Peter Hain, UK Sec. of State for Work & Pensions

Peter Hain focused on the UK Government's recently published 'In work, better off' consultation paper and its proposals to help people back into sustainable employment, but also took questions on other issues including pensions.

Webchat with Peter Hain, UK Secretary of State for Work and Pensions

Transcript:

Moderator says: Peter Hain, Secretary of State for Work and Pensions, will be here on Tuesday 9 October at 10:40 BST to answer your questions on pensions, employment, and welfare. Log in to post your questions to the minister.

Moderator says: Welcome to today's webchat. We'll be starting at 10:40 BST so there's still time to get your questions in.

Peter says: Good morning everybody. Great to be with you and looking forward to your questions on my vital task of creating full employment in Britain, justice for pensioners and tackling child poverty.

Richard Williams: What measures will you use to evaluate whether the success of the policy changes proposed in this Green Paper?

Peter replies: We have been very successful as a government in creating 2.7 million new jobs since we came to power in 1997 - more now than ever berfore in Britain's history - but we now need to tackle the great number still on out-of-work benefits including disabled people, lone parents and older workers, many of whom could and should work, filling the 660,000 job vacancies there are in Britain today.

So the Green Paper's success will be judged by the extent to which we can reduce the numbers on benefits significantly below the current total of 4.5 million.

Gail Paardekooper: As a 40 year old, single female, with a mortgage to pay and recently graduated from university, i have found much difficulty in even getting interviews from applications (so far 0 interviews from 40+ applications) let alone obtaining work. What can your 'steps to full employment' do for someone like me or for other's in in a similar situation?

Peter replies: Gail, I suggest you go to see an adviser in your local Jobcentre Plus (new window) to get advice and maybe the opportunity of going on a short course to prepare you for job interviews and work. These have proved to be hugely successful for people who have not experienced job interviews for a while. There are plenty of jobs out there and somebody skilled like you ought to have the chance to get one of them. Do let me know how you get on (new window).

anthony white: If someone refuses a reasonable job offer what steps will you take?

Peter replies: Because there are so many job vacancies right across the country we expect people on benefits who have been offered a job and given support and training where appropriate, to take it. Whilst we don't wish to impose sanctions (becasue our whole objective is to enable people to be better off in work which they almost always are), those who deliberately refuse to co-operate in getting back to work, will have their benefits reduced. This is only fair.

J Douglas: Given the issues facing an individual moving from a long period of unemployment presents many challenges for them as well prospective employers. A key factor in the "in work, better off" consultation is the support provided to individuals and employers.

The benchmark for this should be innovative employment programmes introduced under the Welfare to work programmes. Given the perception surrounding the unemployed, if individuals are not given the skills to match the employer's requirements then both sides expectations are not met and we're back to the beginning!

What training will be given to those organisations signing up for the Local Employment Partnerships?
The consultation should also look at customised training programmes designed to match employers requirements and allow an individual to identify a sustainable progression route. This will also assist the employer in staff retention.

Peter replies: Yes, training and preparation for work will be part of Local Employment Partnerships (new window) where employers agree to offer those coming off benefits a job interview, followed, if successful, by their own induction training for the post applied for. There is a lot of enthusiasm amongst employers and Jobcentre Plus makes connections with them to make sure that people are ready for the jobs they are offering.

Karen: why doesnt the jobcentre have c.v's on file so they can match people's skills to jobs
employers should be encouraged to employ older people,
i'm over 50 and have been trying to find employment for over 12 months since being made redundant.

Peter replies: Jobcentre Plus will offer you the chance of a course to help you prepare your CV and give you advice on getting into work, advising you on which jobs would be suitable. As it happens, more than half the new jobs created in the economy this past year, have been those aged 50 and over. I am really keen to see people like you in this age group succeed because you have so much to offer in terms of maturity, experience and skills.

Sarah Simpson: I understand the principles behind in work and better off and the moves towards full employment, as a voluntary sector employer what i am concerned about is actually getting the staff. at the moment in some areas there are 2000 vacancies (aberdeen)

Peter replies: Yes I agree. There is still a shortage of skills like the ones you clearly need but your local Jobcentre Plus could help you identify somebody, maybe on benefits, who could be the person you want even if they need extra training because the voluntary sector is so vital to us all.

Maxine Hill: In spite of major Government investment in recent years affordable, high-quality childcare for all is still some way off. Research shows that childcare use is lower among low-income families, lone parents, parents with three or more children and for older children. These families are also more likely to struggle to pay for childcare. There is also a dearth of childcare provision for older children that extended schools will not address. How will the proposals in the Welfare Reform Green Paper be workable without more affordable, quality childcare?

Peter replies: It is absolutely crucial that affordable childcare is available, especially for lone parents, but generally for all parents who wish to work. In England we are rolling out 8.00am to 6.00pm "wraparound" childcare with pre-breakfast clubs and after-school clubs in all local schools by 2010. The childcare element of working tax credits (new window) will also help pay for quality childcare that suits parents and children.

Nancy Wanjiru: I completed a BA(Hons) in Social Work this year and I'm still looking for work. I'm a single parent with two children and most of my friends doing full time work always say that those receiving benefits are better off than those at work. Is this true? Starting salary for most social workers is between £25000 and £27,5000.

Peter replies: It is very unusual for anybody to be worse off in work which also offers a whole host of other benefits. People in work tend to be healthier and have a much better quality of life, more friends and are far less likely to be in poverty than if they are on benefits. I am sure this will apply in your case as well, especially given the need for social workers who do such important jobs. You can visit your local Jobcentre Plus office for a "better off" calculation.

J Glen: How can you ever hope to achieve full employment? Until you have the courage to cut the benefits of those who CHOOSE not to work, you will get nowhere. Before you tackle this problem area, you must tackle the 9often accurate) notion that being on benefit can be worth more than working.

Peter replies: Just cutting benefits would plunge more people into poverty which would be unfair and unjust. But as I said earlier in answering Anthony White, benefits will be reduced for people who wilfully refuse to co-operate in getting a job. There are very few circumstances (almost always people with large numbers of children and low skills) in which people would be worse off in work.

Mark: Given that we still have a percentage of unemployed people in this country, would it not make sense for them to "earn" part of there benefit by actually putting something back into the community? There are plenty of jobs that need doing and I'm sure I do not need to supply an exhaustive list. If individuals claiming unemployment benefit spent one or two days a week carrying out such tasks, not only would they be helping the community and getting into a habit of working but would also have plenty of time to look for alternative employment.

Peter replies: I take your point Mark and that is why we have proposed that after two years on benefits, during which people have been prepared for work, they will be required to undertake some form of community activity to increase their skills and to put something back into the community.

Stephanie: The Welfare Reform Paper states 1 million people are to be supported back to work from Incapacity Benefit, so why has the Lower Disregard Level not risen from 2001 from £20 in line with inflation and the minimum wage? I am running the giveme5 campaign to encourage the government to raise this Lower Level by £5 and thereafter in line with inflation to stop this effective incentive being reduced further. This payment is paid by the employer and therefore at no cost to the government and enables people to have a stepping stone back to work.

Peter replies: I understand the point you are making. But we have got to get the balance between work incentives and benefits right. We can't have a situation where the disregard acts as a blockage to taking a job. Nevertheless we will continuously keep this under review. We are also introducing a return to work credit of £40 per week for people on incapacity benefit who move into work.

Nick Jones: The stated aim of proposals within welfare reform is to get 1 million of the people currently on Incapacity Benefit in to work. As a welfare rights worker assisting clients with visual impairments, I come across a lot of clients who woud like to try and work, but are concerned about their ability to sustain a job because of their health problems. For many this situation is unlikely to ever change, because they have their health problem for life. They therferoe requiere asystem that is felxible enough to allow them to move from benefit, into work, and back again, on repeat occasions, without incurring penaly and without too much bureaucracy. The current system does at least address this problem in part wiht the linking rules, but will ESA contain provision for people in such circumstances ? I consider that it is essential if the government genuinely wants to attain a figure of 80% employment.

Peter replies: Yes the Employment and Support Allowance (ESA) (new window) will definitely support people in such circumstances. I have myself seen very exciting work done by specialist employment providers like the Shaw Trust enabling blind or partially blind individuals to work.

Chris White: The new Employment and Support Allowance is set to be introduced in April 2008. My understanding is that current recipients of incapacity benefits will not immediately be moved over to the new benefit. Can the Secretary of State give an indication of what the timetable is likely to be for transporting people over to ESA?

Peter replies: The ESA will be applied to new incapacity benefit claimaints to try and stop people falling on to long-term benefits. The evidence is that if somebody stays on incapacity benefit for longer than a year, they will remain on benefit for an average of eight years. If they stay on for more than two years they are more likely to die on incapacity benefit than get a job. We are also tackling this problem through our very successful Pathways To Work (new window) project which is being rolled out nationally after getting many thousands off incapacity benefit into work in pilot schemes which have given people, who never thought they would work again, the chance to do so. As resources allow, we will strengthen this scheme, requiring existing IB customers to undertake some form of activity that will improve their chances of getting a job in order to qualify for the full rate of benefit.

Alexander Gordon: Dear Mr Hain, I'm a Disabled Person and i'm on a works pension since 1999, for about 2 years I tried to get myself a job through jobcentre etc, I was told when I went for a job- Lollipop man that I couldn't do the job etc that was in 200. So my question is what will happen to the Genuine Disabled People who are on benefits like myself ? will they still have to look for work or not?

Peter replies: Many disabled people can work and be prepared for this with the kind of intensive help and expertise our programmes now provide. There are more disabled people working successfully than ever before in Britain's history and of course they have more protection in employment than ever before. Since 2003 the number of people on incapacity benefit has fallen by 120,000 as a result of our successful policies. Obviously people who are so seriously disabled that they can't work will be supported on benefits but I want to see many more disabled people taking advantage of the tremendous opportunities out there and be helped into a job which will make them much better off.

S Mckie: Minister, in the quest for full employment why did your department feel it would be right to close down 43 Remploy factories? This in the full knowledge that though you promise no compulsory redundancies, you and your department know that at some stage disabled people forced into working in mainstream employment, would at the least find it very difficult and, probably in a short space of time, impossible to remain in that employment. This either due to employers getting sick of the time and patience they would have to spend on these employees or the time these employees would need off work to get healthcare. Would not you and this Labour Government be condemning these very people to a life on benefits?

Peter replies: I have worked with my local Remploy (new window) factory for 17 years as an MP and I will ensure that Remploy has a positive future with justice for all Remploy workers. However, everybody in Remploy agrees that it has to change and I have asked the former trade union officer, Roger Poole, to come in and try to negotiate a successful solution to the problem of Remploy's budget, shooting massively over-target. I have also ensured that there will continue to be a subsidy from taxpayers to Remploy of £111 million per year over the next five years - equivalent to £20,000 for each of Remploys current 5,000 workers. Additionally every Remploy worker will have their pensions and salaries protected whatever the detail of what I hope will be a final agreement between unions and management as a result of the Roger Poole-led negotiations. This government has done more to help disabled workers than ever in Britain's history and will continue to do so.

Marian Hogan: I am now 61 and working full time, recently have had some health problems that will not now get any better. I have not claimed any benefits and would rather work than retire, BUT can I work part-time and still claim a pension, I have a career that is demanding(I have closed my own recruitment agency and now work for someone else0 also Regional Director of the REC unpaid) so you can see although I do not earn a great amount would like to know where i stand. Thank you for your time.

Peter replies: Yes, depending of course on your particular pension scheme entitlements, you can certainly continue to work and claim a pension as many older workers do.

More information from the Pension Service (new window)

al: im a student currently studying my a-levels, how do you feel my stakes are at receiving a state pension after i retire?

Peter replies: You will be entitled to an entirely new pension scheme which we have called Personal Accounts (new window) under which employers will have to make a contribution and employees will automatically be enrolled and required to save through a pension. Also, we are linking the state retirement pension increases back to earnings after the last government abolished this many years ago.

Phil Wilson: What will be done to stop employment agencies demanding that agency workers opt out of the new personal pensions system before placing them in employment.

Peter replies: We are at this very moment preparing the legislation to be introduced in Parliament to ensure that there are no abuses such as this.

Richard Nicholl: Mr Hain. The government is introducing the new Personal Accounts pensions, due to commence in 2012. This is not regulated by the FSA, so the only route of redress in the event of a complaint is via the Parliamentary Ombudsman. Given your government's refusal to accept the Ombudsman's report 'Trusting in the Penisons' promise and to accept her recommendations to fully compensate the 125,000 victims of previous government adminstration with regard to pensions protection, why should anyone trust any pension that is regulated by government?

Peter replies: First of all we are intending to resolve the outstanding issues over the 125,000 people who were so scandalously robbed of their pensions and when we get the independent report from Andy Young later this year the government will be making an announcement. We have already contributed over £8 billion of taxpayers money to help with this and have promised more, once the report is received. So together with our new Pension Protection Fund (new window) which will stop such scandals in the future, we have done more than any government in our country's history to protect pensioners.

Barry Digwood: The current Govt offer to people who lost all/part of their Pensions is a disgrace, it falls well short of the PPF offer.
My children and other friends/family have lost all faith in saving for a pension when a Govt has let people down so badly

Peter replies: As I said to Richard Nicholl, we have done more to help people in your dreadful predicament than any government ever and I am determined to achieve justice when we finalise what we are able to do later this year. Far from letting people down I think you will see that we have given you the help needed.

Malcolm Strang: Hi there in your preamble you made a statement, " Justice for pensioners". can you then please tell me why my DSS pension is included in my income for income tax purposes? I do not want a pension increae, only a reduction in the tax that i pay , which goes to pay for civil servant pensions and benifit recipients,
In my day of the dole it was three offers of a job, take one or lose your dole money, why c an't you implement something of that ilk today
m strang

Peter replies: Obviously everybody who qualifies for taxes because of their income - including from their pension - needs to pay. But you may want to check out whether you are paying the correct level of taxation (new window) and we have done a lot to ensure people on low incomes get a fairer deal. As I said earlier there will be benefit sanctions for people who deliberately refuse to co-operate in taking a job.

Sean O'Callaghan: Peter...in practical terms, how do we get people off benefit and into work...do we need to really need to "think the unthinkable" on welfare as was discussed back in 1997?

Peter replies: We have got to be much more imaginative in doing this. That is why we are signing up employers by the day to join Local Employment Partnerships to take people off benefits and into jobs. We are also giving far more targeted, expert and specialist support to enable those on longer term benefits to get the assistance and training they need to get jobs. These have proved very successful and we will do much more within my department's budget allocation.

Len Gibbs: Why doesn't the government learn from the experiences of the USA and introduce time-limited benefit and an element of workfair into the benefits system?

Also why has the government opted for large scale contracts for regionally based projects when the evidence indicates that engaging with the third sector is more effective?

Peter replies: We have looked closely at the USA and indeed I am going to visit there shortly. But the truth is virtually every other country in the world, including America, looks enviously at our success in getting people off welfare and into work. I specifically haven't opted for large-scale regional prime contractors becauseI think that smaller private providers and voluntary sector groups have an excellent record in delivering more jobs.

Al: how do you intend on tackling child poverty throughout britain?
does your South African background have any influence on the way you work and the policies you make towards child poverty in particular?

Peter replies: Yes my background has made me passionate about fighting poverty and achieving social justice so all my policies are geared to getting more children, pensioners and others out of poverty and into a better life. Our Green Paper on full employment (new window) is also a manifesto for tackling poverty, especially for children.

Dani: what are you doing this friday peter?

Peter replies: Thanks for asking. I am in my Neath constituency where I conduct regular surgeries and represent people but I am always on the end of a mobile phone, blackberry or email to continue my job as Secretary of State for Work and Pensions and Secretary of State for Wales. My family complains that I never stop working but doing this job is a real privilege.

Peter says: Sorry I have to go now to my next appointment but thanks very much for taking the trouble to ask these questions and I hope you feel I have tried to answer as many as I could. You are always welcome to respond to the consultation on my Green Paper In Work Better Off: Next Steps to Full Employment (new window). I would welcome your views before the end of the month.

Moderator says: Thanks for all your questions.

Keep your eye on pm.gov.uk for more ministerial webchats over the next few weeks.

ENDS

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