HC Deb 25 November 2002 vol 395 cc6-8
4. Mr. Eric Martlew (Carlisle)

What assessment he has made of the most recent employment statistics. [81272]

The Secretary of State for Work and Pensions (Mr. Andrew Smith)

The employment level is holding up well, given the world economic slowdown. We have record numbers of people in jobs thanks to economic policies for stability and labour market policies that keep people engaged with the job market, whatever the stage of the economic cycle.

Mr. Martlew

Will the Secretary of State join me in congratulating those at the jobcentre in my constituency who in the past five years have seen unemployment drop dramatically, especially youth unemployment, which has dropped by more than 40 per cent.? But does he acknowledge that, at present, many people—not just in Carlisle, but throughout the country—who wish to work are on incapacity benefit? Will he outline the Government's proposals to help those people and support them back into work?

Mr. Smith

I join my hon. Friend in congratulating Jobcentre Plus staff and all the associated partners on the good work that they are doing in Carlisle. The number of young people unemployed for more than six months has fallen by 70 per cent. or more—a great tribute to the efforts of all concerned. In relation to incapacity benefit, I announced the consultation document last week, which will suggest a more intensive programme of interviews and other support for people going on to the benefit in the proposed pilot areas. We will introduce groundbreaking rehabilitation collaborative work with the national health service and a new £40 a week back-to-work credit in those pilot areas for the first year of employment. My hon. Friend is right: 90 per cent. of those coming on to incapacity benefit expect to get back into jobs. Those proposals will help them to do just that.

Ann Winterton (Congleton)

Is the Minister aware of the growing number of white-collared unemployed who do not show in the statistics because they do not as yet qualify for benefits? What assessment has his Department made of that problem?

Mr. Smith

White-collar employees qualify for benefit on the same basis as anyone else, and the full array of programmes to help them—the new deals and Jobcentre Plus—are at their disposal, as well as the action teams for jobs. We also offer extra help through the new deal ambition initiatives, one of which includes collaboration with the IT industry, which would help precisely the sort of unemployed people to whom the hon. Lady has referred.

Ross Cranston (Dudley, North)

I thank my right hon. Friend and the Government for the low unemployment rate in this country, which is lower than that in most other comparable European countries. There is, however, a small number of long-term unemployed. What steps will be taken to change the new deal 25 plus to help those people into work?

Mr. Smith

We are refining and improving the new deals and our wider array of Jobcentre Plus programmes all the time. As work-focused interviews are rolled out with Jobcentre Plus, they are making a big difference, and the extra discretionary help that we are now able to put in the hands of the front-line advisers is producing good results in helping sometimes very long-term unemployed people who face considerable barriers to employment back in to jobs. As my hon. and learned Friend says, we are making good progress: thanks to initiatives of that sort, 100,000 more people are in jobs than were at the beginning of this year.

Mr. Jonathan Djanogly (Huntingdon)

In the last quarter, what percentage of new jobs were created in the public sector?

Mr. Smith

A significant proportion, as we fulfil our promises to invest in the national health service, education and rebuilding the nation's transport infrastructure. We make no apologies for keeping our promises to invest in public services and public infrastructure—if the Conservatives had done some of that when they were in office, we would not have had the mess that we have had to deal with.