Disabled People
Debate between Mark Hoban and Fiona O'Donnell(10 years, 10 months ago)
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Mr Hoban
What we need to do is make sure that we get more people into work, regardless of their disability, and we must help them into employment. We are particularly supporting those who were Remploy employees to get into work, as well as broader groups. That is our focus; that is exactly what the Government are trying to do. That is why we accepted the recommendation from disability expert Liz Sayce that we should focus support on individuals through services such as Access to Work, rather than through institutions such as Remploy, so that more disabled people can work in mainstream employment.
Next week we will see the first ever disability employment conference, a flagship event funded by Government and business. This will involve more than 600 people in London and five regional locations via video link, with many more watching online. The conference is a unique opportunity for businesses and Government to come together to identify the challenges that others are facing and provide innovative solutions to tap into this underemployed pool of talent and reap the benefits that this can bring. But next week’s conference is just the beginning. Over the next two years we will continue to work with business to bring about a new disability-confident perspective on employment and improve the employment outcomes for disabled people.
I have no doubt that people want to work, but some are held back by a complex and unwieldy benefit system with weak or even non-existent incentives to work. Our plans for welfare reform will transform the benefits landscape. We have designed a new system with work as its focus—a coherent approach which ensures that people will be better off in work than on benefits. I firmly believe that the vast majority of people want to work and gain greater independence, but we also know that many disabled people who want to work fear the risk of losing their benefits and feel that that is too great a risk of getting into work. By simplifying the benefits system and making sure that work pays, universal credit will remove the financial risks of taking the first steps back into employment, and increase the incentives for working, even for a few hours a week.
Let me deal with some of the points that the right hon. Gentleman made. Universal credit will provide unconditional support to those disabled people who are not expected to do any work. There will be no cash losers in the roll-out of universal credit. People will see their level of benefit protected when they switch over if their circumstances remain the same. Indeed, the average change in income for disabled people under universal credit is an increase of £8 a month.
Universal credit will provide support for carers and improve their opportunities to maintain links with the world of work. Many families will benefit from help with child care costs, especially people who work under 16 hours a week, who will get help for the first time. Households with one or more disabled adults will be able to keep up to £647 a month of their earnings before seeing a reduction in their universal credit. It will also offer a more flexible system for people whose ability to work fluctuates. Universal credit will encourage more disabled people to see work as financially viable, increasing their dignity and self-esteem.
Fiona O'Donnell (East Lothian) (Lab)
What about new claimants? How does the Minister respond to evidence provided by Citizens Advice, which shows that 230,000 severely disabled people who live alone with a young carer could be worse off, 100,000 disabled children could lose up to £28 a week, and up to 116,000 disabled people who work would be at risk of losing around £40 a week?
Oral Answers to Questions
Debate between Mark Hoban and Fiona O'Donnell(10 years, 12 months ago)
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Fiona O’Donnell (East Lothian) (Lab)
A constituent of mine who lives in Haddington was recently asked to attend a tribunal for her disability living allowance in Glasgow, which, because she had to use public transport, would have meant a round trip of six hours. That is not only unacceptable for her but places a strain on welfare rights in my constituency. Does the Minister think that that is acceptable?
Oral Answers to Questions
Debate between Mark Hoban and Fiona O'Donnell(11 years, 6 months ago)
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The Minister of State, Department for Work and Pensions (Mr Mark Hoban)
My hon. Friend makes an important point. That is exactly why we have been working with Professor Harrington to implement the findings set out in his report. One of his findings relates to cancer sufferers, which is why we published new guidance last month on how they should be treated under the work capability assessment.
Fiona O'Donnell (East Lothian) (Lab)
T6. Many of my constituents who devote a great deal of effort to providing Atos with detailed medical supporting evidence will be deeply disappointed with the Minister’s earlier answer. What steps is he taking to ensure that Atos takes full account of medical evidence when determining work capability assessments—
Fiona O'Donnell
I appreciate that the Minister is eager to answer and look forward to hearing from him. I ask that because at the moment Atos is simply ignoring that evidence.
Mr Hoban
What the work capability assessment does is assess people’s ability to work. It is a review of their capability and functionality, not a diagnostic assessment. That is why the assessment takes place. Of course, it is right that claimants bring along medical evidence, but it must be read in conjunction with the Atos assessment. Decisions about eligibility for employment and support allowance are made by DWP staff, not Atos.
Savings Accounts and Health in Pregnancy Grant Bill
Debate between Mark Hoban and Fiona O'Donnell(13 years, 5 months ago)
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Mr Hoban
I beg to move, That the Bill be now read the Third time.
As we have discussed today, the Bill deals with three policies: child trust funds, the saving gateway and the health in pregnancy grant. Both today and in Committee two weeks ago, we have debated the details of those policies. Opposition Members have pointed to their merits or, rather, their potential merits—as we have found, quite often the hard evidence to support their arguments is rather lacking. They have argued that we should either retain the policies or delay removing them, and sometimes both at the same time.
I shall come to some specific points about those policies in a moment, but I want to be clear on one point. The question for this Bill is not simply whether we think that child trust funds are a nice idea or whether we would like to give pregnant women some more money. The question for this Bill is a harder one to confront. It is whether we can afford such policies—at a cost of £3 billion over the spending review period—given the scale of the deficit that we inherited, and whether continuing with them would be the best use of taxpayers’ money.
As we decide to give the Bill its Third Reading, it is important to remind hon. Members of the context. When the Governor of the Bank of England says that our fiscal position is “clearly unsustainable”, when our borrowing last year was the highest in our peacetime history and when we are spending £120 million a day just to pay the interest on our debt, something has to give. If we do nothing and fail to tackle the deficit, we will see higher interest rates, business failures, rising unemployment and, potentially, even the end of the recovery. We therefore need a clear, credible plan to tackle the deficit. We have set one out, including more than £80 billion of spending reductions. However, to deliver it we have to make choices about where savings are going to come from.
We have made those choices, and this Bill implements three of them. They were not easy choices. As I said on Second Reading, the Conservative party supported the introduction of child trust funds and the saving gateway in opposition. Indeed, on at least three occasions so far, the right hon. Member for Delyn (Mr Hanson) has quoted what I said about the saving gateway, and I suspect that he may well remind the House again in his speech on Third Reading. We did not warn against the health in pregnancy grant, although we did raise some concerns about it. My Liberal Democrat colleagues were rather more sceptical. They opposed the child trust fund and prayed against the regulations that introduced the health in pregnancy grant. However, as I have said, the question is not whether it would be nice to keep those policies—in an ideal world it would be—but whether we can afford to keep them, given the fiscal challenge that I have outlined, and where else we would have to find savings if we did so.
I believe that the Bill makes the right savings. Continuing with the child trust fund, for example, would have cost us more than £500 million each year. That money would have been locked up for up to 18 years—a luxury we cannot afford.
Given our limited resources, we must spend money on our priorities: reducing the deficit, so that our children are not left to pay our debts; supporting the most vulnerable and poorest people in our society now—for example, through the pupil premium; and the extension of early years education and care to all disadvantaged two-year-olds. Those policies will provide real opportunities for disadvantaged children to move out of poverty for the long term.
While saving money from the child trust fund, we are still committed to encouraging people to save for their children in an affordable way. That is why I announced a new account—a junior ISA—on Second Reading. It will provide parents with a simple and clear way of saving for their children, albeit without Government contributions, and build on products that are already accessed by 20 million people of all ages and on all incomes. I also want to encourage people on lower incomes to save, but again that must be affordable. Unfortunately, it would not have been affordable to introduce a new scheme such as the saving gateway, which would have cost up to £150 million a year just when we are starting to tackle the deficit that we inherited in the summer this year.
I was worried that there would not have been enough providers to ensure that everyone had an accessible option for opening a saving gateway account. During the Bill’s evidence sessions, we heard from the British Bankers Association and the Building Societies Association that their members were far from enthusiastic about providing such accounts. The Post Office was going to offer the account only if taxpayers had funded it to do so. We cannot afford to introduce that account, and there were significant doubts not only about access and who would offer it, but about its effectiveness in increasing saving.
It is right to abolish the health in pregnancy grant. I remind hon. Members that it is a one-off cash payment of £190 to every pregnant woman around the 25th week of their pregnancy. In Committee, we debated at length the different ways in which women might spend that money, and how the scheme could be improved, such as by paying it earlier, in instalments or to only some women. The basic point is clear. The grant is unfocused, it can be spent on anything, and it is untargeted. We believe that there are better ways to support maternal health.
Fiona O'Donnell (East Lothian) (Lab)
Following that logic, does the Minister believe that because there is no guarantee about where housing benefit, child support and child benefit will be spent, they should be scrapped?
Mr Hoban
The hon. Lady has not participated in the debate today, but we have thought carefully about how to provide support during pregnancy to those on low incomes. There are vouchers under the Healthy Start scheme, and the Sure Start maternity grant, which we believe are more effective in providing targeted, better timed and more focused support to expectant mothers.
There is a choice. We could spend £120 million on the health in pregnancy scheme or we could scrap it and save the money so that we do not have to increase taxes or borrow so much. The latter is the right action to tackle the deficit. There are better ways to support maternal health, such as the Healthy Start scheme, which provides vouchers to enable pregnant women to buy fresh fruit and vegetables. The Department of Health is consulting on whether to extend that to plain frozen fruit and vegetables. Vouchers are also available for vitamin supplements, including folic acid, to provide a daily dose of vitamins B and C.
The Healthy Start scheme is effectively targeted at pregnant women and children living in low-income households, and is focused on supporting health and well-being, because it pays support in the form of vouchers rather than in cash. It is delivered at the earliest stage of pregnancy when dietary intervention is much more effective. That means that we can focus our resources better, but at the same time make some real savings—about £150 million a year. That is a vital contribution to tackling the deficit and ensuring that people are not burdened with the debt that we inherited from the previous Government.
That is the key point of the Bill. The changes that we are making to child trust funds, the decision not to introduce the saving gateway and the abolition of the health in pregnancy grant will save more than £3 billion over the spending review period. That is an important part of our plan to reduce the deficit and put our finances back on a stable footing.
As I said, this has involved some tough choices, but I believe that we have made the right ones. We found areas of spending, such as the child trust fund, which does not support people for up to 18 years, the saving gateway, which has not yet been introduced, so its removal will be less directly felt, and the health in pregnancy grant, which is untargeted and unfocused. We have confronted the questions, which I outlined earlier, of whether we could really afford to continue with those policies and whether they would represent the best use of taxpayers’ limited resources. The questions for anyone who wants to oppose this Bill and to continue with the policies are how they would find the money and what they would do instead. This is an important Bill. It is part of our work to tackle the unprecedented deficits that we inherited, and it will help us to put our public finances back in order. I commend it to the House.