Universal Credit: Support into Work

We are building a new jobs and careers service for all, including those on universal credit, as the cornerstone of our Get Britain Working reforms. This new service will build towards an 80% employment rate, closing the gaps between disabled people and others and between parents and those without caring responsibilities, and dealing with the crisis in youth unemployment. We are also changing universal credit to stop people being left on the scrapheap, as per our “Pathways to Work” Green Paper.

Last week, I held an emergency community meeting for 250 workers in my constituency who are about to lose their jobs following the closure of the electric fibreglass site in Hindley Green. It was heartbreaking. Some families have three generations of workers who have powered the blast furnace and produced materials for our energy, defence and housing sectors. I am bitterly disappointed that after the hard graft of the Government, me, the Mayor of Greater Manchester and the GMB union, it has come to this, and another foreign company is closing a blast furnace in our country. What is the Minister doing to get workers like those back into work, so that they can do what they want to do, which is contribute to a strong industrial future?

Specifically on the business that my hon. Friend mentioned, the Department’s rapid response service has worked with those affected and is keen to do more. I will personally ensure that he is put in touch with my colleagues in the Department so that he can help facilitate that, too.

More broadly, like many industrial communities, my hon. Friend’s constituency deserves more good jobs. Our industrial strategy will help lead the way on that, as will the Chancellor’s investment plans set out in the recent spending review. I know that if my hon. Friend feels that we need to do more for his constituency, he will not hold back in telling us.

My constituent Tracy is living in local authority temporary accommodation after fleeing domestic violence. She is currently trapped on universal credit because the cost of her accommodation is way beyond anything she could earn locally—by a factor of about 10. As a single young person, she faces years before she is likely to be allocated a flat, and she is rightly concerned that future employers would question her years of unemployment and under-employment. She wants to work full time but has been advised not to do so. Does the Minister agree that we need to do something to address the cliff edge?

I thank my hon. Friend for bringing that important case to the House. Universal credit has no fixed hours requirement, but the connection between housing costs and universal credit, as she mentioned, is still a problem. I would be keen to look at the detail of her constituent’s case. Universal credit was introduced with the promise that it would move people off benefits and into work, but that clearly has not happened as we need it to happen, so considerable work is under way to deal with the inadequacies of the mess that the Conservative Government left us.

There are 300 more people on out-of-work benefits in Basildon and Billericay than there were 12 months ago. Local businesses tell me that that is because business rates have gone up under the Labour Government, national insurance tax has gone up under the Labour Government and taxes on investment for the long term have gone up under the Labour Government. Does the Minister agree, or has she got another explanation for the fact that 300 more of my constituents are unemployed than there were 12 months ago?

Our Department is determined to serve businesses well. If the right hon. Member would like to help his local jobcentre do that and get good jobs into the jobcentre so that we can help his constituents, I am sure that I can facilitate that. However, he should be aware that employment is up and inactivity is down. We are moving towards an 80% employment rate, and the Chancellor’s investment plans, as she set out in the spending review, will help us move towards that.

The Government’s proposals to change benefits have a compound consequence for people wanting to stay in work. For example, the Department has said that 95,000 working-age claimants receive carer’s allowance and, under the proposals, would lose the PIP they receive. Does the Minister agree that those proposals will actually make it harder for people to stay in work, rather than easier as they claim?

As the Secretary of State set out some moments ago, we are introducing the biggest improvement to employment support that the country has known. We will ensure that people receive the help they need to get into work and to stay in work.