Personal Independence Payments

Jim Shannon Excerpts

Wednesday 13th April 2016 Westminster Hall

[Ian C. Lucas]

I agree entirely.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing this debate. He is right that this is a massive issue. “Dispatches” highlighted the concerns that many people have about the PIP assessment. The same firm is contracted to carry out PIP assessments in Northern Ireland, where we have one of the highest DLA claimant rates in the whole United Kingdom because of the troubles. Like me, does he feel—perhaps the Minister will respond to this—that there is a great need for those who carry out the tests to have a higher level of competency?

[Ian C. Lucas]

The hon. Gentleman is absolutely right. There is clearly a major problem, and MPs are seeing that in their constituencies across the United Kingdom. The purpose of securing such debates is to draw to the Minister’s attention to the mistakes made by Government. All Governments make mistakes—mistakes were made under a Labour Government—and there is a real mistake in this particular case that he needs to address.

Construction Companies (Fatal Accidents)

Jim Shannon Excerpts

Wednesday 23rd March 2016 Commons Chamber

[Mr Stephen Hepburn (Jarrow) (Lab)]

I am pleased to have secured this debate on an important subject that is all too often ignored. Construction is the most dangerous industry in the UK. Indeed, the recent unplanned collapse and tragedy at Didcot power station highlighted the dangers faced by construction workers on a daily basis. Last year, 35 workers were killed. That is more than in any other industrial sector, but amazingly it was a record low for the construction industry. In recent years, there have been an average of 50 deaths a year in the construction industry—almost one a week. It is our duty to ensure that that level of loss of life does not continue.

To achieve that, we need a Health and Safety Executive that is effective and dedicated to protecting workers, but, sadly, the information that I have uncovered reveals that in the construction industry that is not occurring. Construction is an industry with inherent dangers, but it does not necessarily have to be inherently dangerous. Deaths and accidents largely occur because safety laws are deliberately ignored or flouted. Far too many companies involved in the construction industry are willing to break or bend safety rules to boost profits. In an industry where site organisation is low and there are not enough safety reps—partially as a result of the blacklisting scandal—it is imperative not only that the HSE does an effective job, but that it is seen to be doing its job effectively. Following a construction death, if a company or individual is at fault they must be prosecuted. The HSE’s own research found that in 70% of construction deaths, management failure caused or contributed to a worker losing their life.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland we take a proactive approach to this issue, and the Health and Safety Executive for Northern Ireland carries out surprise visits to construction sites to ensure that complacency does not occur. Does the hon. Gentleman agree that if we want to sharpen the construction industry up a bit and make it more effective and accountable, that is a way of doing it?

[Mr Hepburn]

That is also the policy on the mainland, but, as I will reveal, sadly it is not as effective as it used to be.

In 2007-08 the HSE was successful in prosecuting 51% of construction fatal accidents. By 2012-13 that figure had dropped to a mere—and disgraceful—35%. No blame should be placed on the legal system for failing to convict killer bosses. The HSE is successful in achieving a guilty verdict in more than 90% of all prosecution cases—an impressive figure. Put simply, if the HSE is failing to prosecute following construction deaths, and if there are not enough high-profile stories about the fines and penalties imposed on companies that cut corners to boost profits at the expense of a worker’s life, an ever greater number of companies will flout safety laws, safe in the knowledge that if a tragedy should occur they are unlikely to be punished. That is certainly not the end of my concerns about the HSE’s performance.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

It is a pleasure to respond to this debate. I congratulate the hon. Member for Jarrow (Mr Hepburn) on securing it and welcome the opportunity to respond to his concerns. I know he is very active in this area, having received several parliamentary questions on it in recent weeks, and that his interest is long standing.

The hon. Gentleman made a powerful speech. He rightly wishes to hold to account duty holders who fail to manage serious risks to their workers in the construction industry—failures that can give rise to indescribable suffering for loved ones. That is a desire we all share on both sides of the House. My thoughts go out to all the families of those tragically killed when working in the construction industry, particularly those recently affected by the catastrophic building collapse at the Didcot power station.

The House will be interested to hear that recovery operations on the debris pile of the collapsed structure at Didcot resumed at the weekend, with the aim of recovering the missing men as quickly as possible while ensuring that no harm comes to the recovery workers. HSE’s main role at Didcot is to investigate jointly with Thames Valley police the circumstances of the incident to find out what went so tragically wrong with the demolition process.

I tribute to the hon. Members for Rotherham (Sarah Champion) and for Swansea West (Geraint Davies) and my hon. Friend the Member for Wantage (Mr Vaizey), who have been very active throughout recent weeks making representations on behalf of their constituents. I formally put on record my thanks to all the professionals who have been working tirelessly to try to resolve this as quickly as possible, particularly for the families still waiting for conclusions about their loved ones.

The investigation of workplace fatalities is HSE’s top operational priority. Fatal incidents are investigated by HSE to determine the underlying causes; to learn lessons and prevent recurrence; to establish whether there have been breaches of health and safety law; and, if so, to hold those responsible to account though the criminal courts. HSE’s enforcement policy statement makes it clear that where a failure to comply with the law has caused death, the expectation is that a prosecution will result.

It is clearly in everyone’s interests—especially those of the bereaved—that fatal incident investigations and decisions about any prosecution proceed as quickly as possible; the hon. Member for Jarrow made that point very powerfully in his speech. However, some investigations can be complex, involving painstaking forensic analysis, interviewing large numbers of witnesses and examining the roles and interactions between a number of parties, including workers, contractors, suppliers, architects, designers and clients, some of whom may be based overseas.

[Jim Shannon]

We had an event in the last Parliament that HSE and the industry attended. An issue about equipment being up to the British standard was brought to our attention. Are checks regularly performed on safety equipment such as helmets to ensure it matches the British standard, as we believe it should?

[Justin Tomlinson]

I shall come on to the point about proactive inspections, which the hon. Gentleman raised in an earlier intervention. I shall cover this issue. Checking against standards is an important point to highlight.

Several factors can affect the pace at which fatal accidents are investigated before any prosecution can be brought to court. The police normally assume primacy for the investigation to identify whether serious offences, such as corporate manslaughter, are involved. This can take many months, or in some cases years, during which HSE is unable to initiate proceedings. The police and Crown Prosecution Service might be in charge of the case right through to any court cases.

In the majority of cases, once HSE has primacy, a prosecution cannot start until after the coroner’s inquest. This does not always happen quickly and sometimes further evidence emerges at an inquest and HSE has to make further inquiries. Once a defendant has been charged, it can take several months before the case comes to trial, especially if it is defended in the Crown court.

The hon. Member for Jarrow has publicly raised concerns that, on average, it takes nearly three and a half years from the death of a worker to the point at which those responsible are convicted. I questioned that when I became the Minister and had my first briefings. We all agree that we want this period to be as short as possible, and HSE works closely with its partner agencies, the Courts Service and its counterparts in Scotland, to minimise any delays.

HSE has a performance standard for completing investigations of fatal incidents within 12 months of receiving primacy. Currently, more than 80% of prosecution decisions for construction incidents meet this standard, and most take considerably less time. Indeed, half of HSE’s decisions to prosecute are made within two years of the date of a fatal construction incident, which includes any time during which the police had primacy and a coroner’s inquest decision was awaited.

HSE has signed the work-related deaths protocol with fellow regulators to ensure that investigations are completed and that any decision to prosecute is made as quickly as possible, taking into account the nature of the case. There is now a new practical guide for investigators, which should ensure that all parties work effectively together and that any prosecution is brought as soon as possible. Other than in exceptional circumstances, it should be no later than three years after the date of the death. To be very clear, HSE recognises the need to maintain pace in all these investigations.

I appreciate how the hon. Member for Jarrow has raised through parliamentary questions the important issues in this area. We need to make it clear, however, that there has been no fall in HSE conviction rates in recent years; conviction rates for those prosecuted for breaking health and safety laws in construction have actually risen in recent years from 92% to 94%. The number of HSE prosecutions being approved following fatal construction accidents is not falling over time and there has been no increase in the time taken to make a decision on prosecution. The average number of days between fatal incidents and prosecution approval over the last five years has reached a relatively settled position. Average figures can be heavily influenced by the fact that a small number of complex investigations take several years to conclude, but the HSE expects the average time for inspection between its taking primacy and a prosecution decision to continue to fall in future years.

In connection with the debate, I have asked the HSE to look again at the way in which such figures are presented, and to consider whether it would be possible to produce median figures so that we could see how long a typical investigation would take. However, we must remember that we would do a real disservice to those who have lost loved ones if we introduced an artificial pressure to speed up investigations at the cost of quality, increasing the risk of prosecution failure through inadequate evidence collection and failing to learn lessons.

The HSE fully recognises the important role that investigation, inspection and enforcement play in securing improvements. However, sustained improvement requires an integrated strategic approach. That includes ensuring that the legal framework and guidance are flexible and easier for small businesses to understand. I have received positive feedback on that, suggesting that there is much more engagement on their part. It also includes encouraging all players in the industry to play their part, working with industry and others to develop practical solutions, and encouraging industry supply chains to provide help and support for small businesses. That approach has contributed to a very significant reduction in the number of fatal construction incidents over the last 15 years, which is currently less than a third of the rate in 2000-01. I am sure we all welcome the fact that the number of fatal injuries fell from 5.9 per 100,000 workers in 2000-01 to 1.62 per 100,000 in 2014-15.

The hon. Member for Strangford (Jim Shannon) pointed out that the Health and Safety Executive for Northern Ireland makes surprise visits. That happens here as well, and rightly so, because it is vital to keep people on their toes.

Members have given various figures for the number of inspectors in the HSE’s construction division, so let me give the House the actual figures. In 2011-12, there were 196. In 2012-13, there were 193. In 2013-14, there were 184. In 2014-15, there were 180. In 2015-16, there were 187, and the HSE is in the process of recruiting more. The position is clearly relatively settled, and numbers are currently growing.

Construction work is, all too often, an unnecessarily high-risk activity. We know that the risks can be properly managed—I do not need to remind the House of the exemplary record that was achieved during the construction of the 2012 Olympic Park—but some duty holders still fail miserably. The HSE will continue to prioritise its investigation work in order to hold the right people to account for those who are harmed by construction work, and to do so as quickly as possible.

If the hon. Member for Jarrow wishes to know more about the HSE’s work, I—or HSE officials—would be happy to meet him to discuss the matter further with him, along with representatives of the Union of Construction, Allied Trades and Technicians. I thank him for raising this important issue this evening.

Question put and agreed to.

Under-occupancy Penalty

Jim Shannon Excerpts

Thursday 28th January 2016 Commons Chamber

[Justin Tomlinson]

That is absolutely the case.

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland 66% of Housing Executive tenants and 62% of all working-age housing benefit recipients are under-occupiers. Under the Fresh Start agreement accepted by all parties in Northern Ireland last year, it has been agreed that the moneys to offset the bedroom tax for Northern Ireland will come out of the Northern Ireland block grant. Has the Minister had any discussions with the other devolved Administrations to enable them legally to make similar decisions?

[Justin Tomlinson]

I have not, but that is something I will look at.

Disabled People: Support

Jim Shannon Excerpts

Wednesday 27th January 2016 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to participate in this debate, Mr Crausby. It was also a pleasure to hear the hon. Member for Bermondsey and Old Southwark (Neil Coyle) setting out clearly what many of us feel about the system that, with great respect, fails the people who need it most. That is what I feel and, in fairness, I believe that it is what everyone in the House feels.

The hon. Gentleman mentioned a number of charities and I will not give a roll-call of them, but they have also contacted me. More than 30, including Mencap, Macmillan Cancer Support, Parkinson’s UK, RNIB, the MS Society UK and Mind, have written to the Minister outlining their deep concerns at the cuts in support for disabled people. This is not the first time we have discussed this matter in Westminster Hall. A debate not long ago was initiated by the hon. Member for Blackpool North and Cleveleys (Paul Maynard).

A poll by Populus on behalf of charities found that 71% of people think cuts to welfare will make the UK a worse place for disabled people to live. How will the Government address that? The Minister is always gracious in his responses and I know he will provide some answers and information. Just 6% of people thought the Welfare Reform and Work Bill would make the UK a better place for disabled people. In other words, 94% did not think that. Whatever people say about statistics, that cannot be ignored—94% of people are not satisfied or convinced.

We all know there needs to be an effort to make public finances sounder and that we must be careful with the budget for which the House, particularly the Government, is responsible. All Departments are being made to tighten their belts, but it is clear that public opinion sees these latest reforms as an attack on some of the most vulnerable people in our society. I judge society by its attitude to those who are less well off. My duty in the House is to help vulnerable people to manage better and that is also the Government’s responsibility.

Despite great services, such as the Access to Work programme, the proportion of people with a learning disability in paid employment has remained stubbornly low and, according to Mencap, which represents people with learning difficulties, seems immune to economic factors. That is worrying for us all. Indeed, the proportion of learning-disabled people known to social services in paid employment fell from 7% in 2012-13 to 6.8% in 2013-14, so there has been a fall. Perhaps the Minister will give us some idea of how the Government will respond to that and how they will directly address the issue.

The majority of people with a learning disability can and want to work, so let us encourage them and give them the opportunity. The figures are stark when the national employment rate of 76% is compared with an overall disability employment rate of just below 50%. In the Conservative party’s manifesto, the Government pledged to halve the disability employment gap. I am sure the Minister will say how the Government are trying to meet that manifesto commitment. Welcome moves have been made to realise that commitment, but the facts show that more needs to be done and more action needs to be taken.

In Northern Ireland, we have a scheme to help to reduce the disability employment gap. In addition to the Access to Work programme, Workable (NI) is delivered by a range of providers contracted by the Department for Employment and Learning. The matter is devolved. These organisations have extensive experience of meeting the vocational needs of people with disabilities. Using them is a great way of advancing social enterprise and supporting the sector. Sometimes, it is necessary to innovate, to be different and to think outside the box. The Minister is aware of our scheme and what we do, so I respectfully ask whether the Government are considering it for the mainland. If they are, it would be good news. Perhaps the Government will look at how the devolved Administrations are working to assist disabled people into work and at the solutions to the long-term problem that can be shared across the United Kingdom’s institutions of government.

On the face of it, these changes look completely contradictory to the Government’s manifesto promise and are seen not as a genuine attempt to put more disabled people who can work into work, but as an ideologically driven policy. The Minister will give us statistics, which I am keen to hear, but the cuts are at risk of doing the exact opposite of what they are designed to do. Disabled people already find it much harder to get and keep jobs and to access employment compared with non-disabled people. Their chances will be even less if they are unable to pay telephone or broadband bills, or afford smart clothes and transport to interviews or the jobcentre. Those are all necessities for job searching and they will be even harder to afford when the cuts have been made. When someone goes for an interview, presentation is so important. Employers know that, as do MPs who see people who come to us for jobs.

Some £640 million will be saved by 2020-21, but should we really be targeting vulnerable groups to make savings in public finances? It is already hard enough for ESA recipients to survive on £5,300 a year. Expecting new claimants to be more likely to find work on £3,800 is, with respect, nonsensical. In addition to these cuts, Department for Work and Pensions data show that between 2011 and 2015 the number of jobcentres employing a full-time advisor to help disabled people fell by over 60% from 226 to just 90, with reductions in every recorded year.The reduction in jobcentre disability advisers is surely contradictory to the Government’s commitment to reduce the disability employment gap. The effects of those cuts to services need to be closely monitored to ensure that they are not having an adverse effect on the efforts to reduce disability unemployment.

I will conclude, Mr Crausby, because I am conscious of what you said about keeping contributions to seven minutes. The Government need to look again at the proposals and ask whether this is really the right approach to getting more disabled people back into work, especially when such a plethora of stakeholders are making it clear that the proposals will have the opposite effect to what is intended. That is the opinion of those who are at the coalface and know what is happening; they have concerns. We want the number of disabled people in work to increase, but cutting ESA will only make it harder for disabled people who can work, to find work; and ultimately all the savings will be hindered by the increased payment of benefits when disabled people who want to work simply cannot afford to go on the job hunt itself.

Universal Credit: North-West

Jim Shannon Excerpts

Wednesday 13th January 2016 Westminster Hall

[Graham Evans]

As always, the hon. Gentleman makes a powerful point. I am not saying that the system is perfect. Under the Labour Government, the welfare system was very complicated. In the previous Parliament, the Government tried to make it simpler and fairer for people in receipt of welfare while also making it fairer for the people who pay for it—hard-working taxpayers. Not for one minute am I saying that the system is perfect, but the people who work in Jobcentre Plus tell me that universal credit makes it a lot easier and simpler for them to help people, particularly the long-term unemployed, to get into work. That is the evidence in my constituency.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Gentleman give way?

[Graham Evans]

May I make a bit of progress first? I have actually got a speech here.

Everyone with the ability to work should be given the support and opportunity to do so. The previous system wrote too many people off for too long, and too many people were left in a cycle of welfare. The point behind the reforms is to break that cycle. The roll-out of universal credit will fundamentally transform the welfare benefits system in Britain and the north-west, making 3 million people better off and bringing £33 billion in economic benefits to society. Universal credit will simplify and streamline the welfare system, improve work incentives, tackle poverty among low-income families and reduce the scope for error and fraud.

The hon. Member for St Helens South and Whiston gave some powerful examples. I am not saying that errors do not happen; of course they do. Things are not perfect, but other nations around the world are looking at the welfare reforms that the previous Government introduced and are considering doing the same. Since the introduction of universal credit, unemployment in the north-west has fallen by 50,000—more than 30%. Unemployment in my constituency has more than halved in the same period. While that fall cannot be solely attributed to universal credit, its roll-out has had a part to play in that success, and it will continue to play a major part in entrenching that success as the roll-out continues.

[Jim Shannon]

The hon. Gentleman is making powerful points, but I am sure that he recognises the concerns of those of us on this side of the Chamber. Government Members may share those concerns, to be fair. Society is marked by its attitude to those on low incomes and the less well-off. In this House, we have a duty to them as well as to taxpayers, who provide income. Does he accept that universal credit is causing undue delays for many of my constituents and those of other Members in the Chamber? There is a knock-on effect on those receiving benefit with the changes to their income tax, tax credits and housing benefit. Some people are without money for periods of seven, eight, nine or even 10 weeks. There has to be something wrong with a system that cannot respond to the needs of those on low incomes when they need it most.

[Graham Evans]

I am most grateful to the hon. Gentleman. There is a lot of evidence that delays are there, and those delays are unacceptable for the individuals concerned. I will not attempt to defend that. The system is not perfect, but any individual cases should be brought perhaps to the attention of the Member of Parliament, but certainly to the attention of Jobcentre Plus and the benefits agency. Those cases should be looked into and investigated.

People claiming universal credit are 13% more likely to be in work than people claiming jobseeker’s allowance. They are earning more money and are more willing to take a job. One constituent of mine, a hairdresser, was complaining. She said, “At this time of year, I usually get a rebate on income tax, but because I now have a far better personal allowance, I do not have that problem.” She is keeping more of her hard-earned money. That is what the Government are helping the lowest-paid to do.

Employment has been the Government’s real success. A thousand jobs were created each and every day during the last Parliament. That represents 2 million jobs over that period. The Office for Budget Responsibility predicts that a further million jobs will be created over the next five years. This country is the economic powerhouse of Europe. Yorkshire is creating more jobs than France, and that is why so many people want to come here. We have good quality, well-paid jobs, and the living wage is being introduced. We have a far better working environment than many other countries in the European Union. That all indicates just how successful the Government have been at getting people off benefits and back into work. There are so many opportunities in all our communities, and it is important that we expose those opportunities to those looking for work.

Crucial to the Government’s success has been the support towards childcare costs for parents, as my hon. Friend the Member for Congleton (Fiona Bruce) pointed out. Under universal credit, there is additional cover for childcare costs for parents, with up to 70% of childcare costs covered regardless of hours worked. That will be increased to 85% this year, with a monthly limit of £646 for one child and more than £1,000 for two or more children, helping more parents into work. When my children were younger, I remember Mrs Evans saying, “It is pointless me going back to work because of the childcare costs.” I know that the cover for childcare costs is an important step forward in helping working mums to work longer and keep more of their money.

The ethos of “It pays to work” is built into the DNA of the Government’s reforms, particularly universal credit. I have no doubt that as universal credit is rolled out further, we will continue to see more and more people getting back into work. The hon. Member for St Helens South and Whiston referred to the region as a guinea pig, but I am comfortable and proud that the north-west has led the way. I was particularly pleased when universal credit started in my jobcentres in Weaver Vale, because it made a massive difference. I pay tribute to the hard-working staff at Runcorn and Northwich jobcentres for the fantastic work they do helping people back into employment. They are a great example of best practice, and their hard work was recognised by the Secretary of State for Work and Pensions when he visited the jobcentre in Northwich at the end of last year. He gave the staff an award for the number of people they had helped back into work. The staff at Northwich jobcentre have told me that the introduction of universal credit has made their job easier.

A lot of people come into Weaver Vale to work. As the MP, I am puzzled why people travel great distances to work in my constituency yet I still have unemployed people. One of my challenges is to get my constituents to take the jobs that are virtually on their doorstep. That is why, when I became the MP, I started my jobs and apprenticeship fairs. The fifth will take place next month. The first time I did it, there were a lot of unemployed people, but that number has halved over the past four or five years. It is the harder-to-reach people who are left. The companies that come to my jobs fairs are fine-tuning their job offers for people who perhaps have not been in work for a long, long time.

I was most privileged to have the John Lewis Partnership come into Northwich. I am sure Members will agree that Waitrose is a fantastic organisation. When it came, it said, “We will guarantee that 30% of interviews will be for local people.” That was only an interview, not a job, but it was so impressed with the calibre and the quality of the interviewees that it ended up with more than 50% of its employees being local people. Some of those people had been long-term employed, but Jobcentre Plus had worked with the local authority and Mid Cheshire College, training the people for job interviews, CV filling out and what retail employers are looking for. That was a great example of organisations working together to get the long-term unemployed working for the great company that is the John Lewis Partnership. That 50% figure is an achievement of which we can be proud. The reforms are transforming the lives of some of the poorest families in our communities and giving people the skills and the opportunity to get on in life and stand on their own two feet.

I am keen to move Weaver Vale—indeed, Great Britain —from a low-wage, high-tax, high-welfare economy to a higher-wage, lower-tax, lower-welfare country. I support the Government’s reforms in welfare and universal credit. The system is not perfect, but it is far better than that attempted by the previous Government. I believe it is working, as proved by the reduction in unemployment, the growth in wages and the quality of the jobs now available in this country.

Access to Jobs: Disabled People

Jim Shannon Excerpts

Tuesday 12th January 2016 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Mr Chope, may I ask how much time is left, so that the hon. Member for Wythenshawe and Sale East (Mike Kane) and I can divide it between us?

[Mr Christopher Chope (in the Chair)]

There should be ample time for you and the other hon. Gentleman who is seeking to catch my eye. The latest we can start the wind-ups is 5.47 pm, but we do not have to use all the time until then.

[Jim Shannon]

You have inspired me to speak longer, Mr Chope, but I will not; I will divide the time clearly between us. I thank the hon. Member for Wrexham (Ian C. Lucas) for bringing this debate to Westminster Hall. It is a really good subject matter and one on which we are all keen to participate. In my short speech, I will mention some good things that we do in Northern Ireland—I know this is a devolved matter, but it is good to exchange ideas about what we do in Northern Ireland and what is done here in the mainland.

Despite the great services that exist and the Access to Work scheme, the proportion of people with a learning disability in paid employment has remained stubbornly low—we cannot ignore that fact—and according to Mencap UK, which represents people with learning difficulties, that proportion appears immune to economic factors. There are clearly issues to be dealt with. I know the Minister is totally committed to that and that he has done great things. We respect him greatly, but I think we need to look at what we can do better.

The proportion of learning-disabled people known to social services in paid employment fell from 7% in 2012-13 to 6.8% in 2013-14. Some hon. Members have spoken about the good things that have happened in their areas, and when that is the case, that is good—let us recognise those. We need to exchange such ideas and make others aware of them. However, that fall in numbers happened despite the fact that the majority of people with a learning disability can and want to work. There is an eagerness and a keenness to work, and we should encourage it. The figures are stark if we compare them with a national employment rate of 76% and an overall disability employment rate of just below 50%. As hon. Members have said, the Government pledged to halve the disability employment gap. Indeed, that pledge was in Conservative party’s manifesto, and we recognise and welcome it. It is good to see a commitment to it—well done.

Although welcome moves have been made to realise that commitment, the facts show that we need to do a bit more. I know the Minister will respond in a positive fashion, and I look forward to his comments. The Government need to monitor the disability employment gap, identify the factors that are still preventing it from closing and preventing disabled people from having access to work, and take action on those factors. There are things that the Government can do.

Department for Work and Pensions data show—I say this respectfully—that between 2011 and 2015, the number of jobcentres employing a full-time adviser to help disabled people fell by more than 60%, from 226 to 90, with reductions in every recorded year. We cannot ignore that issue. We all know that the Minister is a very pleasant person who is approachable and who does his job well, but that fact needs addressing. Perhaps he can tell us what steps the Government have taken to address the fall in the number of jobcentre advisers, and how we can best help people who are disabled when they come looking for assistance and help. That reduction surely contradicts the Government’s commitment to reduce the disability employment gap, and the effects of that cut in services need to be closely monitored to ensure that it is not having an adverse effect on the efforts to reduce disability unemployment.

I will give an example from Northern Ireland, because it is always good to put in the mix what we have done back home. We have an additional scheme to help reduce the disability employment gap. As well as the Access to Work scheme, there is Workable (NI), which is delivered by a range of providers contracted by the Department for Employment and Learning. Those organisations have extensive experience of meeting the vocational needs of people with disabilities, and using them is a great way of advancing social enterprise and supporting that sector.

Workable (NI) is a two-year programme that helps people out of economic gloom, gives them support and hope and prepares them for employment. It tailors support to individuals to meet their specific needs. The provision can include support such as a job coach to assist the disabled worker and their colleagues adapt to the needs of a particular job, developmental costs for the employer, and extra training, including disability awareness training. Those are all vital factors for any and all disabled people who want to work.

As I said, I am a great believer that this great country of the United Kingdom of Great Britain and Northern Ireland is better together. We know that, and many of us would subscribe to it. Let us exchange the good points and good practice that we have in every region of the United Kingdom. Lessons can clearly be learned from the approach in Northern Ireland, and we can develop additional strategies here in the mainland to help make good the Government’s comment to halve the disability employment gap.

Social Security

Jim Shannon Excerpts

Tuesday 1st December 2015 Commons Chamber

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

I rise to speak briefly on this vexed issue because, quite simply, all that has to be said and can be said on the issue has been said. My hon. Friends and I have made our position abundantly clear on many occasions, but I could not let this statutory order pass without expressing my regrets. It is entirely regrettable that the role and responsibility of the Northern Ireland Assembly has been eroded and undermined as it has by the Government, by the DUP and by Sinn Féin.

It is not clear to me whether Sinn Féin and the DUP did not realise the implications of locking into the Welfare Reform and Work Bill in the legislative consent motion, or whether they did not care. That is the situation we are in. It is particularly odd when the DUP actually voted against the Bill in this House, but then signed up to it in the Assembly.

[Jim Shannon (Strangford) (DUP)]

I have listened with some incredulity to what the hon. Gentleman has said. Does he not accept that the Welfare Reform and Work Bill and the agreement for Northern Ireland represent a better deal for Northern Ireland than any other part of the UK has received? Indeed, the Labour party has already indicated its envy of the Northern Ireland deal, so will he not accept the good deal that we have—one that beats anywhere else in the United Kingdom?

[Dr McDonnell]

The hon. Gentleman makes a very good point. The difficulty about it is that the DUP would have settled for a lot less. DUP Members argued for less time and again. Quite simply, I agree. The SDLP feels that, although the deal has its merits in some places, there are big gaps in it in others. Quite frankly, what we need to ensure is that those gaps are filled.

Employee Pay (DWP)

Jim Shannon Excerpts

Wednesday 18th November 2015 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this matter to the House. The issue he has just mentioned is very important. Surely it is right to reward people as they progress and achieve goals and standards of knowledge and expertise, which is very important in the DWP, and move from one level to the next. Does he think that the Government should consider retraining people so that they can step up the wage scale?

[Chris Stephens]

I agree with that, because if there is a pay range and scale, there should be natural progression through experience and training.

With pay increases limited to 1% year on year, simply not enough money is available to create meaningful pay progression and give all staff some annual pay increase. The Treasury has consistently prescribed that any pay progression must be funded from the 1% increase and no additional funds have been made available. My first question to the Department is this: will the DWP change its attitude towards pay progression and allow employees to move up the pay grades and scales?

Let me turn to the increase in pensions and national insurance contributions. DWP staff are members of one of the civil service pension schemes and since 2010 members’ contributions to the pension schemes have been steadily increasing, averaging 3.2% by 2015. These increases have, effectively, eroded the value of the recent 1% pay rise. This has meant that DWP staff take-home pay now has hardly increased at all since 2012. DWP staff also expect to see an increase of around 1.4% in their national insurance contributions in 2016, when the new state pension comes into effect.

Some 40% of DWP staff are on tax credits. The DWP has told the PCS that 40% of DWP staff have to rely on tax credits to supplement their low rates of pay. This is clear evidence of how low pay rates are in the DWP. If the measures to reduce tax credits that were announced in the July Budget were ever to be implemented, there would be a significant impact on DWP staff.

The Government have made many public statements saying that employers should pay a living wage and not make their employees rely on tax credits to supplement low pay. It is ironic, therefore, that so many DWP employees are made to rely on tax credits because the Government will not pay their own staff a decent salary. Furthermore, the Government have justified tax credit cuts by declaring that when their employees lose their tax credits, employers will naturally pay higher wages. However, if the Government rely on tax credits to subsidise the low pay of their own workforce and they are unwilling to compensate these workers who stand to lose from changes to tax credits and the 1% pay cap, it is hard to see how other employers can be expected to practise anything different.

DWP pay is an equality issue. Some 69% of staff are female, predominantly employed in the lower grades.

--- Later in debate ---

[Justin Tomlinson]

I thank the right hon. Gentleman for his intervention, but all good things come to those who wait patiently. I am only part way through my contribution, and I have already addressed some of the points, but more is to come.

Pay and allowances are part of the total reward package. Employees also benefit from a package including a staff discount scheme, generous annual leave entitlement and a defined benefit pension scheme.

On the point about equality, DWP has one of the lowest gender pay gaps in Whitehall. It currently stands at 3.4%. Typically, it is rated at 5%. If an organisation or body is below 5%, they are making progress. The Department is committed to improve that further through the introduction of a range of measures including name-blind recruitment and female representation on senior recruitment panels. This is something that we take very seriously, and we are proud to be leading as a Department in that area.

Let me turn now to the future. The Chancellor of the Exchequer announced in this year’s Budget that the Government will fund the public sector workforce for a pay award of 1% for the length of this Parliament. Each year, DWP negotiates with PCS and other unions on their pay awards and that will continue for future pay deals.

[Jim Shannon]

Very quickly on that, can the Minister give us some indication of the wastage among the staff—those who move on to other jobs? I do not expect an answer now, but could he give me a response later? I ask my question because the hon. Member for Glasgow South West (Chris Stephens) referred to the wage increase for those in similar jobs in different companies. The increase in their wages was significant. I was wondering whether the Minister’s Department was holding on to its staff. If it is not, what steps is he taking to address that?

[Justin Tomlinson]

I will have to come back on those specific details.

The Chancellor also announced in the Budget earlier this year the very welcome introduction of a statutory national living wage for those aged 25 plus from April 2016. Our Secretary of State has long championed the principle that, if people work hard, they should be rewarded. He welcomed the introduction of the national living wage as

“perhaps the most significant measure in all the Budgets that I have listened to during my many years in this House.”—[Official Report, 9 July 2015; Vol. 598, c. 482.]

Young Jobseekers

Jim Shannon Excerpts

Tuesday 27th October 2015 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in the debate. I congratulate the hon. Member for Norwich North (Chloe Smith) on presenting her case in such a full and confident way. For the record, those of us on the Opposition side of the House are equally confident in our young people and we want to see them do well. That is a fact: the hon. Member for Gloucester (Richard Graham) should be careful with his comments, because many of us feel quite aggrieved by them.

Many of the innocent victims of unemployment are young people, who are feeling the pinch just as much as anyone else. These austere times are difficult for our young people, so we have to help them. That is what we are about. We are all committed to that—on the Opposition side as well as on the Government side of the House. Young people need sustained help.

While the economy continues to recover, some of our young people are not yet feeling the benefits. The debate is about young jobseekers and the Department for Work and Pensions, so we are highlighting the issues of those not currently getting the help that they need.

I am conscious that the Minister has responsibility for England and Wales—not for Northern Ireland, because this is a devolved matter—but I want to make a few comments. In Northern Ireland, the unemployment rate for April to June was estimated at 6.5%, yet 20% of young people were unemployed. Those are the facts for us in many parts of Northern Ireland. We have seen a decrease in the number of unemployed young people, but a large proportion of them are long-term unemployed, if I can say that about young people—if that is not an Irishism—and need an extra bit of help and assistance. I think the hon. Member for Norwich North made that point as well.

I am concerned about young people growing up in a nation where a fifth of them are out of work. We are trying to address that through further education courses that will prepare them for work. Of course, we can blame the economic conditions and say that the economy is rebalancing, but a fifth of young people are unemployed compared with just over 6% of people nationally. In Strangford, I have seen a decrease in unemployment, with the figure at about 4% now. The economy and other things are changing, so let us help those who need it.

We can point to examples in Europe and beyond of similar statistics. We can and do struggle with the global economy; there are some things that even the Minister cannot do, no matter how talented he may be, because of things that happen outside Great Britain that affect us at home. In my constituency, some of the growth industries include agrifood, construction, which is starting to turn again with houses being built, pharmaceuticals, insurance and light engineering. We have to address the issues affecting young people, however. Just the other day, I was given figures showing that a large number of young people are looking to leave Northern Ireland because the jobs there do not have the wage structure and prospects they would wish for. Opportunities further away are more attractive.

I am also concerned about young Protestant males—this was mentioned in a debate in another forum that I was at today—and those who do not achieve the educational standards they need; we must help them to get jobs. I suspect that that is a problem not just in Northern Ireland but in other parts of the United Kingdom—other Members will speak to that when appropriate. However, 20 years on from the first ceasefires we are still behind.

Today’s news about the deceleration of the British economy, led by a downturn in the manufacturing sector, is causing concern. We seem to be losing our manufacturing sector across the whole United Kingdom. That concerns both those of us on the Opposition Benches and Government Members, as it should. Output in the manufacturing sector has fallen by some 0.9%, meaning fewer quality careers in that sector and consequently diminishing opportunities for our young jobseekers. I am not sure how the Minister can address that issue, but I would like to hear some ideas. The Government are going to roll out their new earn or learn scheme. Will he comment on that new initiative?

The Department for Employment and Learning in Northern Ireland has announced some 300 new places in education to prepare for jobs in engineering. We need good partnership between business, manufacturing and so on; those partnerships can lead to a strong economy—that is the change we are seeing. We need new apprenticeships as well, and we need those jobs for young men and young girls on an equal basis. Things are changing, but there is still much to be done. Let us continue to encourage our young people—that is what this debate has done—to strive for better. In turn, they will be able to have confidence in a safe future.

Welfare Benefit Changes

Jim Shannon Excerpts

Wednesday 14th October 2015 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Mr Pritchard. It is interesting that those in the Chamber are from the Opposition Benches, although the Minister is present as well. I am pleased to see him and I look forward to his contribution. We are concerned about tax credits and such issues, but whatever we say is not meant against him—it is not a personal attack. I want to put that on the record.

I am in the Chamber because I am concerned about the impact of changes to welfare benefit—tax credits, specifically. Recently we have heard a lot about that in the news and the Leader of the Opposition asked about the issue during Prime Minister’s questions today. The news has been full of stories about tax credits so I want to touch on them; they are vital to people in my Northern Ireland constituency where, as of April 2015, 6,500 were in receipt of tax credits. Of that number, 4,500 were in work and 2,000 were not.

Such figures speak for themselves. The majority of people receiving tax credits are in hard-working families on low incomes, and they need some extra help to get by. What worries me, however, are—I will say this with respect to the Prime Minister’s reply today; he mentioned the increase in those who will be tax exempt—those in the £10,000 to £11,000 bracket. If tax credits are taken from them, they will feel the pain more than anyone.

Of the 4,500 in work and in receipt of tax credits in my constituency, 2,500 received both working tax credit and child tax credit, 1,300 received child tax credit alone and only 700 received working tax credit alone. As a clear result—this, too, was mentioned by the hon. Member for Swansea East (Carolyn Harris) in her introduction—the Institute for Fiscal Studies estimated that the number of children living in poverty increased over the past three years from 2.3 million to 2.5 million: 200,000 more children in poverty, which is massively worrying. The IFS also estimates that the reductions in tax credits will see that figure rise to 2.8 million. Think about that number of children in poverty for one minute—up from 2.3 million to 2.8 million, 500,000 more in child poverty.

Only last month, I spoke about the importance of eradicating child poverty; it now seems like an ever-intensifying and uphill battle, in particular for those struggling to make ends meet. We must also bear in mind that two thirds of children living in poverty in the UK are from working families, which makes the situation much harder, especially given that the cuts could reduce working family incomes by an average of £1,400 per year—someone today mentioned that the figure could be £1,800. Certainly there will be a large reduction in the income of such families.

I have said it before and I need to say it again: the financial changes will make a huge difference to everyday folk on the street. The number of people coming into my office to get food bank vouchers has increased so much in the past year and indicates the trend. I have always felt that food banks contribute greatly to our society, bringing people together to contribute and to help those less able to look after themselves. By that very nature, food banks are positive—I want to put that on the record—but the fact that so many people are using them is another case entirely.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I am told that in Birmingham the fourth largest category of people using food banks is those in work. Is it not a condemnation of Government policy that they have driven working people into the arms of charities?

[Jim Shannon]

I thank the hon. Gentleman for that. Unfortunately, that is probably the norm in my constituency as well. We are not seeing anything different anywhere else in the rest of the United Kingdom of Great Britain and Northern Ireland.

We cannot be completely in shock about the cuts, given that such benefits make up nearly 40% of welfare spending, just shy of £30 billion. To put that into perspective, that is a lot more than the £2.5 billion that the Government spend on jobseeker’s allowance. It has been estimated that the cuts will save the country £5.37 billion a year by 2019. Given the huge hole in the budget we need to try to fill, that will certainly be a start, but I must ask the Minister: are we punishing hard workers on low wages to do that? I fear that we are.

The Government and we as a nation pride ourselves on helping those who help themselves, but we must bear in mind the reality for many: although they work extremely hard, they simply do not earn enough to make ends meet. That is the sad reality and this vulnerable group in society will be hit extremely hard—unbearably hard, in many cases.

According to the Institute for Fiscal Studies, 3 million families will be £1,000 a year worse off following the new cuts. Those are the figures, so it is hard to equate that with saying, “Actually, things are going to be better,” when all those who know tell us that clearly they will not. It has been claimed that families will be £20 a week better off because of the rise in the minimum wage and the cut in income tax. However, the IFS says it is “arithmetically impossible” for families not to be hit by the cuts. The Prime Minister has already conceded that different families will be affected in different ways. Unfortunately, it seems that, for the majority, the figures will be working against them.

[Mark Durkan (Foyle) (SDLP)]

The hon. Gentleman has referred several times to the Institute for Fiscal Studies and its observations on the overall impact. It has not given a regionalised profile of the impact, but it would do so if asked. My party has proposed at the Stormont House talks for it to be asked to provide exactly those projections on the situation in Northern Ireland. Given that he is so committed to quoting the IFS, will he encourage his party leadership for once to support that request, so that, when we discuss welfare reform, we can know what we are talking about? It is not enough for him to say that he opposes welfare reform here when his party colleagues vote for it in the Assembly on the basis that “a big boy made me do it.”

--- Later in debate ---

[Jim Shannon]

I am quite happy to go into the political decisions. My party is in the Stormont House agreement and, since the hon. Gentleman brought the matter up, I will reply to that. The Stormont House agreement—[Interruption.]

[Mark Pritchard (in the Chair)]

Order. I gave some latitude to Mr Durkan, but I do not want to encourage discussion of that point any further. That is a Stormont issue rather than a Westminster one.

[Jim Shannon]

I am happy to reply to the IFS question. I have no difficulty with this. My politics are well known in this House. I am left of centre; I am interested in the person who needs help. That is my politics; that is where I come from and who I am. For me it is no bother whatever to ask the IFS to give those figures and I will make it my business to do so. I am as committed to opposing these austerity measures as the hon. Member for Foyle (Mark Durkan). However, my party has a realistic outlook and keeps that in mind.

How can I stand in this House today and not be an advocate for those in need in my own constituency? I am aware that there are those who take advantage and play the system, but I am also aware that a great number do not. It is for those people that I stand here today.

Cuts to tax credits are not the only problem that people on benefits face. There are a great many others that I have mentioned before. In my office I have a number of members of staff specifically trained to help people fill in forms for the disability living allowance, which is soon to change to the personal independence payment. I see those people every day and I am aware of their difficulties. They have benefits for a good reason. There are people who need extra financial help to pay for carers or more bedding and other resources while they cater for the day-to-day needs of their family, which they need help to do as well. It is not a matter of living it up and not working; it is a matter of just living. Sometimes it is a matter of being ill and needing help. We have a responsibility to these people and I thought that was what being part of the United Kingdom meant. That is what I thought it was to be British.

I am conscious that I need to allow time for others to speak, but in concluding I want to mention the tragic case of Michael O’Sullivan—we all know it. He killed himself after being found fit for work by the Government’s disability assessors. That case has briefly cast a welcome spotlight—if I can say that—on the utter disgrace that is the work capability assessment in relation to people with mental health problems. Despite providing reports from three doctors, including his GP, stating that he had long-term depression and agoraphobia and was unable to work, Michael O’Sullivan was taken off employment and support allowance and placed on jobseeker’s allowance. At the inquest last year, it was found that he killed himself as a direct result of that decision. According to the coroner, Mary Hassell,

“the intense anxiety which triggered his suicide was caused by his recent assessment by the Department for Work and Pensions as being fit for work and his view of the likely consequences of that”.

That cannot be allowed to happen again.

I fear that cuts that affect the people who are most in need could cause real difficulties for an even larger number of people. With that in mind, although I respect the Minister’s position, I have to put on record my honest, sincere issues and concerns with tax credits on behalf of my people in Strangford, who also share those concerns.