Universal Credit Split Payments

Debbie Abrahams Excerpts

Wednesday 10th October 2018 Westminster Hall

[Danielle Rowley]

I thank the hon. Gentleman for his intervention. I absolutely agree with him, and I will give some of my own thoughts on the Government’s response to that as well.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

My hon. Friend is making a powerful speech. I am sure the Minister will respond by saying that people can apply to have split payments, but Women’s Aid has said that this is not enough—that the Government are not, for example, monitoring how many people are applying and how many people are being refused. The record of what is being provided for in terms of alternative payments gives a very skewed and false picture, and we must have a default split payment soon.

[Danielle Rowley]

I absolutely agree.

Personal Independence Payments

Debbie Abrahams Excerpts

Tuesday 11th September 2018 Commons Chamber

[Hugh Gaffney]

I am sorry, but I do not agree with the hon. Gentleman. I do not know who goes into his surgery to talk to him, but I certainly do not hear that from the people who come in to talk to me.

Many colleagues have consistently raised PIP with the Government over recent months and years. My hon. Friend the Member for North West Durham (Laura Pidcock) is one and I congratulate her on the birth of her baby boy and I hope that they are both doing well.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I just wish to pick up on the point made by the hon. Member for Ochil and South Perthshire (Luke Graham). Does my hon. Friend agree that, in fact, the introduction of PIP has been used as a means of cutting support for disabled people? When we look at the figures from charities such as Mind, we can see that more than half of the people who started off on disability living allowance and transferred to PIP are to get reduced points or no points at all. This is purely a means of cutting support for disabled people.

[Hugh Gaffney]

I totally agree with my hon. Friend and I thank her for her intervention.

Many MPs have spoken on the issue over the past few months and years. My hon. Friend the Member for North West Durham highlighted how the mental health conditions of those with chronic disabilities is also a factor. My hon. Friends the Members for Gower (Tonia Antoniazzi), and for Oldham East and Saddleworth (Debbie Abrahams) have also spoken on the issue. My hon. Friend the Member for Rutherglen and Hamilton West (Ged Killen), in my neighbourhood of Lanarkshire, raised a very good question with the Government around the actual number of challenges to original assessment decisions that have been successful. My hon. Friend the Member for Hornsey and Wood Green (Catherine West) legitimately asked the Government whether claimants would be entitled to receive a copy of their PIP assessment reports.

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[The Minister for Disabled People, Health and Work (Sarah Newton)]

I congratulate the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) on securing this very important debate. I would like to add my personal congratulations to his, and those of his colleagues, to the hon. Member for North West Durham (Laura Pidcock). I am pleased to hear that she has had her baby and both are doing well. Please extend those congratulations to her. I hope to see her back in her place in due course so that we can continue our work together.

It is very clear to me that all Members who have spoken here today care deeply about their constituents and want to see the best possible outcomes for them when they are going through the process of claiming the personal independence payment. I can assure them that this Government are equally committed to supporting everyone to achieve their full potential in society and to lead as independent and full lives as possible. The successful roll-out of PIP is integral to our vision that we have a really fair and compassionate society and that people get the support that they need.

Figures have been bandied around this evening, and it is really important that we deal with the facts. We are committed to providing a strong safety net for those who need it. That is why we are spending about £54 billion this year just on the benefits that support disabled people and those with health conditions. We are focusing on those main disability benefits through employment and support allowance and other benefits in addition to PIP. Expenditure has increased by more than £5.4 billion since 2010. It is set to be at a record high this year, and it will continue to be higher in every year to 2022 than in 2010.

[Debbie Abrahams]

rose—

[Sarah Newton]

The hon. Lady is a very experienced Member of Parliament, and she understands that in an Adjournment debate we have very little time. My door is always open to all Members here tonight if they want to raise constituency cases or broader points with me. I will not be able to address these points if I take interventions. [Interruption.] I ask the hon. Lady please to come and see me, and I will be more than happy to listen and respond carefully to what she wants to say.

These disability benefits are also exempt from the benefits freeze, so they will increase again this year to make sure that they are going up in line with inflation. We have about 5.25 million people of all ages on benefits, but we are supporting 1.8 million on PIP. Again, we have heard the misquoting of information about appeals. Of all the people who have applied for PIP, about 9% have gone to appeals, of which only 4% have been overturned. One person who has a poor experience of PIP—one person who does not get the treatment that these people all richly deserve—is one too many. We are utterly committed to a continuous improvement programme.

It is really important to remember why we looked again at the disability living allowance. It was a benefit for its time. It was mostly focused on physical disability. It did not take into consideration all the mental health conditions that we know people live with. It did not take into consideration learning difficulties or sensory impairments like blindness. Understanding of other conditions such as autism has changed immeasurably. DLA was too reliant on self-assessment, and people had very little opportunity to be reassessed, so they could be underpaid in their benefit.

In fact, PIP has achieved many of its objectives. We can absolutely see that when we look at the results. Over 1.88 million people are now in receipt of PIP. Over 225,000 more working-age disabled people are now receiving DLA or PIP compared with when PIP was first introduced, and more support is now going to those that need it the most. Over 30% of claimants are receiving the highest level of support under PIP, compared with 15% under DLA.

There has been much talk, quite rightly, about people with mental health conditions. It is really important to note that 65% of PIP recipients with mental health conditions receive the enhanced rate of daily living component, compared with 22% of people on DLA. Clearly, where we were aiming to make sure that people with mental health conditions were benefiting from this new benefit, that is happening. It is a holistic benefit that looks at a whole range of conditions with regard to people’s ability to lead independent lives.

I have consistently listened to colleagues in the House. I regularly meet charities and stakeholders to ensure that we make improvements to PIP. We have had independent reviews of PIP. We have had a Select Committee inquiry, which made many recommendations that we have accepted. We are absolutely committed, and a lot of changes have already happened.

I would like to take this opportunity to update the House on the extensive work we have been doing on implementing the reforms to PIP that I have set out and communicated regularly to the House. Starting with the beginning of the applicant’s journey, we have done work on improving communications, including making changes to the forms, ensuring that people understand that they can bring people along to support them and providing far more access for disabled people. We have independent evaluation where we engage with our PIP claimants to ask them how we can improve the process. Some 87% of them found it a positive experience, but of course other people are not finding it a positive experience, and they are the ones we are working with. We are working with individual disabled people and organisations, and we have listened and acted.

I have been asked about particular changes we have made. Over the summer, we have done a huge amount of work to get ready for a proper pilot of recording PIP assessments. I would like to say to the hon. Member for Coatbridge, Chryston and Bellshill that using the private sector to undertake assessments is not a new thing. It was brought in by the Labour party when it brought in ESA back in 2008. It was the Labour party that introduced work capability assessments and used health professionals to undertake those assessments.

Let us remember who these health professionals are: they are the nurses, physiotherapists, doctors and occupational therapists we all depend on when we go to our local hospital or engage with our local health service. Those are the healthcare professionals undertaking the process. They are highly dedicated and motivated healthcare professionals who receive very thorough ongoing training, particularly in mental health. There is a huge amount of stakeholder engagement from voluntary sector organisations that support disabled people to ensure that the assessors undertaking these assessments are completely up to date, and this is a continuous improvement process. We have also introduced a lot more guidance, support and training for our case managers. Healthcare professionals undertake the health assessments, and that information is then passed back to the Department, where experienced case managers are the decision makers.

Over the summer, I was also able to ensure that we implemented other important changes that we said we would to PIP. For people who have severe conditions from which we know, from their medical information, they will not recover, we have built on the work we have done on ESA by working in partnership with disabled people and the voluntary sector to make changes so that once people on ESA receive the highest level of support, they have a lifetime award, with a light-touch review after 10 years. We have now introduced that to PIP.

Widowed Parent’s Allowance

Debbie Abrahams Excerpts

Wednesday 5th September 2018 Commons Chamber

[Justin Tomlinson]

Actually, as part of the commitment to bringing in the new bereavement payments, we will do a full impact assessment, which will be shared with the House. One of the key changes is the additional £1,500 in the initial payment for those in a marriage or civil partnership who had children. We understand the importance of making sure that those with children get additional support.[Official Report, 13 September 2018, Vol. 646, c. 6MC.]

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I echo the calls for compassion and fairness when dealing with children affected in this way. I also gently remind the Minister that this is the seventh ruling in the last 18 months against different aspects of the Government’s social security policy. It would be appropriate for the Government to show some humility and listen.

[Justin Tomlinson]

I thank the hon. Lady, but those are the principles that govern us. The new system that we have brought in provides immediate support; it prioritises help for those on the lowest incomes; and it recognises that those with children, regardless of age, need additional immediate support. We will continue to assess both the ruling of the Court in relation to Northern Ireland and the wider implications of the new benefit.

Universal Credit and Welfare Changes

Debbie Abrahams Excerpts

Thursday 21st June 2018 Commons Chamber

[Ms McVey]

My hon. Friend has spent considerable time investigating what we do, and providing solutions and support. He is right that this is a test-and-learn process. Indeed, I ensured that that would be the focus, and it is what we will do for people, whether they are self-employed or disabled. Let me quote various charity groups that have agreed with exactly what we have done. When I made the decision—along with the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for North West Hampshire (Kit Malthouse)—to offer the housing element of universal credit to 18 to 21-year-olds, Shelter said that it was “thrilled”. The chief executive of Citizens Advice, Gillian Guy, said that the Budget changes would

“make a significant difference to the millions of people who will be claiming Universal Credit”.

If only the NAO had read her words and produced its document accordingly.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I cannot believe what I am hearing from the Government. They are in absolute denial, and not just about this report. In the past six months, there have been not one, not two, but three High Court decisions or tribunal rulings saying that the Government’s actions with regard to PIP and, most recently, with regard to severely disabled people transitioning on to UC, are discriminatory and unlawful—they have been made to change. But yesterday, the Minister for Disabled People said in a Westminster Hall debate that there was nothing unlawful or discriminatory about the Government’s actions. Does this not reflect what the UN called a “disconnect” between the “lived experience” of disabled people and this Government’s policies? What is the Secretary of State doing to ensure that the implementation of all her policies recognises these judgments?

[Ms McVey]

Again, I ask the hon. Lady to read the Court judgment. I had already made the decision on the disability premium. The Court did not ask the Government to alter the severe disability premium—we won on that point of law—so I ask the hon. Lady to digest the judgment properly. We have put in an extra £9 billion of health and disability funding to support people. In the last couple of years, we have got an extra 600,000 disabled people into work. That is what this is about—supporting the most vulnerable and helping more people into work. We have seen 3.2 million people move into work, including 600,000 disabled people. The hon. Lady should stop scaremongering. Should people have difficulties, I ask her to assist them so that they can get the best support for what they need. That is what Government Members are doing, and the figures reflect that.

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[Ms McVey]

We have said that the NAO report sadly was out of date and therefore has not taken into account all the changes that have been made. That is unfortunate, because it means that the report is not a true reflection of what is happening. It is unfortunate that the hon. Gentleman was not here for the statement, but if he reads it in Hansard tomorrow, he will have his answers on how well the system is working.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

On a point of order, Mr Deputy Speaker.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

It is exceptional to take a point of order now—normally it would come after statements—but as it relates to this, I will.

[Debbie Abrahams]

I am grateful to you, Mr Deputy Speaker.

The Secretary of State, in response to my question, incorrectly said that the Government had not been found to have acted unlawfully in relation to universal credit as it applies to severely disabled people. I have looked up that judgment. I was at court 28 when the judgment was handed down this time last week, and it is absolutely the case that, for severely disabled people transitioning on to universal credit, the Government were found to have acted unlawfully and in a discriminatory way. I would appreciate it if the record were corrected.

[Mr Deputy Speaker]

Would the Secretary of State like to respond?

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

I would. If the hon. Lady read and were, supposedly, at the judgment—[Interruption.] I am giving her a get-out clause. On many of the points, the Government won. They were questioned on how moving area had impacted on people with the severe disability premium. It was not about the fundamental change that I have made to help half a million disabled people by giving transitional protection to people with the severe disability premium, which is different.

[Debbie Abrahams]

Further to that point of order, Mr Deputy Speaker. There were two judgments. The one that I just referenced, about severely disabled people transitioning on to universal credit, was upheld, and the Secretary of State needs to recognise that.

[Mr Deputy Speaker]

I will leave it at that, because it has certainly been put on the record and heard. I want to move on to the ministerial statement.

UN Convention on the Rights of Persons with Disabilities

Debbie Abrahams Excerpts

Wednesday 20th June 2018 Westminster Hall

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

It is a pleasure to serve under your chairmanship, Dame Gillan, and I congratulate my hon. Friend the Member for Canterbury (Rosie Duffield) on her excellent speech.

I will be brief because several Members still wish to speak. This debate is about the UN convention on the rights of persons with disabilities and the UN committee that investigated the UK regarding breaches of those rights. This started back in 2015, when I was the shadow Minister with responsibility for disabled people. I was interviewed by the committee, and its first report stated that there were “grave and systematic violations” of the convention. The findings published in 2016 charged the UK Government with failing to uphold the rights with which we as a signatory to the convention from 2009 had agreed to comply. The judgment was based on facts, testimony and evidence. We have been saying that we should judge things on the facts, and this judgment did just that. The Government must accept responsibility for the devastating impact of their austerity policies, which have had the biggest impact on disabled people.

For eight years, we have seen cuts to social security support—that has already been mentioned—but the convention’s judgment goes far beyond that. There have been cuts affecting disabled people who need social care and cuts to specific support for disabled people in the NHS. There have been cuts to support for those with special educational needs and disability in schools and to allowances for disabled students. The list goes on and on. We have recently debated trains, but there have been cuts to the Access for All programme that seeks to improve accessibility to train stations. There have been cuts to supported housing, legal aid and much, much more. What disabled people are going through is absolutely horrendous.

I would like to focus on a few points from the UN report. In August 2017, the UN committee met to consider whether any progress had been made since the devastating report of 2016, and unfortunately it said, “No, there is no progress. You are not a global leader on disability rights.” In the recent debate on the European Union (Withdrawal) Bill, there has been a fundamental disagreement about upholding rights, because of the failure to support the charter of fundamental rights that gives more protections under domestic law to disabled people.

[Bill Grant]

Will the hon. Lady give way?

[Debbie Abrahams]

I am sorry, but I will not give way because my colleagues still wish to speak.

The UN committee stated that cuts to social protection in the UK were “a human catastrophe”—a catastrophe! The UK’s human rights watchdog stated that the examination by the UN had seen a “disconnect” between the UK Government’s replies and the “lived experiences” of disabled people. That is what we are hearing, despite Government Members saying that everything is hunky-dory. In conclusion, the rapporteur stated that the committee was

“deeply concerned about the lack of recognition of the findings and recommendations of the conducted inquiry”.

The Government have said that they will not act on that report, but it is not the only such report. Indeed, the Council of Europe has also stated that it has significant concerns regarding upholding the rights of disabled people.

The Minister has said that the Government will set up a new inter-ministerial group to co-ordinate work across the Government and seek to reinvigorate our engagement with disability stakeholders to help shape our plans. Will she confirm what that engagement will involve, including which deaf and disabled people’s organisations will be engaged, as repeatedly recommended by the UN? Will she publish details of the membership and terms of reference for that group and say whether it will extend to the Department of Health and Social Care? There are real concerns that the consultation on the Green Paper on adult social care, which includes support for disabled people, is failing to engage with DDPOs.

The response to a question that I asked in the debate on social care on 25 April shows a complete lack of understanding about article 19 of the convention and what is meant by independent living. Last year, the UN disability committee brought out a general comment on article 19, in which it referred to how institutionalisation can occur in people’s own homes. People can become isolated and separated from society if they are not given that basic support, and we are effectively seeing the re-institutionalisation of disabled people due to current cuts to social care. Waiting until autumn to see the Green Paper on adult social care, as has been suggested, is not good enough. Some £7 billion has been cut from social care, and 1.2 million people, including disabled people, are not getting the support they need. To their shame, the Government’s failure to recognise and act on the social care crisis is affecting our most vulnerable citizens.

Finally, will the Government consider producing a cumulative impact assessment of all their policies on disabled people and their impact since 2010, as recommended by many organisations? It is time for a different approach, and that is summarised in the manifesto that we developed with and for disabled people: “Nothing about you, without you.” I know my hon. Friends are building on that commitment, which includes scrapping current disability assessments and replacing them with an holistic, person-centred approach that is based on the principles of dignity and inclusion. We have already committed to incorporating the UN CRPD fully into UK law—something that was rejected by this Government. We believe that, like the NHS, our social security system is there for every one of us. Nine out of 10 disabled people have become disabled—their disability has been acquired. We should recognise that that could happen to anyone and ensure that the support is there. It is time for things to change, and I hope the Minister will reassure us that that will happen.

[Several hon. Members rose—]

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[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

It is a pleasure to serve under your chairmanship, Dame Cheryl, particularly given all the excellent work you have done over the years for people with autism and on the all-party parliamentary group. I thank the hon. Member for Canterbury (Rosie Duffield), who made an excellent, detailed and thorough speech. The empathy she feels for her constituents and the hard work she will do in the constituency on their behalf were clear. I particularly thank her for bringing this important debate to be heard today.

I thank all the hon. Members who contributed by reminding us that some progress is being made, particularly in employment and with the Disability Confident scheme, and that further employers are signing up. It is important that we make progress with that scheme, but I would caution that I am aware that an employer can sign up and, I believe, reach the full level without employing anyone with a disability. Further progress is required in that regard.

I also thank all hon. Members who contributed for outlining the widespread failings in the system, giving constituency case examples to show the impact on the people they are trying to help, and highlighting where the issues lie—not simply to berate the Government, but to suggest areas where we need to work collectively to take things forward. We must work collectively to improve the lives of people with disability across the United Kingdom, to ensure that they reach their full potential.

We are all aware that the reason we are here is that the optional protocol allowed the United Nations committee to investigate a state party if it received “reliable information” of “grave or systematic violations” of the convention. The UK is the first country to be investigated by the UN under this convention. I believe that brings great shame, but it is also a warning and a call to improve where we are. We must grasp that and stridently take it forward. The report published on 6 October 2016 found that reforms have led to grave and systematic violations of the rights of persons with disabilities, emphasising in particular changes to housing benefit entitlement, eligibility for PIP and social care, and the ending of the independent living fund.

I am aware that the Government have challenged the veracity of the report, but it must be said that it was based on thorough research, with visits across all four nations of the United Kingdom, interviews with more than 200 people and the collection of more than 3,000 pieces of documentary evidence. Where facts were disputed, they were cross-checked with collateral sources, including national statistics and parliamentary inquiry reports. Although hon. Members may wish to challenge the report, it is thorough and detailed. While the Government have not conducted the cumulative impact assessment on disabled people to challenge the report, we have to take it and its findings and view them very seriously, and ensure that the system is overhauled in a positive way that changes the lives of people with disability.

The subject of welfare benefits has been thoroughly covered today, so I will just touch briefly on it. The Access to Work fund is a good scheme, but it requires much further publication to increase awareness. Many people in my constituency and beyond, whom I have spoken to through the all-party parliamentary group for disability, were not aware of it. Where a scheme has the potential to assist people, we should ensure that they can access it.

[Debbie Abrahams]

The hon. Lady is making an excellent speech and her point about Access to Work is absolutely right. Of the 4 million disabled people who want and are able to work, 25,000 have had support through Access to Work on a yearly basis. It is just not adequate.

[Dr Cameron]

Perhaps, where things are assisting, we need to look at rolling them out and generalising them to ensure that those who need that system can access it. It is an irony indeed that people cannot access Access to Work.

I will speak briefly on the need for medical collateral information to be accepted and routinely sought in welfare assessments. I feel that often those assessments are conducted in a way that perhaps does not lend itself to getting the adequate information. People may not be aware that they can bring that information, or they may not understand the system properly, but it is crucial. Often people who come to be assessed are anxious and stressed; they may not be able to explain in the best way the extent of their difficulties, but having that collateral information can be valuable in ensuring that an accurate assessment is undertaken in the first place and the individual does not have to go through the stress of appeals processes, which have such a devastating impact.

The Scottish Government intend to place dignity and respect at the heart of the welfare system. That is obviously in transition, but it is a great aspiration and something that we should aspire to across the four nations. I ask the Minister to look at the “Ahead of the ARC” inquiry that the all-party parliamentary group for disability completed last year. It points out a number of important areas, including access to training in job sectors, particularly those that will be sectors of the future and where jobs are likely to be found. The Government have made some movements on apprenticeships, and I am grateful for that, but I think much more can be done.

Public procurement should reward businesses that provide inclusive employment opportunities, to ensure that procurement contracts are not just awarded on cost, but look at equality legislation and inclusion wherever possible. We also need to be mindful that when we think of people with disabilities, the stereotype is often that they are unemployed or work for someone else; we need to also think about maximising skills and potential and looking at further opportunities for entrepreneurs who have disabilities. That could offer a flexible work pattern, which might suit many people, but it would also harness the skills and abilities of many people who perhaps are not already in the workplace, and who wish to take that forward, employ other people and contribute greatly to our economy. Let us try to change the rhetoric.

In the minute I have left, I make a plea to the Minister on Motability. People are losing their Motability cars; is there any opportunity for people to retain their cars during the appeal process rather than losing them? I recently had a constituent who had won their appeal, but had already taken out a loan for a car, and was left with a Motability car and a massive loan at the end of the process. Surely that is not something that should be happening when the process was faulty in the first place.

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[The Minister for Disabled People, Health and Work (Sarah Newton)]

It is a pleasure to serve under your chairmanship, Dame Cheryl, as you have taken a lifelong interest in disabled people and made a personal difference by introducing the first piece of legislation specifically supporting people with autism. I congratulate the hon. Member for Canterbury (Rosie Duffield) on securing her first Westminster Hall debate. Given the way she has approached it, I am sure it will not be the last. After the Government publish our response to the UN inquiry, I will be more than happy to come back to this Chamber to debate it with her.

Before I respond to the individual points that hon. Members made, let me say that, like everyone else in this Chamber, I want to ensure that every disabled person and person with a health condition in our country has the opportunity to play a full part in society, including at work, when they can do so. Of course, there are disabled people who cannot work, and they must be supported. However, I utterly refute the allegations that the Government have discriminated against disabled people, systematically undermined and violated their human rights and, worst of all, that we are targeting their welfare support.

[Debbie Abrahams]

Will the Minister give way?

[Sarah Newton]

I have so little time and have been asked so many questions that I will not take an intervention.

The Government are utterly committed to the convention. Britain helped to develop and shape it, and we were one of the first countries in the world to sign and ratify it, in 2009. We are one of the very few nations that also ratified the convention’s optional protocol, which allows for individual complaints to be raised and permits the UN committee to investigate allegations of violations of the convention. That is what happened, and it was the first time it had happened. We were disappointed that the UN representatives who came to the UK simply did not take on board the evidence that the Government gave them and did not acknowledge the full range of support.

When we set out our response—I will set it out in full—we will clearly make our case and rebut the allegations levelled against us. We firmly believe that a disability or health condition should not dictate the path a person is able to take in life, including in society or in the workplace. That is the basis of everything we are doing to try to make sure that disabled people are able to realise their potential, including at work. We engage constructively with the United Nations and we have had constructive meetings, and I will of course meet all the reporting requirements in full.

As hon. Members will know, in line with the convention, disability is mainstreamed across the Government. I reassure everyone that we have strong legislation on our statute book to protect disabled people, through the public sector equality duty in the Equality Act 2010 and through the Northern Ireland Act 1998. Those protections are some of the strongest in the world.

The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) asked why we have not performed a cumulative impact assessment of our welfare reforms. We undertake cumulative assessments of reforms for each fiscal event, because we want to be as transparent as possible on the cumulative distributional impact of Government policies, including welfare reforms, tax changes—direct and indirect—and public spending changes. To present as full a picture as possible, we publish the living costs and food survey, which includes all the information that Members have mentioned.

All that information enables me to say clearly that the proportion of people in relative poverty in a family in which someone is disabled has not risen since 2010. These allegations that we are driving people to food banks and forcing them into destitution are simply irresponsible. The proportion of people in absolute poverty in a family in which someone is disabled is at a record low, because we are spending more than £50 billion a year on benefits to support disabled people and people with health conditions. That is up by £7 billion since 2010; it is around 2.5% of our gross domestic product and accounts for more than 6% of Government spending. As a share of our GDP, public spending on disability and incapacity is the second highest in the G7; only Germany spends more. Disability spending will be higher than 2010 in every year through the spending review. There has been no freeze in the benefits that disabled people receive, and those benefits are not subject to the benefit cap.

It is important that we hear the facts in these debates. Of course there is more we can do and of course I want to close the disability employment gap, but let us actually deal with the facts of the situation and stop this quite irresponsible talk that we have heard in this Chamber and that we hear in the main Chamber. Who will suffer because of what we have heard from Opposition Members today? It will be disabled people and their families, who will be frightened to come forward and claim the benefits and support available to them.

In my few remaining moments, I will touch on some of the criticisms that we have heard about personal independence payments and employment support allowance. PIP and ESA have been subject to a number of independent reviews, with the findings from the most recent, undertaken by Paul Gray, published last year, and to which I have published my response. I responded positively to each and every one of his recommendations. We are moving forward with continuous improvements to PIP.

The Work and Pensions Committee undertook a full inquiry into the assessment process, and it has welcomed my response and the series of measures we are taking, particularly the video recording of assessments. It is important to me that we build confidence and trust in that assessment process. We know from independent data that the vast majority of people undergoing a work capability assessment or a PIP assessment feel treated with respect and dignity, and that the system works. However, one person receiving poor treatment or not getting the right result is one too many, which is why we are so determined to implement all our reforms.

Those reforms stretch from working more closely with medical professionals, which was raised several times today, to making sure that it is easier for medical professionals to provide data to the process, that companions can support people in those assessments, that home visits are implemented wherever that could support people and that all the forms are in an accessible format. I actively consider implementing each and every suggestion put to me. I have a huge amount of stakeholder involvement with disabled people and people who represent them through our PIP forum and through a whole range of bodies under the Department for Work and Pensions. People are co-designing these benefit systems with us. When PIP was introduced, it was developed with organisations that support disabled people and with disabled people themselves. We want to make sure that PIP remains a modern, dynamic benefit and that the Government treat people with mental health conditions equally seriously as people with physical health conditions.

Many more people are being supported and helped on PIP than they ever were under the disability living allowance legacy benefit. As we know, the evidence shows that more people receive higher rates of support on PIP than on DLA. Some 30% of people moved on to PIP get the highest levels of support; the figure was only 15% on DLA. It is important that disabled people or people with disabled family members who listen to and follow these debates know that there is support for them and that they should come confidently forward to receive it, in the full knowledge that, when we come across problems with the system, we work tirelessly to improve it.

There has been talk about Access to Work. We are very keen to see Access to Work grow and develop. We recently announced that the support available to each person each year is double the average income—that is just under £60,000 per person per year to support an individual into work. It is a demand-led scheme, and I am pleased that it grew by 8% last year. This is one budget that we are happy to see grow, because it means that more people are being supported into work.

I welcome the comments on Disability Confident, which is a growing and successful scheme, and I am grateful to the hon. Members here who have signed up to it. I hope more will come next week to the launch of the community challenge, where we will ask leaders in communities—that is us, as MPs in our local communities—to spend time in our summer recess dedicating ourselves to visiting businesses and employers and asking them to become disability confident and to provide more opportunities for disabled people in their communities. I hope as many people here as possible will come along to that event and will join in with those activities.

So many questions have been asked that I have not been able to answer. I will write back in detail on every point that has been made, so that we can all work together to make sure that every disabled person in our country is truly supported to be the best that they can be and to play as full a part as possible.

Personal Independence Payments

Debbie Abrahams Excerpts

Monday 4th June 2018 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on the withdrawal of her appeals in relation to personal independence payment claimants with chronic conditions, and what further action she will be taking.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

I am absolutely committed to ensuring that disabled people and people with health conditions get the right support they need. PIP is a modern, personalised benefit that assesses claimants on needs, not conditions. It continues to be a better benefit than its predecessor, disability living allowance, for claimants with chronic conditions. Under DLA, only 16% of claimants with diabetes received the top rate, whereas under PIP 29% receive the top rate.

I carefully considered these historical cases and decided no longer to continue with the appeals in order to provide certainty to the claimants. Since withdrawing the appeals, I have provided instructions to operational colleagues to put these claims in payment urgently. These claimants will receive any backdated moneys owed, and should receive their first payment within the coming days.

These cases were decided prior to the March 2017 amending regulations—the Social Security (Personal Independence Payment) (Amendment) Regulations 2017—in which the Government clarified our policy for managing therapy under PIP daily living activity 3. These regulations are not affected by our decision to withdraw these appeals.

[Debbie Abrahams]

Thank you for granting this urgent question, Mr Speaker.

The announcement during the recess that, for the second time this year, the Secretary of State has withdrawn appeals, this time on daily living activity 3 of the PIP assessment—the component on managing therapy or monitoring health conditions—raises serious questions. I would therefore be grateful to the Secretary of State if she told me now how many people she estimates have been incorrectly assessed on the PIP daily living activity 3 descriptor who have either been denied support or have had reduced support.

Will the Department be undertaking a review of past claims relating to this descriptor to identify other claimants who may have been underpaid or denied support? If so, when will the process start and be completed? I am grateful to the Secretary of State for her reassurance that it will take days. Will additional staff be recruited to undertake this process? What assessment has the Department made of the average award to which claimants will be entitled, and when will the payments be backdated to? Will there be an appeal process for PIP claimants who are not contacted by the Department who believe that they should receive back payments? What assessment has she made of the administrative and legal costs to her Department and the public purse?

Given the Secretary of State’s concession in these test cases, does she accept that the changes made in the March 2017 PIP regulations regarding activity 3 are illegal? Given also that there is a review of 1.6 million PIP cases to identify the estimated 220,000 people who have been underpaid with regard to the mobility activity component, will the Secretary of State tell the House how many of the 1.6 million PIP claims have been reviewed to date and when the exercise will be completed? How many of the estimated 220,000 people affected have received back payments to date?

With a record of 69% of PIP decisions being overturned on appeal, it is clear that the assessment process is not fit for purpose. The recent report by the Select Committee on Work and Pensions on the process said that the assessments caused unnecessary stress and anxiety for thousands of people who have been denied support unfairly, as well as wasting public money by sending many decisions back to the courts. When will the Secretary of State get a grip on PIP, and will she immediately stop the reassessment of disabled people with progressive conditions?

[Ms McVey]

Today’s urgent question was specifically about the cases of AN and JM, on which I have given a decision. For the purposes of clarity, it was not to continue with the court case. Any other issues that the hon. Lady raised are separate, and the question of whether we move on and do other things is not for discussion today. There is a further case under way, and I am sure Mr Speaker would agree that it would be incorrect for me to discuss an ongoing legal case, so I cannot do so. However, for the claimants on whose claims this urgent question was granted, I have, for the sake of clarity, withdrawn the appeal.

We are talking separately about the mobility issue, on which I have given regular updates to the House. We have been working with stakeholders to create new guidance, and we have consulted claimants and stakeholders. We seem to be on schedule for the first payment to go out to them at the start of the summer.

Oral Answers to Questions

Debbie Abrahams Excerpts

Monday 5th February 2018 Commons Chamber

[Ms McVey]

I can indeed reassure my hon. Friend that what it is doing, and the avenues it is pursuing, are correct and thorough. I met the regulator last week. It is making sure that it investigates these key matters and provides the necessary pension support. Where we need to strengthen in future, we will do so. Equally, I would like to make Members aware of what the pension regulator has done in the past. With regards to the British Home Stores fiasco, which is totally different from this situation, it employed an anti-avoidance measure and got Philip Green to pay his pensioners £363 million. Further prosecutions are coming forward for Chappell, who bought that company for a pound. That is the kind of good work the pension regulator is doing.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

As the Government have responsibility for the pensions regulatory framework, how would the Secretary of State describe a regulatory framework that allows the administrator of a pensions scheme to help to bring about the downfall of the company and the employees it represents, and to profit from that downfall?

[Ms McVey]

When I hear some of the hon. Lady’s comments, particularly those that are out of context, I think about the letter that she has received in the past two days from the UK Statistics Authority, which states that many things she has said are not accurate. The letter said that her remarks—whether about children waking up in poverty at Christmas or linking universal credit with poverty—were not supported, that they were not true statistics and that the sources could not be relied upon. If you will allow me to ask this, Mr Speaker, will the hon. Lady make a statement straightaway about the letter from the UK Statistics Authority?

[Mr Speaker]

I understand the rhetorical significance of the Secretary of State’s point, but I must exhort the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) to stick to her last. That is to say, this is not the occasion upon which she is invited to expatiate on the matter. She may find other opportunities if she is so inclined, but she should stick to the line of questioning that is relevant to the questioning of a Government Minister.

[Debbie Abrahams]

I will indeed do just that, Mr Speaker, especially as there was absolutely no answer to my original question. Hundreds of thousands of ordinary working people including my constituent, Philip Wild, have lost half their retirement income because of the Government’s failure to tackle pensions governance—from Carillion to Capita, and BHS to the British Steel Pension Scheme. How many more pensions scandals does the Secretary of State need to see before she introduces the robust regulatory oversight needed to protect people’s pensions for the future?

[Ms McVey]

Obviously, in the light of the letter from the chair of the UK Statistics Authority to the hon. Lady, it needs to be put on the record that the vast majority of defined-benefit pension schemes are working very well indeed. When we do see instances of abuse or illegal goings-on, they are investigated and the people responsible are brought to account. We have a strong Pension Protection Fund, supported by other businesses that are looking after pensioners across the country.

--- Later in debate ---

[Mr Speaker]

Order. I am advised that we have had 23 topical questions, and we must now move on. I am sorry to disappoint colleagues who have waited. I try to extend the envelope a bit, but the time comes when we must move on.

[Debbie Abrahams]

On a point of order, Mr Speaker.

[Mr Speaker]

I hope it is a genuine point of order, as opposed to a point of irascibility.

[Debbie Abrahams]

Further to the comments made by the Secretary of State during oral questions, Mr Speaker, I seek your guidance on how I can place my response on the record. I agree it is important for everyone to use data responsibly and to provide the sources and contexts of those data, but I will take no lessons from this Secretary of State or her cohort, who accuse us of scaremongering as a way to distract from the reality of their Government’s cuts. We know what happened last time they accused Opposition Members of scare- mongering about the impact of cuts and universal credit: the Government introduced £1.5 billion of measures. Our concerns were accurate and well founded, and the Child Poverty Action Group found that cuts to universal credit will force 1 million more children into poverty.

[Mr Speaker]

The shadow Secretary of State has found her own salvation. She asks me, I think rhetorically, how she can put her thoughts on the record, and she knows perfectly well that she has just done so through the device of a purported—I use the term advisedly—point of order. One day somebody will do an academic analysis. I have not done so myself, but, in my experience in the House, at least 90% of points of order are bogus. The hon. Lady has made her point.

Social Security

Debbie Abrahams Excerpts

Monday 5th February 2018 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I will focus initially on the draft Social Security Benefits Up-rating Order and then move on to the draft Guaranteed Minimum Pensions Increase Order.

The uprating order provides for the annual uprating of social security entitlements excluded from the Government’s freeze to levels of social security enacted in the Welfare Reform and Work Act 2016. As we have heard, that includes attendance allowance, carer’s allowance, disability living allowance, personal independence payment, industrial injuries disablement benefit, bereavement benefits, incapacity benefit and severe disablement allowance. This year, the Secretary of State proposes to uprate those limited social security entitlements by inflation under the consumer prices index measure, which currently stands at 3%, together with the new state pension in accordance with the triple lock, and pension credit.

We will not delay the measures to increase the new state pension and the adequacy of the social security provision provided by the uprating of payments in the order. However, although I welcome the upratings contained in the order, this needs to be seen in the context of the support that is not being provided or has not been uprated, as well as the Government’s wider approach to social security. The uprating order does not include child benefit, jobseeker’s allowance, employment and support allowance, income support, housing benefit, local housing allowance rates, child tax credit, working tax credit and the majority of comparable elements of universal credit.

The Government’s decision to limit the cap on uprating to 1% between 2013 and 2015 and the subsequent freeze on the vast majority of social security payments has seen low-income households suffer a significant deterioration in the adequacy of social security support. The freeze to payments and support is having an extremely detrimental impact upon millions of people on low incomes across the UK. Over the last year, inflation has more than doubled, hitting a five-year high of 3.1% in December 2017. It currently stands at 3%.

The payments subject to uprating were uprated by just 1% last year, with the vast majority of social security payments remaining frozen. To put that into context, research by the Joseph Rowntree Foundation shows that the price of essentials has risen three times faster than wages over the past 10 years. Food prices have increased by 4.1%, transport by 4.5% and clothing and footwear by 3%. People are suffering a continued increase in the cost of living, and that is being exacerbated by wage stagnation and the rise in insecure work caused by the Government’s inadequate economic policies. Last year, in-work families on the national living wage saw minimum costs rise faster than their net income because in-work payments were frozen and any rises in pay were clawed back by tax credit reductions. While millions of families are seeing their incomes fall in real terms, the wealth of the richest few continues to soar, with FTSE 250 bosses seeing their pay rise by 11% in the last two years alone.

Despite promises to tackle these burning injustices, the income gap between the richest and poorest in our society has almost doubled. Britain’s top bosses are paid, on average, 165 times more than a nurse, 140 times more than a teacher and 312 times more than a careworker. Research from the Resolution Foundation shows that the poorest families will see their incomes drop by an average of 2% by 2021, while the richest fifth of households will see their wealth increase by 5%. It is clear that the Government’s cuts to social security support are pushing more and more people into poverty. The Joseph Rowntree Foundation has called on the Government to end the freeze to social security payments, as has the Child Poverty Action Group, which states that

“the failure to uprate benefits in line with inflation is the single biggest driver behind child poverty”.

Following the 2015 summer Budget, the Government’s flagship universal credit programme saw cuts to the work allowance. That was on top of the scrapping of severe disability premiums, the imposition of the minimum income floor for the self-employed and the limiting of child tax credit support to the first two children. As a result of those cuts and the freeze, not only is universal credit failing to make work pay, but instead of reducing poverty it is actually exacerbating it.

[Kate Green]

My hon. Friend may also be aware of the difficulties people are having claiming the childcare element of universal credit—the bureaucratic burdens which are compounding the freezes and cuts she is talking about and which mean that families cannot get the childcare support they used to be able to fund relatively easily under the tax credit system.

[Debbie Abrahams]

My hon. Friend makes an excellent point. There are many different aspects to the Government’s still inadequate response on how they will fix universal credit. She has highlighted one, and we heard earlier in oral questions about the debacle of free school meals and how more children will be deprived of free school meals.

What is the Minister’s assessment of the impact of the social security uprating cap on poverty levels? Does he accept the Child Poverty Action Group’s analysis that 1 million more children will be pushed into poverty as a direct result of the cuts to universal credit? Does he accept the Equality and Human Rights Commission’s report on the cumulative impact on disabled people, which estimates that a disabled adult will have lost on average £2,500 a year since 2010?

Despite announcing a small amount of additional investment in the autumn Budget to prop up universal credit, in reality, the Chancellor has only reintroduced £1 for every £10 cut by his predecessor. Why are the Government choosing not to uprate social security payments in a way that reflects the economic reality for those in most need? I remind hon. Members that the Child Poverty Action Group estimates that cuts to universal credit will force 1 million additional children into poverty by 2020. The social security system should prevent people from getting into debt and poverty, not make things worse.

By continuing the freeze on social security payments not included in this order, the Government are subjecting 10.5 million households to an average cut of £450 a year up to 2020. The order was a chance for the Government to recognise the desperate reality for many of the poorest and most vulnerable people in our society, but they have failed to do so. As charities across the sector have been asking, will the Minister ensure the end of the freeze on other social security payments in next month’s Budget statement?

The order allows for discretionary upratings to be made by the Minister where he deems it necessary and appropriate. I want to be clear that we welcome the Minister’s decision to include a 3% uprating to the work allowance element of universal credit in the list of discretionary upratings in these measures, but the reality of people’s lives demands more. This again raises questions about the consistency of the Government’s argument to uprate some social security payments and not others. If he believes that the work allowance element of universal credit should be uprated, as the Opposition do, will he explain why tax credits are not also being uprated by the same amount? Why the disparity?

The Government cut the work allowance element of universal credit in 2015, yet subsequently have recognised the need to uprate it through the discretionary element in the order—although not to a level that reflects the reality of the rising costs of living and previous cuts. Is that an admission that they were wrong to cut work allowances in 2015?

Moving on to the pensions element of this uprating, I welcome the uprating of the state pension via the triple lock. I am glad to see that has survived, given the Government’s indifference to it last year, but I want to put on the record concerns about the public’s levels of understanding of the new single-tier pension and the paucity of information the Government have made available. As we know, there are both winners and losers as a result of the Government’s changes and most new pensioners will not receive the full single-tier pension. Before its introduction, it was estimated that only around 22% of women and half of men reaching state pension age would be entitled to the full single-tier pension. Will the Minister update the House on that?

In addition to the numerous social security payments subject to the Government’s benefits freeze and not uprated in this order, there are some very significant further omissions. Although the state pension is being uprated, people who have frozen pensions are excluded from the uprating and will not see an increase in their state pension in line with inflation. Pensioners living abroad face very different circumstances depending on whether their country of residence has a reciprocal agreement with the UK for the uprating of state pensions. Pensioners in countries without this arrangement see their pensions frozen at their initial retirement level, which means that the value of their pension falls in real terms every single year.

More than half a million people currently have their pensions frozen, mostly in Commonwealth countries such as India, Australia, Canada, parts of the Caribbean and New Zealand, and in countries with strong family and historical links to the UK such as Pakistan and parts of Africa. The Opposition believe that their pensions should be protected in the same way that the pensions of other UK citizens living abroad are in the future, yet the Government are choosing to withhold the pension uprating in this order from 550,000 recipients living outside the UK. This is a chance for the Government to make an historic change to our pension system and support our policy to end future arbitrary discrimination against some British pensioners living overseas by uprating in line with inflation from this point. Will the Minister look again at that issue and take action to address that inequality?

Not only have the Government failed to support pensioners living abroad; they have failed to address the current injustice faced by many millions of women born in the 1950s. It is important that the Government not only recognise the real injustice that women born in the 1950s have been dealt as a result of Government changes to pensions policy, but take action to remedy this injustice.

[Mr Jim Cunningham (Coventry South) (Lab)]

I agree totally with my hon. Friend. Millions of people living in this country have suffered discrimination because of the Government’s policies, particularly the women born in the early 1950s. The Government could do something about it and I can say this to them: as long as they refuse to do something about it, we will keep raising it.

[Debbie Abrahams]

My hon. Friend speaks strongly on behalf of his constituents and women born in the 1950s, given what they are going through, and long may he continue to do so.

There can be no doubt that women have borne the brunt of the Government’s cuts over the past seven years, but that applies particularly to women born in the 1950s, who have been dealt a real injustice through the accelerated increase in their state pension age. The Government have no excuse not to bring forward retirement for women born in the 1950s and early drawdown of their pension, as it is entirely cost-neutral. Alongside our proposals for the extension of pension credit, these additional measures would mean that people affected by the Government’s chaotic mismanagement of state pension equalisation would have the option to retire earlier, and would allow for much-needed financial support. The Government are in a position to implement proposals for early drawdown immediately, but they refuse to do so. I should be grateful if the Minister could explain exactly why that is.

Let me make it clear that the proposals are a “starter”. They do not in any way preclude further action, or even compensation, for this group of women. Will the Minister commit himself to reviewing the Government’s approach to pensions provision for women born in the 1950s, and will he release the original legal opinion contained in the “pink files”?

In the context that I have set out, a 3% uprating of some social security entitlements is unlikely to do much for those who are “just about managing”. As a matter of principle, the uprating should apply to all entitlements, not just the ones that the Government have cherry-picked. In the meantime, although we regret the limit on the groups who will benefit from the uprating, we must support the order, because otherwise those identified will lose out.

Let me now turn to the draft Guaranteed Minimum Pensions Increase Order 2018. We support the uprating of the guaranteed minimum pension in line with inflation, but we believe that some of the issues that were raised last year about the new state pension arrangements that came into effect in April 2016 remain unresolved.

The old state pension had two main components: a basic state pension; and a state earnings-related pension. People who made national insurance contributions at the full rate built up a basic state pension, but an option created in 1978 enabled people to contract out into another pension scheme, either voluntarily or via their employer on their behalf, on the basis that the other scheme met certain criteria. Between 1978 and 1997, schemes that took on such new members were required to provide a “guaranteed minimum pension”. The guaranteed minimum pension system was discontinued by the then Government in 1997.

In 2016, the Government’s introduction of the new state pension ended contracting out by replacing the additional state pension with a single tier. Working-age people now have their existing state pension entitlement adjusted for previous periods of contracting out and transferred to the new state pension scheme. For people who have guaranteed minimum pensions rights under an old pension scheme but who reached retirement age after April 2016, the Government no longer take account of inflation increases in guaranteed minimum pensions when uprating people’s new state pensions. The changes mean that any guaranteed minimum pensions accrued between 1978 and 1988 will not be uprated, and the scheme provider will uprate guaranteed minimum pensions built up between 1988 and 1997 only to a maximum of 3% each year.

When the National Audit Office investigated the impact of the changes, it concluded that there would be some winners and some losers under the new arrangements, depending on the time for which people were contracted into a scheme. Those whose state pensions have been pushed back because of the rise in state pension age will lose out on guaranteed minimum pensions inflation-linked increases that would have been received under the old rules. However, those who lose under the new rules may be able to build up additional entitlement to the state pension. The issue here is a lack of clear information, as is too often the case with the Government.

The NAO report stated:

“Some people are likely to lose out and they have not been able to find the information they need.”

Why did the Government fail to provide information that would enable people to make informed decisions? The NAO also said that it was

“concerned that the Department has limited information about who is affected by the impact of pension reforms on Guaranteed Minimum Pensions.”

Will the Minister provide a much-needed update on the number of people who have been affected since the relevant legislation came into effect? What support is available to help people to understand the changes?

I hope that the Minister will address all the issues that I have raised in respect of both orders.

--- Later in debate ---

[Kit Malthouse]

This has been a lively debate—certainly more lively than it has been in the past. Doubtless many of the arguments made—not least as much of the debate was about what is not in the order rather than what is in it—were exactly the same as those made last year. Therefore, I do not propose to detain the House for too long. A number of Members raised a series of detailed points, which I will try to address in writing, if I may, should I fail to address them in my speech.

The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) raised a couple of issues I want to address. First, she asked when the Government will produce a cumulative impact assessment of all welfare reforms. The Treasury published a cumulative distributional analysis alongside the Budget, in November last year, showing the impacts on household income of tax, welfare and expenditure, so I would point her to that. She also asked about the new state pension communications, as did a number of other hon. Members. She will be pleased to know that, following the National Audit Office report last year, from which she quoted, the Department for Work and Pensions launched an online “Check your State Pension” service.

[Debbie Abrahams]

rose—

[Kit Malthouse]

I will carry on. The service has had 7 million views since February 2016. Notwithstanding that, there is obviously more work to do on communications.

The hon. Member for Airdrie and Shotts (Neil Gray) asked why bereavement support payments have not been uprated. A bereavement support payment is not a cost-of-living benefit and is paid in addition to means-tested benefits to protect the least well off, so it is not necessary to uprate it in line with the cost of living. Unlike bereavement allowance and widowed parent’s allowance, bereavement support payment is paid in addition to other benefits to which the recipient is entitled, helping those on the lowest incomes the most. The hon. Gentleman will know that the up-front payment for those with children has been increased from £2,000 to £3,500.

Personal Independence Payment

Debbie Abrahams Excerpts

Tuesday 23rd January 2018 Commons Chamber

[Ms McVey]

I thank my right hon. Friend. He spent many years working on social issues and cases, and established the Centre for Social Justice. The change that he brought about was not just about changing the benefits, but about reaching out to people who are sometimes left alone. Some of those people did want to be helped to get back into work. They did want to talk about their hopes and aspirations. There are now over 600,000 more disabled people in work, because they chose that path towards self-determination and the fulfilment of their ambitions and hopes.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Thank you for granting the urgent question, Mr Speaker, and I congratulate the hon. Member for Glenrothes (Peter Grant).

Any disabled person who listened to what was said by the Secretary of State will have been gobsmacked by the suggestion that there is a commitment to disabled people. The United Nations Committee on the Rights of Persons with Disabilities has described the Government’s action as a “human catastrophe”. The cuts that they have wrought on disabled people are an absolute disgrace.

As my hon. Friend the Member for Battersea (Marsha De Cordova) said when she raised a point of order yesterday, the Government sneaked out a written statement late on Friday, announcing that they would not appeal against the High Court judgment of 21 December, in effect reversing the emergency PIP regulations that they had introduced in February last year. Those regulations were introduced without a vote or a debate, despite two urgent questions and an emergency debate, and despite widespread concern about their impact. The Government’s own Social Security Advisory Committee was not consulted. I warned at the time:

“The move to undermine and subvert independent tribunal judgments is unprecedented, and ... marks very troubling behaviour by the Government on cases they lose that could weaken such social security tribunal judgments’ reach, influence and effectiveness in making independent decisions.”—[Official Report, 28 March 2017; Vol. 624, c. 145.]

I am pleased that the Secretary of State and her Department have finally seen sense, but there are a number of questions that the Secretary of State must answer—questions that have already been put by my hon. Friend the Member for Battersea. How many people does her Department estimate have been affected? How quickly will her Department be able to identify affected claimants, and by what process? Given the issues relating to letters from that Department, it is a little worrying if that is the only means.

How soon after identification will the Department make back payments? Will there be an appeal process for PIP claimants who are not contacted by the Department and who believe they should receive such payments? Will the Department compensate claimants who have fallen into debt and accrued interest charges? Will applicants be entitled to a reassessment if they were given the standard rate of the PIP mobility component after the February 2017 changes to PIP regulations, when the cause of the claim was “psychological distress”?

Finally, just how much public money has been spent by the Department on lawyers and legal advice seeking to defend the indefensible in the initial tribunal and the more recent court case?

This sorry debacle should serve as a warning to the Government of the dangers of seeking to undermine and subvert the decisions of our independent judiciary and the House of Commons.

Private Sector Pensions

Debbie Abrahams Excerpts

Monday 22nd January 2018 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on the Government’s plans to stop private sector pension abuse.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

The vast majority of employers do the right thing by their pension schemes, and members can expect to receive the pension benefits they have paid for throughout their working lives. The Pensions Regulator and the Pension Protection Fund were set up in 2004 to provide pension scheme members with a safety net to ensure pension benefits receive some protection when things go wrong—it is a fact that some businesses will fail. The PPF approach has been supported on a cross-party basis since 2004.

To prevent irresponsible employers from off-loading pension liabilities on to the PPF, the regulator was given a range of powers, including the ability to recover significant assets where employers failed to take account of the scheme. There are about 6,000 defined benefit schemes, however, and such cases are very few and far between. It is the responsibility of the regulator to strike a balance between protecting members and PPF levy payers, and minimising any adverse effects on the sustainability of employers and businesses when it comes to the regulation of defined benefit funding.

The regulator does not have the power to stop businesses paying out bonuses to executives or dividends to shareholders, but if it believes that a scheme is not being treated fairly, it will investigate to see whether the use of its powers is appropriate. The Government are clear, however, that where sponsoring employers can meet their pension promises, they should and must do so. That is why we have suggested ways of strengthening the current scheme to enable the regulator to be more proactive. In fact last February we published our Green Paper, “Security and Sustainability in Defined Benefit Pension Schemes”, which included suggested measures that could strengthen the powers of the Pensions Regulator by introducing punitive fines for actions that harm a pension scheme. We also set out powers to enhance the regulator’s ability to demand information to ensure effective governance and spot issues before damage is done.

Our manifesto in June 2017 reaffirmed this intent by proposing to give the regulator the power to impose punitive fines alongside contribution notices so that pension scheme members are fully protected. The details of the fine would be worked through with all the relevant stakeholders, but it would represent a significant strengthening of the deterrent. We also intend to make certain corporate transactions subject to mandatory clearance by the Pensions Regulator, but we must take care to ensure that these measures do not have an adverse effect on legitimate business activity and the wider economy.

I should tell colleagues that we have received 800 responses to the Green Paper, and they are being reviewed by the Department. The White Paper is in progress and will be published in the spring. Effective regulation is dependent on a prompt flow of information between the parties concerned, and on compliance with rules and processes. Following the publication of the White Paper, we will introduce new regulation to ensure that the regulator gets the information it requires to conduct investigations and casework effectively and efficiently. It remains the case that the Government support free markets, enterprise and businesses, but this has to be conducted responsibly.

[Debbie Abrahams]

Yesterday, the Prime Minister chose to announce via the media, in part in response to the collapse of Carillion, that the Government planned to introduce tough new rules to stop private sector pension abuse. Carillion had 13 defined benefit schemes in the UK, with 28,500 members and a combined pensions deficit of £587 million. Between the end of 2015 and last year’s interim results, the difference between Carillion’s assets and liabilities almost doubled, from £317 million to £587 million. We know that profit warnings started to be issued in the summer of 2017. Given the severity of the financial problems facing Carillion, why did the Government not act then, rather than attempting to close the stable door after the horse had bolted?

We have argued for years that the Government should take better action to protect people’s pensions. The Government had the opportunity to act in 2013 and again in 2015, by supporting Labour’s amendments to pensions governance in legislation. More recently, the Work and Pensions Committee warned the Government of the need for protections and for more powers for the regulator. Although we welcome the Green Paper, the urgency has just not been there. Why did the Minister choose to ignore those warnings?

The Committee made a number of recommendations, including that the Pensions Regulator should have mandatory clearance powers for corporate activities that put pension schemes at risk, and that it should have new powers to impose fines at a level that would genuinely deter such dangerous and irresponsible behaviour. Why did the Government refuse to implement those recommendations at the time? Are the Government now ready to commit to implementing them fully? If the Government had taken action, Carillion’s massive debt accrual might have been arrested.

Given the scale of the liabilities and the concerns for other defined benefit schemes, what does this mean for the adequacy of the Pension Protection Fund? The collapse of Carillion has already led to a rise in pension scammers targeting those with pension pots. What about the defined contribution schemes that are not covered by the Pension Protection Fund? Will the Secretary of State investigate the apparent conflict involved in BlackRock being responsible for those schemes while simultaneously betting against their employer? Finally, can she advise the House what measures will be proposed in the White Paper, and when, exactly, they will be brought to the House?

[Ms McVey]

As Members on both sides of the House know, the regulator is an independent, arm’s length body. It was set up in 2004 after much discussion about how it should work and how it could best support pensioners when they needed its help. What it never did was to interfere with the running of a business; that was what was decided. We said that we needed to make sure that we could go further if we had to. That is why we have set about introducing a Green Paper—as I said, we have had 800 consultation responses—looking at where it is best to intervene, to make sure that we get the balance right. We do not want to tip the edge and unnecessarily cause harm to a business.

Profit warnings mean that a company will not get the profit that it expected—no more than that. We have to make sure that the Government do not precipitate anything that could be seen as negative from business. That is why we are looking at all these 800 responses, looking carefully and considering how to protect companies’ employees, protect pensions and move forward in the most conducive and careful manner. The new White Paper will be coming forward later this year.