PARLIAMENTARY DEBATE
Employment Rate: OBR Forecast - 18 December 2023 (Commons/Commons Chamber)

Debate Detail

Lab
Chris Elmore
Ogmore
4. What assessment he has made of the potential implications for his policies of the employment rate forecast in the Office for Budget Responsibility’s economic and fiscal outlook published in November 2023.
Lab
Judith Cummins
Bradford South
17. What assessment he has made of the potential implications for his policies of the employment rate forecast in the Office for Budget Responsibility’s economic and fiscal outlook published in November 2023.
  14:45:54
Mel Stride
The Secretary of State for Work and Pensions
The Government are committed to increasing employment. Payroll employment is at a near record high of 30.2 million, which is up 1.2 million on the pre-pandemic level. The Office for Budget Responsibility forecasts that our back to work plan will see 30,000 more people in work over the forecast period.
Chris Elmore
The OBR revealed at the time of the autumn statement that after more than 13 years of this Conservative Government, 600,000 more people will be on health and disability benefits by 2028-29. Far from it being a back to work Budget, the Secretary of State knows that that is not anything like the truth and that the Tories are failing the employment market in this country.
Mel Stride
I cannot agree with that. In fact, I point the hon. Gentleman to the figure of 371,000, which is the number of people fewer the OBR forecasts will be on those very long-term sickness and disability benefits because of the reforms that this Government are bringing in.
Judith Cummins
Last week, the Office for National Statistics published figures showing that 6.6% of people of working age in Bradford are claiming out-of-work benefits, which is the highest rate in the Leeds city region. Does the Secretary of State believe that the Government’s back to work plan is working for people in my constituency of Bradford South?
Mel Stride
The back to work plan has billions of pounds-worth of investment behind it, including the £3.5 billion announced by the Chancellor in the spring Budget. Such things as extending restart, bringing forward mandatory placements after 18 months to ensure that people get into work and doubling universal support are important measures that will see increased numbers in work.
  14:47:32
Mr Speaker
I call the shadow Minister.
Lab
Alison McGovern
Wirral South
All we hear from the Secretary of State on employment is smoke and mirrors, but thankfully the OBR has published the numbers. We have just heard what he believes is happening with employment because of his policies, but when the OBR looked at his policies, did its forecast show the employment rate, compared with today, to be going up or down in 2024-25?
Mel Stride
I have already shared the figures with the House, which are that payroll employment is at a near historic high and unemployment is at a near historic low. As the hon. Lady will know, we have never had a Labour Government leave office with unemployment lower at the end of their term than when they started. Youth unemployment went up 45% under the Labour party, whereas under this Conservative Government it has reduced by 45%.
Alison McGovern
You can always tell the Conservatives are struggling to answer the questions, Mr Speaker, because they go back to those same old things about what happened under the last Labour Government. After 13 years, they have nothing to be proud of. If what the Secretary of State said was true, we might expect that after a little time some of his policies would work, but is it not true that it is not just next year that the OBR forecasts the employment rate to be down, but the year after that, too?
Mel Stride
We will continue to bear down on the level of unemployment. As the hon. Lady knows, economic inactivity has reduced, and we have 300,000 fewer people in economic inactivity than at the peak during the pandemic. We have a plan. Is it not the reality that the Opposition have no plan and no ideas as to how to get those numbers down? We do, and it is working.

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