Pensions Act 2004 and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023
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Viscount Younger of Leckie
That the Grand Committee do consider the Pensions Act 2004 and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, I shall speak also to the Occupational Pension Schemes (Amendment) (Equal Treatment) (Northern Ireland) Regulations 2023, the Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023 and the Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023. These regulations were laid before this House on 18 September 2023. In my view, the provisions in these sets of regulations are compatible with the European Convention on Human Rights.
When the UK left the European Union, much EU law was initially preserved to ensure legislative continuity. Now, however, some pieces of law need to be restated. This is because following the Retained EU Law (Revocation and Reform) Act after 31 December 2023 certain retained EU law addressed in court cases will stop applying. Therefore, to remove any legal ambiguity for occupational pension schemes, DWP is restating the law addressed in three court cases—Allonby, Walker and Hampshire—the former only in relation to the extent that it applies to guaranteed minimum pensions.
We will be debating four sets of regulations: a set of two instructions for Great Britain and Northern Ireland covering the Allonby and Walker judgments and a similar set of two instructions for the Hampshire judgment. At the request of the Northern Ireland Executive, the Government have agreed to legislate on behalf of the Department for Communities in Northern Ireland. I will start therefore with the Pensions Act and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023 and its Northern Ireland equivalent that relate to the Allonby and Walker judgments.
Allonby is about the right to equal pay between men and women where discrimination has arisen in an occupational pension scheme because of legislation on guaranteed minimum pensions—GMPs. Regulation 2 restates the law dealt with in the European Court of Justice’s Allonby judgment, but only to the extent it applies to guaranteed minimum pensions legislation from 17 May 1990 onwards. I will provide a little background, as there are a few things that need to be brought together. First, GMPs, which were a part of the occupational pensions system from 1978 to 1997, are unequal for men and women, reflecting general differences in treatment between men and women in legislation at the time. There are disparities, including the age at which guaranteed minimum pensions can be paid: age 65 for men and age 60 for women. These differences in treatment can result in men and women in identical employment receiving different amounts of pension benefits from their occupational pension scheme.
Secondly, the European Court of Justice’s Barber judgment of 17 May 1990 found that pension benefits must be paid to men and women on an equal basis for pensions earned from the judgment date onwards. This means that pension schemes are required to equalise pensions to correct the unequal impact caused by members having a GMP.
Thirdly, in 2004, the European Court of Justice’s Allonby judgment found that where legislation is the source of discrimination, it is not necessary for a claimant to be able to point to a real-life opposite sex comparator.
This brings us to the Equality Act 2010, which requires schemes to have an equal treatment rule; anything in a pension scheme’s rules that treats one sex less favourably than the other should be read as if it does not do so. However, this applies only when there is a real-life comparator. If a woman wanted to show that she was being treated unequally, for example, she would have to point to a real-life man who was being treated differently. In some pension schemes this was difficult to prove. Noble Lords will remember occupations such as dinner ladies or miners.
Baroness Sherlock (Lab)
My Lords, I thank the Minister for a very helpful introduction to these orders and particularly for explaining the background to the court cases, which will make reading Hansard for this debate a bit more comprehensible than might otherwise have been the case. I also thank my noble friend Lady Drake, to whose comments I shall return, and the noble Lord, Lord Palmer of Childs Hill, whose confidence in my determination to expose the detail and minutiae I trust will not be disappointed.
All these regulations are a product of Brexit, the gift that keeps on giving. I shall start with the draft Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023—the other way around from the Minister. As we have heard, it was prompted by two court decisions: the Hampshire court judgment, whereby the ECJ found that former employees should get at least half the value of their accrued pension benefits if their employer was insolvent before they hit pension age, and Hughes, when the High Court disapplied the cap on PPF compensation for those below normal pension age on the date of the employer’s insolvency.
These regulations amend the Pensions Act 2004 to ensure that affected scheme members receive at least the minimum level of protection due under the Hampshire judgment and remove reference to the PPF cap. Also, interestingly, they clarify how the Hampshire judgment is being implemented by providing a calculation of PPF compensation by reference to a one-off valuation, as approved by the Court of Appeal in Hughes.
As has been noted, action is needed because, under Section 4 of the European Union (Withdrawal) Act 2018, the principles of EU law will sunset at the end of this year and cease to have effect, including where the position has changed as a result of court cases, which is very relevant to us today. The purpose of these regulations is to ensure that the effects of the Hampshire and Hughes judgments will be preserved in domestic legislation. Could the Minister confirm for the record that nothing will change from the current position once these regulations take effect and the relevant EU retained law has sunsetted?
Secondly, paragraph 10.1 of the Explanatory Memorandum reports that the DWP met with a cross-section of representatives of the pensions industry to seek views on its proposed response to the Hampshire judgment. There was broad support for retaining the effects of the judgment—but anybody who has worked in government will know that “broad support” can cover quite a range of views being expressed in the room. Out of interest, was there any opposition to retaining the effects of the Hampshire judgment and, if so, on what grounds? I am just interested in who was in the room.
I have read the draft Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023, which look on the face of it to be identical to the regulations I have just discussed, but amending the Pensions (Northern Ireland) Order 2005 instead of the Pensions Act 2004. Can the Minister confirm for the record that the effect of those regulations will be the same as the other ones, but just in Northern Ireland rather than in Great Britain? When regulations are this technical, it is important for the Committee to hear from the Minister what the intention is rather than just taking my word for it—love of detail notwithstanding.
I turn to the draft Pensions Act 2004 and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023—these are not catchy titles. These regulations were also prompted by court cases. In the Allonby case—I take the Minister’s point that this is being retained only inasmuch as it relates to GMPs, not its broader findings—the ECJ found that an opposite-sex comparator was not needed to demonstrate discrimination, where that was caused by legislation. In the Walker case, the UK Supreme Court found on the basis of EU equality law that legislation could not allow occupational pension schemes to restrict survivor benefits for survivors of same-sex civil partnerships or marriages so that only contributions from 5 December 2005 matter, when these became possible.
Something the Minister said confused me a little. I think he said that the Government were restating the law to avoid and remove any ambiguity. From reading these judgments, I understood that their contents have so far been resting on retained EU law and that, when that sunsets, there will be nothing supporting them. I may have misunderstood, so perhaps the Minister could clarify that. I understood—or perhaps misunderstood —that these regulations were necessary because without them the contents of those court judgments would not be retained.
Presumably, the Government could have amended domestic law to bring it in line with all these judgments. We have had an awful lot of pensions Bills in the last year; presumably any one of them would have been a means for doing this. Can the Minister explain why that did not happen? Since retained EU law rights will sunset at the end of the year, we need changes to be made. These regulations amend the Equality Act to remove the need for an opposite-sex comparator and they amend the Pensions Act 2004 to introduce the same test for unequal treatment when members are entitled to payments from the PPF. They also amend Schedule 9 to the Equality Act 2010 to reflect the framework directive rights with which the legislation was deemed incompatible.
Will the Minister confirm for the record that the effect of these changes is to maintain the position we are in now, resting on retained EU law? Is the position of the survivors of all marriages and civil partnerships now the same, whatever the sex of either the surviving or the deceased member? Is everybody, in any civil partnership or marriage, in the same position, irrespective of the sex of those involved?
These regulations retain one form of protection, as my noble friend Lady Drake articulated, but still we are left with a significant gender pensions gap, an issue to which the House returns periodically. There are various contributory factors, including the carer penalty and the impact of the gender pay gap that means women are more likely to have lower pension contributions. What plans do the Government have for reforms to reduce the gender pensions gap more widely?
One of the contributory factors is the fact that women are less likely to be eligible for auto-enrolment, so will the Minister tell the Committee when the Government intend to implement the provisions of the Private Member’s Bill sponsored by the noble Baroness, Lady Altmann, which enabled the extension of auto-enrolment from age 18 and set contributions from the first £1 of earnings?
As far as I can tell, the draft Occupational Pension Schemes (Amendment) (Equal Treatment) (Northern Ireland) Regulations 2023 seem to mirror the provisions of the previous regulations but amend the Equal Pay Act (Northern Ireland) 1970 and the Pensions (Northern Ireland) Order 1995, instead of the Equality Act and the Pensions Act. Once again, can the Minister confirm that the effect will be the same, albeit just in Northern Ireland?
Finally, I am really interested to hear the Minister’s response to the question from my noble friend Lady Drake: given how close we are now to the end of this year, are there any other areas where DWP has been relying on retained EU law that will be sunsetted in a few weeks? A clear assurance to the Committee for the record would be very helpful on that point. I look forward to the Minister’s reply.
Viscount Younger of Leckie (Con)
My Lords, I thank the three noble Lords who have spoken for their general support for these regulations. The noble Baroness, Lady Sherlock, was right when she alluded to there being an element of complexity but, if I may say so, all four of us have seen through that complexity. I appreciate the general support. Nevertheless, I am very aware that a number of questions were raised and, as ever, I will do my best to answer them, in no particular order.
The noble Lord, Lord Palmer of Childs Hill, asked about the WASPI. I understand exactly why he raised that. He will probably expect the only answer that I can give: we are not able to comment on the status of the WASPI at the moment because, as he will be aware, there is an ombudsman investigation ongoing. He has probably heard me say that in the Chamber before; I wish I could say something different, but I am afraid I cannot go any further.
Lord Palmer of Childs Hill (LD)
Does the Minister have any idea of when we might hear or when the judgment will allow us to say something?
Viscount Younger of Leckie (Con)
I wish I could as well, but it would depend on when the ombudsman is ready to do so, and I am not aware of when that might happen. Of course, we can always ask, but it is fair to say that if we asked, I think we might know what the reply might be. However, that is a fair question.
I said that this was in no particular order. In answer to a question asked by the noble Baroness, Lady Sherlock, on why there is a reference to resolving ambiguity when these rights arose under EU law—that was towards the end of her speech—in the Pensions Protection Fund regulations, references to the compensation cap in the Pensions Act 2004 are removed by these regulations to reflect the decision in Hughes. I hope that makes sense.
The noble Baroness, Lady Sherlock, asked whether I can confirm that the effect is to maintain the current position. Yes, the regulations reflect decisions of judgments relating to the current position.
I think the question that was asked by the noble Baroness, Lady Drake, as well as the noble Baroness, Lady Sherlock, referred to the effect of the Northern Ireland regulations and whether they are the same as the GB regulations. The answer is yes, the effect of the Northern Ireland regulations is just the same as the GB regulations.
The noble Baroness, Lady Drake, asked a very specific question about whether all protections are preserved, and if they are not, which ones would fall away after 31 December 2023. I think that falls into a number of questions she asked about timing, so I hope I can reassure her by saying that, on the timings leading up to 31 December 2023, I am not aware of any issues or concerns over the timing. I hope that gives some reassurance. However, to put a little more into the answer, the noble Baroness may be aware that the Government have decided to allow the Bauer judgment to sunset under the Retained EU Law (Revocation and Reform) Act. This means that former employees whose employer becomes insolvent on or after the sunset date will not have an entitlement under that judgment. However, I reassure her that I am not aware of any other preserved under Section 4 of the European Union (Withdrawal) Act, which I believe she raised.
The noble Baroness, Lady Sherlock, asked whether the Northern Ireland regulations provide the same effect. The answer is yes—I think I have covered that.
The noble Baroness, Lady Sherlock, asked whether anything will change from 1 January 2024 as regards protection provided by the decisions in Hampshire and Hughes, and yes, that is correct. For insolvencies after that date, the same rules will apply because of these regulations.
The noble Lord, Lord Palmer, raised a question about the LEAP exercise, and I hope I can give a slightly longer and more helpful answer in terms of where we are with that. He will know that the DWP became aware of the issue of state pensions underpayments —which was not addressed under previous Governments— in 2020 and took immediate action to investigate the extent of the problem. The Government have fully committed to ensuring that any historical errors are put right as quickly as possible where underpayments are identified, and the DWP will contact the individuals to inform them of the changes to their state pension amount and of any arrears payment that they will receive. My department in its annual report and accounts, particularly for the year 2022-23, published on 6 July 2023 updated figures relating to estimated expenditure and the number of cases affected. The overall number of customers to be reviewed is approximately 678,000; of those, we estimate that 170,000 customers will be affected. Between 11 January 2021 and 31 March 2023, 263,350 cases were reviewed. I can reassure the noble Lord that the department is on track to complete the exercise for category BL and category D by the end of 2023—to get into some granular detail on this. I think I understand that, and I hope the noble Lord will be reassured by it. For missed conversion cases, the exercise will run to late 2024—the end of next year.
The noble Baroness, Lady Sherlock, asked a specific question about whether there was any opposition to retaining the Hampshire judgment. The answer is that there was very little opposition—hardly any, although I am not sure I can give her any more information on that—to retaining it from stakeholders. I think it was to do with the Hampshire judgment that the noble Baroness raised.
Baroness Sherlock (Lab)
On that last point, the Minister mentioned the Private Member’s Bill, but my question was actually about when the Government were planning to implement its provisions—perhaps he could give me a steer on that. I would be grateful if he would read Hansard because, if he thinks that he has answered the questions, I perhaps did not shape them as precisely as I had intended. Could he have a look at that and then come back to me?
Viscount Younger of Leckie (Con)
Most certainly— I am grateful that the noble Baroness has put me right on the precise question. I knew what she was asking at the time. On the timing and where we are with the rollout of the Private Member’s Bill, I do not have that to hand—actually, it has been handed to me, so perhaps I do; it is one I prepared earlier. The consultation on implementation is coming soon—I am aware that a consultation comes out of that Private Member’s Bill—but, in terms of actual dates, I am afraid I cannot go any further. But I hope that that directly answered that particular question. I feel that a letter is due. A lot of questions were asked about exactly how this should be, and I pledge to answer them all fully if I have not done so this afternoon.
Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023
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Viscount Younger of Leckie
That the Grand Committee do consider the Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023.
Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 (Consequential Modifications) Order 2023
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That the Grand Committee do consider the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 (Consequential Modifications) Order 2023.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, I am grateful for the opportunity to debate this order, which is the result of collaborative working between the UK Government and the Scottish Government and supports the Scottish Government’s decision to introduce carer support payment in Scotland.
The Scotland Act 2016 devolved responsibility for certain social security benefits and employment support to the Scottish Parliament. The introduction of carer support payment in Scotland under the Social Security (Scotland) Act 2018 exercises this responsibility. This order is made under Section 104 of the Scotland Act 1998, which allows for necessary legislative amendments in consequence of any provision made by or under any Act of the Scottish Parliament. Scotland Act orders are a demonstration of devolution in action. I am pleased to say that this order is the result of close working between the Scotland Office and the Scottish Government, the Department for Work and Pensions, the Ministry of Defence, His Majesty’s Revenue and Customs and Northern Ireland’s Department for Communities. I thank all involved for the collaborative approach taken to progress this order.
The order makes amendments to relevant social security legislation as a consequence of the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023, which were made on 25 October. I shall refer to these as the 2023 regulations. These regulations replace carer’s allowance with carer support payment for individuals ordinarily resident in Scotland. The 2023 regulations introduce carer support payment in Scotland in a phased approach from this month, beginning with a pilot in three local authority areas: Dundee City, Perth and Kinross and the Outer Hebrides or Western Isles. They have been chosen by the Scottish Government to take initial applications from carers across urban, rural and island communities in Scotland. Further local authority areas will be added to the pilot from spring 2024 and carer support payment will be available across the whole of Scotland by autumn 2024.
Carer support payment will initially operate in a broadly similar way to carer’s allowance. Like carer’s allowance, it will be an income replacement benefit—a payment of £76.75 per week for unpaid carers providing 35 hours or more of care a week to someone receiving certain disability benefits. However, there will be some differences, which I will spell out. First, carer support payment will have a shorter past presence test requiring claimants to have been present in the common travel area for 26 of the past 52 weeks. The requirement for carer’s allowance is to have been resident in Great Britain for 104 of the previous 156 weeks. Those good at maths will work out that that is two out of the past three years. Secondly, some students in full-time education will also be able to claim carer support payment, whereas people undertaking full-time education are not eligible for carer’s allowance, instead being supported through the educational maintenance system. The Scottish Government may choose to make further changes to this benefit in future.
I will now take a step back to consider how many people will be impacted by these changes. DWP is currently delivering carer’s allowance to around 120,000 unpaid carers in Scotland. Around 80,000 of them are currently receiving payments of carer’s allowance. A further 40,000 carers have an underlying entitlement to carer’s allowance enabling them to access additional amounts in other benefits, although they do not get paid carer’s allowance as they are paid other income replacement benefits.
I will now go on to explain the effect this order will have and the provision it will make. This order will ensure that those receiving carer support payment in Scotland are treated the same as those receiving carer’s allowance. The order ensures that carer support payment is a qualifying benefit for the Christmas bonus. It ensures that those eligible for carer support payment are treated as qualifying carers and are eligible to receive the additional amount for carers in an award of state pension credit. It ensures that recipients are not disadvantaged in relation to compensatory payments as part of the HMRC tax-free childcare scheme. The order also ensures that it is not possible for any one person to receive both carer’s allowance and carer support payment at the same time. Similarly, no more than one person would be able to receive a carer’s benefit for care provided to a single individual. There are some benefits, administered by Veterans UK, that overlap with carer support payment; this order makes provision to ensure that an individual cannot receive these overlapping benefits at the same time.
The order makes equivalent provision in Northern Ireland in respect of those policy areas that are transferred to Northern Ireland. This is because, when a claimant moves to Northern Ireland they will continue to receive carer support payment for 13 weeks from the date they move while they apply for carer’s allowance. In that time, their carer support payment benefit will continue to attract the related entitlements. The 13-week run of support will also be available when carers move from Scotland to elsewhere in the UK.
In summary, this order makes amendments to UK legislation to support the introduction of carer support payment in Scotland. It ensures that the new Scottish benefit is able to operate effectively and that its recipients are treated equitably. I commend the order to the Committee and beg to move.
Lord Palmer of Childs Hill (LD)
My Lords, I once again thank the noble Viscount for the detail of what the statutory instrument does and does not do. It seems to me that it purely ensures that the carer support payment in Scotland is treated the same as carer’s allowance. That seems to be a good idea. I cannot see why anyone could disagree. It also seeks to ensure that there is no double claiming by playing one set of regulations off against another set. I would be grateful if the Minister could confirm my understanding of that is correct because, if it is correct, it seems very sensible. Could he come back to Parliament or write about how these regulations are being observed and give examples of success or failure? I think that to some extent his final comments cover this. I think he was referring to what had happened in the past. I am looking forward to an ongoing report about how these new regulations will help and to examples of success or failure. They need to be monitored in some way. I hope the Minister will be able to oblige as the situation evolves.
Viscount Younger of Leckie (Con)
I start again by thanking both the noble Baroness, Lady Sherlock, and the noble Lord, Lord Palmer. This is familiar territory but I thank them for their broad support. I will attempt to answer the questions that were raised, again in no particular order.
The first question raised by the noble Lord, Lord Palmer, was simply what this order does. I tried to set that out in my opening statement but perhaps I can answer it in a different way. This particular order, and an associated negative Section 104 order, makes provision in reserved areas to ensure that the 2023 regulations are fully operational at the time of implementation. It ensures that individuals in receipt of carer support payment are treated, as I said earlier, in the same way as individuals in receipt of carer’s allowance. That might answer a question that was raised by the noble Baroness, Lady Sherlock, on the treatment. It is similar treatment but in my opening remarks I alluded to some differences that were going to come through from the Scottish Government, particularly in terms of the treatment of students. As we know, of course, there are different educational arrangements for students in Scotland compared to England. I hope I made that clear in my opening remarks, in terms of the—
Baroness Sherlock (Lab)
Just to clarify, what I was trying to say in the question was that the Minister had identified a couple of areas—one about residence requirements, the other about students—where people who are not currently entitled to claim carer’s allowance would be able to claim the new benefit. I was asking whether it was also the other way round; is there anyone who would not be entitled to the new benefit who is entitled to carer’s allowance, and if so, whose job is it to contact them? The Scottish Government would arguably have no locus in relation to them.
Viscount Younger of Leckie (Con)
I must admit—please forgive me—that I thought that was a separate question, but I remember it and I shall try to answer it at some point.
The noble Lord, Lord Palmer, asked whether the order ensures that there is no double claiming. He wanted me to confirm that there is no double claiming, double counting or duplication—and I can confirm just that. I hope that I set that out in my opening remarks as well; that is also the aim, and also comes about from the very close collaboration of working that we have with the Scottish Government and, indeed, other parties that I mentioned in my opening speech.
The noble Lord, Lord Palmer, asked about the future, as did the noble Baroness, Lady Sherlock. On learning lessons and what we will gain from this order, particularly looking north of the border, can I say two things? One is that I have no doubt that there will be a way of finding out whether the three pilots mentioned were successful, however one might define that. I confirm that it is very much a matter for the Scottish Government — so this is an enabling series of regulations, which will enable the Scottish Government in a devolved manner to do what they feel is right. But I have no doubt that there will be a way in which we can find out.
On the noble Baroness’s point about learning from this—absolutely, she makes a very good point. When these different regulations are made in the right and proper way for the devolved nations, we should and will be, with our close collaboration, learning from any lessons that might be beneficial for us in England.
The noble Baroness asked how people should apply for the carer support payment. The application process is a matter for the Scottish Government, and questions on this should be addressed to them. That is not entirely helpful, but it falls in line with my point, which is that this is enabling the Scottish Government to make the changes that they will take forward themselves.
Baroness Sherlock (Lab)
I was trying very carefully to ask questions of the Minister that related to his responsibilities and those of DWP, not the Scottish Government. I was not asking about how somebody would go about applying for the new benefit. There was reference in the order and Explanatory Memorandum to people being transferred from carer’s allowance to the new benefit. Until someone is transferred, the DWP has a responsibility for them. I was asking whether they could make any contact with those to whom they are currently paying carer’s allowance or whether they were leaving that entirely to the Scottish Government.
Viscount Younger of Leckie (Con)
Unless there is a ready answer to that, I think that gets into the granularity of the transfer process, and I shall need to write to the noble Baroness to give her some proper information on that. Again, I make the point that there is a close collaboration between the UK and Scottish Governments. It is a fair question, and I think that I need to get some granular detail on that.
The noble Baroness, Lady Sherlock, asked about impact assessments. The answer is that orders made under the Scotland Act 1998 usually do not in themselves have a direct or indirect impact, whether benefit or cost, on businesses, charities or the voluntary sector, and would not therefore have a regulatory impact assessment. This is the case for this particular order. The noble Baroness may be aware—and I just want to confirm—that this is quite usual for constitutional measures in this respect. Implementing this order is not expected to have an impact on business, charities or voluntary bodies, and there is also not expected to be a significant impact on the public sector. The appropriate impact assessments were undertaken for the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023, when these regulations were prepared. No further assessments were required, as this order is a consequence of the 2023 regulations.
I have a couple of other questions that I should like to answer, which may help the noble Baroness with one of her earlier questions. I was asked when the Scottish Government would start and complete the transfer of individuals from carer’s allowance to the carer support payment. This may be helpful—I hope that it answers the question. From February 2024, the Scottish Government will begin the process of transferring the awards of around 130,000 people getting carer’s allowance in Scotland to carer support payments—it will be initiated by them. This will include around 40,000 carers with underlying entitlement only—carers who have entitlement to carer’s allowance but are receiving another overlapping benefit instead. Case transfer is a joint project between the Scottish Government and the DWP, which we intend to complete as soon as possible, while ensuring that the process is safe and secure. Case transfer for all disability and carer benefits remains on track to complete by the end of 2025.
The noble Baroness asked about similarities and differences in eligibility between the two benefits. I covered some of that in my opening speech, but this might answer one question that she asked. No one is eligible for the carer’s allowance who is not eligible for the carer support payment. That may be the succinct answer that she was looking for.
I hope that I have answered all questions. Again, as ever—with the number of questions that the noble Baroness rightfully usually asks—I normally look, and this case will definitely look, at Hansard, to be absolutely sure that I have answered them all. In the meantime, I beg to move.
Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023
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That the Grand Committee do consider the Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023.
Occupational Pension Schemes (Amendment) (Equal Treatment) (Northern Ireland) Regulations 2023
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That the Grand Committee do consider the Occupational Pension Schemes (Amendment) (Equal Treatment) (Northern Ireland) Regulations 2023.
Health: Migraines
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Lord Londesborough (CB)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and declare an interest as a migraineur.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, NHS England estimates that 10 million people live with migraine in the UK, and that 3 million workdays are lost every year due to migraine-related absenteeism, which costs almost £4.4 billion. The Government are focused on supporting people with health conditions, including migraine, to remain and thrive at work through initiatives such as the Disability Confident scheme and the expanding access to quality occupational health provision and through evidence-based NICE guidance, which supports healthcare professionals and commissioners.
Lord Londesborough (CB)
I am very grateful to the Minister for his response to a Question that was last asked in this House in 1961. Fast forward 60 years, and the NHS devotes less than £200 million a year to treating a condition that, as the Minister says, affects 10 million people in the UK—many undiagnosed—and which costs us, according to my figures, backed up by the Migraine Trust, some £10 billion per annum. That figure comes from adding the fiscal and health burdens to the widespread loss of productivity across the economy. Given the slow and limited access to effective treatments, the lack of GP training and a shortage of neurologists, does the Minister agree that this invisible disability deserves much greater priority and resourcing across the NHS?
Viscount Younger of Leckie (Con)
I first congratulate the noble Lord for highlighting an important matter that has eluded the acute collective mind of your Lordships’ House at Questions for far too long. To add to what the noble Lord was saying, the House may know that migraine is the third most common disease in the world, behind dental caries and tension-type headaches. To answer his Question, I reassure the noble Lord that migraine and neurological conditions more generally are taken very seriously by the NHS. The Getting it Right First Time programme’s national specialty report on neurology makes specific recommendations on migraine care and is complemented by the NHS RightCare headache and migraine toolkit.
Lord Allan of Hallam (LD)
My Lords, the NHS website helpfully provides real-time information on wait times for headache and migraine referrals. Less helpfully, these currently range between 33 weeks and 53 weeks in my area of England. Is the Minister concerned about the impact of these wait times on the workforce, and would he support making structured headache services available in primary care so that we can try to get people to treatment more quickly?
Viscount Younger of Leckie (Con)
The noble Lord makes a very good point. Those who unfortunately suffer from migraine—as we know it comes in different types, stages and forms—can call 111, go to their GP if they can get an appointment quickly or go to their local pharmacy. I hope the noble Lord will find it helpful that the NHS workforce plan, announced recently, includes £2.4 billion funding over the next five years and provides projections for the help needed for dealing with such conditions.
Lord Hunt of Kings Heath (Lab)
My Lords, the noble Lord’s original Question focused on the impact on the workplace. There is a lot of evidence from the Migraine Trust that employers are very unsympathetic to employees suffering from migraine. Does the Minister agree that, if the Government are to take forward a more cohesive strategy, education and working with employers to understand the impact of migraine on many of their employees may well pay dividends?
Viscount Younger of Leckie (Con)
The noble Lord, who has more experience in these matters than me, is quite right. My understanding is that, where an employee suffers from migraine, if the employer does not take it seriously or make certain allowances, this has a great detrimental effect on the employee. The noble Lord will know that the law says someone is disabled if they have a physical or mental impairment that has a
“substantial and long-term adverse effect”
on their
“ability to carry out normal day-to-day activities”,
including work. There is work to be done engaging more with employers to make sure they have that understanding.
Baroness Sherlock (Lab)
My Lords, can we clear that up? The Migraine Trust has had many sufferers saying they have been discriminated against at work. Some are forced into part-time jobs or even out of work. Given that the top triggers for migraine in the workplace include lighting, noise, stress, screens—things that employers could control—is the Minister concerned that, according to a Migraine Trust survey, over half of people affected said their employer had not made reasonable adjustments for them to stay at work, even though, as the Minister has just said, the law requires them to do that? What does he have to say to that?
Viscount Younger of Leckie (Con)
The noble Baroness is completely right. This follows on from my answer to the noble Lord. It is very important that employers get the message that they must make reasonable adjustments. It also brings into question whether someone should say that they are suffering from migraines when, for example, they go to an interview. Nobody has to tell their employer or potential employer that they are disabled, where that would be the right word to use. As I have said, more work must be done to ensure that employers have a greater understanding. It is of course in their interests to do so because, with that understanding, the employee’s productivity will be greater.
Baroness Bennett of Manor Castle (GP)
My Lords, the Migraine Trust and others are highlighting the fact that, as well as new drugs coming through the treatment pipeline, there is the—quite complex—possibility of treating migraine through diet. This is a very complex area. The chair of the British Association for the Study of Headache is calling for a nationally agreed educational framework and quality standard for primary care. Does the Minister agree with me that it would make sense to give GPs and other health professionals the tools to approach this in an organised way using the best possible treatments?
Viscount Younger of Leckie (Con)
The noble Baroness is quite right. It allows me to say—I asked about it during briefings—that GPs are given regular updates and training on how to treat migraines. I also asked as to whether the training was taken up properly by GPs, who we know are under pressure, and the answer is yes. Coming back to pharmacies, greater training is being encouraged and given by the Government to be sure that those who work in pharmacies have a greater understanding in terms of giving direct and more immediate treatment for migraines.
Baroness Meacher (CB)
My Lords, migraine is indeed unpleasant, but does the Minister have any estimate of the number of people who suffer from chronic fatigue syndrome in this country? It is a deeply serious affliction that certainly prevents people from working for long periods and there is no effective treatment. Can he comment on the numbers and research into treatment?
Viscount Younger of Leckie (Con)
I might be able to help the noble Baroness in some way. It is estimated that 190,000 migraine attacks occur every day in the UK. Over three-quarters of people who get migraine have at least one attack each month. Chronic migraine—it is a justified question—when a person gets a headache on 15 or more days a month, eight of them migraine, is less common but affects about two in 100 people.
Lord Blunkett (Lab)
My Lords, I have a non-pecuniary interest to declare. All this discussion on the advice that employers clearly need surely leads us to believe that we need a national occupational health programme, which could save tens of billions of pounds. Does the Minister agree?
Viscount Younger of Leckie (Con)
I will certainly reflect upon that and take it away, but I have given some idea as to the work we are doing with employers and—I say again—it is an incredibly important issue for all employers, particularly small businesses. There are 5.4 million or so of those in this country, for which there is little access to occupational health—something I could talk about another time—where advice needed for employees who suffer is better given.
Baroness Blackwood of North Oxford (Con)
My Lords, I declare my interest. I have had well-controlled chronic migraine, which was not managed until I was able to access a specialist. It was welcome that NICE recently approved a new drug for acute migraine and noted that the condition affects every aspect of life. Currently, when triptan is ineffective, there is no further standard treatment and people are advised to see a specialist. However, there is a significant shortage of access to those specialists and long waiting lists. I return to the question from the other side of the Chamber. What can we do to improve access to those specialists, get more migraines under control and those people back into the workplace? What would the Minister’s response be to the provision of something like migraine hubs such as those we have for musculoskeletal conditions?
Viscount Younger of Leckie (Con)
Indeed. Just to echo what my noble friend said, as she will know, migraine treatments include painkillers such as ibruprofen and paracetamol, medicines called triptans, to which she referred, and medicines including anti-emetics which stop one feeling sick. More than that, I allude to the NHS national workforce plan, whereby we have a long-term vision for the training required and individuals that we need to help deal with this difficult affliction.
State Pensions: Canada Free Trade Agreement
Viscount Younger of Leckie Excerpts(7 months ago)
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Lord Thomas of Gresford
To ask His Majesty’s Government whether they intend to take steps to index United Kingdom state pensions to inflation for those entitled to them living in Canada, as requested by the government of that country in order to facilitate the proposed new free trade agreement.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, state pensions are not in the scope of the negotiations on a free trade agreement with Canada. The UK state pension is payable worldwide to those who meet the qualifying conditions, without regard to nationality. The amount is based on an individual’s national insurance record. UK state pensions are uprated overseas only where there is a legal requirement to do so. The Government have no plans to change this policy.
Lord Thomas of Gresford (LD)
My Lords, the Canadian Government say that, over the past 30 years, they have made repeated efforts to persuade the UK Government to do what they do for their own citizens: to index the UK pensions of UK retirees who are resident in Canada. On what principle do the Government distinguish between our pensioners in Canada, Australia, New Zealand and certain Caribbean Commonwealth countries and those whose UK pensions are not frozen—in the USA, for example, and, as reinforced in the recent Brexit trade agreement, in the 27 countries in the EU?
Viscount Younger of Leckie (Con)
The rate of contribution paid has never earned entitlement to indexation of pensions payable abroad. This reflects the fact that the UK scheme is designed primarily for those living in the UK. In drawing up expenditure plans for pensioner benefits, the Government believe that their responsibility is primarily towards pensioners living in this country. The UK’s current social security arrangements with Canada provide for individuals coming to the UK to use periods of residence in Canada for the purposes of entitlement to the UK state pension as well as certain other benefits.
Baroness Seccombe (Con)
My Lords, will my noble friend the Minister tell the House that we do fulfil our legal obligations to our overseas pensioners?
Viscount Younger of Leckie (Con)
Yes, I can certainly give some reassurance on that to my noble friend. She may know that the policy has been challenged in the courts, and the Government’s long-standing position has been upheld by the High Court, the Court of Appeal and the Appellate Committee of the House of Lords in 2005, as well as the European Court of Human Rights in 2008, following a further challenge.
Lord Vaux of Harrowden (CB)
My Lords, this goes way beyond Canada. Does the Minister agree that people who have worked and paid national insurance all their lives have earned their state pension? Can he therefore answer the earlier question, which he did not really answer: why, if you choose in retirement to go and live somewhere else, should you not receive what you have earned in full and on the same basis as anybody else?
Viscount Younger of Leckie (Con)
This issue goes back to what has happened in the past. The distribution of reciprocal agreements with countries is based on historic ties with those countries and the levels of labour and people mobility flows at the time that the agreements were concluded. We therefore very much have to look back at that, but I reiterate that we have no plans to include this in current or future free trade agreements. I also say to the noble Lord that, as he will know, if we look at the overseas territories, for instance, due to past, historic arrangements, Bermuda, Gibraltar and the sovereign base areas of Cyprus are included, but the rest are not.
Lord Sahota (Lab)
My Lords, I know quite a few members of the Asian community who have worked all their lives in the UK, paid their national insurance and taxes here but, after retirement, have moved to Canada because the Canadian immigration system is far more flexible when it comes to joining blood relations and families together. As a former leader of a council, I know how high the cost can be for a taxpayer for adult social care—sometimes as much as 50% of the revenue budget of a council. Therefore, when some of these UK pensioners move to Canada, UK taxpayers save millions of pounds in not having to look after them in their old age; that burden falls on Canadian taxpayers. After all, they have paid their taxes and their national insurance, why can their pensions not be inflation-proof?
Viscount Younger of Leckie (Con)
I am certainly very aware—this perhaps adds to the Answer I gave to the noble Lord, Lord Thomas—that the Department for Work and Pensions has received requests for a reciprocal social security agreement from Canada in recent years, including 2020, 2021 and, indeed, this very year. The choice of moving to another country—let us say, Canada—is very much a personal choice and it is not for the Government to encourage or discourage pensioners in moving overseas. I am sure they do so for reasons other than necessarily to do with pensions; it could be to do with family or returning to a country of birth. But, I say again, the Government have no plans to change the policy.
Lord Palmer of Childs Hill (LD)
My Lords, I hear what the Minister says, but the APPG on frozen pensions said in its report in 2020 that 80% of people retiring to Commonwealth countries—Canada, New Zealand and Australia, together with various Caribbean countries—were unaware that their UK pensions would be frozen. Can the Minister tell us what steps the Government have taken since then to publicise their likely predicament? I inform this House that the Government’s website contains no more than a passing reference to this and, like all passing references, it is in brackets. Can we at least remove the brackets and put it in bold type?
Viscount Younger of Leckie (Con)
My Lords, whether there are brackets or not, obviously I will need to go back and check myself what the website says. As I say, people move abroad for many reasons and, before they do so, I am certain that they look at all the pros and cons. It is also their responsibility to take advice and make an informed decision before they move. However, I hope it gives some reassurance that there is information—I hope it is not limited—on GOV.UK as to what the effect of going abroad will be on entitlement to UK state pensions. That is, as I say, just one factor that people will be bearing in mind when making that decision, difficult or otherwise, to move from the UK.
Baroness Sherlock (Lab)
My Lords, to come back to Canada for a moment, this was quite an issue in the Canadian media—I am sure the Minister has read the cuttings—but is he aware that last year the Canadian media reported on a woman who got a letter from the DWP telling her that her pension was being stopped and there was no right of appeal? The reason was that she had failed to reply to a letter demanding she return a certificate proving she was still alive. It then turned out that this had happened to thousands of people, none of whom had got the letter. The Canadian media reported that the DWP blamed the Canadian postal system, but this must be a challenge: if you never get a letter, you do not know you are meant to reply to it. You cannot send the certificate back, then you get a letter telling you your pension is over and you cannot appeal, and the DWP will communicate with you only by post. Has this been resolved and how can future pensioners be sure they do not get caught the same way?
Viscount Younger of Leckie (Con)
I cannot deny that the noble Baroness makes a very good point. I will certainly go back and look at the specific case she has raised. I think she is saying that it extends to others, and I will certainly look at that. As far as I am concerned, the Government should be—and I will check on this—making every communication available for individuals who are seeking to move abroad, particularly to Canada, to have as much of the correct information as possible that they need in order to make all the decisions to make that move.
Lord Cormack (Con)
My Lords, is my noble friend aware that a number of Members of your Lordships’ House have received letters signed by some 25 Canadian Senators? Did he receive such a letter? If he did, will he be kind enough to put a copy of his reply in the Library? If he did not, I will let him have my letter and perhaps he can do it with that.
Viscount Younger of Leckie (Con)
I can reassure my noble friend that I have received my own letter: actually, it happened to be today, because we have been away. I am already on it and I will certainly be replying to it. I shall be passing it to my officials and making sure that there is a response, and I will certainly make sure that my noble friend is copied in.
Viscount Waverley (CB)
My Lords, can the Minister help me understand why pension arrangements have anything to do with free trade agreements?
Viscount Younger of Leckie (Con)
If I have not said it before, I assure the noble Viscount that actually the two are separate: social security arrangements linking to pensions are separate from free trade agreements. I think I alluded to that in one of my answers, but let me make it completely clear.
Lord Russell of Liverpool (CB)
Last Thursday, I was in Strasbourg at the Council of Europe as part of the UK delegation. A group of Canadian parliamentarians very kindly invited a group of the UK members to lunch, and noble Lords may guess what the subject of the lunch was. I was sitting opposite a Senator who launched into a diatribe about the pensioner situation in Canada, and on my left was a female MP from an agricultural constituency who was bemoaning the fact that Canada imports a certain amount of British beef but is unable to export any beef to us at all. So, whatever the Minister and his department may think, there is indeed a very strong connection in the minds of the Canadian Government between the two.
Viscount Younger of Leckie (Con)
Yes, and I understand how they might wish to make that connection, but I reiterate again that we see no connection. In fact, the agreements that have been put in place in the past have been social security agreements. I also say gently to the noble Lord that the agreement between the EU and Canada is not dissimilar to the current agreement between the UK and Canada.
Employment and Support Allowance
Viscount Younger of Leckie Excerpts(7 months ago)
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Lord Young of Cookham
To ask His Majesty’s Government what progress has been made on getting those on Employment and Support Allowance into work.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, in 2017 the Government set a goal to see 1 million more people in work by 2027. Last year, we surpassed that goal five years early. The Government have a range of initiatives to support disabled people and people with health conditions to start, stay and succeed in work. This includes work to further join up employment and health systems, including employment advice in NHS talking therapies and individual placement and support in primary care.
Lord Young of Cookham (Con)
My Lords, I welcome the initiatives taken since 2017 to help back into work those who can and to support those who cannot with appropriate measures without penalising them. But is there not a worrying underlying trend in a country that ought to be getting healthier? There are now 2.5 million people out of the workforce due to long-term sickness; that figure is up half a million in the last four years. Last year, there were double the number of new claimants for disability as against the year before. In the last six months, over half those under 24 in work have taken time off because of mental illness. In the last Budget, I welcomed the £2 billion allocated to support back into work those in poor health, but can my noble friend explain how that initiative will reverse the trend I have mentioned in the interests of those who are out of work but also in the interests of the wider economy?
Viscount Younger of Leckie (Con)
The House will not be surprised when I say that that is one of the Government’s biggest challenges—that is very clear. People with long-term sickness are some of the hardest to help and often face multiple barriers in returning to the labour market. There is a range of complex and interacting factors that contribute to the rise in economic inactivity due to long-term sickness, such as changes in population demographics and the increasing prevalence of work-limiting health conditions. On my noble friend’s question, regarding the support in the spring Budget, announcements included Work Well and universal support, and we have increased our support in particular for helping people to get back into work, where they can, with additional work coach time. There are other multiple national strategies and initiatives, including Excellence in Continence Care and the major conditions strategy, and we are moving at pace on a number of these initiatives.
Baroness Lister of Burtersett (Lab)
My Lords, employment and support allowance is one of the working-age benefits potentially under threat because it is rumoured that it may not be inflation-proofed next year, given the inflation rate announce d today. Given that many benefits have already been subject to a series of cuts since 2010 and the growing evidence of acute hardship among recipients both in an out of work, will the noble Viscount make the case within government for full inflation-proofing as strongly as possible?
Viscount Younger of Leckie (Con)
I should remind the noble Baroness that we uprated by 10.1% in 2023, and I take her point. I can reassure her that the process leading up to April 2024 is beginning; I have no doubt that the Secretary of State will be looking very carefully at all the evidence, and announcements will be made at the appropriate time.
Baroness Browning (Con)
My Lords, I declare a long-standing family interest in ESA, particularly in the support group. I venture to offer my noble friend some advice, as I could write not just a book, but a series of books on applications to ESA. The Government need to make sure that they employ people who fully understand the medical conditions they are dealing with. To give a quick example, it is no good having so-called doctors asking people who suffer from epilepsy and epileptic seizures whether they can get in and out of a bath. When the reply comes, “As someone with epilepsy, I am advised not to get into a bath of water”—for obvious reasons—the reply comes back, “Just pretend you don’t have epilepsy. Could you get in and out of a bath or not?” It is not just a joke—it is tragic, because it causes the most appalling problems for many disabled people.
Noble Lords
Viscount Younger of Leckie (Con)
I have listened very carefully to my noble friend and have every sympathy. It might help to know that we are looking very carefully at the descriptors for those who are disabled and who may or may not be able to return to the workplace or even take up work. Those descriptors, as part of the WCA, are being particularly considered in terms of the focus on mobility, continence and social engagement. A lot of work is going on in this area; it is being done at pace but also with a great deal of empathy and care.
Baroness Sherlock (Lab)
My Lords, let me follow on from what the noble Baroness, Lady Browning, has very movingly said. As the noble Lord, Lord Young of Cookham, described, we are now in a position where those who are out of the labour market long-term because of ill health are the single biggest challenge facing our economy. Whenever we have this conversation, the Minister mentions different initiatives. However, as we now have 2.6 million people who are out of the labour market long-term, and we know that, for example, 23% of them want a job, that is 600,000 people who are desperate to get back to work but need appropriate help. Instead of having a series of schemes, is it not time to make sure that the core DWP, jobcentres and all the staff understand what they are dealing with when it comes to applications and to helping people to get back to work? The country needs it, and so do they.
Viscount Younger of Leckie (Con)
That is exactly what we are doing. We have been recruiting at pace more experts for the jobcentres and, as the noble Baroness will know, are consulting on the conditionalities and descriptors. It is quite right that we engage with the public and other stakeholders to make sure that we get this right. She will know that the WCA focus is a more rapid matter compared to the National Disability Strategy, which is a much more long-term thing. We are taking this very seriously; she is quite right to point this out, but a lot is going on and it will lead to results.
Lord Palmer of Childs Hill (LD)
My Lords, to follow on from various other questioners, the jobcentre work coaches will make referrals to the new programme, which the Minister has referred to. There is then initial assessment and then they receive wraparound support. All this sounds very good on paper, but how even-handed will the training and monitoring of these people, who will be assessing people’s future, be across the UK?
Viscount Younger of Leckie (Con)
I am not sure about the definition of “even-handed”, but I reassure the noble Lord that it includes training the experts in the jobcentres in dealing with the individuals they are looking at with a great deal of empathy and sympathy. We know that one in four people who are disabled wish to come into work; it is a question of making sure that the assessment is correctly done, that the individuals concerned buy into it and that employers are engaged in taking them on.
The Lord Bishop of Sheffield
My Lords, one such initiative that supports people with a health condition to find and remain in paid employment is called Working Win. It has been piloted in South Yorkshire, and I am assured that both the DWP and the South Yorkshire Mayoral Combined Authority consider the pilot to have been a success. What plans do the Government have to roll out this health-led employment programme more widely?
Viscount Younger of Leckie (Con)
Although I do not have information on that specific programme here, I will certainly write to the right reverend Prelate. It no doubt fits in well with and complements many of the other initiatives we are taking, including, as I mentioned earlier, the work coach support, the disability employment advisers, the Access to Work grants and the Disability Confident scheme—I could go on.
Lord Sikka (Lab)
My Lords, in May 2010, 527,000 people were claiming the employment and support allowance. At that time, the NHS England waiting list was 2.5 million; now, it is 7.8 million and 1.63 million people are claiming the allowance. Clearly, there is a correlation between the two statistics. Can the Minister explain why the Government have failed to address the main cause—the degradation of the NHS?
Viscount Younger of Leckie (Con)
This is much more of a health matter, but we in the DWP are focusing on getting the 2.5 million back into work, should they wish to.
Baroness Redfern (Con)
My Lords, getting more people into work requires resources and training for those on the front line, particularly those in jobcentres. However, surely as important are the contacts made with employers, so what is my noble friend’s assessment of progress in empowering national and local employers to take on more disabled people?
Viscount Younger of Leckie (Con)
There are a few initiatives, such as the Disability Confident scheme, which I have alluded to. Increasing access to occupational health is a very important initiative which particularly requires focus on small and medium-sized enterprises that do not normally have occupational health. I also mentioned Access to Work; it is very important that we empower and encourage businesses to take on those who are disabled.
Pensions (Extension of Automatic Enrolment) (No. 2) Bill
Viscount Younger of Leckie ExcerptsMonday 18th September 2023
(8 months ago)
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Baroness Sherlock (Lab)
I thank the noble Baroness, Lady Altmann, for piloting the Bill through this House and I share her thanks to the Minister and his team, and all noble Lords who participated. Auto-enrolment is a much-loved child with more than one parent. As the noble Baroness said, the work came from the Pensions Commission, set up by the last Labour Government and on which my noble friend Lady Drake and the noble Lord, Lord Turner, served with such distinction. The coalition Government implemented it in 2012, and there has been a welcome growth as a result in the number of people saving for a pension. We can all celebrate that—but, as we noted at Second Reading, pensions adequacy is still an issue, so we need to look at continually improving auto-enrolment and addressing the question of the gender pensions gap, which remains a matter of serious concern.
This simple, permissive Bill would allow the Government to make progress in fulfilling their commitment by implementing some of the 2017 review measures, namely reducing the lower age limit for being auto-enrolled and removing the lower earnings limit. The Minister confirmed at Second Reading that the Government were still committed to doing that in the mid-2020s. Without wishing to be depressing, as 2023 begins its descent towards the sea, I wonder if the Minister can give us any hint as to whether 2024 might be the year, or is this gently rolling into the grass beyond the election?
The Opposition fully support this Bill. I thank again all those involved in proposing it and look forward to its passage.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, I, too, congratulate my noble friend Lady Altmann on piloting this excellent Bill to its final stages. As I said at Second Reading, it has the full backing of His Majesty’s Government, and I am pleased to reiterate that support today. As the noble Baroness, Lady Sherlock, has just said, the 2017 review measures will see hundreds of thousands more young workers brought into workplace pensions for the first time. Alongside this, 2.5 million existing savers will see their pension contributions grow. Removing the lower earnings limit will mean that every worker will be paying pension contributions from their first pound of earnings and benefit from an employer contribution. Overall, an extra £2 billion-worth would be saved a year.
I am grateful for the constructive scrutiny of the Bill from noble Lords on all sides of the House. I acknowledge the thoughtful interventions at Second Reading of the noble Baronesses, Lady Sherlock and Lady Drake, and the noble Lords, Lord Palmer of Childs Hill and Lord Davies of Brixton. If the House agrees to final passage today, the Government will look to play their part by consulting on how to implement the expansion of automatic enrolment at the earliest opportunity, which I hope gives some idea of the timescale to the noble Baroness, Lady Sherlock. We hope that it could be later this year. We will then report to Parliament about how we intend to proceed in accordance with the provisions in the Bill. I am very pleased that there is cross-party support for my noble friend’s Bill, and I hope that this House will agree to its final passage today.
Work Capability Assessment Consultation
Viscount Younger of Leckie Excerpts(8 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, with the leave of the House, I will repeat a Statement given in the other place by my right honourable friend the Secretary of State for Work and Pensions. The Statement is as follows:
“With permission, I would like to make a Statement on our proposed changes to the work capability assessment, which aim to ensure that no one who can work is permanently written out of this country’s strong labour market story. It is a story that has seen nearly 4 million more people in work compared to 2010; 2 million more disabled people in work than in 2013; and record numbers of people on payrolls. But, although it is the case that the number of people overall who are economically inactive has fallen strongly from its pandemic peak, there remain over 2.5 million people who are inactive because of long-term sickness and disability.
Yet we know that one in five people on incapacity benefits who are currently not expected to prepare for work want to work in the future, if the right job and support were available, and the proportion of people going through a work capability assessment who are being given the highest level of award and deemed to have no work-related requirements at all has risen from 21% in 2011 to 65% last year. This situation is excluding significant numbers of people from receiving employment support to help them to move closer to work opportunities. It is holding back the labour market and economy but, perhaps most important of all, it is holding back human potential. I want to ensure that everyone who can benefits from all the opportunities that work brings—not just the financial security but all the physical and mental health benefits too.
No one who can work should be left behind. That is why, earlier this year, we announced an extra £2 billion-worth of investment to help disabled people and those with health conditions move into work. That includes bringing in our new universal support employment programme, which will assist disabled people and those with health conditions to connect with vacancies, and will provide support and training to help them start and stay in a role. Through our individual placement and support in the primary care programme, we are investing £58 million to help more than 25,000 people to start and stay in work. We are modernising mental health services in England, providing wellness and clinical apps, piloting cutting-edge digital therapies and digitising the NHS talking therapies programme. We have also published fundamental reforms to the health and disability benefits system through our health and disability White Paper. That will see the end of the work capability assessment and a new personalised, tailored approach to employment support to help everyone reach their full potential.
The scale of our reforms means that they will take time to implement, but there are changes we can make more quickly that will also make a difference. So before the White Paper reforms come in, I want to make sure that the work capability assessment—the way in which we assess how someone’s health limits their ability to work and therefore what support they need—is delivering the right outcomes and supporting those most in need. Today my department is launching a consultation on measures to ensure that those who can work are given the right support and opportunities to move off benefits and towards the jobs market.
As I have said, we know that many people who are on out-of-work benefits due to a health condition want to work and, assisted by modern working practices, they could do so while managing their condition effectively. We have seen a huge shift in the world of work in the last few years—a huge change that has accelerated since the pandemic. This has opened up more opportunities for disabled people and those with health conditions to start, stay in and succeed in work.
The rise in flexible and home working has brought new opportunities for disabled people to manage their conditions in a more familiar and accessible environment. More widely, there have been improvements in the approach that many employers take to workplace accessibility and reasonable adjustments for staff. A better understanding of mental health conditions and neuro- diversity has helped employers to identify opportunities to adapt job roles and the way disabled people and people with health conditions work.
The consultation that I am publishing today is about updating the work capability assessment so that the way it works keeps up with the way people work. The activities and descriptors within the work capability assessment, which help to decide whether people have any work preparation requirements to improve their chances of gaining work, have not been comprehensively reviewed since 2011. It is right that we look afresh at how we can update them, given the huge changes we have seen in the world of work. For instance, the work capability assessment does not reflect how someone with a disability or health condition might be able to work from home—yet we know many disabled people do just that.
Our plans include taking account of the fact that people with mobility problems, or who suffer anxiety within the workplace, have better access to employment opportunities due to the rise in flexible and home working. We are consulting on whether changes should be made to four of the activities and descriptors that determine whether someone can work, or prepare to work, to reflect changes in working practices and better employment support. This includes looking at changing, removing or reducing the points for descriptors relating to mobilising, continence, social engagement and getting about. We are not consulting on changes to the remaining descriptors, which will remain unaltered. These changes will not affect people who are nearing the end of life or receiving cancer treatment, nor will they affect the majority of activities for those with severe disablement—for example, if a person has severe learning disabilities or is unable to transfer from one seat to another.
We are also consulting on changes to the provision for claimants who would otherwise be capable of work preparation activity but are excluded from work preparation requirements on the basis of substantial risk, most commonly on mental health grounds. The original intention for substantial risk was for it to be advised only in exceptional circumstances. It was intended to provide a safety net for the most vulnerable. However, the application of risk has gone beyond the original intent. We are therefore consulting on how we might change how substantial risk applies, so that people are able to access the support they need to move closer to work and a more fulfilling life. We are also considering the tailored and appropriate support that will be needed for this group, safely helping them move closer to work.
These proposals will help people move into, or closer to, the labour market, and to fulfil their potential. We are consulting over the next eight weeks to seek the views of disabled people, employers, charities and others about our proposed changes. If the proposals were taken forward following consultation, the earliest we could implement any change would be from 2025, given the need to make changes to regulations and ensure appropriate training for health assessors.
These plans are part of our wider approach to ensuring that we have a welfare system that encourages and supports people into work, while providing a vital safety net for those who need it most—a welfare system that focuses on what people can do, not on what they cannot, and that reflects the modern changes to the world of work. It is time to share the opportunities of work far more fairly. It is time for work to be truly available to all those who can benefit from it. It is time to get Britain working. I commend this Statement to the House.”
Viscount Younger of Leckie (Con)
I begin by thanking the noble Lord, Lord Palmer, and the noble Baroness, Lady Sherlock, for their points. The way I read it is that the consultation has broadly been accepted, but I understand that a number of questions have been raised and I will do my best to answer them.
First, there is some agreement that it is very important to support disabled people and to give them every opportunity, if they are not in work, to find a way of getting into it or to prepare for it. Hopefully, there is agreement to that extent. The noble Baroness, Lady Sherlock, is absolutely right that no one should be shut out of the workplace. We are at the forefront in wanting to do more to ensure that disabled people who want to and can work are able to do so. However, some disabled people may not be able to work; we are a compassionate country and it is important to make the point that, where they are generally unable to work, the state should step in and support them, as it does at the moment.
I take issue with what the noble Baroness said about the intention and scope. We believe that it is an important measure to look at the conditionalities during this eight-week consultation, because it is important to move quickly. It is part of a whole package of measures that the Government have taken and continue to take for the disabled, which includes, as the House will be aware, the national disability strategy and the disability action plan. I will expand on that to try to be helpful. By the way, the sole intention is not to do with figures —there is no target; it is not to do with that at all; it is to look more closely at who in the disabled diaspora might be willing to work and how they can be encouraged and helped into work or preparing for work.
To pick up a point from the noble Lord, Lord Palmer, as he will know, the consultation is inviting comments on the four descriptors: mobilising, continence, getting about and coping with social engagement. As the House will know, people are referred for a WCA when they report a health condition or disability which may prevent or limit their ability to work or undertake work preparation activities. Currently, the activities do not take account of somebody’s ability to work from home, as the Statement said. We have identified some activities as the most likely to be affected by modern changes in the workplace, including working from home and better support and understanding from employers around how to overcome barriers to work for disabled people and people with health conditions. To that extent, we are moving more quickly and offering this targeted approach as part of the consultation.
On our broader support, I remind the noble Baroness that we announced £2 billion at the Spring Budget 2023 to support disabled people and people with health conditions into work, including through WorkWell and universal support. We also increased our support offer to help people move back into work when they can with additional work coach time.
I will set out some figures for the House. Roughly 700,000 new benefit claimants go through a work capability assessment each year and we are seeing around 450,000 determined as having limited capability for work-related activity. Hopefully, that gives some scope of the population we are working within. Clearly, if we helped just 10% of that cohort, around 45,000 more people per year would be placed in a group in which they would receive the necessary help to get into employment.
Baroness Sherlock (Lab)
I do not think the Minister answered some of the questions I asked—maybe he omitted to do so. I asked about the timing and whether a shift away from the higher rate to the lower rate would have any implications for the amount of money somebody got, for example. Did he miss those questions?
Viscount Younger of Leckie (Con)
This is unusual procedure. On the timing, I made it clear in the Statement that we will work through this consultation and receive the results. In terms of the results coming through, I mentioned 2025. I will certainly look at the other questions the noble Baroness raised and write to her, although I think there were probably just one or two.
Baroness Stedman-Scott (Con)
My Lords, I apologise for not being here for the start of the Statement. In all my time in the department, now being carried on by my noble friend the Minister, there was real ambition to help those people in the work capability assessment—earlier rather than later, because the longer you leave it, the worse the condition gets.
This weekend, I was trying to tidy up my study, which is a massive job, when I came across an independent evaluation of a programme we ran at Tomorrow’s People when I was there—I declare an interest, although I am not there any more. We had a programme in a doctor’s surgery called “The Right Prescription: A Job”. When somebody was physically or mentally unwell and came to the doctor, if there was nothing he could do for them, he called them his “heartsink patients” because his heart sank when they walked in the room. He wrote “a job” with us on the prescription pad.
We had a consulting room and, initially, we worked with a cohort of 200 people. The results were pretty astounding. We ended up with 880 surgeries across the country wanting us, representing millions of patients. The Government at the time—I will not declare which—said that it was too expensive, but for an investment of £2,000 you got a return to society of £10,000. We reduced the anti-depressant prescription bill by 34% for those 200, saved the doctor 20% of his time, saved referrals to counsellors and got people into work. On average, 80% of them were there 12 months later, although it was intense.
We must look at the consultation as an opportunity for people to put forward ideas that make life better for people. If the department will have me in for 10 minutes, I will certainly come back and share that evaluation to see whether it can help, because people with mental health issues in particular need all the help we can give them.
Viscount Younger of Leckie (Con)
I take this opportunity to encourage all those who are interested to give input to the consultation. To pick up on my noble friend’s point about GPs, a key principle is that the WCA considers what impact the person’s disability or health condition has on them, not the condition itself. To clarify, the department does not ask claimants’ doctors to make decisions about their patients’ capability for work. This is because the doctor diagnoses and treats a patient’s illness, whereas the WCA healthcare professional’s role is to assess the effects of the claimant’s illness on their ability to perform everyday work-related activity. It is important to make that distinction.
Baroness Bennett of Manor Castle (GP)
My Lords, my question is informed by a study published this May by a group called INvolve, which spoke to 500 UK employed adults with invisible disabilities, including visual impairment and chronic pain. Two-fifths said they were not getting the support they needed at work, particularly as businesses cut back under the current economic challenges; two-thirds said it was up to them to sort out their own support, as they were not getting help from their employer; one-quarter said they had a workload that they simply could not manage; and one- fifth said they were considering leaving their job as a result of their difficulties. The kinds of things these sick and disabled workers were seeking were flexible working hours, training for other employees to understand their situation and assistive technologies and tools.
This government action is focused entirely on people suffering from sickness and disabilities, but they are going out into a workplace where there is clearly significant discrimination. The Statement makes a lot of the move towards working from home, but quite a number of businesses have been heading in the opposite direction, trying to force staff now working from home to come back into the office. Do the Government plan measures of a similar scale to those in this Statement to crack down on discrimination in the workplace and to ensure that employers offer conditions in which the people this Statement refers to can work?
Viscount Younger of Leckie (Con)
The noble Baroness makes a very good point, which allows me to emphasise the dependence on employers. The noble Baroness will know that we have reached out considerably to employers to encourage them, and we continue to encourage them to take on those who are disabled. ONS data from September 2022 to January 2023 shows that 44% of working adults work from home exclusively or at least some of the time each week. If that is translated into those who are disabled working for employers, that is quite encouraging. We encourage everyone to input into the consultation.
The noble Baroness may know that recent published data suggests that disabled people are more likely to work in the health, retail or education sectors. As of July 2023, these three industries have a combined total of 350,000 vacancies. There is a tremendous opportunity there, and we need to work through that.