Tag: Alok Sharma

Below is the text of the speech made by Alok Sharma, the Minister of State for Employment, made at the STIR Conference on 13 February 2019.

Ladies and gentlemen, it is a pleasure to be here.

The last time I spoke to the BritishAmerican Business group was actually back in 2013. It was in Reading, you were on a roadshow and I was thinking what did we talk about because that was before Brexit.

But I did look through the agenda and the agenda was trade – all about trade between the UK and the US. And TTIP. So it was current then and it is current now.

Anyway, I probably shouldn’t digress from my speech so let me deliver the speech and then I am very happy to take questions on Brexit or anything else you would like.

So let me start by saying there are 3.4 million more people in work today than in 2010, and around three quarters of all the jobs created over the last 8 years have been full-time, permanent roles and in what we refer to as higher level occupations which ultimately attract higher wages.

All the increase in employment in the last year has been driven by full-time and permanent jobs. And I think from my perspective I want to thank all of you here because you are very much the people who have made this happen – so a huge thank you from me and the rest of the government.

Actually people have been benefiting across every region of the country.

Employment growth has been strongest in regions where it has historically been low. And this point was reinforced in the Resolution Foundation’s report which I helped launch last month as it set out how record employment has changed the United Kingdom.

Across society, all groups are benefitting as well.

In fact, it is those who previously found it harder to find jobs who are benefitting most from the jobs growth we have seen over the last 8 years.

More women are in work than ever before; the ethnic minority employment rate is at a record high; youth unemployment has almost halved since 2010; a million more people with disabilities have entered the jobs market since 2013; and there are more than 10 million people over the age of 50 still in work.

Now I’m not going to ask how many of you are over 50 – you all look very young to me. But I have just got over 50 so I am now an older worker, as we class it.

And this is the group that we are going to be looking at today.

As we live longer, healthier lives many people are extending their working life.

But it may surprise many to know that, despite our increased longevity, men are actually leaving the labour market at an earlier age than in 1950, with women leaving at the same age.

Whilst there are those who have planned and saved to retire early, there are lots of people exiting the labour market before they would really want to.

Analysis of the British Social Attitudes survey which looked at working later in life showed that just 39% of those who had already retired did so because they wanted to.

So that means 61% of people who retired did so not wanting to but wanting to work longer, or indeed because they had health conditions or were unable to work. And that’s quite a powerful statistic in my view.

And while employers have long been making arrangements to enable parents to look after their children – which of course is a very good thing – there is also an increasing need to support their older workers who are caring for parents or partners. And I will return to this theme.

It is widely accepted of course that boosting the number of older workers in employment has benefits.

I want to focus on 3 in particular.

The first are the rewards for an individual who enjoys a fuller working life; second is the boost for employers; and third is the benefit to the national economy.

So firstly, I do think we are too quick to forget the impact that the routine and social nature of work has on our individual health and wellbeing. For most people, being in what they consider to be good work can be good for their health, both physical and mental.

Secondly, at an employer level, I know from my conversations with businesses that you yourselves recognise the value of keeping hold of your talent or bringing their experience into your workforce.

And not only that: we are all familiar with the productivity challenge we face in this country. Armed with more experience, the efficiency of older workers could be part of that solution.

And thirdly at the national level, according to PwC analysis, if the UK could reach the employment rate for 55 to 64 year olds that Sweden currently enjoys, it would boost our GDP by £80 billion. This of course would mean boosting our employment rate for this co-hort to around 76%. This will take effort from all us – but we have made progress. Since 1984 we’ve lifted the employment rate for 55 to 59 year olds from around 60% to just over 74%.

And it is with those 3 benefits in mind that I am convinced that improving employment rates for older workers is a collaborative process – requiring business, government and individual action.

Around 2 years ago we launched our Fuller Working Lives strategy which was written by business, for businesses.

It made recommendations about how businesses can retain, retrain and recruit older workers – with a strong business case alongside each.

I won’t repeat the detail of it – you will have read that – but we have made progress since we set out that plan.

As part of the recommendations there were a number of ideas around engaging with workers to support them on changing their working pattern and reshaping the end of their careers.

Since then, much work has gone into what we are calling mid-life MOTs – a moment to take stock of your career and your finances, and to plan for the future with support from your employer.

Last summer a number of organisations including Aviva, L&G and the Pensions Advisory Service ran pilots with their employees.

And as we advocate for mid-life MOTs amongst business it is important that we in government set the pace on this.

So last year my department ran our own pilots with just under 300 staff. It was voluntary and involved a personal review with their line manager and the opportunity to sit down with the Civil Service pension team.

The initial feedback that we have got is that people found it a really useful exercise. What we are evaluating now is what impact those conversations have had on changing behaviour.

And as the results of all the pilots are shared, ours as well as the private sector pilots, we will start to see how the midlife MOT can be used to ignite a cultural shift in how people plan for their later career.

We now also have the Flexible Working Taskforce, and there may well be people here who are represented on that, which includes a range of government departments and business stakeholders.

The theme of flexible working is also something that comes through in the government’s Good Work plan. I have to say that often flexible working is seen as a response to working parents, which I’ve said is a very good thing.

But flexible working must also be seen through the prism of older workers.

They are group who so often carry a range of responsibilities – caring for grandchildren, parents or indeed for their partners.

They are often woefully undervalued in these roles, and their needs have not been voiced loudly enough in the debate about flexible working.

Bringing their cause to the fore is something that we can make sure is achieved through this taskforce.

While action has been taken and progress is happening, older workers are continuing to take on employment, there is more to do.

And there are 2 areas in particular that I am looking at to boost the employment rates for older works. The first do with our jobcentres.

Almost all are already paired with the National Careers Service and our Older Worker Champions are working actively on behalf of the older jobseekers we support.

But on a recent visit to the jobcentre in Birkenhead I met a jobseeker in his fifties and a jobseeker in her twenties – and they sparked an interesting thought.

While the older jobseeker had navigated the working world – with all its workplace politics – the way that employers recruit today was very new to him.

Conversely, the younger jobseeker was far more comfortable with rigorous recruitment processes, detailed application forms and online testing, but actually welcome real-life insight into how to get-on once she had the she job wanted.

At the moment, our jobcentres often working with jobseekers in clusters – young people, ethnic minority jobseekers, older workers and so on.

To me it makes sense that in many ways to bring people with a shared experience together – building up their confidence and addressing specific barriers.

But if we take down the divides between these groups, rather than just supporting each through shared experience they can help one another by sharing their different experiences.

Just as employers value older workers as mentors, jobcentres should too – with the added benefit that the mentoring can be mutual.

And of course it’s interesting in the context of the discussion we have just had about reverse mentoring – this is something that is as applicable in jobcentres as it is in the workplace more widely.

The second area I am looking at is enrolment in our Work Experience Programme and Sector Based Work Academies.

Currently, over fifties are in the minority of the people who start these programmes making up around just 10% of those who have taken up the opportunities since we launched these initiatives in 2011.

But for those who have been out of work for a while or who are looking to change their job as they grow older, these are the bridges to the work that they are looking for.

There needs to be a cultural shift in the opportunities we think older workers are open to. For example, apprentices are often thought of as fresh-faced, inexperienced workers.

But increasingly employers are successfully opening up their schemes to older applicants, in some cases specifically targeting older workers.

Jobcentres should be doing just the same with the opportunities they have on offer.

So I have my to-do list on improving the employment prospects for older workers – I hope as you leave this conference later on today you will have your own.

But before I conclude, I want to make the point that whilst the interventions I’ve talked about today focus on the over fifties, we must also get on the front foot with the young generation of workers coming in.

There needs to be a resetting of the dial when it comes to how people plan their careers.

A job for life is no longer a certainty – nor is it what many people want today.

That does not need to be alarming – there is a sense of freedom in that.

But to make the most of it, people setting out in their working life must be prepared to adapt.

Adapt to how their job needs will change as their personal circumstances change over time.

And, particularly for the new generations, how they adapt as the world of work changes as technology is replacing as well as creating jobs.

People coming into the workplace now have a different attitude to their parents.

They are starting to understand that lifelong learning is more crucial than ever. And that one’s legacy can be in 2 or 3 careers, not just in one.

And I will repeat myself here. This doesn’t need to be alarming.

Much has been said about concerns for the future of work – particularly in the face of automation.

But each industrial revolution has created more jobs than there were before.

So I am confident that we will continue to see a strong labour market. Bringing more people into the workplace – for our collective and individual benefit.

Below is the text of the speech made by Alok Sharma, the Minister of State for Employment, at the Resolution Foundation on 14 January 2019.

Introduction

Ladies and gentlemen good morning.

A huge thank you to the Resolution Foundation, and to Lord Willetts in particular, for the invitation to speak at the launch of the report today.

This is a momentous week for Parliament and our country as a whole.

We stand at the crossroads of history.

And how Members of Parliament act, and vote, on Tuesday may well have a profound impact on our labour market.

Both in the shorter and longer term.

I will return to that point later, but first the findings of the report.

The overall message of this report is positive and encouraging.

And a re-affirmation for me that the economic policies David, I and our parliamentary colleagues supported from 2010 were the right ones.

As outlined by Stephen, the report concludes that not only are there more people in work today than ever before, but that it is those on low incomes, and those historically unengaged in the jobs market, who have benefitted most.

The report also notes that the net increase in employment is down to people taking on professional roles. Which is good news because those jobs attract higher pay.

And the regions which had the lowest employment rates a decade ago, have seen the greatest increase. Effectively catching up on historically slow jobs growth.

Any analyses of the last decade will of course be skewed by the financial crash in 2008.

We in government prefer to measure the jobs market from 2010, when we took on responsibility for the economy.

Since 2010, the labour market has gone from strength to strength – with an average of 1,000 people a day moving into work. That’s 3.4 million more people in work today than in 2010.

We politicians and think tankers love our statistics. For us they build an overall picture.

But what we must never forget is that behind every single extra job created, and vacancy filled, there is a human success story.

Of someone whose family income, self-esteem and life chances are all hugely improved by being in work.

And our reform of the welfare system has made a positive contribution, playing its part in helping people into work.

And last week Amber Rudd announced further reforms to Universal Credit to ensure that we provide additional support, especially for the most vulnerable.

Given some of the conclusions of today’s report there are 3 areas in particular I want to focus on briefly.

First, the work we are doing to ensure that people do not just have a job, but that they have a good job.

Second, is on improving further participation of under-represented groups in the employment market.

And third, is about how we help people to progress in work and to earn more.

Good jobs

So first, let’s look at the quality of employment.

Today’s report focuses on atypical employment.

This looks at employment groups in a different way to the Office for National Statistics. Including part time and self-employed in the same bracket as contract or zero hours workers.

While the self-employed may welcome their categorisation as atypical – a label that emphasises their ability to break the mould and be innovative – part-time workers have been a longstanding part of our labour market. Indeed, rather typical.

That aside, I welcome the report’s detailed analysis that looks at the growth of atypical work at different stages since 2008.

It shows the high growth in atypical work directly following the 2008 crash, but concludes that in the last 2 years the employment boom has been driven largely by full-time roles.

It is worth noting that according to the ONS, of the new jobs created since 2010 around 75% are full-time, permanent and in higher level occupations.

I want to see even more of these type of jobs being created.

The government responded positively to the findings of Matthew Taylor’s review of modern working practices.

And through the government’s Good Work plan, published in December last year, we are already recognising the need to find the right balance between employees and employers, when it comes to job flexibility and security.

As a part of this, we have brought forward new legislation to upgrade workers’ rights.

Including a day-1 statement of rights for all workers, setting out leave entitlements and pay.

The rise in Artificial Intelligence and automation will continue to disrupt the jobs market.

Indeed, the impact of new technology changing the jobs market has been the one constant through the ages.

The good news is that every industrial revolution has resulted in more jobs being created.

But as some workers feel precarious in their positions, we need to provide certainty for their future, with an offer of building new skills and retraining.

And we will need to be dynamic in our ongoing response to the changing nature of work and the workplace.

Under-represented groups

The changing nature of the world of work leads me to the changing make-up of our workforce.

There are now 10 million workers over the age of 50.

We have seen record numbers of women in work.

Youth unemployment has almost halved since 2010.

Almost a million more disabled people have entered employment since 2013.

And the ethnic minority employment gap is at a record low.

Regardless of circumstance, people are able to access support tailored for their individual needs as they look for work.

It is that support which has delivered the current success in the labour market. And it is an enhanced personalised approach that will see us go further still.

We have older workers’ champions in all our jobcentres, leading the way on finding the right opportunity for those later in life.

We have around 1.2 million potential returners to the work place in the UK – 91% of whom are women. Through specialist return-ship programmes we can support them back into work.

There are specialist disability advisers that work across our jobcentre network. Helping people improve their confidence. Offering financial support for specialist equipment to help them at work.

We have an intensive programme to support young people into employment or training. And we work with schools to assist 12 to 16 year olds who have been identified as most likely to be at risk of becoming NEETs.

As the report has highlighted there has been a strong rise in employment of those from ethnic minority backgrounds.

But if we want to accelerate this progress, we must look at the employment rates between individual ethnic minority groups – not treat them as one.

There is a wide range in the employment rate between different ethnic minority groups and significant disparity in employment rates between men and women.

That is why our national network of jobcentres are offering personalised support.

For example, in Yardley we have been working with women from the British Bangladeshi and Pakistani communities to build their confidence and understanding of what they have to offer.

And I have asked the department to roll out personalised mentoring programmes for young people from ethnic minority communities, in areas where the employment gap is largest.

In-work progression

The kind of tailored support I have referred to is fundamental to the welfare reforms we are making.

And I believe that support should not stop just because someone gets a job.

Supporting people to get their foot on the first rung of the ladder has always been the central focus of my department.

But I want us to go further.

To spend time supporting people to move up the ladder in their earnings and the quality of their job. Helping people to achieve their potential.

If we are going to do this, we are going to need to be world leaders.

Because there is very little evidence of good practice from around the world for us to follow.

And we have already made a start.

We recently completed a large-scale trial on in-work progression involving some of the lowest paid people in the country.

The trial tested the provision of varied levels of support and conditionality for current in-work claimants.

What we found is that after 52 weeks on the trial, participants who received frequent and moderate support from the jobcentre network earned more than those getting minimal support. This is only a start.

We have secured £8 million from the Treasury to develop a programme of research, proofs of concept and trials to develop and test our in-work services.

Some of the potential interventions we will consider exploring include the role of mentoring.

Looking at how we can support the development of the National Retraining Scheme in a partnership with our jobcentres.

Making sure our front-line staff have the skills for this new era of personalised job support.

And looking at what we can do with ‘digital nudges’. Using the new online system to plant the seeds of progression in people’s minds, and offer a practical route to help them get there.

And of course, we are looking at ways in which we can test more place-based approaches, with collaborations between jobcentres and other bodies, such as local authorities.

And we’re keen to see how we can work with those outside of government, including employers.

Conclusion

In conclusion, I welcome some of the key findings of this report, as it highlights the successes in the labour market.

But I am not complacent.

There is more for us to do to drive up the quality of work.

To increase participation from under-represented groups in the labour market.

And to deliver a fundamental and positive shift in in-work progression.

My final point is on Brexit.

I want us to respect the result of the referendum.

But I also believe that a disorderly Brexit presents a real risk to the health of the labour market.

It is a risk which, I hope, all Members of Parliament will consider seriously as they walk through the division lobbies tomorrow.

Thank you.

Below is the text of the statement made by Alok Sharma, the Minister for Employment, in the House of Commons on 8 January 2019.

Universal credit is a vital reform that overhauls a legacy system that trapped people out of work; with six different benefits, administered by three different Government Departments, it was utterly confusing for claimants. All new claimants now receive universal credit. In the future, we will move claimants who have not changed circumstances from legacy benefits to universal credit in an approach known as managed migration. It is right that the Government should seek to align provision for all, in order to eventually operate one welfare system. The Department has long planned to initially support 10,000 people through this process in a test phase, before increasing the number of those migrated. The first phase will give us an opportunity to learn how to provide the best support, while keeping Parliament fully informed of our approach. Universal credit is proceeding as planned, with no change to the timetable of completing managed migration by December 2023.

Below is the text of the speech made by Alok Sharma, the Housing Minister, on 27 November 2017.

Introduction

Thank you, Sophie.

The BBC folk seem to get the best gigs in town.

I am speaking at an event being compered by Mark Easton next.

I am absolutely delighted to be here at what is a landmark moment for community-led housing.

Today’s event – the first ever conference to bring the sector together – is testament to just how far you have come.

With half of the 225 plus Community Land Trusts in England and Wales having been set up in the past 2 years, the momentum is clearly growing.

And I want you to know that I am behind you all the way.

Benefits

Because the strengths of community-led housing speak for themselves.

You know your local areas better than anyone.

And are better placed to make things happen.

To see the potential of small sites.

Difficult sites.

Sites that are off limits or of no interest to developers.

You are not waiting for someone else to step in and just take what you are offered.

You are designing and developing houses that you and your neighbours are proud to call home.

Homes that, from the word go, are an integral part of your communities.

Homes that are not just affordable now, but are affordable forever.

That are models of high quality design, energy efficiency and innovation.

And it’s not just the people in those homes who benefit.

Because your work raises the bar for the entire housing market.

Pushing up expectations of design quality.

Powering the growth of modern methods of construction.

And, by supporting smaller-scale building companies making the house building industry more diverse and resilient.

But the benefits go further still.

By giving people a hand in the conversion or refurbishment of empty properties you are equipping them with new and highly transferrable construction skills.

You are sustaining local economies by giving young home-grown talent affordable places to live and a reason to stay.

You’re not just building better homes.

You’re building better communities.

Barriers

And I certainly don’t underestimate what that takes.

You face significant barriers, such as access to pre-development grants, loans or mortgages and a lack of understanding or resources at a local policy level.

But the biggest barriers are almost certainly cultural.

It is a simple idea: if you need a home, why not build it?

Yet most people in our country never even consider it seriously.

And, if they do, they might think of either Grand Designs or some kind of flat-pack nightmare on an epic scale.

I know, from living and working in Europe that homes built by local communities are a normal part of the landscape in countries like Germany and Sweden.

People there may be somewhat surprised that we need to have a conference about it at all.

Yet here in Britain, the term “community-led housing” is likely to be met with blank looks.

Well, outside this room anyway!

And, even when explained, it’s seen as a heroic endeavour that is only for the most extraordinary and adventurous of individuals.

Of course you are extraordinary people. And I don’t normally like to single out individuals from a sea of excellence.

But on this occasion I must.

There’s Maria Brenton, who for 18 years and counting has committed herself to the Older Women’s Cohousing project in Barnet.

There’s Geoff Pook, from the Beer CLT, who formed a group, secured funding, secured Registered Provider status and built 7 homes – and did it all in just 2 years.

Two years!

I’ve had flat-pack furniture in garage still not assembled after 5 years!

And let’s not forget one of the first innovators, David Brown, who has just stood down as Chair of High Bickington Community Property Trust after almost 2 decades.

Maria, Geoff and David are truly inspirational, and I take my hat off to them, and indeed to all of you.

But I want community-led housing to be a realistic option not just for exceptional people but for all people.

Even politicians!

Realising the sector’s potential

This is vital if we are to realise the true potential of this sector.

To empower more communities.

To, ultimately, see community-led housing playing a much bigger role in delivering the houses our country desperately needs.

Delivering these houses is an overriding priority for this government.

Recent figures showed that the number of homes in England increased by more than 217,000 last year – the highest level of net additions since the depths of the recession.

But you saw in February’s housing white paper, and again in last week’s ambitious Budget, that we want to go further still.

That we want to build more of the right homes, in the right places, at the right prices.

And I believe that community-led housing has a huge role to play in helping us to do just that.

Announcement

A year ago we backed the sector with the launch of the Community Housing Fund.

Since then, we’ve awarded £60 million in grants to help 148 local authorities support more community-led projects

The grants, which ranged in size, were paid to authorities that had the least affordable homes or the highest density of second homes.

Alongside the money, we gave advice on how to spend it in order to deliver the best results.

And we wanted the grants to help build capacity and support local projects, now and into the future.

Some fantastic work has been happening as a result .

Many councils – such as in Sussex, Hampshire and London – have pooled these resources to provide and information and support hub for community groups.

Others – such as Cornwall and West Dorset – have already used the money directly to help get the projects off the ground.

In short, this funding has been a success.

So today I can today announce that we will launch a new programme of funding to help build thousands more homes.

Worth £60 million in the first year alone, it will provide both capital and revenue funding, with flexibility to meet demand.

A significant element of the funding will also go towards developing an advisory network that supports community groups to bring forward projects.

We will shortly publish a prospectus setting out criteria for bids.

And, from January, we will invite applications from community groups, registered providers and any other appropriate organisations.

Bids will be assessed by the experts at Homes England, our new national housing agency.

And we hope to announce the first allocations as soon as Easter.

It is vitally important to me that we continue to work closely with the sector in delivering this programme, just as we have done in the design phase.

Many of you have had a hand in shaping this new programme of work. And I hope you will reap the rewards.

And I also hope you will come together to share your vast experience and expertise.

I want to ensure that our investment in the sector makes a real difference and your contribution will be invaluable in helping us achieve this.

That’s why I will be setting up an advisory group to steer the Department of Communities and Local Government on the delivery of the programme.

Conclusion

Some will say this just small fry.

That community-led housing currently accounts for just a few hundred units a year – under half a per cent of total housing output in England.

That the scale of the challenge before us – building 300,000 homes a year – dwarfs the capacity of the community-led sector.

But when the community-led movement began it was producing just a handful of homes each year.

First that grew to a few dozen, then to a few hundred.

Now, with government on your side, there is no reason why those hundreds cannot become thousands.

No single measure will fix our broken housing market.

But with action on many fronts, with the dedication of many people, we can get there.

It will take time.

But I know that we can do it.

And community-led housing has a serious contribution to make.

There are few sectors that boast the combination of talent and passion that we have here today.

People who are totally committed to making their communities better places to live.

So let’s do everything we can to get even more people involved in community-led housing.

Together with you I want to make the idea of communities building the homes they need not a radical departure, but an everyday reality.

And for the sector to play its part in getting Britain building.

Thank you.