Seasonal Unemployment in Torbay: "Smoke and Mirrors"

12.00.00am BST (GMT +0100) Mon 5th Jun 2006

Responding to a statement made by the Department of Work and Pensions (DWP) regarding seasonal unemployment in Torbay, Bay MP, Adrian Sanders, has questioned the figures that the DWP has been using.

Adrian Sanders said;

"I asked the DWP to outline how they propose to help areas like Torbay which experience significant seasonal employment fluctuations and met with unhelpful New Labour spin."

The response to Adrian's question states that unemployment has dropped by 52% in Torbay since 1997 However, figures published in April this year suggest that although the claimant count has reduced by 51.2% since 1997, this year has seen a 28.2% rise in unemployment alone.

Adrian commented;

"Labour is losing a grip on the economy and it's no good relying on the late 90s boom to prop up current figures. People are losing jobs locally and this must be addressed not masked by out of date or 'convenient' figures."

The statement made by Jim Murphy MP said; "…data for winter 2005 shows that the claimant count rate for Torbay was below the national average, at 2.3 per cent"

Adrian said;

"In fact statistics from April 2006 show a claimant rate of 4.1% which far from being below the national average, is in fact above the national average of 3.6%."

The statement from the DWP went on to say; "In addition the number of lone parents in receipt of benefit has fallen by 36 per cent in Torbay over the same period."

Adrian added;

"This is a bizarre statistic to use to artificially boost the Government's fairly weak point. Why would the DWP only choose to highlight lone parent recipients if not to mask the real problem?"

Adrian went on to say;

"The statement also ignored the issue of low pay in areas which are affected by seasonal employment fluctuations. Overall, income support claimants have remained at constant levels in Torbay indicating that people are affected by seasonal unemployment and the corresponding issue of low pay and this issue is not going away."

Average earnings in 2005 in Torbay are only 71.5% of the national average according to the Office of National Statistics.

For 2005, the mean annual gross pay for all employees in Torbay was £17,110 compared to the England & Wales figure of £23,916. Torbay is the 25th lowest earning local authority area in England.

End

Notes to Editors:

The following statement was made by Jim Murphy MP:

Mr. Sanders: To ask the Secretary of State for Work and Pensions what plans he has for addressing seasonal unemployment fluctuations in seaside towns; and if he will make a statement. [72022]

Mr. Jim Murphy: Our successful labour market policies have resulted in a fall of 52 per cent. in claimant unemployment in Torbay since 1997. In addition the number of lone parents in receipt of benefit has fallen by 36 per cent. in Torbay over the same period.

Seasonal unemployment fluctuations are however more marked in seaside towns than elsewhere. Such local economies rely on tourism to provide employment opportunities and investment in the area. This may lead to higher unemployment out of season. However, data for winter 2005 shows that the claimant count rate for Torbay was below the national average, at 2.3 per cent.

Our recently published Green Paper 'A new deal for welfare: Empowering people to work' sets out proposals for piloting new initiatives to help local partners work together to improve economic regeneration through skills, employment and health. The key aim of this initiative will be to provide a solution that offers the maximum degree of local flexibility, so that local areas can provide local solutions to local problems.

Latest unemployment statistics: http://10.160.3.10:81/PIMS/Static%20Files/Extended%20File%20Scan%20Files/LIBRARY_OTHER_PAPERS/RESEARCH_PAPER/RP06-021.pdf

Up to date figures on income support:

Mr. Sanders: To ask the Secretary of State for Work and Pensions how many people in (a) Torbay unitary authority and (b) Torbay parliamentary constituency received (i) housing benefit, (ii) income support and (iii) council tax benefit in each year since 1997. [61511]

Mr. Plaskitt: Housing benefit and council tax benefit information is not available broken down by parliamentary constituency. The available information is in the tables.

Income support recipients in the Torbay council area and in the Torbay parliamentary constituency: each August from1997 to 2005

Torbay council Torbay parliamentary constituency

1997 6,400 4,800

1998 6,300 4,800

1999 6,000 4,600

2000 5,900 4,500

2001 6,000 4,600

2002 5,900 4,600

2003 5,900 4,600

2004 5,800 4,500

2005 5,700 4,400

Notes:

1. Figures are rounded to the nearest hundred.

2. Figures for 1997 and 1998 have been derived by applying 5 per cent. proportions to 100 per cent. WPLS totals.

3. Pension credit replaced minimum income guarantee (MIG) on 6 October 2003. MIG cases have been excluded from the figures to keep the time series consistent.

Source:

DWP Work and Pensions Longitudinal Study (WPLS) and Information Directorate, 5 per cent. samples.

Office of National Statistics: http://www.statistics.gov.uk/glance/

The graph below highlights seasonal fluctuations in unemployment in Torbay: