Whether it is at Kia, Alstom or others, apprentices in Derby are thriving at our large manufacturing companies, but we also want our small and medium sized businesses to take on more apprentices.
Since the new year we have had the first expressions of interest from firms that want to participate in the youth guarantee scheme. We have announced our intention to change benefit entitlement for people in mental health hospitals who have been convicted of serious violent crimes. We have announced reforms to the disability confident scheme to encourage more employers to make their workplaces suitable for disabled employees, and we have introduced a Bill to lift the two child limit, which will have its Second Reading in the House next week.
Whether it is at Kia, Alstom or others, apprentices in Derby are thriving at our large manufacturing companies, but we also want our small and medium sized businesses to take on more apprentices. Will the Government set out what is being done to help smaller businesses to take on more apprentices?
I congratulate my hon. Friend and everyone involved in Team Derby on their excellent training and employment record. Around 40% of all apprenticeship starts are in small and medium sized employers and they will benefit from the £725 million in funding that we announced at the Budget, which includes fully funding SME apprenticeships for eligible people aged under 25. As he will be aware, employers are not required to pay anything towards employee national insurance for those apprenticeships.
I call the shadow Secretary of State.
Under this Labour Government the number of people on benefits is soaring, with nearly a million young people not in education, employment or training, and over 700,000 university graduates are now out of work and on benefits. Many young people are putting in hundreds of job applications and getting hundreds of rejections. This Government are killing their jobs and their dreams by taxing job creating businesses into oblivion. What does the Secretary of State have to say to those young people?
What I have to say to those young people is that the rise in graduate inactivity happened under the last Government. Economic inactivity is down by 450,000 since the last election. There is a critical problem—the hon. Lady is right—in NEET numbers, which have been rising for four years. The difference is that we are doing something about that through the youth guarantee, which has £820 million behind it, and by changing her record on apprenticeships, which saw a 40% fall in youth apprenticeship starts over 10 years.
Young people hearing that answer will not be reassured, but that is no surprise—what else can the Secretary of State say? The Prime Minister is too busy blocking rivals for his job, while a generation of young people pay the price for his weakness, and so are taxpayers, who are footing a ballooning benefits bill. Now is not the time for another review, scheme or slogan; what young people want is the chance to get a decent job and to get on in life. Surely he agrees that it is time to scrap the job killing red tape in the Employment Rights Bill and cut taxes for businesses, so that they can give young people the chance to get off welfare and into work.
People want to stand for my party, but people want to leave the hon. Lady’s, and they are doing that day by day. We want to give hope to young people. That is why we have put the youth guarantee in place and we are changing the apprenticeship system: she could have done those two things while she was in office, while the NEET numbers were rising year on year, but she utterly failed to do so.
I meet my colleagues in the Health and Social Care Department regularly, particularly because of the important work that the joint work and health directorate is doing to get people into work and to support people with health conditions in work, including those with chronic mental health conditions. Our employment advisers in talking therapies specifically target people with mental health conditions.
I call the Liberal Democrat spokesperson.
The Sayce review investigated the carers’ allowance scandal and identified that almost 87,000 carers were affected. The Government are planning to write off the debts of 26,000 carers, but does that mean that the Minister believes that 60,000 carers are guilty of fraud?
I think the hon. Gentleman would agree that Liz Sayce did a superb job. We commissioned her review straight after the general election, and we have accepted all but two of the recommendations that she made in her report. We are working through the detail of how to implement those recommendations, and we will set out the proposals and the details as soon as we are able to do so. We are also working with carer organisations on communications with the carers affected to ensure that they are right. I look forward to giving the hon. Gentleman more details as soon as they are available.
The youth guarantee scheme will be delivered across Great Britain. That includes the jobs guarantee scheme, which I mentioned earlier. From the spring, we will provide more than 1,000 fully subsidised jobs in six areas across the UK, including central and east Scotland, ahead of the national roll out, which will come later this year.
I am sorry to hear of the hon. Gentleman’s experience. We are in the most difficult part of the transition, as people who were previously on employment and support allowance move over to universal credit. We have introduced an enhanced support journey to try to simplify it, and I am keeping a very close eye on how it is going. If he sends me the details of that case, I will certainly look at them.
Let me congratulate my hon. Friend on the fantastic work that he has done in campaigning for the investments in and around his constituency. Major infrastructure investments such as Sizewell should be an opportunity for local employment and training and for increasing the skills of local people, and we want our youth guarantee and the changes we are making in the apprenticeship system to support those aims.
I am very sorry to hear about the case that the hon. Gentleman raises. If there is evidence of false claims made in applications, I would clearly be very grateful if he would share that information with me directly. I will be sure to come back on him—[Interruption.] I will come back to him on that to ensure that it is fully investigated. If we are coming back on anybody, it will hopefully be the gentleman to whom he has referred.
I pay tribute to my hon. Friend for the meeting that we had on this very subject just a few months ago and for raising the issue of how important it is to get people back into work. There are lots of good examples of GPs who are doing that around the country, and I look forward to seeing what more we can do to work with him and other GPs to ensure that we get as many people as possible back into work who are not in work at the moment due to ill health.
We are certainly addressing the backlog, but if the hon. Lady would like to send me the details of those two cases, I will certainly investigate.
My constituent Stephen Sherwood has complex needs and learning difficulties. He could not understand changes to universal credit, needed guidance that never came, and so lost financial support that he badly needed. Stephen and his mum, Nicola, rightly want to know whether the DWP involves people with complex needs and learning difficulties in the design of system changes, and whether the Government will do more to ensure that such people have these changes explained to them in ways that they can understand.
My hon. Friend raises a very good point. As I have said, the process of migration that we are going through is the most difficult part, as people move from employment and support allowance to universal credit. We have introduced an enhanced support journey to assist people such as my hon. Friend’s constituent who are going through this process, but I look forward to meeting him in a couple of weeks’ time to discuss lessons from this particular case.
It has been confirmed that those whose income is only the basic level of the basic state pension or the new state pension will not be required to pay tax next year, because the level of personal allowance has been set above the level of the new state pension. What the Chancellor said at the Budget was that in future years we will make sure that no pensioner will be required to fill in a self assessment form, or indeed a simple self assessment form, for any tax that is due because the new state pension level is above that of the personal allowance.
A constituent of mine disclosed full details of her change in circumstances to the Department, but although the Department admitted it was its mistake—it had received that information and had repeatedly failed to update its records—it still sent her a very threatening letter. Although I fully support the need to protect the public purse, would the appropriate Minister agree to meet me to discuss how the Department could improve its updating procedures, reduce the occurrence of overpayments, and treat claimants more considerately when they have received overpayments through no fault of their own?
I would be very happy to meet my hon. Friend for that discussion.
People who come to this country and make it their home are welcome to work and pay their taxes. However, Ministers may have seen reports over the weekend of foreign career criminals who have been spared prison now claiming universal credit. Taxpayers are going to be outraged by this fact, so what action will the Minister take to ensure that only people who are entitled to receive universal credit do so, and that career criminals do not?
The hon. Gentleman raises a very serious issue. Payment accuracy and ensuring that only those who are eligible to claim benefits do so are incredibly important for confidence in the system. I have not seen the specifics of the case to which he refers, but where we become aware that such errors have been made, we seek to claim that money back. We have taken further powers through the Public Authorities (Fraud, Error and Recovery) Act 2025 to take action against the sorts of serious and organised criminals he refers to, and I am pleased to say that that Act received Royal Assent last month.
What discussions has the Minister had on removing universal credit from convicted killers who are currently serving a sentence in a psychiatric hospital?
I have had a number of discussions, including with victims’ families. It is important to stress that if someone is sentenced to a psychiatric hospital, their care and maintenance is paid for by the state in any case. We therefore propose a change to the previous system that will stop the build up of—in some cases—large sums of money in continued benefit payments.
My constituent Andrew co founded Adzuna, a job search website built on artificial intelligence. Its research shows that existing AI tools could improve the DWP’s service and create 250,000 more jobs per year. However, it is reported that the new rebuild of the service is not going to include those AI tools. Can the Secretary of State give the House reassurance that we are going to incorporate those new tools into the rebuild of the service so that we get that employment boost?
The hon. Gentleman will forgive me if, for commercial reasons, I do not confirm that Adzuna’s specific tool or any other would be part of the work we are taking forward. I can tell him that we will be bringing forward a new AI tool in the coming months that will include not only “find a job” options, but CV support, interview training and various other cutting edge tools that will support people up and down the country into work, utilising the power of AI.
The UK shared prosperity fund currently supports about 20% of Renfrewshire council’s employability budget. Given that that funding is due to come to an end, can my right hon. Friend outline what steps he will take to support employability services in Renfrewshire going forward?
My hon. Friend will have heard me refer to the youth guarantee being a GB wide scheme, so it will help people in Scotland. She will agree with me when I point out that the Scottish Government have had the most generous financial settlement since devolution was introduced, and I would hope that some of that would go towards the kind of priority that she outlines.
My constituent has been trying for more than five months to get a response from the DWP about his UC claim. Having now taken up the case, I too am experiencing unacceptable delays—it is now 15 weeks and counting, when the supposed turnaround is 15 days. Can the Minister please say what action he is taking to ensure that the DWP responds to constituents and to MPs within reasonable timescales?
May I begin by apologising to the hon. Lady for the experience that she and her constituent have encountered? She will be pleased to know that I recently met our newly appointed complaints lead and the independent case examiner, who is raising concerns about the trends she is seeing. We are putting in place a range of interventions that take us forward in a positive way to improve our complaints handling process, and I will be happy to share more detail with her directly.
The Joseph Rowntree Foundation and the Trussell Trust are campaigning for an essentials guarantee that would ensure that benefits cover the necessities for living. Does the Minister agree that the welfare state should be a universal safety net, not a trapdoor?
I very much agree that the welfare state should be there to help people to change their circumstances, not just to keep them in their circumstances. I am pleased to report that we have now put in place the crisis and resilience fund, which will help people in the most desperate circumstances, and we have guaranteed its funding for the next three years.
My constituent Harry has a learning disability, and he is so brilliant that he has not one but two jobs. His mum, Helen, is his appointee, and she is not allowed to access his Access to Work paperwork online. This means she has to print out 24 bits of paper, get it manually signed and pay to post it. That is crackers in 2026. Will the Minister undertake to look at Harry’s case and ensure that appointees, such as Helen, do not find it too hard to access Access to Work, so that we can keep brilliant people like Harry in work?
The hon. Lady makes a good point, and it is one of the reasons we are reforming Access to Work. We consulted on reform in the Green Paper last year, and I think she is right that we need a less bureaucratic system for access, not least for appointees.
I wish you a speedy recovery, Mr Speaker—as I understand it, the other fellow came off much worse.
On the Isle of Wight, our NHS trust takes students who would otherwise have ended up NEET—not in education, employment or training—and puts them through a pre apprenticeship scheme that gives them not only the skills but, more importantly, the confidence needed to start an apprenticeship and then go into work. I encourage the Secretary of State to visit the Isle of Wight to see the great work that the trust does. Will he encourage other employers to do the same thing?
I will certainly visit the Isle of Wight if I can—diary permitting. The issue he raises about confidence is crucial. When I speak to our work coaches, time and again they say that building the confidence of young people to get out there, to apply for things and to go into new and unfamiliar circumstances is a critical part of their work.
My constituent Sam has been failed by the Child Maintenance Service. Her ex partner hid a load of his income. She knows that because the CMS sent her the evidence but then denied it. Any reference to onward referrals is denied, and she is stuck in the bureaucracy. This is an unacceptable situation. She says that by the time the back payment comes through for her children, she will be passing it straight through to her grandchildren. It is a total disgrace. Women should not be treated like this; they should not be subjected to this kind of failing bureaucracy. Will Ministers look into the matter and into Sam’s case?
I will have a look at the general issue, and if the hon. Member could share details of Sam’s case with me directly, I would be happy to look at it for him.