House of Commons Hansard Debates for 21 May 1990

Mr. Eggar : All EC member states have arrangements for enforcing minimum rates of pay in some or all sectors of their economies.

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TVEI

Mr. Pawsey : To ask the Secretary of State for Employment whether there are any plans to scale down the technical and vocational education initiative.

Mr. Nicholls : We are currently reviewing the timetable for entry of local education authorities into TVEI. The scale and long-term funding of the initiative remains the same.

Mr. McLeish : To ask the Secretary of State for Employment if, pursuant to the reply he gave to the hon. Member for Amber Valley (Mr. Oppenheim), Official Report, column 170 of 24 April, he will give the total estimated expenditure on TVEI in each of the years 1990-91 to 1997-98, inclusive, and for Scotland, England and Wales in both cash and real terms.

Mr. Eggar : As laid out in the public expenditure White Paper the Department plans to spend £134 million in 1990-91, £133 million in 1991-92 and £141 million in 1992-93 on TVEI.

The remaining balance of around £393 million will be spent between 1993-94 and 1997-98.

Liverpool

Mr. Parry : To ask the Secretary of State for Employment if he will make a statement on the Minister of State's recent official visit to Liverpool.

Mr. Eggar : I recently carried out a long-standing engagement to visit Liverpool, to see at first hand the Government's training schemes and initiatives for the long-term unemployed in operation. I paid a visit to a JIG (job interview guarantee scheme) pilot and was very impressed by the schemes being run by Post Office Counters Ltd.

This was followed by a visit to Monks Ferry Training Trust, a provider of employment training and youth training, where I had discussions with representatives of the local community.

Married Women

Sir Trevor Skeet : To ask the Secretary of State for Employment what information he has about the number of married women in the United Kingdom and regarding the number who undertake domestic duties in the home and have no paid employment.

Mr. Nicholls : Preliminary results from the labour force survey for spring 1989 show that there were in the United Kingdom, 11,241,000 married (or cohabiting) women of working age, 16-59 years old. Of these 3,903,000 had no paid employment, comprising 466,000 who were unemployed (using the international definition based on a four-week job search period) and 3,437,000 who were economically inactive. Among the latter group some 70 per cent. (an estimated 2,430,000 women) further reported that their main reason for not seeking work was that they were looking after the family or home.

Skill Centres

Mr. Cryer : To ask the Secretary of State for Employment how many copies of the information memorandum were issued by Deloitte Corporate Finance

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on the Skills Training Agency ; how many organisations tendered for the skill centres either in part or in whole ; and if he will make a statement.

Mr. Eggar [holding answer 15 May 1990] : Deloitte Corporate Finance issued more than 100 copies of the information memorandum about the Skills Training Agency (STA).

The Government were pleased with the number of expressions of interest received, which covered every unit in STA.

Mr. Cryer : To ask the Secretary of State for Employment how many people have been or will be redundant from the network of skill centres due to the sale of the centres to Astra Training Services and other companies ; and if he will make a statement.

Mr. Eggar [holding answer 15 May 1990] : I intend to close those parts of STA not included in the sale packages agreed with successful bidders and the staff in those parts will, as far as possible, be redeployed. I expect that there will be some redundancies among instructional and industrial grade staff, but the number is not yet known.

Staffing levels in the parts of STA which have been sold to the private sector are a matter for the new purchasers, but most purchasers have made it clear that they will need to restructure the businesses so as to secure commercial viability. I understand that one purchaser, Merseyside Education Training and Enterprise Ltd. (METEL), has declared redundancies with effect from 15 May.

Channel Tunnel

Mr. David Young : To ask the Secretary of State for Employment if he will make a statement on his meeting on 10 May with their employers about the deaths of workers on the channel tunnel project.

Mr. Nicholls [holding answer 15 May 1990] : I refer the hon. Member to the answer I gave on 15 May to the hon. Member for Coventry, South-East (Mr. Nellist), Official Report, columns. 403-4.

Action Credit

Ms. Primarolo : To ask the Secretary of State for Employment if he will list the changes made to the three action credit pilot schemes since their introduction.

Mr. Eggar [holding answer 18 May 1990] : The weekly earnings limit for participants has been raised from £43 to £75 to allow greater flexibility and the pilot has been extended for three months.

Ms. Primarolo : To ask the Secretary of State for Employment what the role of training and enterprise councils and the employment service will be in promoting and administering action credit ; and if he will make a statement.

Mr. Eggar [holding answer 18 May 1990] : When the action credit pilots have been completed and evaluated it will be for each training and enterprise council to decide whether they wish to operate such a scheme in their area. They will be responsible for administering any scheme and for negotiating locally with the employment service about its role.

Ms. Primarolo : To ask the Secretary of State for Employment when a statement will be made on whether

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action credit will be extended beyond its current pilot schemes ; and what are the criteria by which the success of these pilots is being judged.

Mr. Eggar [holding answer 18 May 1990] : The final evaluation report is due in November. The results will be made available to training and enterprise councils and it will be for them to decide whether to introduce schemes in their area.

The evaluation includes interview surveys of actual and potential participants and of employers.

Significant criteria for success will be the extent to which action credit is successful in helping ET leavers into full-time employment or self- employment, and in helping them to obtain a job reference.

Ms. Primarolo : To ask the Secretary of State for Employment if he will give a detailed account of the moneys his Department and the employment service have spent, and are projected to spend, in connection with the piloting of action credit.

Mr. Eggar [holding answer 18 May 1990] : To date expenditure on the pilot of action credit for those leaving employment training is £61,319.51. The projected total expenditure on administering and monitoring the pilots is £100,025. A further £24,725 is projected for the independent evaluation currently under way.

The cost to the employment service of market research into the feasibility of an action credit pilot targeted at those unemployed for 12 months or more is £35,466. The employment service has no immediate plans to spend further money on action credit.

Ms. Primarolo : To ask the Secretary of State for Employment if he will estimate the percentage and number of action credit participants who on leaving the scheme have (i) found employment and received the bonus,(ii) have signed off without finding permanent work and received the bonus and (iii) have continued to claim income support.

Mr. Eggar [holding answer 18 May 1990] : No. This information will be available after the action credit pilot is completed at the end of August.

Employment Training

Mr. McLeish : To ask the Secretary of State for Employment what representations he has received on the possibility of the Spastics Society withdrawing from employment training as a result of cuts in funding ; and if he will make a statement.

Mr. Nicholls [holding answer 18 May 1990] : The Spastics Society informed my Department on 2 May of its intention to withdraw from employment training with effect from the end of May 1990. Arrangements are being made to place its trainees with other providers.

Youth Training

Mr. McLeish : To ask the Secretary of State for Employment what representations he has received (a) on the possible closure of the major provider of special needs youth training in the Tower Hamlets and Newham area and (b) from the careers service concerning the youth training guarantee ; and if he will make a statement.

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Mr. Eggar [holding answer 18 May 1990] : I have received no representations on the particular case referred to by the hon. Member, nor from the careers service about the guarantee.

Training Agency area offices are currently negotiating funding levels with training providers in respect of the youth training programme which commences on 29 May 1990. Under youth training, the Government's guarantee remains unaffected. All young people under the age of 18 who have left full -time education and who are unable to find a job, are guaranteed the offer of a training place on the programme.

Training Organisations

Mr. McLeish : To ask the Secretary of State for Employment what is the total number of applications from ET training managers for approved training organisation status which have been (a) rejected on the first five criteria, (b) rejected on the last four criteria and (c) rejected by the Training Agency.

Mr. Nicholls [holding answer 14 May 1990] : Only those training managers who are considered to have the potential to meet the stringent standards entailed in the award of approved training organisation status are given contracts to provide employment training. The approval process involves a constructive partnership between the Training Agency and the training manager to build provision which meets these standards. Rejections are made only when it becomes clear there is no prospect of achieving this.

For those training managers who began operations at the start of employment training, the assessment process is under way and as at 30 April 1990, it has proved necessary for the Training Agency to reject only one training manager who failed on the first five criteria.

Mr. McLeish : To ask the Secretary of State for Employment what is the total number of applications from training agents for approved training organisation status which have been (a) rejected on the first five criteria, (b) rejected on the last four criteria and (c) rejected by the Training Agency.

Mr. Nicholls [holding answer 14 May 1990] : Only those training agents who have the potential to meet the stringent quality standards entailed in the award of approved training organisation status are given contracts to provide employment training. The approval process involves a constructive partnership between the Training agency and the Training Agent to build provision which meets these standards. Rejections are made only when it becomes clear there is no prospect of achieving this.

For those training agents who began operations at the start of employment training, the assessment process is under way and as at 30 April 1990, it has not proved necessary for the Training Agency to reject any training agents.

Mr. McLeish : To ask the Secretary of State for Employment what is the total number of ET training managers who have received Training Agency approval for each of (a) the first five criteria and (b) the last four criteria set out in the approved training organisation process.

Mr. Nicholls [holding answer 14 May 1990] : The approved training organisation process involves a

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constructive partnership between the Training Agency and the training manager to build provision which meets the stringent standards entailed in the approved training organisation award. Training managers have two years from the date of commencement of their employment training operation to meet these standards which are tested in two stages. The assessment process for those who began on 5 September 1988 is currently under way and as at 30 April 1990, 873 have received Training Agency approval for the first five criteria and three have received approval for the last four criteria.

Mr. McLeish : To ask the Secretary of State for Employment what is the total number of ET training agents who have received Training Agency approval for each of (a) the first five criteria and (b) the last four criteria set out in the approved training organisation process.

Mr. Nicholls [holding answer 14 May 1990] : The approved training organisation process involves a constructive partnership between the Training Agency and the training agent to build provision which meets the stringent standards entailed in the approved training organisation award. Training agents have two years from the date of commencement of their employment training operation to meet these standards which are tested in two stages. The assessment process for those who began on 5 September 1988 is currently under way and as at 30 April 1990, 153 have received Training Agency approval for the first five criteria. None so far has received approval for the last four criteria.

SOCIAL SECURITY

Taxes and Benefits

11. Mr. Eastham : To ask the Secretary of State for Social Security how many taxpayers face a marginal deduction rate of 70 per cent. or more as a result of the interaction of the tax and benefit system.

Mr. Newton : There are around 320,000 tax units paying income tax with a marginal deduction rate of over 70 per cent. The social security reforms and subsequent changes to national insurance have effectively eliminated the risk of facing combined deductions for taxes and benefits which exceed each extra pound earned.

17. Mr. McAvoy : To ask the Secretary of State for Social Security what is his latest estimate of the number of people who lose 90p or more in every pound of increased earnings as a result of the interaction of the tax and benefit system.

28. Mr. Eadie : To ask the Secretary of State for Social Security what is his latest estimate of the number of people who lose 90p or more in every pound of increased earnings as a result of the interaction of the tax and benefit system.

Mr. Newton : Before the reforms 70,000 families had marginal deduction rates over 100 per cent., and 130,000 had rates over 90 per cent. Now nobody has a rate of 100 per cent. or more, and the number over 90 per cent. has fallen to 40,000.

23. Mr. Bidwell : To ask the Secretary of State for Social Security what is his latest estimate of the number of

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people who lose 90p or more in every pound of increased earnings as a result of the interaction of the tax and benefit system.

Mrs. Gillian Shephard : It is estimated that there are about 40,000 benefit units where the head is in full-time employment and faces a combined marginal tax-benefit withdrawal rate of 90 per cent. or more.

60. Mr. Alan W. Williams : To ask the Secretary of State for Social Security how many taxpayers face a marginal deduction rate of 70 per cent. or more as a result of the interaction of the tax and benefit system.

Mrs. Gillian Shephard : It is estimated that there are about 320, 000 benefit units where the head is in full-time employment, pays income tax and faces a combined marginal tax-benefit withdrawal rate of 70 per cent. or more.

Occupational Pensions

13. Mr. Jacques Arnold : To ask the Secretary of State for Social Security what new measures are being introduced to protect members of occupational pension schemes.

Mr. Newton : The current Social Security Bill includes measures to appoint a pensions ombudsman ; reduce self-investment by schemes ; extend the rights of early leavers ; and provide, from a date to be appointed, for annual increases in respect of pension rights derived from future service and for scheme surpluses to be used to make increases in respect of existing rights. These are further important steps forward in safeguarding the position of the members of such schemes.

16. Mr. Leigh : To ask the Secretary of State for Social Security what powers the pensions ombudsman is proposed to have to resolve any grievances held by members of occupational pension schemes.

Mrs. Gillian Shephard : I refer my hon. Friend to the reply I gave my hon. Friend the Member for Maidstone (Miss Widdecombe) on 2 April at column 488.

Computerisation

14. Mr. Andy Stewart : To ask the Secretary of State for Social Security how he anticipates his Department's computerisation programme will benefit social security claimants.

Mrs. Gillian Shephard : Computerisation has improved the speed and accuracy with which benefit claims are handled. It provides a better service to the public on inquiries. It has enabled us to move benefit processing work out of London to areas where it is easier to recruit and retain good staff--and so provide a better service to our London customers.

57. Dr. Twinn : To ask the Secretary of State for Social Security what progress has been made in implementing his Department's operational strategy.

Mrs. Gillian Shephard : The Department's highly complex £1.7 billion strategy for the computerisation of the social security payment system is proceeding as planned. The pilot exercise in 23 local offices has been

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completed and the systems are being introduced nationally office by office. By 4 May 1990, 226 offices had received the departmental central index (DCI) system ; 225 the retirement pensions system ; and 119 the income support system--out of an eventual target of 440 offices.

Lone Parents

15. Mr. Michael : To ask the Secretary of State for Social Security whether he has any plans to assist lone parents living on benefits to be able to move into work or training.

25. Dr. Kim Howells : To ask the Secretary of State for Social Security whether he has any plans to assist lone parents living on benefits to be able to move into work or training.

Mrs. Gillian Shephard : The benefit system already contains a number of special provisions to help lone parents who wish to work. Regular payments of maintenance can also provide a valuable stepping stone from benefit to work. We are currently reviewing the maintenance system to see what improvements are needed.

22. Ms. Walley : To ask the Secretary of State for Social Security how much a lone parent with two children would have to earn to be better off in work than on benefits, making an appropriate assumption about the costs of child care.

42. Ms. Primarolo : To ask the Secretary of State for Social Security how much a lone parent with two children would have to earn to be better off in work than on benefits, making an appropriate assumption about the costs of child care.

Mrs. Gillian Shephard : I refer the hon. Members to the reply given to the hon. Members for Birmingham, Ladywood (Ms. Short) and for Halifax (Mrs. Mahon) earlier today.

49. Dr. Moonie : To ask the Secretary of State for Social Security whether he has any plans to assist lone parents who are not living on benefits to obtain maintenance from the absent parent.

55. Dr. Godman : To ask the Secretary of State for Social Security whether he has any plans to assist lone parents who are not living on benefits to obtain maintenance from the absent parent.

56. Mr. Patchett : To ask the Secretary of State for Social Security whether he has any plans to assist lone parents who are not living on benefits to obtain maintenance from the absent parent.

Mrs. Gillian Shephard : Absent parents have a clear legal responsibility to maintain their families wherever they can afford to. The Government have announced an inter-departmental review of the maintenance system to see what changes need to be made to the way in which maintenance is awarded and paid. A survey of the work in a sample of courts and DSS local offices is under way to provide full and up-to-date information as a basis for deciding on the best way forward, and this information will relate both to benefit and non-benefit cases. We are also examining systems in use in other countries to see what lessons can be learned from them. The Government aim to bring forward proposals later this year.

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In the shorter term we have taken action to improve the payment and enforcement of maintenance under the current system. These measures will help lone parents who want to move from benefit to independence, since maintenance can provide valuable extra income to supplement earnings. Some two thirds of lone parents are dependent on income support. We have strengthened the basis on which local offices assess absent parents' ability to pay maintenance and have improved our instructions on interviewing lone parents about the identity of the absent father. We have also introduced a new clause to the current Social Security Bill to expand our ability to take action and address some of the problems lone parents have experienced with the current system. In particular the new clause will enable an order obtained by the Department to be transferred to the lone parent leaving benefit, removing the need for her to go to court to obtain a private maintenance order. DSS will also be able to enforce a lone parent's maintenance order for her when payments are not being made in full, if the lone parent is claiming income support for herself and her family. This will ensure that prompt action is taken in all cases and will reduce the chance of the absent parent getting into the habit of non-payment.

50. Mr. Barry Field : To ask the Secretary of State for Social Security what is the latest estimate he has as to the number of lone-parent families in receipt of income support ; and how many also receive family credit.

Mrs. Gillian Shephard : At May 1988 some 722,000 lone-parent families were in receipt of income support of whom some 6,000 were also in receipt of family credit. (The figures do not include prisoners' partners). At December 1989 there were 120,000 lone-parent families in receipt of family credit ; information is not available on the number also in receipt of income support. There is a limited overlap between income support and family credit because an award of family credit lasts for six months.

Sources : Income Support Annual Statistical Inquiry 1988 ; Family Credit Statistical System.

Absent Fathers

18. Mrs. Roe : To ask the Secretary of State for Social Security what measures are being taken to make the arrangements for recovering maintenance from absent fathers more effective ; and if he will make a statement.

Mr. Newton : I am currently examining the maintenance system and aim to bring forward proposals for change later this year. In the meantime I have taken a number of steps to improve the recovery of maintenance under the current system. This includes a new clause introduced to the present Social Security Bill which will improve our ability to pursue maintenance.

Social Fund

20. Mrs. Margaret Ewing : To ask the Secretary of State for Social Security what recent representations he has received on the operation of the social fund.

29. Mr. Sillars : To ask the Secretary of State for Social Security what recent representations on the operation of the social fund he has received.

Mr. Scott : Representations on all aspects of the social fund have been received from hon. Members, members of the public and various organisations.

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Mr. McFall : To ask the Secretary of State for Social Security how many social fund applications have been reviewed since the High Court's decision relating to his guidance on local office budgets ; and how many additional payments have resulted.

33. Mr. Murphy : To ask the Secretary of State for Social Security how many social fund applications have been reviewed as a result of the High Court's decision on his guidance on local office budgets ; and how many additional payments have resulted.

64. Mr. Morley : To ask the Secretary of State for Social Security how many social fund applications have been reviewed since the High Court's decision on his guidance on local office budgets ; and how many additional payments have resulted.

Mr. Scott : Between 1 March 1990 and 30 April 1990, a total of 27, 000 applications for review were processed by local offices. A total of 593 were requests for a further review in the light of the High Court decision, and resulted in 473 full or partial awards totalling £144,400.

Mr. Ron Davies : To ask the Secretary of State for Social Security how many local social security offices have had their social fund budgets reduced in (a) 1990-91 and (b) 1989-90, in cash terms and in real terms.

48. Mr. John P. Smith : To ask the Secretary of State for Social Security how many local social security offices had their social fund budgets reduced in (a) 1990-91 and (b) 1989-90, in cash terms and in real terms.

Mr. Scott : The information requested is as follows :


              |1989-90|1990-91        

--------------------------------------

Cash terms    |184    |0              

Real terms<1> |429    |252            

<1>Real terms prices as reckoned by   

the gross domestic product deflator.

The figures compare allocations at the beginning of the relevant financial year with those at the beginning of the preceding year.

Income-related Benefits

21. Mr. Evennett : To ask the Secretary of State for Social Security by how much spending on income-related benefits for families with children has changed since April 1988.

Mrs. Gillian Shephard : Since April 1988 we have provided over £350 million extra help in real terms to families with children receiving income-related benefits.

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