Topical Questions

As the Minister for Employment, my hon. Friend the Member for Birkenhead (Alison McGovern), likes to say, the Department for Work and Pensions is the HR department of the Government’s growth mission, yet we inherited a situation in which only one in six employers has ever used a jobcentre to recruit. That is not good enough, which is why I announced last week five steps to put it right by overhauling what we do for employers. That includes a new dedicated employers team that has already brought more than 30 companies on board, including Swissport, Home Bargains and KFC. Soon we will host summits with businesses in key growth sectors such as construction and clean energy, as part of our plan to get Britain working and growing again.

Cornwall and the Isles of Scilly is one of 15 WorkWell pilot regions, which are a core element of the Government’s “back to work” plans to reduce economic inactivity due to ill health. I invite the Secretary of State to visit Cornwall to see how WorkWell is already making a tangible difference in helping those with health conditions to start, stay and succeed in work, and to confirm that the spending review will provide the multi-year funding necessary to sustain and expand that vital service.

I would love to visit. That is an important programme focused on keeping people in work and getting those who have recently left back into work as soon as possible. In my hon. Friend’s area, WorkWell provides advice on workplace adjustments, access to physiotherapy, and employment advice and counselling, and is working closely with the voluntary sector and employers, backed by £2 million-worth of funding. That is critical because, with more than 15,000 economically inactive people in his constituency, we must start turning that situation around.

I call the shadow Secretary of State.

Last week, the right hon. Lady described herself as the HR manager for the Government’s growth plan, so can Liz from HR tell me which of her colleagues should be fired for the addition of 47,000 people to the unemployment figures in December?

I am proud to say that I want to get Britain working again after we inherited a situation in which a record 2.8 million people were out of work due to health problems, because the Conservatives pushed the NHS to its knees and failed to have a proper plan to get people back into work. Our mission is to get Britain working and growing again, and that is what our plan will deliver.

Wishful thinking is all very well, but let us talk about the facts. Those 47,000 people probably spent Christmas worrying about how they would pay the bills without a job, and they are now looking for work in an employment market decimated by Labour’s jobs tax. How high does the right hon. Lady forecast unemployment will get under her Government?

The hon. Lady wants to talk about the facts. The facts are that we inherited a situation in which we will be spending £20 billion more on working-age, incapacity and disability benefits because of the mess her Government made, and in which there has been a doubling of the number of young people out of work due to health conditions, so people are more likely to be out of work due to poor health in their 20s than in their 40s. Our radical reforms will give people the right to work and the support they need, and will get the benefits bill on a sustainable footing.

I thank my hon. Friend for his question, and I am so pleased to hear about that work in Bracknell Forest. That is why the fourth part of our child poverty strategy is about local support. I look forward to working with my hon. Friend and his constituents to ensure that strategy is a success.

I call the Liberal Democrat spokesperson.

I was pleased to hear that Labour councillors on Hull city council have voted to condemn the Government’s shameful decision not to compensate WASPI women. Has that given the Minister pause for thought?

I recognise the strength of feeling on this issue right across the House. We carefully considered the ombudsman’s report, but as the hon. Member knows, we do not think it is fair to provide compensation costing up to £10 billion when 90% of affected pensioners knew that the state pension age was rising, and the evidence shows that letters being sent earlier would have made little difference.

I absolutely will. As my hon. Friend knows, the Government have launched the “Keep Britain Working” review led by Charlie Mayfield, the former chair of John Lewis Partnership. He is doing precisely that—looking at how we can better support employers to help keep people in work and get them back to work. Mental health is a real concern for me, with so many young people not in education, employment or training, primarily driven by mental health problems. This is an issue we have got to sort, because it is terrible for them and for their future, and terrible for the economy too.

I call Alison Bennett.

The hon. Member will know that we introduced the biggest ever increase in the earnings threshold for carer’s allowance for those who are able to combine some work with caring. We are determined that carers should get the support they need—there is a premium in universal credit as well, for example—but of course, we will keep all these matters under review.

I commend the resilience of my hon. Friend. Before Christmas, I spoke at a report launch with the charity Working with Cancer, which focuses on exactly the issue she has raised. She is right: employers have a key role in supporting people with cancer to continue to thrive in work, and the “Keep Britain Working” review will engage with people with lived experience as well as employers.

It is now nine years since the Scotland Act 2016 transferred a swathe of welfare powers to the Scottish Government. Are Ministers in a position to give a finite date by which the Scottish Government will actually have taken on all those powers and responsibilities? That is still not the case.

As the right hon. Gentleman rightly says, a number of benefits are currently delivered under agency agreements. It is very much for the Scottish Government to broker a conversation with us about either extending those agreements or bringing them to an early conclusion. I am yet to have any such conversations, but should I have any, I will be very happy to let him know.

My hon. Friend is right that there has been a particularly big increase in mental health problems among young people. Given what the last Government did, I can well understand people being worried. We will continue to support people with mental health problems in the health and disability benefits system. The proposals for reform we will bring forward in the spring will make sure the system is fit for purpose and fair to the taxpayer, and they will deliver the support in work that people such as my hon. Friend’s constituents need.

The Child Poverty Action Group has reported that 4.3 million children in the UK are living in poverty. In a classroom of 30, that is nine children living in poverty. Given that the Government have ruled out scrapping the two-child benefit cap, will the Minister commit to publishing measurable targets for reducing child poverty during this Parliament?

As I have already mentioned in a number of responses, we understand the scale and seriousness of the problem the hon. Member mentions. We have already published the terms of reference for the child poverty taskforce, and we will continue to keep the House updated as we move forward, given the seriousness of the issue.

Yes, I do commit to that, and I thank my hon. Friend for his tireless campaigning on the issue. With almost 1,000 young people unemployed in his constituency, or almost one in 10, I know what an important issue it is. His area is part of one of our youth guarantee trailblazers, meaning that every young person is earning or learning. I commit that the whole Government will continue to work with him and partners in his constituency to make sure that no young person is left behind.

Jamie from my constituency is a full-time carer, but he is also in full-time education and is therefore not entitled to carer’s allowance. Will the Government confirm that they will extend carer’s allowance to those in full-time education?

The hon. Gentleman raises an important point. I recently met a very impressive group of young people who have managed to navigate their way through education while also having very heavy caring responsibilities. We are working closely with the Department for Education, the Department of Health and Social Care, the Carers Trust and the Learning and Work Institute to make sure that we are providing the support young carers need.

Yes, I do agree with my hon. Friend, and I am grateful to him for highlighting that case. We have asked the Department for Health and Social Care to review its decision in that case—I hope with a positive outcome.

The Minister will have heard several references to the Joseph Rowntree Foundation report this afternoon. The report demonstrates not only that extreme poverty is rising, but that the only part of these islands where child poverty will fall in the next four years is Scotland. Is it not time that the Westminster Government took a leaf out of the Scottish Government’s book?

I think it is fair to say that we have spent a great deal of time talking to people from all parts of the United Kingdom, and we will continue to do so, because only a strategy that covers all of the UK will be a success.

I thank my hon. Friend for his question. The assessment I have made is of a trend that is up, up, up after 14 years of the Conservative party failing to act. We lost £9.7 billion in fraud and error in the Department for Work and Pensions last year, and we have lost £35 billion since the pandemic. That is too much, which is why I hope colleagues will support the Public Authorities (Fraud, Error and Recovery) Bill on Second Reading later.

Hundreds of farmers and other small business owners in Westmorland who earn less than the minimum wage are not eligible for universal credit because of the failure of that system to take account of variability of income. Will the Minister look to put that right so that we can support the people who support us?

We are committed in our manifesto to a review of universal credit and I expect to set out shortly the details of how that review will go forward. I will be very happy to look at the particular case the hon. Gentleman raises in the course of the review.

We all know that the best route out of poverty is through well-paid work, but for families in my constituency, where a third of children grow up in poverty, low-paid and insecure jobs are a massive barrier. What will the Department do to help more families back into work and to alleviate poverty for children growing up in Southampton Itchen?

My hon. Friend eloquently makes the case for our “Make Work Pay” reforms. This is not just about helping our economy grow, it is also about protecting people from poverty. In all we do to change jobcentres, we want to support people into good, sustainable, well-paid work because that is the best way out of poverty.

A constituent came to see me last week who had not eaten for four days. Her state pension had increased in line with the triple lock but this took her over the threshold for pension credit, which then took away her entitlement to a range of other benefits including the winter fuel allowance. What are the Government doing to ensure people do not experience such a significant cliff edge?

I thank the hon. Member for raising that case and I would be happy to meet her to go into a bit more detail. That is exactly why we make sure the pension credit threshold rises in line with the basic state pension through the triple lock.

During covid, assessments for personal independence payments were moved either online or to over the phone. Today less than 5% of those assessments have returned to face-to-face, so what assessment have Ministers made of that change and are there any links with the rise in fraud?

My hon. Friend is right to identify that in the PIP space the Department has introduced a blend of phone, video and face-to-face assessments with the aim of delivering a more efficient and user-centred service. Since telephone and video assessments have been introduced there has been no evidence to suggest that these delivery channels are less effective than face-to-face assessments in detecting fraudulent claims. In 2023-24, PIP overpayments accounted for just 0.4% of the DWP’s overall spend on PIP but I assure my hon. Friend we will keep a close eye on that.

Marie Curie research has found that 15% of the three quarters of a million end-of-life carers are living below the poverty line, rising to 22% a year after bereavement. Given these statistics, will the Minister consider extending the time that carers can claim carer’s allowance from two months to six months after bereavement?

We keep these matters under review. I have not looked at that particular proposal before, but if the hon. Gentleman would like to drop me a line I will certainly give it a careful look.

Final question, Dame Meg Hillier.

I applaud the Front-Bench team for its energy in driving the child poverty taskforce, but every decision has consequences and costs. Will the Minister outline the costs of some of the processes she is looking at changing, particularly the cost of lifting the two-child cap, and if she does not have the figure to hand will she write to me?

I thank my hon. Friend the Chair of the Treasury Committee for all her work on this issue. I will happily engage with her through correspondence on the matter.