Oral Answers to Questions
What estimate he has made of the number of unemployed young people.
The Secretary of State was asked—
More than 1 million young people are currently not in education, employment or training. Youth employment in the UK has not reached its pre financial crash level in any year since, and there has been a sharp rise in recent years in the number of young people not in education, employment or training. That is why we are investing an additional £2.5 billion over the next three years into the youth guarantee and the growth and skills levy.
The Transport Committee’s “Buses connecting communities” inquiry heard about the significant impact that public transport connectivity has on unemployment. That is especially the case for young people in North Norfolk. It is a vicious cycle: poor connectivity creates poor prospects, and young people leave to start their careers elsewhere. How will the Secretary of State work with his colleagues across Government to make sure that young people in rural communities do not face extra barriers to unemployment compared with their urban peers, and will he commit to making sure that rural young people have a fair opportunity to thrive?
The hon. Member raises an important issue. Whenever I discuss youth unemployment and opportunity with MPs, they often identify transport links as a barrier. We are capping single bus fares at £3 on thousands of routes in England outside London until March 2027, but I believe that there is more that we can and should do, because he is right that connectivity is really important and is linked to opportunity.
I thank my right hon. Friend the Secretary of State for his answers and the work he is leading on for young people. I recently visited a Jobcentre Plus office to meet the team and see some of the fantastic work they are doing to get our young people into work, but what struck me was that I had to visit a neighbouring constituency, because Battersea does not have its own office like that. Some of my constituents are having to take not one or two but three buses to get to that jobcentre when there is a perfectly good jobcentre in Wandsworth. What steps is my right hon. Friend taking to ensure that we remove all barriers so that transport and travel is not a challenge for our young people in getting into work?
I thank my hon. Friend not only for her question but for the wonderful work she has done and the advice she has given me on closing the disability employment gap and championing the rights of partially sighted people. She asks about access, which is important. Alongside our jobcentre network, we have mobile jobcentre vans, and over the next few years we will be opening 360 youth hubs to get services to where young people are in the local community.
I call the shadow Minister.
Over 700,000 young people are now out of work. That figure is up 100,000 year on year, and the youth unemployment rate is now at over 16%—higher than at any point during the pandemic. As this is likely to be the ministerial team’s final question time, will the Secretary of State reflect on the damage that the Employment Rights Act 2025 and national insurance increases have had on youth unemployment? Behind all those figures are stories of young people not earning or learning. They do not need yet more billion pound Government schemes. They need a growing economy with businesses that want to hire them. Will the next Government finally deliver that?
We have the second fastest growing economy in the G7, we have 400,000 more people in work than we did last year and the number of young people in employment is up by 74,000 since the election. In the whole 14 years in which the hon. Member’s party was in power, it went up by only 1,000.
I call the Liberal Democrat spokesperson.
In deprived coastal communities such as Torbay, the NHS and the Department for Work and Pensions can make up a significant part of the job offer, including entry level jobs for young people. It was therefore disturbing to hear last week that almost 5,500 jobs could be moved or be at risk of redundancy across the United Kingdom. In Torquay, there are 130 jobs at Cotswold House with no prospect of being moved to another DWP location. Will the Secretary of State meet me to discuss those office closures and how young people can be helped into employment through employment with the DWP?
I appreciate that the DWP plays a role as a local employer, but it is important that we deliver our service as efficiently as possible on behalf of the taxpayer and that we get the maximum value for money for that. With regard to the hon. Member’s request, there has been an offer of a meeting with a Minister from the Department; I hope that he will take that up.
The employment rate is 78.4% in rural areas, compared with 74.8% in urban areas, with job opportunities in agriculture, forestry, fishing, and scientific and technical sectors. Under this Government, economic inactivity among people aged 16 and over in rural areas has fallen by 0.8%, and through the new jobs and careers service we are providing more outreach in rural areas, including jobcentre vans, bringing employment support directly into rural communities.
The picture that the Minister paints is not one that I recognise, and it is not one recognised by businesses in my constituency. Rural job opportunities have gone down, rural unemployment is up, and businesses routinely tell me that the increased cost of employment under this Government has directly contributed to their inability to continue recruiting. Does the Minister recognise that? Will she impart on the next Prime Minister the importance of a change of course?
The question was about rural areas. It might be interesting and helpful for the hon. Member to reflect how under the last Government the number of jobs in agriculture—a key sector in rural areas—fell by 50,000 while under this Government it has risen by 5,000.
Being in work is the best way to avoid poverty. The benefit cap gives a modest but significant incentive to start work and then to progress in work. Some people cannot work, so the cap does not apply to people out of work on disability or caring benefits, but for others it remains in place.
The abolition of the two child limit by this Government was a key step in cutting child poverty, but some of the poorest families still see their benefit capped, and there are shockingly high levels of child poverty in parts of my constituency, with 70% of children in Arundel ward and 61% of those in Princes Park ward growing up in poverty. The cap hits families with high needs: two thirds are single parent families, more than half of whom had a child under five and over a quarter had a child under two. They are often forced to turn to food banks to survive as a result. The Trussell Trust provided 1,300 food parcels to children in Liverpool Wavertree last year. Will the Government build on the abolition of the two child limit and review the benefit cap to ensure that families with very young children are protected from poverty?
We will certainly keep the policy under review, but at the moment too many people are in poverty through being out of work, and the cap does help by increasing the incentive to work. My hon. Friend is right to highlight the scrapping of the two child limit—2 million children will gain overall from that. There are 50,000 capped households who will not see a gain, but a large number will. One other point I should make is that childcare support within universal credit is not affected by the cap, so that is of further help.
The House of Commons Library, quoting the Joseph Rowntree Foundation, reports that child poverty rates in Scotland are much lower than in England, at 23% compared with 31%, due at least in part to the Scottish child payment. In the light of this Government’s mission to tackle the scourge of child poverty, can the Minister describe what measures the Government are planning, in addition to the abolition of the two child cap—for example, scrapping the infamous bedroom tax?
The hon. Member is right that the scrapping of the two child limit is the key measure and will lead to 450,000 children moving out of poverty. Other measures in our child poverty strategy that we published last year will increase that number by another 100,000. That is going to be very welcome progress in Scotland as well as in the rest of the UK, and we will be keeping policies under review.
I call the shadow Secretary of State.
Well, there we heard it a moment ago: a Labour Back Bencher calling for yet more money to be spent on benefits. What we should be doing is talking about all the households who are avoiding the cap, when 100,000 households get over—
Shame on you!
Order. We have to be very careful with our language, especially when you are on the panel of Chairs.
Some 100,000 households get over £50,000 in benefits, and 16,000 households get over £60,000 in benefits. That gives them the same income as the top 10% of earners in this country. British people are sick and tired of footing the bill for “Benefits Street” and seeing welfare claimants living lives of luxury at their expense. The right hon. Member for Makerfield (Andy Burnham) has called for more collaborative politics, so will the Minister adopt our plan to toughen up the benefits cap and save £1 billion off the benefits bill?
If there is a plan, I would be very interested to see it. We certainly have not seen any details of it. The hon. Member’s comments are a further example of her expressing dissatisfaction with the system left behind by her Government after 14 years. We are reforming the system and making sure it is doing the job we need it to do, and we will carry on with that programme of reform.
Question 4, Mr Speaker.
It is question 5.
We are making strong progress on expanding youth hubs, with around 130 already in operation across Great Britain. In March, I announced the locations that we want to open in this year, and I have just announced a further 180 locations for the following two years. The areas involved, including Harlow, Cardiff, Dartford and east Hertfordshire, will see new youth hubs opening in local sports clubs, libraries and other venues. Wherever MPs get a youth hub, I encourage them to work with their jobcentres and with local organisations to confirm venues and begin delivery of these important services.
I thank my right hon. Friend for that brilliant news, and I hope that they will focus on mathematics skills as well—I could do with some of that. Young people were left behind by the previous Conservative Government, with 13.2% in south east Wales not in employment, education or training. Youth hubs offer personalised wraparound employment, skills and wellbeing support in targeted areas, so does the Secretary of State agree that the new youth facilities in Cardiff football club and Ely in my constituency, with proper consultation, are a clear demonstration of Labour fixing the mess left by the Conservatives and giving young people the best opportunity in life?
My hon. Friend is right, and I thank Cardiff football club for being a partner. We are supporting nearly 1 million young people and creating up to half a million opportunities for jobs and training. We are doing that by providing incentives for employers to hire, promoting apprenticeships and delivering a whole range of targeted programmes. Another important point about youth hubs is that they are not just available to people already signing on and on benefits; a significant proportion of young people not in education, employment or training are not claiming benefits, and the youth hubs are open to all of them, too.
As you will be aware, Mr Speaker, my Harlow constituency is full of incredibly talented young people, some of whom I had the pleasure to meet at a recent Harlow college awards ceremony. Alan Milburn’s report makes it clear that young people are being let down by a broken system and deep seated barriers, rather than by their own ambition, so will the Secretary of State outline how a youth hub in my constituency will make a massive difference to young people in Harlow, ensure that they get the skills that local employers are looking for, and build on the great work done by Harlow college?
My hon. Friend is a great champion of Harlow and the people of Harlow, and I believe he will make maximum use of the youth hub to advance opportunities for young people in his constituency. We are committed to giving the young people of Harlow the best possible chance in life. I recently visited the Netherlands, which has a youth inactivity rate significantly lower than ours, and youth hubs are an important part of its effort.
There is already much excitement in my community that East Herts will be home to one of the new youth hubs being rolled out by this Labour Government. I represent a semi rural area where young people often have to make significant journeys across or even outside the constituency to access the services and support they need. Rurality can be a barrier to finding support and work, so will the Minister say a little more about how the Department’s model for youth hubs will account for it? Does a youth hub have to be in one location or can it be split across multiple venues if the interest is there?
My hon. Friend raises an important point. As I said, we recognise that transport can be a real barrier for young people in rural areas, so we have designed youth hubs to be flexible and to work with local partners on tailoring delivery for what works best in each area. That can include offering more flexible opening hours or choosing locations that align with local transport patterns. The whole idea is to meet people where they are in the community and make services as easy as possible for them to use.
Constituents in Dartford are also pleased that our area has been chosen as one of the local authorities to receive a youth hub. We have a growing population of under-25s, all of whom are talented and enthusiastic and want to get into the workplace. Will the Secretary of State set out when that hub is likely to open, what services will be available and what difference it will make to the lives of young people in Dartford?
The Dartford youth hub is scheduled to open in the next financial year, and it will bring together a range of support. Youth hubs include mental health support, housing support, and skills and career opportunities all in one place. The whole idea is that people do not lives their lives according to departmental boundaries, and the way that we help them should understand that and bring these departmental boundaries together. Our evaluation shows that young people at youth hubs are more likely to progress towards employment, and two thirds report that the support met their specific needs.
I cannot help thinking that, with youth hubs, the Government are trying to fix a problem of their own creation. The amount of young unemployed people in my constituency has gone up 23% since the Government took office in July 2024. Can I just let that figure sink in? Twenty three per cent. The Secretary of State should be ashamed of what he has done to young people in the Gosport constituency. How has he done that? He has done it by ensuring that all the businesses that give young people the first foot on the employment ladder—hospitality, childcare or hair and beauty—have been poleaxed by the actions of this Government. Only this morning we heard—[Interruption.] Thank you, Mr Speaker. We heard the Prime Minister in waiting talking about the importance of creating growth. When will they realise that only businesses create growth, so get out of their way and let them do it?
As Alan Milburn pointed out in his recent report, the UK’s NEET crisis is much more long term and deep seated than any decisions taken in the last few years. There are 400,000 more people in work than last year. The number of young people in employment is up by 74,000 since the election. It only went up by 1,000 during the Conservative party’s 14 years in power. From tomorrow, we will open a process of hiring incentives of £3,000 for any business that wants to take on a young person who has been out of work for six months or more. Shame is not the emotion I feel; it is passion for opening up work and opportunity to more young people, and that is what we are doing.
With the impeccable timing of an Olympic medallist and world record beater, the inspirational Fatima Whitbread is in Parliament today in room U in Portcullis House till 4 pm, stressing the importance for people like herself brought up in the care system of wraparound local authority hubs working with and including the education, sport, police and charity sectors. Will a member of the ministerial team—preferably more than one—take the trouble to leave this Chamber when questions end and go over and talk to Fatima about her interesting and constructive ideas in this important field?
I am not quite sure about the question, though it was a good twist on getting there.
Congratulations to Fatima Whitbread—a great British and Olympic hero. The right hon. Member is right about the importance of opportunity for care leavers from wraparound care—we are keen to do that. We want not just to help young people into work, but to help them after they have found work. We will certainly try to ensure that a member of the ministerial team calls into the event that he mentioned.
One of the key routes into employment that youth hubs can provide is supported internships. Will the Minister congratulate Young Somerset on helping people who have been failed by the education system into secure employment through supported internships? Will someone from the ministerial team meet me and Young Somerset to discuss cuts in funding and the reduction of those supported internships?
I am happy to congratulate Young Somerset on supported internships. I am sure the hon. Member will get a meeting with somebody in the ministerial team. As for his call for more funding, that has to sit alongside the many calls we have for more funding in this House every day.
I recently met Voices for Impacts youth advisory group in Glengormley. Unfortunately, the funding for its youth centre has been cut to one night per week. What encouragement can the Secretary of State give those young people that the youth hubs he is talking about can be extended to Northern Ireland?
I believe that these youth hubs are applicable to every part of the United Kingdom. Well done to the organisation in Glengormley that the hon. Member mentioned. Of course, the Northern Ireland Executive has its own funding, too, and many matters are devolved. But wherever young people are in the United Kingdom, I want them to know that this is a Government that wants to see more opportunity and more work for them and a helping hand to get them on that first vital step on the career ladder, which is often a good first job.
As I said, earlier this spring we announced the expansion of youth hubs to all planned areas and the launch of phase one of the jobs guarantee for the long term unemployed, first in six areas and later to the whole country. From today, we are rolling out expanded employment support for young people on universal credit to all jobcentres in Britain. As I mentioned, from tomorrow, we are opening the youth jobs grant, which will give employers a £3,000 hiring bonus to take on a young person who has been out of work for six months or more.
The youth guarantee will play a crucial part in a city such as Peterborough where for too long, too many young people have been starting their adult life on benefits without the necessary skills. Just this month, the Minister for Social Security and Disability, my right hon. Friend the Member for East Ham (Sir Stephen Timms), cut the ribbon on the BRDG, a new partnership between Peterborough College, Inspire2Ignite and businesses to create more opportunities for young people, but we want to go further. Working with Inspire2Ignite, we are bringing together businesses, civic sector charities and others to launch the 3% club to cut the NEET level in Cambridgeshire to 3% and give young people the opportunities they need. Will my right hon. Friend explain how the Department can support frontline innovation and partnerships like that one? Will a Minister meet me with Inspire2Ignite and listen to the voices of young people as we turn this situation around?
I thank my hon. Friend for his commitment to expanding opportunity for young people in his constituency and to reducing the NEET youth rate. As he knows, I was pleased to open the Peterborough youth hub some months ago, and my Department is working with the Cambridgeshire and Peterborough strategic authority on the youth guarantee trailblazer. I congratulate Inspire2Ignite. I value positive feedback from the Minister’s visit to the BRDG site, and I will ensure that my hon. Friend gets a meeting with a Minister to discuss these issues further.
My local businesses such as Labman in Stokesley, Barkers and Sam Turner & Sons in Northallerton, and Metcalfe Farms in Leyburn are all excellent at providing opportunity for young people through apprenticeships. I note that the Government have introduced a welcome hiring incentive for the smallest businesses to take on young people, so will the Secretary of State congratulate my local businesses that are doing just that? Will the Government learn lessons from the kickstart scheme, which I believe the guarantee is somewhat modelled on, because we discovered that it is better to have an easy application process for the smallest businesses, to speed uptake and to ensure that they are aware of such initiatives? Such schemes are very beneficial, but we must ensure that businesses are aware of them and take them up to benefit young people.
I thank the right hon. Gentleman and send him commiserations for whatever has left him reliant on his crutches today. I am happy to congratulate the businesses he mentioned in his constituency. He raises a serious point: it is important not only to come up with the right policy, but to make it simple for businesses to use. That is something I have stressed to my officials; it is important that this scheme is simple to apply for. The money will be given in two instalments—one in the second month, and one in the fifth month—to ensure that hiring is sustained, but I entirely agree that good policy should be matched by a simple application process.
I call the shadow Minister.
I am not surprised that Labour Ministers and Back Benchers are patting themselves on the back for their youth guarantee, but it is a sticking plaster solution to a problem of their own creation. Rather than U turn on their triple whammy of increased business costs, higher national insurance, higher wages and higher business rates, the Government would rather use the state to subsidise jobs for the same young people who businesses can no longer afford to employ. Will the Secretary of State finally concede that no amount of Government work programmes can undo the damage that they have done to the labour market and to opportunities for young people?
In his review Alan Milburn considered that issue and said that, “the UK’s NEET crisis is much more long term and deep seated than any decisions taken in the last few years.”
As I said earlier, 400,000 more people are in work this year than last year, and the number of young people in employment is up since the election. Our policies are designed to help business rally to the cause of getting more young people into work, and I am pleased that we are introducing hiring incentives of £3,000 to help businesses take on a young unemployed person who has been out of work for six months or more. There is a good reason to target that group with opportunity, because the longer people are on those benefits, the greater the consequences that can have for their lives in the long term. Their whole future is in front of them, which is why it is right that we help them.
The Government are committed to improving data sharing with local authorities, as part of our endeavours to improve services. We are taking forward work with local authorities on the “identifying local vulnerability” project, and that work will support enhanced data sharing across local and central Government. Work has already taken place to establish customer needs and ways of working, and future stages will focus on ensuring that the best technological solution is deployed.
As the Minister knows all too well, the DWP’s shortcomings can end in tragedy. Errol Graham was a benefits claimant who starved to death without heating, electricity or adequate food. His local council, his housing association, his GP and the DWP all held information highlighting risk, and if only they had been able to share it he would be alive today. The ILV project can show the whole picture, but the trial has faced delay after delay. Will the Minister commit to a firm delivery deadline?
The hon. Gentleman is correct to recognise the importance of this work. Data sharing with local authorities is essential, particularly working on homelessness prevention, on young people not in education, employment or training and on supporting families. There is a rich seam here if we get this work right, and we expect to see early benefits from the roll out of the scheme by 2027.
In January, Storm Goretti slammed into Cornwall, bringing down trees and phonelines, and cutting off individual communities. I was shocked to hear about the story of an elderly couple who were trapped in their bedroom because their stairlift had broken, so villagers had to winch food to them for the weekend. What lessons have been learned from Storm Goretti in relation to the vulnerability project?
I share my hon. Friend’s shock and horror at that particular episode. If he sends me further details of that specific case, I will ensure it is fed into that work. From the data sharing that will be available, I envisage that there will be an ability to recognise where there is a particular and urgent need for access to services, such as the crisis resilience fund. If he writes to me in more detail, I will ensure that any lessons that can be learned are fed in.
The Department publishes data on universal credit and keeps labour market trends under review. In January 2026, 3.1 million people were on universal credit in employment, representing 37.8% of all claimants. Universal credit is designed to support people into and in work, allowing individuals to move into employment while continuing to receive support as their earnings increase.
As the proud parliamentary lead for the Right To Food UK Commission, I have heard powerful testimony from workers employed by large, profitable companies across the UK who are paid so little that they are driven to hardship, hunger and dependence on universal credit just to put food on the table. The DWP assesses that 1.2 million people on universal credit are working to their capacity, with their income topped up by the state because their wages are so low. That figure has increased threefold in six years. Does the Minister agree that the taxpayer should not be left to subsidise poverty pay paid by companies that employ more than 250 people? Will the Government require those companies to report on how many of their workers rely on universal credit because their wages are so low?
I acknowledge what my hon. Friend says and I commend him for his work on the Right to Food UK Commission. I know that many people who work very hard doing important work in sectors like retail and care do not earn enough, so at the end of the week there is insufficient money and they rely on foodbanks. I invite my hon. Friend to come and talk to me about this so that we can discuss what we might be able to do about it.
The University of Cumbria has shown that average hill farm incomes are less than the national minimum wage in our communities and beyond. Despite their poverty, farmers of all kinds and small businesses often cannot claim universal credit at all because of the way that universal credit is assessed on the basis of monthly income, when they might have fluctuating annual income. Will the Minister meet me and farmers’ representatives to ensure that farmers in poverty get the support that they deserve?
Yes, I am very happy to meet the hon. Gentleman.
We have been reminded already this afternoon of the experiences of Fatima Whitbread. Work is under way across Government to give care leavers access to the skills and wider support for sustained employment and career progression. Lower universal credit rates for younger claimants strengthen work incentives and encourage increased earnings over time.
This Government are rightly committed to breaking down barriers to opportunity, but care leavers still face disproportionate challenges as they move into independent adulthood. Will the Minister commit to reviewing the universal credit age related rates for care leavers, with a view to ensuring that all 18 to 24-year old care leavers receive the same rate of UC as those aged 25 and over?
It is very important that we do not weaken the incentives for care leavers to start work and to progress once they are in work. At the moment, 40% of young care leavers are not in employment, education or training. That is a horrific statistic, so our response is to provide tailored Jobcentre Plus support. We also have the new youth jobs grant of £3,000, which my right hon. Friend the Secretary of State has referred to, which will be available from tomorrow. Care leavers under the age of 25 are eligible for the one bedroom local housing allowance rate, rather than the shared accommodation rate, so there is a financial benefit there, but our focus is rightly on support into work.
I thank the Minister very much for his answers, as always. In Northern Ireland, care leavers are really untold heroes in the work that they do. Many of us, in all our communities, understand the delivery of care that is provided. In relation to young people, has the Minister had an opportunity to talk to the relevant Minister in Northern Ireland to ensure that we can move forward with the speed that he seems to indicate? I understand that there are 19,000 young people between the ages of 16 and 24 in Northern Ireland without any employment, so there may be an opportunity here to do better.
I would be delighted to have that conversation. I speak regularly to the Minister in Northern Ireland about matters in my portfolio, and I would be happy to cover this matter in our next conversation.
I thank my hon. Friend for her interest in this area. Through our child poverty strategy, we are already taking substantial action, including the expansion of free school meals eligibility, the removal of the two child limit and the introduction of the £1 billion crisis and resilience fund. Actions in the strategy will lift 550,000 children out of poverty in ’29-30, and the removal of the two child limit could benefit around 1,650 children in York Central.
Lifting children out of poverty will be this Government’s greatest legacy. However, we know that around 4 million children will remain in poverty, so it is really important to go further. Last year, the former Prime Minister Gordon Brown suggested a levy on the gambling and betting industry to raise £3 billion and lift another 500,000 children out of poverty. Will the Minister ensure we do even more so that we have a greater legacy and ensure that the lives of those young people are changed forever because of the decisions of this Government?
Like my hon. Friend, I am very proud of what the child poverty strategy will deliver. It may be worth reflecting on what the Chancellor said about child poverty at the end of last year in the Budget. She said that “because I am tackling fraud and error in our welfare system, cracking down on tax avoidance and reforming gambling taxation, I can announce today, fully costed and fully funded, the removal of the two child limit in full from April.”—[Official Report, 26 November 2025; Vol. 776, c. 397.] I hope that reassures my hon. Friend that that was taken into account in the decisions taken by the Chancellor.
It was interesting to hear the Minister’s comments in relation to the last question. In assessing progress on reducing levels of child poverty, what assessment has been made of hidden pockets of deprivation in places such as my own constituency? Overall child poverty in Guildford after housing costs is 13.2%, but in some of the neighbourhoods in my constituency, including the one where I was previously a councillor, that number rises to 50%. I continue to find that deeply shocking, and it presents very specific challenges in areas such as mine. What steps are the Government taking to ensure that children living in these pockets are not overlooked by their own policy?
The hon. Lady raises a very important point. The child poverty strategy is a 10-year strategy. We are very clear that, as Ministers across Government, we need to be looking at all areas of what Government can do to address child poverty, and there is a key measure around deep material poverty that we need to look at. It is really important that we work with local councils, combined authorities and mayors, because there is some really good work going on in local areas to address those pockets, which might be missed in the overall picture. Local areas are very well aware of where more work needs to happen.
Losing a loved one is deeply distressing. DWP provides support through the bereavement support payment—a tax free lump sum with up to 18 monthly payments for eligible partners. Help with funeral costs is available through the funeral expenses payment for those receiving income related benefits. Additional support that may be available includes the bereavement run on in universal credit, which extends support after the death of a partner, child or another adult in the household.
As the Minister probably knows, a petition calling for reform of the bereavement support payment has now passed 100,000 signatures and is backed by Widowed and Young, Gingerbread, and Cruse. Many families in Redditch are among those affected. Before the parliamentary debate on that petition, will the Minister engage with Widows Fight UK to ensure that all families facing this unbearable heartbreak have the support they deserve?
I recognise the strong interest in this issue. I was aware of the petition, as well as the campaigning work that my hon. Friend has done in this space. I am very happy to receive any information that that organisation wishes to send to me in advance of the debate on the petition, and I look forward to participating in it.
I recently met members of bereaved families in my constituency, including Joe. They told me about the distress of knowing, while they are grieving, that the bereavement support payment ends after just 18 months, and despite the rising cost of living since the payment was introduced in 2017, it has not been uprated for 2026-27. Will the Government commit to uprate the support payment in line with inflation and review the 18-month limit?
The hon. Member raises an important point. BSP is reviewed annually as part of the wider uprating process, so it would not be appropriate for me to make that commitment today. BSP is limited to 18 months because it is designed to support the acute period following bereavement. Longer term financial support is delivered through the wider welfare system to those who are eligible, including universal credit and child benefit, and through other forms of local support where appropriate.
The Government are committed to supporting British pensioners to enjoy a comfortable retirement after a lifetime of work. That is why we are raising the state pension throughout this Parliament via the triple lock. That saw the state pension increase by 4.8% in April, boosting the level of the new state pension by £575 a year.
I thank the Minister for his reply, but he will know that my borough of Havering has the second largest number of older people in the entirety of Greater London. Nearly a quarter of my constituents are within that age bracket, and they are losing out. I know that the Government’s policy on the winter fuel allowance has changed, but it frightened them and made them ask whether Labour is really on their side. Will the Minister assure my constituents that the next Labour Administration will not target pensioners, but will give them the respect they deserve, and ensure that they have a happy and healthy retirement?
I can give the hon. Member the assurance he asks for, which is that this Labour Administration, like all Labour Administrations, are on the side of pensioners. Of course, he only defected earlier this year, so he was a Conservative MP during all 14 years of the Conservative party’s disastrous last Government—a Government who saw pensioner poverty rise and left one in five of those aged over 75 on NHS waiting lists. That is what letting down pensioners looks like.
Can the Minister set out what plans he has to make sure that today’s workers—tomorrow’s pensioners—enjoy a decent retirement?
That is a very important question. We need to make sure that those who will retire in 2050 can look forward to the same kind of comfortable retirements that many—not all, but many—of today’s pensioners enjoy, and the honest answer is that we are not on track for that at the moment. This Government are taking a two stage approach. We are driving up returns on pension savings now—that is what the Pensions Schemes Act 2026 does—but we are also doing the longer term work through the Pensions Commission to look at exactly the question of how we make sure that tomorrow’s pensioners can enjoy comfortable retirements. I promise that the commission will bring forward its report early next year.
I call the shadow Minister.
The Pensions Minister likes to spend a lot of time criticising the previous Government for their actions on pensioners. He also spends an awful lot of time talking up his legacy on helping pensioners, but his actions simply do not reflect the narrative. So far, he has capped salary sacrifice, there have been delays to the pensions dashboards, we have had retrospective changes to inheritance tax on pension pots, and—as we have heard—the Government are chasing hard up pensioners for their winter fuel allowance. All of this creates uncertainty among savers and pensioners alike, so I will repeat the question asked by the hon. Member for Romford (Andrew Rosindell): is the Pensions Minister hopeful that his successor will do a better job of looking after pensioners?
I am incredibly hopeful that this Government are doing a much better job than the previous Government in supporting pensioners, not only by driving up the state pension, but by getting on with the much delayed reforms to our defined contribution pension system, which the previous Government left on ice. We are also coming forward with something much more important, because the biggest betrayal of older generations in Britain today is the state in which the Conservatives left our national health service.
Overall levels of fraud and error are the lowest since the pandemic at 3.2%, compared with the peak of 4.3% in financial year end 2022. That reduction of a quarter demonstrates sustained progress with our fraud and error measures. Building on that success, we have set a new ambition to reduce the rate to 2.8% by 2028-29, which would be the lowest cross welfare overpayment rate since tax credits were introduced in 2003.
In Scotland, benefit fraud has effectively been decriminalised; the number of prosecutions is vanishingly small. Given that the Department for Work and Pensions continues to have a role in Scotland—administering some benefits, despite devolution—what can the Department do to tackle fraud there? It is happening here, and we have a two tier system in Scotland.
If the hon. Gentleman has specific concerns about how benefits are being administered and fraud is being investigated through the powers of the Scottish Parliament, I would very much appreciate it if he could write to me. In some instances, the way in which the Department and our Scottish Government counterparts will be investigating fraud means that we are now teed up to intervene at an earlier stage, where a number of the issues can be less serious. We can detect and act at a much earlier stage. That is beneficial in reducing fraud and for claimants.
Since our last DWP questions, both Alan Milburn and the Pensions Commission have published their respective interim reports on young people and on the current state of saving for retirement. I look forward to receiving their final reports later in the year. Earlier this month, I visited the Netherlands to see the impressive work of the Dutch Government to ensure that youth inactivity is a last resort, and I think there is much that we can learn. Finally, I put on record my thanks and best wishes to Sir Peter Schofield, the outgoing permanent secretary of the Department. He leaves after more than eight years at the helm of the DWP. I look forward to working with his successor, Dame Sarah Healey, who will be joining us as the new permanent secretary shortly.
This Government have set out to change culture across the DWP in order to make it far more focused on people, not faceless processes. However, in my constituency of Worcester, people are finding that when DWP services have made mistakes, the reaction continues to be delay, denial and sometimes outright refusal to fix errors. What is the Secretary of State doing to improve the attitudes, values and approaches of frontline client facing services?
It is important to treat customers properly and fairly and to remember that the DWP deals with some of the most vulnerable people in society. The Department takes safeguarding seriously. We have increased training, particularly for those involved in health assessments. If there are specific cases that my hon. Friend wishes to draw to my attention, I encourage him to provide me with the details.
I call the shadow Secretary of State.
I associate myself and those on the Opposition Benches with the Secretary of State’s comments about the outgoing permanent secretary of the Department for Work and Pensions. I am sorry that this may be my last exchange with the Secretary of State, as we await the coronation of the king in the north and the appointment of his new team. I hope that the right hon. Gentleman is not sacked for telling the truth about his fellow Labour MPs, who just want to put up taxes to pay for more benefits. Does he think that our next Prime Minister will have the courage to take on those Labour MPs and bring down the benefits bill, or will the new PM bottle it like his predecessor did?
I enjoy our exchanges, and I welcome the opportunity that the shadow Secretary of State has given me to point out that in the past year I have said time and again that we have to change the question that the system asks from “What benefits are you entitled to?” to “How do we help you change your life?” The debate on how we reform the system has changed to one in which we are putting opportunity and work at the centre of what we do. That is what we are doing with the youth guarantee, and that is what we will continue to do.
I heard no commitment from the Secretary of State that the benefits bill was going to come down any time soon. Labour can change its leader, but it is still the same old welfare party.
The right hon. Member for Makerfield (Andy Burnham) told us this morning that he is going to bring “Manchesterism” to the whole country. In Manchester, he is spending nearly three quarters of a million pounds on helping asylum seekers to claim benefits. British people are tired of seeing their hard earned money being spent on handouts to foreigners. We cannot be a cash machine for the world. Does the Secretary of State think that this is a good use of taxpayers’ money?
Of course, people should only receive benefits if they are properly entitled to and qualified for them. All this has to be underpinned by our being as caring and as passionate about wealth creation as we are about fair wealth distribution. That is what unites Labour people. We are asking the right questions, while the hon. Lady is still asking the wrong ones.
My hon. Friend has made an important point. The Child Maintenance Service is committed to ensuring that separated parents support their children financially, and to ensuring that the assessment reflects the parents’ true income. I am not familiar with the specifics of the case that my hon. Friend has raised, but my general view is that while enforcement powers are adequate, case complexity is often the challenge when it comes to proving where money is owed. If my hon. Friend wants to write to me about that specific case, I would be happy to look into it further on his behalf.
I call the Liberal Democrat spokesperson.
I welcome the Government’s acceptance of a finding from the Liz Sayce review of carer’s allowance overpayments in respect of the underuse of waivers, given that the households concerned are often the most vulnerable in society. Has a review of the use of waivers been undertaken, and what changes have been made for frontline staff?
As the hon. Member knows, we are working through the cases of those who were required to repay an overpayment over recent years. I am receiving an update every week on the number of cases that have been gone through and the number of people who have had an overpayment reduced or cancelled, and I would be happy to give the hon. Member further information about the progress of that work.
My hon. Friend has raised an important point. This has to be a joint effort between the Government and employers. We had a great roundtable at No. 10 this morning with employers who are committed to expanding youth opportunity, and I have visited Merlin, an important leisure and hospitality business, which has agreed to take on 300 young people through our youth guarantee measures. Other businesses are signing up as well, and I encourage as many as possible to do so.
I recognise the hon. Gentleman’s point, and we need to fund the NHS to stop letting down older generations. Taxes have consequences that affect the whole population, including pensioners. The Chancellor has set out that the level of the personal allowance will remain above the level of the new and the basic state pension—the headline rates—throughout this year. In future years we will ensure that we ease the administrative burden for pensioners who have small amounts of tax due.
My hon. Friend and I have discussed this issue on a number of occasions, and she has been an important campaigner for pensioners in her constituency who have been affected by it. Although three quarters of schemes provide some degree of pre-1997 indexation, there is a very real impact on members of schemes that do not—indeed, we have discussed that with local pensioners in south Wales. The surplus reforms that this Government are bringing forward will make it easier for some trustees to negotiate for additional indexation. We launched a consultation on this issue on 10 June, and it runs until 2 September. I will take my hon. Friend’s comments as input for that consultation.
I can assure the hon. Member that my Department is working very closely with the Ministry of Housing, Communities and Local Government to look at what we need to do between us to address the problem of homelessness. I note the point she raises, which is one of the points for discussion.
The youth hub will be able to help young people by treating them as human beings and bringing together holistic support to get them into employment, including in mental health, housing, and essential and vocational skills. As I said, it is about breaking down the barriers between Departments and seeing youngsters as people. So far, 67% of young people using youth hubs report that the support has met their needs.
There is a limit on how far back applications can be backdated, but if the hon. Gentleman would like to drop me a line with the details, I will make sure that we have a good look at the case he raises.
The Pensions Minister knows that there is no retirement on a dead planet, so will he commit to writing to the 50 largest UK pension funds to ask them to set out their timetable for divesting from fossil fuels?
My hon. Friend is a consistent campaigner on these issues in this place and in our regular meetings, and I always learn something from those conversations. I am not going forward with exactly the suggestion he brings forward, but I agree that there is more we can do, not least to provide clarity for trustees. We are working with industry to develop guidance clarifying that fiduciary duties allow trustees investing in members’ best interests to consider systemic risks, including climate change, and we will consult later this summer.
The increased PIP costs are expected to add an extra £5 billion to the welfare budget this year. As the TaxPayers’ Alliance has highlighted, the number of households earning over £100,000 and getting PIP has doubled to 200,000 claimants. Will the Minister make an assessment of the potential merits of means testing PIP to ensure targeted support?
Together with disabled people, we are co producing a review of PIP to ensure that it is fair and fit for the future. The review’s terms of reference reflect the view of successive Governments that PIP should be a non means tested cash benefit for people both in and out of work, because anybody can incur additional costs as a result of long term ill health or disability.
Sadly, Dudley borough was named in Alan Milburn’s “Young people and work” report as the worst performing borough in the country for tracking 16 and 17-year olds—for over a thousand 16 and 17-year olds, it was unknown whether they were working, in school or in college, or what they were doing at all. Can the Secretary of State outline what the Department is doing to ensure that we do not lose sight of these young people, as we have done in Dudley, so that we can give them the opportunities they need?
My hon. Friend raises a really important point. We cannot allow young people to drop out and to drop out of sight of the system. It is really important, especially for 16 and 17-year olds, because we want to see participation in education or training up until the age of 18. On my visit to the Netherlands, I saw how it takes this really seriously, with effort after effort to stop young people dropping out. I think we can learn from that and about tracking young people more closely.
There are now over 1 million young people not in education, employment or training, which is the highest number in more than a decade. When the history books are written on this period of Government, does the Secretary of State agree that the story will be of a lost generation?
When the history books are written about this, they will show that this number rose by a quarter of a million in the last three years during which the hon. Member’s party was in power, and the Conservatives did precisely nothing about it. That is what the history books will show. We are responding with a youth guarantee that puts work and opportunity at the heart of welfare reform. I wish they had done it—they did not—but we are.
One of my constituents is a former care leaver who is facing immense health conditions and he can no longer work. Given the lack of family and social support that many care leavers experience, they are uniquely vulnerable to financial insecurity. Can the Minister confirm that the experiences of care leavers are being considered as part of the Timms review?
If the care leavers are PIP recipients —I think that is probably the case in the example my hon. Friend has given—we are certainly considering that point. If this issue is one that she thinks we need to reflect on in the review, I would be keen to hear about such experiences.
Bereavement benefits have not been uprated for 10 years, and they simply do not recognise the lifelong impact of early bereavement on children and surviving parents. Will the Minister look again at uprating bereavement support benefits in line with inflation?
I appreciate the point the hon. Lady is making. I am not in a position to confirm an uprating from the Dispatch Box, but this will be considered in the usual way as part of the annual uprating process. There is a forthcoming debate in Westminster Hall in response to a petition on the adequacy of bereavement support payments, and I am sure she will participate fully in that debate, if she is able to, to make the case further.
Many young people and children on disability living allowance end up going on to PIP very readily. While it is of course important that people get support, what work is the Secretary of State doing to ensure that those young people are not written off, but given every opportunity to work?
My hon. Friend raises a really important point. There should not be an automatic transition. We also have to consider the life chances of people on long term sickness benefits. So this is worth considering, while always making sure that people in need of disability benefits get the help and support they need to lead as full a life as possible.
I recently visited Grimsby jobcentre and met Nick Gregory and Jo Corney, two excellent officials. One piece of information they gave me was about the opening of a youth hub in Scunthorpe, which will serve many parts of my constituency, but many of the young people who go will be from rural areas. What new initiatives are the Government planning to help provide work for young people in rural areas?
I agree with the hon. Gentleman’s comments about the excellent DWP officials in our area. Youth hubs will be in areas where we are working with, say, sports clubs and other organisations. We are also looking at whether we can use buses to get mobile youth hubs out to rural areas in particular, so perhaps that is a conversation we can carry on outside to see what we can do.
Before being elected to this place, I spent many years looking at how we can tackle the NEET crisis. Does the Secretary of State agree that we should be ambitious for our young people and aim to have 0% NEETs?
I have discussed this with my hon. Friend. There are great schools I have visited that have a record of NEET zero. They do that by paying attention to employability and work right from year 7, so I believe there is more that can be done to reduce the figure and put work and opportunity at the heart of the reform of the system that we are bringing forward.
Unemployment is soaring and nearly 1 million young people are not in education or training. It is a terrible waste of human potential and an economic catastrophe. Reform is proposing that we scrap the damaging jobs tax and pay for that with a new levy on migrant labour, which would make it much, much easier to employ British workers. Will the Secretary of State consider this and put British workers first?
If the right hon. Gentleman has just noticed that there are 1 million young people not in education, employment or training, one has to ask what was he doing when he was a Minister in the last Government when the figures went up by a quarter of a million and he said nothing at all about it? We have brought forward a youth guarantee that will put work and opportunity at the heart of the reform of the system. That is in stark contrast to his record of complete inaction on this issue when he was in a position to do something about it.
Baroness Morris’s inquiry into white working class children has identified how, from early years to future jobs, white British boys on free school meals are falling well behind. How will Ministers, with all the reviews going on and all the work under way, review and incorporate this inquiry’s findings into their work, particularly in relation to jobs and skills?
I welcome my hon. Friend’s question. The report published today is really important, and it shows the lack of opportunity for white working class children at schools. Our agenda of maximum opportunity for young people and of not letting people drop out and be left behind is really important in getting more opportunity for this group of young people.
Local businesses in Bognor Regis and Littlehampton tell me that they are not recruiting due to the additional cost and uncertainty created by the Employment Rights Act 2025. Has the Secretary of State assessed the impact of Government policy? Employment rights count for little if people cannot get a job in the first place.
I encourage local businesses in the hon. Lady’s constituency to look at the new incentives available from tomorrow. They can access a hiring incentive of £3,000 to help them with the cost of taking on a young person, provided that person has been out of work for six months or more. We want to do that in partnership with business. It is an important policy and I look forward to her being a champion of it in her constituency.
Last week I attended the Warwickshire employer and stakeholder conference, where we heard from students, alumni and businesses who are providing time to young people so that they can gain the skills they need—it was very inspiring and moving. Does my right hon. Friend agree that more needs to be done to encourage businesses to provide even more hours? Warwickshire College has said that this is a real challenge.
I agree with my hon. Friend that we need to work with businesses. I want this to be seen as a national cause, a national endeavour, and a good partnership between business and Government, because it is in the whole country’s interests to make maximum use of the very best resource we have, which is the talents of the British people themselves.
Sadly, Leicester South is not immune to the unemployment figures for young people—1,000 young people and counting. My concern is that AI is about to make it even worse, especially as CEOs are citing lower human capital value as justification for replacing workers with AI. What is the Secretary of State’s Department doing to ensure that technological advancements create opportunity, rather than unemployment?
The hon. Member raises an important question, which young people themselves are alive to. AI is an all purpose technology; it will both destroy and create jobs. The leadership task is to ensure that this country is best placed to use the technology and is a good home for investment in it, as well as ensuring that AI adds to the skills of our people.
On 17 July, I am hosting the Journey to Work expo in Stafford, bringing together successful major employers and local businesses, with the focused aim of getting young people into work. Last year, we had more than 300 people attend. Can the Minister tell me how the youth guarantee will reach young people in towns such as Stafford, and what support is available to communities already doing that kind of work?
I congratulate my hon. Friend on being a fantastic champion for Stafford and her constituents. The youth guarantee will help young people in her constituency through hiring incentives, apprenticeship changes and more work experience placements. I know that she will work with me and the rest of Government to be a champion of opportunities for the young people of Stafford.
Given that benefit fraud is estimated at around £9 billion, and that the WASPI women are apparently willing to have the cost of their just compensation claim capped at around a third of that figure, can someone from the ministerial team confirm that the Government are willing to change course and negotiate with the WASPI women?
The hon. Member will know that a judicial review claim has been filed, and that we cannot comment on live litigation. There are legitimate views on raises in the state pension age, particularly the 2011 acceleration put in place by the coalition Government, but the investigation that is being considered by the Parliamentary and Health Service Ombudsman is not about those increases; it is purely on the narrow point about communication. The Government have made their position clear on that and set it out in the decision document placed in the House of Commons Library.
Safeguarding has been a key focus of the Work and Pensions Committee, so I was shocked to hear that my constituent Barbara Skedd received a letter to her executors, incorrectly notifying them of her death. This resulted in Barbara’s benefits being stopped, including the personal independence payment and all her pensions. My team have been working hard to get those reinstated. Can the Secretary of State outline what steps he is taking to ensure that those kinds of errors are minimised, and that the appropriate package of support is put in place so that when errors do occur, they are dealt with quickly?
I thank my hon. Friend for raising what is an incredibly important case to highlight. I appreciate that it will have been a deeply distressing experience for her constituent and I apologise for that. I can confirm that all payments, thanks in part to my hon. Friend’s ministrations, have now been fully restored and any arrears owed have been issued. Given the seriousness of the investigation, the case remains under active consideration so that we can look into the circumstances that allowed it to arise and ensure that nothing like it happens again.