Social Security Recipients: Employment and Earnings

We have comprehensive support in place to help Department for Work and Pensions claimants to secure, stay and succeed in work, including in-work progression, youth hubs and targeted support for people of all ages. In addition, there is a comprehensive package in the Budget to assist each and every one.

I thank the Minister for his response. My constituents in Vauxhall have seen food prices go up by nearly 20%, their household bills go through the roof, and their already high rents going up, in some cases by up to 16.5%. That is while real-terms pay has been falling for 18 months. How does the Minister propose to give workers in Vauxhall, and those on benefits, a real pay rise?

A whole host of things are being done on in-work progression. More importantly, vacancies have fallen for nine successive quarters, employment is up, the claimant count is down, economic inactivity has fallen, and disability employment is up. All those things are helping the hon. Lady’s constituents, and all other constituents up and down the country.

I strongly support the efforts that my hon. Friend is making to boost in-work progression. After all, the original vision behind universal credit was to see more people on benefits earning more and increasing their income over time. Does he agree that one key to the success of this, alongside tailored and relevant training, is better contracts? Research seems to show that a claimant on a permanent contract does significantly better with in-work progression than those on zero-hours or temporary contracts.

My right hon. Friend makes a number of very good points. He is a former Secretary of State in this Department, and has great wisdom on this issue. The main thing that the Department is doing is providing the in-work progression offer, which assists people who are in work and trying to progress to greater hours and full-time work. We are also fully in support of greater training, whether through sector-based work academies or the skills bootcamps, to allow people to have permanent long-term contracts, and enable them to thrive and survive in a better way.

I call the shadow Minister.

The Department’s recently published research on sanctions, including those relating to in-work conditionality, show that sanctions have a negative impact on claimant earnings. How will the Minister take account of those findings in setting future sanctions policy?

We want to encourage claimants to comply with reasonable requirements, which are set and agreed with their work coach in the claimant commitment. That will continue on an ongoing basis, and I see no change to that.