“Get Britain Working” White Paper

1.40 pm

With permission, Madam Deputy Speaker, I shall make a statement on our “Get Britain Working” White Paper, bringing forward the biggest reforms to employment support in a generation, turning a Department for welfare into a Department for work, and taking the first steps towards delivering our bold ambition of an 80% employment rate in a decade of national renewal. Nothing short of fundamental reform is needed to turn the page on the last 14 years, the legacy of which has left the UK as the only G7 country whose employment rate has not returned to pre-pandemic levels and with a near-record 2.8 million people out of work due to long-term sickness, and almost 1 million young people not in education, employment or training and millions more stuck in low-paid insecure work. All those problems are far worse in the midlands and the north, parts of the country that were deindustrialised in the ’80s and ’90s—the very same places that have lower life expectancy and chronic poor health that the Conservative party repeatedly promised to level up but repeatedly failed to deliver on. The result is an economic but, above all, social crisis, paid for in the life chances and living standards of people across this country, and by a benefits bill for sickness and disability that is set to rise by £26 billion by the end of this Parliament. We have ended up here because of the failure of Conservative Members to create good jobs in every part of the country, to deliver on the NHS, and to properly reform welfare. Under our Government, that will change, with new opportunities matched by the responsibility to take them up: under this Labour Government, if you can work, you must work. Our White Paper brings in three major reforms. First, we will create a new jobs and careers service that overhauls jobcentres: from a one-size-fits-all service that overwhelmingly focuses on administering benefits, to a genuine public employment service that provides personalised support for all. We will bring jobcentres together with the National Careers Service in England, beginning with a pathfinder early next year, backed with £55 million of initial funding. We will work closely with mayors and local leaders to ensure that our new jobs and careers service is rooted in local communities and properly joined up with local help and support. We will also work closely with employers to develop the service, because only one in six businesses has ever used a jobcentre to recruit, and that must change. For too many people, walking into a jobcentre feels like going back in time to the ’80s or ’90s, so we will trial a radically improved digital offer using the latest technologies and AI to provide up-to-date information on jobs, skills and other support, and to free up work coach time. We will also test video and phone support—because in the 2020s, rather than go into the jobcentre only every week or fortnight, people can have a jobcentre in their pocket. Our frontline staff are our greatest asset, so we will develop the work coach and careers adviser professions, including by launching a new coaching academy. The second major reform is our new youth guarantee, so that every young person is earning or learning. This comes alongside our commitment to provide mental health support in every school, our work experience and careers advice offer, and our plans to reform the last Government’s failed apprenticeship levy to give more young people the opportunities they deserve. Our new youth guarantee will go further, bringing together all the support for 18 to 21-year-olds under the leadership of mayors and local areas so all young people have access to education, training and employment opportunities and no young person misses out. Today I can announce that we will establish eight trailblazer areas for our youth guarantee: the Liverpool city region, the west midlands, Tees valley, east midlands, Cambridgeshire and Peterborough, west of England, and two areas within Greater London, backed by £45 million of additional funding. I can also announce a new national partnership to provide exciting opportunities for young people in sports, arts and culture, starting with some of Britain’s most iconic cultural and sporting organisations, including the Premier League, the Royal Shakespeare Company, and Channel 4, building on the brilliant work they already do to inspire and engage the younger generation and get them on the pathway to success. This is our commitment to young people: “We value you, you are important, we will invest in you and give you the chances you deserve; but in return for these new opportunities, you have a responsibility to take them up, because being unemployed or lacking basic qualifications when you are young can harm your job prospects and wages for the rest of your life. And that is not good enough for young people or for our country.” The third reform in our White Paper is our new plan to drive down economic inactivity caused by poor health. The Health Secretary is already taking action to get people back to health and back to work, with extra support to drive down waiting lists in the 20 NHS trusts with the highest levels of economic inactivity. We are joining up employment and health support, expanding individual placement support to reach an additional 140,000 people with mental health problems and delivering new WorkWell services, which include GPs referring patients to employment advisers and other work-related support such as the brilliant service in the Junction Medical Practice in North London we visited recently. However, we will go much further and faster to tackle this issue. To meet the scale of the challenge, we will devolve new funding, new powers and new responsibilities to tackle economic inactivity to mayors and local areas, because local leaders know their communities best. We will support all areas in England to produce local “Get Britain Working” plans, joining up work, health and skills support. Today I am announcing eight trailblazer areas backed by £125 million of additional funding in south Yorkshire, west Yorkshire, the north-east, Greater Manchester, Wales, York and north Yorkshire, and two Greater London areas. In three of these areas—south and west Yorkshire, and the north-east—this will include dedicated input and £45 million of funding for local NHS integrated care systems. We are also funding a new supported employment programme called Connect to Work, backed by £115 million of initial funding for next year. This will be included in the integrated settlements of combined authorities, starting with Greater Manchester and the west midlands. Employers have such an important role to play in helping get people into work, and crucially to stay in work, so today I can announce a new independent “Keep Britain Working” review, looking at the role of UK employers and Government in tackling health-related inactivity and creating healthy workplaces. This will be led by the former chair of John Lewis, Sir Charlie Mayfield, and will report in the autumn. Finally, we will bring forward a Green Paper on our proposals for reforming the health and disability benefits system, so that disabled people and those with health conditions have the same rights as everybody else, including the right to work; so that we treat disabled people with dignity and respect; and so that we shift the focus to prevention and respond to the complex and fluctuating nature of today’s health conditions. We will work closely with disabled people and their organisations as we develop our proposals, which we will publish in the spring. This White Paper starts to turn the corner on the past 14 years, putting forward the real reforms we need to get more people into work and on at work, to give young people the very best start in life and to ensure our employment and social security system understands the fundamental issue that a healthy nation and a healthy economy are two sides of the same coin. This is how we get Britain working again. It is how we get Britain growing again, and I commend this statement to the House.

I call the shadow Secretary of State.

13:50:00

I thank the Secretary of State for advance sight of her statement. The Conservatives are the party of work and aspiration—[Interruption.] In the decade after we took over from Labour, we drove down unemployment—[Interruption.]

Order.

In the decade after we took over from Labour, we drove down unemployment and economic inactivity year after year, including youth unemployment, which went down by 400,000 after the mess we inherited from the last Labour Government. During the pandemic, we took unprecedented action to protect jobs and livelihoods, but since the pandemic we have faced a new and difficult challenge in this country: rising economic inactivity, particularly among young people. In government, we were tackling that. I know that, because as a Health Minister I was working on it. I am delighted that the right hon. Lady and the Health Secretary visited one of our WorkWell pilots just the other day. I was working on our fit note reforms, our youth offer, which helped a million young people, and our universal support scheme, which I now hear the Secretary of State has quietly rebranded as her own Connect to Work scheme. Far from being cross that the Government are pinching our ideas, I welcome the right hon. Lady taking our work forward. She is making the right noises about how important it is to fix this area. Economic inactivity is a big problem for our economy and for each and every individual who risks being written off to a life on benefits. Knowing that, I am disappointed by the substance of what she is announcing today, because far from matching her rhetoric, it appears to be little more than a pot of money for local councils, some disparaging language about the work of jobcentres and a consultation that will be launched in the spring. Given that the Government have had 14 years to prepare for this moment, is that it? Where are the reforms to benefits that will make material savings to the taxpayer, such as the £12 billion we committed to save in our manifesto? Where are the reforms to fit notes, which we had handed over, ready to go? Where is the Secretary of State’s plan for reforming the work capability assessments? She has banked the £3 billion of savings from our plan, but has failed to set out her own. Her big announcement is making benefits for young people conditional. Did she forget that they already are? The fact is that the Secretary of State has dodged the tough decisions. Every day that she kicks the can down the road costs the taxpayer millions of pounds. At this rate, spending on sickness benefits will rise to £100 billion by the end of this Parliament. They are taking that money from farmers, from pensioners and from businesses. To get people off benefits, we need jobs for them to go into. Those are the very jobs that businesses are saying, since the Budget, they will no longer be hiring for. While the right hon. Lady tries to get people into work, her Chancellor is busy destroying jobs—50,000 jobs lost from her first Budget alone. If the Secretary of State wants to get more 18-year-olds into work, she should have a word with her Chancellor, who has made it so that from April it will cost £5,000 more for a business to employ them. She should have a word with her Business Secretary, whose Employment Rights Bill will, according to the Government’s own impact assessment, make it less likely for employers to take on young people. The Government cannot solve this problem on their own. Businesses are the engine of our economy that create jobs for people to do. It is telling that I cannot see a single business representative on the new Labour Market Advisory Board. I did hear the right hon. Lady talk about some new partnerships, but this announcement is such a song and dance about so little that I feel sure she will qualify for one of her own Royal Shakespeare Company apprenticeships. She has kicked the can so far down the road that her new partner, the Premier League, is sure to be on the phone by the end of the day. May I for a moment cut through the word soup of the announcement? It is time for the right hon. Lady to tell the House some facts. How many people will it help into work, and by when? What is the total she is saving the taxpayer? When will she reach her 80% employment target? What return on investment is she expecting from these plans? How will she measure her success or failure? This is so far from the bold grasping of the nettle that she is making it out to be and that this country needs for our economy, for taxpayers and for the millions of people missing out on the purpose and freedom that work brings. It is simply not good enough.

May I say gently to the hon. Lady, who I personally like and have a great deal of time for, that the only people who dodge difficult decisions on welfare are the Conservatives? The facts speak for themselves. By the end of this Parliament, the Office for Budget Responsibility says that 420,000 more people will be on health-related universal credit benefits, rising from a third now to a half at the end of the Parliament. That is her Government’s legacy. One in eight of all our young people are not in education, employment or training. We have seen a doubling in the number of young people out of work due to long-term sickness and a doubling of young people out of work because of mental health problems. After 14 years in government, who does she think is responsible for that? I am afraid that the truth is staring her in the face: the Conservatives are now the party of welfare, and Labour is the party of work. The hon. Lady talks about British businesses. I know only too well the pressures that many businesses face. We have spoken to the CBI, the Federation of Small Businesses and the British Chambers of Commerce, and they are keen to work with us on our proposals. They know that their members have hundreds of thousands of vacancies that they need to fill, one in three of which is because of skills gaps. They know that 300,000 people every single year fall out of work due to a health condition. They need support to try to tackle that problem. I believe that the Department for Work and Pensions and jobcentres should serve businesses’ needs and aspirations, not be the place of last resort. That is precisely what our reforms will deliver. Finally, the biggest challenge we face today is the growing number of people out of work or at risk of falling out of work due to health problems or a disability. Our entire employment and benefits system is simply not geared up to deal with that. We will take examples of good practice from wherever we find them, but we have got to go much further. We need big reforms, not easy slogans that say people just felt a bit too bluesy to work, which do nothing to help people get to grips with the real issues in their lives. We are facing up to our responsibilities and the difficult decisions necessary to get Britain working again. It is time the hon. Lady and her party did the same.

I call the Chair of the Work and Pensions Committee.

I warmly welcome my right hon. Friend’s statement, and I look forward to reading the White Paper later. The cross-departmental approach she is taking with colleagues is essential and is a breath of fresh air, particularly in relation to tackling the root causes of economic inactivity, which she has explained predominantly relate to ill health. In addition to the need to tackle regional inequalities in employment, my right hon. Friend will be aware that there is a 30% disability employment gap, with 2.25 million disabled people wanting and able to work. How will she tackle that real injustice? We know that disabled people are more likely to be living in poverty than other groups. What are her specific plans in that regard?

I thank my hon. Friend for that important question. The Minister for Social Security and Disability and I are working hard to tear down the barriers to disabled people being able to get work and get on in work. We are taking action across Government, including reporting on the disability employment gap. We need to tackle the long waits for Access to Work and the adaptations and other support that people need. We also need brilliant supported employment programmes for people with autism and learning difficulties, such as those that I and my right hon. Friend the Health Secretary recently visited in our own NHS trusts. They really provide a pathway to work, with the right help and support. There is much more that we need to do, and I look forward to discussing these issues with my hon. Friend and other members of the Committee.

I call the Liberal Democrat spokesperson.

Under the Conservatives the UK’s was the only economy to see employment rates fall over the last five years, leaving a legacy of wrecked apprenticeships, mental health services not fit for purpose and millions on waiting lists unable to work, as well as those with caring responsibilities staying at home to provide care for their loved ones because of the failure in our social care system. The Liberal Democrats welcome steps to improve access to skills, training and education. I praise the work of Fedcap and Maximus UK, which are doing just that in Chichester in conjunction with the jobcentres, working with those who have had long periods of economic inactivity or have additional challenges in finding work. But the insecurity and short-term nature of Government funding for such projects means that both organisations had to pause their referrals this year while they waited for the Government to confirm their continued funding. I am sure that the Secretary of State agrees that to get people back into work, the organisations already trying to do that need more security from the Government. When it comes to tackling the mental health crisis, it is not enough to reverse the Conservatives’ lack of action. The Government must be proactive in improving mental health services. I invite the Secretary of State to take the proactive ideas that the Liberal Democrats laid out in our general election manifesto such as catching more mental health conditions early on by offering mental health MOTs and the introduction of mental health hubs in every community to deliver ease of access to walk-in services and support. It is abundantly clear that ensuring people get the NHS treatment they need is critical to getting people back to work. The NHS cannot tackle its long waiting lists unless the Government get serious about fixing the crisis in social care. We have heard a lot of words from the Government on social care but seen little action, with the increase in the social care budget totally eroded by the national insurance contribution rise. Does the Secretary of State agree that a healthy society is a productive society and that fixing the health and social care crisis will get our country back to work?

I thank the hon. Lady for her questions. Yes, I agree that we have got to tackle the root causes of the problem and have an NHS and social care system that is fit for purpose. We have put forward our commitments on mental health support in every school and every community. We know that many mental health problems start before someone turns 18, so we have to try to prevent those problems in the first place, but there is much more that we need to do. We are starting to see fantastic NHS services that provide employment advice as part of care. The evidence shows that if a person is in good work, a sense of purpose and structure is good for their mental health. My right hon. Friend the Health Secretary is pushing for that to be available in all parts of the country. I am under no illusions about the scale of the challenge. Only 3% of people who are economically inactive get back to work in any given year, so we have to prevent the problems from happening in the first place as well as doing more to help those people into work.

Under the last Government, the DWP faced legal action for its unlawful treatment of disabled people. How will this White Paper, with its positive vision, rebuild trust and better support disabled people going forward?

The Government believe that disabled people have the same rights as everybody else, including the right to work. Our mission is to break down the barriers. Many disabled people would want to work if they could get the right help and support and a job that fits their needs and concerns, with greater flexibility. This is a really important challenge. I do not blame disabled people for often being frightened and worried when they hear about these discussions after what happened over the past 14 years, but we will work with disabled people and the organisations that represent them to get the world of work and the employment support system right and get a better-functioning system of disability benefits. This is a really big challenge for our country, but with these proposals we are taking an important step forward.

I welcome the Secretary of State’s ambition in many of the areas she has set out, and particularly the “Geep Britain Working” initiative. As a Parliament, we must come to terms with the obesity and mental health crises, so I welcome what she is doing with the Secretary of State for Health. May I bring to the Secretary of State’s attention the work of South Wilts Mencap? I recently met Robin Clifford, and over 14 years I have seen the work that that group of trustees does with the adult learning disabled, a particular and special group of individuals in my constituency. I would welcome the opportunity to meet the Minister for Social Security and Disability to look at programmes that could be started or pilots that could be undertaken to get the learning disabled into meaningful activity where they can make some contribution through paid work.

I thank the right hon. Gentleman for that important contribution. I and the Minister for Social Security and Disability would be keen to hear more about that work. I recently visited a supported employment programme—a year-long supported internship—run by my local health service for young people with autism and severe learning difficulties. It started by talking to the parents about what the young people could do, and not just what they could not do. The young people were got on the bus to get them to work. They tried three different jobs around the hospital to find the one that best matched their needs, and after that year every single young person was given a paid job. That is so successful that we are expanding it to the local university and to one of Leicester’s biggest hotel chains. These changes are possible, and I am keen to work with the right hon. Gentleman in his area to ensure that we give these opportunities.

I warmly welcome my right hon. Friend’s statement. I believe that these reforms will be transformative, and it is not before time. In my constituency, we have long recognised the gaps that exist in the system. Our local authorities have put in place the brilliant “Working Denbighshire” programme and Conwy employment hub, which really drills down into what local people need and takes them on a pathway into work. Does the Secretary of State agree that devolving power and—crucially—funding in the way she set out is key to achieving the best results we can for local people in their area?

This is a major change in our approach. Local areas know best their needs and the different organisations that can help achieve goals. I know that economic inactivity in my city is predominantly driven by people with caring responsibilities; in other parts of the country, it is more about physical health or mental health problems. We need different things in different parts of the country—that is the best way to get the best results. It is a big change for the Department for Work and Pensions to be a much more localised service and to be much more joined up with other parts of government, both nationally and locally, but that is how we will deliver change.

Businesses in my constituency are really worried and putting off investing and creating jobs because of the Labour party’s Budget, and in particular the increase in regulations and the national insurance increase. How does the Secretary of State plan to get everyone who should be in work back to work if no jobs exist out there?

I understand the pressures that many businesses are under. The Budget tried to deal with a very difficult issue: if we are spending more than we are earning, our public finances are not working. Anyone who runs a business knows that they have to get the finances right, but many organisations recognise that they need to recruit more people with the skills that meet their particular concerns. They are worried about the increasing number of health conditions and people leaving work because of them. I am determined to work with and serve local businesses. I would be very happy to meet the hon. Gentleman to talk about the specific needs of businesses in his constituency.

I warmly welcome the White Paper. I think it is a huge step forward. Mental health challenges have been the biggest single driver of rising inactivity among the young, and we know that mental health can be hugely helped by work. One study shows that just eight hours of work a week will reduce the risk of depression and anxiety by up to 30%. Given that, what will the Secretary of State do to help support those at risk from mental health issues to get back to work?

I have talked about what we aim to do to prevent mental health problems from happening in the first place, with more mental health support in schools and in the community. I see this as a fundamental overhaul of the way the DWP and the NHS work together, so that support to get people with mental health problems into the right jobs becomes part of what the NHS does, by putting employment advisers into the NHS. The individual placement and support service, which began under the last Government through the NHS, has shown quite phenomenal results—40% of people are in work after five years. Their use of the health service—the number of relapses and days they spend in hospital—are also reduced. That is better for work and for mental health. This requires a big change in the way we work, but my right hon. Friend the Health Secretary and I are determined to make that happen.

Many disabled or ill people were terrified by the Tories’ proposals to cut £3 billion from sickness benefit. Given that Labour is continuing that cut, will the Secretary of State promise to sign up to the principle of “nothing about us without us” and ensure that disabled people, those with ill health and those with lived experience of these systems are round the table, making the decisions on how this moves forward?

I have always been a big champion, including when I worked in social care, of working in partnership with people to get the decisions right first time. That is really important, which is why the Minister for Social Security and Disability and I are absolutely clear that we will work with disabled people in the relevant organisations to get this system right. I want to be really clear that the system is not working. People have to wait weeks on end to get an assessment, which often is overturned at tribunal. We do not do enough to prevent people from falling out of the workplace. Ninety per cent. of people who get back into work after a bout of sickness do so within the first year, but we do not use that opportunity to provide the help and support that they need. We need change. I understand how worried people are when they hear about change, but I think they would also say that the change needs to happen, and we are determined to put that in place.

I warmly welcome the statement by my right hon. Friend, because giving people the opportunity to get on in life and have dignity in good work is at the heart of what drove me to this place. Does the Secretary of State agree that helping people into work in Paisley and Renfrewshire South is about getting the economy growing again, as well as putting more money into people’s pockets? Will she say a little more about her discussions with the Scottish Government to ensure that they will play their full part in making sure that this works?

I am absolutely determined to get more people into better-paid jobs in every part of the country. That is the key to improving people’s living standards and to getting the economy growing again. Our new jobs and careers service will look different in Scotland because the Scottish Government are responsible for running the careers service there, but we are already in discussions about how to make sure that our plans meet the specific needs of people in Scotland, including in my hon. Friend’s constituency. I look forward to receiving her ideas and suggestions, which I know she will always provide.

I want the Secretary of State to succeed, and I want her to be part of the first Labour majority Government ever to leave office with employment higher than when they started. I had hoped to hear a little more about reform, rather than just about a review, but this is a welcome step in the right direction. Businesses in Basildon and Billericay have been telling me that although they welcome some of the schemes—I am sure that some of them will do good things—they are absolutely terrified by both the taxes coming through national insurance and the hit on them through business rates. The Office for Budget Responsibility says that at least 50,000 jobs a year will go because of those changes, so where will the people who she is hoping to get off benefits and into work find that employment?

As I have said to other hon. Members, I am keen to talk to businesses right across the country, including in the hon. Gentleman’s constituency, about the challenges that they face. We took a decision when we got into office that we could not continue with the fantasy economics. We cannot spend more than we earn. We have to invest in the long-term physical infrastructure of the country, but also in our people, who are our best assets. We must get the NHS back on its feet. I know the issues that businesses face, but they are also thinking about the longer term—the vacancies, and how on earth they get the skills that their business needs. I would be very happy to talk to the hon. Gentleman about that, if he likes.

I welcome the statement from my right hon. Friend, and particularly what she said about the coaches and assistance for young people getting into work. What she describes seems to fit neatly with what the Government propose for the green economy, and its highly skilled, well-paid jobs. How will training for those jobs play a part in getting people from unemployment into work?

My hon. Friend hits the nail on the head. The “Get Britain Working” White Paper is part of a much wider series of reforms that the Government are making to create more good jobs in every part of the country, including in green energy, through our modern industrial strategy, and through our plans, in the new deal for working people, to make work pay. Yesterday, I was at a college in Peterborough that is looking at how to upskill young people so that they can get the clean, green energy jobs of the future. That needs to happen in every part of the country, because we want the new jobs that we are creating to be available to those who need them most. We have not really managed to fit that together before—to get the DWP and our “Get Britain Working” plans underpinning our local growth plans. That is a big change that we have to deliver, if we are to make sure that everybody in this country benefits from the jobs we are creating.

I welcome much of what the Secretary of State has said, and I am delighted that she has assured us that there will be discussions with the Scottish Government about plans for Scotland. Throughout the past two or three years, businesses in my constituency have told me that they are concerned that they cannot get people to work for them, so this strategy will be welcome. However, does the Secretary of State appreciate that many of us see a contradiction between this policy and the national insurance changes? A major employer in my constituency tells me that the changes will cost it £250,000 extra a year, and it will not take on seasonal workers because it cannot afford to. How does that damaging policy for business go alongside trying to encourage more people back to work?

Of course businesses face these pressures, but I think many of them understand that the Government have to look at the fundamentals. We faced a problem with the public finances when we got into government. My right hon. Friend the Chancellor took the decision that the only way we could sort out the country for the long term was to get the public finances back on a more sustainable footing. The businesses that I have met, including Tesco in my constituency, raised concerns with me, but they also said that they really want to get more young people who have mental health problems into work. Tesco has a brilliant partnership with the King’s Trust to get those young people into work and help them stay there, because it knows that the key to those young people’s future is to get those skills, so that they can grow business and make the changes that this country needs.

I thank my right hon. Friend for her statement. My constituents will very much welcome the additional funding for young people in the Tees Valley, and the modernisation of jobcentres, which will benefit our wonderful jobcentre staff. Can the Secretary of State say how the changes will dovetail with the Employment Rights Bill? How will we ensure that young people are offered quality employment and training opportunities, and not pressured into accepting inadequate and insecure zero-hours jobs? Can she also say how the Government and Members can monitor and evaluate the combined authorities’ delivery of the youth trailblazer programme?

My hon. Friend will know of our plans to make work pay, bring in day one employment rights, end exploitative zero-hours contracts and improve flexibility at work. We need to do all those things to make sure that there are good-quality job options out there for young people. There will be new leadership roles for mayors in combined authorities, but also clear accountability for delivering the outcome that we want, which is that every young person has an opportunity to earn or learn. We will make sure that happens.

To ensure that “if you can work, you must work”, will the Secretary of State familiarise herself with the works of Jeremy Bentham?

If I have time.

We have heard much about the failures of the Conservative party, but after 17 years of SNP failures, young people in Central Ayrshire are looking to this Government for the opportunity for a good job. What more will my right hon. Friend do, through today’s announcement, to help young people in Central Ayrshire and across Scotland?

It is hugely important that we deliver these new opportunities in every part of the country, including to people of all ages in Scotland. We will work with the Scottish Government on that, but also, really importantly, with local councils, who have a huge role to play. Our jobcentres really need to change. They need to meet the needs of employers and future employees in every part of the country. I look forward to working with my hon. Friend, to get his ideas on what will work best. Perhaps we could do a joint visit to his jobcentre.

It is all very well us talking about the Department for Work, but a challenge is often that we fail those in employment who are interacting with the benefit system. I have a number of constituents in North East Fife who are paid on a four-weekly basis but who also claim universal credit, which means that, one month a year, they lose their universal credit. Simply telling them to try to put money aside to bridge that gap is not, I think, a professional way for us to support those people. I know that has been an ongoing challenge, but will the consultation look at such issues?

The hon. Lady raises a really important point. We have a clear manifesto commitment to review universal credit, tackle poverty and make work pay. That issue has been raised a lot with me and the Minister for Social Security and Disability. I am sure that he will look closely at that. We need our benefits system to match the reality of people’s working lives today.

I very much commend the Secretary of State for the youth guarantee. In my constituency, many businesses have invested in the hi-tech industries of the future. However, I speak to young people and their families who are concerned about those young people getting jobs on the first rung of the ladder. This year, there will be 3,000 undergraduates graduating from the University of Reading, and a further 3,000 people turning 18 in my constituency. What can the Secretary of State and her Department do for those young people to ensure that local jobs and training opportunities match the economic advantages of the area they are from?

I personally believe that we need to start much younger than 18, with good work experience and careers advice in schools. I have certainly seen that in my constituency; even in primary schools, teachers have brought in people with different jobs, in different professions, to open children’s eyes and minds to the possibilities of the world of work. We need to bring together everything that is happening in our schools, colleges and the world of work. That is how we open up possibilities for young people. I hope that the youth guarantee will do precisely that in local areas and provide the opportunities that my hon. Friend’s young constituents need and deserve.

I note that the White Paper is called “Get Britain Working”, not “Get the United Kingdom Working”. I appreciate there are devolution issues, but when I listened to the Secretary of State’s statement, I found it very England-orientated. There are references to national partnerships, but how does the White Paper fit with getting the United Kingdom working? Will there be Barnett consequentials? And will things be left up to the sometimes failing devolved institutions?

I thank the hon. Gentleman for his question. Northern Ireland has one of the highest rates of economic inactivity in the United Kingdom, which is a real concern for me, and, I am sure, for him. I have already spoken to the Minister responsible. There are things happening in Northern Ireland that we can look at to see whether there are lessons that could be learned for elsewhere in the country. We will always work closely with the devolved Administrations to ensure that our plans match people’s needs in every part of the country, because that is what his constituents and the country as a whole deserve.

Given the empty Opposition Benches, it looks like the Conservative party has adopted a policy of a three or two-day week to tackle the unemployment problem. I refer to my entry in the Register of Members’ Financial Interests as chair of the Public and Commercial Services Union parliamentary group. From the tone taken and the statement given today, my understanding is that the Government acknowledge that it will be support, not sanctions, that will tackle this issue overall, and that that support will come from new employment centres in our constituencies, staffed by fully trained, motivated and well-paid staff. The Secretary of State mentioned meeting businesses and mayors. May I ask that she also meets the trade unions? The PCS parliamentary group would welcome a meeting with her to talk through the roll-out of this programme, which will benefit both the staff and the recipients of their services.

I thank my right hon. Friend for his question. Our 16,000 work coaches and other frontline jobcentre staff are our biggest asset. Some have worked for the DWP for 25 or 30 years, because they care about their communities. They have been stifled by a system that had an overwhelming focus on monitoring and administering benefits. They know what their local areas want and need. I spoke to the head of the TUC yesterday about our plans. I am sure that either the Minister for Employment or I would be very happy to meet the PCS to talk about how we take these plans forward.

I thank the Secretary of State for her statement. Some 13% of jobs in Somerset are in manufacturing, and many of them are in the defence industry—in Thales in Templecombe, RNAS Yeovilton in my constituency, or Leonardo nearby. The manufacturing industry contributes £1.87 billion to our local economy, which is more than any other single industry. However, data shows that women represent only 30% of the STEM—science, technology, engineering and maths—workforce. Does the Secretary of State agree that we should be making more targeted interventions to support more women into this important industry?

One hundred per cent. I could not agree more with the hon. Lady. We need to get more women into manufacturing, engineering and all those STEM subjects. I met many apprentices yesterday on a visit to Peterborough college, including young women who said, “This is for me.” More women need to do this. They are great jobs and great careers, with great pay—100%.

It is wonderful to hear from my right hon. Friend that Greater Manchester will be one of the trailblazer areas for these vital reforms. When I speak to businesses in Altrincham and Sale West, they tell me that the greatest challenge they face is recruiting people to fill vacancies. Can the Secretary of State outline a little further how these plans will ensure that businesses can recruit the skilled staff they need, and give young people in my constituency great opportunities in the process?

This is one of the biggest challenges that many employers face, and the reason that many of them are so keen on apprentices—as I was told yesterday—is that they can mould young people with the specific skills that their companies need. There are two points here. First, we are reforming the apprenticeship levy and transforming it into a new growth and skills levy, so that businesses have more flexibility in how they use it. Secondly, many young people have missed out on those basic skills of maths and English at GCSE, and cannot even get on to the apprenticeship scheme. We need that training or those foundation apprenticeships, because they are a key part of the changes that we want to make and to spread, through our youth guarantee, to areas including Greater Manchester.

The Workways team, which is run by Carmarthenshire county council in my constituency, does impressive work in facilitating access to critical skills and giving career opportunities to people who are out of work. It has received funding through the shared prosperity fund, but that is due to end. Can the Minister tell me how such vital organisations in Wales will benefit from her Department’s plans?

The whole point of devolving responsibility and accountability to mayors and local leaders is that they will know best the organisations that they need to involve in tackling economic inactivity, delivering the youth guarantee and embedding jobcentres into local communities. There is an additional £900 million in the shared prosperity fund for 2025-26, and that is a key element that we need to join up with the rest of these measures, but if the hon. Lady will write to me with more detailed information, I shall be happy to look at it.

Barriers to employment and a lack of workplace support for disabled people remain persistent challenges, along with inadequate social security payments for everyone regardless of employment status. Can my right hon. Friend reassure disabled people that the Government’s new support measures will not be conditional on their being able to work, and that no one will be sanctioned for non-attendance at medical appointments?

Sanctioning people because they use the NHS to make themselves as fit and healthy as possible is completely the wrong approach. I understand why disabled people are worried when they hear talk about helping people into work or reforms of sickness and disability benefits—they are worried because of what has happened over the past 14 years—but we are determined to break down those barriers to work. I think that many disabled people, given the right help and support and the right flexibility to work, could work and would want to work. That is what we are focusing on, and that is what we are determined to deliver.

A fantastic local social enterprise in my constituency has been helping adults with disabilities back into work. It recently set up a café that is run entirely by adults with learning disabilities. How does the Department plan to take evidence from innovative organisations of that kind, and will the Secretary of State meet members of this organisation to find out about the work it has been doing?

The reason I am so passionate about devolving responsibility and accountability to local areas is that it is intended to engage precisely the kind of organisation that the hon. Gentleman has mentioned. For instance, I know the various organisations in Leicester but I do not know those in his constituency, so I believe that we need a much more localised system. If he will write to me with the details, I shall be very keen to look at them.

Measures such as the young person’s guarantee, which are already working successfully in Wales, are welcome. Could the Secretary of State tell us a bit more about how she will work with the Welsh Government to deliver on the plan to make work pay?

As my hon. Friend says, there is already a young person’s guarantee in Wales. The jobcentre reforms will look different in Wales because the Welsh Government are responsible for the careers service, but we want to work with them and with employers to overhaul their approach, to unleash the ideas of our work coaches and free up their time to focus on those who need help the most, and to ensure that our jobcentres become the first port of call, not the last, for employers to recruit their next star employee. We want employers to be much more joined up with local skills support and health support. We will be having those conversations with the Welsh Government, and I am keen to receive my hon. Friend’s input as well.

My constituent Diana has a daughter who has autism and lives independently with some low-level support. She previously had a part-time role while living in Bath, with help from an employment support job coach, and she wishes to do the same having now moved to my constituency. However, she has found that much harder since moving, and is yet to find similar support in Sussex. How will the Secretary of State tackle the postcode lottery that exists for those in need of extra help to get into employment?

I am very sorry to hear that Diana’s daughter has not received the level of support that she had before. It is clear that with the right support she will be able to engage with the world of work as well as leading an independent life, which is what she wants. Our reforms are intended to ensure that such support is available everywhere. If the hon. Lady wishes to forward the details of that case, I shall be happy to take a look at them.

It is vital that people are helped into fulfilling, well-paid work so that they can realise their potential. The Secretary of State rightly mentioned the importance that she places on discussing these changes and reforms with disabled people and disabled people’s groups. In the course of her discussions, will she ask those people and groups about the work capability assessment? Many people who visit my constituency surgery feel degraded and demeaned by the WCA tests, and many of the decisions that are made turn out to be wrong and are successfully appealed against later.

As my hon. Friend will know, that is why the manifesto on which we were all elected said that we would reform or replace the work capability assessment. People wait for that assessment, and for the personal independence payment, for an average of between 14 and 18 weeks, and about 70% of decisions on the WCA and PIP can be overturned at tribunal. We need a system that gets the decision right first time, because that is what disabled people need and deserve.

The Secretary of State has given us some positive new spending plans today, but she has also given some mixed messages to young people, with some investment on the one hand and new conditions, which she calls responsibilities, on the other. Will she commit herself to working with and empowering young people to shape this new spending in local areas and potentially challenge any new conditions on support? I am thinking in particular of neurodiverse young people, whose perspectives are vital and who are worried about what this will mean for their wellbeing and life chances.

The White Paper will provide for a new youth employment panel so that we can genuinely engage with young people in developing our proposals. I believe that it is vital for people to be in education, employment or training when they are young, because if they are not, the impact can be lifelong. To those who lack basic skills, today’s world is brutal, and being unemployed when young can have a permanent impact on someone’s job prospects and earnings potential. Alongside genuine new opportunities, there should be a responsibility to take them up—and do you know what? I have never met a young person who did not want to work, who did not want to obtain skills, who did not want a chance. We will fulfil our side of the bargain, and meet our responsibilities to provide those opportunities. I believe that, just as they did when the last Labour Government set up the new deal for young people and the future jobs fund, young people will take up those chances.

I thank the Secretary of State for coming to the House to announce these measures. I am pleased to see that Cambridgeshire and Peterborough has been included as one of the areas for trailblazing the new youth guarantee. On Friday, I held a roundtable with local businesses, and one of the main themes that emerged was the lack of ability to recruit skilled people locally. Will the Secretary of State explain how these measures will help to address the situation?

I thank my hon. Friend for his question. I have already spoken quite a lot about changes to the apprenticeship levy, which are important, but there are many other things that we can do. We have seen real success with sector-based work academies, which are run by jobcentres. Those are short, six-week courses that give the specific skills an employer needs, alongside guaranteed work experience for the potential employee and a guaranteed interview. They have had huge success for people looking for work and for employers, because they get someone with the skills they actually need. We are committed to doing that this year, and I hope we will roll it out further. That is just one of many examples of how we can change our jobcentres and the DWP to better serve employers and their needs.

Stepping Hill hospital in Hazel Grove has a huge repairs backlog, which is reported to cost £130 million. We have had buildings knocked down because they are no longer safe, medics wading through flooded corridors and, most recently, a light fitting falling down in a delivery suite when the couple were in active labour. This situation has a massive impact on waiting lists and, consequently, on how much my residents can work, including Anthony, who got in touch yesterday to say that he is waiting for rehab after having a heart attack in June. Can the Secretary of State confirm that any extra funding will go towards what local communities need in order to get back to work? Many of my constituents are as keen as mustard to do so, but they are on waiting lists. Even the most wonderful work coach can do very little when somebody is awaiting surgery.

The hon. Lady raises a massively important point, and I am really sorry to hear about what her constituents are experiencing. We have to get people back to health and back to work. It is no wonder that so many people are out of work due to long-term sickness, given that waiting lists are at near-record levels. That is why my right hon. Friend the Health Secretary is sending in extra help, including doctors, to drive down waiting lists in the areas that need help the most. It is a no-brainer that we have to get people off waiting lists to get them back to work. That is what I mean when I say that a healthy nation and a healthy workforce are two sides of the same coin.

Thurrock Lifestyle Solutions in my constituency is an excellent example of good practice in helping disabled people enter and stay in the workplace. It is particularly successful because it embodies the maxim, “Nothing about us without us”, as it is run by, led by and designed by disabled people themselves. Will the Secretary of State commit to taking such examples of best practice into consideration, and to ensuring that the voices of disabled people and those with long-term health conditions are put at the very heart of the strategy?

Yes. What my hon. Friend and many hon. Members have highlighted today are lots of individual examples of really good working, but we are not joining them up. They are not a central part of our employment system, but they absolutely should be. We know that we need extra investment, and the Chancellor has put £240 million into this endeavour, but we are not getting the most out of the money we are spending because it is not co-ordinated and joined up. That is what we mean by delivering investment and reform together. If it is locally led and involves people who are doing all this fantastic work, we can make a really big difference.

I welcome the initiatives and recognise that this is not a problem that has been created by the Government; it has been with us for a long time and started long before July this year. Northern Ireland has the highest level of economic inactivity in the UK, despite the fact that I can think of many initiatives in my own constituency for people with learning difficulties, for apprenticeships in certain sectors, for the work of local colleges and so on. Despite all that, the problem persists—and that is in a place with almost full employment. Can the Secretary of State give an assurance that, despite a Budget that will make it more difficult to recruit, she can set objectives for the number of people she believes can be brought from unemployment into work as a result of the initiatives?

The right hon. Gentleman raises many important points. As I said earlier, it is absolutely the case that Northern Ireland has the highest level of economic inactivity in the UK. We will set clear objectives for our plans as we work with the devolved Administrations, and at local level, to get the levels of economic inactivity down. That will be challenging because, as I said earlier, only 3% of people who are economically inactive get back to work each year. We need to increase that, and the only way we can do it is by more fully joining up work, health and skills support. Too much of the focus of welfare reform over the past 14 years has been on the benefit system alone. Clearly, the benefit system can incentivise or disincentivise work. We want it to incentivise work, but we also know that we need to join up work, health and skills if we are to get every part of the United Kingdom working again.

This statement will run until 3 o’clock, so short questions and short answers would be very helpful.

It is a sad reality that there are fewer people in work today than in 2019, before the pandemic, so I am under no illusions about the scale of the challenge. When I talk to young people in Welwyn Hatfield, the thing that most concerns me is that they often cite problems with their mental health as being a barrier to getting into work or progressing in work. Can my right hon. Friend reassure me that she will work in lockstep with the Health Secretary? We on the Labour Benches understand that investment in a healthy workforce is a down payment on future prosperity for us all.

In the interests of brevity, yes.

St Neots in my constituency is the largest town in Cambridgeshire, and it does not have a jobcentre; residents have to travel up to Huntingdon each week for their benefits. In the absence of a jobcentre, social enterprise has taken place. Last week I attended the launch of the St Neots citizen hub, which aims to connect individuals with opportunities and employers with talent. It provides a safe space in the heart of the community to address the fundamental issues of skills gaps—including life skills—social isolation and financial insecurity, and it is a great example of the new model for jobcentres. Will the Secretary of State ensure that staff at the jobcentre in Huntingdon can come down for one day a week so that residents do not have to keep making the journey up to Huntingdon?

That is a really important point. We want to see more of our work coaches going to where people are, rather than always expecting them to come in. If all that help and support is being provided at the St Neots citizen hub, it sounds like exactly the sort of place where our work coaches should be based, and I will certainly bring that up with them.

These changes are fantastic and are much needed to get Britain back to work after 14 years of dismissal and neglect of real lives and real people under the last Government. However, areas such as Portsmouth North do not have a devolution deal yet. Can the Secretary of State provide details on how those not in work in Portsmouth North will be able to get support and get back into work, and on how we can make our jobcentre accessible, to lift children out of poverty and to lift people back into the community?

I reassure my hon. Friend that it is the same for me and my city—we do not have a devolution deal. We are overhauling our jobcentres, and tackling economic inactivity with local “Get Britain Working” plans and our youth guarantee. Regardless of whether people are part of a mayoral or combined authority, that work will be led locally, including through the local council. We are determined to deliver in every corner of the country, because we believe that everybody deserves an opportunity to work. That is what our country needs to get growing again.

Steven Tysoe from east Devon used to be a Metropolitan police officer in London, and he showed me footage of his involvement in the riots in the capital over a decade ago. He was severely injured and was regarded by the DWP as disabled. Under the new right of disabled people to work, will the Secretary of State ensure that public servants who have been injured in the line of duty will not get hounded repeatedly by assessors?

I do not want to see people being hounded. If they are able to work, I want them to get the support they need to do that. That is the big challenge that we face. There are more disabled people working than ever before, but for many others their conditions might fluctuate and the world of work and the benefit system need to understand that. I am interested in providing people with support not hounding them—there should of course be conditions and responsibility within the social security system, as has been the case since it was set up—and I hope that is not happening to the hon. Gentleman’s constituent. If it is, perhaps he will write and tell me more about it.

Those who can work should work, but so should the support services. I welcome the Secretary of State’s statement on transforming that public service, which embraces many of the principles of the work done by the Local Government Association on “Work Local”. In Telford and Wrekin, where I was council leader, we were driving down youth unemployment under the previous Government, but we were expected to pay a charge to the DWP to share data. Will the Secretary of State assure me that that will not happen under these plans to work local?

It seems to me to be completely the wrong approach to put barriers in the way of data sharing. Some of the best innovations—I am thinking particularly of Barnsley council—have shared data between the health service, the jobcentre and the DWP about people facing barriers to work and what needs to happen to put that right. We have to enable that to happen everywhere. I want to tear down those barriers, not put more up, so I will definitely take away that issue.

I welcome the innovation and energy in the White Paper. It will make a huge difference to people and businesses across the country. In relation to the welcome announcement of eight trailblazer schemes, can the Secretary of State set out how young people in areas without mayoral combined authorities will see support, including my residents in Dartford and across the Thames estuary, where we want to see the fair growth that the Government are offering?

I 100% want young people, and all my hon. Friend’s constituents in Dartford, to have the same chances. As I said earlier, I do not have a combined authority in my city, so I am acutely aware of this issue. This will be for local councils to lead. They will be developing local “Get Britain Working” plans. They will be the responsible and accountable body over our youth guarantee. We have to deliver this everywhere because talent is everywhere but opportunity is not, and that is what we all came into politics to change.

This is a momentous White Paper by a momentous Secretary of State. Yesterday, I had the great privilege to take my right hon. Friend to Peterborough college to meet excellent businesses and apprentices doing brilliant work, including EML, Baker Perkins, Taylor Rose, Codem and Gen Phoenix. Those businesses and learners are excelling in a system that has failed too many of our young people. Apprenticeships are down and youth unemployment is up in my city. Can my right hon. Friend tell us how quickly we can get going on these new trailblazers?

I thank my hon. Friend for an amazing visit yesterday, and I hope he will pass on my thanks to Rachel at the local college and to all the local businesses and apprentices. I agree with him: the number of apprenticeship starts for young people dropped by 38% under the previous Government’s apprenticeship levy, and in Peterborough more than 1,350 young people are claiming benefits, with the majority not in work, so we must act swiftly, and we will. These programmes are starting immediately in the new year. I look forward to working with him and all those businesses and the college in Peterborough to put our plans into action, because we are determined to deliver.

I draw the House’s attention to my entry in the Register of Members’ Financial Interests and to the work that I did prior to prior to entering this place. It is difficult enough for a disabled person to enter employment; it is even more difficult for a disabled person to remain in employment if the employers are not aware of or not accommodating their disabilities and the reasonable adjustments that they might need. Within the debate on this White Paper, will the Secretary of State ensure that the work of exemplar employers is picked up and credited? There must be a recognition of the value that disabled people can bring to all workplaces. I also invite her to come and meet my old team in the employability service within NHS Lanarkshire, who have worked not just with Project Search but with disabled—

Order. I call the Secretary of State.

The issue that my hon. Friend raises is so important, and Sir Charlie Mayfield, who will be running our “Keep Britain Working” review, will indeed look at best practice among some great employers who understand what needs to happen to help disabled people get work and stay in work. If my hon. Friend writes to me about that exemplar working, I will make sure that he sees it.

Yesterday I was proud to host a reception from the Royal National Institute of Blind People, at which I heard that, across the UK, people with failing eyesight are not getting the support they need from the health service, from local authorities or from employers, and that they are falling out of work because of this. Can this be addressed as part of the programme being outlined today?

We will certainly speak to the RNIB to ensure that those points are included as we take our “Get Britain Working” White Paper forward.

If we search the record of this place, we see the phrase “no child left behind” mentioned over and over again, but during the pandemic, children were left behind. They have been washing up on the shores of social work, of the police sometimes, and of childhood mental health services, and I know from visiting my jobcentre in Barrhead that they are now washing up on its shores as well. What will this White Paper do to help that covid generation who were left behind?

When I visited my jobcentre in Leicester after being appointed to the work and pensions role in opposition, the very first thing its manager said to me was that the big problem was young people and mental health—the covid generation. They deserve more opportunities to earn and to learn. The country must do this. For me, the most concerning problem that we face is the rapid increase in young people not in education, training or employment. We know that we can deliver the youth guarantee, as we did the new deal for young people and the future jobs fund when we were last in government. This is a version of that, facing the problems of today and tomorrow to give that pandemic generation the chances and choices they need to build a better life.

May I start by welcoming the statement and the White Paper? The Secretary of State has confirmed that we are the party of work. There is so much good stuff in the statement and the White Paper, including reforms to jobcentres, the youth guarantee and joined-up health and job support, but I particularly welcome the talk of a right to work. Disabled constituents tell me that they are desperate to get into employment but cannot find employers who meet their needs. Without knowing the specifics, what general assurances can my right hon. Friend give those constituents that they will be able to find work under this White Paper?

This Government understand the importance of whether the benefit system incentivises or disincentivises work, but we must also address people’s skills, the barriers to work, including for disabled people, and the need to work much more closely with employers so that they understand the benefits of keeping people in work or getting them back to work. This is a huge agenda, and I think the DWP has been too centralised and too siloed in not joining up all this support. Our work coaches are desperate to make this happen, and under these reform programmes that is exactly what we will do.

Does my right hon. Friend agree that supporting people into work, through Government action nationally and, of course, locally, is an important part of being pro-business? Will she expand briefly on how the measures she has set out will benefit businesses of all sizes in my constituency, and will she reassure them that we are not only the party of work but a pro-business party?

Businesses in Rugby and across the country always say that they are desperate to recruit people with the right skills. If they do not have the right people, they will not be able to expand and thrive. This is a pro-business strategy to get Britain working again, so that we get Britain growing again. My hon. Friend the Minister for Employment says that we are the human resources department of the growth mission. I hope businesses in Rugby will see that and work with us to make sure we get it right.

I warmly congratulate the Secretary of State on all her hard work to deliver this White Paper, which proves not only that hers is a Department for work but that Labour is the party of work. Whereas, judging from the sea of green opposite, the Tories are a party of slackers. I warmly welcome the fact that Greater Manchester is one of the trailblazer areas. What is the Secretary of State most excited about in Andy Burnham’s plan to help tackle this massive problem in Greater Manchester?

Under Andy Burnham’s leadership, Greater Manchester is pioneering some of the changes that we want to see by fundamentally joining up work, health and skills support, by commissioning new talking therapy services for people seeking work, and by creating a new service to broker connections between jobseekers and employers. This will make sure that employers get the staff they need while also making the necessary adjustments. We want to build on that and expand it, because we are indeed the party of work. We believe that work brings self-respect, dignity, control and improved living standards. I am very proud of that, and I hope and believe that these reforms will deliver in every corner of this great nation, so that we invest not just in Great Britain but in great Britons—this country’s greatest asset.