DWP Estate: Office Closures

(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on proposed office closures in the Department’s estate.

On a point of order, Mr Speaker. May I seek your guidance on whether it is orderly for an hon. Member who has taken very substantial donations from a trade union to ask an urgent question on a matter of direct interest to that trade union?

We need to be careful. Is the right hon. Gentleman sure that the hon. Member for Glasgow South West (Chris Stephens) took the donation, or was it an agreement with the constituency party? This is a very serious allegation. Is it a constituency party donation or was it donated directly to the hon. Gentleman?

It is in the Register of Members’ Financial Interests.

That is not what I asked. We will leave it for now. We had better move on.

At the Department for Work and Pensions, we constantly look at ways to improve our services. I wish to say up-front that we know it is important to communicate changes to all relevant stakeholders so that everyone understands our plans and why we are making changes.

This seems to be an unusual situation, Mr Speaker. It is very disappointing that the embargo agreed with the Public and Commercial Services Union does not seem to have been respected. Clearly, our staff should be the top priority at this time. I hope colleagues will understand that I am not able to go into all the detail this morning as we are briefing affected colleagues as we speak. In fact, the delivery of the first stage of the strategy is being announced to affected colleagues at 10.30 today—right now. The Minister for Employment will write to MPs with an affected site in their constituency after 1 pm today, and there will be a written statement to Parliament tomorrow morning. The letter to MPs will include notification of a virtual surgery that the Minister for Employment will hold on Wednesday 23 March.

The change is to back-of-house offices and will support the delivery of the Government priorities to get more people back into employment, to deliver long-term savings for the taxpayer and to meet Government commitments to modernise public services. The Department has developed a strategy that will, over the next 10 years, reshape and improve how, where and when it delivers services to claimants. The Department is transitioning to an estate that is smaller, greener and better. This will deliver substantial benefits by increasingly developing modern, secure, resilient, sustainable and automated systems to drive better experiences for our customers, colleagues and taxpayers.

The plans for the next three-year period affect the future delivery of back-of-house services—that is, services that are delivered remotely via telephone and online, without the need to see customers face to face. I assure the House that the plans do not affect Jobcentre Plus and customer-facing roles. We have been engaging fully with PCS union representatives at the sites affected since January, and PCS union representatives will be present at sites for the announcements today, as the House would expect. Our focus today is, of course, on supporting staff through the changes.

Changes to DWP estates are not unusual. Like most public services, we are always looking to meet our customers’ changing needs, reflecting developments in technology and the approaches of successive Governments. We value our staff and are working with them now to support those who will be affected by the changes as we seek to deliver the best possible services to our customers at all times.

Thank you, Mr Speaker, for granting this urgent question. I refer to my entry in the Register of Members’ Financial Interests and my position as chair of the PCS parliamentary group—which, of course, contains more than 100 Members of Parliament.

Will the Minister confirm that the announcement could mean that 3,000 jobs in the Department for Work and Pensions are at risk of redundancy? What measures will he take to ensure that that does not happen? Has there been an equality impact assessment of the proposals? I am thinking particularly about the impact on employees who have disabilities, for example, and may not be able to move to another location that may be miles away.

The Minister is aware that the proposals were first mooted six years ago and that the Department is looking to close offices in areas of high economic deprivation. That seems rather counterintuitive in the context of the so-called levelling-up agenda. Has an economic assessment been made of the closures and their impact on the local economies in the areas where it is proposed to close offices?

On our plans, we have, as I said, been working closely with colleagues and PCS over recent months. Around 12,000 colleagues will be moving from one site to another that is in close proximity—that will involve around 28 sites. Around 1,300 colleagues could be involved at sites where there is no other strategic site nearby. We are looking at what opportunities there are within the DWP and at what other opportunities there might be across other Government Departments. We have seen in other areas how this can work, and we are committed to doing that. Clearly, we will look at any other options that might work for those individuals.

Let me turn to the impact on the local economies. There are not normally too many people involved on each individual site, but, clearly, we have been working very hard to strengthen local economies, with the opening of a large number of new jobcentres. Again, I stress that this is about back-of house roles. This will not impact on jobcentres and the customer-facing interactions within the constituencies.

I think that this would have been much better dealt with in a statement rather than requiring an urgent question. I understand that an office in a neighbouring constituency will be closing, so I urge my hon. Friend to make sure that we notify not just MPs in the constituency where the office is closing, but MPs in neighbouring constituencies, such as mine, where, for example, people will be travelling to work in those places and will be affected.

My hon. Friend makes a very important point. We will, of course, make sure that those communications are made. We will also make sure that the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), has those conversations with MPs. If any MP needs to contact her, they should do so, and she will be willing to talk to them. She will also proactively get out to speak to colleagues. Please be sensitive to the fact that she is currently recovering from covid at home, so I am fulfilling her role today. If any colleagues wish to speak to me after this urgent question, I will gladly meet them.

I call the shadow Minister.

It looks as though the Department for Work and Pensions does not believe in levelling up, does not believe in its own rhetoric on jobs, and does not believe in keeping people in work. We hear that offices will be closed in Stoke, Southend, Peterborough, Chesterfield, Aberdeen, Kirkcaldy, Barrow, Bishop Auckland, Doncaster and Burnley, taking jobs out of these communities. Can the Minister answer these questions for the Members in Stoke, in Wellingborough and in Stockton whose communities and constituents will be concerned about the news today? We have heard that up to 12,000 jobs might be affected, but how many of the workers will be able to find new jobs locally within the Department? Can the Minister guarantee that there will no compulsory redundancies?

I appreciate that staff are being informed only this morning, but this is the correct forum for the Minister to answer these important questions. The PSC Union has said that its members are facing spiralling workloads. Is it not the case that the Department actually needs more staff, not fewer? If these closures are allowed to go ahead, we will face the absurd prospect of making staff redundant in one area, while recruiting new staff in another to do exactly the same job. That will be both costly and inefficient, so can the Minister confirm that that will not be allowed to happen?

If these closures go ahead, local communities will be faced with the loss of hundreds of good jobs potentially. Many of the closures are in areas of economic deprivation that can hardly afford to lose good-quality public sector jobs. Will there be a plan to help those communities attract well-paid jobs back to their local areas? This all comes at a time when families and working people are being hit hard by the cost of living crisis made by this Government. The price of petrol, food and energy is still soaring and people are worried about the future. Has there been any assessment of the impact that these job losses will have on the local economy? I think the Minister indicated in his previous answer that there had not been, but I would be grateful if he could confirm that. Has any consideration been given to the effect that this will have on the high streets of the affected towns? Will we see yet more boarded-up buildings? This is the opposite of levelling up; this is levelling down and it is closing down.

We are absolutely committed to bringing forward more jobs. Jobs are being filled and employment is at a record high. We have vacancies. It is important to highlight that the number of front-of-house roles that we are fulfilling has increased significantly. We have taken forward a rapid estate expansion programme over the past two years. We have created 170 new Jobcentre Plus offices. Many colleagues across the House will be beneficiaries of that along with their constituents. By the end of March, that increase will be up to 194, so there will be 831 Jobcentre Plus offices, which is a huge, huge investment. There will also be an increase in work coaches, which will be a real benefit to our customers. As I have said, the roles that we are talking about are back of house. An equality impact assessment has been made—I do not think that I mentioned that earlier. On the impact on communities, on the whole, this will involve a relatively small number of colleagues in particular communities. We want to make sure that we support those people back into work. For the vast majority, there are jobs close by, and we will help them to transition into those areas. For those who do not have jobs close by, we will give them the support that they need.

I congratulate the hon. Member for Glasgow South West (Chris Stephens) on this urgent question, though I feel this should perhaps have been offered as a statement. What I cannot quite understand is that the Minister is saying that no Jobcentre Plus offices are closing, but the shadow Minister says offices are closing. Which is correct, and does it affect anything in my area? This is all new to me.

To be clear, this relates to back-of-house offices that are often in our local communities. We are trying to update our estates, some of which are no longer fit for purpose, and to bring together colleagues with the right levels of experience to create clusters that will help the provision of back-of-house facilities and services. I want to be clear again—I am sorry if I was not clear earlier—that this does not affect front-of-house Jobcentre Plus. By the end of March we will have invested in an extra 194 of those facilities. We have increased the number of people who work in our Department and, as I said, we want to look after the people affected by these back-of-house changes. Hopefully that is clear to my hon. Friend.

I, too, think it would have been better if the Government had offered this as a statement to the House. May I ask specifically about the Longbenton site in East Newcastle, which the Department shares with the Inland Revenue? What impact will today’s statement have on employment at the site and the future location of the Department’s employees on the site? It is a famous site, and they have been there since the 1950s. The Inland Revenue, which holds the lease, is giving it up and moving elsewhere. It is pretty logical that the Department will follow. Is it moving, and if so, where to? I make the obvious plea to the Minister that we want to keep the jobs in Newcastle upon Tyne.

I understand the question and the tone in which the right hon. Gentleman asks it; I know he has a lot of concern for his own constituency. We are briefing staff right now, so I am not in a position to give him the details now from the Dispatch Box, but I will gladly meet him directly afterwards to talk through his concerns and seek to reassure him. I think that is the most appropriate way of doing it, given where we are right now in the process.