(4 days, 11 hours ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairwomanship, Mrs Harris. I congratulate the hon. Member for Brecon, Radnor and Cwm Tawe (David Chadwick) on securing this important debate and thank him for sharing his personal experience, which is so valuable and helpful when we discuss this type of issue. I know it is not the first time he has raised this matter, and he is right to focus on it.
I commend my hon. Friend the Member for North Durham (Luke Akehurst) for sharing his personal experience. I am delighted that both hon. Members are in the House and were able to use Access to Work to help them in their rehabilitation and return to employment. The Department is looking very carefully at the report my hon. Friend referred to, and we will come back to that. I also commend my hon. Friend the Member for Hartlepool (Mr Brash) and the hon. Member for Yeovil (Adam Dance) for their contributions, and, of course, the hon. Member for Strangford (Jim Shannon), who brings an interesting perspective to every debate he speaks in.
To be very clear, we want to build on our welfare state. We want it to be a working state, so that everyone has a platform of opportunity as well as a safety net. That is because everybody, regardless of disability or health condition, deserves the chance to make the most of their life. We want to remove unnecessary barriers that hold far too many people back—barriers to accessing, staying in and progressing in work—and of course, we need to reduce the disability employment gap, which at 29.5% remains far too high.
Douglas McAllister (West Dunbartonshire) (Lab)
I wish to bring to the Minister’s attention the experience of one of my constituents, who has given me permission to provide this information. She is profoundly deaf—that is how she describes herself—and has relied on Access to Work for 25 years. Despite this, she was recently told, via a no-reply email, to telephone or risk losing support, even though email communication had already been agreed as a reasonable adjustment. She applied within the six-week priority window, yet is facing delays of more than 30 weeks. She has received repeated emails incorrectly claiming that she has not responded, and has no clear information or timescales or the support she will receive. Does the Minister agree that a scheme designed to support disabled people into work must itself be accessible, and will she ensure that agreed adjustments are followed, communications improved and priority cases are genuinely prioritised?
I am grateful to my hon. Friend for raising that case. The Minister for Social Security and Disability, my right hon. Friend the Member for East Ham (Sir Stephen Timms), has responsibility for Access to Work. He sadly cannot be with us this afternoon, but I have heard that particular case, and if my hon. Friend supplies me with the details, I will certainly raise it with the Minister.
Martin Wrigley (Newton Abbot) (LD)
In the light of the previous intervention, I draw the Minister’s attention to the fact that the case just mentioned is not unique. Many such cases are happening in my constituency. People are not getting into work, and firms have gone out of business because work coaches are not being paid. Will the Minister stress upon on the Minister for Social Security and Disability the need to get this sorted?
I fully appreciate that the case is not unique, and that far too many people are not getting the service we want them to have through Access to Work. I will say a little about what we are already doing and what we plan to do next.
Access to Work is key to delivering this Government’s objectives. It removes the barriers to work for disabled people and people with health impairments, and provides essential support that people need beyond the reasonable adjustments that employers are already required to make under the Equality Act 2010. As well as being important for individuals, Access to Work is important for businesses because it helps employers to recruit disabled people confidently and, very importantly, to retain them.
The National Audit Office report has been referred to a number of times. It announced its investigation into Access to Work on 1 September, and published its report, which I warmly welcomed, on 6 February. The report highlights that Access to Work is supporting more people than ever—particularly those with mental health conditions and learning disabilities—but it also documents the pressures of administrative backlogs, delays and rising costs, and the impact on people and their employers.
The report also recognises the Department’s efforts to improve decision making and productivity within existing operational, budgetary and policy constraints, including our intention to make improvements following the consultation on last year’s Pathways to Work Green Paper. The NAO’s findings and recommendations are important, and we are reviewing them very carefully. They are a key contribution to ensuring that the scheme meets the needs of those who depend on it, while also delivering value for money.
The NAO is right to point out that “data systems hamper productivity” and do not provide officials with “an integrated view” of all customer information. There have been some improvements, for example, to allow customers to view their claims history—a response to customer feedback. Improvements are also being made to the case management system, but there is much more to do. A new standard operating procedure has been introduced to improve consistency and quality in application processing. That needs to be fully bedded in before the new work study called for by the National Audit Office is carried out, so that it can reflect the environment in which caseworkers will be operating in the future.
I want to talk about the growing demand for the scheme. As we all agree, Access to Work does a really important job, but it has come under serious strain from a major surge in demand since the pre-pandemic period. In 2024-25, although they were down somewhat that year, approval volumes were 59% higher than they had been in 2019-20. Spending on Access to Work in 2024-25 of £321 million was, in real terms, twice what it was in 2018-19 before the pandemic. The number of people receiving a grant—74,190—was almost double, and the number of applications in 2024-25—157,000—was more than double the number in 2018-19. Many more people are seeking support, particularly for mental health impairments, and that is now the largest group approved for payment, at 31%.
Funding for support workers represents the largest share of expenditure, at 71%. The job aide support worker category replaced British Sign Language interpreters in 2024-25 as the category with the highest expenditure, at £63.9 million. Spending on BSL interpreter support workers was £62.8 million. Some of the increased demand has arisen from better public awareness of Access to Work. I know that hon. Members were concerned about people knowing about the scheme.
Caroline Voaden
Are the Government evaluating the difference between the cost of paying Access to Work at a higher rate, so that people can actually get the support they need, and the cost of them being on universal credit if they are unable to work?
The Department for Work and Pensions will always be looking at and evaluating the schemes we have, and what the cost is if a scheme is not available to people, so that work will be underway.
I want to go back to the issue of people being aware of the Access to Work scheme. Some will remember that Access to Work was once talked about as the Government’s best-kept secret, but the figures I have just read out show that it is not anymore. That is a positive thing; we want more disabled people being supported to move into and stay in employment. However, managing that surge in demand has damaged customer service. It has caused a substantial backlog in applications, which many service users have been inconvenienced by. In response, we have substantially increased the number of staff working on Access to Work, from 500 in March 2024 to 648 this March. We have streamlined the process by removing some routine requests for information, but I agree that serious problems remain.
To protect employment opportunities, case managers prioritise applications where the customer is due to start a job within four weeks. In 2025, staff allocated 96% of those applications within 28 days. We have also heard of cases where someone who previously received Access to Work is denied it, or where awards have been reduced even though the circumstances have not changed. To be clear, the policy has not changed. There has been some misunderstanding about that, so it is important that I make it very clear: there has not been a change in the policy. There will be policy changes, but they have not happened yet. What is true is that, over the past year, officials have worked to apply the existing guidance more consistently. That means that some awards have changed at the point of renewal, but the policy itself has not changed. It is just that the existing policy has been applied more consistently.
Another issue that has caused concern is the withdrawal of routine email access. The reason for that was concern about the security of the often very sensitive data being sent in relation to Access to Work, and the risk to data privacy. We are working on a new digital capability for Access to Work, which will allow documents to be uploaded online. Email correspondence is still available for those who need it as a reasonable adjustment.
On the reform of Access to Work, as I have said, there is no doubt that serious problems remain with the programme. Since it was first designed over 30 years ago, the style, scope and cost of the support that people require has changed significantly, yet Access to Work has stayed largely the same. As a result, there is a strong case for reform. In last year’s Pathways to Work Green Paper last year, we consulted on the future of Access to Work and how to improve it to help more disabled people into work. Reform needs to be informed by the views and experiences of those who use or could use the service. We recently concluded the Access to Work collaboration committees, with disabled people’s organisations and lived-experience users, to inform and to challenge the design of the future Access to Work scheme.
We will work closely with the Department’s recently formed independent disability advisory panel on the next phase. The panel, under the chairwomanship of the disability activist Zara Todd, will connect the expertise of disabled people and people with long-term health conditions with the design and delivery of our policies, particularly around employment support. The panel has made clear its interest in Access to Work, and has already had its first meeting specifically on the topic. Once we have a reform proposal, we will look at the timescale and work closely with stakeholders to make the transition from the current arrangements to the new ones as painless as possible. We are taking some time over the changes, but I think the House will agree that it is important to get them right.
In conclusion, Access to Work is vital to our mission to break down the barriers to the workplace for disabled people and those with health conditions. We need to continue improvements to the NHS so that people can access the treatment and support that they need earlier and more consistently. Reductions, at last, in NHS waiting lists are really good news. We need Sir Charlie Mayfield’s “Keep Britain Working” review, working closely with employers, to shape future workplace environments where disabled people can thrive. We have also set up the Pathways to Work service, and we need Connect to Work and WorkWell to deliver personalised employment and health support. Through the Timms review, we need personal independence payments to support disabled people to achieve better health, higher living standards and greater independence, including through employment.
Our goal is that everyone who can work gets the support, confidence and opportunities that they need to realise their full potential. Those who have spoken in this debate have been absolutely right to highlight the importance of Access to Work in achieving that goal.
Question put and agreed to.
(3 weeks, 3 days ago)
Written StatementsThe Department for Work and Pensions has today published its annual statistics on incomes and living standards covering 2024-25—the last three months of the previous Government as well as the first nine months of this Government.
These include households below average income statistics, which contain estimates of household incomes and a range of poverty rates and low-income indicators for 2024-25, derived from the family resources survey.
Further publications in today’s release are: income dynamics; the pensioners’ incomes series; children in low-income families; improving lives indicators; separated families statistics; and the family resources survey. These publications cover the four statutory measures of child poverty required to be published by the DWP under the Child Poverty Act 2010.
Accurate data is fundamental to making effective policy interventions to support low-income households and allows us to track and to be accountable for the progress we make. In 2024-25, we have therefore made two important methodological changes that improve the accuracy of the HBAI statistics.
For 2024-25, we have for the first time been able to link HBAI survey responses to benefits administrative data following several years of work started under the previous Government. This means that our statistics now address the fact that survey respondents, for a variety of reasons, do not always report their benefit income accurately, with people more likely to under-report rather than over-report their income. This improvement in methodology produces reduced overall rates of poverty as people in low income generally receive a greater proportion of their income from benefits.
The improved methodology has also been applied to all years from 2021-22, enabling consistent comparisons over the most recent years.
For the statistics released today, the baseline year for absolute poverty has been updated from 2010-11 to 2024-25. The baseline year is updated every 10 to 15 years to ensure it remains relevant to modern-day incomes. This change increases the reported level of absolute poverty while leaving key trends unchanged.
The proportion of individuals living in relative poverty after housing costs in 2024-25 was 20%, unchanged from 2023-24. Within this, the proportions of working age adults and of children living in relative poverty were also unchanged, at 19% and 27% respectively. However, the relative poverty rate for pensioners increased to 14%, compared with 12% in 2023-24.
The percentage of children in food insecure households has decreased from 18% to 14%, with 2 million children overall living in a food insecure household in 2024-25. For working age adults, the food insecurity rate fell from 11% to 9%, whereas for pensioners it remained stable at 3%. The number of individuals in households that had accessed a food bank in the previous 12 months fell from 2.8 million to 2.5 million, around 4% of the population.
These high inherited levels of poverty and food insecurity are wholly unacceptable and, since we first came into government, we have taken robust action to change the course we are on, drive down poverty and deliver lasting change for the millions of families whose lives are damaged by poverty now and in the future.
In December, we published our UK-wide child poverty strategy. This represents our first step towards ending child poverty and will lift 550,000 children out of relative low income after housing costs in 2029-30; this will lead to the largest reduction in a single UK Parliament since comparable records began. The removal of the two-child limit from April alone will lift 450,000 children out of poverty in the last year of this Parliament. Alongside this, we are putting in place robust arrangements to ensure that we can continue to build on our success as part of a long-term, 10-year strategy for lasting change.
We know that getting more people into better jobs is crucial to reducing poverty and improving living standards, as well as to the UK’s future economic prosperity. Through the proposals in our Get Britain Working strategy, we are driving forward the biggest reforms to employment support in a generation, with funding of £3.8 billion by 2028-29, to help more people into work and to get on in work.
Alongside this, we have taken substantive action to support those on the lowest incomes, including:
Boosting the national living wage, which will increase again to £12.71 an hour from next month—an increase of £900 a year for a full-time worker.
Introducing a fair repayment rate for deductions from universal credit from April 2025, allowing 1.2 million of the poorest households to retain more of their award.
From next month, introducing the first sustained above-inflation rise in the basic rate of universal credit since it was introduced, with just under 4 million households benefiting from our decision to increase the universal credit standard allowance.
Providing a £1 billion package, including Barnett, to reform crisis support in England from April—the first ever multi-year settlement for crisis support.
Despite having to make the tough decisions to deal with our fiscal inheritance, this Government remain absolutely committed to giving pensioners the security they deserve in retirement. The basic and new state pensions will increase by 4.8% in April, benefiting over 12 million pensioners by up to £575, and our commitment to protect the triple lock means that annual spending on state pensions is forecast to be an estimated £30 billion more a year by the end of this Parliament. Alongside this, we are delivering the biggest ever drive to increase pension credit take-up, which has seen some 208,900 applications received in 2025, with nearly 33,500 extra pension credit awards compared with 2024.
[HCWS1465]
(3 weeks, 4 days ago)
Written StatementsThis Government recognise that greater certainty helps local authorities to design and deliver sustainable plans for local welfare.
As announced by the Chancellor as part of the spending review, from 1 April 2026 the crisis and resilience fund will come into effect in England, providing £842 million per year—£1 billion including Barnett impact—to reform crisis support, while maintaining discretionary housing payments in Wales. This will be the first multi-year settlement for locally delivered crisis support. Alongside this, the Government have made an additional £27 million available through the fund to local authorities in England for 2026-27, to support people in crisis following the sharp increases in oil heating prices, which is targeted at areas with higher reliance on oil heating.
The fund brings together existing provisions by replacing the household support fund and incorporating discretionary housing payments in England when both schemes end on 31 March 2026, simplifying crisis support into a single, streamlined fund. This will make it easier for local councils to deliver help and for people to access it, while ensuring that vital assistance remains available for those who need it. DWP will continue to administer discretionary housing payments in Wales and regulations have been amended to reflect this change.
The crisis and resilience fund is designed to respond to sudden and unexpected financial expenses that place people at risk of hardship, including sharp, unforeseen increases in essential costs. The fund will provide a safety net for people on low incomes who face financial crisis and need immediate support, including help with housing costs. Crucially, it also represents a significant opportunity for local councils to move beyond short-term responses, by enabling investment in preventive approaches that strengthen financial resilience and reduce repeat crisis. The fund supports local councils to work with voluntary and community sector partners to strengthen local support networks, so that crisis support can act as a gateway to wider help that addresses the underlying drivers of hardship, supporting the Government’s wider efforts to reduce poverty, prevent homelessness and end mass dependence on emergency food parcels.
The Government have worked closely with local councils and stakeholders on the detailed design of the fund through a structured co-design process. With scheme guidance, and allocations now published, the crisis and resilience fund gives local councils the clarity and confidence to plan for delivery from the outset.
[HCWS1446]
(1 month, 1 week ago)
Commons Chamber
Kirith Entwistle (Bolton North East) (Lab)
Under the last Government an additional 900,000 children became part of the child poverty statistics, but as a result of our Child Poverty Strategy, published in December, 550,000 will be lifted out of poverty by the end of the current Parliament—the largest number ever in a single Parliament. The removal of the two-child limit from April, for instance, could benefit about 4,710 children in my hon. Friend’s constituency.
Kirith Entwistle
I am proud that this Labour Government will lift more than 4,500 children in my constituency out of poverty by scrapping the two-child limit, but what further measures are the Government implementing to tackle child poverty and support families in my constituency?
Reducing child poverty is a moral imperative for us all, and for this Government in particular. We know that growing up in poverty damages children’s health, education and future employment prospects. We have just been discussing the number of NEETs, and many of those children could become NEETs, so child poverty is bad for the UK’s economic prosperity as well. We had not just been waiting for the strategy in December; we had already introduced the extension of free school meals eligibility, tripled access to breakfast clubs and supported the holiday activities and food programme, and we have put £1 billion into the reforming crisis and resilience fund.
Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)
Sarah Coombes (West Bromwich) (Lab)
My hon. Friend is exactly right. This is why we need to ensure that jobcentres have really good engagement with local employers, including manufacturers. She will be pleased to know that there will be an employer roundtable at the Manufacturing Centre in West Bromwich on 17 March, with Sandwell college and manufacturing employers. There will also be an employer breakfast on 29 April, again at Sandwell college, about jobcentres and what they can offer, particularly around SWAPS—sector-based work academy programmes—and manufacturing SWAPS, which are so important.
I call the shadow Secretary of State.
Linsey Farnsworth (Amber Valley) (Lab)
With the Minister for Skills now working jointly across the DFE and DWP, we have very clear collaboration. We have already launched eight youth guarantee trailblazers, which are testing innovative approaches to localised support for young people who are NEET or at risk of becoming NEET, including targeted SEND support. We also have the Milburn review into young people and work and how better to support them.
(2 months, 1 week ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure, as always, to serve under your chairmanship this afternoon, Dr Murrison.
I congratulate my hon. Friend the Member for Southport (Patrick Hurley) on securing this debate. As he rightly pointed out, employment can often get bound up in numbers, targets and rates. What we all know is that this is fundamentally about people, families, communities and the world of work. Work is a huge part of people’s lives, and we should never underestimate how much it matters that we support people into work and help them succeed in their careers. I thank all hon. Members who have spoken this afternoon, in what I think has been an excellent debate, about the support that their constituents are already receiving in many cases.
My hon. Friend the Member for Stafford (Leigh Ingham) talked about her local employers, as well as the vital role of towns in economic growth and regeneration. I am also grateful to my hon. Friend the Member for North West Leicestershire (Amanda Hack), who brings great knowledge to her role on the Work and Pensions Committee, as well as her experience prior to entering Parliament. She spoke about the Connect to Work programme, which I will say a little more about.
My hon. Friend the Member for Wolverhampton North East (Sureena Brackenridge) spoke about NEETs and about the excellent work, rooted in partnerships, that is already going on in her area to support individuals. At the end of her contribution, she talked about hope, ambition and action, which I thought was a very powerful message. I would gently remind the hon. Member for Gordon and Buchan (Harriet Cross) that over 500,000 people entered employment over the last year.
I pay tribute to what my hon. Friend the Member for Southport said, and to his commitment to helping his constituents into good work. It was great to hear him champion some of the excellent work of The Big Onion in Southport, the Cradle to Career scheme in the Liverpool city region more widely, and the various place-based employment support providers across the north of England. I was particularly interested in Zink and its microjobs, and in how it helps people move into part-time and then full-time work.
My hon. Friend also spoke with great eloquence about the challenges he faced growing up in an area where the local factory had closed and work was really hard to come by. It underlines the fact that where someone lives is often a significant factor in the challenges they face and the chances before them in life. Those who live in communities like the ones that he represents, or that I represent in Kingston upon Hull North and Cottingham, will always know best what the barriers and opportunities are in their local area. That is why I am committed to working closely with mayoral strategic authorities, local government, the voluntary and community sector, and others to ensure that employment support works for people, no matter where they live.
I regularly meet with mayors and leaders in local government, as do my officials, to ensure that we are designing employment support that meets the needs of those local communities. In December, I met the mayoral council. Last week, the Minister for Skills, Baroness Smith of Malvern, and I met the Local Government Association’s inclusive growth committee to hear from local leaders working across England, including those representing towns, on youth employment and the jobs and careers service. Earlier today, I met the Mayor of Greater Manchester, Andy Burnham. We will continue to listen to and engage with local leaders as we reform employment support.
A core strength of the Department is our network of jobcentres and work coaches on high streets all around the country, with staff who are knowledgeable and passionate about the communities they serve. We have to make the most of that, which is why we are building a new jobs and careers service that moves away from the one-size-fits-all approach that has been mentioned several times this afternoon. We are instead building a locally responsive service designed to meet the different needs of local labour markets, local people and local employers. We are already testing new elements of this service through our pathfinder in Wakefield, which I went to see before Christmas. We have also matched up Jobcentre Plus boundaries with mayoral strategic authorities to strengthen partnerships between jobcentres, local government and other local stakeholders.
My hon. Friend the Member for Southport mentioned the efforts to make jobcentres more human. I have to say, this is not the first time that effort has been put into that. I read that, in the 1940s, as part of his drive to humanise the employment exchanges that existed then, Ernest Bevin felt it necessary to issue an instruction that staff should say “good morning” to members of the public when they came into the employment exchange looking for help.
Fortunately, I think we are starting from a better position than that today, but we want to make sure that jobcentres are places that people want to go to for support, not places that they shy away from. We are making sure that the new jobs and careers service is less about benefit administration and box ticking, and that it better uses technology so we can free up our work coaches’ time to focus on giving people support that is tailored to their needs. In the English devolution White Paper, we again set out the important role of mayors in driving local growth and supporting labour market and skills needs.
I will turn to some of the locally led employment support that we are investing in already, including £1 billion through our Connect to Work programme. I recently saw that support in action in Lewisham, where a neurodiverse young man told me how the personalised support that he was receiving from the team was helping him in his work as a swimming teacher. Across England and Wales, he is one of 300,000 disabled people, or people with health conditions and other complex barriers, who we will be supporting through Connect to Work by the end of the decade.
Mayors and local authorities are being funded via grants to enable delivery of local Connect to Work programmes. Over two fifths of delivery areas are now up and running, and we have given areas considerable flexibility in how they deliver the service to reflect the local priorities and other support available in the area.
We are also expanding WorkWell across the whole of England over the next three years to support up to 250,000 people. I visited WorkWell in Cambridge a few months ago and saw the brilliant way that it is working together with local authorities, integrated care boards and Jobcentre Plus to provide a single route to personalised, integrated work and health support. This recognises that local areas are well placed to knit together local services. For that reason, we have also commissioned local Get Britain Working plans in all areas of England.
The Liberal Democrat spokesperson, the hon. Member for Horsham (John Milne), raised the issue of Access to Work, and I heard what he said. He will know that a National Audit Office report was produced at the end of last week. Demand has soared for Access to Work; we are already putting in additional staff and we are looking at what more can be done because we recognise how important it is.
I want to mention the voluntary and community sector, which was raised by a number of Members this afternoon, and how important its role is in employment support. With the mayoral strategic authorities, we are working closely with the sector to deliver 17 economic inactivity and youth guarantee trailblazers to test new, innovative ways of delivering that support, delivered by local partners. The partnership is about engaging with communities at that grassroots level to help them access holistic support to move towards work. I heard the calls this afternoon for the funding to be made available to that sector on a sustainable basis with multi year settlements.
There was mention of local authority funding. The local government finance settlement is the Ministry of Housing, Communities and Local Government’s most significant move yet to make English local government more sustainable. The Government are making good on long overdue promises to fundamentally update the way we fund local authorities. We are delivering fairer funding and targeting money where it is needed most through the first multi-year settlement in decades.
My hon. Friend the Member for Southport spoke about the long-lasting effect on his life when he could not get a job as a young man. For so many, the consequences of what happens at the start of their working life can cascade down the years. That is why we are putting a real focus on supporting young people, not least through our youth guarantee.
At the Budget, we announced the expansion of the youth guarantee, backed by £820 million of investment, which answers the question asked by the hon. Member for Birmingham Perry Barr (Ayoub Khan) about supporting young people into infrastructure projects. That investment will create around 300,000 more opportunities to gain workplace experience and training for young people. I take issue with his comments, however, because he failed to acknowledge that if support and help are offered to a young person, as they will be through the youth guarantee, there is a responsibility on them to take up that offer of assistance and support. That is part of the social contract in this country.
I have already mentioned the locally led trailblazers, but we are also expanding youth hub provision to more than 360 areas across Great Britain. That is important because those hubs are helping us to reach young people where they are—in places such as football clubs and other sports facilities. My hon. Friend the Member for Southport mentioned the importance of delivering support in familiar settings, and I am glad that he and several other Members highlighted JobsPlus as an example of that. It delivers community-based employment support through the social housing sector and is being piloted in 10 sites across England.
I want to mention the Milburn review, which is looking at why nearly 1 million young people are not in education, employment or training. It is due to report in the summer. We cannot allow the talents of nearly 1 million young people to be wasted. It is not good for those young people, and it is not good for our economy or the taxpayer either.
Whether it is our trailblazers, youth hubs, Jobcentre reform or programmes such as Connect to Work and WorkWell, we are determined that people should get the support that suits them, regardless of where they live or what their circumstances are. People’s lives are complex and people can face all sorts of barriers to work, whether it is health, skills, transport, housing or any other factor. That is why we must take a joined-up approach to deliver a locally tailored ecosystem of support to ensure that no one is left behind.
We must ensure that people can access offers of support from sources that they trust and that treat them as an individual and as a whole person. That is why the Government have committed to learn from place-based support, such as the economic inactivity and youth guarantee trailblazers and Connect to Work, and it is why we are committed to truly embedding and tailoring our new jobs and careers service to meet the needs of local people and employers.
As we develop our jobs and careers service, our youth guarantee and Pathways to Work, we will be working closely with local government, including mayoral strategic authorities, to ensure that they reflect the communities that they serve. Ensuring that employment support is integrated in, and meets the needs of, local communities will help people to benefit from the purpose, pride and independence of good work and to fulfil their potential.
(2 months, 3 weeks ago)
Commons ChamberI beg to move an amendment, to leave out from “House” to end and insert:
“welcomes the Government’s commitment to invest in young people’s futures; notes that the UK has the second highest youth employment rate in the G7; recognises that the Government announced more than £1.5 billion of investment over the next three years, consisting of £820 million of funding for the Youth Guarantee to support young people to earn or learn, and £725 million for the Growth and Skills Levy; further welcomes that the expanded Youth Guarantee will reach almost 900,000 young people, including through Youth Hubs in every area in Great Britain and a new Youth Guarantee Gateway; further notes that this investment will also create around 300,000 more opportunities to gain workplace experience and training; and further recognises that, as part of the Youth Guarantee, the Government is breaking the cycle of unemployment by guaranteeing paid work to around 55,000 young people aged 18 to 21 who have been on Universal Credit and looking for work for 18 months.”
In the north, we would say that the hon. Member for Faversham and Mid Kent (Helen Whately) has some brass neck to make the speech she has just delivered. As an MP who has been in the House for some time, it might be helpful to us all if I remind the hon. Lady about her party’s record over the past 14 years. Her party fumbled the handling of the pandemic, setting back a whole generation of kids. It failed to deal with the growing mental health crisis among young people, left school buildings to crumble, and decimated youth centres.
Let us just look at the facts about youth employment specifically. Under the last Conservative Government, the number of young people not in education, employment or training grew by 45% in just three years. Scarily, that left almost 1 million young people—one in eight—on the sidelines when the Conservatives were chucked out of office.
Several hon. Members rose—
I am just going to complete the Conservatives’ record, because I think it would be beneficial for us all to hear it. When the Conservatives were chucked out, the youth unemployment rate stood at 13%, compared with just over 9% two years earlier, and the number of young people economically inactive due to long-term sickness had more than doubled in five years to over a quarter of a million on the Conservatives’ watch. They also failed to support young people in the face of the changing retail sector, for example. Many young people start their careers in that sector—I certainly started with a Saturday job—but retail job opportunities have fallen since 2017 as new technology changes how people shop and how shops employ people. The Conservatives took no action on that, so their legacy for young people looks pretty dismal from virtually every angle.
In my experience, my neighbour is always a fair and credible person, so will she confirm that youth unemployment reduced over the 14 years that the Conservatives were in government, rather than focusing on some selective period over covid in order to give an entirely partisan and biased view of the statistics? The numbers went down, did they not? The only Government who put up youth unemployment by 45% were the last Labour Government.
The right hon. Gentleman, who is a close neighbour in East Yorkshire, says that I am being partial and only giving part of the picture. I think I have been setting out a very full explanation of what the Conservatives delivered for young people over 14 years.
To expand on that point a little, the Conservatives are now talking about the need to increase apprenticeships, for example. On their watch, there was a collapse in youth apprenticeships—starts were down by almost 40% under the Conservative Government over the past decade, leaving this Labour Government to reverse that decline. They have also been critical of the welfare system for trapping people out of work; they seem to have forgotten that they presided over it for 14 years. The Conservatives introduced that system, and it has now been left to us to address the disincentive to work that they built into it. We started to deal with that task through the Universal Credit Act last year.
No, I will make some progress. Put simply, the Conservatives cut off opportunity for young people. They wrote them off, and then they blamed young people for the position they were in. On the Government Benches, we know that young people are this country’s future and that their success is Britain’s success. We are not prepared to sit on our hands and let all that talent and potential go unused. That is not good enough for those young people, and it is not good enough for this country, which needs the contribution they can offer more than ever and not just now, but for the next 40 years.
No, I am going to make some progress. We are investing in young people to turn around the dire legacy that the Conservatives left behind. We are supporting young people so that they can fulfil their potential, breaking the cycle of wasted talent cascading down generations. We are starting already to see some signs of progress. We have got record levels of employment and youth employment is up by 153,000 in the past year, but the scale of the crisis brewed up by the Conservatives requires much more than that. The number of young people neither learning nor earning is equivalent to three cities the size of Hull, so we know that there is more to do.
I will later on, but I want to get this on the record. We know that if someone falls out of the workforce—[Interruption.] The Conservative MPs chuntering from a sedentary position might just want to listen to this, because it is about the future of our country. We know that if someone falls out of the workforce when they are young, they can lose out on £1 million in earnings, and it costs the state a similar amount to support them, but if we can ensure that they get the right opportunities and support early on, we can change their life stories for the better. That is why we are helping more young people into work, and it is why youth employment is a priority for us in the DWP.
Jim Dickson (Dartford) (Lab)
In my constituency and across Kent we are pleased to be one of the trailblazer areas for the Connect to Work programme, which started under this Government, not the last Government. It gives people personalised support to stay in work and to get jobs in the first place, ensuring that they have a long-term future in the workplace. Is that not the sort of serious intervention we need to deal with unemployment among young people?
My hon. Friend is exactly right. That is the kind of initiative that will help deliver for these young people who are out of work, particularly with health problems, health conditions and disabilities.
I think all of us in the House would recognise how disheartening it can be for young people who are looking for work who cannot find that opportunity. They may not have the confidence or knowledge to apply for the jobs that are out there. Let us put ourselves in the shoes of an 18-year-old who has perhaps lost their way a little bit and does not have the confidence; it can be difficult for them to go into a jobcentre to find out what opportunities are available. That is why, as part of the youth guarantee, we are expanding the DWP youth hubs located in places such as football clubs and other sports facilities to more than 350 areas across Great Britain. I accept that youth hubs were part of the previous Government’s plans to deal with youth unemployment, but they were small in number. We are expanding them to 350.
Youth hubs are helping people such as Erin, a young woman who was unemployed for two years and struggling with her motivation. After visiting a youth hub based at Crystal Palace football club, she was able to complete a work placement before being offered a permanent job. That came off the back of joining a hospitality programme, which gave her valuable experience and confidence. It goes to show what young people can achieve when they are motivated, confident and have that self-belief. That is why the expansion of youth hubs forms just one part of our wider youth guarantee, which is designed to make sure that no young person is left behind.
In East Kent, there is a company called HatHats, which runs coffee bars. The proprietor philanthropically employs hard-to-employ young people. In the last 12 months for which figures are available, the profit on all 25 of its outlets was £12. As a direct result of this Government’s policies, those young people are losing out on the opportunities that the Minister is describing.
I will come on to talk a little about some of the accusations levelled at the Government in relation to national insurance contributions, so I shall deal with that point later in my speech, if I may.
The youth hubs will offer a helping hand, whether with writing a CV or with obtaining a work placement to include on a CV. We have announced that over the next three years, we will invest £820 million to support almost 900,000 young people who are on universal credit and looking for work. There will be new dedicated work support sessions, followed by intensive, tailored assistance to help those young people secure the right job, training or learning opportunity. We are backing that up by funding about 300,000 more opportunities for people to gain work experience and training in sectors such as construction and hospitality.
Andrew Pakes (Peterborough) (Lab)
I thank my right hon. Friend for her great explanation of youth hubs. We have just opened one at the Peterborough United—Posh—stadium, bringing together all sorts of partnerships. A number of issues are raised by the young people I speak to there, which the youth hub addresses. One of those issues is an element of the Opposition’s record that they have not talked about, namely the decimation of in-work support, and of career services in schools to give young people advice and help. Opposition Members talked a lot about apprentices and undergraduates, but they did not talk about levels 2 and 3, and the engine-room apprentices we need. The youth hub will start getting us back to that in Peterborough.
My hon. Friend has made his point very well indeed.
Let me return to the subject of the youth guarantee. There will be guaranteed jobs for about 55,000 people over the three years. Companies have already shown an interest in taking on such employees, including E.ON, JD Sports, Tesco and Tui, and we are grateful for the offers that they are making. We Labour Members have tackled these challenges before, under the last Labour Government, through the new deal for young people, and we will do it again now.
Steve Race (Exeter) (Lab)
Along with the youth hubs and the youth guarantee, there is the £725 million investment in apprenticeships. With its new technical excellence college status, Exeter college in my constituency is becoming one of the biggest providers of apprenticeships in the country. Does the Minister agree that that stands in stark contrast to the 50% increase in youth unemployment under the last Government?
My hon. Friend has made his case very well. He referred to the £725 million for the growth and skills levy, which is part of the more than £1.5 billion that has been made available for employment and skills support in the Budget. That is very much needed after the dramatic decline in the number of young people starting apprenticeships under the last Government, which we will reverse. At the same time, we are strengthening our world-leading universities.
I will make some progress, because many Back Benchers want to speak.
The skills White Paper sets out our plan to build a more specialised and more efficient higher education sector that will better meet the needs of the economy. The graduate economic inactivity rate is now at its lowest on record, and we want to build on that. We recognise the need for modern technical skills, and not just the old academic subjects. I saw that for myself at the Ron Dearing university technical college in Hull only last week—young people honing their skills and getting a brilliant education.
No matter what path young people choose, we want them to have the skills to succeed. Skills are vital in the world of work today, but more than a quarter of all vacancies are skills shortage vacancies. That is why, last year, the Prime Minister set out our bold ambition for two thirds of young people to enter higher-level education or training. We have added adult skills to the Department for Work and Pension’s brief, to help us join up employment support and skills more closely, so that young people have genuine pathways into good jobs. We are significantly expanding sector-based work academy programmes—SWAPs—in England and Scotland; there will be more than 145,000 additional places over the next three years. Just today, our colleagues at the Department for Science, Innovation and Technology announced a new package to give people the skills that will enable them to seize the opportunities that artificial intelligence will bring. That includes an expansion of free AI foundation training for all workers, to upskill 10 million people by 2030. All this is about opening up opportunities for young people.
However, we want to make sure that no stone is left unturned. Last month, the Government unveiled our national youth strategy, which is backed by £500 million. It will rebuild the youth services that the Conservative party decimated, and help more young people transition into adulthood. The Secretary of State has commissioned Alan Milburn to complete a wide-ranging investigation into the causes of youth inactivity, and to come up with policy solutions across the piece. As a former Health Secretary, he is well placed to give particular focus to the role of health in all this. That is needed, because over a quarter of young people not in employment, education or training now cite long-term sickness or disability as a barrier—more than double the figure in 2013-14.
Too many people are shut out of the labour market by disability or ill health. This has worsened, especially since covid, so we are rolling out a £1 billion Pathways to Work offer, which brings together programmes such as Connect to Work, which my hon. Friend the Member for Dartford (Jim Dickson) referred to and which I have seen in action in Lewisham, where I met a neurodiverse young man who told me that the personalised support that he was receiving from the team was helping him to stay in work; and WorkWell, which is providing really impressive integrated work and health support that I recently had a chance to see in Cambridge. Pathways to Work will ultimately guarantee access to work, health and skills support for disabled people and those with long-term health conditions who are claiming out-of-work benefits. We already have 1,000 Pathways to Work advisers on hand to provide better one-to-one support. We know that prevention is better than cure, so we want to avoid people falling out of work due to ill health wherever possible, and employers have a unique role to play.
Sarah Smith (Hyndburn) (Lab)
Does my right hon. Friend agree that while it is easy to debate who is getting it right and who is getting it wrong, fundamentally, we require a systemic shift in how we look at the problem, which is generational and intergenerational? Everything that she is outlining shows that we are taking a systemic view, to get to the cause of these problems, so that we can finally move forward for the generations that have been let down. We did not have that approach from the previous Government.
Those are very wise words from my hon. Friend.
I want to say something about employers, because they have a vital role to play in all this. On keeping people in work when they develop an illness or a disability, we are really pleased that we are working with over 100 Vanguard employers to take forward the recommendations in Sir Charlie Mayfield’s “Keep Britain Working” review, and helping to create a picture of what best practice looks like when it comes to building healthy and inclusive workplaces. We have had an outstanding response from businesses, because they know that when their workers win, they win too. Contrary to what some people say and believe, the interests of employees and employers are not diametrically opposed. Everybody wins when workers are secure, happy and healthy.
That leads me on to the Employment Rights Act 2025, which includes reforms such as the extension of statutory sick pay, so that more people can take the time they need to recover, instead of risking longer-term absences. That is not just good for workers; it is good for businesses, too.
I want to address the issue of national insurance contributions and business rates. Let us be clear: employers generally do not have to pay any employer national insurance contributions for employees under the age of 21 or for apprentices under 25. Yesterday we announced that every pub and live music venue will get 15% off its new business rates bill. That is on top of the support announced at the Budget. Bills will then be frozen, in real terms, for a further two years. This Government will always support businesses, giving them the stability that they need to grow, and to create good jobs.
Before I finish, there is one other thing I want to talk about. What happens at the start of people’s working lives can have many consequences for their future, and the same is true of what happens in our childhood. When a young person ends up out of work or training, it is no use pretending that that has suddenly come about in a bubble. Someone who grows up poor is less likely to do well at school and more likely to be a NEET. Poverty, low attainment and low aspiration can not only waste the potential of a young life, but cascade on to the next generation. Shockingly, the number of children in poverty increased by over 900,000 under the Conservatives, which is shameful, and they now come to this House to ask why a generation is struggling.
We are very proud to be lifting the two-child limit. That will have benefits for hundreds of thousands of children, who will be less likely to experience mental health issues, less likely to be unemployed, and more likely to be in work and earning more, yet the Conservatives oppose it. As ever, they seem determined to pull the rug out from under the next generation, and does that not sum them up? They blame; we support. They complain; we fix. They cut; we build.
We will never forget the neglect that left our young people without the hope and opportunity that every generation deserves, but this Government are doing things differently. We are laying the foundations for young people to succeed, and giving them the opportunities that they need and the skills and support to seize them. These opportunities are of course accompanied by obligations to take them up, but that is so much better than a life that is just written off. We are breaking down barriers to opportunity, so that every young person, in every part of our United Kingdom, can fulfil their potential.
I call the Liberal Democrat spokesperson.
(2 months, 3 weeks ago)
Commons Chamber
Andrew Lewin (Welwyn Hatfield) (Lab)
Good work is generally good for health and wellbeing, so we want everyone to get work and get on in work. Through our Pathways to Work guarantee, which is will be backed by £1 billion a year of new funding by the end of the decade, and our Connect to Work supported employment programme, more disabled people and people with health conditions will be supported to enter and stay in work.
Andrew Lewin
I welcome the investment and the news earlier this month from the Office for National Statistics that the number of people in employment has risen by 500,000 since July 2024. I am sure that the Minister will join me in celebrating the fact that more people are entering the labour market under a Labour Government. While we should celebrate progress, we must recognise that there is more to do. What more are the Government going to do to support people with health conditions back into the workplace, and in particular, to build on the success of the WorkWell pilot?
I am grateful to my hon. Friend for talking about the WorkWell pilot. When I attended a recent WorkWell session in Cambridge, I was really impressed. Following the success of the pilots, which have so far supported more than 25,000 people, WorkWell will expand across all of England, backed up by a £259 million investment over three years, and could support up to 250,000 people into work. Participants receive proactive early support based on their health-related barriers to employment, such as mental health issues, musculoskeletal problems and other long-term health issues.
David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)
Access to Work is meant to help disabled people to stay in employment, yet numerous constituents tell me they have been waiting more than nine months for an assessment, and a year or more for changes of circumstances. Those delays are putting jobs and incomes at risk. How many people has the Department assessed as losing work because of the delays and what urgent action is being taken to clear that backlog?
The hon. Gentleman mentions an important scheme that enables people to move into work and stay in work. It is right to say that that there have been some issues with Access to Work. More resources have gone in to ensure that those who are moving into work in particular are prioritised by the scheme. I am sure that the Minister for Social Security and Disability, my right hon. Friend the Member for East Ham (Sir Stephen Timms), who leads on Access to Work, can write to the hon. Gentleman with further detail on what more we are doing.
Mr Peter Bedford (Mid Leicestershire) (Con)
As a result of this Government’s economic vandalism, unemployment continues to rise, particularly among young people and those with disabilities. Now more than ever, it is crucial that we support people back into work, but the Access to Work scheme is overly bureaucratic and faces significant delays. Indeed, at the weekend, one of my constituents told me they had been asked by a Department official to fill in a fraudulent timesheet in order to be paid on time. What is the Minister doing to get this programme back on track so that disabled people have the support they deserve and are contributing to the broader economy?
As I just set out to the hon. Member for Brecon, Radnor and Cwm Tawe (David Chadwick), there have been some problems with Access to Work, but it is this Government who are dealing with them. We have already put in resources, with a particular focus on individuals who are moving into work to make sure they get access to whatever support they need. Again, I am very happy to provide further details of what additional support we have put in, but it is this Government who are actually dealing with these problems and ensuring that people with disabilities and long-term health conditions have what they need to support them into work and to keep them in work.
Mr Lee Dillon (Newbury) (LD)
Phil Brickell (Bolton West) (Lab)
I thank my hon. Friend for his question on this important issue for the Government. Action to support families includes raising the national living wage, expanding access to free school meals and tripling investment in breakfast clubs. Removing the two-child limit in universal credit will benefit 1.5 million children across Great Britain, including over 2,500 children in Bolton West. We have also implemented the fair repayment rate for deductions from universal credit and announced a new £1 billion a year package to reform crisis support.
Phil Brickell
Almost 4,000 people with jobs in my Bolton West constituency still need universal credit to cope with the cost of living. Heating, water and food bills have been stubbornly high. What steps is the Minister taking to ensure that families in my constituency get the support they need to pay the bills?
We recognise that too many homes in England struggle to afford heating, and tackling fuel poverty is a Government priority. On 21 January, we published a new fuel poverty strategy, alongside the warm homes plan, to better protect fuel-poor households by 2030. At Budget 2025, we cut energy bills by an average of £150 and expanded the warm home discount, providing £150 rebate to a further 2.7 million low-income households.
Food and energy costs remain high, and a significant number of families are struggling—more than they ever have before—to try to make ends meet. Has the Minister given any consideration to matching the SNP’s Scottish child payment to ensure that more families with children can be kept out of poverty?
As I said, we lifted the two-child limit in the child poverty strategy. We know that will lift about 450,000 children out of poverty. Combined with all the other measures that we have set out, including on free school meals and so on, we think that about 550,000 children will be lifted out of poverty. That is against the backdrop of the 900,000 children who went into poverty during the time of the Conservative Governments from 2010 onwards. Of course, we speak all the time to the Scottish Government, and we will continue to have conversations about how we can deal with child poverty.
Daniel Francis (Bexleyheath and Crayford) (Lab)
Antonia Bance (Tipton and Wednesbury) (Lab)
Jobcentre Plus offers tailored, flexible advice and support to help individuals get into work and overcome any barriers to employment. Work coaches offer all claimants a comprehensive menu of help, including referral to skills provision and job search support. That can include referral to local ESOL provision.
Antonia Bance
I thank the Minister for her answer. I recently visited Tipton Jobcentre Plus, and I pay tribute to the great work of the staff based there in what is a really tough jobs market. They told me that they would value the ability to refer jobseekers to an intensive ESOL course, with the expectation that the jobseeker attends every weekday for a number of months, to tackle the key barrier to sustainable employment for many, which is a lack of English skills for work. Will the Minister consider engaging with our combined authority to pilot an intensive, mandatory ESOL intervention, to get locals into work and raise incomes in my area?
I thank my hon. Friend for her interest and her visit to Tipton Jobcentre Plus, and for her kind words about the staff there. Jobcentre Plus in Tipton has been reviewing local ESOL availability. It is welcoming work with the combined authority to look at expanding provision, to ensure that demand is met and so that more claimants can move into work.
Baggy Shanker (Derby South) (Lab/Co-op)
Josh Newbury (Cannock Chase) (Lab)
I meet my colleagues in the Health and Social Care Department regularly, particularly because of the important work that the joint work and health directorate is doing to get people into work and to support people with health conditions in work, including those with chronic mental health conditions. Our employment advisers in talking therapies specifically target people with mental health conditions.
Dr Simon Opher (Stroud) (Lab)
I pay tribute to my hon. Friend for the meeting that we had on this very subject just a few months ago and for raising the issue of how important it is to get people back into work. There are lots of good examples of GPs who are doing that around the country, and I look forward to seeing what more we can do to work with him and other GPs to ensure that we get as many people as possible back into work who are not in work at the moment due to ill health.
(3 months, 1 week ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure, as ever, to serve under your chairmanship, Mr Efford. I congratulate my hon. Friend the Member for Poole (Neil Duncan-Jordan) on securing the debate. He spoke with great passion and knowledge about how poverty affects the individual, the family and society at large. The real-world impact is where that really matters, as he just said.
My hon. Friend spoke in his maiden speech about the nearly 7,000 residents of Poole who struggle to cover essential costs from their monthly income. In his career in Parliament, he has continued to be a strong advocate for his constituents and for the disadvantaged in our society. He has rightly pointed out that poverty is both unfair and economically reckless, and that one of the most important legacies that we could achieve as a Labour Government is a massive reduction in poverty. My hon. Friend highlighted the devastation caused by 14 years of Tory Governments to the fabric of our society and the rising levels of poverty, in particular the cost of living that we inherited from the previous Government.
To start, I refer to the child poverty strategy, which was published only last month. Under the previous Government, a shocking 900,000 more children were added to the statistics for those living in poverty. The aim of our strategy is to lift 550,0000 children out of poverty by the end of this Parliament. It is rightly a cross-Government strategy, but welfare policies clearly play a crucial part, not least the lifting of the two-child limit. I am proud that we are getting rid of that cruel policy, which affects nearly 2,000 children in Poole, 6,000 children in the Poole, Bournemouth and Christchurch local authority area, and 1.5 million children in Great Britain overall.
I was touched when I spoke with several stakeholders, including the Trussell Trust, following the announcement of the removal of the two-child limit on Budget day, because they gave me the breadth and depth of insight that comes from working with those families day in, day out. Hearing their views of how the change will be felt on the ground was humbling and hugely helpful to me.
Our strategy builds on the urgent action that we have taken already to help families since we first entered Government, which has included expanding free school meals to reach half a million more families on universal credit, our new £842 million crisis and resilience fund to reform crisis support in England, expanding free breakfast clubs, and investing in Best Start family hubs to deliver early intervention and support for new parents. We recognise that tackling the causes of poverty and delivering an enduring reduction to child poverty will take time. That is why we have been clear from the start that this will be a long-term, 10-year strategy. We have put in place structures, including a monitoring and evaluation framework, and cross-Government ministerial oversight to ensure that the strategy will deliver and that we can build on its success in future.
We know that the welfare system needs continuous reform to ensure that it supports the people who need it and is a platform for opportunity. Our welfare system is not a museum; since its creation, it has adapted and changed as society has adapted and changed, in recognition of the new challenges we face.
I want to address some of the points that my hon. Friend made. As the Minister for employment, I will say a few words about employment. We know that employment plays a vital role in lifting families out of poverty and in securing better long-term outcomes for children. That is why supporting good work will always be the foundation of our approach, and it is backed by increasing investment for employment support to £3.8 billion by 2028-29, so that people have the help they need to move into and to get on in work. That includes our plans to reform Jobcentre Plus and create a new service across Great Britain that will enable everyone to access good, meaningful work, and support them to progress in work, including through an enhanced focus on skills and careers.
My hon. Friend also talked a little about in-work poverty, and we know that low pay is a key factor. Our plan to make work pay will help more people to stay in work and will improve job security and boost living standards. From April this year, the national living wage will increase to £12.71 an hour for workers aged 21 and over—an increase of £900 a year for a full-time worker on the national living wage.
Access to suitable childcare has for too long been a barrier to progression for many parents. That is why we will invest £9 billion next year in policies such as creating new school-based nurseries and, as I have just said, rolling out free breakfast clubs. A cross-Government review of childcare is also under way, because we recognise that the current system is very complex for parents to navigate.
We also want to go further, so that every parent who can work will be able to enjoy the benefit of rewarding, secure jobs that enable them to support their families. Our ambitious labour market interventions include our inactivity trailblazers in England and Wales, skills bootcamps and the adult skills fund, which will provide a step change in the support that parents receive to help them progress in—as well as move into—work.
Alison Bennett (Mid Sussex) (LD)
The Carer’s Leave Act 2023, introduced by my hon. Friend the Member for North East Fife (Wendy Chamberlain), was passed in the last Parliament. At the moment, carers in work are entitled to unpaid leave from work, which helps them to stay in employment. Does the Minister agree that making that leave paid would tackle the much higher levels of poverty among family carers and further help those people, particularly those on lower wages?
I am grateful to the hon. Lady for raising that point. I will take the opportunity to reflect on what she has said and write to her with a response. I will move on because I have only limited time, and there are quite a few other things I want to say.
My hon. Friend the Member for Poole also referred to welfare reform more generally. I reassure him that the “Pathways to Work” Green Paper builds on the principle that Government should support those who can work to do so, while protecting those who cannot. We have already made significant progress in bringing forward proposals from the Green Paper to transform the support that we offer. We are taking action to get the basics right and improve the experience for people who use the system of health and disability benefits, as set out in the Green Paper.
That includes exploring ways to improve trust and transparency in the personal independence payment and the work capability assessments, by reviewing our approach to safeguarding, recording assessments to increase trust in the process and moving back to more face-to-face assessments, while continuing to meet the needs of people who may require different methods of assessment. Of course, we also have the Timms review under way. As a result of our changes, there will be 50,000 fewer individuals in relative poverty after housing costs in 2029-30. That includes a reduction in poverty for both children and working-age individuals.
I want to mention universal credit and its adequacy, as well as the essentials guarantee that a number of Members have spoken about. We know that people are struggling, and we understand the critical role of universal credit in tackling poverty and maintaining work incentives. Since April 2025, our fair repayment rate has reduced the overall deductions cap from 25% to 15% of a customer’s standard allowance, allowing approximately 1.2 million universal credit households to retain more of their award for essential living costs.
We have also gone further by taking decisive action to address the basic adequacy of the universal credit standard allowance through the first sustained above-inflation rise in the basic rate of universal credit since it was introduced. That change will benefit millions of people when it is introduced in April, while maintaining the right balance between supporting those who need it, incentivising work and providing value for the taxpayer.
My hon. Friend also referred to the benefit cap. Removing the two-child limit is the fastest and most cost-effective way to reduce child poverty and will, on its own, lift 450,000 children out of poverty by the end of this Parliament. However, it is absolutely right that we balance maintaining a strong safety net for those who need it with encouraging personal responsibility and incentivising work wherever possible. Working people are much less likely to be affected by the benefit cap, which we will review at the appropriate time and as determined by the Secretary of State, in line with the statutory obligation to review the levels at least once every five years.
My hon. Friend gave the shocking statistic about a food parcel being handed out every 11 seconds. This Government absolutely agree that the number of people having to rely on food parcels is far too high, which is why we made a manifesto commitment to end mass dependency on emergency food parcels. As I have already said, our child poverty strategy and the crisis and resilience fund, along with renewed funding of £600 million for the holiday activities and food programme, will be a vital contribution to tackling such an important issue.
I am also working closely with the Department for Environment Food and Rural Affairs on this matter, and will meet with my ministerial counterpart at DEFRA tomorrow to discuss shared priorities. I would also be very happy to meet with my hon. Friend the Member for Liverpool West Derby (Ian Byrne) to discuss the work he is doing. I know he has a long-standing interest in food poverty.
In the few minutes I have left, I will talk about international comparators, particularly around state pensions. It is difficult to make meaningful comparisons between state pension schemes in different countries because there are many fundamental differences in the way they are run and operated. There are many factors to take into account, such as different tax systems, the cost of living, access to occupational pensions, the availability of other social security benefits and the provision of services and goods, either free to pensioners or available at a concessionary rate.
The UK pension system balances sustainability and adequacy with the foundation of a contributory state pension, on which private retirement savings can be built, as well as an income-related safety net for those most in need. Workers can choose to make voluntary contributions to private or occupational pension schemes to increase their retirement income.
Data from the OECD’s “Pensions at a Glance 2025” report shows that the UK’s public expenditure on pensions is lower than the average of other OECD countries. Furthermore, when Full Fact investigated the claim that the UK state pension is the lowest in the EU, it concluded that the comparison is not fair because of the differences between pension systems.
In closing, our manifesto committed to building on the legacy of the last Labour Government, which lifted more than 600,000 children and more than a million pensioners out of poverty. It promised to put good work at the heart of our approach. We are building a welfare system that is much more active in giving people opportunities not just to get by, but to get on in life.
Importantly, we are making sure these reforms are accompanied by our wider efforts to put in place the right opportunities, incentives and support—by creating good jobs, by making work pay, including through our landmark Employment Rights Act 2025, which will benefit more than 15 million people, and by overhauling employment support, so that people get personalised support to overcome the individual barriers they face getting into work. Through all those changes, we can turn the tide on poverty, making a real, lasting difference to people’s lives and building a fairer, more prosperous country.
Question put and agreed to.
(4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairship, Mr Twigg. I congratulate my hon. Friend the Member for Warrington South (Sarah Hall) on securing the debate and her powerful and eloquent speech. A number of excellent interventions made important points. I have noted them, even if I do not have the chance to respond to them all.
My hon. Friend has previously spoken about her ADHD diagnosis and her determination to use her platform to make Parliament, and politics more generally, more welcoming for neurodiverse people. I am pleased that she has given us the opportunity to talk about how we can achieve that in other workplaces across the country too. At the moment, only 34% of autistic people, for example, are in any sort of employment, compared with around 55% of disabled people overall. As a country, we can and must do better.
My hon. Friend is living proof that neurodiversity does not have to be a barrier to achievement, but as she has previously highlighted, the right support makes a huge difference, whether in education or the workplace. It is important that good practice becomes standard practice—not only does everyone deserve the chance to fulfil their potential, but a more inclusive labour market is a stronger labour market. I will endeavour to answer her questions, but if I miss anything, I am very happy to write to her with further details.
This January, we launched an independent panel of academics, chosen because of their expertise and lived experience of neurodiversity, to consider why neurodivergent people can have poor experiences in work and a low overall employment rate. I am grateful to the panel for their dedication and the evidence they gathered, which will help us—both the Government and employers—to understand how we can improve the workplace experiences of neurodivergent people. The panel was led by Professor Amanda Kirby, who I am pleased to be meeting tomorrow to discuss her recommendations.
I am also pleased to hear about the excellent work that unions have been undertaking in this area, the GMB and USDAW in particular, to expand the understanding of neurodiversity in the workplace.
Laurence Turner
One problem experienced by neurodivergent workers is that, when reasonable adjustments are put in place, the manager changes and they have to start again. The TUC did some very good work on a reasonable adjustments passport, as did the civil service unions. I encourage all colleagues to look at that work to see if it can be adopted more widely.
My hon. Friend speaks with great knowledge of this area. Showing our commitment to raising awareness of neurodiversity, ACAS will be offering free masterclasses to small and medium-sized employers in early 2026, which goes to the point that the hon. Member for Strangford (Jim Shannon) made about small businesses being able to access information.
As we all know, ACAS specialises in providing free, impartial advice on workplace rights, rules and best practice. Earlier this year, we worked closely with its campaign to improve understanding and support for neurodivergent workers. The new free masterclasses will go further, helping small and medium-sized employers to build confidence, acknowledge the skills and expertise needed to support neurodivergent employees, and address the challenges those employees can face, such as barriers in recruitment, workplace adjustments and retention.
We are also setting in motion a broader mission to deliver change through the “Keep Britain Working” review, led by Sir Charlie Mayfield, which represents a pivotal moment in our mission to create genuine opportunity for all, fundamentally reshaping how we support people to stay healthy, stay in work and build better futures for themselves and their families.
We know that successful businesses and healthy workers go hand in hand, and the vanguard phase of “Keep Britain Working” is seeking partnership with employers to establish what good looks like. “Keep Britain Working” recommends developing a healthy working life cycle of best practice accompanied by a certified standard. Although it is not condition-specific, it will include best practice for early conversations between employers and employees about specific needs, and supporting all parties to navigate making the best adjustments where reasonable.
We know that supporting employers is central if we are to see real improvement in this area. That is why, in addition to our work with ACAS, we also have a suite of measures in place to support managers. We want to start making changes to ensure that we are maximising the opportunities to create accessible and inclusive workplaces for all.
We continue to oversee the voluntary Disability Confident scheme, which encourages employers to create disability-inclusive workplaces, including for people with hidden disabilities. My colleague the Minister for Social Security and Disability is leading work to strengthen that scheme to help it realise its full potential.
My hon. Friend the Member for Warrington South raised Access to Work. We absolutely agree that it needs to work better, and we are doing something about that. We recently concluded the Access to Work collaboration committees, in which we engaged with a range of stakeholders, including representatives of disabled people’s organisations and people with lived experience, to provide discussion, experience and challenge to the design of the future Access to Work scheme. Although the committees have now ended, we will seek opportunities to engage with stakeholders as we move forward with policy development in recognition of the value of their input and experience.
I want to say a few words about the support in place for neurodivergent people who face barriers to getting into work. We know that disabled people and people with health conditions are a very diverse group, so the right work and health support in the right place at the right time is absolutely vital. We therefore have a range of specialist initiatives to support individuals to stay in work and get back into work, including initiatives to join up employment and health systems. They include our new voluntary, locally led supported employment programme for neurodivergent people, the Connect to Work scheme, which has a specialist pathway that is dedicated to supporting those facing particularly complex barriers.
In our jobcentres across England, Scotland and Wales, since August there have been more than 1,000 full-time equivalent Pathways to Work advisers, who provide one-to-one, personalised support to disabled customers and those with health conditions to help them move towards and into work. That intensive support aims to enable disabled people, including neurodivergent people, to gain access to employment, wider skills support and Department for Work and Pensions employment programmes.
My hon. Friend asked about strengthening the Equality Act duty. That is a matter for the Cabinet Office, but I am of course very happy to relay her points to ministerial colleagues.
My hon. Friend also raised diagnosis for neurodivergent people. The Equality Act is clear that an employee does not need a diagnosis to meet the definition of disability. Our digital support with employee health and disability service helps employers to understand these legal obligations. It includes guidance on making reasonable adjustments, and links to other helpful services and sources of guidance. It also includes questions of disclosure, equipping employers to feel confident in having conversations to better understand their employees’ needs.
We are deeply concerned that many adults, young people and children with mental health conditions, ADHD and autism have been let down by services and are not receiving timely or appropriate support and treatment. I am therefore very pleased to welcome the independent review, launched by the Secretary of State for Health and Social Care on 4 December, into prevalence and support for mental health conditions, ADHD and autism.
My hon. Friend the Member for Warrington South also asked about neurodiversity in the public sector. I absolutely agree that the public sector should lead the way in raising awareness of neurodiversity. I am pleased to say that more than 700 public sector organisations are signed up to the Disability Confident scheme, and that all main ministerial Departments have achieved Disability Confident leader status at level 3. We are also committed to ensuring that our frontline staff have the skills and awareness to support neurodivergent people appropriately. There is a range of other commitments in place, and I am happy to write to my hon. Friend about them.
My hon. Friend raised workforce data. Our main source of data is the annual population survey, which does not contain detailed breakdowns of neurodivergent conditions beyond autism and learning difficulties, so we have limited data on employment outcomes for specific neurodivergent conditions. I will write to my hon. Friend with further details about that.
On self-advocacy, my hon. Friend will be pleased to know that the new independent disability advisory panel will provide that lived experience and make sure that policies take it into account. Zara Todd was appointed the chair of the panel in August. I am keen to show that this Government are taking action. We hear what people are saying about the need to address the particular concerns of neurodivergent people.
Finally, I wish all hon. Members and House staff a very merry Christmas.
Motion lapsed (Standing Order No. 10(6)).
(4 months, 1 week ago)
Written Corrections
Mr Joshua Reynolds (Maidenhead) (LD)
It took the Government a year and a half to confirm that they were going to scrap the two-child benefit cap. What estimate has the Minister made of the number of children who, during that time, were unnecessarily kept in poverty because of it?
…The statistic the hon. Gentleman perhaps wants me to give is that I understand 100 children a week were pushed into child poverty through the two-child limit that the previous Government introduced in 2017.
[Official Report, 8 December 2025; Vol. 777, c. 9.]
Written correction submitted by the Minister of State, Department for Work and Pensions, the right hon. Member for Kingston upon Hull North and Cottingham (Dame Diana Johnson):
…The statistic the hon. Gentleman perhaps wants me to give is that I understand 100 children a day were pushed into child poverty through the two-child limit that the previous Government introduced in 2017.