahon) raised as possible. I congratulate him on securing this important debate.

I will start by going over some of the principles of why we have conditionality and of how the system we have specifically designed in universal credit supports claimants in meeting conditionality. The hon. Gentleman went over some of the history of our benefit support system and, yes, the system is there to provide a safety net, but it is also a well-understood and long-standing principle that individuals must meet certain conditions to receive certain benefits.

It is possible, of course, to argue for a system of out-of-work support that does not have conditionality—something like a universal basic income—but that is not, to the best of my knowledge, the policy of the official Opposition or of other Opposition parties in this House. That would be a completely different debate.

Conditionality has been a long-standing feature of welfare benefit entitlements in this country, and the scope and scale of it has evolved over time. The introduction of jobseeker’s allowance in 1996 intensified the monitoring of unemployed claimants’ job seeking behaviour, and the incoming Labour Government of 1997 adopted what was called a work-first and work-for-all approach that embraced JSA’s monitoring of claimants’ job search activities, backed up by benefits sanctions in cases of non-compliance. Universal Credit is specifically designed so that work coaches engage with and support people early in their claim, and then throughout, to give them advice and support, and not to lose contact with them. With the introduction of the claimant commitment, it is clear to claimants what is expected of them. Through it, they commit to undertake certain actions, such as attending interviews, applying for jobs and apprenticeships, or going on training, in exchange for receiving benefits.

[Ruth George]

Does the Minister believe it is correct that a single parent of a 13-year-old child should have to sign up to a claimant commitment to seek work for 35 hours a week when they have a child to look after in the school holidays?

[Damian Hinds]

The claimant commitment is agreed between the claimant and the work coach, and it is based on the claimant’s particular circumstances. So where a mother is taking young children to school and back, the time she would have available to work and for work search would be restricted by that. Where someone has caring responsibilities for a spouse, parent or disabled child, that will also change the amount of time they have available. The point is that this is to be a tailored system that responds to and reflects the individual’s circumstances. The individual and the work coach between them agree what is reasonable, and the claimant then commits to it. As I was saying, work coaches have the flexibility to personalise the requirements—I have pretty much covered what I was about to say in that paragraph in responding to the hon. Lady.

Work coaches can also remove all work-related requirements where it is not reasonable to expect claimants to be able to comply, or suspend them temporarily, such as when someone needs time to find a home. We are constantly reviewing our guidance and ensuring that work coaches understand the importance of getting the right levels of conditionality in place, based on a claimant’s individual circumstances. Indeed, when a work coach takes up the role for the first time, they go through a minimum of five weeks of classroom-based learning, after which they consolidate that learning back in their jobcentre. This training covers conditionality and setting appropriate commitments for the specific circumstances of the claimant. Additionally, when a jobcentre goes live with the universal credit full service, existing work coaches there go through three weeks of classroom learning, which also includes how to apply conditionality and agree reasonable commitments. Similarly, work coaches can refer to extensive guidance on how to support claimants with disabilities and complex needs.

It is right that there is a system in place to encourage claimants to meet their requirements and, as a result, move closer to work. As such, if a claimant does not meet the requirements they have agreed to in their claimant commitment, they are referred to a decision maker to determine whether a sanction is appropriate. We take a number of steps to make sure our decisions are fair: the decision maker invites those referred for a sanction to explain why they failed to meet their requirements; and we take the claimant’s individual circumstances into account, including any health conditions or disabilities, and any evidence of good reason, before making a decision to apply a sanction.

Evidence from trials where there was no conditionality for the first 13 weeks showed a significant increase in the length of time spent on benefit. That was due mainly to people taking longer to find work. In addition, more than seven tenths of UC claimants said the potential for sanctions made them more likely to look for work or take steps to prepare for work.

A report from the OECD in 2013 also noted that the UK’s

“long tradition of activation policies to promote the effective reintegration into employment of working age benefit recipients helped limit the rise in unemployment, even during the global and financial crisis”.

When a claimant disagrees with a sanction, they can ask for the decision to be reconsidered. Following that, if necessary, they can appeal against the decision to an independent tribunal. Ultimately, where a sanction is applied, it can only deduct an amount equal to the claimant’s personal element of universal credit—that is, their standard allowance. It does not apply to the additional amounts they may receive in respect of having children, to cover housing costs or to help with the costs of disability.

We have a well-established system of hardship payments and, in universal credit, claimants are able to apply for a hardship payment from the time their payments are reduced through a sanction. Nevertheless, most claimants do what is expected of them and are not sanctioned. The latest published statistics show that at March 2017, 6.9% of people on universal credit had a deduction taken from their standard allowance as a result of a sanction.

The rate in universal credit is higher than the sanction rate for jobseeker’s allowance, but the two are not directly comparable. In UC, if a claimant fails to attend a work-focused interview without good reason they can be sanctioned, whereas if a claimant on JSA fails to attend a work-focused interview, after five days without making contact they would have their claim terminated. In the November statistics release, about two in every 10 adverse sanction decisions are for failing to attend, whereas under UC it is about seven in every 10. To repeat, it cannot be inferred from that that more people are not attending. Rather, it means that non-attendance is often treated differently because UC is a very different benefit that covers not just the individual element, but support for children, housing costs and other elements.

Universal credit is designed to support claimants in a holistic way, ensuring that we help them find or progress in work, while ensuring that they continue to receive help with their housing costs and other benefits. In universal credit, we are more likely to temporarily reduce benefit, for example where there is a complete loss of claimant contact, while we try everything possible to contact the individual. In jobseeker’s allowance—