Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2023
Lord Wigley Excerpts(1 year, 2 months ago)
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Lord Wigley (PC)
My Lords, I am delighted to follow the noble Lord, Lord Alton. The figures he just quoted bring home the reality of this to us, and I pay tribute to the work that he has undertaken over so many years in this area. I am delighted to support both the uprating regulations and welcome the 10.1% increase. I am sure the nurses and the teachers would be delighted to have a similar increase if it was in the Government’s ability to do so, but it is good that the value of these payments should be maintained.
Noble Lords will be aware of the provenance of the Pneumoconiosis etc. (Workers’ Compensation) Act 1979. It was driven on to the statute book in the dying days of the Callaghan Labour Government, propelled at that time by the needs of slate quarrymen in north-west Wales. Coal miners suffering from pneumoconiosis had of course been compensated as a result of the tripartite agreement between the NUM, the NCB and the Government in 1975, but no provision was made at that time for workers from other industries suffering similar lung diseases. Slate quarrymen were one such case but there are many other industries where it was relevant.
It was in the few days after losing a vote of confidence by just one vote that Michael Foot, to his eternal credit, ensured that the promise given to Plaid Cymru MPs at that time was delivered in all stages. The legislation went through both Houses in just two days, which was remarkable and very much to his credit. I also pay tribute to the work done by the Transport and General Workers’ Union regional secretary, the late Idwal Edwards, who campaigned vigorously on these matters.
Several thousand ex-quarrymen, who had no remaining employer against whom to take legal action, and their widows have benefited from the legislation and still do. But by now, many more workers in other dust-generating industries are also able to benefit from it, so it would be very helpful if the Minister could indicate how many pneumoconiosis sufferers, by industrial group, receive compensation under the Act over whatever recent period is available. If those figures are not available to him but they are in the department, perhaps he can write as they would, I am sure, be of interest to Members on all sides of the Committee.
By now, the major group of sufferers from lung diseases is that of mesothelioma victims, as outlined by the noble Lord, Lord Alton. Their condition arises from asbestos dust, so it is right that we should debate both these instruments together. Mesothelioma was covered partially in a 1979 order but, rightly, sufferers have demanded specific legislation dealing with the particular nature of that disease. There have been several such steps over the years. It is a vicious condition, as has been described, which can be dormant for many years, without anybody realising it is there, then attack the victim with a ferocity that can kill within months. I have seen that for myself; it happened in the last few months of the life of a very good friend of mine, Peter Wolfe, whom I remember as a teenager playing snowballs with asbestos flakes when our school gym was taken down and rebuilt. That is similar to the story the noble Lord, Lord Alton, recalled being recounted to a previous Committee. Peter died six decades later but only five months after his condition became apparent. That shows the speed with which it can attack.
It is right that asbestos sufferers are covered by legislation specific to their condition, and it is right that it should be uprated and that new ways of helping the victims and families should be developed. Equally important are the steps that the Government are taking to avoid exposure to asbestos dust. The Minister mentioned this; it is so important that publicly owned buildings—schools, colleges and other buildings, even hospitals—are monitored for the dangers in this direction. Perhaps I should mention very gently that there are parts of the Parliamentary Estate where asbestos has been used, and that too should be a matter of some concern to us in all parts of this Committee.
The Minister has told the Committee what is being done to eliminate or at least partly curtail such exposure. Can he give any indication of what the target dates will be for this being finally overcome? That may be too much to hope for, but it should still be the intention, target and aspiration of whoever is in government to take away the cause of the suffering, as well as compensating those who are suffering. Can the Minister give any indication of the anticipated time period until the demand for such compensation, on the present trajectory, would be finally eliminated?
Finally, I return to the slate industry. The demand for slate has increased in the recent past and now the employment profile is on an upward trajectory, interestingly, for the first time in decades. I am glad to say that employment is now being secured for more people, but greater care is being taken to minimise exposure to the dust—and that is to the credit of employers and unions alike. The slate industry landscape of north-west Wales was awarded world heritage designation 18 months ago, which pleased me and other noble Lords, I know, very much. It is worth noting that part of that story was the social dimension, not least the fact that the industrial hospitals provided in three major quarries, starting around 1820, were among the first such hospitals in any industry in the UK.
Today’s uprating regulations should be seen in the context of the social battles to get fair play for those working in particularly dirty and dangerous industries, and the recognition by government that compensation is appropriate. In any way that government can undertake such action, the cause of compensation should be eliminated.
Lord Jones (Lab)
My Lords, I thank the Minister for his thoughtful and succinct introduction. It is always instructive to hear the noble Lords, Lord Alton and Lord Wigley, with their committed and highly informed references to the lump sum payments. On page 4 of the first item on our Order Paper, in lines 4 and 5, I see the magic words that refer to
“increasing the amounts payable under the 2008 Regulations by 10.1 per cent”.
That is really good news. The Minister can be proud of proposing these regulations, which represent a humane approach by a great, undervalued department. Perhaps we can blink at the detail of tables 1 and 2 and contrast those sad figures with the Explanatory Memorandum, which posits words at paragraph 2.1 that must be music to the ear of the recipients or their families. Let us put into Hansard for the record the names of Lewis Dixon of the department and Louise Everett, the deputy director for ESA.
Employment: Disabled People
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Viscount Younger of Leckie (Con)
As my noble friend will know, all employees have the legal right to request flexible working provided they have worked for the same employer for at least 26 weeks. As she will know, under the Equality Act, employers must make reasonable adjustments to ensure that workers with disabilities are not substantially disadvantaged when doing their jobs. This could include a flexible working arrangement; for example, a change to the timing, hours or location of work. I assure her that in December 2022 the Government responded to a consultation that considered changes to this legislation to provide employees with better access to flexible working arrangements.
Lord Wigley (PC)
My Lords, given that a major challenge to the UK’s economic recovery is a significant labour shortage, not least because activity rates for the over-50 age group remain low, is it not in everyone’s interest that those labelled as disabled people should be looked upon for their abilities rather than their disabilities, and helped into the active workforce by the availability of every positive assistance that the state can provide?
Viscount Younger of Leckie (Con)
The noble Lord is right. This is why we have the disability action plan, which, as I said to the noble Baroness, Lady Deech, is distinct from the strategy. A new disability action plan will be consulted on and published this year. It will set out the action that the Government will take this year and in 2024 to improve disabled people’s lives. The noble Lord is right that ensuring that the voice of disabled people is properly heard is a priority for the Government. We will run a fully accessible public consultation on the plan this year.
Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2021
Lord Wigley Excerpts(3 years, 2 months ago)
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Lord Wigley (PC) [V]
My Lords, while I welcome the mesothelioma order, I speak primarily to the pneumoconiosis order, which, as some colleagues may well remember, is close to my heart after the struggle we had between 1974—my first full year as an MP—and 1979 to get the 1979 Act on to the statute book. It was of huge significance for me and my constituency, in which were located many of the slate quarries, working in which had caused many constituents to suffer from silicosis and pneumoconiosis. The Act covered many other industries in which dust caused industrial lung diseases. I also had the Turner and Newall Ferodo factory in Caernarfon—and the noble Lord, Lord Blunkett, referred to the Turner and Newall dimension.
As time is limited, I will ask three brief questions. First, of the cases in which payments have been made in the past 12 months, how many arose from the slate quarrying industry? I realise that it would now be a small minority for two reasons: the scale of the industry has decreased, and many sufferers have either died or have already received benefits. Secondly, can the Minister give any indication as to how many applications have been turned down in the past year, and in those cases, what the main factors were leading to that refusal? Thirdly, and finally, on mesothelioma, can the Minister, who has referred to the impact of Covid on these schemes and referred specifically to lung health checks, please give some clarification as to whether the work of the rapid access clinics, which are vital for early identification of the disease, has been negatively impacted by coronavirus? The Minister has mentioned that time is of the essence. Indeed, it is a vital consideration. I realise that the noble Baroness may not have answers readily at hand, so if necessary, perhaps she could write to me on these matters and put a copy in the Library.
Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2020
Lord Wigley Excerpts(4 years, 2 months ago)
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Lord Wigley (PC)
My Lords, I am delighted to follow the noble Lord, Lord Alton, in this debate. We have campaigned together on many occasions, and I was glad to support his Bill in the past. I came to the mesothelioma question through the death of a very close friend, my school chum Peter Wolfe, who died four or five years ago, within a matter of four months of having been diagnosed as suffering from mesothelioma.
The figure quoted, of 60,000 possible deaths, may be more than the number of deaths in the UK arising from the present flu scare. That puts it into context and underlines the need for us to address it. I have spoken in several debates on this in the past and will not repeat the points I have made. I very much support what was said by the noble Baroness, Lady Thomas, and the noble Lord, Lord Alton, about the need for funding for research in order to minimise the extent of suffering due to mesothelioma and asbestosis. I reinforce the point made about schools. So many schools were built using asbestos, and in Wales, the National Assembly are facing this issue in a number of locations. This has to be tackled, otherwise there will be problems.
I will focus mainly on the pneumoconiosis order, although the two do of course blend into each other. From debates in earlier years on the uprating orders, noble Lords may recall the interest I have in these matters, arising from having represented for 27 years a slate quarrying area in the Caernarfon constituency. They may well also recall the significant involvement that my colleagues and I had in pressing for the Act to be completed in the dying days of the 1974-79 Labour Government—something that my noble friend Lord Jones will well recall.
Lord Jones
The noble Lord will recollect that I was a member of that Administration, which fell on a vote of no confidence.
Lord Wigley
Indeed. Our three votes were not enough to save that Government, but they were enough to help the pneumoconiosis Act find its way through, in two days flat, to the statute book. That that happened is a tribute to Michael Foot, among others. There had been delays all along in getting the Act on to the statute book, but Michael Foot made sure that it went through both Houses within 48 hours—quite a remarkable achievement.
It might interest noble Lords to know that considerable interest is now being taken in this legislation in the context of the bid for UNESCO to accord world heritage status to the slate industry in north-west Wales, in a similar manner to that given to the coal industry’s big pit at Blaenafon. One aspect of interest in the presentation of that case is the way in which the slate quarrying communities led the fight and campaign to secure compensation, not just for slate quarrymen, whose health was undermined by breathing in industrial dust, but for workers in so many other industries. That includes those working in cotton mills, pottery production, foundries and other metal industries, and even some working in the coal mining communities who were not covered by the coal mining scheme.
In recent years we have seen asbestosis and mesothelioma, both covered by the Act, become the predominant part of the payments made under the Act, which I will come on to now.
At the time of passing the 1979 Act, the Government estimated that it would cost £5 million in the first year and, thereafter, £75,000 per year—yes, £75,000 per year. In fact, more than £20 million was spent in the first five years and £30 million over the subsequent 10 years. In the five years from 1994 to 1999, the figure was £25 million. Since then, expenditure under the Act has mushroomed. From 1999 to 2009, £236 million was spent, and from 2010 to 2019, £415 million was spent. A large part of that was clearly associated with asbestos-related diseases, but I have tried by way of Written Questions to identify which payments were related to which industries that come under the purview of the Act—which is a reasonable question to ask—so that we might see how the issue relates to other industries.
I wanted also to establish that the total cost of asbestosis is not only the payments under the 2008 scheme but a large part of the payments being discussed here, which adds to the significance of the need to find a solution for those suffering from mesothelioma. We have a right to know. Certainly, it is not the slate quarrymen who have been the beneficiaries of the huge sums that I have referred to, but they will of course be glad that provision is there is to help others in need. The trigger is asbestosis. Can the Minister confirm that, if those figures are not available now, the Government will undertake to identify exactly what costs are attributable to what industries?
I do not deny for a moment the absolute right of those in any industry who have suffered loss of health and even life as a result of their work to be properly compensated, but questions need to be answered about whether the schemes still help those not affected by asbestosis and to what extent. Perhaps a focus can be put on that. It is also relevant to ask what the total for mesothelioma is between all the schemes and what research budget is needed. It is a large sum, but it needs to be even larger to help those most in need. I would be grateful for the Government’s response.
Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2019
Lord Wigley Excerpts(5 years, 2 months ago)
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Lord Wigley (PC)
My Lords, I am delighted to follow the noble Lord, Lord Alton, and will take advantage of the opportunity to pay tribute to him for the immense work on this matter that he has undertaken in recent years. I too welcome the uprating. On the points raised by the noble Lord, I agree entirely that research should be undertaken. But we should also look at all possible ways to eliminate the causes of asbestos-related diseases.
We are aware of the incidence of asbestos in schools: three-quarters of schools in the United Kingdom have asbestos in them and, every year, some teachers die as a result of asbestos-related diseases. I wonder how many perhaps unidentified children have been affected by this. I do not know how much research has been done on this, but clearly anything that can be done to avoid the disease is better than a cure.
None the less, I welcome the fact that some £130 million has been paid since 2014 in compensation to about 1,000 sufferers—about £40 million of this has come from the insurance industry. But I take very much to heart the point made by the noble Lord, Lord Alton, that research is vital in these areas. The other sphere that could do with more research is MoD buildings. A number of them have been affected by asbestos, and families of servicemen have been hit by the disease.
I move on to the pneumoconiosis order, which I also welcome very much. The circumstances in which we are discussing this are so similar to those in 1979, when the original Act went through. I suspect that I am one of the few people in the Chamber who was involved at that time. There was a striking similarity—a Government without a majority striking a deal with a small party to get this through—and I was so pleased to be in the right place at the right time to help with it. The 40th anniversary reminds us of the tremendous contributions that have been made by this Act—not only to the slate-quarrying community, whose lobbying brought about the Act, but to a number of other workers in industries such as cotton and in kiln-related work, who were also able to get compensation.
The Act arose because, while coal miners had in general been helped by the 1975 tripartite agreement between the NCB, the NUM and the Government, that agreement did not cover other workers suffering from industrial lung diseases. The 1979 Act has paid out millions of pounds by now, and is still being called upon by a whole range of industries. Therefore, it is appropriate that it should be uprated in this way.
There are still some misgivings about other health conditions undoubtedly stimulated by working in such dusty environments. Conditions such as emphysema and chronic bronchitis are not accepted as lung diseases—although they are in all probability generated in many circumstances by that exposure to dust.
There are a couple of points I will put to the Minister; if she cannot answer them now, I would be grateful if she could write to me. First, what is the position of quarrymen who may have worked for periods of time in overseas quarries—such as in the United States or Spain—with regard to entitlement to compensation? The second relates to those who may have worked in the United Kingdom but who may be living in another EU country. How will the changes of Brexit impact on their entitlement to receive such compensation? That said, I support these regulations.
Baroness McIntosh of Pickering (Con)
My Lords, I am always glad to follow the noble Lord, Lord Wigley, who had knowledge of the original Act. I congratulate my noble friend on introducing this instrument.
This has been a very poignant debate, and there is very little I can add to the contributions of those who have spoken with such knowledge. Like the noble Baroness, Lady Thomas of Winchester, I have a close family friend who succumbed to the disease. I was surprised that someone who had worked from a very young age for the Merchant Navy had this disease; where I grew up, he would not have been alone in doing so, because in those days the Merchant Navy offered huge opportunities for learning a trade—as did the Royal Navy. I know that it is not my noble friend’s direct responsibility, but could she reassure us today that the engine rooms of ships in the Merchant Navy do not now pose any danger from asbestos? I would like that reassurance going forward.
I was very disheartened when my noble friend very honestly told us that we can still expect a number of cases each year. The question I will ask her is simple—what is the length of time between the making of the claim and receipt of a payment? This also touches a little on the debate earlier. How would someone such as our family friend know that they are eligible for this compensation if they have not been contacted by their employer? Is there a mechanism in place for this? With those two questions, I would like to give these regulations a fair wind.
Lord Wigley
I was referring to those under the pneumoconiosis compensation scheme, whereby dust has accumulated, perhaps in a quarryman working in Wales for a number of years then working abroad, and the disability only becomes apparent after he has worked abroad.
Baroness Buscombe
Yes. As I said, it has to be demonstrated that the disease was as a result of working in the United Kingdom. If somebody worked for a number of years in the UK and then continued that occupation abroad, I assume that it would be for those who assess an individual’s case to make a reasonable assessment in the circumstances.
A number of noble Lords, including my noble friend Lady McIntosh of Pickering and the noble Lord, Lord Wigley, spoke about the MoD scheme. With a son in the Fleet Air Arm, I have a personal interest in this. It is an extremely good question. Are we being careful to ensure that we are doing all we can to protect our Armed Forces—particularly those in the Navy, on ships? I would welcome a reply from the Ministry of Defence, so I say here and now that I will ask that question with all speed and reply to all noble Lords and place a copy in the Library.
My noble friend Lady McIntosh also asked how long it takes to deal with claims under the 1979 Act scheme and the 2008 Act scheme. Claims lodged under both schemes are dealt with as quickly as possible. For the 1979 Act scheme, which includes diseases other than diffuse mesothelioma, it can take a number of weeks as investigations may be required into the existence of a relevant employer against which civil action may be taken. However, that is still very quick in comparison with civil litigation cases, which of course can take years. Under the 2008 scheme, where there is no need to ascertain the existence of a relevant employer to sue, cases are dealt with very quickly. Dependant claims under both schemes can take longer, as the department may have to await the death certificate or other official confirmation that establishes the cause of death. We are not aware of any general delays or issues with processing claims.
A number of noble Lords touched on what we do to promote awareness of the schemes. The Department for Work and Pensions highlights the availability of the 1979 Act scheme to industrial injuries disablement benefit claimants in official letters. A leaflet is included with the award notice for any of the five diseases covered by the lump-sum scheme, encouraging people to make a claim. All government schemes are publicised on GOV.UK. The department also maintains regular telephone contact with a range of asbestos support groups, and meets their representatives face to face at the annual asbestos forum to discuss the lump-sum schemes.
The noble Lord, Lord McKenzie, asked about the amounts recovered each year by the Compensation Recovery Unit of the Department for Work and Pensions. It recovers around £27 million per year from civil compensation awards. If a mesothelioma claimant subsequently recovers compensation in civil proceedings, the process for clawback of any lump-sum payments is as follows. Once a claim is settled or determined against a compensator, a certificate is requested from the Compensation Recovery Unit that details an amount equivalent to the value of benefits paid in respect of the condition for which the claimant has successfully pursued civil action. The compensator makes a payment of the value of the certificate to the CRU.
The 2008 Act scheme was set up on the basis that it would be funded by compensation recoveries from civil claims. The 1979 Act scheme is funded partly by civil compensation recoveries and partly by the department. It is a long-standing principle that people should not be compensated twice and, in most cases, where social security benefits are paid, they are recovered from compensation where people have been successful in a subsequent civil claim for damages. The net cost to the department of making payments under both schemes in the last financial year, 2017-18, was £22.2 million. Payments totalled £49.2 million and £27 million was recovered.
The noble Lord also asked how many people had benefited from the diffuse mesothelioma payment scheme, how much had been paid out and what was the average award. In the fourth year of operation, 2017-18, the scheme paid out £36 million in compensation to 200 successful claimants, with the average mean award being around £145,000—up from £141,000 the previous year. Since the scheme was launched in April 2014, it has helped just under 1,000 sufferers from mesothelioma, with £133.8 million awarded in compensation.
The noble Lord referred to tax credits and universal credit. Payments made under both schemes are paid by a lump sum and regarded as compensation. Therefore, they are not included as income for the purpose of income tax or tax credits. However, interest arising from the lump sum is subject to income tax and included in the income calculation for tax credits. For universal credit, payments are treated as personal injury compensation and, as I said, disregarded for one year. If they are then placed in a trust, they are disregarded indefinitely.
I hope that I have managed to answer noble Lords’ questions to the best of my ability. I thank all noble Lords for their many and helpful contributions to this debate. The Government recognise that the two schemes form a hugely important part of the support available to people with mesothelioma and certain other dust-related diseases. The regulations will ensure that the value of that support is maintained. I thank all noble Lords who have been supportive of the uprating of the payment scales for these schemes and ask approval to implement it.
Work Capability Assessments
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Lord Freud
We announced earlier this year that there would be no more welfare savings but we would go through with those that had already been announced. The job of the Government is to implement what has been announced, but there will be no more. This Green Paper looks at how we can have a better system of managing health issues with getting people into work. We have got half a million more disabled people into work in the last three years, and we need to keep that trajectory going.
Lord Brookman (Lab)
My Lords, many of us do not speak very often, so maybe I could get in for once. I heard the noble Lord speak yesterday, several times. Nissan has been mentioned. I am interested in the Government’s view on directing steel manufacturers in the UK to produce steel for the Nissan cars in Sunderland. Is that discussion taking place?
Lord Freud
We inherited the work capability assessment, and we have now put it through five independent reviews and developed it considerably. The point at issue in the Green Paper is whether we should combine the assessment of financial need with that of the support that the person needs. That is the main focus of the Green Paper.
Lord Wigley
My Lords, I declare my interest as vice-president of Mencap. Will the Minister confirm that the needs of those with learning difficulties will be given as much attention as those with health problems or other forms of disability?
Lord Freud
Yes. My colleague Penny Mordaunt and I had a conversation on this issue just yesterday. We have slightly more than 1 million people with learning difficulties, with a very low proportion in work— I think the figure is 6%. If we are to start closing the disability employment gap, we have to do something in this area.
Housing: Underoccupancy Charge
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Lord Freud
The noble Baroness has put her finger on a Supreme Court issue, which I will just have to duck today.
Lord Wigley (PC)
My Lords, if it turns out that the funds available to local authorities, which the Minister mentioned, are in fact inadequate to meet the defined needs of disabled people and others who should come within their orbit, will the Government make more funds available?
Lord Freud
We keep this under review and, as I said, we have increased the amount quite substantially for the next five-year period. Currently, local authorities have been somewhat underspending and we get a small return of the money that they do not spend. The bulk of local authorities, at the halfway point of the current financial year, have been spending under 50% of their allocation.
Welfare Reform and Work Bill
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Lord Wigley (PC)
My Lords, I apologise for not having taken an active part in Committee, for reasons outside my control. Noble Lords will be aware of my interest in these areas, and I particularly declare my links with Mencap and Autism Wales. I warmly support the amendment moved by the noble Baroness, Lady Campbell. Attention needs to be given to the matters that she raised for two or three particularly important reasons. All our experience over the past 20 or 30 years has shown that having specific, detailed reports coming forward before Parliament in a coherent manner has enabled a focus to be given to issues relating to disability and, in particular, disability in the context of employment. It has enabled both Houses of Parliament to move forward in making better provision. The recommendations put forward in this amendment are important in that context.
The amendments are timely because, unfortunately, we are seeing a backward movement with regard to the employment of disabled people in many areas. We are seeing, for understandable reasons, the closure of some specific facilities that were available, such as Remploy and other similar organisations, where the argument was that disabled people would be employed within the mainstream and that, therefore, specific provisions did not need to be made in this way. That is fine, provided that that employment in the mainstream is available. However, as we see economic pressure increasing in both the private and the public sectors, the reality is that the number of jobs for disabled people is very often squeezed. I regret to say that in the public sector, jobs that had very often been specifically offered to disabled people because of their difficulties are the first to be cut when financial pressures lead to a reduction in resources and employment. For those reasons, I believe that this amendment, and the one put forward by the noble Baroness, Lady Howe, are important and should be taken on board. The resolution of the issues underlying them should certainly exercise our minds.
Baroness Thomas of Winchester (LD)
My Lords, I, too, am happy to support the amendment of the noble Baroness, Lady Campbell. Although the Bill as drafted requires the Government to report on progress towards their aim of full employment, there is no reference to reporting on the employment of disabled people, even though the Government made a manifesto commitment to halving the disability employment gap, as the noble Lord, Lord Low, has said. This is an ambitious target and, of course, a welcome one, not just for the economy as a whole but for disabled people themselves, whose talents and contributions would otherwise be wasted.
Full employment cannot be achieved without getting more disabled people into work, so why are we not satisfied with the Government’s assertion that the amendment is not necessary because a report on the aim is already in the Bill? It is because we are not convinced by what the Government have told us so far. The current employment rate for disabled people, as we have heard, is about 48%. For those with learning difficulties, it is only 8%, and for those with autism, it is 15%. The gap between the employment rate for disabled people and the rest of the population has remained at about 30% for more than a decade, as the noble Baroness, Lady Campbell, has said.
However, as the recent report Fixing Broken Britain? from Frank Field and Andrew Forsey has shown, existing policies, such as the Work Programme, have not been very successful in finding work for claimants with disabilities. It is estimated elsewhere that only about one in 10 of those on the Work Programme and in receipt of ESA have satisfactory employment outcomes; that is, keeping a job for at least three months. Evidence from Mind indicates that only 8% of people with mental health problems who have gone through the work programme have achieved a long-term job outcome.
The Government originally set a target for contractors of achieving a “job outcome” for at least 22% of ESA claimants. This was then reduced to 13%. Neither target had been met by the end of the last Parliament. The reduction in the number of people supported by the Access to Work programme, the reduction in the number of disability employment advisers at Jobcentre Plus centres and the job opportunities for disabled people in Remploy factories, to which the noble Lord, Lord Wigley, referred, have all played their part in the lack of progress in trying to get more disabled people into work. I fear that other proposals in this Bill will make the situation worse.
While announcements in the spending review on the provision of specialist employment support are to be welcomed, this is going to be offset by a cut of around £30 a week for new claimants in the ESA WRAG. For those whose recovery from, for example, chemotherapy will take some time, this cut in support is likely to push them further from the job market. The Joseph Rowntree Foundation found no evidence that disability employment rates are improved by reducing benefits.
In conclusion, it is unclear from the Bill, and from what Ministers have told us so far, how the Government intend to deliver on their commitment to narrow the disability employment gap. We need those answers and we clearly need this amendment to the Bill.
Employment: Job Creation
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The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
My Lords, I think that we ought to hear from the Lib Dem Benches, and then I am sure that the noble Lord, Lord Wigley, will want to go next.
Lord Freud
Some of the statistics in this area are very interesting, in that among the younger generation the pay gap has disappeared. We will wait to see whether that goes on as that generation moves ahead. The most dramatic fact about female employment in this country is that the rate now stands at 69%, which is higher than the rate for the US for both men and women. That shows how far we have gone with female employment.
Lord Wigley
My Lords, is it not the case that the figures—understandably the Minister is boasting today about the high levels of employment—have taken place in the context of the UK being a member of the European Union? Is it not the case that, if the UK were unwise enough to leave that Union, these jobs would be put at jeopardy?
Lord Freud
My Lords, I am being bombarded with massive books of arguments about the economic effects, as are quite a lot of noble Lords, I imagine. I do not think there is time to go into the detail here.
Olympic and Paralympic Legacy Committee
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Lord Wigley (PC)
My Lords, I, too, place on record my appreciation for the way in which the noble Lord, Lord Harris of Haringey, chaired the committee and the excellent support we were given by the committee clerk and his team, and the two special advisers.
As has been noted, the committee put in a very considerable volume of work at short notice to get our report completed by our deadline. Against that background, the Government’s response is disappointing. On many issues raised by the committee in its unanimous report there was little response more than restating government policy without regard to the report’s rationale. There is little point in incurring a commitment of time and money in undertaking such an investigation if the Government treat it less than rigorously. But, to be even-handed, I note my disappointment that there appears to be no direct comment from the Governments of Wales, Scotland or Northern Ireland, either, although many of the recommendations have a direct bearing on the responsibilities of those devolved Administrations. Of course, they have no obligation to respond. However, the Welsh Government recently took their own initiative. I will return to that in a moment.
I make one general point before addressing six or seven of the 41 government responses. The Olympic Games are awarded to a specific city and not to a country. The ethos of the Games requires that the competitors, and hence the competitions themselves, function within a reasonable proximity of the location at which the Games are held. These aspects are not always fully understood. As the general UK taxpayer had to fund the considerable cost of the Games, there was a feeling sometimes that they should benefit more from a greater spread of the activities. For example, there was no need to build artificial mountain cycling locations in Essex. There are perfectly good natural ones in Wales. Sports such as sailing which, inevitably, had to move away from London could have been held in locations such as Pwllheli, where many European competitions are held.
I accepted that London and south-east England would benefit far more from hosting the Games for those reasons, but perhaps the Government should have been more honest from the start by making that clear to everyone. I also repeat what I have gladly put on record many times: that the Olympic Games and, in particular, the Paralympic Games, were a tremendous success and that everyone involved—competitors, organisers, security services and volunteers and, indeed, both Governments—deserve congratulations.
Perhaps I may make a few brief comments on half a dozen issues arising directly from the Government’s response. First, there are the recommendations relating to sport in schools, to which several noble Lords have already alluded, particularly primary schools. I am looking at recommendations 4, 5 and 6. There does not seem to be any new government thinking on those matters; rather, there is the approach that “We are already doing what we deem appropriate”.
I urge the Government to follow carefully the initiatives taken in Wales arising from the work of the noble Baroness, Lady Grey-Thompson, and her review committee. In fact, just yesterday, the Welsh Education Minister Huw Lewis announced a new £1.8 million physical literacy programme for schools. That is part of the response to the report of the noble Baroness, Lady Grey-Thompson, on schools and physical activity. It is to do four things: increase physical activity in schools; develop a physical literacy framework; involve prominent athletes in community sport; and build on Wales’s annual school sport survey.
The Welsh Government, in taking that strategic initiative, have asserted that physical literacy should be as important as reading and writing, which goes towards the proposal of the noble Baroness, Lady Grey-Thompson, that PE should be a core subject, something which will now be considered by Professor Graham Donaldson in his curriculum review, due shortly. No doubt the noble Baroness will expand on some of those points in her contribution.
However, I welcome the Government’s response 13, dealing with the access to and facilities for disabled people at sports grounds, particularly football grounds. I am glad that the Government are prepared to consider further legislation on licence conditions, and I hope that we will be hearing more about that. Can the Minister —our poacher turned gamekeeper, if I may put it that way—indicate the timescale envisaged to progress that legislative aspect?
I am somewhat disappointed by government response 15. It relates to the identification of the net benefit figures and the committee’s call for them to be published. The response has been woeful. The Government appear to be totally complacent about measuring the economic effects in terms of gross benefit and stubbornly refused to identify the net benefit. I can only conclude that they may have something to hide and that the net economic benefit is a much smaller proportion than the gross figures.
As we are repeatedly told that so many aspects of the project spending would have taken place in due course irrespective of the Games, I can only conclude that such infrastructure spending is being treated coyly to avoid the possibility of generating Barnett consequentials for the devolved Administrations.
On response 32, the committee called for SMEs to be helped in the public sector procurement process by having the “compete for” system permanently available. The Government’s response did not address our worries about the danger to SMEs of the proliferation of procurement tools. Can we be assured that the Government have taken that fully on board and are sensitive to the needs of SMEs, and that opportunities for SMEs will be equally available throughout the UK?
The committee noted in item 33 that south-east England benefited disproportionately from the Games and called on UKTI to assess the reasons for the disparity. The Government defend their record by quoting the number of projects going to Scotland, Wales and Northern Ireland—14%, by number—but they do not give the figures with a breakdown by value and do not address the failure to give northern England a fair deal. That response is rather complacent.
I can, however, welcome the response to point 34 about the need to ensure that tourists coming to the UK get beyond south-east England. I notice that the DCMS has asked VisitBritain to address that issue and I hope that the House will be kept informed of progress.
I turn to response 37, dealing with the committee’s questioning of the existence of any long-term distinct legacy benefit of the Cultural Olympiad. The Government passed the buck in its entirety to the Arts Council of England, and every item that it mentions which has a geographic base is in fact in England. That is perhaps understandable for the Arts Council of England, but the Government are a UK Government, and taxpayers in Wales, Scotland and Northern Ireland contributed to funding the Olympic Games. Surely the Government should have been aware of the need to address legacy issues in terms of the arts and culture in the three other nations, not just in England. Perhaps they have done so and have just forgotten to mention it in their response. Perhaps the Minister can clarify that.
Finally, I address item 39, which concerns the omission, tacitly acknowledged in the Government’s response, on ensuring that the legacy is delivered outside London and that a designated Minister should work with the devolved Administrations. The Government’s response is that it is a matter for the devolved Administrations to make the most of the Games’ legacy in devolved functions, so there will be no additional resources or co-ordination on those matters. I believe that that is letting down a particular aspect of the legacy. I pick out those points and ask for the Minister’s response on them, but there are many other points in the body of the report which I hope will not be forgotten.