“Get Britain Working” White Paper
Liz Kendall Excerpts(2 weeks, 2 days ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
With permission, Madam Deputy Speaker, I shall make a statement on our “Get Britain Working” White Paper, bringing forward the biggest reforms to employment support in a generation, turning a Department for welfare into a Department for work, and taking the first steps towards delivering our bold ambition of an 80% employment rate in a decade of national renewal.
Nothing short of fundamental reform is needed to turn the page on the last 14 years, the legacy of which has left the UK as the only G7 country whose employment rate has not returned to pre-pandemic levels and with a near-record 2.8 million people out of work due to long-term sickness, and almost 1 million young people not in education, employment or training and millions more stuck in low-paid insecure work. All those problems are far worse in the midlands and the north, parts of the country that were deindustrialised in the ’80s and ’90s—the very same places that have lower life expectancy and chronic poor health that the Conservative party repeatedly promised to level up but repeatedly failed to deliver on.
The result is an economic but, above all, social crisis, paid for in the life chances and living standards of people across this country, and by a benefits bill for sickness and disability that is set to rise by £26 billion by the end of this Parliament. We have ended up here because of the failure of Conservative Members to create good jobs in every part of the country, to deliver on the NHS, and to properly reform welfare. Under our Government, that will change, with new opportunities matched by the responsibility to take them up: under this Labour Government, if you can work, you must work.
Our White Paper brings in three major reforms. First, we will create a new jobs and careers service that overhauls jobcentres: from a one-size-fits-all service that overwhelmingly focuses on administering benefits, to a genuine public employment service that provides personalised support for all. We will bring jobcentres together with the National Careers Service in England, beginning with a pathfinder early next year, backed with £55 million of initial funding. We will work closely with mayors and local leaders to ensure that our new jobs and careers service is rooted in local communities and properly joined up with local help and support. We will also work closely with employers to develop the service, because only one in six businesses has ever used a jobcentre to recruit, and that must change.
For too many people, walking into a jobcentre feels like going back in time to the ’80s or ’90s, so we will trial a radically improved digital offer using the latest technologies and AI to provide up-to-date information on jobs, skills and other support, and to free up work coach time. We will also test video and phone support—because in the 2020s, rather than go into the jobcentre only every week or fortnight, people can have a jobcentre in their pocket. Our frontline staff are our greatest asset, so we will develop the work coach and careers adviser professions, including by launching a new coaching academy.
The second major reform is our new youth guarantee, so that every young person is earning or learning. This comes alongside our commitment to provide mental health support in every school, our work experience and careers advice offer, and our plans to reform the last Government’s failed apprenticeship levy to give more young people the opportunities they deserve. Our new youth guarantee will go further, bringing together all the support for 18 to 21-year-olds under the leadership of mayors and local areas so all young people have access to education, training and employment opportunities and no young person misses out. Today I can announce that we will establish eight trailblazer areas for our youth guarantee: the Liverpool city region, the west midlands, Tees valley, east midlands, Cambridgeshire and Peterborough, west of England, and two areas within Greater London, backed by £45 million of additional funding.
I can also announce a new national partnership to provide exciting opportunities for young people in sports, arts and culture, starting with some of Britain’s most iconic cultural and sporting organisations, including the Premier League, the Royal Shakespeare Company, and Channel 4, building on the brilliant work they already do to inspire and engage the younger generation and get them on the pathway to success.
This is our commitment to young people: “We value you, you are important, we will invest in you and give you the chances you deserve; but in return for these new opportunities, you have a responsibility to take them up, because being unemployed or lacking basic qualifications when you are young can harm your job prospects and wages for the rest of your life. And that is not good enough for young people or for our country.”
The third reform in our White Paper is our new plan to drive down economic inactivity caused by poor health. The Health Secretary is already taking action to get people back to health and back to work, with extra support to drive down waiting lists in the 20 NHS trusts with the highest levels of economic inactivity. We are joining up employment and health support, expanding individual placement support to reach an additional 140,000 people with mental health problems and delivering new WorkWell services, which include GPs referring patients to employment advisers and other work-related support such as the brilliant service in the Junction Medical Practice in North London we visited recently.
However, we will go much further and faster to tackle this issue. To meet the scale of the challenge, we will devolve new funding, new powers and new responsibilities to tackle economic inactivity to mayors and local areas, because local leaders know their communities best. We will support all areas in England to produce local “Get Britain Working” plans, joining up work, health and skills support.
Today I am announcing eight trailblazer areas backed by £125 million of additional funding in south Yorkshire, west Yorkshire, the north-east, Greater Manchester, Wales, York and north Yorkshire, and two Greater London areas. In three of these areas—south and west Yorkshire, and the north-east—this will include dedicated input and £45 million of funding for local NHS integrated care systems. We are also funding a new supported employment programme called Connect to Work, backed by £115 million of initial funding for next year. This will be included in the integrated settlements of combined authorities, starting with Greater Manchester and the west midlands.
Employers have such an important role to play in helping get people into work, and crucially to stay in work, so today I can announce a new independent “Keep Britain Working” review, looking at the role of UK employers and Government in tackling health-related inactivity and creating healthy workplaces. This will be led by the former chair of John Lewis, Sir Charlie Mayfield, and will report in the autumn.
Finally, we will bring forward a Green Paper on our proposals for reforming the health and disability benefits system, so that disabled people and those with health conditions have the same rights as everybody else, including the right to work; so that we treat disabled people with dignity and respect; and so that we shift the focus to prevention and respond to the complex and fluctuating nature of today’s health conditions. We will work closely with disabled people and their organisations as we develop our proposals, which we will publish in the spring.
This White Paper starts to turn the corner on the past 14 years, putting forward the real reforms we need to get more people into work and on at work, to give young people the very best start in life and to ensure our employment and social security system understands the fundamental issue that a healthy nation and a healthy economy are two sides of the same coin. This is how we get Britain working again. It is how we get Britain growing again, and I commend this statement to the House.
Madam Deputy Speaker (Caroline Nokes)
I call the shadow Secretary of State.
Helen Whately
In the decade after we took over from Labour, we drove down unemployment and economic inactivity year after year, including youth unemployment, which went down by 400,000 after the mess we inherited from the last Labour Government. During the pandemic, we took unprecedented action to protect jobs and livelihoods, but since the pandemic we have faced a new and difficult challenge in this country: rising economic inactivity, particularly among young people. In government, we were tackling that. I know that, because as a Health Minister I was working on it. I am delighted that the right hon. Lady and the Health Secretary visited one of our WorkWell pilots just the other day. I was working on our fit note reforms, our youth offer, which helped a million young people, and our universal support scheme, which I now hear the Secretary of State has quietly rebranded as her own Connect to Work scheme.
Far from being cross that the Government are pinching our ideas, I welcome the right hon. Lady taking our work forward. She is making the right noises about how important it is to fix this area. Economic inactivity is a big problem for our economy and for each and every individual who risks being written off to a life on benefits. Knowing that, I am disappointed by the substance of what she is announcing today, because far from matching her rhetoric, it appears to be little more than a pot of money for local councils, some disparaging language about the work of jobcentres and a consultation that will be launched in the spring. Given that the Government have had 14 years to prepare for this moment, is that it?
Where are the reforms to benefits that will make material savings to the taxpayer, such as the £12 billion we committed to save in our manifesto? Where are the reforms to fit notes, which we had handed over, ready to go? Where is the Secretary of State’s plan for reforming the work capability assessments? She has banked the £3 billion of savings from our plan, but has failed to set out her own. Her big announcement is making benefits for young people conditional. Did she forget that they already are?
The fact is that the Secretary of State has dodged the tough decisions. Every day that she kicks the can down the road costs the taxpayer millions of pounds. At this rate, spending on sickness benefits will rise to £100 billion by the end of this Parliament. They are taking that money from farmers, from pensioners and from businesses. To get people off benefits, we need jobs for them to go into. Those are the very jobs that businesses are saying, since the Budget, they will no longer be hiring for. While the right hon. Lady tries to get people into work, her Chancellor is busy destroying jobs—50,000 jobs lost from her first Budget alone.
If the Secretary of State wants to get more 18-year-olds into work, she should have a word with her Chancellor, who has made it so that from April it will cost £5,000 more for a business to employ them. She should have a word with her Business Secretary, whose Employment Rights Bill will, according to the Government’s own impact assessment, make it less likely for employers to take on young people. The Government cannot solve this problem on their own. Businesses are the engine of our economy that create jobs for people to do. It is telling that I cannot see a single business representative on the new Labour Market Advisory Board.
I did hear the right hon. Lady talk about some new partnerships, but this announcement is such a song and dance about so little that I feel sure she will qualify for one of her own Royal Shakespeare Company apprenticeships. She has kicked the can so far down the road that her new partner, the Premier League, is sure to be on the phone by the end of the day.
May I for a moment cut through the word soup of the announcement? It is time for the right hon. Lady to tell the House some facts. How many people will it help into work, and by when? What is the total she is saving the taxpayer? When will she reach her 80% employment target? What return on investment is she expecting from these plans? How will she measure her success or failure? This is so far from the bold grasping of the nettle that she is making it out to be and that this country needs for our economy, for taxpayers and for the millions of people missing out on the purpose and freedom that work brings. It is simply not good enough.
Liz Kendall
May I say gently to the hon. Lady, who I personally like and have a great deal of time for, that the only people who dodge difficult decisions on welfare are the Conservatives? The facts speak for themselves. By the end of this Parliament, the Office for Budget Responsibility says that 420,000 more people will be on health-related universal credit benefits, rising from a third now to a half at the end of the Parliament. That is her Government’s legacy. One in eight of all our young people are not in education, employment or training. We have seen a doubling in the number of young people out of work due to long-term sickness and a doubling of young people out of work because of mental health problems. After 14 years in government, who does she think is responsible for that? I am afraid that the truth is staring her in the face: the Conservatives are now the party of welfare, and Labour is the party of work.
The hon. Lady talks about British businesses. I know only too well the pressures that many businesses face. We have spoken to the CBI, the Federation of Small Businesses and the British Chambers of Commerce, and they are keen to work with us on our proposals. They know that their members have hundreds of thousands of vacancies that they need to fill, one in three of which is because of skills gaps. They know that 300,000 people every single year fall out of work due to a health condition. They need support to try to tackle that problem. I believe that the Department for Work and Pensions and jobcentres should serve businesses’ needs and aspirations, not be the place of last resort. That is precisely what our reforms will deliver.
Finally, the biggest challenge we face today is the growing number of people out of work or at risk of falling out of work due to health problems or a disability. Our entire employment and benefits system is simply not geared up to deal with that. We will take examples of good practice from wherever we find them, but we have got to go much further. We need big reforms, not easy slogans that say people just felt a bit too bluesy to work, which do nothing to help people get to grips with the real issues in their lives. We are facing up to our responsibilities and the difficult decisions necessary to get Britain working again. It is time the hon. Lady and her party did the same.
Madam Deputy Speaker (Caroline Nokes)
I call the Chair of the Work and Pensions Committee.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
I warmly welcome my right hon. Friend’s statement, and I look forward to reading the White Paper later. The cross-departmental approach she is taking with colleagues is essential and is a breath of fresh air, particularly in relation to tackling the root causes of economic inactivity, which she has explained predominantly relate to ill health.
In addition to the need to tackle regional inequalities in employment, my right hon. Friend will be aware that there is a 30% disability employment gap, with 2.25 million disabled people wanting and able to work. How will she tackle that real injustice? We know that disabled people are more likely to be living in poverty than other groups. What are her specific plans in that regard?
Liz Kendall
I thank my hon. Friend for that important question. The Minister for Social Security and Disability and I are working hard to tear down the barriers to disabled people being able to get work and get on in work. We are taking action across Government, including reporting on the disability employment gap. We need to tackle the long waits for Access to Work and the adaptations and other support that people need.
We also need brilliant supported employment programmes for people with autism and learning difficulties, such as those that I and my right hon. Friend the Health Secretary recently visited in our own NHS trusts. They really provide a pathway to work, with the right help and support. There is much more that we need to do, and I look forward to discussing these issues with my hon. Friend and other members of the Committee.
Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Jess Brown-Fuller (Chichester) (LD)
Under the Conservatives the UK’s was the only economy to see employment rates fall over the last five years, leaving a legacy of wrecked apprenticeships, mental health services not fit for purpose and millions on waiting lists unable to work, as well as those with caring responsibilities staying at home to provide care for their loved ones because of the failure in our social care system. The Liberal Democrats welcome steps to improve access to skills, training and education. I praise the work of Fedcap and Maximus UK, which are doing just that in Chichester in conjunction with the jobcentres, working with those who have had long periods of economic inactivity or have additional challenges in finding work. But the insecurity and short-term nature of Government funding for such projects means that both organisations had to pause their referrals this year while they waited for the Government to confirm their continued funding. I am sure that the Secretary of State agrees that to get people back into work, the organisations already trying to do that need more security from the Government.
When it comes to tackling the mental health crisis, it is not enough to reverse the Conservatives’ lack of action. The Government must be proactive in improving mental health services. I invite the Secretary of State to take the proactive ideas that the Liberal Democrats laid out in our general election manifesto such as catching more mental health conditions early on by offering mental health MOTs and the introduction of mental health hubs in every community to deliver ease of access to walk-in services and support.
It is abundantly clear that ensuring people get the NHS treatment they need is critical to getting people back to work. The NHS cannot tackle its long waiting lists unless the Government get serious about fixing the crisis in social care. We have heard a lot of words from the Government on social care but seen little action, with the increase in the social care budget totally eroded by the national insurance contribution rise. Does the Secretary of State agree that a healthy society is a productive society and that fixing the health and social care crisis will get our country back to work?
Liz Kendall
I thank the hon. Lady for her questions. Yes, I agree that we have got to tackle the root causes of the problem and have an NHS and social care system that is fit for purpose. We have put forward our commitments on mental health support in every school and every community. We know that many mental health problems start before someone turns 18, so we have to try to prevent those problems in the first place, but there is much more that we need to do.
We are starting to see fantastic NHS services that provide employment advice as part of care. The evidence shows that if a person is in good work, a sense of purpose and structure is good for their mental health. My right hon. Friend the Health Secretary is pushing for that to be available in all parts of the country.
I am under no illusions about the scale of the challenge. Only 3% of people who are economically inactive get back to work in any given year, so we have to prevent the problems from happening in the first place as well as doing more to help those people into work.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
Under the last Government, the DWP faced legal action for its unlawful treatment of disabled people. How will this White Paper, with its positive vision, rebuild trust and better support disabled people going forward?
Liz Kendall
The Government believe that disabled people have the same rights as everybody else, including the right to work. Our mission is to break down the barriers. Many disabled people would want to work if they could get the right help and support and a job that fits their needs and concerns, with greater flexibility. This is a really important challenge. I do not blame disabled people for often being frightened and worried when they hear about these discussions after what happened over the past 14 years, but we will work with disabled people and the organisations that represent them to get the world of work and the employment support system right and get a better-functioning system of disability benefits. This is a really big challenge for our country, but with these proposals we are taking an important step forward.
John Glen (Salisbury) (Con)
I welcome the Secretary of State’s ambition in many of the areas she has set out, and particularly the “Geep Britain Working” initiative. As a Parliament, we must come to terms with the obesity and mental health crises, so I welcome what she is doing with the Secretary of State for Health.
May I bring to the Secretary of State’s attention the work of South Wilts Mencap? I recently met Robin Clifford, and over 14 years I have seen the work that that group of trustees does with the adult learning disabled, a particular and special group of individuals in my constituency. I would welcome the opportunity to meet the Minister for Social Security and Disability to look at programmes that could be started or pilots that could be undertaken to get the learning disabled into meaningful activity where they can make some contribution through paid work.
Liz Kendall
I thank the right hon. Gentleman for that important contribution. I and the Minister for Social Security and Disability would be keen to hear more about that work. I recently visited a supported employment programme—a year-long supported internship—run by my local health service for young people with autism and severe learning difficulties. It started by talking to the parents about what the young people could do, and not just what they could not do. The young people were got on the bus to get them to work. They tried three different jobs around the hospital to find the one that best matched their needs, and after that year every single young person was given a paid job. That is so successful that we are expanding it to the local university and to one of Leicester’s biggest hotel chains. These changes are possible, and I am keen to work with the right hon. Gentleman in his area to ensure that we give these opportunities.
Gill German (Clwyd North) (Lab)
I warmly welcome my right hon. Friend’s statement. I believe that these reforms will be transformative, and it is not before time. In my constituency, we have long recognised the gaps that exist in the system. Our local authorities have put in place the brilliant “Working Denbighshire” programme and Conwy employment hub, which really drills down into what local people need and takes them on a pathway into work. Does the Secretary of State agree that devolving power and—crucially—funding in the way she set out is key to achieving the best results we can for local people in their area?
Liz Kendall
This is a major change in our approach. Local areas know best their needs and the different organisations that can help achieve goals. I know that economic inactivity in my city is predominantly driven by people with caring responsibilities; in other parts of the country, it is more about physical health or mental health problems. We need different things in different parts of the country—that is the best way to get the best results. It is a big change for the Department for Work and Pensions to be a much more localised service and to be much more joined up with other parts of government, both nationally and locally, but that is how we will deliver change.
Lewis Cocking (Broxbourne) (Con)
Businesses in my constituency are really worried and putting off investing and creating jobs because of the Labour party’s Budget, and in particular the increase in regulations and the national insurance increase. How does the Secretary of State plan to get everyone who should be in work back to work if no jobs exist out there?
Liz Kendall
I understand the pressures that many businesses are under. The Budget tried to deal with a very difficult issue: if we are spending more than we are earning, our public finances are not working. Anyone who runs a business knows that they have to get the finances right, but many organisations recognise that they need to recruit more people with the skills that meet their particular concerns. They are worried about the increasing number of health conditions and people leaving work because of them. I am determined to work with and serve local businesses. I would be very happy to meet the hon. Gentleman to talk about the specific needs of businesses in his constituency.
David Pinto-Duschinsky (Hendon) (Lab)
I warmly welcome the White Paper. I think it is a huge step forward. Mental health challenges have been the biggest single driver of rising inactivity among the young, and we know that mental health can be hugely helped by work. One study shows that just eight hours of work a week will reduce the risk of depression and anxiety by up to 30%. Given that, what will the Secretary of State do to help support those at risk from mental health issues to get back to work?
Liz Kendall
I have talked about what we aim to do to prevent mental health problems from happening in the first place, with more mental health support in schools and in the community. I see this as a fundamental overhaul of the way the DWP and the NHS work together, so that support to get people with mental health problems into the right jobs becomes part of what the NHS does, by putting employment advisers into the NHS. The individual placement and support service, which began under the last Government through the NHS, has shown quite phenomenal results—40% of people are in work after five years. Their use of the health service—the number of relapses and days they spend in hospital—are also reduced. That is better for work and for mental health. This requires a big change in the way we work, but my right hon. Friend the Health Secretary and I are determined to make that happen.
Kirsty Blackman (Aberdeen North) (SNP)
Many disabled or ill people were terrified by the Tories’ proposals to cut £3 billion from sickness benefit. Given that Labour is continuing that cut, will the Secretary of State promise to sign up to the principle of “nothing about us without us” and ensure that disabled people, those with ill health and those with lived experience of these systems are round the table, making the decisions on how this moves forward?
Liz Kendall
I have always been a big champion, including when I worked in social care, of working in partnership with people to get the decisions right first time. That is really important, which is why the Minister for Social Security and Disability and I are absolutely clear that we will work with disabled people in the relevant organisations to get this system right. I want to be really clear that the system is not working. People have to wait weeks on end to get an assessment, which often is overturned at tribunal. We do not do enough to prevent people from falling out of the workplace. Ninety per cent. of people who get back into work after a bout of sickness do so within the first year, but we do not use that opportunity to provide the help and support that they need. We need change. I understand how worried people are when they hear about change, but I think they would also say that the change needs to happen, and we are determined to put that in place.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
I warmly welcome the statement by my right hon. Friend, because giving people the opportunity to get on in life and have dignity in good work is at the heart of what drove me to this place. Does the Secretary of State agree that helping people into work in Paisley and Renfrewshire South is about getting the economy growing again, as well as putting more money into people’s pockets? Will she say a little more about her discussions with the Scottish Government to ensure that they will play their full part in making sure that this works?
Liz Kendall
I am absolutely determined to get more people into better-paid jobs in every part of the country. That is the key to improving people’s living standards and to getting the economy growing again. Our new jobs and careers service will look different in Scotland because the Scottish Government are responsible for running the careers service there, but we are already in discussions about how to make sure that our plans meet the specific needs of people in Scotland, including in my hon. Friend’s constituency. I look forward to receiving her ideas and suggestions, which I know she will always provide.
Mr Richard Holden (Basildon and Billericay) (Con)
I want the Secretary of State to succeed, and I want her to be part of the first Labour majority Government ever to leave office with employment higher than when they started. I had hoped to hear a little more about reform, rather than just about a review, but this is a welcome step in the right direction. Businesses in Basildon and Billericay have been telling me that although they welcome some of the schemes—I am sure that some of them will do good things—they are absolutely terrified by both the taxes coming through national insurance and the hit on them through business rates. The Office for Budget Responsibility says that at least 50,000 jobs a year will go because of those changes, so where will the people who she is hoping to get off benefits and into work find that employment?
Liz Kendall
As I have said to other hon. Members, I am keen to talk to businesses right across the country, including in the hon. Gentleman’s constituency, about the challenges that they face. We took a decision when we got into office that we could not continue with the fantasy economics. We cannot spend more than we earn. We have to invest in the long-term physical infrastructure of the country, but also in our people, who are our best assets. We must get the NHS back on its feet. I know the issues that businesses face, but they are also thinking about the longer term—the vacancies, and how on earth they get the skills that their business needs. I would be very happy to talk to the hon. Gentleman about that, if he likes.
Clive Efford (Eltham and Chislehurst) (Lab)
I welcome the statement from my right hon. Friend, and particularly what she said about the coaches and assistance for young people getting into work. What she describes seems to fit neatly with what the Government propose for the green economy, and its highly skilled, well-paid jobs. How will training for those jobs play a part in getting people from unemployment into work?
Liz Kendall
My hon. Friend hits the nail on the head. The “Get Britain Working” White Paper is part of a much wider series of reforms that the Government are making to create more good jobs in every part of the country, including in green energy, through our modern industrial strategy, and through our plans, in the new deal for working people, to make work pay. Yesterday, I was at a college in Peterborough that is looking at how to upskill young people so that they can get the clean, green energy jobs of the future. That needs to happen in every part of the country, because we want the new jobs that we are creating to be available to those who need them most. We have not really managed to fit that together before—to get the DWP and our “Get Britain Working” plans underpinning our local growth plans. That is a big change that we have to deliver, if we are to make sure that everybody in this country benefits from the jobs we are creating.
Christine Jardine (Edinburgh West) (LD)
I welcome much of what the Secretary of State has said, and I am delighted that she has assured us that there will be discussions with the Scottish Government about plans for Scotland. Throughout the past two or three years, businesses in my constituency have told me that they are concerned that they cannot get people to work for them, so this strategy will be welcome. However, does the Secretary of State appreciate that many of us see a contradiction between this policy and the national insurance changes? A major employer in my constituency tells me that the changes will cost it £250,000 extra a year, and it will not take on seasonal workers because it cannot afford to. How does that damaging policy for business go alongside trying to encourage more people back to work?
Liz Kendall
Of course businesses face these pressures, but I think many of them understand that the Government have to look at the fundamentals. We faced a problem with the public finances when we got into government. My right hon. Friend the Chancellor took the decision that the only way we could sort out the country for the long term was to get the public finances back on a more sustainable footing. The businesses that I have met, including Tesco in my constituency, raised concerns with me, but they also said that they really want to get more young people who have mental health problems into work. Tesco has a brilliant partnership with the King’s Trust to get those young people into work and help them stay there, because it knows that the key to those young people’s future is to get those skills, so that they can grow business and make the changes that this country needs.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
I thank my right hon. Friend for her statement. My constituents will very much welcome the additional funding for young people in the Tees Valley, and the modernisation of jobcentres, which will benefit our wonderful jobcentre staff. Can the Secretary of State say how the changes will dovetail with the Employment Rights Bill? How will we ensure that young people are offered quality employment and training opportunities, and not pressured into accepting inadequate and insecure zero-hours jobs? Can she also say how the Government and Members can monitor and evaluate the combined authorities’ delivery of the youth trailblazer programme?
Liz Kendall
My hon. Friend will know of our plans to make work pay, bring in day one employment rights, end exploitative zero-hours contracts and improve flexibility at work. We need to do all those things to make sure that there are good-quality job options out there for young people. There will be new leadership roles for mayors in combined authorities, but also clear accountability for delivering the outcome that we want, which is that every young person has an opportunity to earn or learn. We will make sure that happens.
Sir Desmond Swayne (New Forest West) (Con)
To ensure that
“if you can work, you must work”,
will the Secretary of State familiarise herself with the works of Jeremy Bentham?
Alan Gemmell (Central Ayrshire) (Lab)
We have heard much about the failures of the Conservative party, but after 17 years of SNP failures, young people in Central Ayrshire are looking to this Government for the opportunity for a good job. What more will my right hon. Friend do, through today’s announcement, to help young people in Central Ayrshire and across Scotland?
Liz Kendall
It is hugely important that we deliver these new opportunities in every part of the country, including to people of all ages in Scotland. We will work with the Scottish Government on that, but also, really importantly, with local councils, who have a huge role to play. Our jobcentres really need to change. They need to meet the needs of employers and future employees in every part of the country. I look forward to working with my hon. Friend, to get his ideas on what will work best. Perhaps we could do a joint visit to his jobcentre.
Wendy Chamberlain (North East Fife) (LD)
It is all very well us talking about the Department for Work, but a challenge is often that we fail those in employment who are interacting with the benefit system. I have a number of constituents in North East Fife who are paid on a four-weekly basis but who also claim universal credit, which means that, one month a year, they lose their universal credit. Simply telling them to try to put money aside to bridge that gap is not, I think, a professional way for us to support those people. I know that has been an ongoing challenge, but will the consultation look at such issues?
Liz Kendall
The hon. Lady raises a really important point. We have a clear manifesto commitment to review universal credit, tackle poverty and make work pay. That issue has been raised a lot with me and the Minister for Social Security and Disability. I am sure that he will look closely at that. We need our benefits system to match the reality of people’s working lives today.
Yuan Yang (Earley and Woodley) (Lab)
I very much commend the Secretary of State for the youth guarantee. In my constituency, many businesses have invested in the hi-tech industries of the future. However, I speak to young people and their families who are concerned about those young people getting jobs on the first rung of the ladder. This year, there will be 3,000 undergraduates graduating from the University of Reading, and a further 3,000 people turning 18 in my constituency. What can the Secretary of State and her Department do for those young people to ensure that local jobs and training opportunities match the economic advantages of the area they are from?
Liz Kendall
I personally believe that we need to start much younger than 18, with good work experience and careers advice in schools. I have certainly seen that in my constituency; even in primary schools, teachers have brought in people with different jobs, in different professions, to open children’s eyes and minds to the possibilities of the world of work. We need to bring together everything that is happening in our schools, colleges and the world of work. That is how we open up possibilities for young people. I hope that the youth guarantee will do precisely that in local areas and provide the opportunities that my hon. Friend’s young constituents need and deserve.
Jim Allister (North Antrim) (TUV)
I note that the White Paper is called “Get Britain Working”, not “Get the United Kingdom Working”. I appreciate there are devolution issues, but when I listened to the Secretary of State’s statement, I found it very England-orientated. There are references to national partnerships, but how does the White Paper fit with getting the United Kingdom working? Will there be Barnett consequentials? And will things be left up to the sometimes failing devolved institutions?
Liz Kendall
I thank the hon. Gentleman for his question. Northern Ireland has one of the highest rates of economic inactivity in the United Kingdom, which is a real concern for me, and, I am sure, for him. I have already spoken to the Minister responsible. There are things happening in Northern Ireland that we can look at to see whether there are lessons that could be learned for elsewhere in the country. We will always work closely with the devolved Administrations to ensure that our plans match people’s needs in every part of the country, because that is what his constituents and the country as a whole deserve.
John McDonnell (Hayes and Harlington) (Ind)
Given the empty Opposition Benches, it looks like the Conservative party has adopted a policy of a three or two-day week to tackle the unemployment problem. I refer to my entry in the Register of Members’ Financial Interests as chair of the Public and Commercial Services Union parliamentary group. From the tone taken and the statement given today, my understanding is that the Government acknowledge that it will be support, not sanctions, that will tackle this issue overall, and that that support will come from new employment centres in our constituencies, staffed by fully trained, motivated and well-paid staff. The Secretary of State mentioned meeting businesses and mayors. May I ask that she also meets the trade unions? The PCS parliamentary group would welcome a meeting with her to talk through the roll-out of this programme, which will benefit both the staff and the recipients of their services.
Liz Kendall
I thank my right hon. Friend for his question. Our 16,000 work coaches and other frontline jobcentre staff are our biggest asset. Some have worked for the DWP for 25 or 30 years, because they care about their communities. They have been stifled by a system that had an overwhelming focus on monitoring and administering benefits. They know what their local areas want and need. I spoke to the head of the TUC yesterday about our plans. I am sure that either the Minister for Employment or I would be very happy to meet the PCS to talk about how we take these plans forward.
Sarah Dyke (Glastonbury and Somerton) (LD)
I thank the Secretary of State for her statement. Some 13% of jobs in Somerset are in manufacturing, and many of them are in the defence industry—in Thales in Templecombe, RNAS Yeovilton in my constituency, or Leonardo nearby. The manufacturing industry contributes £1.87 billion to our local economy, which is more than any other single industry. However, data shows that women represent only 30% of the STEM—science, technology, engineering and maths—workforce. Does the Secretary of State agree that we should be making more targeted interventions to support more women into this important industry?
Liz Kendall
One hundred per cent. I could not agree more with the hon. Lady. We need to get more women into manufacturing, engineering and all those STEM subjects. I met many apprentices yesterday on a visit to Peterborough college, including young women who said, “This is for me.” More women need to do this. They are great jobs and great careers, with great pay—100%.
Mr Connor Rand (Altrincham and Sale West) (Lab)
It is wonderful to hear from my right hon. Friend that Greater Manchester will be one of the trailblazer areas for these vital reforms. When I speak to businesses in Altrincham and Sale West, they tell me that the greatest challenge they face is recruiting people to fill vacancies. Can the Secretary of State outline a little further how these plans will ensure that businesses can recruit the skilled staff they need, and give young people in my constituency great opportunities in the process?
Liz Kendall
This is one of the biggest challenges that many employers face, and the reason that many of them are so keen on apprentices—as I was told yesterday—is that they can mould young people with the specific skills that their companies need. There are two points here. First, we are reforming the apprenticeship levy and transforming it into a new growth and skills levy, so that businesses have more flexibility in how they use it. Secondly, many young people have missed out on those basic skills of maths and English at GCSE, and cannot even get on to the apprenticeship scheme. We need that training or those foundation apprenticeships, because they are a key part of the changes that we want to make and to spread, through our youth guarantee, to areas including Greater Manchester.
Ann Davies (Caerfyrddin) (PC)
The Workways team, which is run by Carmarthenshire county council in my constituency, does impressive work in facilitating access to critical skills and giving career opportunities to people who are out of work. It has received funding through the shared prosperity fund, but that is due to end. Can the Minister tell me how such vital organisations in Wales will benefit from her Department’s plans?
Liz Kendall
The whole point of devolving responsibility and accountability to mayors and local leaders is that they will know best the organisations that they need to involve in tackling economic inactivity, delivering the youth guarantee and embedding jobcentres into local communities. There is an additional £900 million in the shared prosperity fund for 2025-26, and that is a key element that we need to join up with the rest of these measures, but if the hon. Lady will write to me with more detailed information, I shall be happy to look at it.
Nadia Whittome (Nottingham East) (Lab)
Barriers to employment and a lack of workplace support for disabled people remain persistent challenges, along with inadequate social security payments for everyone regardless of employment status. Can my right hon. Friend reassure disabled people that the Government’s new support measures will not be conditional on their being able to work, and that no one will be sanctioned for non-attendance at medical appointments?
Liz Kendall
Sanctioning people because they use the NHS to make themselves as fit and healthy as possible is completely the wrong approach. I understand why disabled people are worried when they hear talk about helping people into work or reforms of sickness and disability benefits—they are worried because of what has happened over the past 14 years—but we are determined to break down those barriers to work. I think that many disabled people, given the right help and support and the right flexibility to work, could work and would want to work. That is what we are focusing on, and that is what we are determined to deliver.
Bobby Dean (Carshalton and Wallington) (LD)
A fantastic local social enterprise in my constituency has been helping adults with disabilities back into work. It recently set up a café that is run entirely by adults with learning disabilities. How does the Department plan to take evidence from innovative organisations of that kind, and will the Secretary of State meet members of this organisation to find out about the work it has been doing?
Liz Kendall
The reason I am so passionate about devolving responsibility and accountability to local areas is that it is intended to engage precisely the kind of organisation that the hon. Gentleman has mentioned. For instance, I know the various organisations in Leicester but I do not know those in his constituency, so I believe that we need a much more localised system. If he will write to me with the details, I shall be very keen to look at them.
Claire Hughes (Bangor Aberconwy) (Lab)
Measures such as the young person’s guarantee, which are already working successfully in Wales, are welcome. Could the Secretary of State tell us a bit more about how she will work with the Welsh Government to deliver on the plan to make work pay?
Liz Kendall
As my hon. Friend says, there is already a young person’s guarantee in Wales. The jobcentre reforms will look different in Wales because the Welsh Government are responsible for the careers service, but we want to work with them and with employers to overhaul their approach, to unleash the ideas of our work coaches and free up their time to focus on those who need help the most, and to ensure that our jobcentres become the first port of call, not the last, for employers to recruit their next star employee. We want employers to be much more joined up with local skills support and health support. We will be having those conversations with the Welsh Government, and I am keen to receive my hon. Friend’s input as well.
Alison Bennett (Mid Sussex) (LD)
My constituent Diana has a daughter who has autism and lives independently with some low-level support. She previously had a part-time role while living in Bath, with help from an employment support job coach, and she wishes to do the same having now moved to my constituency. However, she has found that much harder since moving, and is yet to find similar support in Sussex. How will the Secretary of State tackle the postcode lottery that exists for those in need of extra help to get into employment?
Liz Kendall
I am very sorry to hear that Diana’s daughter has not received the level of support that she had before. It is clear that with the right support she will be able to engage with the world of work as well as leading an independent life, which is what she wants. Our reforms are intended to ensure that such support is available everywhere. If the hon. Lady wishes to forward the details of that case, I shall be happy to take a look at them.
Richard Burgon (Leeds East) (Ind)
It is vital that people are helped into fulfilling, well-paid work so that they can realise their potential. The Secretary of State rightly mentioned the importance that she places on discussing these changes and reforms with disabled people and disabled people’s groups. In the course of her discussions, will she ask those people and groups about the work capability assessment? Many people who visit my constituency surgery feel degraded and demeaned by the WCA tests, and many of the decisions that are made turn out to be wrong and are successfully appealed against later.
Liz Kendall
As my hon. Friend will know, that is why the manifesto on which we were all elected said that we would reform or replace the work capability assessment. People wait for that assessment, and for the personal independence payment, for an average of between 14 and 18 weeks, and about 70% of decisions on the WCA and PIP can be overturned at tribunal. We need a system that gets the decision right first time, because that is what disabled people need and deserve.
Siân Berry (Brighton Pavilion) (Green)
The Secretary of State has given us some positive new spending plans today, but she has also given some mixed messages to young people, with some investment on the one hand and new conditions, which she calls responsibilities, on the other. Will she commit herself to working with and empowering young people to shape this new spending in local areas and potentially challenge any new conditions on support? I am thinking in particular of neurodiverse young people, whose perspectives are vital and who are worried about what this will mean for their wellbeing and life chances.
Liz Kendall
The White Paper will provide for a new youth employment panel so that we can genuinely engage with young people in developing our proposals. I believe that it is vital for people to be in education, employment or training when they are young, because if they are not, the impact can be lifelong. To those who lack basic skills, today’s world is brutal, and being unemployed when young can have a permanent impact on someone’s job prospects and earnings potential. Alongside genuine new opportunities, there should be a responsibility to take them up—and do you know what? I have never met a young person who did not want to work, who did not want to obtain skills, who did not want a chance. We will fulfil our side of the bargain, and meet our responsibilities to provide those opportunities. I believe that, just as they did when the last Labour Government set up the new deal for young people and the future jobs fund, young people will take up those chances.
Sam Carling (North West Cambridgeshire) (Lab)
I thank the Secretary of State for coming to the House to announce these measures. I am pleased to see that Cambridgeshire and Peterborough has been included as one of the areas for trailblazing the new youth guarantee. On Friday, I held a roundtable with local businesses, and one of the main themes that emerged was the lack of ability to recruit skilled people locally. Will the Secretary of State explain how these measures will help to address the situation?
Liz Kendall
I thank my hon. Friend for his question. I have already spoken quite a lot about changes to the apprenticeship levy, which are important, but there are many other things that we can do. We have seen real success with sector-based work academies, which are run by jobcentres. Those are short, six-week courses that give the specific skills an employer needs, alongside guaranteed work experience for the potential employee and a guaranteed interview. They have had huge success for people looking for work and for employers, because they get someone with the skills they actually need. We are committed to doing that this year, and I hope we will roll it out further. That is just one of many examples of how we can change our jobcentres and the DWP to better serve employers and their needs.
Lisa Smart (Hazel Grove) (LD)
Stepping Hill hospital in Hazel Grove has a huge repairs backlog, which is reported to cost £130 million. We have had buildings knocked down because they are no longer safe, medics wading through flooded corridors and, most recently, a light fitting falling down in a delivery suite when the couple were in active labour. This situation has a massive impact on waiting lists and, consequently, on how much my residents can work, including Anthony, who got in touch yesterday to say that he is waiting for rehab after having a heart attack in June. Can the Secretary of State confirm that any extra funding will go towards what local communities need in order to get back to work? Many of my constituents are as keen as mustard to do so, but they are on waiting lists. Even the most wonderful work coach can do very little when somebody is awaiting surgery.
Liz Kendall
The hon. Lady raises a massively important point, and I am really sorry to hear about what her constituents are experiencing. We have to get people back to health and back to work. It is no wonder that so many people are out of work due to long-term sickness, given that waiting lists are at near-record levels. That is why my right hon. Friend the Health Secretary is sending in extra help, including doctors, to drive down waiting lists in the areas that need help the most. It is a no-brainer that we have to get people off waiting lists to get them back to work. That is what I mean when I say that a healthy nation and a healthy workforce are two sides of the same coin.
Jen Craft (Thurrock) (Lab)
Thurrock Lifestyle Solutions in my constituency is an excellent example of good practice in helping disabled people enter and stay in the workplace. It is particularly successful because it embodies the maxim, “Nothing about us without us”, as it is run by, led by and designed by disabled people themselves. Will the Secretary of State commit to taking such examples of best practice into consideration, and to ensuring that the voices of disabled people and those with long-term health conditions are put at the very heart of the strategy?
Liz Kendall
Yes. What my hon. Friend and many hon. Members have highlighted today are lots of individual examples of really good working, but we are not joining them up. They are not a central part of our employment system, but they absolutely should be. We know that we need extra investment, and the Chancellor has put £240 million into this endeavour, but we are not getting the most out of the money we are spending because it is not co-ordinated and joined up. That is what we mean by delivering investment and reform together. If it is locally led and involves people who are doing all this fantastic work, we can make a really big difference.
Sammy Wilson (East Antrim) (DUP)
I welcome the initiatives and recognise that this is not a problem that has been created by the Government; it has been with us for a long time and started long before July this year. Northern Ireland has the highest level of economic inactivity in the UK, despite the fact that I can think of many initiatives in my own constituency for people with learning difficulties, for apprenticeships in certain sectors, for the work of local colleges and so on. Despite all that, the problem persists—and that is in a place with almost full employment. Can the Secretary of State give an assurance that, despite a Budget that will make it more difficult to recruit, she can set objectives for the number of people she believes can be brought from unemployment into work as a result of the initiatives?
Liz Kendall
The right hon. Gentleman raises many important points. As I said earlier, it is absolutely the case that Northern Ireland has the highest level of economic inactivity in the UK. We will set clear objectives for our plans as we work with the devolved Administrations, and at local level, to get the levels of economic inactivity down. That will be challenging because, as I said earlier, only 3% of people who are economically inactive get back to work each year. We need to increase that, and the only way we can do it is by more fully joining up work, health and skills support. Too much of the focus of welfare reform over the past 14 years has been on the benefit system alone. Clearly, the benefit system can incentivise or disincentivise work. We want it to incentivise work, but we also know that we need to join up work, health and skills if we are to get every part of the United Kingdom working again.
Madam Deputy Speaker (Caroline Nokes)
This statement will run until 3 o’clock, so short questions and short answers would be very helpful.
Andrew Lewin (Welwyn Hatfield) (Lab)
It is a sad reality that there are fewer people in work today than in 2019, before the pandemic, so I am under no illusions about the scale of the challenge. When I talk to young people in Welwyn Hatfield, the thing that most concerns me is that they often cite problems with their mental health as being a barrier to getting into work or progressing in work. Can my right hon. Friend reassure me that she will work in lockstep with the Health Secretary? We on the Labour Benches understand that investment in a healthy workforce is a down payment on future prosperity for us all.
Ian Sollom (St Neots and Mid Cambridgeshire) (LD)
St Neots in my constituency is the largest town in Cambridgeshire, and it does not have a jobcentre; residents have to travel up to Huntingdon each week for their benefits. In the absence of a jobcentre, social enterprise has taken place. Last week I attended the launch of the St Neots citizen hub, which aims to connect individuals with opportunities and employers with talent. It provides a safe space in the heart of the community to address the fundamental issues of skills gaps—including life skills—social isolation and financial insecurity, and it is a great example of the new model for jobcentres. Will the Secretary of State ensure that staff at the jobcentre in Huntingdon can come down for one day a week so that residents do not have to keep making the journey up to Huntingdon?
Liz Kendall
That is a really important point. We want to see more of our work coaches going to where people are, rather than always expecting them to come in. If all that help and support is being provided at the St Neots citizen hub, it sounds like exactly the sort of place where our work coaches should be based, and I will certainly bring that up with them.
Amanda Martin (Portsmouth North) (Lab)
These changes are fantastic and are much needed to get Britain back to work after 14 years of dismissal and neglect of real lives and real people under the last Government. However, areas such as Portsmouth North do not have a devolution deal yet. Can the Secretary of State provide details on how those not in work in Portsmouth North will be able to get support and get back into work, and on how we can make our jobcentre accessible, to lift children out of poverty and to lift people back into the community?
Liz Kendall
I reassure my hon. Friend that it is the same for me and my city—we do not have a devolution deal. We are overhauling our jobcentres, and tackling economic inactivity with local “Get Britain Working” plans and our youth guarantee. Regardless of whether people are part of a mayoral or combined authority, that work will be led locally, including through the local council. We are determined to deliver in every corner of the country, because we believe that everybody deserves an opportunity to work. That is what our country needs to get growing again.
Richard Foord (Honiton and Sidmouth) (LD)
Steven Tysoe from east Devon used to be a Metropolitan police officer in London, and he showed me footage of his involvement in the riots in the capital over a decade ago. He was severely injured and was regarded by the DWP as disabled. Under the new right of disabled people to work, will the Secretary of State ensure that public servants who have been injured in the line of duty will not get hounded repeatedly by assessors?
Liz Kendall
I do not want to see people being hounded. If they are able to work, I want them to get the support they need to do that. That is the big challenge that we face. There are more disabled people working than ever before, but for many others their conditions might fluctuate and the world of work and the benefit system need to understand that. I am interested in providing people with support not hounding them—there should of course be conditions and responsibility within the social security system, as has been the case since it was set up—and I hope that is not happening to the hon. Gentleman’s constituent. If it is, perhaps he will write and tell me more about it.
Shaun Davies (Telford) (Lab)
Those who can work should work, but so should the support services. I welcome the Secretary of State’s statement on transforming that public service, which embraces many of the principles of the work done by the Local Government Association on “Work Local”. In Telford and Wrekin, where I was council leader, we were driving down youth unemployment under the previous Government, but we were expected to pay a charge to the DWP to share data. Will the Secretary of State assure me that that will not happen under these plans to work local?
Liz Kendall
It seems to me to be completely the wrong approach to put barriers in the way of data sharing. Some of the best innovations—I am thinking particularly of Barnsley council—have shared data between the health service, the jobcentre and the DWP about people facing barriers to work and what needs to happen to put that right. We have to enable that to happen everywhere. I want to tear down those barriers, not put more up, so I will definitely take away that issue.
Jim Dickson (Dartford) (Lab)
I welcome the innovation and energy in the White Paper. It will make a huge difference to people and businesses across the country. In relation to the welcome announcement of eight trailblazer schemes, can the Secretary of State set out how young people in areas without mayoral combined authorities will see support, including my residents in Dartford and across the Thames estuary, where we want to see the fair growth that the Government are offering?
Liz Kendall
I 100% want young people, and all my hon. Friend’s constituents in Dartford, to have the same chances. As I said earlier, I do not have a combined authority in my city, so I am acutely aware of this issue. This will be for local councils to lead. They will be developing local “Get Britain Working” plans. They will be the responsible and accountable body over our youth guarantee. We have to deliver this everywhere because talent is everywhere but opportunity is not, and that is what we all came into politics to change.
Andrew Pakes (Peterborough) (Lab)
This is a momentous White Paper by a momentous Secretary of State. Yesterday, I had the great privilege to take my right hon. Friend to Peterborough college to meet excellent businesses and apprentices doing brilliant work, including EML, Baker Perkins, Taylor Rose, Codem and Gen Phoenix. Those businesses and learners are excelling in a system that has failed too many of our young people. Apprenticeships are down and youth unemployment is up in my city. Can my right hon. Friend tell us how quickly we can get going on these new trailblazers?
Liz Kendall
I thank my hon. Friend for an amazing visit yesterday, and I hope he will pass on my thanks to Rachel at the local college and to all the local businesses and apprentices. I agree with him: the number of apprenticeship starts for young people dropped by 38% under the previous Government’s apprenticeship levy, and in Peterborough more than 1,350 young people are claiming benefits, with the majority not in work, so we must act swiftly, and we will. These programmes are starting immediately in the new year. I look forward to working with him and all those businesses and the college in Peterborough to put our plans into action, because we are determined to deliver.
Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests and to the work that I did prior to prior to entering this place. It is difficult enough for a disabled person to enter employment; it is even more difficult for a disabled person to remain in employment if the employers are not aware of or not accommodating their disabilities and the reasonable adjustments that they might need. Within the debate on this White Paper, will the Secretary of State ensure that the work of exemplar employers is picked up and credited? There must be a recognition of the value that disabled people can bring to all workplaces. I also invite her to come and meet my old team in the employability service within NHS Lanarkshire, who have worked not just with Project Search but with disabled—
Liz Kendall
The issue that my hon. Friend raises is so important, and Sir Charlie Mayfield, who will be running our “Keep Britain Working” review, will indeed look at best practice among some great employers who understand what needs to happen to help disabled people get work and stay in work. If my hon. Friend writes to me about that exemplar working, I will make sure that he sees it.
Dr Scott Arthur (Edinburgh South West) (Lab)
Yesterday I was proud to host a reception from the Royal National Institute of Blind People, at which I heard that, across the UK, people with failing eyesight are not getting the support they need from the health service, from local authorities or from employers, and that they are falling out of work because of this. Can this be addressed as part of the programme being outlined today?
Liz Kendall
We will certainly speak to the RNIB to ensure that those points are included as we take our “Get Britain Working” White Paper forward.
Blair McDougall (East Renfrewshire) (Lab)
If we search the record of this place, we see the phrase “no child left behind” mentioned over and over again, but during the pandemic, children were left behind. They have been washing up on the shores of social work, of the police sometimes, and of childhood mental health services, and I know from visiting my jobcentre in Barrhead that they are now washing up on its shores as well. What will this White Paper do to help that covid generation who were left behind?
Liz Kendall
When I visited my jobcentre in Leicester after being appointed to the work and pensions role in opposition, the very first thing its manager said to me was that the big problem was young people and mental health—the covid generation. They deserve more opportunities to earn and to learn. The country must do this. For me, the most concerning problem that we face is the rapid increase in young people not in education, training or employment. We know that we can deliver the youth guarantee, as we did the new deal for young people and the future jobs fund when we were last in government. This is a version of that, facing the problems of today and tomorrow to give that pandemic generation the chances and choices they need to build a better life.
Mr Mark Sewards (Leeds South West and Morley) (Lab)
May I start by welcoming the statement and the White Paper? The Secretary of State has confirmed that we are the party of work. There is so much good stuff in the statement and the White Paper, including reforms to jobcentres, the youth guarantee and joined-up health and job support, but I particularly welcome the talk of a right to work. Disabled constituents tell me that they are desperate to get into employment but cannot find employers who meet their needs. Without knowing the specifics, what general assurances can my right hon. Friend give those constituents that they will be able to find work under this White Paper?
Liz Kendall
This Government understand the importance of whether the benefit system incentivises or disincentivises work, but we must also address people’s skills, the barriers to work, including for disabled people, and the need to work much more closely with employers so that they understand the benefits of keeping people in work or getting them back to work. This is a huge agenda, and I think the DWP has been too centralised and too siloed in not joining up all this support. Our work coaches are desperate to make this happen, and under these reform programmes that is exactly what we will do.
John Slinger (Rugby) (Lab)
Does my right hon. Friend agree that supporting people into work, through Government action nationally and, of course, locally, is an important part of being pro-business? Will she expand briefly on how the measures she has set out will benefit businesses of all sizes in my constituency, and will she reassure them that we are not only the party of work but a pro-business party?
Liz Kendall
Businesses in Rugby and across the country always say that they are desperate to recruit people with the right skills. If they do not have the right people, they will not be able to expand and thrive. This is a pro-business strategy to get Britain working again, so that we get Britain growing again. My hon. Friend the Minister for Employment says that we are the human resources department of the growth mission. I hope businesses in Rugby will see that and work with us to make sure we get it right.
Paul Waugh (Rochdale) (Lab/Co-op)
I warmly congratulate the Secretary of State on all her hard work to deliver this White Paper, which proves not only that hers is a Department for work but that Labour is the party of work. Whereas, judging from the sea of green opposite, the Tories are a party of slackers.
I warmly welcome the fact that Greater Manchester is one of the trailblazer areas. What is the Secretary of State most excited about in Andy Burnham’s plan to help tackle this massive problem in Greater Manchester?
Liz Kendall
Under Andy Burnham’s leadership, Greater Manchester is pioneering some of the changes that we want to see by fundamentally joining up work, health and skills support, by commissioning new talking therapy services for people seeking work, and by creating a new service to broker connections between jobseekers and employers. This will make sure that employers get the staff they need while also making the necessary adjustments.
We want to build on that and expand it, because we are indeed the party of work. We believe that work brings self-respect, dignity, control and improved living standards. I am very proud of that, and I hope and believe that these reforms will deliver in every corner of this great nation, so that we invest not just in Great Britain but in great Britons—this country’s greatest asset.
“Get Britain Working” White Paper
Liz Kendall Excerpts(2 weeks, 2 days ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
Today, the Government have published the “Get Britain Working” White Paper—bringing forward the biggest reforms to employment support in a generation, and turning a Department of welfare into a genuine Department for work. This takes the first steps towards delivering our bold ambition of an 80% employment rate, through a decade of national renewal.
The UK is the only country in the G7 whose employment rate has not returned to pre-pandemic levels. We have a near-record 2.8 million people out of work due to long-term sickness or disability. Almost a million young people are not in education, employment or training. Millions are stuck in low paid, insecure work.
To turn the page on this, nothing short of a fundamentally different approach is needed. Our White Paper brings in three major reforms to:
Create a new jobs and careers service, overhauling jobcentres from a one-size-fits-all service that overwhelmingly focuses on administering benefits into a genuine public employment service providing personalised help and support. We will bring jobcentres together with the National Careers Service in England, beginning with a pathfinder early next year. We will work closely with mayors and local leaders to ensure the new service is rooted in local communities and properly joined up with local health and skills support. We will work closely with employers, so that it better meets their needs. We will also test, trial and develop a radically improved digital offer, using the latest technologies and AI to provide up-to-date information on jobs, skills and other support, and to free up work coach time. This is backed with £55 million of initial funding.
Establish a new youth guarantee in England to ensure that every young person is earning or learning. We will bring together all the different support for 18 to 21-year-olds, under the leadership of mayors and local areas, to ensure that all young people have access to education, training, and employment opportunities once they reach 18, and that no one misses out. Backed with £45 million of funding, we have announced eight trailblazers for our youth guarantee—in Liverpool City Region, the West Midlands, Tees Valley, East Midlands, Cambridgeshire and Peterborough, West of England, and two areas in Greater London. We have also announced a new national partnership to provide exciting new opportunities for young people in sports, arts and culture. We will invest in young people and give them the choices and chances that they deserve, but in return, they will have a responsibility to take up the training or work that is on offer.
Address the growing and unsustainable problem of people being out of work due to poor health. We are already taking action to drive down waiting lists, including with targeted support at the 20 NHS trusts with the highest economic inactivity. We are joining up employment and health support, for example by expanding individual placement support and piloting new WorkWell services. However, we need to go much further and faster to tackle this issue.
To meet the scale of the challenge, we will devolve new funding, powers and responsibilities to tackle economic inactivity to mayors and local areas. Because local leaders know their communities best, we will support all areas in England to produce local “Get Britain Working” plans, joining up work, health and skills support. Today we have announced eight trailblazers, backed by £125 million of funding—in West Yorkshire, North East, South Yorkshire, Greater Manchester, Wales, York and North Yorkshire, and two Greater London areas. To kick-start this work, we are funding a new supported employment programme called “Connect to Work”—backed by £115 million of initial funding for next year.
Alongside this action, we have announced an independent “Keep Britain Working” review. This will look at the role of UK employers and Government in tackling health-related economic inactivity and creating and maintaining healthy workplaces. This will be led by the former chair of John Lewis, Sir Charlie Mayfield, and will report in the autumn.
And we will bring forward in the spring a Green Paper setting out proposals on reforming the health and disability benefits system. This will ensure that disabled people and those with health conditions have the same rights and opportunities as everybody else, including the right to work; that they are treated with dignity and respect; and that the system responds to the complex and fluctuating nature of the health conditions that so many people are living with today. We will work closely with disabled people and representative organisations as we develop our proposals.
Many of the policy areas described in this White Paper are devolved in Northern Ireland, Scotland and Wales. Where this is the case, the focus of this paper is on the actions that the UK Government will take in England. The UK Government will work closely with the devolved Governments to maximise positive outcomes and learning across the UK, while respecting devolution settlements. Within Great Britain, we will work with the Scottish and Welsh Government to ensure that all aspects of our new approach to delivering employment support partner effectively with devolved provision. That includes, but is not limited to, skills, health and careers, as well as Scottish and Welsh Government funded employment support.
To deliver change, we need action across Government, which is why this White Paper has been developed with the Chancellor of the Exchequer and the Secretary of State for Education, and with input from the Department for Health and Social Care and many other Departments.
Our “Get Britain Working” White Paper brings forward the real reforms needed to help more people into better jobs, to give young people the chance of a better life, and to make sure that our employment and social security system understands that a healthy nation and a healthy economy are two sides of the same coin. This is how we get Britain working again, and how we get Britain growing again.
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Oral Answers to Questions
Liz Kendall Excerpts(1 month ago)
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Tracy Gilbert (Edinburgh North and Leith) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
This morning the nation fell silent to pay tribute to all those who have served and continue to serve in our armed forces, and those who have made the ultimate sacrifice. Today we honour and remember them. I quote the words inscribed on Lutyens’ beautiful Arch of Remembrance in Leicester from the hymn “O Valiant Hearts”:
“All they hoped for, all they had, they gave to save mankind—themselves they scorned to save”.
Some 4.3 million children are growing up in poverty—700,000 more than in 2010. That is why the work of our cross-Government child poverty taskforce is so urgent, and why we will use all levers available to increase family incomes, reduce family costs and give every child the best start in life.
John Slinger
I have had the privilege of assisting the brilliant volunteers at the Make Lunch organisation in Rugby, which provides holiday lunch clubs with play activities for entire families, including those with complex needs. Last summer it fed 25 families, last Christmas it bought slow cookers for families and this Christmas it is offering hampers. They treat families with dignity. As with food banks, is it not an indictment of the record of the last Government that such charitable support is needed in the first place?
Liz Kendall
Make Lunch sounds like an absolutely brilliant charity, and I ask my hon. Friend to pass on our great thanks for its fantastic work. That work is urgent, because the Child Poverty Action Group estimates that a quarter of children in my hon. Friend’s constituency are growing up poor. Our child poverty strategy will be published in the spring, but we will not wait to act. That is why the Budget announced a new fair repayment rate to slash universal credit deductions and give 1.2 million of the poorest households £420 on average a year, lifting thousands of children out of poverty.
Tracy Gilbert
Previous Labour Governments have tackled not only poverty but its root causes. Can my right hon. Friend outline how the child poverty taskforce will identify and tackle the root causes of poverty in my constituency and across the UK, to ensure a permanent end to child poverty?
Liz Kendall
I am sure that, like me, my hon. Friend thinks that it is unacceptable that an estimated one in six children in her constituency is growing up poor. We have taken immediate action to help the poorest families in Scotland through our fair repayment rate, which will benefit 110,000 households in Scotland. We are tackling the root causes of poverty with our reforms to make work pay, tackle exploitative zero-hours contracts and create more good-quality jobs in every part of the country.
Patrick Spencer (Central Suffolk and North Ipswich) (Con)
Child poverty is a scourge in British society, and I am grateful that the Secretary of State is bringing forward a child poverty strategy. Has she decided how to measure child poverty? May I warn her against using the much discredited relative measure, which, as we know, shows poverty decreasing during times of economic decline and increasing during times of economic growth? I implore her to use an absolute measure, which has a much better record of showing deprivation and long-term increases and improvements in living standards.
Liz Kendall
I am afraid I will disappoint the hon. Gentleman: we will look at relative poverty after housing costs, but we will go further and look to alleviate the very deepest poverty. It is appalling that hundreds of thousands of families are forced to rely on food banks—something that I know only too well from my time chairing Feeding Leicester. We will look at relative poverty, deep poverty and what it will take to give every child the very best start in life, by bringing together support from public services, charities and other groups. That is the way to bring down poverty and make the changes sustainable.
Jim Shannon (Strangford) (DUP)
Northern Ireland has some of the highest child poverty figures in the whole of the United Kingdom of Great Britain and Northern Ireland. I am sure that the Secretary of State wants to help. We have had a 70% increase in food bank usage in my constituency in the past 12 months, which is an incredible indication. Will she kindly tell me what discussions she has had with her counterpart in the Northern Ireland Assembly on what more can be done to help?
Liz Kendall
The Minister from Northern Ireland is a member of our child poverty taskforce. I hope to visit soon and the co-chair of the taskforce, the Secretary of State for Education, my right hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson), also plans to visit. We have introduced the new fair repayment rate to slash the level of universal credit deductions because, as food banks in my constituency have told me, that really pushes people into poverty. That is not what the Government should be doing, and that is why we have taken action. I look forward to coming to Northern Ireland to talk to the hon. Gentleman, his constituents and the organisations fighting poverty to see what more we can do.
The Secretary of State for Work and Pensions (Liz Kendall)
The legacy we inherited is almost 1 million young people not in education, employment or training—nearly one in eight—with all the long-term consequences we know that can bring for their future earnings, job prospects and health. That is why our new youth guarantee will ensure that every young person is earning or learning, which is better for them, better for the economy and better for our country as a whole.
Andrew Pakes
The DWP has described Peterborough as a national youth unemployment hotspot. In September, the youth claimant count was running at nearly double the national average. Places like Peterborough college, through its Jobsmart provision, are already pulling together a coalition to respond to that challenge. I welcome the Government’s youth guarantee and “Get Britain Working” plans to ensure that young people in places like Peterborough are given the opportunity to earn or learn. Will the Secretary of State please confirm a timetable for the publication of the White Paper?
Liz Kendall
The “Get Britain Working” White Paper will be published imminently, backed by £240 million of investment announced by the Chancellor in the Budget. I look forward very much to talking to my hon. Friend and the organisations that are working so hard locally, because I believe that the man, or even woman, in Whitehall can never know what is best in Peterborough, Leicester or Leeds.
Mr Richard Holden (Basildon and Billericay) (Con)
A small business in my constituency to which I have spoken over the last few weeks has raised concerns about the impact of the national insurance rises in the Budget on, in particular, those in lower-paid work, who in many cases are young people starting their jobs. What impact do the Government think that those rises will have on young people and youth unemployment?
Liz Kendall
Just last week I visited a very large employer in my constituency, Tesco, and saw the fantastic work that it is doing with the King’s Trust to ensure that more people get into work and stay in work. It is determined to work with us and our local schools, and employment and other providers, because they know that rather than writing off nearly a million young people, which led to the situation that we inherited, this new Government have a plan to get people into work, enable them to get on in work, and ensure that every young person has the chance in life that he or she deserves.
Mr Speaker
I call the new shadow Secretary of State, and welcome her to her post.
Helen Whately (Faversham and Mid Kent) (Con)
May I say how nice it is to be sitting opposite the right hon. Lady again, albeit, regrettably, having swapped places with her? I enjoyed our exchanges on social care during the last Parliament, and appreciated our constructive conversations during the pandemic, although, given how well she knows the care brief, I suspect that she was gutted, as I was, to see the incoming Government abandon the care cap and scrap more than £50 million of funding for social care training. The consistent feedback from jobcentres was that the biggest barrier to young people taking up job opportunities in social care was lack of career progression, hence our reforms to create a career path for care workers and investment in training. Has the right hon. Lady spoken to her counterpart in the Department of Health and Social Care about the impact of those social care cuts on her ambitions to get more young people working or learning?
Liz Kendall
I, too, welcome the hon. Lady to her post. As she has said, while we will always have our political differences we have also worked closely and constructively on issues that matter across the House, such as the terrible problems facing social care during the pandemic. I will continue that work, and I hope that the hon. Lady will as well, in her new role.
The hon. Lady asked about the impact of what is happening in social care on people’s opportunities and chances to learn. I have already had many discussions with, among others, members of integrated care boards, and they are passionate about the opportunities that exist to get more people into work and enable them to get on in their work, including jobs in social care. Joined-up working between the Department of Health and Social Care and the Department for Work and Pensions will be at the heart of our plans to get Britain working, because, unlike some Opposition Members, we do not find it acceptable for 2.8 million people to be locked out of the workforce owing to long-term sickness. We have a proper plan to get Britain working and growing again.
Helen Whately
The right hon. Lady will know that under the Conservative Government youth unemployment fell by 380,000, and that we were tackling inactivity with our WorkWell programme, helping people to stay in work or return to work, which I am delighted to see the right hon. Lady continuing. Unfortunately, however, as a result of her Government’s Budget and Employment Rights Bill, businesses will slash the number of their employees. Moreover, the Government have just broken another promise and hiked up university fees. What advice would the right hon. Lady give a young person who is currently out of work and education, and must choose between worse job prospects and more expensive university degrees thanks to her Government’s choices?
Liz Kendall
The hon. Lady’s party left nearly a million young people not in education, employment or training, and almost a record number of people—2.8 million— out of work owing to long-term sickness. They failed to introduce reforms to join up work, health and skills properly, and they have not learnt from those mistakes. I am proud that this Government are investing an extra £240 million to get Britain working again, giving people the opportunities that they need to work and build a better life.
Lewis Atkinson (Sunderland Central) (Lab)
Samantha Niblett (South Derbyshire) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
As a lifelong champion of unpaid family carers, I am proud that the first Labour Government in 14 years have given unpaid carers the biggest ever cash boost to the amount they can earn while still receiving carer’s allowance. That means family carers can earn an extra £2,000 a year and still keep their allowance. That is the difference this Labour Government are making: supporting families who do the most important thing, which is caring for the people that they love.
Samantha Niblett
I have spoken to many people in my constituency of South Derbyshire who are taking on caring responsibilities for loved ones. I know how hard that is and I am so grateful for the job they do, but it is often a thankless task. I am glad that the Government have taken action to support people in our communities who take on caring responsibilities, but it is disproportionately women who do so. Will the Secretary of State outline how the increase in the threshold will benefit women and allow them greater freedom to work?
Liz Kendall
My hon. Friend is right: 60% of unpaid carers are women, but women spend more hours caring, so they are disproportionately represented when it comes to receiving carer’s allowance. This is a small, but significant and important, step forward. It is a signal that the new Government understand that as people live for longer and care for longer, we will have to do more to help families balance work and caring responsibilities. That is the truth of family now: it is as much about caring for our elderly and disabled loved ones as it is about caring for our own wonderful children.
Clive Jones (Wokingham) (LD)
Calum Miller (Bicester and Woodstock) (LD)
The Secretary of State for Work and Pensions (Liz Kendall)
The Budget took the first steps in this Government’s plan to drive up opportunity and drive down poverty in every corner of the country: it included an additional £214 million for our plan to get Britain working, a new fair repayment rate in universal credit to help over 1 million of the poorest households, and the biggest ever package to reduce fraud and error in the system, ensuring that every pound of taxpayers’ money is wisely spent. There is much, much more to do, but in the Department for Work and Pensions, change has begun.
Calum Miller
My constituent Kevin had to stop work in 2018 due to a medical condition. He is desperate to find a job, but has consistently found that he is not eligible for support from his local jobcentre. Kevin asked me, “How does someone who has fallen out of work get back into work?” Will the Secretary of State or a Minister meet me to discuss Kevin’s case, and see if, together, we can answer his question?
Liz Kendall
The hon. Gentleman raises an extremely important point. It is not right that his constituent, who wants to work, has suffered from a mental health problem but does not have the support that he needs. In parts of the country, steps have been taken to help provide the healthcare and other support that people need, but we need to go further, faster. My hon. Friend the Minister for Employment will indeed meet the hon. Gentleman. Let’s get cracking on this and see what we can do.
Josh Dean (Hertford and Stortford) (Lab)
Helen Whately (Faversham and Mid Kent) (Con)
The Conservatives are the party of work and aspiration, and once again, we left office with unemployment at a historic low. We all know that Labour always leaves unemployment higher than when it came into office, but rarely has it seemed in such a hurry to achieve that. Its first Budget will, according to the Office for Budget Responsibility, cost the country 50,000 jobs in the next few years alone. What assessment has the right hon. Lady made of the cost to her Department of those job losses?
Liz Kendall
May I gently say this to the hon. Lady? She should be apologising, because we have record numbers of people out of work due to long-term sickness; one in eight young people is not in education, employment or training; and people are locked out of the world of work because the Conservatives failed to make proper plans to get people into work and on in their work. Until Conservative Members face up to their responsibilities, and to the cost to the taxpayer of their mistakes in not getting people with long-term sickness into work—£25 billion extra over the course of the forecast period—they will remain on the Opposition Benches.
Helen Whately
I wonder if the Secretary of State did not hear my earlier question; I said that I was grateful that she is continuing the work that we did in government, through the WorkWell programme, to help people in ill health into work by joining up healthcare and employment. However, the point I was just making, to which she did not respond, was that 50,000 jobs will be lost as a result of Labour’s Budget. That is not the only thing frightening the life out of businesses at the moment—
Mr Speaker
Order. I did make the suggestion that you might come to the end of your question, but you decided to carry on reading, so I will have to stop you. I call the Secretary of State.
Liz Kendall
I am very proud of a Budget that invests in the long-term growth that this country needs, that gives a pay rise to the 3 million lowest-paid workers, and that invests in the NHS so that people can get back to health and back to work. That is the change that this country desperately needs.
Ben Goldsborough (South Norfolk) (Lab)
Income Tax (Charge)
Liz Kendall Excerpts(1 month, 1 week ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
The first Labour Budget in 14 years—the first ever Budget delivered by a woman Chancellor—shows the difference that this Labour Government are already making. We are fixing the foundations of the public finances to bring the stability that our economy needs, putting more money into people’s pockets after the worst Parliament for living standards on record, beginning to turn the corner on our vital public services, with more appointments in the NHS and more teachers in our schools, and making the long-term investments in infrastructure and skills that our country needs in order to grow our economy and seize the jobs and opportunities of the future.
In the Department for Work and Pensions, the message from this Budget is clear: we will tackle the unacceptable levels of fraud that we have inherited, because every pound of taxpayers’ money must be wisely spent and go to those who need help the most. We will drive up opportunity in every corner of the country with our plan to get Britain working, because this Labour Government believe that work is the key to building a better life and to growing our economy. We have made a start on driving down poverty too, because, unlike Conservative Members, we know that children cannot fulfil their potential without food in their bellies and a roof over their heads, and our country cannot fulfil its potential when the talents of so many bright children and young people are being denied.
Getting a grip on the public finances is the first step in delivering all these changes. Without strong foundations, we cannot deliver a thriving economy, decent public services or sustainable increases in living standards for families and pensioners. We did not choose to inherit the mess that we found in the public finances and our public services, but we have chosen to level with the public about the scale of the challenges and how we intend to deal with them.
Conservative Members have still not faced up to their responsibility for the state in which they left the country. There is a £22 billion black hole in the public finances this year, with billions of pounds overspent on a failing asylum hotel system. New hospitals, roads and train stations were announced, without the money to pay for them. Vital compensation schemes for infected blood and the Horizon scandal were set up, without the funds to deliver them. The country’s reserves were spent three times over.
That is before we even get to the state of our public services. Millions of patients have been left waiting for NHS treatment, often in agony and pain. Victims have been left waiting months or even years for justice in our courts. Our prisons are overflowing, and our schools literally crumbling. As my right hon. Friend the Chancellor of the Duchy of Lancaster has said, this could have been a Budget where we looked at the state of the country but ducked the difficult decisions. We could have tried to kid the voters, paper over the cracks and then hope that something better somehow comes along. But we chose not to do that, because that is precisely the approach that got us into this mess in the first place, and because in politics, as in life, you do not deal with a problem by ignoring it, ducking it or pandering to it; you deal with problems by facing them head on.
We have chosen to get the public finances back on track, to protect the payslips of working people, to start turning the corner on our public services and to invest in the long-term infrastructure our country needs. In order to deliver that, we have made tax changes, which is never easy to do, and asked some businesses and wealthier people to pay some more. Hand in hand with this balanced approach, however, the Chancellor has set out tough new productivity, efficiency and savings targets of 2% this year for every single Department. Under this Labour Government, investment in our public services will always go hand in hand with reform, because we cannot keep spending taxpayers’ money on the same problems without changing the way we tackle them, and because public expectations and developments in AI and new technologies are transforming the way people interact in many aspects of their lives, and the public sector must respond to those changes, too.
The need for reform in our system of employment support and social security is urgent and it is real. I want to spell out clearly and honestly for the House the facts of the previous Government’s legacy of failure. Some £35 billion of taxpayers’ money has been lost to fraud and error since the pandemic—now standing at £10 billion a year. Our employment rate is still not back to pre-pandemic levels, making us unique in the G7 group of wealthy countries, and not in a good way. We have near-record levels of people trapped out of work due to long-term sickness—a staggering 2.8 million people, with rates far higher in some parts of the country such as the midlands and the north—and 420,000 more households are predicted to claim universal credit health benefits over the next five years, increasing from a third to a half of all universal credit claims. That is the legacy of the Conservatives. One in eight of all our young people are not in education, employment or training, with all the terrible long-term consequences we know that brings.
It is not just the economic cost of this failure that is unacceptable, with a predicted £26 billion increase in sickness and disability benefits over the next five years. Above all, there is the human cost to individuals and communities when millions of people are denied the opportunity to work and earn a decent standard of living, to make connections, to get skills and to build chances for a better life, with all the benefits that that brings. We do not accept that as the future for our country or our fellow citizens.
Instead, we choose a different path. It starts with our determination to deliver value for money for every pound of taxpayers’ money, so we will bring forward a new plan to drive down fraud and error in the welfare system. Our new Fraud, Error and Debt Bill will update the Department for Work and Pensions’ powers for the first time in 20 years, so that we can keep up with the new ways that fraudsters, including organised criminal gangs, are using to take public money, and so that our powers are brought into line with other public bodies such as His Majesty’s Revenue and Customs.
We will use technology to alert us to people trying to scam the system, and to prevent errors from happening in the first place. We will recruit 3,000 more staff to crack down on fraudsters, with a focus on serious case reviews, and we will bring in new powers to recover debt, all with independent oversight and a guarantee that a human being will always take the final decision in any fraud case, to give everyone confidence in the system—something that the Conservatives utterly failed to do.
Jim Shannon (Strangford) (DUP)
Many of us understand the need to have a more focused fraud law, and that is very important, but every other week people I represent come along to me and say that they have been overpaid for their employment and support allowance, their personal independence payments or their disability living allowance. They find themselves in an incredibly difficult position, not because they are trying to defraud or take money away from anyone; it is just a simple issue of their getting it wrong. What will be done to protect those people? This is really important. We are going to have a new fraud law, but let us make sure that we protect the innocent people who make a mistake.
Liz Kendall
I absolutely agree with the hon. Gentleman. The technology we will put in place will be precisely so that we drive down not only fraud but errors in the system. He will know, for example, that we are trialling a new system for carers in which we text them if they are about to go over their allowance, so that we do not have the scandalous overpayments that caused such a problem under the previous Government.
The second major reform that we will bring in is our plan to get Britain working again. Our White Paper, which will be published in the coming weeks, will bring forward the biggest reforms to employment support in a generation, backed by an additional £240 million of investment. This will help us meet our ambition to achieve an 80% employment rate and to turn what is in reality a Department for welfare into a genuine Department for work. First, we will create a new jobs and careers service, overhauling our jobcentres so that they no longer focus predominantly on monitoring and assessing benefits but are a genuine employment service working with employers, colleges, public services and local leaders to help people to get work and get on in work.
Secondly, we will devolve powers to Mayors and local areas to join up the fragmented patchwork system of employment, skills and, crucially, health support to drive down economic inactivity and drive up employment, boosting jobs and growth in every corner of the country—because the man, or even woman, in Whitehall does not know what is best in Leicester, Liverpool or Leeds. Last, but by no means least, we will bring forward our new youth guarantee, so that every young person is earning or learning—no ifs, no buts—because we do not accept having a generation of young people without the skills or jobs they need to succeed, and we will never write off young people before they have even begun.
Our determination to help people get work and keep work does not stop there. I know only too well from my constituents and my friends how often women in their 50s and beyond are now caring for elderly and disabled relatives but wanting to work at the same time. I am proud that we are giving family carers the biggest ever boost to the amounts they can earn while still receiving carer’s allowance. That will allow them to increase their hours to the equivalent of 16 hours at the national living wage, so that they can balance work and family life. This comes on top of the independent review into the scandalous overpayment of carer’s allowance that I have already announced, led by the former chief executive of Disability Rights UK, Liz Sayce, to ensure that we learn the lessons from what happened so that it never happens again. As a lifelong champion of family carers, I am proud that we have made that announcement. Our plan to get Britain working is crucial to driving up opportunity and driving down poverty—a key priority of this Labour Government.
The fact that over 4 million children are now growing up poor, with more than 800,000 living in households forced to rely on food banks, is a stain on our society. My right hon. Friend the Education Secretary and I have already set out the framework for our bold, ambitious, cross-Government strategy to tackle child poverty. We will publish the results in the spring, but we will not wait to act, particularly for those facing the deepest poverty.
We have extended the household support fund and discretionary housing payments, with an additional £1 billion this year, so that local authorities can help families and pensioners who face the greatest hardship. Furthermore, we have introduced our new fair repayment rate to cap the level of debt repayments that can be taken from universal credit, putting an average of £420 a year into the pockets of 1.2 million of the poorest households, which will lift thousands of children and families out of poverty. When I was chair of Feeding Leicester, food banks told me that debt driven by universal credit deductions was one of the biggest reasons why people had to use food banks, which is why I know this is such an important change.
We are also substantially increasing the income of pensioners who have worked hard all their lives and who deserve security in retirement. Our commitment to the pension triple lock throughout this Parliament means that spending on the state pension is forecast to rise by over £31 billion. This includes a more than £470 rise in the new state pension from next April.
Unlike the previous Government, who left over 800,000 pensioners missing out on the pension credit to which they are entitled, we are delivering the biggest-ever drive to increase uptake. For the first time, we are contacting 120,000 people on housing benefit who may be eligible for pension credit and, to guarantee even greater uptake, we will merge pension credit and housing benefit for new claimants from 2026. The Conservatives first promised this in 2011, but they never delivered. That is the difference a Labour Government make.
There is still much more to do, but this Budget starts to turn the corner: fixing the foundations of our economy and public services, driving up opportunity and driving down poverty in every corner of the land. We are honest about the challenges we face and optimistic about the opportunities ahead. This is a real plan for real change. I commend this Budget to the House.
Mel Stride
The number of children in poverty fell by 100,000 in total. I will come to the record of this Government in a moment, but first I give way to the Secretary of State.
Liz Kendall
Figures from the Department that the right hon. Gentleman used to be responsible for show clearly that 700,000 more children now live in relative poverty after housing costs. Does he accept that? Yes or no?
Mel Stride
As the right hon. Lady knows full well, it is accepted that the key measure is absolute poverty after housing costs. She cannot flit between one measure and another when it suits her. The reality is that it is projected that 100,00 more children and 300,000 more adults will be in poverty as a consequence of the Budget.
State Pension and Benefit Rates
Liz Kendall Excerpts(1 month, 1 week ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
I have concluded my statutory annual review of state pension and benefit rates under the Social Security Administration Act 1992. The new rates will apply in the tax year 2025-26 and will mainly come into effect from 7 April 2025.
I am pleased to announce that the basic and new state pensions, and the standard minimum guarantee in pension credit, will be increased by 4.1%, in line with the increase in average weekly earnings in the year to May-July 2024.
This demonstrates our commitment to supporting pensioners, by protecting the triple lock, which benefits over 12 million pensioners. From April, the full yearly rate of the new state pension will increase by over £470.
Other state pension and benefit rates covered by my statutory review will be increased by 1.7%, in line with the increase in the consumer prices index in the year to September 2024.
This includes universal credit and other benefits; statutory payments linked to participation in the labour market; and additional state pension and pension credit elements other than the standard minimum guarantee.
These increases will apply across Great Britain.
In England and Wales, personal independence payment and other benefits to help with additional needs arising from disability, and the rate of carer’s allowance, will also increase by 1.7%. In Scotland, these are devolved matters.
All of social security, including state pensions, is a transferred matter in Northern Ireland.
I will place the full list of proposed state pension and benefit rates for 2025-26 in the Libraries of both Houses in due course.
Although not covered by my statutory review of state pension and benefit rates, I can also inform the House that local housing allowance rates for 2025-26 will be maintained at the 2024-25 levels, following their increase in April 2024; and that the benefit cap has not been reviewed for 2025-26 and will also be maintained at the 2024-25 levels.
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Tackling Child Poverty
Liz Kendall Excerpts(1 month, 2 weeks ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
Today, the Secretary of State for Education, my right hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) and I are pleased to announce that we are publishing, “Tackling Child Poverty: Developing Our Strategy”.
Since 2010, child poverty has increased by 700,000, with over 4 million children living in poverty in the UK, and 800,000 children using food banks to eat. This is a scar on our society, which holds back children’s life chances and damages our country’s prospects. Breaking the link between background and success in life is at the heart of our opportunity and growth missions.
The Prime Minister has tasked us to develop an ambitious child poverty strategy which will be published in spring 2025. This is a shared endeavour across all parts of the UK, and we can learn from action being taken in Scotland, Wales and Northern Ireland.
Our Government will tackle overall child poverty, assessed by the leading and internationally recognised measure of poverty, but also go beyond that to focus on children in deepest poverty lacking essentials, and what is needed to give every child the best start in life.
Today, our publication sets out how we will develop the strategy which will harness all available levers to deliver a reduction in child poverty this Parliament as part of an ambitious 10-year strategy which addresses root causes including:
Supporting households to increase their income, including considering social security reforms that support people into work and alleviate poverty.
Helping to bring down essential household costs.
Increasing financial resilience by tackling problem debt and helping families manage financial shocks through savings and affordable credit.
Alleviating the negative experience of living in poverty, including through supporting families and the role of public services.
Over the coming months, the child poverty taskforce will hear directly from experts on each of the strategy’s themes including children and families living in poverty and work with leading organisations, charities, and campaigners.
In October, we have invited partners in industry, regulation and the charity sector to share evidence and ideas on options to reduce essential costs for low-income families.
In November, employers, trade unions and think tanks will be invited to discuss options to increase incomes and financial resilience in low-income households.
In December, experts on children’s health, early years and education and representatives from civil society will be invited to share experience and expertise on ensuring low-income families are able to access quality services to tackle the impacts of poverty.
Ministers will take part in engagement events across the nations and regions of the UK, bringing together a diverse range of voices. A new forum of parents and carers living across the UK will be set up to ensure the experiences of children in poverty, including disabled children and those with special educational needs, are included. They will feed directly into the strategy.
Living in poverty not only harms children’s lives now, it damages their future prospects and holds back our country. Children living in poverty are denied the opportunities that should enable them to achieve and thrive. And Britain cannot see maximum economic growth when the talents of so many children are being lost. Our ambitious child poverty strategy will reduce child poverty, tackle the root causes, and give every child the best start in life.
[HCWS158]
Carer’s Allowance Overpayments: Independent Review
Liz Kendall Excerpts(1 month, 3 weeks ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
I would like to advise the House of my intention to bring forward an independent review into the issue of overpayments of carer’s allowance, in cases where earnings have exceeded the entitlement threshold.
Many unpaid carers have been pushed to breaking point looking after the people they love. It is essential that we provide eligible carers with the support they need at the time they need it. This includes support for carers on low incomes through universal credit, and for all unpaid carers through carer’s allowance.
The review will investigate how overpayments of carer’s allowance have occurred, what can best be done to support those who have accrued them, and how to reduce the risk of these problems occurring in future. I am delighted to announce that Liz Sayce OBE has agreed to lead the review.
The independent review will focus on quickly gripping the issue of carer’s allowance overpayments.
Carer’s allowance is a devolved matter in Scotland, and a transferred one in Northern Ireland. The review will therefore cover England and Wales, but we will discuss with the Scottish Government the position with respect to people in Scotland who are or have been receiving carer’s allowance while DWP has been delivering it there on behalf of the Scottish Ministers.
Further details on the timelines for the review and terms of reference will be published in due course and a copy placed in the Libraries of both Houses.
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Fraud, Error and Debt Bill
Liz Kendall Excerpts(2 months ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
I would like to advise the House that the Government will bring forward a new Fraud, Error and Debt Bill in this Parliamentary session to be tough on criminals, fair for claimants and provide confidence to the taxpayer.
Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money—including to criminal gangs. Just as we do not tolerate tax evasion, this Government will not tolerate those who defraud the social security system. We will ensure that every pound of taxpayers’ money is spent with the same care with which working people spend their own money.
The measures in this Bill are expected to save up to £1.6 billion over the next five years and will extend and modernise the DWP’s powers to stop fraud in its tracks, recover money lost to fraud and, crucially, help protect claimants who may already be on the edge financially from racking up debt.
The Government are determined to prevent incorrect payments where we can, so the DWP will be given new powers to better identify and prevent potential overpayments. These will help officials to ensure eligibility criteria are being met—including being able to see sooner where they are not—which will mean fewer claimants accruing debts and getting into financial difficulty. This will also serve to ensure every claimant is treated fairly.
We will ensure that these powers are proportionate. We will introduce safeguarding, reporting mechanisms and independent oversight, to give greater confidence to claimants that the powers are being used fairly and effectively. DWP staff will receive training on the use of any new powers. We will rely on codes of practice where they already exist and, where they do not, we will consult on and produce new codes of practice to provide further reassurance on the safe use of the powers.
Some of the DWP’s fraud powers have not been updated for over 20 years and we are currently misaligned with other Government Departments and public bodies such as HMRC.
The measures in this Bill will remedy that, giving the DWP powers to:
Better investigate suspected fraud and new powers of search and seizure, so the DWP can take greater control of investigations into criminal gangs defrauding the taxpayer.
Make changes to the penalties system, so that no one found to have committed fraud against the social security system avoids punishment, bringing increased fairness for claimants who do the right thing.
Allow the DWP to recover debts from individuals who can pay money back but have avoided doing so, bringing greater fairness to debt recoveries.
Through our eligibility verification measure, require banks and financial institutions to examine their own datasets to highlight where someone may not be eligible for the benefits they are being paid. This will help the DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity. Banks will only share very minimal information, and this will only be used by the DWP to support further inquiry, if needed, into a potential overpayment.
The powers in this Bill will be legal, proportionate and targeted to reduce overpayments, detect and prevent fraud, ensure prompter investigations and bring greater fairness to the system.
The eligibility verification measure will not give the DWP access to any bank accounts, nor any information on how claimants spend their money. The proposed new power instead helps verify benefit eligibility, using very limited information from banks and financial institutions. A human being will always be involved in any investigations and any decisions taken afterwards that affect eligibility or benefit awards, as they do now. This measure will not be used on the state pension.
This legislation will support the delivery of the Government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the Government’s commitment that they will not tolerate fraud or waste anywhere in public services, including the social security system.
Further details on the legislation will be set out when the Bill is introduced to Parliament shortly.
[HCWS114]
Oral Answers to Questions
Liz Kendall Excerpts(2 months ago)
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Gregory Stafford (Farnham and Bordon) (Con)
The Secretary of State for Work and Pensions (Liz Kendall)
May I say briefly, Mr Speaker, that as my right hon. and learned Friend the Prime Minister has said, 7 October last year was the deadliest day in Jewish history since the Holocaust, and we stand firm in our commitment to bring the remaining hostages home and secure the immediate ceasefire and aid that civilians in Gaza and Lebanon desperately need.
An estimated 880,000 of the poorest pensioners are not claiming the pension credit they are entitled to, so they do not get the winter fuel payment or pension credit of up to £3,900 a year. That is why we have launched the biggest ever drive to increase pension credit uptake and ensure that the poorest pensioners get the support they deserve.
Ben Obese-Jecty
Having spent the run-up to the election scaring pensioners into voting for them by claiming it was the Conservative Government who were a threat to their wellbeing, some of our poorest pensioners will now be forced to find out how difficult it is to keep warm huddled around Labour’s gaslight. Given that the Government’s own equality analysis states that only 100,000 of the 880,000 pensioners who are eligible for pension credit are expected to apply for it, if all those who are eligible do apply, how much more will that cost compared with the initial saving from removing the winter fuel payment?
Liz Kendall
I say gently to the hon. Gentleman that upon coming into government, we discovered that 880,000 pensioners are not claiming the pension credit they are entitled to. Given that his former Government failed to take action to deal with that issue, I suggest that instead of making that point, he works with his council to increase pension credit uptake and looks at the £1.8 million we have given to Peterborough council to make sure that all the help for pensioners, including on winter fuel, is made available.
Wendy Morton
I remain deeply concerned about the pensioners in my constituency who will not be entitled to the winter fuel payment this winter—we are now into October. Given that we now know that just 14% of pensioners in absolute poverty receive pension credit, how can the Minister justify her Government’s claim that they are focusing support on those in the greatest need?
Liz Kendall
Again, I say to the right hon. Lady that the reason so many of the poorest pensioners are missing out is that her Government failed to increase pension credit uptake. We have launched the biggest ever programme to increase uptake of pension credit. For the first time, we will be writing to all pensioners on housing benefit, and I urge the right hon. Lady to work with her local council and others to make sure that the poorest in her constituency get the money they are entitled to.
Gregory Stafford
Over 18,000 people in my constituency will lose the winter fuel payment, but this is not about figures; it is about individuals, which is why I am running a pensioners advisory service on Friday to help them with this issue. This is about people, so what does the Secretary of State say to people such as Rita in my constituency, who is looking after her husband who has multiple sclerosis and who will not be eligible for pension credit and therefore the winter fuel payment?
Liz Kendall
I know that the hon. Gentleman has focused over many years on health and healthcare issues, and I would say to him that we are in this situation because his Government left a £22 billion black hole in the public finances. Unlike Conservative Members, we take our responsibilities seriously, and I would urge him to work with his councils—they have received £7.1 million in Hampshire and £5.3 million in Surrey from the household support fund—to make sure that all pensioners get the money they are entitled to.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
I welcome the work that my right hon. Friend is doing in ensuring that the uptake of pension credit is increased, but there are genuine concerns about people who are just above that threshold who will remain in poverty—just under a quarter of a million in the north-west alone. In addition to the fantastic commitment there has been through the household support fund, will my right hon. Friend be undertaking any other mitigations to ensure that those pensioners living in poverty, particularly disabled pensioners, will not fall foul of this?
Liz Kendall
I thank my hon. Friend for her question, and I welcome her to her position as Chair of the Select Committee. Alongside our work to increase pension credit uptake, the household support fund is available for those just above the pension credit level. My own council has done a lot of work to make sure that pensioners just above that level can get extra help with the costs of heating or energy debt. There is also the warm home discount, which is available not just to those on pension credit, but again to those just above that level if they are on low incomes and have high housing costs.
Rachael Maskell (York Central) (Lab/Co-op)
I congratulate the Secretary of State on her ambition to sign people up to pension credit, but we know that about 780,000 people will not sign up in time and also that there are 1 million people in fuel poverty above that mark. Given that we are really worried now, as winter is approaching, about the impact that this is going to have, particularly on the health of older people, will she look at the work done by Energy Systems Catapult and NHS Gloucestershire on social prescribing to ensure that people can receive energy payments in that way?
Liz Kendall
My hon. Friend raises a very important point. This is not just about urging people to come forward and claim. We are writing to pensioners on housing benefit for the first time ever, and I am determined to bring forward the merger of housing benefit and pension credit, which the former Government delayed for years. I very much agree about the need to bring together social prescribing with help from the household support fund and other areas to make sure pensioners get all the help they need, and about the need to work with frontline NHS staff, as we are also doing, to make sure that the poorest who may be stuck at home with chronic conditions also know what they are entitled to.
Alistair Strathern (Hitchin) (Lab)
It is clear that one of the drivers of pensioner poverty is the sheer number of pensioners eligible for pension credit who have been left not claiming it for successive years by the previous Government. I welcome the Secretary of State’s zeal for making sure that we put that right, but how can we as Members from across the House work with her Department to make sure that there are no unnecessary barriers for those who are eligible and in need of pension credit to claiming it this winter?
Liz Kendall
I would urge all hon. Members in this House to work with their local councils, as I am doing, to make sure that those on housing benefit and other pensioners know what they are entitled to, and to make sure that their councils know that the household support fund—the £421 million we have set aside this year, despite all the problems we face—is also available to those pensioners just above the pension credit level.
Liz Kendall
In 2017, the right hon. Gentleman’s party manifesto promised to means-test winter fuel payments. Until Conservative Members know that they have to apologise to the British people for the 200,000 extra pensioners in poverty over the past 14 years, and for a £22 billion black hole in the public finances, which we are now putting right but that has put the public finances at risk, they will remain on the Opposition Benches and we will remain on the Government Benches.
Mel Stride
I think I need to correct the right hon. Lady: there were actually 200,000 fewer pensioners in absolute poverty under the previous Conservative Government. She quite rightly is pressing the uptake of pension credit, but if all those who are eligible for it take it up, that will cost £3.8 billion, which is substantially more than the saving that is scored at £1.4 billion. If she is successful in her aspiration, the costs will substantially outweigh the savings; if she is not successful, potentially millions of pensioners will be plunged further into poverty. May I ask her which it is?
Liz Kendall
There are 200,000 more pensioners in poverty, and I am happy to put those figures into the public domain to set the record straight. The savings we have put forward take into account the increase in uptake that we foresee. Unlike Conservative Members, we are determined and will do everything possible—they should perhaps ask themselves why they first announced the merger of pension credit and housing benefit in 2012 and then put it off until 2028—to change things and get people the money they are entitled to. We will bring that forward to ensure that all the poorest pensioners get what they are entitled to.
Steve Darling (Torbay) (LD)
There are 2.7 million pensioners over the age of 80 who would have benefited from the £300 winter fuel allowance. They are among the most vulnerable in our society. The right hon. Lady is right to say that the previous Government let them down, but let us not add insult to injury and have the new Government let them down. Can she reassure the House that she will reverse the regressive approach that she has taken to the winter fuel allowance, and not hit the most vulnerable people who are over 80?
Liz Kendall
I thank the hon. Gentleman for his question. He will know that this was not a decision that we wanted or expected to make. The reason we have taken it is that we have to deal with the £22 billion black hole in the public finances left by Conservative Members. But in doing so, we will as a progressive party always prioritise the very poorest pensioners. That is why we are so determined to end a situation where up to 880,000 people miss out on the winter fuel allowance because they are not getting pension credit. We are determined to put that right.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Torsten Bell (Swansea West) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
Tackling child poverty is a top priority for the new Government, and a personal priority for me. Children cannot fulfil their potential without food in their belly or a decent roof over their head, and we cannot fulfil our potential as a country when the talents of so many are left behind. That is why our new child poverty taskforce will drive action across every area of government to drive up family income, drive down family costs and give every child the best start in life.
Torsten Bell
I welcome the establishment of the child poverty taskforce. How will the taskforce ensure that lessons, including on the role of housing costs in driving up relative poverty and the necessity of growth to drive down absolute poverty, will be learnt from previous attempts to drive down child poverty in Wales and across the UK?
Liz Kendall
My hon. Friend makes a very important point about learning the lessons from the last time we were in government and lifted more than 600,000 children out of poverty, and looking at similarities and differences, not least that there are more children growing up in poverty in households, whether in the private rented sector or in social housing, and that there are more children growing up poor in a household where somebody works. Getting and creating more good quality jobs, and helping families into those jobs, is absolutely a crucial part of our child poverty plan.
Kirsty Blackman (Aberdeen North) (SNP)
Yet we have a situation where families with more children are impacted by the two-child cap and the benefit cap, and the Government are refusing to get rid of those things. At a stroke, they could lift thousands of children out of poverty and improve, overnight, their life chances. I appreciate the fact that the Government have the child poverty taskforce, but that is not making a difference to these children today, is it?
Liz Kendall
I am under no illusion about the impact 14 years of the Conservatives and the social security system has had on child poverty. That is why we are determined to take action across government to increase family incomes, drive down costs and, crucially, put in place long-term support, particularly in the early years. We will produce the strategy by spring. I am absolutely sure that every part of the plan will lift more children out of poverty.
Luke Akehurst (North Durham) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
The last Labour Government lifted 600,000 children out of poverty. Under the Conservatives, the number went up by 700,000. There are now more than 4 million children living in poverty in the UK in the 21st century. In one of the richest countries in the world, that is a complete disgrace. That is why the work of the child poverty taskforce, which I co-chair with the Education Secretary, is so urgent and so important.
Luke Akehurst
Almost a third of children in the north-east live in poverty. The problem is particularly acute in the region. Will the Secretary of State work with our Mayor of the North East, Kim McGuinness, on her excellent regional plans to reduce child poverty?
Liz Kendall
Yes, we have already met Kim McGuinness, on 19 September, when she set out the actions she is already taking. Let me say to Members on both sides of the House that our strategy will be out in the spring, but we will not be waiting until then to act. Nationally, we have put £421 million into the household support fund to help the poorest families, and mayors such as Kim McGuinness are doing amazing work: they are working with schools to ensure that people claim the benefits to which they are entitled, and, crucially, working with businesses to help them to do all that they can to tackle in-work poverty and ensure that working families receive the money for those children.
Alison Hume (Scarborough and Whitby) (Lab)
Chris Webb (Blackpool South) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
I am determined to put transparency at the heart of the DWP, so I have today published 31 reports that were sat on by the previous Government—something that my right hon. Friend the Minister for Social Security and Disability has long campaigned for. Under this Government’s leadership, the DWP will be honest about the problems that the country faces and focused on the solutions needed to help people build a better life. That starts with our forthcoming White Paper, to get Britain working again.
Chris Webb
I first joined WASPI women—Women Against State Pension Inequality Campaign—in their welcome campaigning activity back in 2017. Seven years later, they are still fighting for justice. Can the Minister assure women in my constituency and across the country that she will act urgently, unlike the previous Government, and bring this injustice to an end?
Liz Kendall
I thank my hon. Friend for his question. I met representatives of the WASPI campaign before this Government were elected. My hon. Friend the Minister for Pensions was the first Minister to meet them in eight years. It really is a serious report that requires serious consideration. We will do everything possible to get this issue resolved as soon as possible.
Mel Stride (Central Devon) (Con)
On 10 September, two days before recess, I led a debate in this Chamber, secured by the Conservative party, on the winter fuel allowance. The right hon. Lady spoke just now about transparency, but there was no equality impact assessment made available for that debate. Indeed, on 30 August, by way of a written question, my hon. Friend the Member for Hinckley and Bosworth (Dr Evans) established that the Government had no intention of publishing that particular report. Yet on 13 September—two days after the debate and the vote, and one day after Parliament had risen—the report was made available. It was clearly, in my opinion, deliberately withheld. Does the right hon. Lady agree?
Liz Kendall
That is not true. The Conservative Government did not even allow the Office for Budget Responsibility to do an analysis of Liz Truss’s disastrous mini-Budget and sat on 31 publications that, under their own rules, should have been published. We published an equality analysis. The right hon. Gentleman will know that that was never done for secondary legislation when he was in government, but this Government will be open and transparent, which is what we are already doing.
Paul Davies (Colne Valley) (Lab)
Mr Speaker
Order. These are topical questions, so please can we keep them short? I have to try and get through the list to help others.
Liz Kendall
My hon. Friend has raised these issues with me before, and I will absolutely meet children, families and child poverty organisations from her constituency. We aim to visit every region and every devolved nation as part of that strategy, and I look forward to meeting her and her constituents then.
Vikki Slade (Mid Dorset and North Poole) (LD)
Liz Kendall
The hon. Lady raises an extremely important question, which I have discussed with a hospice and other organisations such as Marie Curie and Sue Ryder in my own constituency. I want to look at how the system can be made to work as quickly and swiftly as possible, particularly for people at this very difficult time in life, and I would be happy for the Social Security Minister and my office to contact her directly to get more information.
Marsha De Cordova (Battersea) (Lab)
Priti Patel (Witham) (Con)
With employers in Witham and across the country about to be whacked with a barrage of higher taxes, thanks to this Government, how do the Government expect employment levels to stay high? How do they expect small businesses to be at the heart of any employment strategy that they claim to have?
Liz Kendall
Under the previous Government, we had the highest taxes in 70 years, and jobcentres to which only one in six employers ever went to recruit. We will transform our jobcentres into a new jobs and careers service, so that people get the help they need, and so that employers can recruit the staff they desperately need.
Markus Campbell-Savours (Penrith and Solway) (Lab)
Graham Stuart (Beverley and Holderness) (Con)
I thank the Secretary of State for her personal commitment to transparency. Further to the question asked by the shadow Secretary of State, my right hon. Friend the Member for Central Devon (Mel Stride), will she share with the House how many thousands of people will die as a result of Labour’s choice to cut the winter fuel payment?
Liz Kendall
I am very happy to share the data: there are 200,000 more pensioners living in poverty after 14 years of Conservative government. I am also very happy to publish information showing a 152% increase in pension credit claims, thanks to the big, bold campaign run by this Labour Government.
Oliver Ryan (Burnley) (Lab/Co-op)
My constituents want a fair and robust welfare system, but they have no truck with fraud. Can the Secretary of State assure my constituents that she is doing everything she can to crack down on fraud, and to make sure that those who genuinely need help get it?
Social Security
Liz Kendall Excerpts(3 months ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
This has been a really important debate about a serious issue, with many heartfelt contributions. My hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier), the new Chair of the Treasury Committee, forensically set out the delayed and deferred decisions by the former Government that have put such pressure on the public finances. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) rightly spoke about pensioners, children and disabled people in poverty, and the need to do much more to support them. The hon. Member for North East Fife (Wendy Chamberlain) talked about the crucial issue of pension credit uptake and what we will do differently. I will say more about that later, but I reassure her that the Treasury is fully behind the action that we are taking.
My hon. Friend the Member for Shipley (Anna Dixon), who has huge experience in health and social care, talked about the need to work with those in supported accommodation, housing associations and the NHS to ensure that pensioners get the help that they are entitled to. I will spell out some of that action. My hon. Friend the Member for Rossendale and Darwen (Andy MacNae) made a strong case for targeting help to the poorest pensioners and the need to tackle the root causes of poverty, including insulating homes and bringing down energy costs. My hon. Friend the Member for Poole (Neil Duncan-Jordan) mentioned, among many things, the very long and complicated pension credit form, which I have asked the Department to reduce to make it as simple as possible.
I would like to start by setting out why we have taken the difficult decision to means-test winter fuel payments so that they are no longer available to all pensioners whatever their income, but are focused on those in the greatest need. Put simply, it is because we must fix the foundations of our economy as the first step to rebuilding Britain and making the changes that our country desperately needs, and because when money is tight, our priority must be to target resources at those who need them the most.
Opposition Members do not want to be reminded of their record and the state they left the country in, but their economic failure and reckless decisions left a £22 billion hole in the public finances this year, with a £6.4 billion overspend on the asylum system, a £2.9 billion overspend on the transport budget, and new roads, hospitals and train stations announced but not budgeted for. There was one unfunded commitment after another, and the reserves were spent three times over—spending like there is no tomorrow, with no thought for the consequences today. That is before we even begin to deal with the challenges we already knew about: NHS waiting lists at 7.6 million, more than 1 million waiting for a council home, a totally broken prison system and more than 4 million children growing up poor. Opposition Members want to deny that is the case, but the Office for Budget Responsibility is crystal clear: it was made aware of the true extent of the pressures on the public finances only after we were elected—pressures it says constitute one of the largest overspends outside the pandemic. Faced with that reality and the need to get the public finances on track this year, we took the difficult decision to focus winter fuel payments on those in greatest need.
Lucy Rigby (Northampton North) (Lab)
I am grateful to the Secretary of State for giving way. Pension credit uptake is clearly critically important. From discussions I have had in my constituency, I know there are some myths around pension credit eligibility. Will the Secretary of State please confirm the efforts she is making on pension credit uptake, and does she agree with me that it is vital we ensure everyone who is eligible for pension credit receives it?
Liz Kendall
My hon. Friend is absolutely right. I would make that point in response to the faux outrage of Conservative Members, who left 880,000 pensioners, the very poorest, not getting the pension credit they are entitled to. I urge all hon. Members to work with us that their local councils to ensure pensioners get the money to which they are entitled.
As my right hon. Friends the Chancellor and the Prime Minister have said, this is not a decision we wanted or expected to make, but when we promised we would be responsible with taxpayers’ money we meant it, because we know what happens when Conservative Members play fast and loose with the public finances: working people and pensioners on fixed incomes pay the price with soaring interest rates, mortgages and inflation.
Dame Harriett Baldwin
I thank the Secretary of State. Will she confirm from the Dispatch Box that if every pensioner who is eligible for pension credit takes it up, the cost to the Exchequer will actually be substantially more than the savings from axing the winter fuel payment?
Liz Kendall
Is that the reason why Conservative Members never took the action needed to increase pension credit uptake? We take a different approach. All the savings the Chancellor has announced take into account the increased uptake that we want and intend to achieve. When money is so tight, it cannot be right that all pensioners, including some of the wealthiest pensioners, receive a payment worth £200 to £300 a year regardless of their income.
Gavin Robinson (Belfast East) (DUP)
I thank the right hon. Lady for giving way and allowing me the opportunity, at this late stage of the debate, to speak on behalf of the people of Northern Ireland.
Not in our name, Secretary of State. This is a political choice, irrespective of the debate back and forth between the Labour Government and the Conservative Opposition. It is not for us, it is not right and this measure is a measure of shame.
Liz Kendall
I know the right hon. Gentleman will care about the increase in uptake in pension credit that we need, and that he will also care about those just above the threshold, which I will turn to later on. That is a really important issue and I will address it head on, but first I want to spell out the principle underlying the approach we have taken, which is the most help going to those who need it most and significant support for all pensioners through the pension triple lock, backed by extra help available for those on low incomes.
Pension credit goes to 1.4 million of the poorest pensioners and is worth on average £3,900 a year.
Liz Kendall
I will not.
But the truth we had to confront coming into office was that up to 880,000 of the very poorest pensioners are not even claiming the pension credit that they are entitled to. That is a national scandal, and we are determined to make that change. The previous Government did nothing to tackle this issue properly. Indeed, in 2012 they promised to merge housing benefit and pension credit, which we know would significantly increase uptake, yet when I arrived in the Department I learned it would not happen until 2028—a decision that was taken on their watch. That is completely unacceptable and, unlike the Conservatives, we will change it.
Mike Amesbury
I thank the Secretary of State for giving way and welcome the increased measures to target the 880,000 who, because of the actions of Conservative Members when they were in government for 14 years, have not received pensioner credit. There are people who have legitimate concerns about the low level of the threshold—hard-working people who have tiny pension pots. What mitigating measures will the Secretary of State put in place?
Liz Kendall
I will come on to extra help for those just above the threshold in a moment, but I want to spell out what we are doing on pension credit.
We have done more to increase pension credit uptake in the last two months than Conservative Members did in 14 years. We have written to all local authorities to ask them to identify eligible pensioners, including by sharing data. We are joining forces with Age UK and Citizens Advice to ensure pensioners check and apply. We launched a major awareness campaign, to continue right up to the deadline to apply on 21 December—and yes, pension credit will be backdated by three months—backed by 450 extra staff to ensure claims are processed as quickly as possible.
The Deputy Prime Minister, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), is working with housing associations and supported accommodation providers so that their residents know what they are entitled to. I am working with the Secretary of State for Health and Social Care, my right hon. Friend the Member for Ilford North (Wes Streeting), to ensure that frontline NHS staff can signpost older patients who may be housebound because of disabilities and chronic conditions. For the very first time, we are writing to all pensioners on housing benefit who are potentially eligible to encourage them to claim, something the Conservatives never did. In the longer term, because the only way to guarantee uptake is to make the whole process more automated, we will bring forward the merger of housing benefit and pension credit, which Conservative Members never did.
That is the extra help for the poorest that we are determined to deliver, but it is built on a bedrock of support for all pensioners through our commitment to the pension triple lock, which has seen the new state pension increase by £900 this year and £970 the year before. Our continued commitment to the triple lock means that the new state pension is forecast to increase by a further £1,700 over the course of this Parliament, including, if today’s Office for National Statistics figures are confirmed next month, an extra £460 from next April.
Paul Waugh (Rochdale) (Lab/Co-op)
When Gordon Brown introduced pension credit and lifted 1 million pensioners out of poverty, in the teeth of the opposition of the Conservative party—let us remind them Conservative Members opposed pension credit—he also introduced savings credit. Savings credit was specifically targeted at pensioners who saved for old age with a small savings pot and a second pension. What happened in 2016? The Conservative party scrapped it. Does my right hon. Friend not agree with me that we should not listen to the crocodile tears of those in the Conservative party?
Liz Kendall
I could not have put it better myself: there is faux outrage from Conservative Members about those just above the pension credit threshold, when it was their former Tory Chancellor, George Osborne, who took a red pen to it, meaning its value decreased, creating some of the problems we are now having to deal with.
There is much more we are doing to help low-income pensioners, including those just above pension credit: the £150 warm home discount; the household support fund, which we have just extended, with £500 million of additional funding that councils can use to help low-income pensioners; our warm homes plan to tackle the root causes of fuel poverty; and the fact that, because the only way to really control energy bills is through cheap home-grown energy, we have already legislated for Great British Energy. That is the difference a Labour Government make: fixing the foundations, taking the long-term decisions our country needs, prioritising help for those who need it most, helping all pensioners with the pension triple lock, and providing more help for low-income pensioners too.
We will not shy away from our responsibilities, as Members now on the Opposition Benches did. We were elected on a platform to deliver economic stability, rebuild the country and make the changes that our country needs; making it better and giving it its future back. Pensioners deserve better than the faux outrage of Opposition Members.
Question put.