Oral Answers to Questions

Mims Davies Excerpts

Monday 25th January 2021 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

What recent representations she has received on removing the benefit cap.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

The proportion of individuals capped remains very low in relation to the overall UC case load and exemptions continue to apply. There remains a statutory duty to review the cap within this Parliament. However, we are in an unusual economic period, and any decision will need to consider potentially counter-intuitive and shifting trends.

[Kevin Brennan [V]]

I thank the Minister for that answer, but at a time when all of us know constituents who are struggling through the crisis which has brought them such hardship through no fault of their own, are the Government really going to impose the benefit cap on tens of thousands of families with children when the so-called “grace period” comes to an end? Is that really true? If it is, can she tell me this: how is that fair?

[Mims Davies]

The benefit cap provides fairness for hard-working tax-paying households as a clear incentive to move into a job where possible. Universal credit households are exempt from the cap if the household earnings are at least £604 a month. I reiterate to the House that the amount of individuals capped remains very low in comparison to the UC case load, at around 3%.

[Wes Streeting (Ilford North) (Lab)]

What recent assessment she has made of the effect of the covid-19 outbreak on trends in the level of child poverty.

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[Rushanara Ali (Bethnal Green and Bow) (Lab)]

What steps her Department is taking to encourage employers to participate in the kickstart scheme.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

We continue to engage with employers of all sizes to create high-quality placements for our young people to get their start on the employment ladder, and to make it even simpler, from 3 February we will remove the 30-job minimum for job applications, giving new applicants the choice to apply directly or via one of over 600 excellent approved kickstart gateways.

[Katherine Fletcher [V]]

As you well know, Mr Speaker, South Ribble has many brilliant small businesses that are keen to provide a kickstart opportunity for a young person. For example, Mark Wright Landscapes got in touch saying that it was worried that it was too small to participate. In that instance, I was able to direct them to the great North and Western Lancashire chamber of commerce, which acts as a gateway. Will my hon. Friend join me in thanking that small business and encouraging others in Lancashire and beyond to create a job and give an opportunity through kickstart to as many young people as possible?

[Mims Davies]

I would very much like to thank my hon. Friend for raising the opportunities for smaller businesses, and the great team at the North and Western Lancashire chamber of commerce for their hard work and the services they provide as a gateway organisation. This is helping many sole traders and employers in her constituency to support our young people to take up these kickstart roles, ensuring that young people have that vital wraparound support, getting them on to the career ladder and, above all, grasping future work opportunities.

[Rushanara Ali [V]]

With youth unemployment set to reach 1 million and 600,000 already unemployed, can the Minister provide some updates on how her Department will meet the 250,000 kickstart programme target that it stated it would meet? The numbers that the Secretary of State has set out today are worryingly low. Will she also consider removing the six-month requirement, where a young person has to be unemployed for six months before they qualify for the kickstart programme?

[Mims Davies]

The young person needs to be on universal credit and working with our excellent work coaches. In respect of Hoxton and Poplar, which cover the hon. Lady’s constituency, we are recruiting 27 new work coaches in Hoxton and 67 in Poplar. Since the end of September, we have been working with the new Tower Hamlets youth hub, with local employers and gateways bringing opportunities. I encourage the hon. Lady to visit her local jobcentre to see what has happened there in the past year, because I do not believe she has visited and think that would put her mind at rest.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

What steps her Department is taking to help increase levels of employment among young people (a) during and (b) after the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

This Conservative Government and I, as the employment Minister, are committed to providing support to help our young people to move into work and avoid the long-term scarring effects of unemployment, both during the pandemic and as we recover from its impact. Our plan for jobs includes an expanded DWP youth offer, kickstart and more than 100 new youth hubs to assist young people to move into meaningful, sustained employment.

[Alec Shelbrooke [V]]

Small and medium-sized enterprises in my constituency have raised concerns about the time it takes to apply for the kickstart scheme. What action is the Department taking to ensure that applications are processed as quickly as possible?

[Mims Davies]

The Department worked at pace to launch the kickstart scheme in September, with the first applications open in November. Our aim is to take forward applications within one month, but it can take longer if we require additional information. We expect the situation to improve as we adopt processes and embed learnings from the thousands of employers and hundreds of gateways that have joined the scheme early on. My hon. Friend will be pleased to hear that the application from Fotofabric Ltd in his constituency has now been approved.

[Rob Roberts (Delyn) (Con)]

What steps her Department is taking to help people whose sectors have been particularly affected by the covid-19 outbreak to switch careers.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

Our plan for jobs is providing a range of vital, tailored employment support for all jobseekers who are looking to move sector; targeting support for those impacted by the pandemic; and linking into local recovery plans. The plan includes DWP’s job finding support, or JFS; sector-based work academy programmes, or SWAPs; job entry targeted support, or JETS; and our new restart programme. It will also utilise the forthcoming UK shared prosperity fund.

[Rob Roberts [V]]

Back in 2013, my constituency of Delyn had an unemployment rate of 5.2%; thanks to successful aspirational Conservative policies, this was down to just 3% before the pandemic took hold, but now sits at around 6%. With some sectors—particularly tourism and hospitality—more severely impacted than others, will my hon. Friend confirm that, despite many things being in the hands of a Welsh Government who, I hope, are in their final months in power, the UK Government will continue to provide support and generate opportunities for my constituents to get back into work as soon as possible?

[Mims Davies]

I am happy to confirm that DWP will continue to work hard to support people like my hon. Friend’s constituents. I know that the staff in his three local jobcentres are already delivering training, mentoring circles and kickstart prep courses with partners such as Google, Amazon and the Prince’s Trust, as well as working to develop new resources to help to support local jobseekers.

[Kerry McCarthy (Bristol East) (Lab)]

What recent assessment she has made of the effectiveness of the Government’s definition of care, support and supervision for benefits recipients in (a) supported and (b) exempted housing.

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[Theresa Villiers (Chipping Barnet) (Con)]

The Government’s emergency income support schemes have helped millions of people, but unfortunately there are gaps in support. Will the Government look again at how to help PAYE freelancers, the newly self-employed, directors of limited companies, and particularly women for whom periods of maternity leave have made it even more difficult to come within these covid emergency schemes? They need help; they are suffering real hardship.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

We are providing £15 million for local authorities to make discretionary payments to people not eligible for the self-employment income support scheme. The DWP has temporarily relaxed the minimum income floor for self-employed UC claimants affected by covid-19. The self-employed have also benefited from other parts of our support package, such as increased local housing allowance. However, I urge anyone who thinks they may need further support to check the benefits calculator on gov.uk.

[Mrs Emma Lewell-Buck (South Shields) (Lab) [V]]

The Secretary of State should be ashamed that right across the UK, food banks, schools, charities and communities have had to mobilise to feed hungry children because of the inadequacy of the welfare state. Analysis from the House of Commons Library shows that 680,000 of these children could be lifted out of poverty if universal credit was not cut and child benefit was increased by just £5 per week. Why will she not implement those changes?

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[Henry Smith (Crawley) (Con) [V]]

The covid-19 pandemic has presented some stark economic challenges for Crawley affecting people of all ages. What support has the Department for Work and Pensions put in place to help workers get back into work across my constituency?

[Mims Davies]

In addition to the excellent work already being done at the Crawley youth hub in the town hall and the existing Jobcentre Plus, I am pleased that, as part of the DWP estates expansion and renewal programme, we will shortly open a new jobcentre at Forest Gate and a DWP response hub at Gatwick airport. As well as generating valuable employment opportunities, this will ensure that we can provide the support that individuals of all ages need in and around Crawley.

[Christian Matheson (City of Chester) (Lab) [V]]

I have a constituent who, over the space of the two and a half preceding years, was sanctioned for a total of 1,100 days. Does there not come a point at which it is clear that the sanction regime does not work for some individuals, ceases to be a proportionate response, and becomes cruel and unusual? Will Ministers look at ways of making sure that those individuals who are suffering in this way get treated with a lot more respect and dignity?

[Mims Davies]

Sanctions are only ever used when someone fails to comply with reasonable and appropriate commitments without a good reason. Following the gradual reintroduction of conditionality in the claimant commitment, the UC sanction rate remains very low, at a record low level. I am happy, if the hon. Gentleman wants to raise this particular issue with me, to have a look at it, but, as I say, the sanction rate has very much been on a downward trend.

[Ian Levy (Blyth Valley) (Con) [V]]

The kickstart scheme has been a fantastic initiative in helping to secure valuable work placements for more of our young people in Blyth Valley, but it is currently only available to businesses with more than 30 employees. What assessment does my hon. Friend make of lowering this threshold to allow for smaller businesses to be given the same opportunity?

[Mims Davies]

Mr Speaker, would you like to be a 3D animator, a disabled riding school assistant, a camera operator or maybe a trainee fencing coach? These are all kickstart roles that are available. We have made it simpler for employers to get involved with kickstart, cutting the 30 posts minimum threshold so those applying for any number of roles can now apply direct to the DWP. We have also made it easier for sole traders to sign up. We have had a great response, with over 6,500 employers stepping up to offer placements in different fields and sectors, as we have heard, and also to be crucial gateways.

[Wendy Chamberlain (North East Fife) (LD)]

People who receive legacy benefits were excluded from the uplift to universal credit, but the Government have now announced plans for an uplift this April of 0.5%. If people are claiming ESA in the work-related activity group, that equates to 37p a week, which is derisory. We need to ensure that people on legacy benefits receive a proper degree of support, so as part of the Secretary of State’s review of the UC uplift that she mentioned earlier, will she commit to providing a similar uplift to legacy benefits?