Jobcentre Plus Office Closures [Mr Charles Walker in the
Chair] Backbench Business 3.00 pm Chris Stephens (Glasgow
South West) (SNP) I beg to move, That this House has
considered Jobcentre Plus office closures. It is a pleasure
to serve under your chairmanship, Mr Walker, and I thank
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Jobcentre Plus Office Closures
[Mr in the Chair]
Backbench Business
3.00 pm
-
(Glasgow South West)
(SNP)
I beg to move,
That this House has considered Jobcentre Plus office
closures.
It is a pleasure to serve under your chairmanship, Mr
Walker, and I thank the Backbench Business Committee for
granting this debate, for which there is cross-party
support. With the exception of an urgent question, this is
the first time that the House has managed to debate this
issue since the announcement of UK-wide office closures.
This is an opportunity for hon. Members to represent their
constituents and to discuss the effects that the office
closures will have on their constituencies. As has been
indicated, there is widespread disquiet about the impact
that the jobcentre closures will have. I will keep my
opening remarks brief to allow hon. Members with closures
in their constituencies the opportunity to inform us all of
the local impacts on their constituents and communities.
The House is rightly exercised—as are many hon. Members—by
the haphazard nature of the closures and the lack of
evidence or rationale to support them, other than that they
will save money in the short term. The lack of an adequate
equality impact assessment is particularly damning. The
closures have been presented by the Government as a
straightforward process of rationalising the estate—that
is, as sensible, considered and thought through in great
detail. I would suggest otherwise, however. Far from this
being a planned process to make the most of the expiry of
contracts to improve services and locate them where they
are needed most, it is a cost-cutting, penny-pinching cuts
programme being done with poor to non-existent
consideration of local conditions.
Instead of consulting appropriately with local partners and
seeking to co-locate with other services to improve the
effectiveness of Jobcentre Plus services, the Government
have embarked upon a Google Maps, back-of-an-envelope
exercise, based on achieving a targeted percentage of
closures—10% overall, but 50% in Glasgow, as I am sure we
will hear. Instead of enabling jobseekers to easily access
other services—such as support with housing, childcare,
debt management and health conditions—to help them to
overcome their barriers to work, the Government have
started with the basic premise of how many offices they can
close and then worked backwards.
-
Mr (Coventry South)
(Lab)
I congratulate the hon. Gentleman on securing the debate.
For the record, we should remember that at least 30,000
people have lost their jobs in the civil service, and this
is part of that. He spoke about the increasing workload.
Citizens advice bureaus have reported that their workloads
have gone up by 88%, in particular because of personal
independence payment claims. Tile Hill jobcentre in my
constituency is being closed, so people will have to walk
miles or get buses. Importantly, a lot of them suffer from
disabilities, so they will be at a disadvantage.
-
The hon. Gentleman is right to say that there have been
30,000 job losses in the civil service. As I will point
out, there will be more in relation to this particular
exercise, as the Government admitted in written answers to
me. He is also correct about the lack of an equality impact
assessment, which I will also mention.
This is a deeply flawed process, tainted by the lack of
consultation with local community planning partners. In
Glasgow, the Department for Work and Pensions is meant to
be a key player in the process, but the closures were
announced without consultation, and that is about as far
from a “One Glasgow” approach as we can get. Nor to the
closures do anything to support a locally agreed priority
of youth employment.
Instead of respecting the terms of the Smith agreement, the
UK Government announced the closures without any advance
consultation with the communities that will be affected and
in so doing bypassed the Scottish Government. Paragraph 58
of the Smith Commission report states:
“As the single face-to-face channel for citizens to access
all benefits delivered by DWP, Jobcentre Plus will remain
reserved. However, the UK and Scottish Government will
identify ways to further link services through methods such
as co-location wherever possible and establish more formal
mechanisms to govern the Jobcentre Plus network in
Scotland.”
Ministers have had to publicly admit, including in a
written answer to me, that they expect at least 750 DWP
staff to lose their jobs and they have refused to rule out
compulsory redundancies. Jobs will disappear through this
process, not only directly but indirectly. That will be
less visible in cities, where jobs in call centres,
delivery companies and coffee shops have replaced the
thousands of admin and clerical posts that have been cut
year on year for longer than I can remember. Every public
sector office closure leads to money being taken out of the
local economy and reduces the opportunities for young
people to build a career, instead of just holding down a
job. The impact on smaller cities and towns should not be
underestimated. For some communities it is the equivalent
of a Ravenscraig or a Linwood. Local traders are affected,
small businesses fold, young people move away if they can
and the local economy declines.
Finally, I want to highlight the link between the push to
digital services and office closures, when it becomes much
more difficult to find a person to talk to in a public
office. I have spoken recently about the unfair telephone
tax, where the most vulnerable are hit with call charges
for contacting the DWP and other government services. The
DWP is a long way from being digital by default. A vicious
circle is emerging, whereby access to advice and support is
being blocked to those who need it most. Every Member here
can testify that our offices are now providing more and
more of that support through our constituency casework.
Widespread jobcentre closures will only increase the
workload on other staff in the DWP, giving them less time
to spend on individuals.
I will now leave it to other hon. Members to voice their
concerns and no doubt vent their frustrations about this
botched and flawed process.
3.06 pm
-
(Lewisham East)
(Lab)
It is a pleasure to follow the hon. Member for Glasgow
South West (Chris Stephens). I congratulate him on securing
the debate and, like him, I thank the Backbench Business
Committee for giving us this opportunity today.
Lewisham jobcentre, which is based in my constituency, is
one of the jobcentres earmarked for closure. In my borough
the unemployment rate is higher than average. We have 3,100
people in receipt of either jobseeker’s allowance or
universal credit, who have a reason to visit the jobcentre
once a fortnight. Another 15,000 people in the borough of
Lewisham receive employment and support allowance or income
support. Although they visit the jobcentre less frequently,
it is estimated that between 100 and 200 of them use the
jobcentre in Rushey Green every week.
At the moment the jobcentre is located in the heart of the
borough of Lewisham, on a busy street between Lewisham and
Catford. It is easily accessible on a number of different
bus routes and from five different overground railway
stations. The Department for Work and Pensions proposes to
close that much needed, busy jobcentre in my constituency
and relocate it to another office that it has in Forest
Hill. That office is small, and although there is a
proposal to expand into some of the space available in that
building, my fear is that we will squeeze staff from the
main jobcentre in Lewisham into unsuitable, smaller
premises in Forest Hill that are less accessible.
I know that the DWP is exploring taking up some space in a
council-owned building called Eros House. I ask the
Minister to do everything he can to ensure that the local
presence of the DWP is able to pursue that option. It is no
good sending people down to Bromley from Lewisham or trying
to run those services from a constrained site in Forest
Hill. It is vital that we can have that easily accessible
location at Eros House in Catford.
Let me take a minute to reflect on how we got here. The
lease arrangements for the DWP have been in place for 30
years and they are coming to an end. For the last six
months an agent has been looking to secure space in a
central Lewisham location, but has been unable to find any.
I do not know whether the process should have started
sooner, so that consideration could have been given to the
new developments in the borough of Lewisham to ensure that
appropriate space could be found. We find ourselves in this
situation partly because of the Government’s changes to
permitted development rights and the planning system in the
last few years. The owner of the building that the
jobcentre is currently located in has decided to convert
that office building to residential under permitted
development rights, and there is a real problem sourcing
office space in central locations, particularly in London.
I am concerned about the impact on people who rely on the
jobcentre to access the help, advice and support that the
hon. Member for Glasgow South West talked about. As
politicians, we spend a lot of time talking about how much
money is paid to individuals in benefit and less time on
exactly what support is provided to help people back into
work. It goes without saying that people need to be able to
get to that help and support easily. I know that the
consultation process and equality impact assessment might
not kick in for some jobcentres in London because of the
issue of being within 20 minutes to the next jobcentre, but
anyone who has sat on a bus on the south circular in south
London trying to get from one place to the next will
realise that 20 minutes in theory is not always 20 minutes
in practice.
I agree entirely with what the hon. Gentleman said about
the move to digital services. Some of the people in my
constituency who use the jobcentre frequently will want to
see somebody face to face. At my own advice surgeries every
fortnight I see between 25 and 40 people, which is
testament to the fact that people want to speak to somebody
directly.
We need to provide tailored support to individuals trying
to get back into work. I was interested to read an article
in the Evening Standard on 31 January by the Secretary of
State for Work and Pensions about the disability
unemployment rate in London, in which he wrote:
“The gap between the number of disabled people in work
compared with the employment rate of non-disabled people in
London is around 28 percentage points—a figure that is
frankly unacceptable in 2017.”
I agree with the Secretary of State about that, but it is a
bit rich for him then to say:
“We’re building a locally-based system that works with
businesses in the area and can offer people intense
support”.
I think that is a bit rich, because in London the DWP is
proposing to close one in three jobcentres: 22 of the
capital’s 73 existing jobcentres. Of the 22 that are
closing, 15 are located in boroughs with a higher than
average claimant count, and, as we know, London has a
higher than average claimant count than the country as a
whole.
I am also concerned that the rate of unemployment among
young people, the disabled and those from black and
minority ethnic communities is higher in London than the
national average. In fact, Office for National Statistics
data from last September showed that BME unemployment in
London stood at 9%. Ministers should review the criteria
they use to determine the closures.
-
(East Ham) (Lab)
I am listening with great interest to the case that my hon.
Friend is making. One of the puzzling things about the
closure programme is that the Government also want to
increase the workload of jobcentres and want some people to
go more frequently. They also want to introduce
conditionality for people who are in work. It is difficult
to see how those additional tasks can be managed at the
same time as shutting down so many jobcentres.
-
I entirely agree with my right hon. Friend, who has huge
expertise and experience in this area. Ministers need to
review the criteria that they use to determine which
closures are subject to full public consultation processes.
We have not yet seen an equality impact assessment of the
closures, which is absolutely critical in a London context,
for the reasons that I have set out.
I urge the Minister to have an eye to the future as opposed
to the past. The Government might pat themselves on the
back over employment rates—we could have a discussion
another time about the nature of the employment that has
been created in recent years—but they need to think about
what might happen over the next couple of years. I detect
some complacency among Ministers about Brexit and its
economic consequences. In my constituency, we are heavily
dependent on jobs in the financial services industry and in
professional services that support industry such as
cleaning, security and employment agencies. Some of my
low-paid constituents work in retail and hospitality.
I am concerned about the prospects for employment should we
see the movement of financial services from London to other
cities in Europe. If we are likely to see an increasing
caseload in jobcentres, allied to the issues that my right
hon. Friend the Member for East Ham (Stephen Timms) has set
out about how individuals’ interaction with jobcentres is
changing, then the Government’s proposal is short-sighted
and could have serious long-term consequences for people’s
ability to get back into employment. I ask the Minister to
review the closures across London and to look in detail at
what provision can be made in central Lewisham for my own
jobcentre.
3.16 pm
-
(Inverclyde)
(SNP)
It is a pleasure to serve under your chairmanship, Mr
Walker. I certainly welcome the opportunity to speak in
today’s debate, not least because it is the only time that
anyone from Inverclyde will be afforded the opportunity to
have a say on the proposed closure of the Port Glasgow
jobcentre.
As the Minister will already be aware, the decision to
close one of my constituency’s two jobcentres was not put
out to consultation because the distance between the
Greenock and Port Glasgow jobcentres is less than three
miles. By my reckoning it is 2.6 miles between the two
buildings as the crow flies, and 2.84 miles if one measures
the actual route that one would need to take along the road
network. For the sake of an additional 250 metres it is
hard to understand why the UK Government would not consult
on this decision so that service users could outline how
the changes affect them.
Or maybe the UK Government simply do not care what service
users think, otherwise the obvious course of action would
have been to undertake a consultation on all closures. By
setting up the consultation criteria in the way that they
have, the UK Government have manufactured the result they
wanted: namely, only 30 job- centres out of the 183
affected by the changes will be subject to consultation. We
all know that the reality of this situation is that the
closure decision has absolutely nothing to do with
providing a Government service. Rather, it is part of the
UK Government’s goal of selling £4.5 billion-worth of
Government land and property by 2020-21.
Over the course of the previous Parliament, the DWP estate
shrunk by 17%, with the Government intent on reducing the
size by a further 20%. I fully appreciate the need for any
Government to spend public funds wisely, but the decision
to slash the number of jobcentres will most definitely have
a negative impact on my constituents. The most obvious
consideration is the additional travel costs that service
users will face in getting to their appointments. This will
barely register as small change for a UK Government
Minister or indeed an MP, but it is an unwanted additional
expense for someone already struggling on a low income.
Constituents will also be burdened with increased travel
times, which in turn puts them at an increased risk of
being sanctioned under the DWP’s draconian and
uncompromising rules. Again, the Minister may say, “It’s
only three miles’ difference. What’s the big deal?”
One issue that may have been identified had a local
consultation taken place is that the only main road between
Greenock and Port Glasgow is liable to flooding at certain
times of the year. It may block traffic once or twice a
year, but one missed appointment is all it takes to be
sanctioned. I want to say that I support the staff of the
Port Glasgow jobcentre, who are fulfilling their support
roles as best they can with the guidance handed to them
from ministerial level. I am aware that they have their own
reservations about the closure and how it will affect their
clients. In the words of Mark Serwotka, the General
Secretary of the Public and Commercial Services Union:
“Jobcentres provide a lifeline for unemployed people and
forcing them to travel further is not only unfair, it
undermines support to get them back to work.”
A report from the Disability Benefits Consortium found that
93% of respondents to a survey of service users thought
that the process for applying for PIP was stressful: 80%
experienced difficulties in completing the claim form,
while 82% felt that the application process had a negative
impact on their health. Will Minister explain how closing
one of my constituency’s two jobcentres will improve that
experience for service users?
We can highlight the lack of consultation and the specific
practical issues surrounding this closure. My fear,
however, is that the issue highlights, once again, a more
general problem—the UK Government’s complete lack of
compassion or genuine concern for vulnerable people.
Instead they pursue spreadsheet politics where the only
thing that matters is the bottom line.
I hope that the debate will not conclude with a meaningless
regurgitation of the Government’s policy. At the very least
the Minister should have the intellectual honesty to come
to the Chamber and admit that the experience of service
users is not a consideration in the closure decision. My
constituents deserve that. I support the calls for closures
to be suspended until a wider consultation is conducted, so
that we can properly assess the impact of the decision on
all our constituents.
3.21 pm
-
(Rutherglen and
Hamilton West) (SNP)
It is an honour to serve under your chairmanship, Mr
Walker. I thank my hon. Friend the Member for Glasgow South
West (Chris Stephens) for securing today’s important debate
through the Backbench Business Committee; I also thank all
those who supported the application, and the Members who
are participating today.
We are back again: this is the third full debate on the
issue in which I have participated. I am rather
disappointed that many of the questions and points raised
in the first two are yet to be addressed by the Department
for Work and Pensions. Parliamentary questions tabled by me
and my colleagues have received poor quality answers. At
least one thing can be said of the Department: it is
consistent in its handling of the matter. Right from the
start, it has been a shambles. As we have heard, after the
news broke in the press that half Glasgow’s jobcentres were
to be axed, it took seven hours for the Department to write
to the affected MPs and inform us. It did not see fit to
inform us or even consult us; nor did it bother to speak
with the devolved Administration in Scotland.
As my hon. Friend the Member for Glasgow South West said,
paragraph 58 of the Smith commission report states that
“the UK and Scottish Government will identify ways to
further link services through methods such as co-location
wherever possible and establish more formal mechanisms to
govern the Jobcentre Plus network in Scotland.”
The report emphasised that the Scottish Government would
have greater responsibility, jointly with the UK
Government, in relation to Jobcentre Plus. Yet that did not
happen. Not only were the Scottish Government kept in the
dark; I have discovered through written parliamentary
questions that the Secretary of State for Scotland was not
even informed of the specific plans for the jobcentre
closures in Glasgow before the information was made public.
Why were neither the devolved Administration at Holyrood
nor the Scotland Office made aware of DWP plans? Was it
arrogance or ignorance that led the DWP to act in such a
cavalier fashion, with such disregard for those alongside
whom it is supposed to be working constructively? I will be
kind and say it was ignorance of the needs of the people of
Scotland.
The Department will have to listen to the views of those
who rely on the services, and meet the needs of the people
of Scotland. It needs to understand that the impact of the
closures is part of an intricate local picture. I wonder
whether the Minister knows, for instance, of the issues
affecting Cambuslang in my constituency, where the Main
Street jobcentre is due to close next year. Is the
Department aware that Royal Bank of Scotland closed its
doors there just months ago, that local traders have
subsequently suffered a reported 30% drop in footfall, or
that the two remaining banks, TSB and Clydesdale, have
announced that they too are to close in the coming months?
Has it considered at all the cumulative impact that those
closures will have along with the closure of a major
resource such as the jobcentre? I am guessing the answer to
all of those questions is no. Perhaps if Ministers had
bothered to consult me, they would be better informed.
The Department will have seriously to make up for its
former ignorance by consulting service users, local
stakeholders—such as the local Church of Scotland minister
Neil Glover, who has spoken out against the jobcentre
closure and described it as a moral issue— and elected
representatives, and by working with the Scottish
Government. Scottish Employability and Training Minister
has written to and met Ministers from the
Department, not only to express grave concerns but to seek
clarity on the issue. He has requested that UK Ministers
meet benefit recipients and others from the communities
that will be affected by the proposals.
It is vital that the UK Government should consult properly
and consider all options, including co-location
opportunities. The Scottish Government are proactively
exploring opportunities to co-locate jobcentre services
with local partners to ease the impact on individuals and
communities. The Department should do likewise, and ensure
that the Scottish Government are fully engaged with the
process.
As I have said, this is the third debate on the subject. It
is frustrating that we have to bring up the same issues
again. I ask the Minister today to take seriously the
points that have been raised—I shall go further, and ask
for a guarantee that the jobcentre in Cambuslang will not
close its doors. If he decides that it should, at the very
least we need a presence in Cambuslang to ensure that
claimants will not have to travel further, with increased
travel costs, all the way to Rutherglen. My constituents
deserve better than the approach taken by the UK Government
so far.
3.27 pm
-
(Sheffield, Heeley)
(Lab)
It is a pleasure to serve under your chairmanship, Mr
Walker. I, too, offer thanks and congratulations to the
hon. Member for Glasgow South West (Chris Stephens).
When I first saw the announcement about the closure of the
Eastern Avenue jobcentre in my constituency I was
relatively agnostic about it. Given that there were to be
no compulsory redundancies and it is a relatively short
distance into town, I did not think it would be that much
of a problem. If the Government could make a case that
centres needed to be closed and services improved in
certain areas, I was prepared to listen to it. However,
having read the further announcement, followed the plan’s
progress and, as the hon. Member for Rutherglen and
Hamilton West (Margaret Ferrier) said, participated in
several debates, I have been horrified that no
justification has been given for the decisions at all. None
of the work—the assessments or gathering and publication of
evidence—that one would expect ahead of a decision of the
kind has been done; no such work informed the pitiful
consultation process that has taken place so far.
It is claimed on the Government website that the decisions
are due to the claimant count reducing and the number of
digital interactions increasing, and the fact that 20% of
the DWP estate is underutilised. To take those one by one,
it may be the case that the claimant count is falling, but
I do not think that anyone could tell jobcentre staff
anywhere in the UK that their workload has reduced in the
past seven years and is likely to continue to reduce—not
least because of the roll-out of universal credit, which is
incredibly complex. As has been mentioned, universal credit
will require more interactions than in the past, including
face-to-face interactions. For the first time, working
people will have to attend interviews at jobcentres; and
from April lone parents will be obliged to see work coaches
once their child reaches three years old, rather than five,
which is the current threshold. It is highly unlikely that
interactions and workload will fall in the coming years.
As to digital interactions, the ward in which Eastern
Avenue jobcentre is to close is one of the most deprived in
the country; 74% of people there are in the 10% most
deprived in the country. Many of them do not use the
internet at all, let alone have the capacity to apply
online—there are very high levels of digital exclusion.
Ironically, the council is currently doing some work on
digital inclusion, commissioned by the DWP, around Eastern
Avenue jobcentre; that work will have to be halted. Again,
there does not seem to have been any recognition or
cognisance of the impact that the cuts will have on that
work.
Whether or not the estate is underutilised at Eastern
Avenue—or indeed at Cavendish Court, where the Government
are expecting claimants to move to—is open to question. I
have been to both jobcentres and there certainly does not
seem to be any underutilised space—Cavendish Court in
particular is bursting at the seams—but we do not know,
because the Government have not published any of the
evidence and do not seem to have done any of the work
behind it. I met the manager for my region, North, East
Yorkshire and the Humber, after the Minister advised me
that that was the best way to proceed. It was not her
fault, but I am afraid the manager had absolutely nothing
to add to what the Government had already published.
As other Members have said, there has clearly been no
equality impact assessment. Nor has there been any
assessment of how many employment and support allowance or
income support claimants are currently using Eastern Avenue
and will therefore now have to go to the city centre. The
Government do not know how many claimants the closure is
going to affect, which is basic information that we would
expect to inform the consultation process. There was no
information on how much the Government would save by
closing Eastern Avenue. That is important, because the
regional manager admitted that money would have to be spent
on the city centre jobcentre to increase its capacity and
accommodate all the extra claimants, so we do not know
whether the closure will actually save the taxpayer a
single penny.
No plans have been put in place and no work has been done
on whether claimants who currently come under Woodhouse
jobcentre, but are looked after by Eastern Avenue if they
need group sessions or screened appointments, can be
accommodated by Cavendish Court, or whether more money will
have to spent to develop the space at Woodhouse to conduct
those sessions. Eastern Avenue currently conducts 17
screened appointments a week. That is a considerable amount
of time to dedicate to claimants, and we have absolutely no
idea whether Cavendish Court can accommodate them.
There was a paltry four-week consultation, although we were
lucky to get even that in Sheffield; as we have heard
today, many jobcentres throughout the country did not. The
Government have treated Parliament and, worse, the public
with disdain by refusing to justify their decision and
publish the evidential basis behind it. How can Ministers
possibly ask us to support the decision if the information
is not available? Now that the consultation has closed,
before the Government publish their final decision I ask
the Minister to publish the DWP’s people and estates
programme and any of the other impact assessments that were
presumably conducted internally. I really hope that the
Government have not taken the approach, which they seem to
have taken in the past, of just pointing to jobcentres on
Google Maps and deciding, seemingly haphazardly and
arbitrarily, which centres to close.
I particularly want to press the Minister on why the
Government have rowed back on their original commitment not
to close jobcentres in particularly deprived areas.
Finally, I urge him not to rely solely on Google Maps for
travel times, as he recently admitted to doing in answer to
a written question from me. [Interruption.] He is looking
confused, but he confirmed to me that his Department used
Google Maps for travel times.
-
The Minister for Employment (Damian Hinds)
As one of the methods.
-
Yes. The Department’s introduction to the announcement
confidently asserted that the travel time between Eastern
Avenue and the city centre would be 24 minutes. That
analysis was based on Google Maps. A claimant who currently
goes to Eastern Avenue did a travel journal for me of his
journeys from Eastern Avenue to Cavendish Court on eight
separate occasions, and not one of them took 24 minutes.
The average journey time between the two jobcentres is 44
minutes.
-
The hon. Lady is giving some fascinating facts. Does she
know that the exercise with Google Maps in Glasgow used
information based on bus services that are no longer
operational?
-
That is another interesting point that shows the problems
with using Google Maps without consulting the local
authority or the local passenger transport executive, as
any rational person would expect the Government to do. On
average, the journey between Eastern Avenue and the city
centre takes 44 minutes. The maximum time it took Antony
was 63 minutes.
There is clear consensus today that the evidence base and
the impact assessments need to be published before the
final decision is made. I would really like the Minister to
reflect today on the long-term impact of removing a
respected community service from incredibly deprived
areas—Arbourthorne and Manor Top are some of the most
deprived in the country—that have relied on them for so
long.
-
Mr (in the
Chair)
The three Front-Bench speakers need about eight minutes
each, and I want to leave two minutes for the mover of the
motion to wind up.
3.35 pm
-
(Coatbridge, Chryston
and Bellshill) (SNP)
It is a pleasure to serve under your chairmanship, Mr
Walker. I thank my hon. Friend the Member for Glasgow South
West (Chris Stephens) for securing the debate, and all
right hon. and hon. Members who contributed.
It is vital that we stand up for workers’ rights in these
times of austerity. It is critical that the Government
engage with unions in a meaningful way and include them in
the determination and resolution of any appropriate issue
such as office closures. My hon. Friends have covered the
lack of interface with the Scottish Government; their
points were well made and I will not repeat them. My
constituency of Coatbridge, Chryston and Bellshill is
affected by the cuts to jobcentre locations, as are the
constituencies of many other Members present. I commend
them for their attendance; appropriately, given the
debate’s cross-party nature, we have adopted a collective
response.
Coatbridge is a local DWP back office that employs about
250 people and is facing closure as a result of these cuts.
I have been in contact with union representatives about the
closure since the announcement was made and I recently
attended the annual general meeting of the local branch of
the Public and Commercial Services Union to discuss the
impact of the closure on its members and on the local
community. I was particularly concerned to be informed by
the union that the DWP’s announcement was made without any
consultation with the workers or the union at all. The DWP
did not inform me of the lack of consultation when I was
contacted about the closure. Although the DWP has stated
that the closure will not involve any job losses, it has
indicated that the jobs in question will be moved to
alternate locations in central Glasgow or Motherwell, both
of which are approximately half an hour’s drive away—and
that is if we assume no traffic delays.
Coatbridge is a community filled with young families. Many
people base decisions about who they work for on the
location of their potential workplace: they choose to work
in locations that allow them to drop their children at
school in the morning or be near an elderly or poorly
relative. There is also the issue of additional travel
costs for the predominantly local staff to and from Glasgow
and Motherwell—again, colleagues have covered that well, so
I will not repeat the points they made. For many workers
affected by the cut, the loss of that essential proximity
to home, the additional travel and the associated costs may
mean that they need to seek alternative employment. I can
hardly see how a Government can describe themselves as
pro-family when they put so many in such a precarious
position.
The union members I spoke to were concerned about the
dilution and inevitable reduction in the quality of
services provided to service users that the cuts will
cause, as was well articulated by my hon. Friend the Member
for Inverclyde (Ronnie Cowan). The closure will affect not
only current employees and their families but local
businesses, as my hon. Friend the Member for Rutherglen and
Hamilton West (Margaret Ferrier) articulated well. The DWP
facility that faces closure is just off the main street in
Coatbridge and, like many town centres throughout the
country, it suffers from massive reductions in footfall,
and subsequently business, for high street retailers and
service providers. It seemed as if things could not get any
worse for our main street retailers, but the facility’s
relocation out of Coatbridge town centre will be yet
another blow for the businesses in and around it and for
the other businesses, such as childcare businesses,
restaurants and takeaways, that support the local workforce
in my constituency and the surrounding constituencies.
Unfortunately, the announced closure is only one of a
decades-long series of ideologically driven cuts to
services in Coatbridge, Chryston and Bellshill from a
London-centric UK Government. It gives the lie to the claim
we hear from London about caring conservatism. Nothing
could be further from the truth. I urge the Minister to
focus on the decentralisation of services if he and his
Government are truly serious about a more inclusive Britain
for all. Like my colleagues, I ask the Minister to
reconsider, to halt the closures and to review them after
proper assessments and a proper consultation process have
been carried out.
3.39 pm
-
(Barrow and Furness)
(Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr
Walker. I congratulate the hon. Member for Glasgow South
West (Chris Stephens) and thank him for securing this
debate. I want to speak against the impending closure of
Phoenix House in Barrow, which is not a jobcentre but a
back-office benefits processing centre. As I will outline,
the 80 people in that centre perform an important service
to people throughout the United Kingdom. As I said to the
Minister, who was good enough to make himself available in
the days immediately after the shock announcement, closing
the centre could have damaging consequences for the people
whom we as a country, the state and his Department are
supposed to be serving.
In contrast with some of the tone of the debate so far, I
am not questioning the Minister’s integrity. Everything
that I saw of him in the time before he became a Minister
suggests that he is genuinely committed to the field, in
which he spent a considerable amount of time before being
promoted to a ministerial role. However, he is presiding
over a process that is simply not acceptable, for many
reasons that have been outlined in this debate. This is an
important opportunity for him to listen and make amends.
I imagine that the Minister will recall our brief meeting.
Having worked as an adviser in the Department where he now
serves, I have some experience of how it can sometimes
drive forward with a programme while treating ministerial
direction—which, frankly, it sometimes seems to take as
advice—as wholly unwelcome, although I do not expect him to
confirm that in his remarks. I have spoken with his
Department. Mentioning the conduct of civil servants is not
something I do lightly, but I was genuinely taken aback
when I went to see the Minister and the civil servant who
was there to support him did not even know what benefit was
processed in Barrow. That is lacking in and of itself when
we are talking about 80 people in my constituency who are
losing their jobs. As the Minister for Employment, he will
have some understanding that when skilled office jobs are
eliminated in a geographically remote constituency such as
Barrow, they have little prospect of being replaced by
something else, and people cannot realistically travel to
another place two or more hours away. I expected that civil
servant to know what those people did, at least.
Due to the nature of the benefit, closing Phoenix House and
taking the facilities somewhere else in the country,
inevitably employing new people, will do damage to the
service provided. The centre processes industrial injuries
disablement benefit. The team say proudly that they have
more than 100 years’ experience between them of processing
that benefit. Due to that build-up of expertise, the Barrow
team has taken part in a process that has reduced the
processing time for that benefit from 175 days to 33 days.
That is an achievement and welcome in itself, but we must
also take into account who receives the benefit. It goes to
people who have developed terrible conditions. Many of
them, such as those suffering from the likes of asbestosis,
are terminally ill due to negligence in past decades. That
is why they have been given compensation in the form of the
benefit. The whole point of focusing on driving down the
time that it takes for them to get it is that it makes the
difference between them receiving it while they are still
alive and receiving it after they have died.
When I made the case to the Minister, he told me that he
and the Government were not in the business of reversing
that progress and going back to the days when,
unfortunately, many people died before they were given the
benefit, which is itself inadequate compensation for having
their lives taken away but is nevertheless important both
financially and as recognition that they were wronged in
their employment. I put it to him again that reversing
progress is exactly what will happen if that function is
taken away from Phoenix House and put elsewhere in the
country.
The Minister will know by now, I hope, that it takes 12 to
18 months to train people in even a basic level of
competence, and the people at Phoenix House have much more
than that due to the experience that they have built up. I
am coming to the end of my time; I am pleased that we are
giving him ample time to address all the diverse issues. I
hope that he can address the plight of the staff members at
Phoenix House, who are campaigning hard. They have set up a
petition, and I supported their march in Barrow on
Saturday. They are fighting for their jobs, but they are
also fighting for the service that they give to the rest of
the nation, and I hope that he takes it seriously in his
response.
3.47 pm
-
Stewart Malcolm McDonald (Glasgow South) (SNP)
It is always a pleasure to see you in the Chair, Mr Walker.
I congratulate and thank my constituency neighbour and hon.
Friend the Member for Glasgow South West (Chris Stephens)
for securing this debate. After many—possibly more than
100—written questions, urgent questions, debates in
Westminster Hall and points of order that are not really
points of order, I salute his indefatigability in pursuing
this issue.
I also thank the PCS Scotland union for the excellent job
that it has done assisting Members of Parliament throughout
the country, and particularly in Glasgow, where we heard
the rather unwelcome news just before Christmas that the
Government intend to reduce the jobcentre estate by half,
from 16 jobcentres to eight, two of which—the Castlemilk
and Langside jobcentres—are in my constituency.
I hate to say it, but having spoken in the two previous
debates, met the Minister along with colleagues and taken
part in the urgent questions, there is not much new for me
to say. However, as you will know, Mr Walker, the Speaker
reminds us that repetition is not a vice in this House, so
I will repeat some of it. The Castlemilk jobcentre serves a
community that was once more populous than the city of
Perth and has some of the most deprived neighbourhoods
anywhere in the United Kingdom. It sits in the Braes
shopping centre in the centre of Castlemilk, and it is, I
think, the only serious anchor tenant there. If the
jobcentre goes, it will create big problems.
However, that should not be the only reason for it to stay.
The other reason is that closure will have an impact on
those who use the jobcentre. I hate to say it, but to
return to the point made earlier by the hon. Member for
Sheffield, Heeley (Louise Haigh), this plan has been
designed by Google Maps. Like the hon. Member for Barrow
and Furness (John Woodcock), I do not want to mention civil
servants on the public record, but when we met senior civil
servants from the Department for Work and Pensions in
Glasgow before Christmas, I jokingly asked if they had
worked it out using Google Maps, expecting the answer to
be, “Don’t be so ridiculous, Mr McDonald; we would never do
such a thing.” However, the response I got was, “Yes, we’ve
used Google Maps,” which has bus services that no longer
exist and does not take into account travel times as far as
traffic goes.
Langside jobcentre serves the second most densely populated
council ward anywhere in Scotland, and it serves a
population of people who live in private lets and who often
have quite precarious working conditions, in temporary
jobs, on zero-hours contracts and with relatively low pay,
and whose employment is in many cases anything but secure.
I would ask the Minister why, despite several genuine and
friendly invitations, he has not taken any time at all to
visit any of the jobcentres in Glasgow that he wishes to
close. I do not know what he thinks will happen to him if
he comes, but I can assure him that either I or one of my
hon. Friends from the city of Glasgow will look after him.
He will be okay. Even at this late stage, I implore him to
visit a jobcentre in Glasgow to hear what the staff and the
users have to say.
-
Will any of the hon. Gentleman’s constituents face what a
number of my constituents in East Ham in London will face
once our local jobcentre closes, which is a doubling of
their public transport fares in order to get to the
replacement jobcentre?
-
Stewart Malcolm McDonald
Absolutely. With the Castlemilk jobcentre, all the people
who use it will effectively have to use what the Department
calls the Newlands jobcentre—it is called that, but it is
actually in Pollokshaws, which is even further away than
Newlands. All the people from Castlemilk who have to use
that jobcentre will have an 8-mile round trip to get there
and back. At the minute, no matter where someone is in
Castlemilk, they can walk to the jobcentre in, at the most,
maybe seven minutes, and that is for a perfectly
able-bodied person.
I do not see the need to put those kinds of barriers in
people’s way for trying to access a service that has been
in their community for a long, long time. The Department
seems to think that people can get from Castlemilk to the
jobcentre in Pollokshaws in under 30 minutes—I think that
is what it has said. I say, “Well, good luck with that,”
because, having gone around the constituency countless
times over the years I have lived in Glasgow, which is my
entire adult life, I certainly have never been able to make
that journey in just over 20 minutes.
However, I will come to my final point, which is on the
consultation. We had to drag the Government to publish
their consultation on the Glasgow jobcentres online; they
had no intention of doing that. [Interruption.] The
Minister can shake his head or gesticulate in any way he
wants, but they had no intention of putting that on the
Department for Work and Pensions website. It was welcome
that they did, and it was also welcome that they extended
the consultation for around two weeks. I am not sure what
the Minister is so flabbergasted by, but I look forward to
hearing about it none the less.
It was quite remiss of the Government not to take the time
to write to every single person who would have been
affected by these closures. When someone goes to the
jobcentre to register, there is not a bit of information
that the staff do not get from them, so the Government
could have made it easy for those for whom this closure
would be a big issue to take part in the consultation.
Rather than just having fliers and putting up a couple of
posters in jobcentres, the Government could have sent a
consultation response form directly to their houses, or by
email, rather than relying on Members of Parliament or
members of the public—I had several people willing to do
this, even though they were not exactly happy about
it—standing outside jobcentres and informing people that
they were going to close, which was the first time they had
heard about it. In my view, it was quite wrong of Ministers
not to inform MPs about this matter and for us to have to
read about it in the press, but that is nothing in
comparison with members of the public who use the
jobcentres finding out from a stranger in the street
campaigning outside a jobcentre.
The Government have handled the consultation poorly;
however, I would like to hear what the responses to the
consultation contain. I would also like to hear how many
responses there have been and to know when the announcement
on closures will be made. My understanding is that we can
expect an announcement towards the end of March—that is,
around about the time that article 50 is in full-blown
scale, so it will perhaps be a good time to bury bad news.
Nevertheless, I ask the Minister this quite sincerely: can
he commit to making an oral statement on the Floor of the
House and to not sneaking this news out in a written
statement, a press release, or in some fashion that avoids
proper parliamentary scrutiny? If he gives me nothing else
today—U-turns are quite fashionable this week, but I am not
sure he will do another—I ask him to commit at the very
least to making a full oral statement on the Floor of the
House, so that Members can scrutinise the decision further.
-
Mr (in the
Chair)
I am going to call the Minister no later than 4.18 pm. If
the Opposition Front Benchers want me to call him earlier
than that—he has got lots of notes—that is entirely up to
them.
3.55 pm
-
(West
Dunbartonshire) (SNP)
It is good to see you in the Chair, Mr Walker. I
congratulate my hon. Friend the Member for Glasgow South
West (Chris Stephens) on securing this critical debate.
As the Member of Parliament for West Dunbartonshire, I
would like to put on the record the fact that the
Alexandria jobcentre in the Vale of Leven in my
constituency has been proposed for closure. Colleagues from
all parties have made strong cases for the reversal of the
UK Government’s proposals to close a number of jobcentres
in their respective constituencies. I hope the Minister
will take their points on board. I feel for the Minister,
because I am led to believe that there will be a closure in
his own constituency, which must be going down like a lead
balloon.
Although I agree with the arguments put forward by
colleagues, there are special circumstances that set the
Alexandria jobcentre apart. The catchment area shares
similar characteristics with others earmarked for closure.
There are high levels of deprivation and unemployment,
which, as in other urban areas, must be taken into
consideration. The Alexandria jobcentre differs, in that it
serves a population that is not only urban but suburban, in
the true sense, and a rural community, which results in a
set of unique challenges for those living in those
communities, especially given that the area includes the
Loch Lomond and the Trossachs national park boundary.
An argument put forward by the DWP to support its proposal
is that it is now easier to access jobcentre services,
whether over the phone, online or in person. Let me take
those in order. For citizens living in rural areas, the
practical challenges are many. People whose line
connections depend on weather conditions, which in my
constituency are temperamental at best, do not have easy
access to services by phone, as the Department argues.
Given BT Openreach’s dubious record in elements of the
rural sections of my constituency, there are difficulties
in online connectivity.
-
Is my hon. Friend aware that, although the Department
publicly suggests that 0845 numbers are no longer in
operation, claimants can phone an 0845 number, which costs
55p a minute?
-
It is an outrage. My hon. Friend highlights something that
makes a mockery of the suggestion that this will save
money.
Those who do not have an internet connection because their
area has not yet had substantial investment in broadband
connectivity—in my area we need investment in the copper
wiring, never mind new fibre—cannot access the services
online as easily as the Department presumes. Many urban,
suburban and rural citizens simply cannot afford to sign up
to an internet provider. That also holds true in relation
to phone and mobile operators.
Reducing the number of jobcentres and moving those services
to a central location—in my constituency, down to
Dumbarton—will make it more difficult for citizens to
access those so-called local services in person. It will
result in longer journeys at a greater cost to those who
are already struggling to pay the bills, and it may
exacerbate health conditions. In certain parts of my
consistency in the winter, it is not an easy journey,
especially for people coming from the national park end. To
suggest that those individuals can claim back any cost
incurred through the longer journey misses the bigger
point. They are already struggling financially, and the
lack of awareness from the Government and specifically the
Department is quite unnerving.
To ensure the best service for citizens, all interested
parties must be involved. I welcome West Dunbartonshire
Council’s proactive cross-party approach to tackling these
issues in the best way for our constituents. I urge the
Minister in the strongest possible terms to engage
constructively with the local authority to retain those
local services. In the light of that, I ask him to draw its
attention to the policy, because there are different policy
frameworks across the UK. For Scotland, I urge the
Department to read the report by the Christie commission on
the future delivery of public services, which shows how
that delivery might be achieved with community planning
partners. The clue is in the name: it is about partners and
partnership.
Unfortunately, my hon. Friend the Member for Paisley and
Renfrewshire South (Mhairi Black) cannot be here today for
personal reasons, and she asked me to raise a few points on
her behalf. The Department announced that it was relocating
300 jobs out of her constituency into the city of Glasgow,
with no consideration of the impact on the local economy.
In addition, no consideration has been given to how
existing staff will be affected and how the travel time
will impact on their lives. That could be a major factor
that may force some existing staff to consider taking
redundancy, as any move may be impractical. Why is the DWP
abandoning a purpose-built office to take on a new lease?
To sum up, I hope that the Minister and his civil servants
will take on board the valid concerns expressed by all
Members and be proactive in responding, in particular by
recognising the opportunities for co-location and
partnership working for local services in local
communities. I am sure I speak on behalf of all Members in
praising the staff and those from the PCS union. I have
been meeting them to ensure that this is kept to the fore
as a major issue for us to debate.
4.01 pm
-
(Wirral West)
(Lab)
It is a pleasure to serve under your chairmanship, Mr
Walker. I congratulate the hon. Member for Glasgow South
West (Chris Stephens) on securing this debate. He spoke
passionately about the haphazard nature of the closures,
and described it as a Google Maps exercise done on the back
of an envelope. He also spoke about the loss of jobs and
the impact on the local economy. It has been a very
important debate, even though we have already had several
debates on this issue.
We have had some excellent contributions, particularly from
my hon. Friend the Member for Lewisham East (Heidi
Alexander), who made a measured speech about the impact on
her constituents and the Government’s complacency on the
economic consequences of Brexit for the financial sector,
on which many of her constituents rely. The hon. Member for
Inverclyde (Ronnie Cowan) spoke about practical problems,
such as flood risk and the impact that might have on people
being sanctioned. The hon. Member for Rutherglen and
Hamilton West (Margaret Ferrier) talked about the
cumulative impact in her constituency of other closures,
such as those of local banks.
My hon. Friend the Member for Sheffield, Heeley (Louise
Haigh) represents one of the most deprived areas of the
country. She asked the Minister why we should be asked to
support the measure, given that we have not been given the
evidence base or any impact assessment. My hon. Friend the
Member for Barrow and Furness (John Woodcock) made some
very good points about the remote geographical location of
his constituency and the loss of expertise for Jobcentre
Plus. My right hon. Friend the Member for East Ham (Stephen
Timms) spoke about the doubling of public transport fares
for people in his constituency. There were also
contributions by my hon. Friend the Member for Coventry
South (Mr Cunningham) and the hon. Member for Coatbridge,
Chryston and Bellshill (Philip Boswell).
Many questions still need to be answered. The Government
appear to believe that the current levels of employment and
the introduction of universal credit mean that more than
one in 10 Jobcentre Plus offices can be closed, regardless
of the impact on the local community. According to House of
Commons Library analysis, 33% of jobcentres in London, 18%
of jobcentres in Scotland and 16% of jobcentres in the
north-west will be lost at a time when communities are
already under real pressure due to seven years of Tory
austerity.
Jobcentre Plus faces considerable challenges in the
immediate future. From this April, it will play a much
greater role in directly providing employment support when
new referrals to the Work programme cease. From the end of
this year, the Work programme and Work Choice will be
replaced by the Work and Health programme. Most people
claiming JSA are currently asked to take part in the Work
programme, while Work Choice provides specialist employment
support for disabled people.
-
Does the shadow Minister agree that it is about not only
the expertise of jobcentre staff in carrying out their
role, but the rapport built up between them and the
clients? That is even more important when dealing with
those with mental health issues, where continuity is
crucial.
-
I thank the hon. Lady for that; she makes a good point.
Eligibility for the Work and Health programme will be much
more restricted than the programmes it replaces. It will be
open to certain disabled people and to people who have been
unemployed for two years or more. In light of that, the
Employment Related Services Association estimates that as
many as 45,000 fewer disabled people will have access to
specialist employment support in every remaining year of
this Parliament. Employment support for almost everyone
else will be provided by Jobcentre Plus, including many
disabled people with specialist needs.
How does the programme of jobcentre closures square with
the Government’s aim of meeting their manifesto commitment
of halving the disability employment gap? The longer and
more complicated journeys to jobcentres as a result of the
closures will particularly affect disabled people and
people with caring responsibilities. Why has the DWP not
yet published an equality impact assessment to analyse the
effect of the closures on claimants and the local
community?
More difficult journeys also increase the risk of claimants
being sanctioned by staff for being late for or missing
appointments. Will DWP issue guidance that, when
considering sanctions, jobcentres should take account of
increased journey times due to closures? There is already a
backlog of sanctions, which in some cases is leading to
money being withdrawn from claimants months after
non-compliance, even though claimants may in the meantime
have done what they were asked to do.
The roll-out of universal credit is continuing and will
also present additional challenges for Jobcentre Plus.
Jobcentres are having to do a huge range of things: provide
careers advice to schools; deliver the new youth obligation
under universal credit, which involves much more intensive
support for 18 to 21-year-olds for the first six months of
their claim; assess the viability of businesses for
self-employed people claiming universal credit; and extend
services to the partners of jobseekers, because universal
credit applies to a household, so for the first time a
spouse or partner of a claimant can be asked to attend a
jobcentre to discuss work, even if they themselves have not
made a claim or are in work. In future, jobcentres will
also have to operate in-work conditionality under universal
credit. In other words, people on low incomes who are
working will be required to increase their earnings or risk
being sanctioned—another first.
There is growing evidence that the supposed six-week wait
for payment at the start of a universal credit claim is
much longer in some areas, leading to people being in
arrears with their rent and building up debts. Will the
Minister assure us that the DWP has fully taken into
account the need to tackle existing delays in processing
claims in its plans for closures? Furthermore, universal
credit is being rolled out at a rate of five jobcentres per
month, rising to 30 jobcentres per month from July and 50
jobcentres after September, but by the end of last year the
Department was ready to announce a dramatic programme of
closures at the very time it was going to speed up the
roll-out of universal credit.
Universal credit is, of course, designed for claims to be
made and managed online. The Minister, in his statement of
26 January, highlighted that
“99.6% of applicants for Universal Credit full service
submitted their claim online.”
As has been said by many Members, however, not everyone is
confident of using IT, and many people rely on access to a
computer in local libraries to do so—and libraries, too,
are under threat from the cuts to local authority funding,
with which we are all so familiar.
Just because a claim is made online does not mean that it
can then be completely managed online. When there is a
problem, a claimant may have little choice but to ring the
DWP helpline or to go to a jobcentre to resolve it. We know
from parliamentary questions last year that many claimants
are spending long periods on the phone to DWP’s universal
credit helpline.
The DWP is not alone in closing offices. HMRC is also
planning to close all its 170 offices nationwide by 2020,
replacing them with only 13 regional centres. Employment
support works best when people have a good relationship
with their adviser or work coach and it is tailored to a
claimant’s specific needs. I am concerned that the system
is already buckling under increasing pressure and that, in
closing so many jobcentres at the same time as speeding up
the roll-out of universal credit, the Government are simply
asking the impossible of work coaches, who are at the heart
of our system of employment support.
It is vital that we have a reliable social security system
that is there for any one of us should we fall on hard
times. Those closures look set to erode the infrastructure
in place to deliver that system without the Government’s
even having made an equality impact assessment. I urge the
Government to think again.
-
Mr (in the
Chair)
Before I call the Minister, I remind him that we would like
Mr Stephens to have two minutes at the end. Would the
Minister mind sitting down by 4.28 pm?
4.08 pm
-
The Minister for Employment (Damian Hinds)
As always, it is a great pleasure to see you chairing the
debate, Mr Walker. I congratulate the hon. Member for
Glasgow South West (Chris Stephens) on securing it and
giving us the chance to debate these matters again. I think
at one point he suggested that this was the first chance
that we had had to debate—
-
For clarity, this is the first time we have had a chance to
debate the issue since the UK-wide announcement, not just
the Glasgow announcement.
-
I am pleased with that clarification, although we had the
urgent question on 30 January, after the UK-wide
announcement on 26 January, and the Westminster Hall debate
in this Chamber on 20 December, as well as a number of oral
and written questions—the hon. Gentleman’s colleague, the
hon. Member for Glasgow South (Stewart Malcolm McDonald),
suggested more than 100. I have not been counting, but I
confirm that it is a substantial number. Of course, we have
had the opportunity to meet one to one and with groups as
well. I am grateful for this further opportunity to debate
these important matters.
On 31 March next year, the DWP’s 20-year private finance
initiative contract, which covers the majority of the
Department’s property portfolio of more than 900 sites,
will expire. The Department for Work and Pensions currently
occupies about 1.5 million square metres of office space,
and these days at least 20% of it is under-occupied. The
falling claimant count and the increased use of our online
services in recent years means that 20% of the taxpayers’
money that the Department is spending on rent is going
towards space that is not being used. By paying only for
the space we do need and the services required to operate
from that, we anticipate saving about £180 million a year
for the next 10 years.
The expiry of that contract at the end of March 2018
presents both a unique opportunity and a specific
requirement to review the estate. In response to changing
demands facing the Department, we have redesigned the
estate in a way that delivers better value for the
taxpayer. I need to be clear that this is not about
reducing services; it is about taking the opportunity to
stop spending taxpayers’ money on unused space so that we
can target money effectively on supporting those in need.
We have carefully considered the challenges that we
anticipate the Department is likely to face in the future,
but the jobs landscape and the way people work has changed
significantly in the past 20 years.
As has been mentioned, some 90% of universal credit claims
are made online and with more of our services moving
online, in common with other organisations, we want to
continue making the most of the opportunities that new
technologies present to help best meet our claimants’
needs.
-
On the roll-out of universal credit, in Sheffield it has
been rolled out only to lone individuals with no children.
As it expands to cover other types of benefits, the rate
will decrease dramatically and, as has been mentioned, the
number of interactions is only going in one direction. It
is therefore misleading to use that statistic.
-
I am certainly not trying to mislead and I do not think I
am misleading. I reassure the hon. Lady that the Department
for Work and Pensions, in common with others, does staff
and resource planning that takes into account all the
different demands that will be made on our services, and
that includes the fact that, as a number of Members have
mentioned, in universal credit there is the opportunity to
work more closely with people, with the workload that that
will involve, to encourage more people into work. Of
course, that is all part of the plans and not something
additional that has not been considered.
The hon. Lady mentioned work with, for example, lone mums
on income support. There is also work with partners, as the
hon. Member for Wirral West (Margaret Greenwood) mentioned,
and then work with people in work, the self-employed and so
on. I should add that some of those offers are in
development, and we will adjust and evolve the operation of
the offer to optimise it as time goes on. However, of
course the assumptions on the amount of workload involved
are reflected in the plans.
It is right that we reflect not only the impact of the
digital revolution in meeting our claimants’ needs but the
realities of a more flexible labour market and significant
falls in unemployment since 2010. The employment rate is at
a new record high: there are more people in work than ever
before. We had the statistics on the unemployment rate come
out just yesterday: they have hit a 12-year low. In fact,
the last time the unemployment rate was lower than what was
announced yesterday was in the mid-1970s. Of course, we
always have to consider that things in the world will
change. That is also considered in the planning assumptions
made by the Department.
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In terms of employment rates, does the Minister not concede
that one result of that is that those who are not in work
at the moment have specific circumstances and challenges to
overcome? On that basis, that should result in more
face-to-face, rather than online, contact.
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The hon. Gentleman makes a characteristically important and
insightful point. Of course, what he says is true. There is
a distinction to be made between different claimants and
clients in different circumstances, in receipt of different
types or benefits—for example, people who are on employment
and support allowance are not required to attend jobcentres
fortnightly or weekly in the same way as people who are in
receipt of jobseeker’s allowance.
We want to maximise the opportunities available to all
those groups of people, of course. Some of that is about
stuff that happens in jobcentres; some of it is not. There
are some things that could be done more effectively not in
jobcentres than in them, particularly with some people who
are further away from the jobs market, as I am sure the
hon. Gentleman will recognise.
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The claimant count in my constituency went up by 50 in the
last month. Although that may be a monthly blip, I am
concerned about the overall strength of the London economy
moving forward. The Minister talked about the space being
under-occupied by a fifth, yet in London he is proposing to
close a third of jobcentres. Will he explain that for me?
-
I can. I was going to come on to Lewisham and some of the
points that the hon. Lady raised on London, but I will
address it now. Overall, the estate is 20% under-utilised,
but that does not mean to say that in every individual
jobcentre there is exactly 20% of unused space. In terms of
the utilisation rates, there is a wide range in individual
jobcentres and between cities, when we take the total
estate in that city into account. There is no complacency
at all about the strength of the labour market in London,
Sheffield or Glasgow, or in any other place. In all of the
locations that we operate from throughout the United
Kingdom, jobcentre staff are focused night and day on
helping people to get into work.
In the case of Lewisham, the landlord did not want to
re-lease and we believe that 2.1 miles to the Forest Hill
location is a reasonable distance to ask people to travel
additionally. As the hon. Lady will realise, the London
property market is an expensive place to have real estate
and there are particular challenges with finding premises
in London. We think that the estate we have across London
is reasonable in terms of asking people to get around.
-
The DWP is exploring the possibility of taking on space in
Eros House, which is an accessible, central location. If
that costs a little bit more, would the Minister commit to
exploring that option, given the additional benefits it can
bring?
-
The hon. Lady will understand that I am not going to stand
up in Westminster Hall—nor should I—and talk about detailed
proposals and plans for sites that she or others may put
forward, but we are always open to talking about the range
of opportunities. I am happy to follow up with her on the
specific points she raises.
In every case where change is proposed, we have sought to
minimise disruption and listen carefully to those who might
be affected, but as a result of modernisation, the
Department’s services are demanding fewer people to
deliver. It is only right that we consider our options
going forward. Delivering a modern and dynamic service to
claimants requires modern and dynamic working environments,
and that is what we are striving towards as part of our
vision for DWP in 2020. Our aim is to maintain and improve
the services offered across the country.
We recognise, of course, how important the DWP’s staff are
to achieving that aim. They are our most valuable resource.
It is as a result of their immense effort that the
Department is able to provide such a high level of service
to our customers. My colleagues and I have been clear that
the proposals for the DWP’s redesigned estate do not mean a
reduction in the number of frontline staff. In fact, we are
recruiting and we expect to have more work coaches in every
nation and region of the United Kingdom at the end of this
process in March 2018 than we do today.
For staff across the DWP network who may be affected by the
estate changes, we are currently working through options
with each individual, identifying relocation opportunities
in the event of closure, but most of all we are listening
carefully to understand fully the impact on staff.
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rose—
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I am happy to give way, but I was coming to the hon
Gentleman’s point.
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If the Minister is going to answer this, great, but does he
recognise the particular issue of the unfeasibility of
Barrow staff relocating, and has he had a chance to examine
the proposal that I made when we met to find a cheaper
lease on a smaller property in Barrow than Phoenix House?
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I recognise, of course, the difficult position that staff
in Barrow are in and I join the hon. Gentleman in the
tribute that he paid to the immensely valuable work that
they do. I fully recognise, as he does, the accumulated
experience that that group of dedicated staff has.
One-to-one conversations will be going on in Barrow and,
indeed, in all other locations where there are affected
staff. There will be some limited opportunities for staff
in Barrow jobcentre, but I am not suggesting that that
covers everybody.
The industrial injuries work rightly raised by the hon.
Gentleman is moving to Barnsley, which is an existing
centre with experience and expertise. Overall for that
work, reducing volume demand is projected over the next
five years, and we do not expect an impact on service to
the customer.
The Department has already made a commitment to support
anyone who chooses to relocate in the event of a site
closure. That would include the payment of additional
travel expenses for up to three years. However, the fact
remains that the Department has significantly more capacity
across its network than is needed to serve the needs of our
customers, even allowing, of course, for a sensible margin.
It is imperative that we strive towards more modern and
dynamic delivery methods.
Although there is no statutory requirement for consultation
on the estate changes to jobcentres, we are conducting
consultation on all proposed closures of jobcentres that
fall outside what are known as the ministerial criteria. It
is not unreasonable to expect claimants to travel to an
office that is within 3 miles, or 20 minutes by public
transport, of their existing jobcentre. Where a proposed
move is outside those criteria, we have chosen to consult
publicly both stakeholders and claimants to ensure that the
full implications of the closure are considered before we
make a final decision. To enhance the profile of such
consultations, we have written to local stakeholders and
have distributed leaflets and put up posters at affected
sites. We have undertaken public consultation where we
think the proposals may have a significant effect on
claimants. The objective is to ensure that the effects of
our proposals are fully considered before any final
decisions are made, and I welcome the engagement and
responses that we have had from local stakeholders.
We have had a total of 290 responses from across the three
sites in Glasgow. Those include responses from claimants,
Members of Parliament, including some present here,
interested third-party organisations and the wider public.
Alongside taking into account the views of a range of
stakeholders via consultation, I have met a number of
fellow Members of Parliament to discuss how proposed
changes to the estate will impact at local level. I will be
considering the feedback to all the public consultations
and I reiterate to hon. Members that these are genuinely
proposals at this stage. When we make final decisions on
the design of our estate, we will do so with all the
feedback that we have had in mind. That may include
considering additional options for outreach or indeed
something wider—nothing is off the table at this stage.
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Stewart Malcolm McDonald
Will the Minister give way?
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To allow two minutes for the hon. Gentleman’s colleague,
the hon. Member for Glasgow South West, I had better not.
When a jobcentre closes, the Department has a comprehensive
set of outreach and support measures in place to support
claimants in accessing the services they need. We embrace
closer working with local organisations and support
outreach activity at community and partner facilities,
including local authorities across the country. That allows
work coaches and partner organisations to support the
shared needs of claimants. By working with a range of
partners, including local authorities, we are able to
expand the range and offer of our services.
We respond to personal circumstances. For claimants who are
unable to attend a jobcentre due to their vulnerability or
the complexity of the transaction required with the
Department, we have robust procedures in place, including
home visits and maintaining a claim by post. Travel
expenses are refundable under certain circumstances,
including where claimants are required to attend a
jobcentre more frequently than fortnightly. Claimants can
also choose to attend an alternative jobcentre to the one
allocated to them if the jobcentre they have been allocated
is not the closest or least costly for them.
I touched briefly on Lewisham. On Sheffield, there has been
a consultation. The proposal is that Sheffield would better
utilise space at Cavendish Court, which is currently only
45% utilised. Eastern Avenue is 74% utilised, but the move
would not work in reverse because of the different
configurations and sizes of the buildings, and Cavendish
Court and Bailey Court are respectively 4.4 miles and 4.7
miles away.
The Scottish National party spokesman, the hon. Member for
West Dunbartonshire (Martin Docherty-Hughes), spoke about
partnership and outreach. I entirely agree about the need
for partnership and for continuing to enhance it; the West
Dunbartonshire employability hub is a particularly good
example of that. As I mentioned, we are always keen to do
more and to discover such opportunities, and that includes
close working with Skills Development Scotland and others.
The proposed changes are the result of careful analysis and
planning. While I appreciate hon. Members’ concerns about
the proposed closures, and again thank the hon. Member for
Glasgow South West for securing this debate, the rationale
for the proposals is clear. We are working towards a more
modern, dynamic estate. This will ensure that we continue
to have sufficient flexible capacity to deliver the best
services we can to our customers. It is important to stress
again that all the specific changes to the estate that have
been raised in this debate are still only a set of
proposals, and we are continuing the consultation process
with our staff to assess how each might be affected. I want
to reiterate that in the event that co-location or closures
are required, we expect that to have no impact on the
excellent services we continue to provide to customers
across the country.
4.28 pm
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May I first apologise to you Mr Walker? So keen was I to
raise this issue that I forgot to refer the House to the
Register of Members’ Financial Interests and my position as
chair of the PCS parliamentary group. I apologise for that.
A number of issues have not yet been answered. There is the
question of the review criteria. I am clear, as are many hon.
Members, that all 78 sites that were earmarked for closure
should have been subjected to a full public consultation. The
reason why is that the equality impact issue is still
outstanding; there is no equality impact assessment for
disabled people or the black and minority ethnic community,
among others. The economic impact will certainly be hard on
many areas; the hon. Member for Barrow and Furness (John
Woodcock) identified that, and made an excellent point on
industrial injury benefit. There is also the workforce
impact; we have a written answer that says that the DWP
expects 750 staff posts to go. If it is hiring staff and
letting 750 posts go, I suspect that there will be an
employment tribunal at some stage.
We need to make sure that this is done with the correct
information, and not wrong and inaccurate information. I ask
the Minister to listen to the point made by my hon. Friend
the Member for Glasgow South (Stewart Malcolm McDonald) about
parliamentary scrutiny going forward, and to make sure that
we deal with this issue on the Floor of the House. Certainly,
if the Minister makes announcements, we expect that to be on
the Floor of the House and not sneaked through in a written
statement on a Thursday or Friday, or before a recess.
I thank you, Mr Walker, and thank all hon. Members for taking
part in this important debate.
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Mr (in the
Chair)
Thank you, colleagues. I hope you all have a productive
Friday and weekend.
Question put and agreed to.
Resolved,
That this House has considered Jobcentre Plus office
closures.
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