(3 days, 12 hours ago)
Commons ChamberI refer the hon. Gentleman to the figures that I just read out. For the first time in many years, the NHS is heading in the right direction. That is good for people’s health, and it is also good for getting people back to work.
As I said, the Conservatives show no understanding of how people end up on benefits in the first place. They are like a workman who wanders around someone’s house asking, “Who installed that?”, when the answer every time is that they installed it. The Conservatives say that the welfare bill is too high, but it went up by £100 billion when they were in power. They say that they want more face-to-face appointments, but they shut them down almost entirely, and then the right hon. Member for Central Devon (Sir Mel Stride), now the shadow Chancellor, signed off a bunch of contracts that allowed the assessors to work from home. The Conservatives say that there are too many people on health benefits, but they designed the system, they designed the gateways, and they designed the differences in income that have made that happen. We did not just inherit a mess; we inherited their mess.
In fact, the shadow Chancellor personally oversaw the biggest single increase in welfare spending on record during his time as Work and Pensions Secretary. Two weeks ago, the Leader of the Opposition railed against there being 1.5 million more people on universal credit. She was outraged by the figure, as she often is, but there was only one problem: around 80% of the increase was a legacy transfer from old benefits that was decided, organised and begun by the Conservative party. It is no wonder the chair of the UK Statistics Authority wrote to the Leader of the Opposition to correct her. Her letter said of the figures quoted:
“A substantial proportion reflects the ongoing transfer of claimants from legacy benefits to Universal Credit. This process has been a longstanding policy and has been implemented at scale by the Department for Work and Pensions (DWP) since May 2022, predating the current administration.”
When it comes to the Conservatives owning their record, they might as well be giving CV advice to the leader of the Green party.
As the King’s Speech made clear yesterday, reform of the welfare system is under way and will continue. Support must always be there for those who need it, but circling the wagons around the status quo is not the right answer. Nor do I believe that the system can act as a fantasy cashpoint for every cause going; instead, I believe that our task is to recast this system to put work and opportunity at its heart.
Sir Ashley Fox (Bridgwater) (Con)
Twelve months ago, the Secretary of State’s predecessor, the right hon. Member for Leicester West (Liz Kendall), attempted to cut the welfare bill and was sent packing by Labour Back Benchers. In the autumn, the Government had to get rid of the two-child benefit cap because of Labour Back Benchers. Is the truth not that the Secretary of State is incapable of reforming the welfare system because he does not have permission from his Back Benchers?
I will outline the changes to the system that we are making. At the heart of it, we have to change the question that the system asks in order to have a system that is suited better to the conditions of today. We should ask people not just what benefit they are entitled to, but how we can help them change their lives, and we have begun that task.
The change to universal credit that came into force last month narrowed the gap between the health element and the standard element. Crucially, it is matched by an increase in employment support. Another change is the provision of £3.8 billion to help people into work over the next few years, ensuring personalised help to maximise people’s chances of moving into a good, secure job. We have to change the old Tory habit of people being signed off and written off, and instead move to a system that more actively helps people into work. Nowhere is that more true than among the young, because the longer young people are left on benefits or out of work, the harder it is to come off and the worse the consequences are. The issue with the system is not just about monthly income; it is about the story of people’s lives and how we change it.
(3 months, 2 weeks ago)
Commons ChamberNot at the moment. This is not a static group; people’s circumstances change, marriages break up, spouses die and jobs can be lost. In fact, around half of the families who will benefit from the lifting of the two-child limit were not on universal credit when they had any of their children. This is not a static group of people, which drives directly at the heart of the argument that the right hon. Member for Hertsmere (Sir Oliver Dowden) tried to make.
Sir Ashley Fox (Bridgwater) (Con)
Twelve months ago, not only did the Government support the two-child cap, but they were busy suspending Labour Back Benchers who voted against it. Can the Secretary of State tell the House what it was about the Prime Minister’s weak position that caused him to change his mind?
I will come on to the timing of our decision, and exactly why it is right.
(3 months, 3 weeks ago)
Commons ChamberOne of the early steps we have taken is to change the way that the growth and skills levy—the apprenticeship levy—works, so that more of that money is directed towards young people. That step was necessary because there had been a 40% decline in youth apprenticeship starts over the past 10 years. If we want to focus on young people and on employment for young people, we need to ensure they have a good chance of getting an apprenticeship start.
Sir Ashley Fox (Bridgwater) (Con)
I wish the Secretary of State well with this initiative, but does he share my concern that as his Department seeks to reduce youth unemployment, the Chancellor is doing everything she can to increase it, with her jobs tax increasing unemployment? Of the 170,000 payroll jobs lost since the election, until November 2025, some 45% involved young people. This Government have cost young people 150 jobs per day since they came into office. How does his scheme cope with that?
The hon. Member will be aware that 513,000 more people are in work compared with this time last year. He referred to the Chancellor. I am grateful to the Chanceller for the £820 million funding for the youth guarantee, which will bring training help to 300,000 young people and provide subsidised employment for those young people who have been out of work for 18 months. That is important to get young people into the habit of the discipline, pride and purpose that comes with having a job.
(6 months, 2 weeks ago)
Commons ChamberThe right hon. Gentleman is right to say that the business voice and employers’ voice is very important in this. When I wrote the new remit letter to Skills England, I asked it to take into account the views of employers, because it is very important that the skills system is training people in a way that employers want, and that meets the future demands of the labour market.
Sir Ashley Fox (Bridgwater) (Con)
I welcome the Secretary of State to his place, and to his new responsibility for skills. The Government recently reduced the amount of funding for level 7 apprenticeships, so can he tell the House what assessment his Department has made of the potential impact of this reduced funding on the number of nurses in training?
The apprenticeships and skills budget, like every other budget, demands choices. We are choosing to prioritise the level that we need in the economy, and the areas where the value is greatest. That does imply certain choices, and I am confident that the choices we have made will benefit the workforce as a whole, and future opportunities.
(1 year ago)
Commons ChamberThe Cabinet Office has tripled in size in the past decade or so. I think it is right, after growth like that, that we look at productivity and how to get the best outcomes for the public. We have introduced a mutually agreed exit scheme. Some of the headcount reduction will be by transferring functions to other places, but I believe that the Cabinet Office can absorb a headcount reduction after, as I said, tripling in size over the past decade or so.
Sir Ashley Fox (Bridgwater) (Con)
Can the Minister outline Government plans to reform the funding of fire authorities? That is especially important in Somerset, where changes to employer national insurance contributions, the ending of the rural support grant, the removal of the services grant and the reduction of the pension grant will cost Devon and Somerset Fire Authority nearly £2 million a year, at a time of rising costs.
I do not want to interrupt the collegiate mood we have had this morning by pointing out that we had to take those decisions after the inheritance we received. I cannot speak for every local authority settlement around the country, but the local authority settlements announced after the Budget were on the whole better than they have been for many years. They will not make up for the past 14 years, but they are better settlements than many local authorities have seen for some time.