Budget Resolutions and Economic Situation

Debate between Mel Stride and Chloe Smith

Thursday 16th March 2023 Commons Chamber

[Mel Stride]

As I just suggested, we will take a measured and appropriate approach to the delivery of a fundamental reform of how these benefits will work. It will involve primary legislation, most likely in the next Session next year, and it will be rolled out some time after that. There will be plenty of time to ensure that we have thorough engagement with stakeholders, disabled people and those who represent them, to ensure that we get exactly those matters right.

In addition, our new Work Well partnerships programme —delivered through the health system—will pilot a new model for delivering integrated work and health support in local areas, providing employment-based targeted health support to prevent people from falling out of work or to enable a return to work quickly. For those who need more intensive help, there will be universal support. We will work directly with employers to quickly match people with jobs and provide up to 12 months of personalised place and train support. This approach means that after helping someone into work, we will stay with them to ensure that they remain in employment.

We are also investing to expand the additional one-to-one support that work coaches are already providing to disabled claimants in one third of jobcentres. From the spring, we will start to make this extra support more widely available, so that it is in place across the entire jobcentre network by 2024. We will also work with the occupational health sector and employers to reform the market and improve access to quality occupational health services. That will include testing financial incentive and support models to help small and medium-sized businesses and the self-employed overcome barriers to occupational health services.

[Chloe Smith (Norwich North) (Con)]

rose—

[Mel Stride]

It gives me great pleasure to give way to my illustrious predecessor.

[Chloe Smith]

My right hon. Friend is very kind. May I say how pleased I am to see this work making progress? Does he agree that all these factors together make for a golden opportunity to encourage employers to rise to the challenge and do more? All the support that he is laying out, and the major reforms that have been put on the table, also represent an opportunity for employers to recognise that they, too, will get support to encourage somebody to start with them, stay with them and succeed in their workplace.

[Mel Stride]

My right hon. Friend is absolutely right, and I thank her for what she did when she was Secretary of State, and before that as Minister for Disabled People, Health and Work. I am fully aware of the contribution that she made, having spent some months in the Department. She is right that we need to think about not just providing support on what one might say is the supply side, but making sure that employers are in the right place so that the demand is there. We see that across the various cohorts, including with Disability Confident and with those who interface with our 50-plus job champions, to make sure that they engage with more elderly workers in an appropriate way. She is right to raise that point.

There is little doubt that the experience and skills of older workers are a huge asset to our economy, but more than 1 million over-50s have taken early retirement. With them, they taken many skills and much experience from which business could benefit. Let me slay one myth: that older people will never return to work. We know that four in 10 50 to 65-year-olds who have left their jobs since the start of the pandemic would consider returning to work. Last year, we introduced a package of additional support for the over-50s, including DWP’s network of 50-plus champions, which is carrying out outstanding work. My right hon. Friend the Chancellor introduced significant encouragement to the over-50s through the changes he made to the lifetime allowance for pensions yesterday.

We know many people overestimate how far their savings and pensions will go in retirement, so to help more people in their 40s and 50s get a reality check about what retirement decisions mean for their long-term wealth and wellbeing, we are digitising the midlife MOT. This will deliver a fivefold increase in the number universal credit claimants who access the tool each year in jobcentres. We will also work with employers and pension providers to help nudge people to access it.

Gaining new skills and getting the right training and experience are vital to helping people move back into work, and that is why we are significantly expanding the number of placements in the DWP’s sector-based work academy programmes by 40,000 in the next two years, with around £30 million in funding just announced. Our new type of apprenticeship, returnerships, to be introduced by the Department for Education, will bring together the Government’s existing skills programmes, focusing on flexibility and previous experience and speeding up training.

Turning to parents and carers, we know that 1.7 million people say they are economically inactive because they have caring responsibilities. One of the biggest barriers to work is the affordability of childcare. To help parents return to work, the Budget expands the support on offer by providing 30 hours a week of free childcare for 38 weeks a year to eligible working parents of children aged nine months to 3 years. We will also increase support for parents on universal credit by paying the initial childcare costs for parents on universal credit up front, instead of in arrears, which we know creates one of the biggest barriers to moving into work. We are, as I have already stated, increasing the maximum amount that can be claimed.

It is right that people who can work and are available for work are helped to do so wherever possible. That is why I have put a particular focus within the DWP on testing and implementing new and innovative interventions that help unemployed people on universal credit to move into work and to support people who work only a small number of hours to progress. Through our additional jobcentre support pilot, we are rolling out daily work support across 60 jobcentres. That will occur over two weeks at two crucial points in a claimant’s journey when they are most at risk of falling out of the labour market.

We are also increasing the administrative earnings threshold in universal credit to increase conditionality. We are stepping up jobcentre engagement for partners in universal credit households who are not working or who have low earnings. Because this Conservative Government are on the side of young people, we are expanding the DWP youth offer to enable more people on universal credit to see a work coach in a youth hub or to benefit from the expertise of our youth employability coaches.

This Budget, together with our White Paper, will fundamentally change and enhance the effectiveness of the benefits system. It will provide more practical and financial support. It will boost participation in the workforce. It will turbocharge our labour market. It will unleash untapped talent up and down the country. It will pump renewed life into our businesses. It will strengthen our economy, and so strengthen our communities. It will still and will always be there to place an arm around those who need help the most. We on the Government Benches will never forget the power of work to change lives and to give to each and every one of us that vital chance—that gift—that employment brings.

Oral Answers to Questions

Debate between Mel Stride and Chloe Smith

Monday 6th March 2023 Commons Chamber

[Mel Stride]

The hon. Lady raises an important matter, and she is right to raise it on the Floor of the House. We have a number of measures that we would typically stand up in the circumstances that she describes, including a surge of local support to get jobs going and vacancies matched up with those who are sadly going to lose their jobs. I will certainly ask the Employment Minister to meet her to discuss this as a matter of urgency.

[Chloe Smith (Norwich North) (Con)]

I echo the concern of my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) about Access to Work. Can I ask what progress is being made on the disability action plan and how the Minister will ensure effective work across Government?

Oral Answers to Questions

Debate between Mel Stride and Chloe Smith

Monday 23rd January 2023 Commons Chamber

[Chloe Smith (Norwich North) (Con)]

4. What steps his Department is taking to incentivise people to return to the labour market.

[The Secretary of State for Work and Pensions (Mel Stride)]

As the House will be aware, I am currently reviewing economic inactivity—it is not satisfactory that we currently have almost 9 million people who are economically inactive—and I will be come back to the House in due course with various measures.

[Chloe Smith]

I welcome that work and wish my right hon. Friend well in concluding his review. Many disabled people and people with long-term health conditions want to work and we should help them to do so. Does he agree that the current health and disability benefits can pose a financial disincentive against trying work, and that it is right for us to look again at providing better support?

[Mel Stride]

My right hon. Friend is absolutely right. May I just say how helpful it is that, having left the Department, she continues to show such a positive and constructive interest in the matter? She is entirely right that we need to focus on what people can do when they are disabled, rather than on what they cannot do. That will be very much at the heart of the White Paper.

Oral Answers to Questions

Debate between Mel Stride and Chloe Smith

Monday 31st October 2022 Commons Chamber

[Mel Stride]

I thank the right hon. Gentleman for his warm words. That is a question that would probably be best answered by the Department of Health and Social Care, and I would be happy to look into that for him. We know that there is a long tail of people who would otherwise like to work but who are long-term sick—some 2.5 million in total—and, to go back to my earlier answer, it will be a prime focus for our Department, working with the Health Department, to see how we can assist and support them back into the workplace.

[Chloe Smith (Norwich North) (Con)]

I wish my right hon. Friend and his team every success in leading this vital mission in Government, helping people into work and protecting the most vulnerable. As he says, with more vacancies than people unemployed, and with 9 million people—and rising—economically inactive, does he agree with British business that labour shortage is one of its greatest obstacles? What is his plan to unlock the talents of those who have not recently looked for work?

[Mel Stride]

My right hon. Friend’s analysis is entirely right. We have an overheated labour market and a high number of vacancies, and the key issue that businesses up and down the country constantly raise is a lack of staff to be taken on. Broadly speaking, economic inactivity breaks down into several sectors, although I will not go through all of them; we have already touched on the 2.5 million long-term sick, and we have 900 disability employment advisers within the Department for Work and Pensions. We also have 1.2 million people who retired early, for whom we do have some schemes, but we need to give further attention to coming up with new ways forward for that group.