Oral Answers to Questions
Debate between Mel Stride and Karen Buck(7 months, 4 weeks ago)
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Ms Karen Buck (Westminster North) (Lab)
We all want to see both unemployment and economic inactivity as low as possible, but the Office for National Statistics, quoted approvingly by the Minister a few minutes ago, reports that this spring’s quarter showed a large fall in the number of people moving from economic inactivity into employment, and that the net movement from employment to economic inactivity was the largest since the covid autumn of 2020. Given that this is the Department’s priority, what assessment has he made of why this is going wrong?
Mel Stride
My assessment of economic inactivity is that it is falling; it has fallen by around 350,000 or more since its peak during the pandemic. That leaves us below the average rate of economic inactivity across the G7, the European Union and the OECD. We are making real progress and will continue to do so.
Oral Answers to Questions
Debate between Mel Stride and Karen Buck(1 year, 4 months ago)
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Ms Karen Buck (Westminster North) (Lab)
May I also warmly welcome my hon. Friend the Member for City of Chester (Samantha Dixon) to her place?
Fifty-nine per cent. of private renters on universal credit—844,000 households—have rents above the maximum level that local housing allowance will cover. That means that they have to make up the difference, which, as we have heard, is often substantial, either by reducing spending on other necessities such as food and heating, or by getting into arrears, risking homelessness. With homelessness already rising, local authorities predicting how much more they will have to spend and the Government only today announcing an extra £50 million having to be spent on the homelessness prevention grant, does the Secretary of State accept that what the Government are saving through the freeze on housing allowance is merely popping up in additional spending elsewhere and that it is time to get a grip?
Mel Stride
As I set out, the amount being spent on housing and housing support is almost £30 billion a year. That has grown strongly over the last decade or so and is on a trajectory to reach £50 billion by 2050. The Government are therefore putting huge support into that area. In addition to LHA, there are, as I have said, discretionary housing payments. When it comes to the homeless, we have brought forward a £2 billion package to help to resolve those issues.