The nation is today uniting to toast an important milestone in the Prime Minister’s road map to recovery, with the long-awaited full reopening of the hospitality sector—thank God for that, given the rain we are suffering. The British public have stood up to the challenge of the pandemic and, while still being cautious, we need to get out there and spend our dosh. Let’s do our bit to support our communities, businesses and jobs, including more than 1 million workers who were furloughed and whom I hope we will now see back at work. As hospitality booms, I am sure that many more new kickstarters will be out there, able to hit the ground running.
Before the introduction of universal credit, single parents under the age of 25 received a higher rate of benefit payment in recognition of the increased costs of raising a child as a single parent, but that support has sadly not been extended to young single parents who are in receipt of universal credit. Does the Secretary of State agree with me and the assessment of One Parent Families Scotland that the omission amounts to a “young parent penalty”?
No; we took a sensible approach in having a differential rate for universal credit. Of course, if any of the hon. Lady’s constituents would like support to secure extra income via the child’s other parent, the Child Maintenance Service is there to help parents in such situations.
We have heard a lot about youth unemployment this afternoon. The House of Commons Library tells me that it has increased by 10%, with a 110% increase in the number of young people claiming unemployment benefits. Those statistics are concerning, especially for the Clacton constituency, where historically we have struggled with youth unemployment. We must get these young people back to work. The new lifetime skills guarantee will help, but what discussions has the Secretary of State had with the Treasury about the introduction of national insurance contribution relief for employers who hire young people, as we have done for those that hire veterans? If discussions have not taken place, will they soon?
I have regular discussions with a range of Ministers across the Government about how best to get young people into work and thriving. We are already incentivising employers to hire young people through the kickstart scheme, through which we pay wages and the associated national insurance contributions for six months. It is a job creation scheme for the young people who are most at risk of long-term unemployment, building vital experience throughout the pandemic and giving them the confidence and skills needed to thrive in their future workplace.
The kickstart scheme was launched with much fanfare but it has been a bit of a flop, not to mention a headache for many businesses such as METERology in my constituency, which has been given a total runaround by the Secretary of State’s Department. Recent figures suggest that if the UK Government maintain a rate of 400 new employees starting each day, they should hit their target of 250,000 new jobs in 625 days—that is two years—so what more are they going to do to ensure that kickstart can really live up to its hype rather than just be a slogan for the Chancellor’s naff hoodie?
The hon. Gentleman is being ungracious. We are still at step 3 of the road map to recovery. Dare I say that the Scottish Government are putting up a roadblock to recovery by pursuing the whole independence agenda when they should be focused on the economic recovery? If the hon. Gentleman has specific constituency matters to raise, he is welcome to do so. As we go through the steps, we will see even more kickstarters taking full advantage of the generous support, which will help them and employers alike.
As the Pensions Minister knows from when we visited Airedale Springs together last September, climate change is a major concern for many constituents of mine across Keighley and Ilkley. With COP26 now less than six months away, will my hon. Friend update the House on the progress the Government are making to ensure that pensions play their part in tackling climate change so that we can build back greener from the pandemic?
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
We are the first G7 country to legislate for net zero and lead the world in sustainable environmental investment, with the Task Force on Climate-related Financial Disclosures and more, all of which address climate change. It was a pleasure to visit Airedale Springs, which is a great company that is doing good business but with due regard to climate change. That is our approach to UK pensions as we build back greener.
Some 200,000 women who worked hard and paid their taxes all their lives have been underpaid their state pensions. It is an absolute scandal. I welcome the announcement that the DWP is trying to repay the money owed to these women, who have been so badly let down, but the repayments are being made far too slowly. Will the Minister confirm how many repayments were made last month and when the Department will finally speed up the process?
Guy Opperman
It is good to see that the hon. Gentleman survived the deputy leadership reshuffle.
The simple point is that the DWP formally commenced correction activity on 11 January this year, and I published a written ministerial statement on 4 February this year. We are clearing up a mess, the responsibility for much of which goes back to the changes made under the Labour Government in 2008, as the hon. Gentleman will be aware. Where underpayments are identified, the Department will contact the individual to inform them of the changes to their state pension amount and of any arrears payments that they will receive in accordance with the law.
My constituent Martin Burnell is living with motor neurone disease, which is a progressive terminal illness for which there is no effective treatment or cure. Earlier this year, he was told to reapply for his benefits or risk having them stopped. Will my hon. Friend commit to removing the burdensome and unacceptable requirement under the special rules that people with a terminal illness have to reapply for their benefits after three years?
As part of the Green Paper, we will be going further than the special rules for terminal illness evaluation to look at the principles of extending the severe health condition criteria to remove unnecessary assessments and reviews.
Youth unemployment is rising and one route out of this is through apprenticeships. One of the problems with apprenticeships can be apprenticeship pay, often described as apprenticeship poverty, where it costs more to attend work than the young apprentices earn. What is the Minister doing across Departments to address that injustice?
I thank the hon. Lady for pointing out the great opportunities of apprenticeships. The kickstart scheme can lead to such an opportunity, and we will be explaining to young people the opportunities that exist through our youth hubs. On supporting people, we have our flexible support fund for people to get into work and to thrive in work. Our in-work progression report will be reporting soon and we will look at it closely to see whether it covers any of these matters.
As society leaves lockdown restrictions and recovery accelerates, will my right hon. Friend confirm that universal credit is designed not only for people who are unemployed, but to support people into work and to continue to support them while they are in employment?
My hon. Friend is right. The design of universal credit means that people will always be better off working than not working. It is important that people take advantage of extra hours that they may be offered in order to get that benefit, and we will continue to help people get into that type of job.
According to research by the Resolution Foundation, we are facing a U-shaped unemployment crisis, which will hit the youngest and the eldest workers the hardest. For women who are already being forced to work beyond their expected retirement age, this only adds to their financial hardship and many fear that they will never find work again. Do the Government have any plans to help, or will they continue to let down these hard-working women, many of whom started in the labour market when they were just 15 or 16 years old?