Jobseeker's Allowance

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 11 May 2009.

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Photo of Andrew Robathan Andrew Robathan Opposition Deputy Chief Whip (Commons) 2:30, 11 May 2009

What his most recent estimate is of the (a) number of claimants of and (b) percentage of the work force claiming jobseeker's allowance in (i) Blaby Constituency and (ii) the UK.

Photo of Tony McNulty Tony McNulty Minister of State (Employment and Welfare Reform; Minister for London), Department for Work and Pensions

In March 2009, there were 1,662 jobseeker's allowance claimants in Blaby Constituency and 1,523,482 such claimants in the UK. Those figures represent 2.7 per cent. and 4 per cent. of the working-age population respectively.

Photo of Andrew Robathan Andrew Robathan Opposition Deputy Chief Whip (Commons)

Behind those statistics can lie personal tragedy—not only for the person who has lost his or her job, but for their immediate family. We all recognise that. I understand that new statistics are to come out this week. Can the Minister estimate what the next monthly rise in unemployment will be, and what he expects the unemployment figure to be on 1 April next year, which will probably be just before the General Election?

Photo of Tony McNulty Tony McNulty Minister of State (Employment and Welfare Reform; Minister for London), Department for Work and Pensions

The hon. Gentleman will know that the statistics are owned by the Office for National Statistics; it is not for a Government Minister or anybody else to speculate before their arrival on Wednesday at 9.30.

Photo of John Mann John Mann Labour, Bassetlaw

Does the Minister have any estimate of how many of the figures for the UK relate to Eddie Stobart Ltd? That company has been abusing the TUPE legislation across the country to make large numbers of people redundant in small groups. It has failed to consult properly or pay for proper consultancy, including in my Constituency.

Photo of Tony McNulty Tony McNulty Minister of State (Employment and Welfare Reform; Minister for London), Department for Work and Pensions

I understand my hon. Friend's point, but I do not have to hand the figures to which he alluded at the start of his question.

Photo of Peter Bottomley Peter Bottomley Conservative, Worthing West

How many constituencies now have a higher number of people out of work and claiming benefit than they did in February 1997?

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Wise Question from a Honourable wise MP and Friend

Submitted by Solomon, OluSeyi Adeleye

Photo of Tony McNulty Tony McNulty Minister of State (Employment and Welfare Reform; Minister for London), Department for Work and Pensions

Again—an interesting point, and a fair one. The House of Commons Library issues such data regularly. I do not have them about my person, but I will make sure that the hon. Gentleman gets a copy of the very latest after Wednesday's figures.

Photo of Theresa May Theresa May Shadow Minister (Women), Shadow Secretary of State for Work and Pensions

In his response to my hon. Friend Mr. Robathan, the Minister refused to speculate about this week's unemployment figures. Today, the Chartered Institute of Personnel and Development has said that the labour market will deteriorate further in the next 12 months and that unemployment will inevitably rise to more than 3 million by spring next year. Does the Minister agree?

Photo of Tony McNulty Tony McNulty Minister of State (Employment and Welfare Reform; Minister for London), Department for Work and Pensions

As the right hon. Lady will know, under the established statistics arrangements it is not my place to speculate about Wednesday's figures. The CIPD always brings out its forecast at around this time. I know one thing for certain: unless the right hon. Lady signs up in total to the nearly £5 billion of extra support that we are putting into Jobcentre Plus and assorted other employment interventions, unemployment will be a lot higher than it is otherwise likely to be.

Photo of Theresa May Theresa May Shadow Minister (Women), Shadow Secretary of State for Work and Pensions

I suggest that the Minister speaks to his Treasury colleagues; the figures that they put in the Budget—in the Red Book—suggest that unemployment will reach more than 3 million in 2010.

The Minister talks about the steps taken by the Government. The economy has not been growing for a year, yet most of the Government's measures to help businesses are only just coming into operation. Unemployment has been growing for well over a year, yet contracts for the flexible new deal have been postponed and the guarantee for young people under the future jobs fund will not come into operation until next January. Today the CIPD says that 40 per cent. of organisations have made contingency plans to make more redundancies over the next 12 months. The Government continuously claimed that Britain was well placed to weather the recession. Are we not now paying for their complacency in lost jobs?

Photo of Tony McNulty Tony McNulty Minister of State (Employment and Welfare Reform; Minister for London), Department for Work and Pensions

Quite the opposite. It has been estimated that many of the macroeconomic interventions made over the past year have saved the best part of half a million jobs. The right hon. Lady is entirely wrong to suggest that the flexible new deal has been postponed in any way, shape or form. The Budget put more money into the flexible new deal, rather than otherwise. I repeat: none of these things would happen under her Government, because she cannot commit to the extra £5 billion that is put in through the rapid response service, at pre-redundancy stage, all the way through to what we are doing for people at 12 months. She should listen to her Conservative colleague, the leader of Bradford council, Margaret Eaton, who welcomed the jobs guarantee fulsomely, to the point of embarrassment. I welcome that. I hope that the right hon. Lady's local council, as well as that of every other hon. Member, will be bidding for the future jobs fund and the guarantee.

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