Defined-benefit Pension Schemes

Jim Shannon Excerpts

Tuesday 10th July 2018 Westminster Hall

[Laura Smith]

I thank my hon. Friend for making that point. From my conversation with the Minister before the debate, I am sure he will be happy to talk about that in his speech and when he meets the Pensions Regulator.

The Green Paper shows that there has been a clear decline in gilt yields over the past two decades. The public sector trade union, Unison, is of the view that most schemes that did not hedge their risk should seriously consider using that discount rate method.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing this matter to the Chamber. On average, people believe that their living expenses will account for 34% of their pension, yet they will actually account for 49%. Does she agree that more should be done to ensure that people make the most of pension schemes by paying in themselves? I think that is the thrust of what she is saying—that individuals should make more effort rather than relying on employer contributions, which in many cases have been found to be suspect.

[Laura Smith]

I apologise to the hon. Gentleman—it was hard to hear him because of the sound of the fans. I will come on to those points.

Basing assumptions on gilts may artificially inflate deficits and future service costs for the sponsoring employer and scheme members. That may lead to the unnecessary closure of schemes to new members and future benefit accrual. Unison’s experience is that some employers would rather pay more and use the increase in costs as an excuse to close their DB scheme, saving money by transferring members into a DC scheme with lower employer contributions, which results in reduced pension benefits for scheme members.

Not only are DB schemes desirable, but they can be affordable and good value for money. We should do everything we can to protect them. The Government’s role should be to provide an adequate regulatory framework, meaningful enforcement and appropriate incentives to help encourage sound decision making and ultimately to provide decent pensions. I welcome the Government’s White Paper and the regulator’s ambition to be clearer, quicker and tougher.

I hope that the Minister can provide me with a little more clarity or reassurance about three issues. First, there appears to be no new relief for employers struggling with DB liabilities. Although I welcome the suggestion that there should be penalties for directors who do not take sufficient care of scheme members’ interests, without support for struggling employers, tougher rules may simply incentivise more of them to close DB schemes in favour of DC schemes with inferior pensions for workers. Secondly, what additional resources are being provided to ensure TPR has the capability and capacity to effectively regulate the sector?

Thirdly, encouraging consolidation over alternative options would not prioritise the protection of members’ benefits, which should be the Government’s primary focus. I understand that insurance buy-out remains the best solution for guaranteeing member benefits in DB schemes. Securing member benefits should be paramount. With an insurer, members are almost certain to receive their benefits in full. The Association of British Insurers believes that prices are the best consultants have ever seen, and that that option is available to smaller schemes.

Although I understand there is a need to provide options for employers that simply cannot secure a buy-out, any new framework should not incentivise consolidation purely on the basis that it is a cheaper option. The risk of investment failure was highlighted by the Pension Protection Fund in a submission to the Select Committee on Work and Pensions. In the absence of a substantive employer, the security of members is entirely dependent on the investment performance of the fund and the associated buffer. Consolidation is therefore less secure than buy-out, and profit withdrawal in years of good investment returns may lead to scheme failure by preventing a strong build-up of reserves.

Consolidation also means that risk, rather than being dispersed across several schemes, becomes focused on one investment strategy. Different consolidators may be inclined to pursue the same investment strategy, resulting in a high correlation of risk in the DB sector. Obviously, that may lead to all schemes failing at the same time. I am also concerned that younger members may shoulder the risk of commercial consolidators collapsing. We should not pursue any policy that leads to greater intergenerational unfairness.

To put it plainly, I am concerned that the option to consolidate or transfer into a super-fund may be seen by some employers as another bolthole to escape their liabilities on the cheap.

Accessibility Challenges: Invisible Disabilities

Jim Shannon Excerpts

Monday 18th June 2018 Commons Chamber

[Martin Whitfield (East Lothian) (Lab)]

It is an honour to stand in Parliament tonight to raise the important matter of the accessibility challenges faced by those in society who have invisible disabilities.

The World Health Organisation estimates that 1 billion people across the world carry a disability in some form, which is a telling statistic. We should consider the suggestion in an American survey that nearly 74% of people have disabilities that are hidden. However, I by no means wish to use parliamentary time to shun or ignore the accessibility challenges for those who rely on wheelchairs or mobility assistance. We have made huge progress, but there is still a long way to go to ensure that—from street furniture to narrow doors, steps and bollards—Britain is open and inclusive for all, yet these infrastructural improvements must go hand in hand with challenging the preconceived attitudes that exist towards both people with visible and people with invisible disabilities.

I want briefly to explain why I am so proud to stand here tonight. It stems from the tireless work of a young woman whom I have had the privilege to know, teach and fundraise for, and someone whom I am proud to call a friend. Grace Warnock is a diligent and inspirational campaigner for disability awareness, and someone whom I had the pleasure of teaching in Prestonpans in my constituency of East Lothian. She was diagnosed with Crohn’s disease, a condition which I watched my mother suffer from in her 60s. I am sure that Members across the House are aware of the disease, particularly the challenges they face on a day-to-day basis. From the start of this debate, to the House adjourning this evening, one more person in the UK will be diagnosed with Crohn’s disease, and that person will join the 300,000 people in the UK with the disease. It is a disease that has no cure.

I have had the pleasure to speak to Crohn’s and Colitis UK, which is not just dedicating valuable time and effort to research this condition, but—for the purposes of this debate, I want highlight this role—is at the forefront of the campaign to end the societal stigma attached to this disease. Crohn’s and Colitis UK is clear that overriding stigmas and false assumptions often challenge people with inflammatory bowel disease. That is why its own research shows that 49% of people living with this condition have been abused or verbally questioned for using an accessible toilet.

When Grace was just in primary school, she too experienced this. She noticed early on how people looked at her differently when she came out of an accessible toilet. She was faced with their bemusement, and people saying, “Why are you using those toilets?” Worse, she often faced glares of hostility. She could sense people were looking at her angrily, thinking, “You should queue like the rest of us.” Grace could have ignored this—she could simply have pretended she did not acknowledge this antagonism—yet she went home and decided to do something about it. She did not want to shout at these people or to scream in their faces; she wanted to educate them.

[Jim Shannon (Strangford) (DUP)]

I thank and commend the hon. Gentleman for bringing forward this very important debate. The “Not all illnesses are visible” slogan is being taken on board by my local council in Northern Ireland. Ards and North Down Borough Council is promoting the slogan in all the toilets in the council areas. Does the hon. Gentleman agree that more firms and businesses and more public bodies should ensure that people understand that a wheelchair is not necessarily the only reason for accessing a disabled toilet and that many people with hidden illnesses have the same need to do so?

[Martin Whitfield]

I am grateful to the hon. Gentleman for his intervention. It is true that the fact that something is not visible does not mean it is not there. Indeed, it was the absence of anything visible that seemed to upset the people who saw Grace standing outside the accessible toilets.

Grace went on to develop “Grace’s sign”—a powerful visual aid to articulate her inclusive message. I will abide by parliamentary protocol and hold back from displaying the sign, but for those not aware of it I should explain that it depicts a conventional wheelchair symbol, alongside which are a man and woman standing, both with an emphasised red heart. Why the red heart? Grace is asking all of us to think about those invisible disabilities, but she is also asking people to think using their hearts—to hold back and have the empathy to recognise that people with a range of different conditions may need to use accessible facilities.

The sign projects a powerful message: think with your heart and do not rush to judgment. Think and express yourself with compassion and decency. I am very proud at how far the sign has travelled across Scotland—from the Parliament building in Holyrood, to airports, shopping malls, leisure centres, businesses, council offices and the school where I used to teach. Slowly but surely, attitudes are changing across Scotland. I believe it is now the time to spread the campaign across the whole UK.

What has Grace achieved aside from what I have already mentioned? The Edinburgh Evening News awarded her “local hero” status and she won a Young Scot award and a British Citizen award. Recently, she also won the Prime Minister’s prestigious Points of Light award. People will not hear too many voices on this side of the House praising the Prime Minister, but I take this opportunity to thank her for the unique honour she bestowed on Grace. At her high school, Grace also received an award for her work outwith the school in the community.

In Scotland, this is the year of the young people—a fitting celebration of the flair, creativeness and compassion that I know, as a teacher and a father, young people hold. I am sure all Members would agree that those traits are at the very core of Grace’s sign. I hope they will also agree that we need to take the ethos of Grace’s campaign and begin applying it to all hidden disabilities. As I prepared to discuss this matter, it was striking how many organisations and charities came forward to ask me to advocate on behalf of the causes that they represent. There is also the wonderful debate that we have just had in this Chamber.

Personal Independence Payments

Jim Shannon Excerpts

Monday 4th June 2018 Commons Chamber

[Ms McVey]

My hon. Friend is right. As I said earlier, more than 3 million assessments have been carried out, 9% have been appealed against and 4% have been overturned, so it is clear that the vast majority are right. However, we want to ensure as far as we can that all of them are right. If that means recording assessments—and I personally would prefer video recording—that is what we should do, so that everyone can have confidence in what is going on.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her statement. PIP applicants who are wards of court because, owing to brain injuries, they are unable to make any decisions for themselves must nevertheless go through the application process and are subject to house visits, although, according to the court, they cannot be allowed to make any financial or personal decisions. Is it not time that such people did not have to go through a process that clearly disadvantages them and causes considerable trauma and angst?

Universal Credit and Terminal Illness

Jim Shannon Excerpts

Wednesday 9th May 2018 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

When I was elected in 2015, I had an early meeting with the Macmillan citizens advice bureau. I had lots of dealings with the citizens advice bureau before being elected and know that it dealt with hundreds of cases, some of which I brought to it as the then leader of the council. It dealt with people with chaotic lives—desperate people in difficult conditions—and it is fair to say that its staff were battle-hardened professionals helping people. I think it is very telling that, when they told me about the struggles of the terminally ill when they transfer to universal credit, it was the first time that I had ever seen them in tears.

Imagine the moment that a person hears from their doctor that they are terminally ill. In that instant, nothing for them or their families will ever be the same again. It is one fateful moment that changes everything—their entire world. Suddenly, priorities shift and they become acutely aware of every second as it passes. Terminal illness deeply affects families in our communities and the very least that they should expect, when asking for help from a Government, is that support is prompt and sympathetic to their situation. The trouble is that that is not what they are getting. It is not even close to that.

As I mentioned, my constituency was one of the first to experience universal credit. As the then leader of the Highland Council, I highlighted many issues that we experienced with the pilot. As a local authority, we fed back the countless issues that we encountered. All those concerns were ignored in the name of agile development and the Government recklessly proceeded to live service, causing unprecedented poverty to hundreds of single people in my constituency. We begged for mercy. We asked, we cajoled, we demanded that something be done, but, despite it all, we were ignored.

As I said, I was elected to this place in 2015, when the Government were pressing ahead with the roll-out of full service, leaving families, the disabled, single parents and children for months without money, and for no other reason than they had failed to listen and failed to act, and so failed the very people they were supposed to serve.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on his tenacity, his courage and his determination on this issue. We all admire him for his efforts. Does he not agree that charities such as Macmillan Cancer Support do a wonderful job helping terminally ill people to source benefits, that it is imperative they have up-to-date training to do this and, more importantly, that Government staff dealing with terminally ill people are taught how to deal with them with a compassion and respect that seems not to come naturally to at least some people?

[Drew Hendry]

I agree entirely that a change of pace is needed and that an attempt must be made to adopt towards people put in these positions a genuinely sympathetic approach and to demonstrate an empathy for what they are going through that has been sadly missing.

Women and Work

Jim Shannon Excerpts

Wednesday 14th March 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Redditch (Rachel Maclean) on securing the debate and setting the scene so very well. I will give some stats, then some information about my own office and where I stand.

In the period October to December 2017 in the UK, 15.1 million women aged 16 and over were in employment. The employment rate was 70.8% for women, compared with 79.7% for men; 8.8 million women were working full time and 6.3 million part time; and 42% of women in employment were working part time compared with 13% of men—so part-time work for women is far above the norm elsewhere.

The most common sectors of employment for women are health and social work, accounting for 20% of all jobs held by women at September 2017; wholesale and retail, 14%; and education, 12%. Around 78% of jobs in the health and social work sector and 70% of jobs in the education sector were held by women. Around 20% of small and medium-sized enterprises with employees were led by women, and it is good to see that happening. As the hon. Member for Redditch, as a former employer, said, there is a lot more that we can do to encourage that, and I look to the Minister for his thoughts.

Men are more likely than women to be involved in total early-stage entrepreneurial activity, which includes owning or running a business less than 3.5 years old. At February 2018, 29% of directors of FTSE 100 companies were women and at the next stage down, in the FTSE 250, 23% of directors were women.

In 2010 I was elected here, my wife came over and she got a wee fridge magnet. It was a famous quote from Margaret Thatcher, which we all know: “If you want something said, ask a man; if you want something done, ask a woman.” My wife put that on the fridge for a purpose—I am wondering whether there is a message there that she is trying to tell me—and I am reminded of it every day because it is still there.

The contribution of working women is incredible when added to the fact that many have main care of their children and also run their household—that is something that has to be recognised. As a proud employer of six staff, I must highlight that five of the six are women. One is a lady in her 50s with her children raised who works part time and minds her grandchildren part time, and for whom I provide flexible working. A lady in her 40s with her children mostly grown works full time for me, and another in her 40s works part time. Another lady, in her 30s, with a two-year-old and a three-year-old, works full time doing my speeches and press—as I am sure hon. Members know, I keep her very busy on speeches, and she does a lot of overtime. On her return home, it is not unknown for her to email documentation and speeches to me for the next day at 12.30 in the morning. That is the sort of person she is, and she does it because I have given her flexible hours and she likes doing it. I do not press her about anything, letting her do it as she sees fit. A girl in her 20s also works for me four days a week.

I therefore have a staff with different ages, from different backgrounds and at different stages of their lives, and yet one similar purpose links them all together—not just my office—which is that they wish to work, and work very hard. That is what they do. I might well have lost one of my best workers when my parliamentary aide had two maternity leaves within one year, but we had the discussion of how to make changes to make things happen so that she could be a great mother and still be great in her job. I made it clear that I was willing to work with her to make it work. She has been back at work for more than a year, but I have learned that family comes first—I always believed that anyway—and that she is more than capable of holding everything together. I did not penalise her for her maternity leave, but became flexible to ensure that I did not lose a great worker.

[Julie Cooper (Burnley) (Lab)]

Does the hon. Gentleman agree that one of the barriers to promoting women’s full contribution in the world of work is the sufficient supply of quality childcare?

[Jim Shannon]

I am glad the hon. Lady mentioned that, because childcare is very important. For many ladies in my constituency, the availability of and access to childcare mean that they are able to work.

I have another great example of a working women in my mother. She is at pains to let us know—my mother tells this story about when I was born, which was a long time ago—that she was in the shop working again within 48 hours of giving birth. My mother must be a very strong lady. We owned a shop and she worked beside my dad every day. She ran our home and the shop, she helped in the church, and she regimented us with the ability of a sergeant-major or indeed a general, but at the same time she gave us a wonderful example of love and care.

I pay my staff the same wage whether they are men or women. Sadly, however, somewhere along the line as a society some people determined that it is acceptable to pay different wages for the same job, due not to job performance or ability, but to gender. I want to say clearly: that is unacceptable to me. I want to see the same wages for men and for women, so let us say that together and get it right.

Yes, there is the potential for a member of staff to take maternity leave or request flexible working hours to suit a family when they are female, but in today’s society men are just as able and willing to take care of their children, and rightly so. The gender pay gap does not simply apply in the BBC or Hollywood; we see it day in and day out, and it is not right. I would take great exception to anyone who decided that my granddaughters were worth less because they are girls—they are strong, bright, courageous and ready to take on the world, and in this day and age they should be allowed to do so without discrimination, based on their ability and not solely on their gender. That is the way that it should and must be, and we have a role to play. I am willing, as the Member of Parliament for Strangford, to do my bit to make that happen.

Disabled People and Economic Growth

Jim Shannon Excerpts

Thursday 22nd February 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to follow the hon. Member for Chippenham (Michelle Donelan), and I thank her for her contribution. I congratulate the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron)—I hope that I pronounced her constituency correctly. [Interruption.] Ah, almost right. I will have to practise it. She is very clearly a champion for those with disabilities, and I am very pleased to be part of the all-party group for disability, which she chairs. Yesterday, I was able to participate in some of those things that she mentioned and give a Northern Ireland perspective on them. I will probably also give a Northern Ireland perspective today on where we are with this matter.

It is also nice to see the Minister in her place. We had an expression of her interest in this subject yesterday when we had the opportunity to take part in the disability confident campaign that the hon. Lady and the Minister organised. It was good to be able to support what the Minister was doing, but it also gave me the opportunity to increase my knowledge of the subject. The one thing about being an MP—in fact, the one thing about being any person—is that we can learn every day if we want to. Of course I want to extend my knowledge, and yesterday gave me a chance to do just that. I was also able to interact with those who were there and explain to them what we were doing. For example, we are doing a number of things in my constituency in relation to this matter—I mean that private business is doing a number of things. There are also policies and strategies in place. I wish the shadow Minister, the hon. Member for Battersea (Marsha De Cordova), well and I look forward to her contribution.

It is a privilege to stand in this Chamber to represent and speak out for the many disabled people in our communities. We get our knowledge of this subject from our constituents, from our advice centres and from our everyday interaction in our communities. The briefing that the House of Commons Library so helpfully supplied said:

“Over 7 million people of working age (16-64) in the UK are disabled or have a health condition, and 3.5 million of these are in work.”

That is good news. It also stated that

“350,000 are unemployed (meaning that they are not in work but are actively looking for work)”.

I hope that this debate will provide us with the opportunity to see how we can achieve our goal. The briefing goes on to say that

“3.3 million are economically inactive (meaning they are not in work and are not looking for work).”

The fact is that some disabled people cannot work. That is a fact of life and must be accepted as such. However, for those who want to work, we should do our best to make that happen.

The employment rate of people who are disabled is 49.2%; the employment rate for people without disabilities is 80.6%. The employment rate for people with disabilities was 1.3 percentage points higher in April and June 2017 than in the same period of 2016. Over that same period, the number of people with disabilities in employment rose by 104,000. Clearly, a strategy is in place to try to address the issue, because more people with disabilities are in employment now than a year ago, so that must be good news.

Between July 2016 and June 2017, the employment rate—at 58.5%—was highest for people who were disabled in the south-west, and lowest in Northern Ireland at 36.7%. It is not often said, but the Library provides excellent information for us when we are preparing for these debates, which gives us a chance to do things well. I read the Disability Action report, “Hard at Work”, which was very interesting reading. As opposed to just citing the fact that there are only 33% of disabled people in work in Northern Ireland, it asks the question why, and I am going to ask that question in the Chamber today. I am very conscious that the Minister has no responsibility for Northern Ireland—I understand that—but to give some depth to this debate with facts and details, I want to add in the Northern Ireland perspective. Some things that have been done in Northern Ireland—or have not been done—can be put into practice on the mainland.

The overall employment rate in Northern Ireland is 5 percentage points lower than in Great Britain. For some groups, the gap is much wider—15 percentage points lower for disabled people in Northern Ireland compared with Great Britain. Thirty-three per cent of disabled people are in employment, which is less than half the rate of non-disabled people, and 50% of disabled applicants did not feel comfortable about disclosing their disability—I want to stress that point to the Minister because I am sure that it also applies to the UK mainland. This is something that we must address. I ask Members to forgive me for saying this, but we are all aware of the story that was in the press yesterday—I know that it is slightly different from what we are discussing today—about people having to disclose when they go for a job whether they are pregnant or intending to have a child. I think that it is wrong to ask that of anyone going for a job. The same thing applies to those with a disability. If a person does not say that they are disabled, they have a better chance of getting the job. If they say that they are disabled, will a wee box be ticked saying that they are not the right person for the job? Once in employment, disabled employees often do not feel confident about being open about their disability. Even when there is a problem in their job, they tend to keep it to themselves.

Research findings vary, estimating that between 20% and 50% of people with a disability feel that they face discrimination in employment, and less than half the respondents to one survey had asked for “reasonable adjustments”. Again, I say to the Minister that if people feel discriminated against, or if they are afraid to ask for reasonable adjustments, perhaps there is a big role for businesses to carry out. The reasons given for not asking for reasonable adjustments were

“not wanting to draw attention to their disability”

or because “it would be embarrassing” to do so. Of those who did ask, nearly a third said that they received little or no help following their requests. Perhaps that underlines the other issue. When people ask for something, they are not even sure whether they will get it, or whether it will be done. Again, that is something that we need to look at. Perhaps sometimes we have to enforce such things through legislation and through Government intervention. It is small wonder that many people with so much to offer feel like they are a burden and unwanted in the workplace. Those concerns have been referred to by other Members today.

Concerns among employers in relation to employing disabled people included perceived risks to productivity; financial and other implications of making workplace adjustments; and confusion or negative perceptions around legislation. Perhaps people need to be more aware of what the legislation means and what it means for business as well. Despite employers’ concerns about perceived financial implications, a survey of more than 1,000 employers found that the majority provided adjustments. Let us be clear about this: the majority of businesses try to do the right thing. I am talking here about flexible working patterns and hours with no associated cost increase. I would like to ask the Minister a question and perhaps she can respond when she has the opportunity to do so. Can she tell me whether financial incentives are available for businesses to make those changes? I think that, sometimes, the cost factor does concern some businesses. If there is some help for them to make those adjustments, it would be helpful.

A recent survey highlighted the fact that 40% of respondents said that the option of modified hours—such as flexible or part-time working—would be an important factor in enabling them to enter and to stay in work. Over the years, I have had the opportunity to look at what happens with the disability living allowance, which has now moved to the personal independence payment. Even if people are on DLA, they need therapeutic work. We must understand that, sometimes, people are not fully able to carry out their duties because of their disablement, but, therapeutically, it is good for them to have some work for a certain period of time. Perhaps the Minister could give us her thoughts on that in her response this afternoon.

Perhaps most worrying for this place is that we must get our own house in order. Let me just illustrate the problem by way of an example from the civil service, but I will not name the person involved. Disabled people in the public sector still report being passed over for development and promotion opportunities, and that their performance is unfairly assessed. This suggests that talent is being wasted and a culture of discontent is being fostered. If we have not got our own house in order in government—at all levels, wherever it may be: at this level, at regional level, at council level, and so on—that is the first step that we must address in this place.

I always say, with regard to expecting people with illnesses to be in work, that it is up to the Government to set the example. I often use the example, as I do now, of a young constituent of mine who worked in the civil service. She had her DDA form filled in, so her employer—the civil service—was aware that she had ulcerative colitis. She applied for a transfer to a Department closer to home to avoid the almost two-hour long rush-hour jaunt that she had to go through every day. She was not accommodated. She went to occupational health service meetings and was told numerous times that, yes, she should be off sick and should not return to work until the flare-up had settled down. She was then medically retired from work, as her employer felt she was unfit to work. She applied for benefits and was told that she was not entitled to ESA or DLA and that she should seek employment. This is the Catch-22 or chicken-and-egg situation—which comes first? The civil service expected someone to hire her, according to the ESA decision, just not itself.

Let us look at the process that she went through. At the age of 28, she was classified by the civil service as not fit to work but made to feel like a scrounger for feeling that if the civil service, with its hundreds of offices and roles and positions, could not facilitate her illness, then she would have no chance in the private sector. Thankfully, we were able to help with getting her ESA and DLA. Both claims went to appeals and reviews, but they were ultimately won. Every time she applied, we had to go through the same ritual because nobody believed that this girl could not work, despite the fact that she had been paid off because she was medically unfit. That makes absolutely no sense. We must lead by example. We must put into place initiatives that help disabled people to be confident in their abilities instead of feeling that only their disabilities are important. It is hard to expect small businesses to understand that a disability does not mean an inability to be a vital player in a team when we—I use the royal we, in terms of the civil service—are not able to do that, despite putting in place so-called protocols and schemes to prevent that from happening. This House is one place where I most certainly advocate that we get our house in order and do so quickly.

I look to my constituency and see the potential in our young people in Longstone School, which is one of the behavioural units where young people with disabilities as well as those with educational challenges are trained to work in what is sometimes, for them, a big, bad world. However, it is a world of opportunity, with so much more to offer, and we should be trying to move them towards it. Should we consider apprenticeships with financial support for those who have learning disabilities? I look to the Minister again. I have been looking to her for lots of answers; we are all doing so, because we respect her greatly. Would that help employers to think of employing disabled people as less of a gamble and to give them an opportunity? I am certain that many such apprenticeships would turn into employment.

What can we do to help those who want to work and have skills to offer, yet feel there is no place for them in the modern workplace? To me, that is what this debate is about. It is about giving them hope, vision and opportunity. If we can do that, we are moving in the right direction. I do not have the answers. My wife thinks that I have lots of answers, but I do not have answers to everything in the world. However, I try to seek out the answers, and that is the great advantage of this debate. I ask the Minister and her Department to consider this issue really seriously—I know that she will—and to come back to the House with more than a simple pledge to get disabled people into work. We need a plan to make this happen, starting with our own civil service.

I again commend the hon. Member for East Kilbride, Strathaven and Lesmahagow for her compassion and for her interest in disability. I also commend all the other Members who have come along here on a Thursday afternoon—the graveyard shift—to participate in a really important debate.

--- Later in debate ---

[Drew Hendry]

I thank the hon. Gentleman for his intervention. It is important to take into account the size and scale of the challenges people face, to make sure we are able to take full advantage.

As my hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow said, the UK already has a skills shortage, and the Brexit exodus of skilled labour means that the opportunity of training and apprenticeships must be embraced. As we have heard, the Government at the moment are not going far enough. Specialist advice services on self-employment are required, and we need to avoid stereotypes in these debates and the action that follows.

The additional challenges for disabled people also come down to hard cash and the extra costs that they have to cope with. New research from Scope shows that on average, disabled people have to find an additional £750 per month related to their condition, on top of any social security payments designed to meet those costs. The financial penalty locks disabled people out of being able to make a positive contribution to the economy. They need practical help, and the Government can help now. For example, the Government can help with motability, an issue that my hon. Friend is keen to bring up. Many people have seen their ability to move around or take part in employment and the economy hampered by motability issues.

It also comes down to the issue of PIP assessments. I was interested to hear from the hon. Member for Hitchin and Harpenden (Bim Afolami) and agree with him that more money should be spent on disability payments. There should be more social security to support disabled people, particularly given their disadvantage. The recent Work and Pensions Committee report on claimant experiences of PIP and ESA assessments presented clear evidence that the assessments are failing a substantial minority of claimants, with claimant stories highlighting clear errors made in assessments, crucial information being omitted and assessors lacking knowledge and expertise. It is not just about putting more money into the system; it is about making the system work for disabled people, which too often it does not at the moment.

[Jim Shannon]

Friday a week ago, I had the chance to meet Capita officials in Northern Ireland. I suggest to the hon. Gentleman and other Members that if it is possible to have such a meeting, it might be helpful. We were able to get a hotline to the people who can make the changes and to ensure that the people doing the assessments are up to speed, as he said. Capita needs to change some of the things it is doing. We are going to have a change in Northern Ireland, and Capita has committed to that. I suggest that others do the same in their own regions.

[Drew Hendry]

That is an important comment. I am sure that the hon. Gentleman, having listened to me speak on universal credit, PIP and ESA on many occasions, can be reassured that I have indeed made that visit and gone through that process, and I know what is involved. I think his substantive point is that it is a good thing to do. It does not iron out the difficulties that people have had over years and continue to have, but it can help, and wherever it can help, we must do that.

Between April 2016 and March 2017, the Scope helpline saw a 542% rise in calls related to PIP payments, and 65% of claimants who challenge a PIP decision at tribunal are successful. There is much more that the Government can do to help.

I want to finish with some criticisms, but given that I know the Minister will be listening carefully and looking for ways to take action, I will also talk about how we are doing things back in our own constituencies, as the hon. Member for Strangford (Jim Shannon) said, and how we are doing things differently in Scotland. I hope that the Minister will listen carefully and take the opportunity to learn or think about how things might be done differently.

We have seen the impact that the UK Government’s system has had on disabled people in Scotland. In October this year, the Scottish Government found that between 7,000 and 10,000 disabled people per year are being affected by the removal of the work-related activity component of employment and support allowance. That is completely appalling and simply unacceptable. They also found that 40,000 disabled people claiming ESA have been affected by the bedroom tax. ESA is supposed to support disabled people into employment. The Government have said that the £30-a-week cut was to remove incentives to be out of work. That is an outrageous thing to do. It is pushing people into poverty and into crisis.

The Government’s PIP assessment process is failing disabled people. According to the DWP figures from December 2017, one in five claimants who had gone through mandatory reconsideration for PIP had their reward changed, meaning that 20% of those initial decisions were judged as wrong. I hope that the Minister will consider some of the actions that have been taken in Scotland, with the very limited powers that have been transferred to Scotland.

Disabled people should have equal access to employment opportunities in Scotland, and the Scottish National party Government are committed to reducing the employment gap by at least half. Disabled people’s skills, hard work and commitment are valuable to any employer, and practical and financial support must be available to businesses. It makes sense to recruit from the widest pool of talent possible.

Disabled people account for 20% of Scotland’s population, and at the moment they make up just 11% of the private sector workforce and 11.7% of the public sector workforce. The Scottish Government will work with both sectors to look at target setting and how to redress the imbalance. In April 2017, the Scottish Government introduced employability programmes delivered by a new service, Work First Scotland, including employment support for up to 3,300 disabled people. In July last year, a campaign was launched to boost awareness among businesses of the benefits of employing people with disabilities, specifically targeting small and medium-sized enterprises.

From April 2018, a new devolved programme will take a voluntary and person-led approach to ensure that disabled people are offered support that is appropriate and built on guaranteed service expectations from providers. Disabled people engaging with the programme will receive high-quality pre-employment support that identifies and develops their strengths and assets, while focusing on sustainable employment outcomes. Only today, the Scottish Government announced that people will no longer see a reduction in their benefit payments during the appeal process. In the Minister’s response, she might say whether the UK Government will consider taking that action, too.

I think the message from both sides of the Chamber today has been crystal clear: let us do all that can be done to realise and release the potential of disabled people for economic growth.

Work and Pensions Committee

Jim Shannon Excerpts

Thursday 8th February 2018 Commons Chamber

[Frank Field]

There needs to be some internal sharing of information with the Treasury, if the Department has it, and the Treasury should put a stop to any expansion until it gets the business case. I underscore what the hon. Lady says: our constituents will be on the rough end of this if it all goes wrong.

[Jim Shannon (Strangford) (DUP)]

To use your terminology, Mr Speaker, a pithy question: does the right hon. Gentleman feel that the process so far is IT-focused, not person-focused, and that that is the problem?

[Frank Field]

I would love to say that it was IT-focused, but it is neither that nor person-focused.

Jobcentre Closures

Jim Shannon Excerpts

Monday 5th February 2018 Commons Chamber

[Stewart Malcolm McDonald]

My hon. Friend is absolutely correct. As hon. Members can imagine, this was a big election issue in the city of Glasgow in June last year. During the campaign in my constituency, I told people that I was campaigning to save the jobcentre, and I met folk who used the jobcentre and it was the first time they found out about its potential closure; there can be no excuse for that, because there was no reason the Government could not have let those people know—they had every detail necessary.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this issue before the House. A positive campaign to retain the Ballynahinch social security office in my constituency was successful due to extensive lobbying, cross-party and cross-community support and the realisation that rural communities need a local office to make attendance possible and to encourage people to seek work. May I encourage him to continue to campaign, as there are clearly occasions when right wins and wrong decisions are defeated?

[Stewart Malcolm McDonald]

It would not be an Adjournment debate without an intervention from the hon. Gentleman, so this one now almost feels complete. I commend him for the work he has done to save a jobcentre in his constituency—of course I understand that the powers over that are devolved to the Northern Ireland Assembly. I welcome his words of encouragement for myself and other colleagues to continue our campaign, but gently point out to him that he has more sway over Ministers here than we do, so any effort he can swing in behind us on this issue will be most welcome.

I wish to discuss another hugely important issue in this whole topic: equality impact assessments. Undoubtedly, Ministers will have carried out such assessments, as they have come to the Chamber and said repeatedly that they abide by all the requirements that they must follow under the Equality Act 2010, and they could come to that conclusion only having carried out an equality impact assessment, so where are they? Why have we never seen them? Why have the trade unions and Members of Parliament never seen them? They are not anywhere in the public domain. When the Minister responds, will he tell us why they have not been published and whether they will be published? If he does not intend to publish them for wider public viewing, will he at least endeavour to share that information with MPs?

--- Later in debate ---

[Jim Shannon]

The hon. Lady is making a valid and salient point. When we fought the case for the Ballynahinch social security office, one factor we used was that people in Ballynahinch would have to travel out of the area, so people on benefits who already had minimal money coming into the house would have to find anything from £5 to £10 just to go and sign on. That is wrong.

[Alison Thewliss]

Absolutely. We are fighting the fight in Glasgow about bus fare rises in the city as well, which is making it more challenging for people to get about.

While spending time outside the front of the Bridgeton jobcentre, I spoke to a woman who was on her way in. She was in bits. She was crying and upset. She had come from her house, which was just along the street, and she was in fear of what she would find when she went into the jobcentre, because they were hassling her and sending her letters. She had already been through a lot. She had lost her daughter. She is a WASPI woman, so she should not even have had to look for work in the first place, but this Government are sending this poor woman who had worked her whole life out to work. She was in bits, so we comforted her as best we could. She went through that experience and was understandably even more upset by the time she left. It would have been very hard for her not only to leave the house and go to the jobcentre that was just around the corner, but to get herself up, get on the bus and find her way all the way up to Shettleston and then make the journey back again. That is a challenging journey.

It is also a challenging journey for people who have caring responsibilities, for people who have kids to drop off at nursery and pick up from nursery, or drop off at school and pick up from school, and for people who are tending to elderly relatives who are poorly, which is a very common occurrence for my constituents. The burden of that falls upon women, which has not been picked up in the Government’s lack of an equality impact assessment.

All those things mount up on the pressures of life that my constituents are feeling every single day. This Government are not trying to get them into work. This Government are making it harder for them to even get out of the house in the morning. They are making it really challenging for people to cope. I am fearful that people will just fall out of the system; they will think it is too hard, fall back on their friends and fall into debt, drink, drugs, gambling and all the other social ills that we need to see removed from our people in Glasgow, so that they can progress in their lives. This Government are making it harder for them to cope.

The impact on jobcentre staff has not been mentioned. One of the first things I heard as a candidate in Glasgow was a story from a trade union rep about a jobcentre employee who had been attacked by someone with a clawhammer. That is awful. No one should face that at work, and I condemn the situation that led someone to do that, but that is the situation, and those staff need to be protected. When I walked into that jobcentre, the first person who came to see me was the security guard and the second person was the manager, saying “What are you doing here?” There is a security guard on that door for a very good reason, which sadly is to protect the staff.

The Government are talking about outreach, flexible working and going out into communities, but they have not said what the impact will be on staff, how staff will be protected out and about in the community and how individual constituents who are also in very distressing situations will be protected, with their dignity intact, if they are told they are being sanctioned in the corner of the local community centre. How do we ensure that staff and our constituents are protected in those situations?

Marriage in Government Policy

Jim Shannon Excerpts

Tuesday 30th January 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for St Ives (Derek Thomas) on securing the debate. I was happy to go to the Backbench Business Committee and support him in his request, and I am happy to see the culmination of that request. I am well known as a supporter of marriage, especially in Government policy. I have been happily married for 30-plus years—believe it or not, 30-odd years ago I had thick, curly black hair. Then, I needed a brush; now I just need a chamois.

The fact of the matter is that I have supported married life over a long period, I am totally committed to it and I want to see Government policy on it. Since I came to the House in 2010, I and the hon. Member for Congleton (Fiona Bruce), who is in her place—she will not mind me saying this, because it is true—have shared in many issues of common concern, and this is one of them. In the past, she has worked consciously in the Conservative party, as I have done in the Democratic Unionist party, to try to formulate Government policy. By working together across parties—not just in the confidence and supply agreement that we have now, but long before that—we have had some success with the marriage allowance. We were instrumental in making that Government policy. I want to put that on the record early on.

I and my party worked extremely hard to bring in marriage tax allowance transfers as a recognition of the stabilising effect that marriage provides to our community. The public policy benefits of marriage are significant. The hon. Member for St Ives outlined some of them, and I will add these facts and figures: three quarters of breakdowns of families with children under five come from the separation of non-married parents; children are 60% more likely to have contact with separated fathers if the parents were married; the prevalence of mental health issues among children of cohabiting parents is more than 75% greater than among children of married parents; and children from broken homes are nine times more likely to become young offenders—they account for 70% of all young offenders.

Those are some key figures. However, I want to be clear: in no way whatsoever am I am attempting to say that the only unit that works is the married family unit. I see this in my office every week, and just now my staff will be dealing with many people who are single parents. I see hundreds of wonderful women who singlehandedly run their homes, and their children are well adjusted and thriving. I increasingly see single men taking on the two-parent role and doing a great job. As the hon. Member for South West Bedfordshire (Andrew Selous) said, society is changing, and we have got to look at that. The intervention from the hon. Member for Ochil and South Perthshire (Luke Graham) reaffirmed that. We must adjust our focus and way of thinking to how things are today.

I understand as much as the next person that marriage is hard and relationships are hard. Sometimes, no matter how much one person may try, it simply will not work. In our relationship, my wife has been understanding. The hon. Member for St Ives referred to time away, and most of my life has been away from home. My wife reared the children and now has the role of rearing the grandchildren as well. Simply, people have to try hard, otherwise it will not work.

I have also seen too many women widowed in the troubles. I relate very much to that, back home in Northern Ireland, where women have to be both mother and father to their child in the midst of tremendous grief and ensure that their child has not simply a house to live in, but a home to grow in. The role of those tasked with the responsibility of looking after children is so important. I make no judgment on anyone’s ability to provide a great home for their child being intrinsically linked with marriage, but statistics show why I believe that marriage is key and why it should be key in any Government policy. I wish the Minister well in his new role.

One massive issue to recognise is that the commitment of marriage is a driver for stability, quite apart from wealth. Crucially, even the poorest 20% of married couples are more stable than all but the richest 20% of cohabiting couples. In that context, it is entirely appropriate that our tax system now recognises marriage. That is something we pushed for and the Government recognised in the previous Parliament. It is good to have that.

[Alison Thewliss]

The hon. Gentleman is making a good point about income and marriage. The Government seem to recognise that in the tax system, but not in the immigration system. I have a constituent who had tried to bring his wife here since 2007. Gladly, she has now arrived, but he was short by £7 over the whole year in his salary and the Government refused to operate any discretion to allow her to come from Iran.

[Jim Shannon]

I agree; I have faced many similar cases in my constituency office. I look to the Immigration Minister and her Department to be fair and allow for some flexibility in the process. To be just a few pounds short is frustrating. We have a system to work within, but we make our cases on behalf of our constituents and their wives and spouses in other parts of Europe, the United States, Africa and even further afield in the far east. The difficulties are around financial contributions, so we need a flexible Government and flexible policy. That is not this Minister’s responsibility, but it is another’s.

As I have said before, the case for change is compounded by the fact that the Government spend more money on supporting marriage through the much more generous married couples allowance than they do through the new marriage allowance. The married couples allowance applies to married couples in which one or both spouses were born before 6 April 1935, while the new marriage allowance applies to one-earner married couples on basic income tax. While £245 million was spent on the married couples allowance, just £210 million was spent on the marriage allowance during 2015-16. The former can reduce a tax bill by between £326 and £844.50 a year, but the latter does so by only up to £230 a year. That is a help, but it does not fulfil the aim. It is important to have those facts and figures on the record in Hansard so that we can see where the differences are and where we need change. I hope that others agree.

It is absolutely right that we recognise the public policy benefits of marriage for adult wellbeing at all ages. However, given the special benefits in relation to child development, it seems strange that we should afford the marriages of couples in their 80s and 90s, whose children left home long ago, greater recognition than those in which the public policy benefits could reach both adults and children.

We need a system that addresses families and children rather than those who are long past that stage. In that context, the Government should introduce a fully transferable allowance and pay for it by reducing its scope to married couples with young children. That would do away with the problem of low take-up by ensuring that the allowance is really meaningful for those who are eligible. At the very least, the marriage allowance for those with pre-school children should be increased so that no marriage of a couple in their 80s or 90s is recognised more—and not, indeed, by £844.50—than that of a couple with young children. Rather than just spending the same sum on a reduced pool of married couples, we need some change in the system.

I briefly referred in the Chamber, during the Budget debate, to the ComRes polling from last November; this is for those who follow ComRes and perhaps fill in their forms whenever they come. The poll demonstrated that increasing the marriage allowance is much more popular, with 58% support, than bringing in yet further increases in the personal allowance, which got 21% support. If we are looking for something that is more acceptable to the general public—we need to be conscious and cognisant of that—here is a simple system.

The cost of the further projected increases in the personal allowance to £12,500 is £4 billion, the majority of which will go, as the Institute for Fiscal Studies has demonstrated, to those in the top half of the income distribution. By contrast, any increase in the marriage allowance would disproportionately benefit those in the bottom half of the income distribution.

If we take away housing benefit from couples who get married, and reduce working tax credit for families who marry and move in together, we make it less appealing for people to make that final commitment. We have outlined the social benefits of marriage, and the Government should feed something into that and make it more attractive for people who love each other and are in a committed relationship to marry. That is what my heart as well as my voice says, and what would benefit families and communities throughout the United Kingdom of Great Britain and Northern Ireland. I ask the Minister seriously to consider the issue of the marriage allowance and how to achieve what we set out to do in putting that in place. Many in the House, including many of those present for the debate, think the same.

Personal Independence Payment

Jim Shannon Excerpts

Tuesday 23rd January 2018 Commons Chamber

[Ms McVey]

My hon. Friend puts his point so eloquently that I do not think that I can add much to it, but I reiterate that this is about opportunity and allowing everyone to lead an independent life.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Glenrothes (Peter Grant) for securing this urgent question, but I also thank the Secretary of State for her response and promise of action. In my office, transfers from DLA to PIP occupy a large proportion of my staff’s time. For people with severe anxiety, depression and emotional and mental health issues, some of whom are suicidal, the system has pushed them to the very edge, even when there has been copious evidence and information from consultants, GPs and family members. I ask that the staff who process applications do so with more knowledge, more understanding and certainly more compassion.

[Ms McVey]

I said that the Minister for Disabled People holds meetings for MPs, but she does the same for caseworkers, so MPs’ staff can attend those sessions, meet the Minister and ask relevant questions.