Household Support Fund

Rachael Maskell Excerpts
Wednesday 31st January 2024

(2 months, 4 weeks ago)

Westminster Hall
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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We all make mistakes, Mr Hosie.

I have to ask: what do we come to Parliament for? It brings real shame that in this day and age we are sent here to beg the Minister to provide essential funding for our constituents living on the poverty line. It is not only that they are already in poverty, but that just five weeks out from the Budget, we have to stand up in this place and call for emergency support funding. Of course, the fund is not a solution to the deep deprivation that we are seeing across all our communities; it will take a Labour Government to get into the root causes and address the poverty that, shamefully, we see across our constituencies because of the inequity in the economy that the Government have driven.

The household support fund is a lifeline for many of our constituents. That is why it desperately needs funding today. It cannot wait for the next Budget. Local authorities certainly cannot wait that long to plan how they are going to support their communities. With the housing disparities in York, with low wages and with the highest housing costs across the north, my constituents really struggle.

I stand here on behalf of all councils in Yorkshire, especially North Yorkshire. Across Yorkshire, 1 million awards were granted between October 2022 and March 2023; £94 million is needed. That is why we need the Government to come forward with an announcement today. We know there are many people out there who are going to exploit our constituents if that money is not forthcoming, so we need to do it to safeguard their interests. We also need to ensure that we stave off the cold and the hunger for the families we are here to represent.

I have to say that it is simply not good enough to stall us further. We have written to the Chancellor, we have had the data, we know the statistics and now we need the answers. I trust that the Minister will announce exactly what the Government will do to help those most in need. The Joseph Rowntree Foundation has said that the welfare support that our constituents receive is nowhere near enough for the essentials. We need that to be addressed, too, but today we need this money coming forward, because this is the last thread of the safety net on which our constituents depend. I look forward to hearing what the Minister has to say.

Oral Answers to Questions

Rachael Maskell Excerpts
Monday 4th September 2023

(7 months, 3 weeks ago)

Commons Chamber
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Guy Opperman Portrait Guy Opperman
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I visited North Devon in April to meet my hon. Friend and discuss those issues. She has my full support and that of the Department in her work to ensure that we address those problems. Clearly, those matters are being addressed on an ongoing basis by the Department for Levelling Up, Housing and Communities, but I can assure her that she has my full support.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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22. What steps his Department is taking with Cabinet colleagues to help reduce sickness absences in the workplace.

Mel Stride Portrait The Secretary of State for Work and Pensions (Mel Stride)
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Sickness, and supporting those who are sick in the workplace, is an important focus for the Department, which is why we are consulting on occupational health and ensuring that more businesses take it up as something to offer their employees.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Seventeen million working days are lost every year because of negative workplace cultures and staff wellbeing. That is partly down to bullying, which is prevalent across many workplaces. What steps is the Secretary of State taking to consider workplace cultures, particularly bullying at work, and will he meet me to discuss my bullying and respect at work Bill, which would put a recourse into law?

Mel Stride Portrait Mel Stride
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Like the hon. Lady, I and my ministerial colleagues take bullying in the workplace extremely seriously. There is no place for that in our country. I would be very happy for her to have a meeting with the relevant DWP Minister.

Two-child Benefit Cap and Child Poverty

Rachael Maskell Excerpts
Tuesday 11th July 2023

(9 months, 3 weeks ago)

Westminster Hall
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Kim Johnson Portrait Kim Johnson
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I totally agree with my hon. Friend. We need to end this horrendous two-child policy and ensure all children have the opportunity to thrive and grow and not live in poverty.

Last September, when I hosted an event in Parliament in partnership with the End Child Poverty coalition and the National Education Union calling for universal free school meals to help alleviate child poverty and close inequalities in education and health, we heard from some incredible youth ambassadors. They told us of the stigma of being singled out for free school meals. One said the impact was like sitting in a classroom wearing a badge on their back saying they were poor. Another told us she remembered her mother skipping meals to make sure she and her siblings had something to eat and that now, years later, her own relationship with food and the guilt she associated with eating is still having an impact on her. Members in all parts of the House will be painfully aware of so many similar personal stories from the constituents they work with every day.

Last year the Joseph Rowntree Foundation annual report on UK poverty showed that child poverty in families with more than two children increased from 33% to 47% between 2012-13 and 2019-20, reaching levels not seen since before 1997. In my constituency, 11 children in a class of 30 are living in poverty, and of the 1,400 children in households in receipt of universal credit, 444 are not eligible for extra support due to having two or more siblings born after 6 April 2017.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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My hon. Friend mentioned the Joseph Rowntree Foundation, which is based in my constituency. It has done work not only to demonstrate that the two-child limit is having an impact on children but also that the benefits base is not focusing on the essentials and the essential costs. On top of that, the broader rental market area is not paying the way on private rent either. Families in my constituency are struggling with the accumulation of cuts and the drawback that the Government have put in place. Does my hon. Friend understand why this Government are punishing children and families in such a way?

Kim Johnson Portrait Kim Johnson
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I do not know why the Government are punishing children and forcing them into poverty. It is a crying shame.

These families are disproportionately affected by increases in the cost of living and, as has just been mentioned, are treated punitively by the benefits system. Some 1.3 million children across the country are currently losing out under the cap, with their families losing on average £3,235 directly out of their pockets. With new stats due on Thursday 13 July, the Child Poverty Action Group and Save the Children predict the number will rise to 1.5 million.

Cost of Living Support

Rachael Maskell Excerpts
Tuesday 20th June 2023

(10 months, 1 week ago)

Commons Chamber
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Tom Pursglove Portrait Tom Pursglove
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I do not have those figures to hand for this debate, but I will take that request away and ask ministerial colleagues in the Department to respond.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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There is no room for complacency. Our constituents are absolutely desperate. On Saturday night, I got another email from a constituent who literally had no money left. She was spiralling into debt, and she could not afford her rent, food or energy. Today’s announcement will do nothing to help her, and it will do nothing to help so many of my constituents who are in such desperation. What steps has the Minister taken to look at the essentials guarantee that the Joseph Rowntree Foundation is putting forward, which would see a consistent uplift in all benefits to help people such as my constituent?

Tom Pursglove Portrait Tom Pursglove
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I am obviously not familiar with the circumstances of the individual in question, so it is impossible for me to comment on the support that he or she may or may not be eligible to receive. I always encourage people to apply for any support to which they might be entitled. Benefit calculators are available on the gov.uk website to help people to do that. The household support fund is being delivered in the hon. Lady’s community, but if she wishes to share some details with me about that specific case, I will gladly take that away to look at. As I said earlier, there is also the opportunity, with the annual decisions taken within the Department, for all these issues to be considered.

Oral Answers to Questions

Rachael Maskell Excerpts
Monday 31st October 2022

(1 year, 6 months ago)

Commons Chamber
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Guy Opperman Portrait Guy Opperman
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In my former life I was very much looking at that specific policy and I am quite sure that the Government will address it shortly.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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This morning I attended the York cost of living summit and heard about the impact that food poverty, heating poverty and housing poverty are having on my constituents. One issue is the rate at which the benefits cap is set. By 2027, it will not have been reviewed for 11 years, so will the Secretary of State make representations to the Chancellor to ensure that it is reviewed before 17 November?

Mel Stride Portrait Mel Stride
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I am in the process of reviewing just that matter and many of the others that we have discussed, so we will have to wait, but it is one of the matters that is under review.

Cost of Living Increases: Pensioners

Rachael Maskell Excerpts
Monday 21st March 2022

(2 years, 1 month ago)

Commons Chamber
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Jonathan Ashworth Portrait Jonathan Ashworth
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We are making clear our commitment to the triple lock in the remarks that I am making at the Dispatch Box.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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I am grateful to my right hon. Friend for the speech that he is making. When the Government made their decision about the triple lock, we were not facing the energy crisis that we are facing today. Bearing in mind that older people expend at least twice as much energy because they are at home for more hours, and that we are starting to hear of cases of people dying of hypothermia, should not the Government not only reinstate the triple lock but underpin energy bills?

Jonathan Ashworth Portrait Jonathan Ashworth
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My hon. Friend is absolutely right. We have so many pensioners in poverty, and many of them are living in inadequate, cold, damp homes that they cannot afford to heat. We know that we have considerable excess deaths every winter due to issues associated with hypothermia and so on, because so many pensioners live in cold, damp homes. Frankly, that costs the NHS more in the long run, so the economics of this are completely self-defeating.

What was the Government’s justification for breaking the triple lock even though pensioner poverty is increasing, as it was before the pandemic? Ministers said that the £5 billion cost was unaffordable. So the Chancellor took £5 billion off pensioners and then a month later, in his Budget, gave away billions in alcohol duty cuts and cuts to the bank levy—literally making it cheaper for the bankers to booze on bubbly on the back of making pensioners poorer. It is a disgrace.

Let us be clear: the reason Ministers are not increasing the pension sufficiently is not that the Government lack the money, but that they lack the political will. That is why older people are now asking whether the Government will break their promise on the triple lock next year too. Last year, Ministers rejected the 8.3% rise and refused even to explore alternative measures of wage growth, but they insisted that that was a one-off and that they would honour the triple lock throughout this Parliament. The Bank of England warns that inflation could reach 8% this year. I asked the Secretary of State at questions earlier whether she would rule out breaking the triple lock for a second year in a row. She did not give that guarantee at the Dispatch Box, so I ask her again: can she confirm that the triple lock will be honoured for the rest of this Parliament? Does she want to answer that? She did not do so at questions earlier.

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Thérèse Coffey Portrait Dr Coffey
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The Chair of the Work and Pensions Committee slightly pre-empts where I am heading with pension credit in my speech.

On the household support fund, within the lifetime of the Government, we have introduced a higher basic state pension so that, increasingly, pensioners are not required to resort to applying for pension credit. However, pension credit, the pension financial safety net, is helping to support those with the lowest retirement incomes. Worth on average over £3,000 a year, some 1.4 million pensioners already claim it, receiving collectively an extra £5 billion in support. As I mentioned, given that pension credit is a passport to other financial help, we want to make sure that everyone who is entitled to it claims it.

Our estimate of pension credit take-up is based on a combination of what information we have on pensioner income and analysis from the family resources survey. That suggests that more people can claim than is the case now, particularly for those eligible for the savings credit element, where we have the lowest take-up. The Minister responsible for pensions, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), and my noble Friend the Minister in the Lords—Baroness Stedman-Scott—have been striving to increase take-up. They undertook a big awareness day last year and they are continuing that work. This is the plan, I say to hon. Gentlemen.

We will continue to promote the take-up of pension credit. As has been highlighted, the Minister responsible for pensions, my hon. Friend the Member for Hexham, has raised awareness through local newspapers. We will send 11 million leaflets to pensioners with their annual state pension uprating letter and we will continue to work with the BBC, financial institutions, Age UK and many other organisations to raise awareness. The latest estimates show that uptake is increasing. We know from internal management information that the number of new applications last year is estimated to have been 30% higher than in 2019, so our efforts are working. I hope that this latest effort will also bear fruit.

Rachael Maskell Portrait Rachael Maskell
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I chair the all-party parliamentary group for ageing and older people, which has just had an inquiry into the matter. One thing we suggested was that, since a lot of older people visit their GP at some point, GPs should be active in asking their patients whether they are eligible for pension credit. That would help them to claim the benefits that they should be able to attain.

Thérèse Coffey Portrait Dr Coffey
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The hon. Lady raises a valid point. I know that we have had paid advertising in post offices and in GPs’ waiting areas in the past; doctors often tell us that they do not necessarily like to be attached to benefit claiming and similar matters, but I hear what the hon. Lady says, and my understanding is that we intend to resume that contact. I have also asked the leading pharmacy chains to be involved, because that is often a more regular way in which people get help. We will try different outlets, in addition to those we have tried in the past, to make people more aware of the potential opportunities.

Oral Answers to Questions

Rachael Maskell Excerpts
Monday 8th November 2021

(2 years, 5 months ago)

Commons Chamber
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Guy Opperman Portrait Guy Opperman
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I can do that. It is a herculean IT project with 43,000 pension providers, 22 million private pensions and state pensions all coming to your mobile phone, your laptop or your device at home. It will be groundbreaking and will be ready in 2023.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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T3. In breaking the pensioners’ promise by unlocking the triple lock, many pensioners in my constituency, where there is an extremely high cost of living, will struggle this winter with heating and food. What steps will the Minister take to ensure that they receive the money they rightly deserve and that he promised the electorate to get through this winter?

Guy Opperman Portrait Guy Opperman
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The hon. Member will be aware that the pension has gone up by more than £2,000 in cash terms since 2010. There will be a double lock this coming year, subject to the will of Parliament, and there is also the enhanced take-up of pension credit, which I urge her to ensure her constituents apply for.

Universal Credit and Working Tax Credits

Rachael Maskell Excerpts
Wednesday 15th September 2021

(2 years, 7 months ago)

Commons Chamber
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Jonathan Reynolds Portrait Jonathan Reynolds
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I will tell the hon. Member about the real people. There are 7,700 families in his constituency whom this cut will affect, and the decisions the Government will make—[Interruption.] I am not going along with Conservative Back Benchers trying to tot things up and coming out with them in the middle of a debate. No, let us talk about the real impact on the 7,700 families in his constituency. The message he should be considering is: what will happen to his local economy and what will happen to national finances by taking that money away from them? This is a very important point.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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Some 7,850 of my constituents will in three weeks’ time also lose £20 a week. Does my hon. Friend agree that the real cost will be the impact on people’s lives—the lost opportunities for those children’s futures and the hopes we all carry? Is it not right that we invest in people, not see this as a cut in itself?

Jonathan Reynolds Portrait Jonathan Reynolds
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Absolutely. That investment in people is essential, and this uplift that we are talking about today cannot be considered without remembering the benefits freeze that lasted for four years prior to 2020. As the former Secretary of State, the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith), has said, the uplift only really restored what the value of UC would and should have been.

The pandemic exposed what many of us already knew: that social security in this country had become so threadbare it simply would not have got us through the pandemic. Since 2010 there has been unprecedented growth in in-work poverty in the UK, and food banks have become the norm in every town and city. No constituency has been exempt from that, and, most of all, one in eight working people in the UK is currently living in poverty. So the Government should not be seeking to congratulate themselves on making this uplift during the pandemic; they should ask themselves why they let things get so bad to begin with.

There was another laughable moment in Question Time on Monday when the Secretary of State compared the Government’s response to that of the Labour Government after the global financial crisis. Back in 2008 there was a functioning and supportive welfare state: tax credits acted as a superb automatic stabiliser; Jobcentre Plus had already been created, bringing together the old social security offices with the jobcentres, which all Governments since have recognised as a huge strength; unemployment did not hit 3 million, as initially predicted; and initiatives such as the future jobs fund played their role. So that Government had already done the hard work back then, and that is the lesson this Government need to learn.

As many Members have said, great as the impact on families is, we also have a responsibility to consider the impact of this on the country as a whole. The money we are talking about is spent in local shops and on local services, the very businesses that have had such a tough time because of the necessary public health restrictions most of us here backed for good reasons.

The recovery is promising, but it is not a done deal and there is a lot of ground to make up. This is the wrong decision for the economy and it also fails to learn the lessons from the pandemic and build the resilience we need as a country to face future challenges.

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Thérèse Coffey Portrait Dr Coffey
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The right hon. Lady is right to praise care workers, who played an important part during the covid pandemic. It is my understanding that half a billion pounds of the health and social care levy, which was passed yesterday—the Opposition voted against it—will go to supporting the workforce in the care industry, recognising aspects of skills and pay. I want to put across to the right hon. Lady that we know—there is evidence on this—that where both parents are working full time, 97% of those households are not technically in poverty. That is why we have such emphasis. Households with children working part time are more likely—substantially higher, closer to 42%—to be in poverty. Frankly, five times the rate of people who do not work at all—workless households—are in poverty compared to those who are working. That is why we have worked really hard to reduce the number of workless households. I think there are 650,000 fewer workless households, lifting children out of poverty.

Rachael Maskell Portrait Rachael Maskell
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Will the Secretary of State give way?

Thérèse Coffey Portrait Dr Coffey
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I will make some progress if the hon. Lady will allow.

We know that the best way to get more pounds into people’s pockets is through work. Those of us on the Conservative Benches believe in a welfare safety net, not a welfare trap, where it feels the Opposition are keen to keep people. We know that work and progressing in a job is the best route out of poverty, and I have spoken about parents working full time. That is why the Government, having provided unprecedented support during the height of the pandemic, are now right to focus on helping people back into work and helping those already in jobs to progress in their career.

Although the legacy benefits system penalised people for taking on more hours, universal credit ensures that working always pays. We got rid of the cliff edge that was part of working tax credits where people were penalised for working more than 16 hours and of the other cliff edges. I repeat that that is why we have UC work allowances focused on people with children or with limited capability to work, so that they can keep all the extra money that they earn until the allowance is used.

Rachael Maskell Portrait Rachael Maskell
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I am grateful to the right hon. Lady for giving way. She says that universal credit is responsive, but when she announced this cut, we did not know that there would be a 3.2% increase in inflation. My constituents are in work; it is just that the cost of living in York is exceedingly high. This proposal will hit them significantly, so will she take it back and reconsider in the light of inflation rising?

Thérèse Coffey Portrait Dr Coffey
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The hon. Lady represents a beautiful city—a magnificent city—and she will know that the jobcentre and our work coaches are working hard there with the communities. In lifting the local housing allowance rates, we made nearly a £1 billion investment, and we have maintained that in cash terms to recognise some of the costs of housing, which are truly challenging in very popular areas such as hers, and I am sure that she will welcome that.

We are making the most of our 13,500 extra work coaches. Right across the country, we have doubled our jobs army, which is helping people to get into work and to progress in work by accessing skills and job schemes. Our plan for jobs employment programmes are providing tailored support to help more people to move into and progress in work.

Future of Pensions Policy

Rachael Maskell Excerpts
Tuesday 8th December 2020

(3 years, 4 months ago)

Westminster Hall
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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I am grateful to be called to speak in the debate this afternoon, Mr Hosie. I thank the hon. Member for Delyn (Rob Roberts) for securing it.

The insecurity and inequality that people experience throughout their working lives is amplified in older life. I certainly see that in my constituency, where, regrettably, insecure work mars the lives of many people. It was in the city of York that Joseph Rowntree first introduced pensions in his factory in 1906, ahead of the Old Age Pensions Act 1908, which came into effect on 1 January 1909—on pensions day, as it was known. It was Seebohm Rowntree’s work in this field that brought about that Act, so my city has a real investment in today’s debate.

We need to ask what the problem is that we are trying to solve around pensions. Are pensions simply part of reward packages and used as a recruitment and retention tool by employers? Are employers really interested in the economic fortunes of their former employees once they have left their employment? How do we address the serious issue of pensioner poverty, and are pensions fair and equitable or dependent too much on past income, which we know is inequitable in itself? Today, 1.9 million older people live in poverty, which really amplifies how pensions have gone wrong, and we therefore need to look at how we address those issues.

I view this issue through the prism of women and their experiences of the inequality that is already built into their working life by the pay gap. They are more likely to be in part-time employment and more likely to be carers, and there is also the serious issue of underemployment. In fact, since the start of the pandemic, 70% of people who have lost their jobs are women. We therefore need to understand why so many women are in pensioner poverty.

Young workers and black workers are more likely to be in insecure jobs. Disabled people lose out altogether and fare worse. Inequality is hardwired into our pension system, exacerbating the unfairness of employment. I observed over the years as a trade union official how we needed to bring redress into our pension system, which is an issue I would welcome the Minister looking at specifically.

On state pensions, many countries such as the Netherlands, Denmark and Australia have far better statutory provision in later life, as can be seen in the quality of life that people experience. The Netherlands pays 95% of average earnings, Denmark 66%, Australia 58% and the UK just 29%. Insufficiency is also built into our pensions system. We have heard much about the pension credit system, but take-up is only 60% , with £2.8 billion not claimed. I therefore support automation. Data can be shared and the technology is there to tackle inequality and enable people to access not only their pensions but, as we have heard, TV licences and other such benefits. It is really important that the gap is closed with the mechanisms we have available to achieve that.

Jonathan Edwards Portrait Jonathan Edwards
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The hon. Lady is making a very well informed speech, as is typical of her. Does she agree that much of the drive over recent decades to increase the state pension age has been driven by the fact that life expectancy has been increasing? However, there is evidence that that is reversing and life expectancy is starting to fall. If that is sustained, the UK Government need to look at pensions policy and perhaps reverse the pension age increases that we have seen over recent decades.

Rachael Maskell Portrait Rachael Maskell
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The hon. Gentleman raises an interesting point. Of course, that was the basis on which the Cridland review undertook its exercise of looking at how to address an ageing population, so he is right that the Government need to look at that issue.

Turning to employer schemes, we have seen a change in the schemes over the years from more beneficial schemes such as the defined-benefit schemes, first from final salary to career-average earnings schemes. There has also been a rapid move to defined-contribution schemes, where more risk is placed with the worker. Therefore, people’s lack of engagement in the complex world of pensions is ever more understandable. Of course, auto-enrolment in some of the pension schemes shows insufficiency, which the hon. Member for Delyn drew out, but the employer contribution of just 3% is hardly that of an employer investing in their workers’ future. I would urge, if we are looking at raising the sufficiency of stakeholder schemes, a greater employer contribution into those schemes, as opposed to the burden being placed on the workers’ shoulders.

I would also like the Minister to look at the number of pension schemes. Many countries have just a few hundred pension schemes altogether; we have more than 10,000, and we know that many of those schemes are struggling. I have looked at the charity sector, where, among the top 50 charities, there is now a deficit of £1.5 billion. We know that in other sectors, people move from job to job to job and therefore have no time to build up a pension pot with a company. If we moved to a more sectoral model, that would give individuals a lot more scope to build a pension for their future, and a model of sectoral bargaining could shape such pension schemes. I think it would be helpful to look into that.

As I have mentioned, equality needs to be brought to the fore, not least because of the impact in terms of women in poverty in later life. Economic events impact on pensions so much. We therefore need to address those issues, but we also need to recognise that in later life, people from areas of deprivation are more likely to be in poor health and so working longer is not always relevant. We need more flexibility to be built into pensions in later life, but we also need to ensure that individuals do not lose out because they work in different ways.

I echo the support that has been expressed for more financial education. I, too, was at the event that Aviva held on work, wealth and wellbeing. It was particularly about people having an MOT to check on them—to check their mental health as well as their physical health—and to look in mid-life at the opportunities and the finances ahead. We need to ensure that such opportunities are open to everyone.

Finally, I want to draw attention to the importance of building confidence again in the pensions system. At a time when people have so little dispensable resource, they will be making choices about whether to invest in their longer-term future or to buy essentials, such as a meal for their family. We therefore need to ensure that we address the poverty today as well as the poverty tomorrow. The WASPI women are one example of a group that certainly made the right choices, yet was badly let down by the changes brought about by Government decisions. We need to build confidence in our system to ensure that there are fair choices for people in the future.

The Future of Work

Rachael Maskell Excerpts
Thursday 19th November 2020

(3 years, 5 months ago)

Westminster Hall
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Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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It is a pleasure to serve under your chairmanship, Mr Hollobone. I thank the hon. Member for East Renfrewshire (Kirsten Oswald) for introducing the debate.

It is always a pleasure to follow my hon. Friend the Member for Easington (Grahame Morris). He is absolutely right to speak up for the Rolls-Royce workers. We are seeing that the opportunities for employers come on the back of working people when they offshore jobs. That is one of the biggest threats to our economy, and I support Unite in its battles against employers who have done such things.

The reason why the people of Barnoldswick have come to our attention is very much at the heart of my speech. Work defines us; it gives us dignity. It is where we spend most of our waking hours, build our security and friendships, display our skills, and contribute to society. Without work, we lose our identity, purpose and self-worth.

Tragically, for many, work has been hardly an edifying experience in recent times. Slavery conditions, poverty wages, insecurity and uncertainty have framed the working experience for too many. Recently, we have seen a sharp increase in zero-hours contracts, on which many people languish at the behest of their employers. Many jobs, good and bad, hang in the balance as we face a catastrophic tsunami of job losses. We have to build back better.

We have to decide what kind of economy we want to build. There have obviously been advances in technology and automation, but the word “growth” was mentioned again in this debate, and we have to understand what it means. Does it mean depth, or does it mean forever chasing profits for those at the top of organisations at the expense of workers?

I want the Minister to comment on how her Government view economic thinking such as that of Kate Raworth, who is looking at things such as doughnut economics and the value being put in, and Julian Richer, whose work on the good business charter looks at how work can have a more ethical base, including a real living wage, environmental responsibility, fairer hours, paying fair tax, employee wellbeing, a commitment to customers, employee representation through a trade union, diversity, inclusion, timely payments to suppliers and ethical sourcing. That would reshape the economy for the future in a far better, qualitative way.

Before I talk about my constituency, which is due to be the worst-hit area in the country from the current economic crisis—we could see unemployment rise from 2.8% last year to 27% next year, because the recovery from the last economic crisis was built on insecure jobs—I want to highlight three areas where we could see real movement in reshaping the economy. First, we should build sectoral councils. The fragmentation of the economy is not helping our response, so we need the economy to come together. Establishing sectoral councils will provide a framework for employers, workers, trade unions, academics and industrial leaders to come together, build back better, institute a skills analysis and look at the economic opportunities of those sectors. The fragmentation is preventing that from happening, but linking with local and devolved authorities and local enterprise partnerships would be a real opportunity to focus on the future and ensure that the big issues such as climate mitigation are at the heart of the discussions. It is also about building a base for sectoral negotiations to determine things such as pay, pensions terms and workers’ conditions in those sectors.

Secondly, I want to look at the university and further education sector. I have to say that I was disappointed by the debate earlier this week on the union learning fund and the opportunity it brings. Education is at the heart of growth: if we enable people to reach their potential and the extent of their skills, we can do so much more in local economies.

We see real under-employment in the city of York in my constituency. The two universities have now come together with the two further education colleges to form Higher York in order to shape the economy, but we need the education sector to have a more central role in establishing the future of the economy, looking at things such as the skills gap and inequality, and at the wider community interest—not just from the perspective of education alone, and not just looking at higher-end skills. In my city, 30,000 people work in areas such as retail, tourism and hospitality. Those jobs will not be there next week, next month and possibly next year, and we therefore need the university and further education sector to intervene and to address the many challenges that we face.

Perhaps the most difficult conversation that any of us have had over the past eight months has been with small employers and the self-employed, who have poured everything into their businesses—their money, their time, their resources and their lives—only to see them melt away without Government support. In building back for the future, we need to build more resilience into business by building collective support and looking at more social models of business support, to ensure that businesses are more sustainable in the future as they move forward—looking at the co-operative models and social enterprises that have good reach into their communities and real roots, which can address some of the real challenges around employment, too.

I turn briefly to my constituency of York Central. Already the high street is the worst impacted in the country—we have lost around 60 businesses to date, and I daresay there will be many more to come. As those businesses have been struggling, Government grants have been slipping through their fingers into the hands of leaseholders who live offshore and do not pay their taxes in our country. The taxpayer is subsidising that lifestyle, and hard-working people in our local businesses and shops do not see any of the benefits. There has to be responsibility when the Government hand out resources. Although they are saying they are supporting these times, we have to look where that money is ending up—it is certainly not ending up supporting business. I call on the Minister to look at how we can have proper investment and a responsibility put on property tycoons to ensure that the money is not just invested in their tax havens.

On a green new deal, the BioYorkshire project is incredible. It will create 4,000 jobs and retrain 25,000 people to have the skills to bring about a real revolution in the bio-economy, putting York at the heart of that—not just in the UK, but globally. The Government are tying this to a devolution deal that could be two and a half years away, but we need investment in those jobs and skills in York now. Before next Wednesday, can the Minister have words in order to bring that forward, so that we can start the work in creating the jobs that we are losing hand over fist at the moment?

Finally, and most importantly, if we are to have a strong future of work, we need to protect workers’ rights and to think about the real challenges that workers face in the workplace today. After 50 years of looking at health and safety, it is timely that we now have a health, safety and wellbeing commission to look at the wellbeing of workers. We know that issues such as mental health, bullying in the workplace and even the fallout of occupational health services were not discussed 50 years ago. We do not have a legislative framework to protect workers, particularly those who experience issues such as stress, poor mental health and bullying. We need to ensure that such a framework is introduced. Finally, we need to introduce a right to learn and to ensure that the union learning fund is invested in, because this is the opportunity to rebuild our economy.

Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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A Westminster Hall debate would not be complete without Jim Shannon.

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Mims Davies Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)
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It is a pleasure to serve under your chairmanship, Mr Hollobone, and to respond to the debate. I look forward to further debates on this issue. I greatly thank the hon. Member for East Renfrewshire (Kirsten Oswald) for securing this important debate on a critical topic for the UK. It has been interesting and thoughtful, and the introductory speech was exactly that—as were those from Front-Bench colleagues. I particularly welcome the new APPG on the future of work, which will look at work going forward and the role the Government take. I will try to pick up on some of the points hon. Members have made.

Reflecting on what Members have said, we recognise that the labour market is fluid. We will have to continue to adapt to the forthcoming challenges, emerging technologies and the changing nature of available employment, and the skill sets that are required to remain agile enough for this change in the world in work. My hon. Friend the Member for Devizes (Danny Kruger) reflected on the jobs miracle, the barriers and impacts of where we are now compared to where we were, and the inequality challenge. I absolutely recognise the points that my hon. Friend made.

We also heard from the hon. Member for Strangford (Jim Shannon) who has the art of being in two places at once—brilliantly done today. I failed at that earlier, and I apologise. The hon. Gentleman pointed out, rightly, that for many families this is an incredibly worrying time. The Department for Work and Pensions has stepped up in this pandemic so that we are supporting as widely as possible, but I fully recognise the impact on SMEs and our local independents.

We heard from the hon. Member for East Lothian (Kenny MacAskill) who highlighted the social care challenge—it is absolutely important. We have had a care academy in Scotland through the DWP that has been brilliant, and has highlighted the variety of roles, and impacts, that can be made by those who are part of that amazing world making a daily difference to people’s lives. It is important that we sell and point out that opportunity in the world of work.

I want to pick up briefly on UBI. I believe, fundamentally, it is the wrong approach for the UK. As we heard from my hon. friend the Member for Devizes, it does not incentivise work. More importantly— and the hon. Member for East Renfrewshire mentioned disability—it does not target people with additional costs and needs when it comes to the challenges that they face, whether it is disability or childcare responsibilities. We should be careful how we approach that.

We recognise at the DWP that we need to be looking strongly and widely at the labour market. We have an excellent team, which I work with closely, who give me a daily understanding of the labour market so that we can try to take advantage of the opportunities of automation—this emerging technology—and what it may bring. We heard already about the green jobs taskforce which met for the first time last week, which will bring together the views of businesses and employers, as we heard today, and key stakeholders including the skills sector. The taskforce will focus on the immediate and longer term challenges of delivering workers with the right skills for the UK’s transition to net zero, including dealing with the issue of building back greener, as we heard this afternoon, and developing a long-term plan that charts out those key skills. It will also focus on the good-quality jobs that we need, a diverse workforce and supporting workers in high-carbon areas transitioning into sectors such as green technologies.

We heard about the 10-point plan this week from the Prime Minister and his blue-print to focus on jobs and opportunities in the areas where the UK’s industrial heartlands need that support—be they in Yorkshire, the north-east, the Humber, the west midlands, Scotland or Wales. It is important that we drive through a green industrial revolution to support the industries of the future.

Rachael Maskell Portrait Rachael Maskell
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Will the Minister specifically look at the BioYorkshire project, which has been driven by the University of York and others to kickstart York’s economy in the light of the crisis, and look to bring it forward, because we need new jobs now?

Mims Davies Portrait Mims Davies
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It is an absolute focus for us to drive forward local needs and support where they can change the local labour market and local opportunities. Earlier, the hon. Lady also mentioned working with local mayors and local enterprise partnerships, which this Government encourage.

On automation, we know that the increase in productivity, progression and wages that it can bring if we get it right will be really important as we head into this fourth industrial revolution. It is very difficult, as we know, to predict with any kind of precision what automation will do to the labour market, but it is important that we understand new technology, including the enablement of smart robotics and artificial intelligence, grab it and put it in place as part of our process of change. We know that 60% of the jobs in 2014 simply did not exist in 1990, so we know that things will change imminently.