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The Economy and Welfare Reform

I have given way quite enough. Every time I give way to the leader of the Scottish National party I have to point out that employment is rising in Scotland, despite everything that he says. Last week’s employment figures showed that employment is above 28 million. Last week we had more people in employment than at any time in the history of our country. With unemployment falling, the spending on benefits on unemployment—this is a point that the Conservatives must realise—has halved since 1997. We have saved £5 billion a year, which we can now spend on health, education and other social services. Our employment success is not an accident. We did not reduce unemployment by the laissez-faire policies of the Conservatives, of leaving things to chance. We did it by combining stability with the existence of a new deal. Unemployment in the UK is half what it is in France, in Germany or in the euro area. The shadow Chancellor might have said that, as a result of Government policies, unemployment in his constituency has been reduced to just 1 per cent. Perhaps the shadow Chief Secretary will be pleased to hear that unemployment in his constituency is 0.9 per cent. Both constituencies, like so many others, have seen a 50 per cent. fall in unemployment since 1997. However, we are not complacent and there is a great deal more to do. With higher skills at a premium in meeting global competition, it is time, as my right hon. Friend the Secretary of State for Work and Pensions will be saying this evening, to extend and improve the new deal as a new deal for skills. It would be wrong to follow the advice of the Liberals or the Conservatives at this stage and abolish the new deal. The Queen’s Speech announces the steps that we are taking to help more single parents, more young unemployed and more incapacity benefit claimants to get work. In return for new opportunities there are, however, new obligations for many who are unemployed. For those in the first three months out of work, we shall test and then extend widely a new jobseeker’s agreement of work-search requirements and regular signing on. For those who are six months out of work, we are piloting in 12 areas a personal action plan that is based on compulsory interviews and an intensive work programme. For those who refuse, there is to be a tougher sanction regime. In return for these new obligations, we shall in this Parliament help 3 million adults gain basic qualifications so that they can play their full part in a modern economy in all constituencies. Those who stay on after 16 in education or unwaged training and who need finance could receive up to £75 a week in educational maintenance allowances and children’s benefits. There will be special transitional help for 16 and 17-year-olds who have fallen through the net. In partnership with business, which has welcomed this, and the trade unions there will be another 50,000 people in apprenticeships by 2008. The question for the Conservative party and for everybody who is concerned about these matters is whether they are prepared to support the public investment that is necessary for the apprenticeships, the improvement in youth training and the improvement in education.