Asked by
To ask Her Majesty’s Government what steps they are taking to
provide additional support to the increasing number of people
claiming benefits for unemployment.
The Question was considered in a Virtual Proceeding via video
call.
The Parliamentary Under-Secretary of State, Department for Work
and Pensions () (Con)
Without wishing to denigrate the size of the issue that we are
facing, I make the point that although we have 2 million new
claims to universal credit, this does not equate to the number of
people who are becoming unemployed. Some are claiming because
they are on part-time hours or their pay has decreased.
Government employment Ministers are engaging with all government
departments, businesses, stakeholders and front-line staff, to
hear their views, learn from them, listen to ideas and make sure
that we can provide the best possible support in this difficult
time. I can assure all noble Lords that much is going on across
government and that, in time, we will update the House with our
progress.
(Lab)
My Lords, those 2 million claims are up 856,000 in a month, and
with one-quarter of the workforce on furlough this could get a
lot worse soon. I welcome the changes that the Government have
made but they do not match the scale of the crisis. People are
losing jobs and hours but finding that the standard rate of
universal credit is only £94 a week and the JSA just £74. When
will the Government remove the savings threshold for universal
credit and level up legacy benefits? Crucially, what is their
plan to stop rising unemployment leading to home repossessions
and widespread poverty?
I am unaware of any plans to change the savings threshold at
present, nor indeed to level up legacy benefits. The noble
Baroness is right to keep us focused on the potential size of the
problem that could be coming down the road, and I assure the
House that we are closely monitoring the evolving labour market
and the public health situation to identify and implement the
most effective way to help people to stay in work and stay close
to work.
(Lab)
My Lords, many unemployed workers will not benefit from the
additional financial support that has been announced because of
the benefit cap, despite the grace period. Last week the Minister
failed to answer my noble friend Lady Sherlock’s question as to
why the Government are refusing to lift the cap during the
crisis. Could she therefore answer it now and explain what
purpose the cap serves when the labour market has “collapsed”, to
quote the IFS, and moving home is not a realistic option?
As it stands, the Government are not going to change the benefit
cap, but it will be reviewed at some point. The noble Baroness’s
point about people’s circumstances in terms of loss of income and
not being able to move house is a very fair one; I thank her for
raising it and I will take it back to the department. Tomorrow we
have the all-Peers briefing with the Minister for Welfare
Delivery, and I urge the noble Baroness to raise this point yet
again.
(LD)
What will the Government do to address the needs of under-25s and
care leavers who find themselves on zero income and are currently
treated unfairly under universal credit?
The issue of care leavers is very important. We are providing a
range of support. I am not aware of any changes to our position
on universal credit regarding them, but I will take the matter
back to the department and write to the noble Baroness.
(Con)
My Lords, I am concerned about young people, so I ask my noble
friend what tools are available to help young people looking for
employment to match their skills to current labour market
vacancies.
The Government have announced a National Skills Fund of £2.5
billion so that we can continue to upskill young people.
Jobcentres are continuing to support them through these difficult
times: they have started to re-engage with new and existing
claimants and are reviewing all measures at their disposal. The
DWP is in discussions with local partners, national partners and
the Youth Employment Group set up by the Prince’s Trust. More
importantly, we are working with all departments across Whitehall
to make sure that a range of appropriate support is available to
young people, including those from complex backgrounds, as raised
by the noble Baroness, Lady Janke.
(Non-Afl)
My Lords, what assessment is being made of those currently
unemployed and those facing imminent unemployment, particularly
people with disabilities and autism? Can the Minister assure the
House that her department, particularly post lockdown, will
ensure that adequate financial support is made available to NGOs
specialising in preparing specifically young disabled people for
work and supporting them in it? Will she consider meeting the
All-Party Parliamentary Group for Disability on this issue once
she is available?
I will answer the noble Baroness’s last point first: of course, I
am prepared to meet groups that are trying to help people in this
very difficult position. I am sorry that I am not in a position
to make financial commitments, but I can say that the Prime
Minister and the Chancellor have made it clear that we will do
whatever it takes to help those affected by Covid-19. We are
keeping the situation under continuous review.
(Lab)
My Lords, the level of unemployment that we are confronting is,
frankly, unthinkable. We know that even before this crisis many
individuals and families were literally one pay cheque away from
financial disaster. Noble Lords may not know just how low
benefits are and how impossible they are to live on. We as a
society have to find the resources to ensure that people can keep
a roof over their heads, food on the table and clothes on their
backs. Will the Government therefore convert universal credit
advances into grants and end the five-week wait?
The noble Baroness asks about converting advances into grants. I
am sorry to say that the Government have no plans to do that. On
the five-week period, no one has to wait five weeks for their
money, but the five-week wait is an integral part of the design
of universal credit. The Government are cognisant of the
difficult situations that people find themselves in and are doing
everything they can to support them in this difficult time.
(LD)
My Lords, does the Minister agree that it is essential that
government regulators and creditors work together to ensure that
unemployed people who fall behind on essential bills and credit
commitments are protected from falling into unsustainable debt by
an immediate pause on all forms of collection and enforcement
activity?
I agree with the local Baroness that we must all work together to
support those who are in debt. When it comes to suspending
enforcement, there are very difficult questions and answers. I
would like to go away and write to the noble Baroness after this
Question on the specific point that she raises.
(Lab)
Like other noble Lords, I am concerned about young people. Will
the Minister be more specific about extra support, such as the
transitional funding for training, support for the many disrupted
apprenticeship schemes and perhaps reintroduction of Labour’s
Future Jobs Fund, with guaranteed offers of work for, say, six
months? Surely she will agree that improving their future careers
would help us all through higher productivity, higher standards
and fewer benefits paid.
I completely agree with the noble Lord that we must invest in
young people’s future careers, and I take his point about the
Future Jobs Fund. I can only reiterate what I have said: we are
doing everything that we can to help young people re-enter the
labour market.
(Con)
My Lords, many of the self-employed in the hospitality and
tourism sectors in rural areas such as North Yorkshire have
suffered great losses. What support is being given to the
self-employed in situations where they might have lost the
greater part of the season, which is comparatively short? Are the
Minister and the department braced for the next wave of major
losses when the furlough scheme comes to an end?
With regard to the hospitality sector, I assure the noble
Baroness and the whole House that the Department for Work and
Pensions is looking at what can be done to support people in it.
With regard to a second wave, we will continue to respond in the
way that we have done up to now.
