Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the effect of changes in the participation rate on economic productivity; and if he will make a statement.

Government action to reward work and reform benefits has delivered a strong labour market which has seen the employment rate grow more than any other G7 country since early 2010 (Q1), and in the three months to January it stood at 74.1 per cent – the highest since records began.

The government believes it is possible to maintain a strong labour market and improve productivity performance, and this why it has set out a comprehensive programme of structural reform in the productivity plan – “Fixing the Foundations” – with further measures included in Budget 2016.