Cost of Living Support

Jonathan Ashworth Excerpts

Tuesday 20th June 2023 Commons Chamber

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

I thank the Minister for advance sight of his statement, but let us be clear: he has come to the House today and is asking us to congratulate him on this payment when, after 13 years, the number of disabled people living in poverty is up by over 1 million. He is asking us to congratulate him on this payment when, almost every day now, we hear stories of disabled people cutting back on hot meals, showers and washing their clothes, because otherwise they would not be able to afford to use the equipment that helps them get by in life. He is asking us to congratulate him when, after 13 years of Conservative Government, child poverty is up by 600,000 and pensioner poverty is up by 400,000. He is asking us to congratulate him when we have a cost of living crisis now so severe that the Joseph Rowntree Foundation today reports that nearly 6 million of the poorest households are forced to skip meals and 7 million of the poorest families are going without food, heating or even basic toiletries.

The Minister talks about employment, but there are 2.5 million people out of work for reasons of sickness or disability. The working-age disability benefit bill is going to go up to around £25 billion, but many people out of work want to work. That is why we proposed an “into work guarantee” welfare reform to help people to move off sickness benefits and into work. Instead of offering help now to people out of work, the Government are actually cutting disability employment advisers by 10%. Because the Government are failing to do their part in helping to tame inflation, disabled people in work and families are seeing the value of their wages ravaged by inflation. In fact, the value of this disability payment is worth £5 less in real terms than when the Chancellor announced it in the autumn statement because of inflation.

The Government are failing to play their part in helping to tame inflation. When combined with them running the economy off the cliff last autumn, policies that led to turmoil on the markets and a run on pension funds, that means that thousands of disabled people, thousands of working families and even pensioners are living in fear of the letter they will soon be getting this year telling them it is time to remortgage. Disabled people and families are facing hundreds or indeed thousands of pounds more on their refinanced mortgage over the coming years, with 1.3 million homes this year collectively paying £10 billion extra on mortgages—a Tory mortgage premium. Disabled homeowners and families are paying the price—literally paying the price—for 13 years of Tory economic failure. So my question is very simple: when so many disabled people and so many families are facing more on their mortgage because of decisions taken by this Government, how on earth does the Minister expect them to cope?

[Tom Pursglove]

I obviously appreciate the shadow Secretary of State taking the time to come to respond to this statement today. On the fundamental point of supporting people properly, I do not think that there is disagreement between us. We disagree on the detail of this and I think it is substantial and significant that, as I set out earlier, we are providing £94 billion of comprehensive cost of living support to people over 2022-23 and into 2023-24. That is structured support that is hitting people’s bank accounts in the way I have described, including the latest tranche of support through the disability cost of living payment, but there is also the discretionary support that can be provided through local authorities to meet the needs that exist, where they do not necessarily neatly fit into those structured support packages. That is significant support and he should welcome it.

I was very interested to hear what the shadow Secretary of State had to say about our employment-related measures. I would be absolutely delighted if he were to come forward and welcome the structural reform that this Government are determined to make to help to support more disabled people and people with health conditions into work, removing the jeopardy they feel around the benefit system to smooth that journey.

There is also the tailored support that we want to provide alongside that to improve the journey through the system and to unlock people’s aspirations—namely, universal support, that tried and tested supported employment model through individual placement and support in primary care in the first year, but growing beyond that. That is welcome support that will identify people’s needs and support them on a case-by-case basis to meet those objectives, with of course all the benefits that that brings, as well as keeping people well in work.

The Work Well partnerships are building capacity alongside NHS services. They are meaningful interventions on the supply side that this Government are making, and I think they are to be welcomed. It would have been nice for him to welcome the structured and more permanent support that we want to provide to help people to live more fulfilling lives, with employment at the heart of that.

The shadow Secretary of State also said, effectively, that the United Kingdom stands alone in these challenges. That is absolutely not the case. I was at the United Nations last week representing our country and it is fair to say, from many of the conversations I had with others, that the challenges we are facing are repeated in their countries—not just in Europe, but much further afield. For example, in the US, the Federal Reserve has increased rates at the fastest pace since the 1980s and in Europe interest rates are at their highest level in more than two decades. What we will do is take a responsible approach. The Chancellor of the Exchequer set that out in questions just now. What we will not be doing is making unaffordable spending pledges that will simply lead to higher rates in the long term. That is not the way to address these issues effectively.

On the specific issue of mortgages, again, we must not do anything that only fuels the challenges that households face. We have made a number of changes, including through support for mortgage interest and the scheme around that. For example, from April this year, claimants can be eligible for SMI from three months instead of nine. We have also abolished the zero earnings rule to allow claimants to continue receiving support while in work and on UC. The interest rate we pay is based on the Bank of England-published average mortgage rate, which increased from 2.09% to 2.65% on 10 May 2023. We of course continue to have important and receptive engagement with lenders about that support.

What is clear is that the Opposition have either no plan or an uncosted plan. The latter would simply fuel inflation and make matters worse. In contrast, what we will get on and do is provide the support that we have outlined, which is comprehensive and is meeting people’s needs, but of course we keep that package under constant review. We are also focused on our fundamental mission, which is to bring inflation down in the way we have described.

Oral Answers to Questions

Jonathan Ashworth Excerpts

Monday 19th June 2023 Commons Chamber

[Mr Speaker]

Order. May I remind the Secretary of State that these are topical questions? Questions and answers are meant to be short and punchy. We are getting carried away. Let us see how it works now: I call the shadow Secretary of State.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

I listened to the “Chopper’s Politics” podcast recently. The Secretary of State was the guest, and revealed that he was saying to his friends in their 50s who were not working:

“Why don’t you just go and serve in the local restaurant or do something in the pub?”

Well, a very prominent 59-year-old has just taken early retirement. Will the Secretary of State be voting to sanction him, or is he advising him to just go away and work in the pub?

[Mel Stride]

I am happy to meet the right hon. Gentleman in any pub that he cares to name, and I am sure we will have a very convivial evening. I did also mention people with accountancy qualifications, among others, so it is not all about the pub, alas.

[Jonathan Ashworth]

The House will have noted that the Secretary of State did not tell us whether he would be sanctioning that particular 59-year-old in the House later today. As for the issue of economic inactivity, he will know that we need to do more to get the long-term sick and the disabled back to work. The working-age disability benefit bill is going to rise to £25 billion—it was £19 billion before the pandemic—but in the last 12 months the DWP has cut the number of disability employment advisers by 10%. Why is that?

[Mel Stride]

When it comes to the long-term sick and disabled, the right hon. Gentleman is right that that is the one cohort where inactivity is increasing—in others it is reducing. He will be aware of our White Paper and the forthcoming legislation we have planned to make sure that we focus on what those who are long-term sick can do in work, rather than what they cannot. He will be aware of universal support and the working well pilot, all of which, together, will help to bring those numbers down.

Oral Answers to Questions

Jonathan Ashworth Excerpts

Monday 24th April 2023 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the shadow Secretary of State.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

The Minister’s proposal to essentially collapse the work capability assessment into the PIP assessment means that up to 1 million people who have fluctuating health conditions, or who may be recovering from treatment, could lose out on up to £350 a month. That is causing considerable distress, and it will not actually get anyone back to work now. Why does he not adopt instead the policy that we have put forward, which is supported by the Centre for Social Justice: to change the work capability assessment rules and offer an “into work guarantee” for those with no work requirements? Is he content to leave 700,000 sick and disabled people who want to work blocked from journeying into work?

--- Later in debate ---

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the shadow Secretary of State.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

The Minister has just said that the DWP did not assess the reasons for which people are using food banks. Perhaps she will go back to her private office after this and ask her officials to look into whether people are using them because the Government cut universal credit by £20 a week, and cut it in real terms last year. Perhaps she could ask her officials whether it is because the DWP is taking deductions from universal credit payments every week. Perhaps she could ask the DWP if it is because earnings are worth less than they were in 2007. Perhaps she could ask the DWP whether it is because the Government have raised the taxes on working people. Perhaps she could ask the DWP whether it is because the Government crashed the economy and sent mortgages and rents through the roof. Perhaps she could ask the DWP whether more people are using food banks because that is the price of 13 years of economic failure.

[Mims Davies]

May I remind the hon. Gentleman of Labour’s 10p tax rate, and the fact that we have doubled tax-free allowances? [Interruption.] Food banks are important. They are independent charitable organisations where people in local communities can support each other. [Interruption.] This is a great example of the generosity of spirit in our communities. [Interruption.] If this mattered to the hon. Gentleman, perhaps he would listen to my response rather than chuntering from the Front Bench.

I remind the hon. Gentleman that we take the issue of food security very seriously. That is why we added the internationally used food security questions to the “Family Resources Survey: financial year 2019 to 2020”. The new statistics on usage will help the Government to understand more about the characteristics of the people who are most in need, and we will continue to do what we pledged to do and are proving to do in supporting the most vulnerable.

State Pension Age: Review

Jonathan Ashworth Excerpts

Thursday 30th March 2023 Commons Chamber

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

I thank the Secretary of State for advance sight of his statement and thank Baroness Neville-Rolfe and the Government Actuary for their reports.

The Opposition agree that it is not the right time to accelerate a rise in the state pension age, although I note that five years or so ago the then Secretary of State announced that it was explicit Government policy to bring forward the increase in the state pension age to 68 between 2037 and 2039. When objections were raised on the grounds of life expectancy trends, the Government said that such objections were irresponsible and reckless. They told us that bringing forward an increase was necessary for the long-term sustainability of the public finances. Now it turns out that, with a general election only a year or so away and the Government trailing so badly in the polls, abandoning the accelerated rise in the state pension age is not so reckless and irresponsible after all.

Can the Secretary of State confirm whether the review he has announced will still consider bringing forward an increase in the state retirement age to 2037? Does that remain the Government’s policy ambition, or is that now abandoned?

The Secretary of State cites life expectancy trends. It is certainly true that our trends were hit hard by the pandemic, but that is because life expectancy improvements were slowing before the pandemic. The life expectancy gap between the richest and poorest communities was widening before the pandemic, and—disgracefully and shamefully—in around one in five of the poorest areas for women and one in nine of the poorest areas for men, life expectancy went backwards from 2014 to 2019. He should have acknowledged that today.

The ongoing stalling of life expectancy is out of kilter with many of our European competitors. It is much more dramatic and it means that, in a city such as Manchester, Middlesbrough or Liverpool or a town such as Blackpool, life expectancy for men is nine to 10 years lower and for women eight years lower than in the wealthiest parts of Chelsea or Westminster. In Glasgow, as The Sunday Post recently warned, one in four men will die before their 65th birthday. That is a quite shameful record.

Why do the Government think, after 13 years, life expectancy trends have become so dismal in the United Kingdom? It is not just because so many more people are waiting for treatment in the NHS, or cannot access health check-ups for blood pressure, cardiovascular disease or cancers. It is not simply because smoking cessation services have been so cut under this Government. It is not simply because mental health services are overwhelmed, addiction services have been cut back and we are now seeing the phenomena of deaths of despair in the UK. It is not simply because social care provision has been so savaged. It is also because poverty makes people ill quicker and it means people die sooner.

After 13 years, wages are stagnant and jobs insecure. Too much housing in the private rented sector is damp and squalid. Today, there are 400,000 more pensioners in relative poverty, 1 million more children in poverty and half a million children destitute, without a bed to sleep in tonight or a hot dinner in their stomach, after 13 years of the Conservatives.

Today’s announcement that the Government are not going ahead with accelerating the state pension age rise is welcome, and it is the right decision, but it is the clearest admission yet that a rising tide of poverty is dragging life expectancy down for so many. Life expectancy that is stalling—even going backwards in some of the poorest communities—is a damning indictment of 13 years of failure, which the Minister should have acknowledged and apologised for today.

[Mel Stride]

I am glad that the right hon. Gentleman has broadly welcomed the decisions that I set out in my statement. I will address a couple of the points he raises. On poverty and, as we are particularly focused on pensioners, pensioner poverty, the situation has improved. The poverty situation has improved right across the board since 2009-10, with some dramatic reductions to both absolute and relative poverty levels across that period, not least because of the policies pursued by this Government. He suggests we are something of an outlier in terms of the flattening of the increase in the expectations of length of life in future. That is simply not the case; as I said earlier, it is an international phenomenon.

The right hon. Gentleman raised a couple of questions I would like to address. First, he asked whether a move of the rise of the pension age to 68 was possible, along the lines of the Cridland recommendations of 2037 to 2039. Given we have made a commitment to a 10-year notice period, that would suggest that, if the next review —and I say if, because that is for others to decide in the course of time—were in, say, 2026, that would indeed make those dates possible. Of course, it would not preclude decisions being taken for dates further out than 2037 to 2039.

Secondly, the right hon. Gentleman asks what our policy is at the moment. We are very clear what our policy is: the current legislative position is appropriate, but there will be a review within the first two years of the next Parliament.

Social Security (Additional Payments) (No. 2) Bill

Jonathan Ashworth Excerpts

Committee stage
Monday 6th March 2023 Commons Chamber

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

On behalf of the Official Opposition, I thank the Clerks and the Bill team for their support. While it is always a delight to see you in the Chair, Mr Deputy Speaker, I think I speak on behalf of the whole House in saying how delightful it was to see the Chairman of Ways and Means back in her rightful place. She chaired our deliberations with typical skill and good humour.

I was pleased that the Minister attempted to answer questions from Members on both sides of the House with courtesy, but I am afraid that some of her answers did not clarify the points put to her. The fault was not particularly in her or in the briefing that she was given; it was because of the way in which the Bill is structured. The Bill has problems because, as has been mentioned, it does not deal with the fluctuation of universal credit payments month by month. The Bill has problems for those who happen to be sanctioned when the payments are made. The Bill has problems for those who are self-employed. The Bill does not take into account larger families either, because this is a flat payment.

We will not be dividing the House, because we understand that our constituents are in desperate need of help and we recognise that the Government are spending about £11 billion on this cost of living payment, but of course we still do not know whether the Chancellor will maintain the energy price freeze at £2,500 or whether our constituents will be faced with average bills of £3,000 from April. Our constituents are losing the extra support that they have been receiving with their monthly bills as well.

The reason that the Government have had to spend £11 billion is that there is less resilience in our constituencies and our constituents are facing greater hardship than ever before. There is despair in the faces of many people that Ministers do not often meet and in communities they seldom visit, because for 13 years we have had Conservative Ministers telling us that they were going to balance the books by cutting more deeply and more brutally into social security. That is why, today, child poverty is up, pensioner poverty is up and in-work poverty is up. This Bill is welcome as far as it goes, but there are fundamental problems with the social security system. Our safety net is ever more threadbare and there is ever more desperate need and hardship in our communities. We will not divide the House this evening, but so much more needs to be done to give our constituents a better chance.

Oral Answers to Questions

Jonathan Ashworth Excerpts

Monday 6th March 2023 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

I understand that Ministers are struggling to convince the Office for Budget Responsibility that their inactivity plan will get half a million people back to work. One way in which the Secretary of State could hit his target is by encouraging more parents to move into work. Of course, many women, in particular, are blocked from returning to work because of childcare costs. Given that we should be doing more to help parents move into work, why has he now frozen the childcare cost cap in universal credit for the seventh year in a row?

[Mel Stride]

As to whether the OBR is or is not scoring the various measures that are being presented to it by the Treasury, I am intrigued as to how the right hon. Gentleman seems to know that it is having problems. The OBR operates under conditions of utter confidentiality in these matters, and I would not doubt that that is the way it has proceeded this time around. As for childcare, he is absolutely right. He will have to be a little patient—I know that he sometimes struggles to be patient—and we will then come forward with measures, and no doubt we will have something to say about the matter he has raised.

[Jonathan Ashworth]

I know that because the Secretary of State’s Government sources briefed The Sunday Times yesterday on that particular point, but I will wait and see. I will wait for the OBR report next week, and we will see what target for inactivity the Government publish and what the OBR endorses. He will know that many working parents would return to work if they could afford childcare, but many are expected to find hundreds of pounds—sometimes £1,000—to pay for childcare up front. Who has £1,000 down the back of a sofa? Will he make universal credit work by introducing more flexibility in how it operates, or is he prepared to punish hard-working parents by pushing them into more debt?

[Mel Stride]

I am afraid that I am just going to have to repeat what I have said, which is that the right hon. Gentleman will have to be patient. I am confident that we will have some things to say about the matters he has raised, but he will just have to wait another couple of weeks before he learns what we are doing.

Labour Market Activity

Jonathan Ashworth Excerpts

Tuesday 28th February 2023 Commons Chamber

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

I beg to move,

That this House is concerned that the number of people out of work and economically inactive is higher than before the pandemic, that thousands of older people have left the labour market and that there have been significant increases in the number of people out of work due to ill health or mental ill health; notes that recent employment support schemes have underperformed and underspent; condemns the Government for its failure to get more people into work; regrets that this failure is contributing to low economic growth and falling living standards; and therefore calls on the Government to get Britain back to work by reforming disability benefit assessments, devolving employment support to local areas and providing specialist and targeted help for those with long-term ill health or aged over 50 to grow the economy and boost both public finances and household incomes.

I ask the House to endorse this motion for one simple reason: it is time to get Britain back to work, and to extend opportunity to everybody who wants to find a decent, fulfilling job. It has always been the Labour party’s view that unemployment is never a price worth paying.

Let me say at the outset that this debate is not about the technical definition of unemployment. I anticipate that the Secretary of State will refer to the employment figures, and no doubt there will be interventions from Conservative Members telling us that our constituents have never had it so good. I accept that unemployment is at 3.7% of the working-age population, but the cause of low unemployment is not a booming jobs market.

In the last year or so, we have registered some of the lowest growth rates in the G7. The reality is that we are one of the few major economies not to have returned to pre-pandemic employment because of a rising tide of economic inactivity, despite there being around 1 million vacancies in the economy. Across other major economies, labour market participation rates rebounded as restrictions lifted, yet here employment is lower than before the pandemic. Our labour force growth effectively ground to a halt, and we suffered the biggest employment rate fall in the G7—a labour market loss of almost 4%, which is equivalent to 1 million people. Economic inactivity has risen by around 600,000.

Some of that is early retirement among the over-50s, but an increasingly common reason for leaving the labour market is sickness. When we consider both the number who are unemployed and the number who are inactive but who say they want help to work, there are around 3 million workless people in this country who could be in jobs. Indeed, some think-tanks suggest the figure could be as high as 4.7 million. Even though we have a UK unemployment rate of 3.7%, we in fact have a hidden unemployment rate of around 12.1% when we add the people who are inactive and want to work.

This means that 13.4% of the working-age population of Barnsley are involuntarily inactive, according to the Centre for Cities. These are men and women who, with the right help, want to work. It means that 12.9% of the working-age population of Middlesbrough, 12.4% of the working-age population of Doncaster and 12.7% of the working-age population of Mansfield are inactive.

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

Does my right hon. Friend agree that, since the Government came in and cut English for speakers of other languages courses, women from black, Asian and minority ethnic communities in inner-city areas, in particular, have not been able to get into employment? We see that in the figures.

[Jonathan Ashworth]

My hon. Friend makes an important point. I also see that phenomenon every day in my Leicester constituency. There are people who want to work, and who could work if given the right help and support with the English language—particularly women from Bangladeshi and Pakistani-heritage communities—but, because of the cuts that have made ESOL more difficult to access, they are not being given that support and help.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Is my right hon. Friend aware of the study by the Office for National Statistics showing that there could be a significant increase in the overall levels of employment and productivity if there were greater encouragement to work from home, particularly for women who are having to choose between caring and working? They face a cliff edge, but they want to do both. Why are the Government not doing something about that?

[Jonathan Ashworth]

My hon. Friend, typically, anticipates a point I will be making later, but it is clear that certain members of the population could be encouraged to return to work if the correct flexible option was in place, along with appropriate help with childcare or indeed social care. Many people are caring for loved ones—parents and so on.

[Hywel Williams (Arfon) (PC)]

The Institute for Public Policy Research estimates that six out of 10 people who are economically inactive because of illness are economically inactive because of mental health problems. Does the right hon. Gentleman agree that changing the conditions of work, for example, with good childcare, with proper jobs, with proper wages and so on, is the way to deal with this problem?

[Jonathan Ashworth]

The hon. Gentleman makes an entirely reasonable point. We are seeing more and more people being forced out of the labour market, or not able even to enter it in the first place, because of depression, stress or anxiety. If we reform the way in which we deliver employment support, we can get many of these people back to work, because being in work will be good for them in terms of managing their mental health. Obviously, that is not necessarily the case for everybody, but it will be for a significant proportion. The problem is that there are many who want to work, yet under the Government’s approach, which focuses just on the unemployed via the jobcentres, only one in 10 out-of-work older people or disabled people are getting any support. We reject that approach.

[Margaret Greenwood (Wirral West) (Lab)]

My right hon. Friend is making a good speech. For someone with a disability or a long-term condition, simple adjustments in the workplace, such as having a sit-stand desk, so that an office worker does not have to sit down all day, a vertical mouse, to help somebody who has problems with their wrists, or an ergonomic chair, to help somebody with a bad back, can make all the difference in how they are able to manage their health and how happy they can feel in the workplace. Lots of people do not know that they are entitled to ask for reasonable adjustments and that very often these items are available through the Access to Work programme. Does he agree that the Government need to do far more to publicise the support that is out there, so that not only can people get into work, but those in work can maintain their health and stay in work longer?

[Jonathan Ashworth]

My hon. Friend hits the nail on the head. It is not just that lots of people are not aware of the Access to Work scheme, but some people who apply for Access to Work are then faced with the most ridiculous waiting lists. A constituent of mine accepted a job and was told that there was a 26-week waiting list for an assessment. I raised that case with the Department in my capacity as a local constituency MP and I am pleased that the Department has looked at it again, but lots of people will not go to their local MP asking them to intervene, and we want to get people into work. It is no wonder that the disability employment gap is widening.

As a country, we should be aiming for the highest level of employment in the G7. That would mean living standards raised for every household. The reason we want to extend the opportunity of decent work to all is even more fundamental: when one in five people who have left the labour market in the past two years say that they would like to work, we have a responsibility to help them. Behind every statistic is a story of opportunities missed, talents wasted and extraordinary potential left untapped, none more so than for the now 1 million young people not in education or employment. Increasing numbers of young people are out of work for reasons of mental health. We know the long-term scarring effects of worklessness at a young age; it risks a life on the margins. To do nothing for this group of young people, as is, in effect, the case now, means writing them off. Its means tolerating a situation where only about 4% of people in the employment and support allowance support group return to work each year—to me, that is fundamentally unacceptable. It is a massive social cost and it has a massive economic cost as well, as we will see, because the Office for Budget Responsibility is predicting that the health-related benefit bill will increase, costing us £8 billion extra.

[John Redwood (Wokingham) (Con)]

Most Conservative Members would agree with much of what the right hon. Gentleman has said, so will he offer a bit of guidance as to how the Government should go about contacting people in these positions who might want to get into work? What kind of offer does he think would be best to make so that we can engage with them?

[Jonathan Ashworth]

I am grateful to the right hon. Gentleman for that. I will outline a very detailed plan in my remarks. I hope it finds favour with him, because we want to grow our economy, as he does, and getting people back to work is good for them as individuals, it will make our economy more productive, it will sustainably raise living standards—not by going for growth through inflation—and getting people back to work is surely a good thing. I hope he stays in the Chamber, as I am sure he will, to listen to my speech.

The Government say that they gave us kickstart, but it failed to deliver the 250,000 jobs for young people promised. They say that they gave us restart, but it is expected to help less than half the number of people that Ministers said it would, and it is underspent by around £900 million. However, my argument is not simply that the Minister is doing nothing. It is also that what the Government do do, they do not do very well.

The Local Government Association estimated that the Government—I think that this is last year’s figure—spent £20 billion to deliver 49 different employment and skills-related schemes administered by nine different Government Departments and agencies and, yet, despite all that money, these organisational geniuses have still given us a situation where we have 1 million vacancies, 3 million workless, and the worst employment recovery in the G7. That is surely not good enough for £20 billion-worth of expenditure.

What has been the Government’s answer? It is more of the same. They brief newspapers there will be more daily interviews for the three-month unemployed in the intensive work search group, even though the failure-to-attend rate for weekly appointments is already high. It will no doubt mean more CV writing classes, more applying for jobs online that turn out to be duplications and, of course, more sanctions. Of course there should be conditions applied to unemployment—[Interruption.] We have always been in favour of conditions for unemployment benefit—as many of these hon. Members will find out when they go to the jobcentre after the next general election—but what we need for this country is a plan that widens access to employment support for all who want to work, that brings together health and employment support, that addresses the cost and disincentives of moving into work for parents with childcare needs, for example, and that takes account of the different economic needs of the country.

[Beth Winter (Cynon Valley) (Lab)]

My constituency of Cynon Valley has some of the highest levels of economic inactivity in Wales and, indeed, the UK. I welcome Labour’s proposals to fix this broken employment support model. Indeed, I am pleased that, in Cynon Valley, we are piloting some innovative economic models under the community wealth building approach. However, turning to the UK Government, is my right hon. Friend at all concerned about the pilot announced in a written statement yesterday, requiring claimants to attend face-to-face interviews daily for a fortnight, with a threat of sanctions for non-attendance? Is that not a model to discourage claims? Is he also concerned that, following the closure of many jobcentres, jobcentre workers, who are themselves accessing food banks, are now being forced to require claimants to undertake these interviews and to make life-impacting decisions based on economic benefit?

[Jonathan Ashworth]

The problem is that the Government are one-trick ponies. They think that that is the answer to getting people back to work, but what we need is a plan to deal with the economically inactive, not just to apply conditions for those receiving unemployment-related benefit on universal credit.

Different parts of the country face different economic needs. In broad-brush terms, in coastal and some former industrial areas, we tend to see lower labour market participation rates and relatively fewer vacancies. In many parts of London and the south-east, we tend to see higher labour market participation, but also relatively fewer vacancies. In major cities such as Birmingham, Leicester, Coventry and Liverpool, we tend to see lower labour market participation, but often higher vacancies. The point is that different economies have different economic needs. Different labour markets have different economic needs. Instead of nationally contracting to deliver one-size-fits-all employment schemes designed from behind a desk in Caxton House, and instead of forcing Mayors—in the words of Andy Street—to go with a “begging bowl” to Whitehall, we should shift power and resources to local communities because, as the leader of Nottingham County Council, the hon. Member for Mansfield (Ben Bradley), said in a very good Red Box article a few weeks ago:

“Local leaders are too often hampered by the Whitehall knows best approach…Employment support programmes are commissioned based on national guidelines, not local needs…Fixing economic inactivity needs a radical pro-devolution mindset.”

I absolutely agree with him.

[Ben Bradley (Mansfield) (Con)]

I thank the right hon. Gentleman for his kind words and for giving way. I should mention that I co-wrote that article with Adam Hawksbee of Onward.

The right hon. Gentleman is absolutely right. He mentioned Mansfield’s statistics and the high levels of economic inactivity. These schemes are best built with local employers and training providers so that they can be bespoke for those needs, with the flexibility that was mentioned earlier; I am sure he would agree with that. Will he join me in calling on Ministers to pilot that in the east midlands when we get our combined authority next year?

[Jonathan Ashworth]

Absolutely. Of course, a Labour Government will definitely deliver more resources. I hope that we can pilot that in the east midlands combined authority, as well as in the Leicester area—the hon. Gentleman will know what that is a reference to.

[Samantha Dixon (City of Chester) (Lab)]

My right hon. Friend is making an eloquent point about the devolution of this policy area. I draw his attention to the work that Cheshire West and Chester Council has done with work zones across our borough and in my constituency. That work has been really effective not just in getting people into work, but in enabling those in low-paid work to get up the skills escalator. The sort of short-term rigid national contracting that we are seeing from the Government is actively working against the devolution and skills that local employers and local people need. I would be very pleased if he agreed.

[Jonathan Ashworth]

I agree. May I welcome my hon. Friend to her place? This is the first opportunity that I have had to do so. She brings to this House great experience in local government. She knows that local authority leaders, working in partnership with the business community, with those who provide skills, and with civic societies, trade unions and so on, can do a much better job of getting people back to work, which is why we should be shifting resources, be it to the east midlands combined authority, the Cheshire region or elsewhere.

Where that has happened in pockets—such as in Andy Burnham’s Greater Manchester, through the working well initiative—there have been great successes, so we need to shift resources. That is the key to providing a form of universal support, which my friends at the Centre for Social Justice have rightly called for, to help people with complex barriers to return to work. We endorse that approach.

[Hywel Williams]

I am grateful to the right hon. Gentleman for giving way—he is being very generous. We have a Labour Government in Wales. Would he support the devolution of the administration of social security to that Labour Government?

[Jonathan Ashworth]

The hon. Gentleman is tempting me into very choppy waters by offering to disrupt the way in which we provide social security across the country, but I will resist the temptation to go off course.

At a time when local areas should be given more resources to deliver employment support, the Government are cutting resources. Not only did they announce out of the blue in December that they were cutting a scheme that helped those with health conditions to move into work in the west midlands and South Yorkshire—they then U-turned on that a couple of weeks ago—but, as I heard from the Salvation Army when I went to visit an employment project in East Ham this morning, they are also leaving the voluntary sector with no answers about its future because of decisions about the shared prosperity fund.

The shared prosperity fund, which is the successor to the European social fund, helps to fund schemes that support people with complex barriers into work. The European social fund money ends at the end of this year, and there is then a nine-month funding gap until the people and skills element of the new shared prosperity fund kicks in. How does the Secretary of State expect to get more of the economically inactive into work when that funding gap means that voluntary organisations in all our constituencies have no idea how they will fund their work for the best part of a year? That is not the way to go about it, and when the Department leaves those voluntary organisations with no funding, it does not suggest that the Government are serious about getting people back to work.

[Margaret Greenwood]

Will my right hon. Friend give way?

[Jonathan Ashworth]

I will, but then I need to make progress.

[Margaret Greenwood]

My right hon. Friend is making an important point about the shared prosperity fund and the funding gap that so many providers in our constituencies face. I have seen in my constituency the fantastic work they do. The people working in those charities and organisations have huge expertise. Does he share my concern that, if their jobs do not continue, we will lose a wealth of knowledge that is tailored to our local communities, which would be devastating for so many people looking for work?

[Jonathan Ashworth]

It is a crazy situation. In fairness to the Secretary of State—I do always wish to be fair to him—decisions on the shared prosperity fund are made by the Department for Levelling Up, Housing and Communities, but for a Government who say that focusing on inactivity will be a feature of their Budget, the fact that one Department does not seem to know what another is doing does not exactly fill one with confidence.

Shifting resources out of Whitehall would provide greater opportunities to better join up and co-locate employment advisers in health services, mental health services, addiction services and primary care. We know that increasing numbers of people are out of work, not just for depression and anxiety but for traditional musculoskeletal conditions, and if we are to get people back into work, they need to be supported into work. They need to be given the support to thrive once they are in work. This is urgent, because we do not want the increasing numbers who are leaving work as the short-term sick turning into the long-term sick. We know that, once someone is out of work beyond three months, they risk being out of work for a considerable time.

Obviously, some of this is to do with access to the NHS, given that there are 7 million on the waiting list. It is about access to primary care, to help people manage their health conditions, but there is also a role for employment advisers. Indeed, the new frontier of social security reform, in my view, is bringing together health and welfare in a way we have not before. That also means giving people proper occupational health support. In fairness to the Government, a few years ago they endorsed Dame Carol Black’s report on occupational health, and they piloted a Fit for Work occupational health scheme, but they pulled the plug on it before it had time to properly bed in and develop. That was possibly an incredibly short-sighted decision, given the numbers out of work today for reasons of sickness.

We need to reform sick pay, as Labour has consistently called for. We need to ensure that fit notes are about not just signing people off but sign-posting people to help. We need to give people flexible work options, so that they can stay in work. We also need to support women to stay in work with the menopause, as my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) has outlined today. My hon. Friends the Members for Swansea East (Carolyn Harris) and for Leicester West (Liz Kendall) have been elegant and brilliant champions for this.

[Liz Kendall (Leicester West) (Lab)]

Elegant!

[Jonathan Ashworth]

They have been articulate and fantastic champions. I always praise my fellow MPs from Leicester. The Government need to take this agenda seriously, because we know that increasing numbers of women in their 50s are being forced out of the labour market but would stay in work if given the right flexible options.

We also need to tackle the barriers in the social security system that prevent people from moving into work. People should not be trapped on welfare, abandoned to going nowhere. That brings me to childcare. We know that childcare can make the difference between a parent rejoining the workforce and staying at home to look after their children. For some parents, childcare may not be available where they live, but for many parents—particularly those on the lowest incomes—childcare costs can be an insurmountable barrier to work. That should not be the case.

A lack of childcare, or a lack of support paying for it, should not stand in the way of a parent returning to work, yet low-income families often have that choice taken away from them. The design of the universal credit system means that childcare costs are based on payment in arrears, but as childcare usually needs to be paid up front, in advance, parents often have to choose between taking on debt or turning down work. It is pushing more families into debt. The Government’s answer is that people can go to their work coach and ask for a flexible support fund grant, but it should not be the case that a poorly understood and difficult handout scheme administered by the DWP is there to address the failings in the DWP’s own policy. We need to fix this.

[Chris Stephens (Glasgow South West) (SNP)]

Will the right hon. Gentleman give way?

[Jonathan Ashworth]

I will give way to my hon. Friend—the hon. Member.

[Chris Stephens]

I will take hon. Friend. There is another problem, which is that lone parents face the choice of working reduced hours, because if they increase their hours they will lose out on state support.

[Jonathan Ashworth]

Absolutely. It beggars belief that people are being trapped out of work because of the current system. It needs fundamental reform.

Part of the problem is the way in which the amount of childcare that can be reimbursed has been capped. A family in 2009 who received working tax credit and needed full-time childcare of 50 hours a week would have been reimbursed for 38 of those hours. Today, the same family on universal credit would be reimbursed for only 27 of those hours—at a time when we want to support more parents into work. Fixing childcare not only is the right thing to do, but will help the economy. The Centre for Progressive Policy has said that if women had access to adequate childcare services, they would generate up to £28 billion for the economy. Why are Ministers not fixing it?

Finally, the social security system should support, not hinder, people’s journey into work, but too often the system disincentivises work and makes even trying it too much of a risk. The work capability assessment acts as a barrier for people and the assessments can be arduous, lengthy and stressful. Many people with ill health simply do not want to risk going through that process again if they move into work and something goes wrong. Instead, we should guarantee that people in that position, who move into employment with the help of employment support, can return to the benefits that they were on without the need for another lengthy assessment process.

This is a plan to get people back to work, but where is the Government’s plan? They spin that they are working on something, but they cannot even tell us whether their existing policies are making a difference. I have been asking them about those policies and this is what they have told me. When I asked how much funding was allocated to each jobcentre, I was told:

“The information requested is not available.”

When I asked if they could tell us how many people had secured a job at the end of taking part in sector-based work academy programmes, I was told:

“This information is not available.”

When I asked how many people got jobs after taking part in the DWP’s mentoring circles, I was told that the information “is not collated”.

When I asked how many times people on universal credit have been asked to meet a work coach, I was told:

“No such specific assessment has been made.”

When I asked how many universal credit claimants were undertaking training or education that counted towards their work-related requirements, I was told:

“The requested information is not held.”

When I asked how many universal credit claimants were employed as carers, I was told:

“The requested information is not held.”

When I asked what the average amount of time is between receiving jobseeker’s allowance and receiving a job offer, I was told:

“The information requested is not…available.”

When I asked how many people stopped receiving employment and support allowance as a result of gaining employment, I was told:

“The information requested is not…available.”

When I asked how much money from the flexible support fund has been used to assist jobseekers with the cost of childcare, I was told

“The information is not available”.

When I asked how many individuals were awarded payments for childcare from the flexible support fund, I was told that the information requested is not available.

This lot are supposed to be getting people back to work, but a plan for jobs is not available. That is probably why the Secretary of State—the shadow shadow Secretary of State—now copies our welfare reform plans. We propose welfare reforms to benefits, and two days’ later we read in The Times that he is adopting them. We call for deeper links between health and employment services, and a week or so later he copies us. We put forward reforms to get the over-50s back into work, and a few weeks’ later he nicks them. I even went to the shop where I get my suits from—this is absolutely true—and the people said that he had recently been in there.

People say that imitation is the sincerest form of flattery, so why does the copycat Secretary of State not move out of the road and let us take over? Let us get Britain back to work, because Labour is winning the battle of ideas. I commend our motion to the House.

--- Later in debate ---

[Jerome Mayhew]

I thank the hon. Gentleman for that intervention. The question is: at what cost does this come and who pays the price? It is the young, the unemployed and the old who are outside the club of unionisation. They are the ones who pay the price, and the evidence is in the data.

It is an extraordinary fact that every Labour Government in history have ended up destroying employment, leaving more people out of work than when they came into power. The figures hide the real cost of Labour being in hock to the unions. I mean “in hock” literally: since 2010, it has received £142 million. That is excluding individual contributions to Opposition right hon. and hon. Members, and not even mentioning the hon. Member for Brent North (Barry Gardiner), so actually the number is a lot higher.

Raising employment barriers skews what would otherwise be a much more sensible employment policy for the Opposition. The costs are paid by those outside the club. Look at youth employment. In 2010, Labour left office with youth unemployment at about 20%. Right now, even after a global pandemic, youth unemployment is at 11.3%—almost half. Look at the long-term unemployed. In the 2000s, as we have already heard, Labour left about 1.4 million people unemployed for longer than 12 months. Today, the figure is 270,000, roughly a quarter of the number under the terrible record of Labour. Look at the people who are harder to employ—those, perhaps, with disabilities. Under this Government, there are 1.3 million more people with disabilities in employment than before 2016. That is the proud record of this Government. This Government do not pontificate about pay and employment; they get on with creating a dynamic labour market, supporting those most in need, not the union paymasters.

We have created a labour market not just by removing barriers to employment, but by having a benefits system that always makes work pay: the universal credit system, the destruction of which the right hon. Member for Islington North (Jeremy Corbyn) made the key plank of his 2019 election manifesto. Labour Members all fought the last election on the basis that they wanted to get rid of universal credit, and the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) continued that policy. In October 2020, when he was already leader of the Labour party, he said that “in the long term” universal credit needed to be replaced

“because… it traps people in poverty.”

However, given what we have heard from the hon. Member opposite, that now appears to be Labour policy.

[Jonathan Ashworth]

I am the right hon. Member.

[Jerome Mayhew]

Right hon. Member: he is quite correct. It seems that we agree on the concept behind universal credit. When did he experience that damascene conversion?

The Government are providing extra help, not for the unions but for the young, the disabled and those who are termed “the old”—meaning those over the age of 50, which, in my view, is hardly old. For the young, we have halved youth unemployment. We have the kickstart scheme, which the right hon. Gentleman criticised earlier, saying that it did not help 250,000 people into employment. However, it did help 160,000 into employment, including many of my constituents. As for the disabled, 1.3 million more have been employed since 2017. For the old, we have the age-friendly employer pledge and the 50PLUS champions. This is a work in progress, but it shows the direction of travel of this dynamic Government.

More widely, we are boosting support for 600,000 people on universal credit by securing greater access to job coaches. It is this Government who have doubled the number of job coaches, increasing it by 13,500 to give more help to unemployed people wishing to get back into work. I have seen this lately in my constituency. The Jobcentre Plus in Fakenham does amazing work, and the staff say the job coaches are wonderful and do a fantastic job.

There is a great deal to do. There is, for instance, post-covid recovery. We are experiencing a reduction in economic activity, and that position needs to be improved, but I trust that this Government—

Social Security (Additional Payments) (No. 2) Bill

Jonathan Ashworth Excerpts

2nd reading
Tuesday 21st February 2023 Commons Chamber

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

We will not divide the House this afternoon, because it is clear that our constituents need extra support. Families, poorer people and pensioners in our communities need help and support not simply because of the inflationary impact of the world unlocking from covid and the spikes in wholesale gas prices on the back of Putin’s heinous invasion of Ukraine, but because for 12 years—coming up to 13 years—we have seen mediocre economic growth under Conservative Governments and a failure to make our economy more productive or sustainably raise living standards.

After five Conservative Prime Ministers, six Conservative Chancellors and nine Conservative Work and Pensions Secretaries, families have been asked to endure the most brutal cuts and freezes to social security that have rendered out-of-work benefits at their lowest level for 30 years. Children have been punished by the pernicious two-child limit and there has been a 25% cut in the value of child benefit. Of course, universal credit was cut by £20—

[The Minister for Employment (Guy Opperman)]

No, it was not!

[Jonathan Ashworth]

Mr Bumptious needs to calm down. That is the reality of the policies that he supports, which have put more children into poverty on his watch as a Work and Pensions Minister.

Those policies meant that poorer working families entered the crisis with less resilience, less protection and less to fall back on than they otherwise would have. Before the pandemic, the lowest-income households were four times as likely to have no savings as the highest-income households. Today, we face a situation where not only child poverty has increased in relative terms under the Government, but child destitution—where children’s families do not have the means to properly heat their homes, put food on the table, buy toiletries or even provide a decent bed to sleep in at night—is now at half a million. In all our constituencies, demand for food banks has exploded, and there are now also bedding banks, baby banks and even 13,000 so-called warm banks where the vulnerable gather so they do not need to shiver in their homes.

We have all heard stories from our constituencies, such as at the Wesley Hall food bank in my constituency, of fresh food being turned down because mothers in work cannot afford the electricity bill associated with keeping the fridge running. We have heard stories of families saying no to fresh vegetables, because they cannot afford to boil them on the cooker hob. We have heard stories of pensioners using tea lights to try in vain to heat tins of beans.

None of that, by the way, is because people cannot add up or run a household budget, as some headline-chasing Tory MPs lecture us—not the Secretary of State, I concede, but some of his colleagues. In my constituency, the poorest people are some of the best at arithmetic. They go up and down the supermarket aisles, constantly adding up the cost of everything and taking items out of their basket to avoid the indignity of having insufficient funds available when they get to the checkout.

People are turning to food banks because, after 13 years, wages have become so inadequate, housing costs so severe, childcare bills so impossible, social security cuts so deep, and debts chased by the DWP so crushing that, combined with the price of shopping and energy bills going up, families simply cannot afford to survive on the income that they have. The safety net is now so threadbare that in food bank Britain, hunger, the cold and the constant dread of the bailiffs have become a way of life. That should not be a way to live.

Yesterday, the Office for National Statistics reported that 21.9 million people are spending less on food and essentials because of the increase in the cost of living. It said that 50% of disabled people and 50% of parents with a dependent child are cutting back. That is reality of the crisis and of the dismal, devastating poverty that many of our constituents face.

Let me deal with the specific measures that the Government are proposing. First, the Secretary of State rightly mentioned the inflation-proofing of benefits this year, although it is not in the Bill. We welcome that and we pushed him on it—as did, in fairness, many hon. Members on both sides of the House. To be frank, to have done anything else would have been unconscionable. He did not outline, however, that the Government are again freezing the housing allowance rates and the cap on childcare allowances in universal credit. We will see whether that changes in the Budget; I understand that the Government may be looking at that. If they make that change, we will welcome it as another example of them pinching one of our policies—I look forward to it. However, the impact of not inflation-proofing some of these allowances will be to hold families further in poverty.

Secondly—though not in the Bill, but again connected to it and mentioned by the Secretary of State—there are the energy price cap and the universal energy bills support scheme. However, the £400 discount on energy bills of course ends from April, and the Government are reducing the generosity of the energy cap from April, costing the average household an extra £500 on their energy bills. So there we have £900 extra on energy bills that households will have to find. Talk about giving with one hand and taking away with the other. Of course, not every household has been covered by the energy cap—

[Dr Luke Evans]

Will the right hon. Gentleman give way?

[Jonathan Ashworth]

Let me just finish this point.

Not every household has been covered by the energy cap because, for example, the thousands of people who live in social housing with district heating schemes were not covered by the energy cap. That means that some of the very poorest people, social tenants and private renters, many of whom are on the means-tested benefits that are the subject of this debate, are facing increases in their energy bills this April of sometimes even as high as 400%. It means that residents on the St Matthews estate, the St Peters estate and the St Marks estate in Leicester—places where there is already deep hardship and deprivation—could see huge increases in their gas bills, because the Conservative Government refused to include district heating in the energy price cap. That omission will push many more children into poverty in Leicester, London and across the country.

I give way to my fellow Leicestershire MP.

[Dr Evans]

I am grateful to my near constituency neighbour. On his point about the changing of the dates, could I ask what Labour’s plan is? Would it therefore keep the cap in place, and if so, how much would that cost and for how long would they do so?

[Jonathan Ashworth]

My right hon. Friend the Member for Doncaster North (Edward Miliband) has outlined how we would impose a windfall tax to maintain an energy price cap in place, and the hon. Member knows that full well.

The Government’s answer to rising energy bills, rising food prices and inflation outstripping wages is the Bill before us. Of course, the £900 in itself is welcome, and we concede that it is more than last year, but it is again a flat payment for disabled people and pensioners at a time when inflation has been running at 10%, so in real terms the payments this year are worth less than last year’s for pensioners and disabled people.

The point about this being a flat payment was put to the Secretary of State’s predecessor last year, and there are still a number of problems that we raised last year and that we hoped would have been rectified this year. The point is that the cost of living payment does not distinguish between large families and single-person households. The payment is the same regardless of household size, even though we know that larger households have higher spending needs—particularly those with children—which is why universal credit payments are higher for couples than for single people, and children are recognised in that system. In fact, larger households with children are likely to have 50% higher energy costs. All in all, that means that a couple with children will be £400 worse off, even after the cost of living payment.

There are also cliff edges involved with the cost of living payment being tied to receipt of means-tested benefits, meaning that somebody who earns just £1 above the limit could lose out on £900. This is at a time when the Government are saying they want to incentivise people to increase their hours or move into well-paid work to lift them off receiving universal credit, yet they have built into the system for next year a disincentive, even though they are telling people they will have to go for more interviews with their work coaches or face their benefits being cut. That is why the Treasury Committee recommended that to reduce the cliff edge, the DWP should consider spreading out the payments into more than the three payments and looking to look at a tapering scheme if they do this again. Perhaps the Minister, in summing up, could offer us her opinions on that Treasury Committee report.

Thirdly, and this is again related to the interaction of means-tested benefits, there is the point made by the Chair of the Work and Pensions Committee, my right hon. Friend the Member for East Ham (Sir Stephen Timms). Households with a nil award for their UC could, because of the way in which UC is calculated, lose out. The Secretary of State said that the Government have tried to iron out some of these harder edges, but they could not iron out all of them. Is he really telling us, “Computer says no”? Surely, he can look at that again. This problem impacted about a million households last year with the cost of living payment, 7,000 of which were impacted because they were sanctioned at the time. Are we really saying that many families could be impoverished because of the cold bureaucracy of the universal credit IT system?

Again, as with last year, not all low-income households will be eligible. Resolution Foundation analysis has found that four in 10 of the poorest fifth of households—2.4 million households—do not receive means-tested benefits, so they are ineligible for the cost of living payment. Very similar points were made in the relevant debate last year, and it is disappointing that many of the points that were put from across the House have not been rectified in this Bill. The justification from the then Secretary of State last year was that the Government needed to get on with it quickly, and we accepted that justification, so it is just a shame that they have not been able to find solutions this year.

None the less, we are not going to divide the House. The cost of living payments are welcome as far as they go, but let us be clear that they are not a long-term solution to years of social security freezes and cuts or to a systematic failure to grow our economy inclusively, make our economy more productive and sustainably raise living standards. They are not a solution for the thousands of families who rely on district heating schemes in many cities, such as London or my own Leicester constituency. Today, we are living in food bank Britain, with more children in poverty. Tory politicians can tell Britain’s families just to live on 30p dinners, but this is set to be the worst Parliament on record for living standards and all of our constituents know it.

Oral Answers to Questions

Jonathan Ashworth Excerpts

Monday 23rd January 2023 Commons Chamber

[The Minister for Employment (Guy Opperman)]

My hon. Friend is right that there are great things happening in Stoke. We are working with the North Staffordshire Engineering Group to develop a sector-based work academy to fill those specialist engineering roles. A jobs fair is planned at Port Vale football club—[Interruption] —which is some people’s favourite football club, on 16 February, and Don-Bur, IAE and Rayne are all invited to attend. On 15 March, the DWP is also hosting a jobs fair at IAE’s new exhibition centre.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

According to my friends at the Centre for Social Justice, around 700,000 people with no work requirement could go to work if given the right support. The Labour party put forward proposals. The Secretary of State’s spin doctors said they were cynical. Then, two days later, he briefed that he was going to copy them. So when will he introduce reforms to the work capability assessment and Access to Work to get more people back into the workplace?

[Mel Stride]

The right hon. Gentleman knows the answer to his own question, which is that we are looking at precisely those matters as part of our review of economic inactivity. He is well aware of the extensive consultation that surrounded the White Paper, which we will come forward with in due course. All the questions he poses will be answered in greater detail then.

[Jonathan Ashworth]

Economic inactivity has been rising for three years, and the Labour party wants to get Britain back to work, but all the Secretary of State can say is that he will bring forward a White Paper in due course.

Let me ask about the long-term sick. The Secretary of State will know that a third of the inactive across South Yorkshire are long-term sick and that a quarter of the inactive across the west midlands are long-term sick. In answer to my hon. Friend the Member for Barnsley Central (Dan Jarvis), he said he was looking carefully at the long-term sick programmes across South Yorkshire and the west midlands. However, in December, his Department withdrew the funding. Why is he cutting the funding for Andy Street’s West Midlands and across South Yorkshire when we need to get the long-term sick back to work?

[Mel Stride]

As I have said, we have invested £7 million in the west midlands engine pilot, and we are looking closely at that pilot. The right hon. Gentleman criticises us on the employment front, but it is Labour that saw the number of workless households almost double on its watch, Labour that always has unemployment higher at the end of its term of office than when it went in, Labour that parked millions of people on benefits with little incentive to leave them, and Labour that left us with 2.5 million unemployed in 2010.

Oral Answers to Questions

Jonathan Ashworth Excerpts

Monday 5th December 2022 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

The Secretary of State will know that employment is lower than before the pandemic, that 2.5 million people are out of work for reasons of sickness—a record high—and that half a million young people are not in education, employment or training. There is a £1 billion underspend on Restart and other schemes, so why not use that money to help the economically inactive get back to work?

[Mel Stride]

As the right hon. Gentleman will know, we look at our budgets on an ongoing basis. Where we have an underspend, such as on the Restart scheme, it is largely because the Government have been so successful in lowering the level of unemployment. Compared with 2010, youth unemployment is down by almost 60%. It is 29,000 down on the last quarter, and 77,000 down on the year.

[Jonathan Ashworth]

The Secretary of State will have seen the Office for Budget Responsibility’s projection that we are likely to spend more than £8 billion extra on health and disability benefits. We are getting sicker as a society, yet only one in 10 unemployed disabled people or older people are getting any employment support. Does he think that is acceptable? How will he fix it?