Jobseeker's Allowance

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 19 October 2009.

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Photo of Anne McIntosh Anne McIntosh Shadow Minister (Environment, Food and Rural Affairs) 2:30, 19 October 2009

How many people were receiving jobseeker's allowance in Vale of York constituency on the latest date for which figures are available.

Photo of Jonathan R Shaw Jonathan R Shaw Minister of State (Disabled People), Regional Affairs, Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions

At September 2009, there were 1,186 jobseeker's allowance claimants in the Vale of York constituency. In September, 285 went on to JSA, but I am sure that the hon. Lady will welcome the fact that 315 people came off it.

Photo of Anne McIntosh Anne McIntosh Shadow Minister (Environment, Food and Rural Affairs)

Does the Minister accept that this is a record number of unemployed in the Vale of York, particularly in the 18 to 24 years category? May I remind him that when the Conservatives left government in 1997, youth unemployment was falling? He will have to fight an election on rising youth unemployment-what is he going to do to solve it?

Photo of Jonathan R Shaw Jonathan R Shaw Minister of State (Disabled People), Regional Affairs, Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions

I think the hon. Lady welcomed the fall in the September unemployment figures in her constituency. As I have said, the off-flow was 315 and the on-flow was 285, and I think that 315 is more than 285. I hope that she will welcome the future jobs fund in her area. The Yorkshire and Humberside tranche has £19 million to support young people in her area, helping them to get jobs. It would be a blank sheet of paper when it came to the Tory policy.

Photo of Anne McIntosh Anne McIntosh Shadow Minister (Environment, Food and Rural Affairs)

On a point of order, Mr. Speaker. Owing to that wholly unsatisfactory answer, I would like to apply for an Adjournment debate.

Photo of John Bercow John Bercow Chair, Members Estimate Committee, Speaker of the House of Commons, Chair, Speaker's Committee on the Electoral Commission, Speaker of the House of Commons, Chair, Members Estimate Committee, Chair, Speaker's Committee on the Electoral Commission

The hon. Lady and the House will be aware that as a consequence of that point of order being raised, any further exchanges on this question are immediately brought to an end. They cannot happen, so we move on to the next question.

Photo of Jim Cunningham Jim Cunningham Labour, Coventry South

How many people in receipt of jobseeker's allowance subsequently entered employment in the most recent quarter for which figures are available.

Photo of Jim Knight Jim Knight Minister of State (the South West), Regional Affairs, Minister of State (the South West), Department for Work and Pensions, Minister of State (Regional Affairs) (South West), The Minister of State, Department for Work and Pensions

In the quarter to September 2009, about 1 million people left jobseeker's allowance. We do not know exactly how many moved into work because there is no requirement for people to tell us, and it would not be cost-effective to use staff time to follow up every case.

Photo of Jim Cunningham Jim Cunningham Labour, Coventry South

I appreciate that the Minister has to be cost-effective, but can he give us some idea of how many people remain on JSA and for how long, and what happens to them afterward?

Photo of Jim Knight Jim Knight Minister of State (the South West), Regional Affairs, Minister of State (the South West), Department for Work and Pensions, Minister of State (Regional Affairs) (South West), The Minister of State, Department for Work and Pensions

About 50 per cent. of people leave jobseeker's allowance within three months, about 70 per cent. within six months and more than 85 per cent. within 12 months. Naturally, the vast majority of those are getting into work. There is still plenty more to be done on unemployment, but this party will keep up the investment that has been successful so far in minimising unemployment levels during this recession.

Photo of Alistair Burt Alistair Burt Opposition Whip (Commons), Deputy Chair, Conservative Party

Unemployment in my constituency has risen by more than 100 per cent. in a year and by some 80 per cent. since 1997. What figure is the Minister's Department contemplating as the peak of unemployment in this country, and when does it expect that to happen?

Photo of Jim Knight Jim Knight Minister of State (the South West), Regional Affairs, Minister of State (the South West), Department for Work and Pensions, Minister of State (Regional Affairs) (South West), The Minister of State, Department for Work and Pensions

As I am sure the hon. Gentleman knows from his previous work in my Department, we do not make our own unemployment forecasts, but it is interesting to note that the independent forecasters have been downgrading their predictions. I read of one this morning predicting that it would peak at 2.7 million. Meanwhile, forecasters such as Professor Blanchflower are saying that unemployment under the hon. Gentleman's party, with the policies advocated by the shadow Chancellor, would mean unemployment rising to 5 million.

Photo of David Taylor David Taylor Labour, North West Leicestershire

Are we keeping jobseeker's allowance, which is just £64.30 a week, at very low levels to encourage people to enter the workplace? If it had kept pace with earnings since 1980, it would be worth over £100, and if the link had been reintroduced in 1997 it would have been £75. Will he encourage the Chancellor in his pre-Budget report to re-link it to earnings, as the TUC, all the poverty organisations and early-day motion 543 are urging?

Photo of Jim Knight Jim Knight Minister of State (the South West), Regional Affairs, Minister of State (the South West), Department for Work and Pensions, Minister of State (Regional Affairs) (South West), The Minister of State, Department for Work and Pensions

I always listen carefully to my hon. Friend, as a critical friend, and I am sure the Chancellor will also be listening. It is important when considering JSA rates to consider also the entitlement to other benefits that go with it, such as housing and council tax benefit, so it would be untrue to say that that is the only money people have to live off.

Photo of Angela Watkinson Angela Watkinson Opposition Whip (Commons)

Among the jobless in my constituency is a significant number of newly unemployed professionals who have a very long-term record of paying tax and national insurance contributions, and who find that the help available to them is minimal. What more will the Minister do under the newly unemployed professionals scheme, and how many people in this category have been assisted in my constituency?

Photo of Jim Knight Jim Knight Minister of State (the South West), Regional Affairs, Minister of State (the South West), Department for Work and Pensions, Minister of State (Regional Affairs) (South West), The Minister of State, Department for Work and Pensions

We will continue to look at what we need to do for the executive unemployed. As the hon. Lady knows, from day one of unemployment, they have the opportunity for referral to an executive recruitment agency to assist them with job-seeking skills and getting them back into work. In September, 408 people flowed off jobseeker's allowance but 393 flowed on, so the numbers actually fell in her constituency last month; but I cannot tell her how many of those were at the executive end.

Photo of Steve Webb Steve Webb Shadow Secretary of State for Work and Pensions

Jobseeker's allowance is one of those benefits whereby when the Department has overpaid because of official error, it has written to people to try to claw the money back. That process has been ruled unlawful, so can the Minister tell us what the Department's practice will be in the future and whether it will be refunding money that has been unlawfully reclaimed from claimants?

Photo of Jim Knight Jim Knight Minister of State (the South West), Regional Affairs, Minister of State (the South West), Department for Work and Pensions, Minister of State (Regional Affairs) (South West), The Minister of State, Department for Work and Pensions

I am sorry to give the hon. Gentleman a dull answer-that is territory with which he is very familiar-by telling him that we are considering the judgment in that case.

Photo of James Clappison James Clappison Shadow Spokesperson (Work and Pensions)

Will it not have been depressing for a newly unemployed person to have heard the Secretary of State's response in today's exchanges? Her first response to the unemployment crisis is to reach for the history books and rewrite the statistics from the 1990s. May I take the Minister for Employment and Welfare Reform back to the question that his colleague failed to answer about the young person's guarantee? Does not that guarantee take effect at 10 months-his policy and her policy is for 10 months-not 12 months, as she seems to think? [Interruption.] Is it not far too long for a young person to have to wait until they have been out of work for 10 months before they get the help they need? Would it not be far more appropriate for a young person to receive specialised individual help after six months?

Photo of Jim Knight Jim Knight Minister of State (the South West), Regional Affairs, Minister of State (the South West), Department for Work and Pensions, Minister of State (Regional Affairs) (South West), The Minister of State, Department for Work and Pensions

The hon. Gentleman will know that a range of things are available to people from day one, such as basic skills training and referral to experts in respect of CV writing and so on, and that the young person's guarantee comes into force at 12 months. The future jobs fund, which his party opposes, comes into play at 10 months-so, of course, the Secretary of State was right. He should know that the Tories are the party of unemployment; in this recession, they oppose measures that the International Labour Organisation says saved between 7 million and 11 million jobs worldwide-500,000 in this country-and they are proposing measures that would put the level of unemployment up to 5 million. Time and again the Conservatives have moved people off unemployment and on to incapacity payments-we are reversing that.