Employment, Social Policy, Health and Consumer Affairs Council

Priti Patel Excerpts
Thursday 3rd March 2016

(8 years, 2 months ago)

Written Statements
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Priti Patel Portrait The Minister for Employment (Priti Patel)
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The Employment, Social Policy, Health and Consumer Affairs Council will take place on 7 March 2016 in Brussels.

The Council will be invited to seek a general approach on the proposal for a Council decision on guidelines for employment policies in member states.

The Council will be invited to adopt draft Council conclusions in response to the Commission’s strategic engagement for gender equality, the Commission’s list of actions to advance LGBTI equality, and the 2016 annual growth survey. The Council will also be invited to adopt the draft joint employment report.

There will be policy debates on the European semester, for a contribution to the March European Council, and on the progress towards a new skills agenda for Europe.

Regarding the implementation of the country-specific recommendations, there will be a contribution from the Employment Committee (EMCO) on labour market segmentation and contractual arrangements.

The Council will be asked to endorse the key messages from EMCO on the way forward regarding the implementation of the youth guarantee.

The European Commission will make presentations on the 2016 country reports and the labour mobility package. The presidency and European Commission will make a joint presentation on social dialogue and the tripartite social summit.

Under any other business, the presidency will present information on legislative issues currently on their agenda. The Commission will present information on the European pillar of social rights, the state of play regarding the European social fund and youth employment initiative implementation, the employment and social dimension of the Energy Union, and the Istanbul convention on violence against women. Information on the 2016 work programmes of EMCO and Social Protection Committee will be presented by the committees’ respective Chairs.

[HCWS571]

Welfare Reform and Work Bill

Priti Patel Excerpts
Wednesday 2nd March 2016

(8 years, 2 months ago)

Commons Chamber
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Priti Patel Portrait The Minister for Employment (Priti Patel)
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I beg to move, That this House agrees with Lords amendments 1B, 1C and 1D.

Lindsay Hoyle Portrait Mr Deputy Speaker
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With this it will be convenient to take the Government motion to disagree with Lords amendments 8B and 8C and the Government motion to disagree with Lords amendments 9B and 9C.

Priti Patel Portrait Priti Patel
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Lords amendments 1B, 1C and 1D place a duty on the Secretary of State to publish data annually on four low-income statistics. Let me start by being very clear about what the Government are not doing in these amendments: we are not returning to the broken state of affairs in the Child Poverty Act 2010; we are not returning to a policy approach driven by flawed income measures; and we are not compromising on the new life chances measures and the approach that we have set out in the Bill. Income measures do not drive the right action. They focus the Government’s finite resources on the symptoms of child poverty, not the root causes.

Let me be clear on what these amendments are about. They provide a further guarantee that information on low income will be made available for all to see, every year. We have repeatedly given commitments on that throughout the passage of the Bill, in both Houses. The “Households below average income” publication, which provides a range of low-income data, already has statutory protection as a national statistics product. We are now reinforcing that with a new statutory duty to publish those data annually. Three of the four income statistics—relative low income, combined low income and material deprivation, and absolute low income—are already routinely published in the HBAI publication.

Our commitment goes beyond the data that are already published. It will also place a statutory duty on the Secretary of State to publish new data annually on children living in persistent low-income households. The information will be based on a new data source, and the first figures will be published before the end of the 2016-17 financial year. We believe that those data are a useful addition, because they tell us about families who are stuck on low incomes.

However, although we have given full statutory guarantees that those low-income data will be published annually, we will not commit to the Government’s laying a report on them to Parliament. Reporting to Parliament on those statistics would incentivise Governments to take the wrong action and would simply continue to drive actions, such as direct income transfers, that fail to tackle the root causes of child poverty. The duty to publish low-income data is fundamentally different from reporting on or setting targets for them, and Opposition Members should not confuse the two.

We need to move away from the flawed “poverty plus a pound” approach that income measures incentivise. Resources are finite, and it is crucial that the Government prioritise the actions that will make the biggest difference to children. The evidence is clear that tackling worklessness and low educational attainment will make the biggest difference to children’s life chances. That is why the Government will report to Parliament on their life chances measures of worklessness and educational attainment every year.

We are also committed to publishing a number of non-statutory measures annually, including family stability, drug and alcohol dependence and problem debt, but we firmly believe that any move to report on those low-income measures would divide Government’s efforts and undermine the new life chances approach, which will bring about the transformative change that we all want to see. I urge hon. Members to support the motion to agree with amendments 1B, 1C and 1D.

Helen Whately Portrait Helen Whately (Faversham and Mid Kent) (Con)
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Does my right hon. Friend agree that it is really unhelpful, when we look at poverty, to focus on relative income measures? If there is a recession and incomes fall, poverty will appear to have got better when it has actually got worse. We need to look differently at poverty and focus on its underlying causes rather than on relative income measures.

Priti Patel Portrait Priti Patel
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My hon. Friend highlights the fundamental purpose of the changes that we are making. We are focusing on the root causes: life chances, and key aspects such as worklessness and educational attainment.

Lord Field of Birkenhead Portrait Frank Field (Birkenhead) (Lab)
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I have two very quick points to make. First, no Government over the next 10 years will have the resources that previous Governments had to drive their counter-poverty programme by increasing cash transfers. We might wish that it were different, but we need to grow up. Secondly, may I push the Minister further on whether the Government are open to looking at birth readiness, toddlerhood and school readiness as additional key indicators if we are, within existing resources, to make a real difference to the life chances of the poorest children?

Priti Patel Portrait Priti Patel
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The right hon. Gentleman makes my point for me and, importantly, highlights the significance of the Government’s work on life chances. That will cover the whole range of ages, because it is of fundamental importance that the Government provide the right measures to support people throughout their lives.

I turn to the employment and support allowance work-related activity component, and the universal credit limited capability for work element measures. I remind the House why the changes are being made. As we stated when we last debated the measures, the change is urgently needed to ensure that the right incentives—and, importantly, support—are available to help more people with disabilities and health conditions to move closer to, and into, employment. We have experienced record employment levels and strong jobs growth over the past few years, but the benefits have bypassed the majority of those who are stuck on ESA. Only one in 100 ESA claimants in the WRAG moves off benefits each month, compared with one in five jobseeker’s allowance claimants. That cannot be right, and the Government believe that people with health conditions and disabilities deserve better.

Helen Goodman Portrait Helen Goodman (Bishop Auckland) (Lab)
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My understanding from our debate on the matter last week is that the Government intend to put an extra £100 million into supporting that group. However, will the Minister confirm that the savings she plans to make from the measure are much greater—some £600 million?

Priti Patel Portrait Priti Patel
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The hon. Lady will know from the Bill and the impact assessments the fiscal savings that will result from the measure. Fundamentally, we are making the change so that we can provide long-term support. For that reason, I think that all hon. Members will look forward to it.

We are committed to tackling the problem that too few people are moving off benefits and being supported into employment. There are economic, social and moral arguments for ensuring that those who are able to work can work, and that they are supported into work. Work is the most effective way to improve the wellbeing of individuals, their families and their communities.

Neil Coyle Portrait Neil Coyle (Bermondsey and Old Southwark) (Lab)
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The Government’s equalities watchdog has said that there is

“very little in the way of evidence”

to show that what the Government are trying to do will support disabled people back into work. In the last five years, the number of working-age disabled people has fallen, and the Government speak from a track record of failure. Are disabled people not right to be sceptical about what is about to happen? What direct evidence can the Minister offer about the support that will be delivered to disabled people?

Priti Patel Portrait Priti Patel
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As the hon. Gentleman will be aware from his participation in the Public Bill Committee and during the Bill’s passage through the House, the Government are committed to bringing in reforms. As I will shortly come on to say, the reforms will be set out in a White Paper later this year. Importantly—we are optimistic; we really are—the White Paper will outline our plans to reform further the help to support people with health conditions and disabilities into work.

--- Later in debate ---
Priti Patel Portrait Priti Patel
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I will give way one more time.

Neil Coyle Portrait Neil Coyle
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In the past five years—in fact, in the past six years, during which the coalition and this Government have been in office—the number of disabled people of working age in work has fallen, the Government have closed Remploy factories, the number of disability employment advisers in Jobcentre Plus has fallen by 20% and the number of people supported by the Access to Work programme has fallen.

Priti Patel Portrait Priti Patel
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I will repeat my starting premise: we are more positive and optimistic for people with health conditions and disabilities. Support through the Access to Work programme has increased. We have great initiatives, such as the Disability Confident campaign, which is supporting people back into work. The hon. Gentleman may want to join us, perhaps by hosting a Disability Confident event in his constituency. I would very much welcome such support. I think that we should be optimists. This Government are committed to halving the employment disability gap, which all Members of the House should welcome.

David Burrowes Portrait Mr David Burrowes (Enfield, Southgate) (Con)
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I very much welcome the Minister’s ambition, which I share, to halve the employment disability gap, and the pathway that will be a crucial part of the White Paper. Will she provide reassurance that the good intentions in relation to the Lords amendments—identifying those affected in the work-related activity group, the impact on them and their wellbeing, and having better information, as well as tailored support—will very much be part of the imminent White Paper? Can we have some reassurance about that process before the changes start to have an impact?

Priti Patel Portrait Priti Patel
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I thank my hon. Friend for his comments. He will know this, but let me tell the House that I have met a number of colleagues who, quite rightly, want to know more about the White Paper. In relation to the changes that will be made, they have expressed concerns about the content and direction of the White Paper. I want to make it clear that this is an ongoing dialogue. I will continue to engage with all colleagues in the House, as well as stakeholders and charities, which have a valuable contribution to make and are interested in this area. In particular, my hon. Friend and my hon. Friends the Members for Stevenage (Stephen McPartland), for Colne Valley (Jason McCartney) and for Stafford (Jeremy Lefroy) have raised with me their desire for the reforms to produce the right outcome. I and the Government share that desire. Importantly, we will work together to make sure that we get the right outcomes.

Priti Patel Portrait Priti Patel
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I will not give way. We are pressed for time, so I want to make some progress.

As the Secretary of State said last summer, the purpose of the reforms is to ensure that we give people with disabilities and health conditions all the appropriate and necessary support that they need to move them closer to the labour market and to support them into work. We are basing all that we do around what works for them. Importantly, as applies to the other amendments, we are focused particularly on life chances.

I will, if I may, move on to the debate in the other place. I can report that, since we last met, the other place has chosen not to insist on its amendments 8 and 9, which removed the changes to the ESA WRAG and the UC LCW element. However, it has agreed what is in effect a wrecking amendment, because it could in practice prevent the provisions from coming into force, despite the fact that my noble Friend and colleague Lord Freud committed to several additional measures to help those affected by the change, which addressed a number of the specific requests raised in the Lords.

Let me set out the extra measures we have committed to in the other place. First, the additional measures include an additional £15 million in 2017-18, when the changes to the ESA WRAG and the UC LCW element come into force, to increase the local Jobcentre flexible support fund. The money, which will be set aside specifically for those with limited capability for work, represents a 22% increase in the overall fund.

Secondly, in response to the concerns that were raised about claimants with progressive conditions, we have committed to improving the awareness of the reassessment process and the guidance for claimants and disability charities about reassessments. We will provide additional support and training to jobcentre staff to ensure that they are aware that they may need to talk about requests for reassessments with claimants with deteriorating conditions.

Finally, we will improve the work incentives for those who continue to receive ESA even further by removing the 52-week limit that applies to permitted work for those in the ESA WRAG. That will allow claimants to gain skills and experience and to build their confidence, while still receiving the benefit over a longer period. We will support these individuals to get back into work.

As I said earlier, despite those additional measures, the other place proceeded with amendments that ignore the clear voice of this democratically elected House, which has supported the changes to the ESA WRAG and the UC LCW element, and the fact that we have voted on this measure five times. Although, on the face of it, the amendments may appear to be reasonable, let me set out how they are, in effect, potentially wrecking amendments.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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Will the Minister give way?

Priti Patel Portrait Priti Patel
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I will proceed, because we have very little time. The right hon. Gentleman will get the chance to speak once all the introductory speeches have been made.

First, the amendments would require the Secretary of State to publish a report on the impact of the changes prior to the changes being made, and not to introduce the reform until the report had been published. Specifically, the report would be about the impacts on a person’s health, finances and ability to return to work. In line with normal practice, we of course intend to evaluate this change.

My noble Friend Lord Freud has confirmed in the other place that we will monitor the impact through regular national statistics. However, it will be impossible to provide the majority of the information requested in the amendments through our analysis prior to implementation, because the data that are currently available do not allow us to make any meaningful estimate. That means that the amendments would delay the implementation of the measure by four years and cost more than £1 billion of the savings for which this democratically elected House has voted.

The amendments would not only impact on the savings associated with this change, but would hinder the Government in their commitment to do the right thing by providing the right incentives and supporting people with health conditions and disabilities to allow them to improve their life chances, fulfil their potential and get the vital support that they need to enable them to get back to work.

Secondly, the amendments are unacceptable because they seek to require that the commencement regulations be made under the affirmative resolution procedure. At best, that is a delaying tactic that runs contrary to usual parliamentary process. In practice, it would allow the Lords to block the legislation by the back door. I am sure that I am not alone in thinking that the Lords has overstepped the mark on this.

This House voted convincingly for the changes on 23 February. That was the fifth time this House had voted overwhelmingly for this reform—a reform that is financially privileged and that is a key part of our efforts to reform the welfare system by supporting more people into work.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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I apologise at the outset for the fact that I will not take interventions, but a lot of people want to make speeches and not everybody got in last week. Also, I am not sure that my voice will hold for very long.

I will speak to Lords amendments 1B, 1C and 1D on child poverty reporting and to Lords amendments 8B, 8C, 9B and 9C on the proposed cuts to the employment and support allowance work-related activity component and its equivalent in universal credit.

On Lords amendments 1B, 1C and 1D, I was going to welcome the Minister’s agreeing to publish the percentage of children living in poverty in the way originally described in the Child Poverty Act 2010, based on household income and material deprivation. However, I found the tone that she took in introducing the debate very regrettable. I also regret that the Government have not conceded to the request to submit an annual report to Parliament on the progress on these measures.

As I argued last week, we cannot deny the fact that in relation to child poverty, income matters. As experts in child poverty and child health have stressed in recent weeks and months, it is entirely regrettable that the Government are trying to conflate the consequences of child poverty, for example debt and family breakdown, with the cause—a lack of material resources. I have to disagree with my right hon. Friend the Member for Birkenhead (Frank Field): there is no evidence to support the Government’s proposed interventions. They are likely to have no effect on child poverty and they may even make things worse. Contrary to that, support such as income supplements has been shown to be highly effective.

The Government’s predilection for focusing on worklessness, when two thirds of children living in poverty are from working families, reveals exactly where they are coming from. It is about hammering the poor, whether they are in work or not. As I predicted last week, and as yesterday’s Institute for Fiscal Studies report shows, the net effect of tax and social security changes will increase the proportion of children in relative poverty by eight percentage points, and those in absolute poverty by three percentage points by 2020. That means that one in four—2.6 million—of our children will live in poverty. The implications for those children and their families, but also for the country, are stark.

Growing up in poverty limits children’s potential and development across a range of areas. Brain scans show how children’s brains develop differently when children are subjected to poverty. Poverty leads to poor health and life chances in adulthood, and that has knock-on effects for future generations. We already have the highest mortality of children under five in western Europe, and children from poor families are five times more likely to die than children from rich families. We all need to reflect on that; it should be a concern for us all.

Let me deal with amendments 8B, 8C, 9B and 9C. On Monday, the House of Lords voted overwhelmingly for Lord Low’s amendment calling for an assessment of the effects of the proposed measures to reduce social security support for people with disability, impairment or a serious health condition who had been found not fit for work and placed in the ESA WRAG group. In particular, the amendment called for an assessment of the impact on disabled people’s physical and mental health, their financial position—we know that disabled people are twice as likely to live in poverty as non-disabled people, and 80% of that is due to their disability—and their ability to return to work.

To refresh people’s memory, the Government propose to cut financial support from £102.15 to £73.10—nearly £30 a week or £1,500 a year—for new ESA WRAG claimants from 2017. However, that will also apply to existing WRAG claimants. In April, nearly half a million people who are currently on ESA WRAG will start to migrate to universal credit, and the Government intend to remove the limited capability for work component of the work element of universal credit. That means that everyone currently on ESA WRAG will ultimately be transferred to UC and have their support reduced by that £29.05 a week or £1,500 a year.

Disabilities, Poverty and Inequalities

Priti Patel Excerpts
Wednesday 24th February 2016

(8 years, 2 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Priti Patel Portrait The Minister for Employment (Priti Patel)
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It is a pleasure to serve under your chairmanship this afternoon, Sir Roger. I start by thanking the hon. Member for Glasgow East (Natalie McGarry) and congratulating her not only on securing this debate, but on her incredibly thoughtful and instructive contribution. She highlighted a number of issues, and I think it is probably fair to say that we completely agree on 95% of those, such as her assessment of the barriers that people with disabilities face; the recognition that their circumstances are difficult, and therefore that we have, quite rightly, social security protections in place for them; and that there is always more that we can do. There was also her reflection on past Governments’ approaches and the failures of systems to provide the right kind of support—adequate support—for people who have been stuck in poverty and have faced barriers and inequalities. The real difficulties, hardships and challenges associated with disabilities were also absolutely recognised by her, and I pay tribute to her on that basis.

I also want to comment on the hon. Lady’s reflection on disability, inequality and poverty at an international level. She was right in this debate to highlight the significance of the challenges that communities and individuals face around the world. For many millions of people internationally—we should put this in some kind of context—particularly in the underdeveloped world and in developing economies and countries, the barriers that they face are enormous for a wide range of reasons. It is not just about access to healthcare or support; it is the fact that the development of their economies and their societies is taking a very different trajectory from ours and they do not have the type of provisions we have in place for people who are experiencing poverty, disabilities or barriers.

If I may speak in the UK context and bring this back to home, the Department for Work and Pensions and the present Government have consistently focused—as, to be fair, did the previous Government—on the fact that when it comes to tackling poverty and inequality, the aim of our welfare reforms has been to secure employment opportunities, putting into practice the principle that work is the best route out of poverty. Evidence shows that nearly three quarters of workless families who have found full employment have escaped poverty.

Specifically—I will come to some of the points that the hon. Member for Glasgow East raised—we are very much focused, in the policy changes that we our making, on helping people with health conditions and disabilities to overcome some of the clear and stark barriers that they have faced in obtaining employment, so that they can rightly benefit from having access to employment opportunities and being in work. At the same time, we are also focused on protecting people through social security. For those who are vulnerable in society, particularly disabled people—it is worth highlighting that spending on the main disability benefits went up by over £2 billion in real terms over the course of the previous Parliament—it is right that we have the right kind of financial protection in place.

Universal credit was mentioned. We have brought in new exemptions for households entitled to carer’s allowance and the UC carer element, as well as for households receiving guardian allowance, which will be brought forward at the end of the year.

This is a much wider debate on how Government policy can help to transform people’s lives by tackling the root causes of poverty, supporting people into work and helping them progress. It is not just about yo-yoing or cycling in and out of the benefits system. I refer specifically to universal credit, which will support people, whatever their circumstances, to put the right frameworks in place to help them into work. At the same time, our focus has been on supporting more disabled people into work. We have made good progress, and 3.2 million disabled people are currently in employment. That is an increase of more than 150,000 over the past year.

My colleague, the Under-Secretary of State for Disabled People, is focusing on a huge agenda for employment, to halve the employment disability gap and—there was a debate in the House yesterday on our wider welfare reforms—by means of the Disability Confident campaign, to bring together more employers to work with us to create employment opportunities for people with disabilities, to challenge attitudes to disabilities, to help remove potential employment barriers and, importantly, to ensure that people who have barriers and disabilities have the opportunity to fulfil their potential.

It is important to highlight that many parliamentary colleagues across all parties are doing a great deal of work in their constituencies to promote and support the concept of Disability Confident and working with employers in their constituencies. I am happy to work with the hon. Lady and her colleagues to look at some practical things we can do, not just in her constituency, but in others throughout Scotland. We are working with employers to do a lot more to bridge the employment disability gap. At the same time, a lot of good work is taking place in our jobcentres to change attitudes and to work with employers and bring more together.

Natalie McGarry Portrait Natalie McGarry
- Hansard - - - Excerpts

I thank the Minister for the tone of her response so far. I congratulate the Government on their target of halving the disability employment gap, but in the Department for Work and Pensions the number of advisers for disabled people is disproportionately low, which is a real barrier to helping people into work.

Priti Patel Portrait Priti Patel
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The hon. Lady touched on the employment and support allowance, which was also part of the debate in the House yesterday. Some clear reforms are taking place and we are committed to publishing a White Paper in the spring which will focus on how we can provide the right kind of support and not just financial support. We are great believers in practical support. We are making sure that advisers and the right kind of support are in place to help people with barriers and disabilities and to give them the right guidance and the support that they need. At the same time, we are investing a lot more.

In our summer Budget there was provision of at least £115 million for a joint work and health unit to improve the work and health outcomes for people with health conditions and disabilities. The unit has started work. We are also working with disability charities to look at the right way—we will have pilots around the country—to provide practical support and schemes to support people with barriers and health conditions. Mental health is a classic example. The Government are committed to a lot of funding for mental health provision. In particular, we are seeking through this unit to join up the provision and to make sure the signposting and the right sort of provision can take place.

Angela Crawley Portrait Angela Crawley
- Hansard - - - Excerpts

Last week, I met employees at the jobcentre in my local area who spoke extensively about their work to support people back into employment. They raised the point that a large percentage of those who present at the jobcentre suffer from mental ill health. Does the Minister accept that these people require a longer period of support to sustain long-term employment? That may cost the Government more in the long run, but it will benefit their lives.

--- Later in debate ---
Priti Patel Portrait Priti Patel
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The hon. Lady is absolutely right to highlight that. We know that the challenges and barriers facing people with mental health problems are enormous. One purpose of universal credit is to support them while they try out work and undertake employment that may stretch them in the long run, and support them in work as well. At the same time, we must do more to work with employers. The Government do not have all the answers. Employers and their organisers have great health and occupational health support, and we must look at how we can leverage that to support individuals in employment.

If nothing else, this debate has highlighted that, yes, more needs to be done and we cannot stand still. Through our White Paper and the joint work between DWP and the Department of Health, the Government are looking at how to bring resources together in the right sort of structured way to ensure that we can deliver the services that in the long run can transform lives. These people are furthest away from the labour market. Their lives have been challenging for many reasons and they need the right sort of support to provide them with motivation and encouragement to get out of the cycle of inequality, deprivation, poverty and the combined factors that have stopped them from working in the past.

I am conscious of the time, Sir Roger, so in conclusion I want to emphasise that through the reforms and our current work—a White Paper will be published—the Government are committed to enabling not just disabled people, but those with health conditions and barriers, to fulfil their full potential while protecting the most vulnerable. I look forward to working with the hon. Member for Glasgow East and some of her colleagues when the White Paper is published and hearing their views on how we can do more to support people with these conditions back into work.

Question put and agreed to.

Welfare Reform and Work Bill

Priti Patel Excerpts
Tuesday 23rd February 2016

(8 years, 2 months ago)

Commons Chamber
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Priti Patel Portrait The Minister for Employment (Priti Patel)
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I beg to move, That this House disagrees with Lords amendment 1.

Lindsay Hoyle Portrait Mr Deputy Speaker
- Hansard - - - Excerpts

With this it will be convenient to discuss the following:

Lords amendment 8, and Government motion to disagree.

Lords amendment 9, and Government motion to disagree.

Priti Patel Portrait Priti Patel
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The Bill is a vital part of the Government’s reforms that are moving this country to a high wage, low tax, low welfare economy. It is fundamental to our commitment to end child poverty and improve children’s life chances, and to ensure that work always pays more than a life on benefits and that support is focused on the most vulnerable.

As is right and proper, the Bill’s provisions have been carefully scrutinised by both this House and the other place. Where appropriate the Government have tabled amendments to bring clarity or to remove unintended consequences, and they have made important commitments on supported housing and the social rents measure, on kinship carers and sibling adoptions under clauses 11 and 12, and on guardian’s allowance and carer’s allowance in relation to the benefit cap. The Government remain firmly committed to the aims and principles of the Bill as it left this House, and for that reason we wish to resist the non-Government Lords amendments.

Before I address each area in detail, allow me to set out the key principles that underpin our disagreement with the Lords. Our view is that the addition of child poverty income measures is unnecessary because we have already committed to publishing statistics on children in low-income families through the “Households below average income”—HBAI—publication. Lords amendment 1 would also reintroduce a failed approach to child poverty that is focused on tackling its symptoms rather than its root cause, and it would drive perverse behaviour focused on lifting people just above the poverty line, rather than on a life chances strategy that could transform children’s lives.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
- Hansard - - - Excerpts

Does the Minister accept that income has a huge impact on life chances?

Priti Patel Portrait Priti Patel
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Income is one of many factors that impact on life chances and poverty, which is why the Government are very much focused on tackling the root causes of child poverty. I will come on to discuss that issue even further—[Interruption.] I know that Labour Members disagree with that, and they will soon have their chance to comment.

On the change to the work-related activity component of employment and support allowance, and to the limited capability for work element of universal credit, I stress that the Government are fully focused on helping people who can work into work. We want to end a broken system that is patently failing those it should be helping, and ensure that a good proportion of the savings are recycled into long-term practical support that will have a transformative effect on people’s lives.

Neil Gray Portrait Neil Gray (Airdrie and Shotts) (SNP)
- Hansard - - - Excerpts

The Minister mentions the fact that income is a factor in poverty, but the executive summary of her own Government’s report from January 2014 states:

“The main factor is lack of sufficient income from parental employment, which restricts the amount of earnings a household has.”

It is not just a factor, it is fundamental.

Priti Patel Portrait Priti Patel
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I say to the hon. Gentleman and to all Members that work remains the best route out of poverty. Moving people into work, and helping their income grow once they are in work, is exactly our focus.

Mark Spencer Portrait Mark Spencer (Sherwood) (Con)
- Hansard - - - Excerpts

What would the Minister say to those of my constituents who have limited abilities? Would she say it is better to try to help and support them into some form of employment, albeit on reduced hours, or to write them off and say they cannot contribute to society?

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. Friend is absolutely right. This is the fundamental difference between our party and the Labour party in government. We are committed to supporting people to get into sustained employment, rather than consigning them to a life of dependency on benefits, which has counterproductive consequences.

Alison McGovern Portrait Alison McGovern (Wirral South) (Lab)
- Hansard - - - Excerpts

The Minister is wrong, isn’t she? The new deal got more people into work than ever before, whereas this Government are taking money out of the pockets of working families. How can she say that she wants working people to feel the benefit when universal credit will make them poorer?

Priti Patel Portrait Priti Patel
- Hansard - -

The hon. Lady is wrong in many, many ways. For a start, this Government have supported more people back into work than ever before. Our welfare reforms are helping, through universal credit and our work coaches in particular, and by giving individuals dedicated support to help them not just get into work but remain in work.

Wes Streeting Portrait Wes Streeting (Ilford North) (Lab)
- Hansard - - - Excerpts

Will the Minister give way?

Priti Patel Portrait Priti Patel
- Hansard - -

I will come back to the hon. Gentleman shortly, but I would like to make a bit of progress. Before I come on to discuss the child poverty income measures, I would like to touch on ESA. I will come back to some of the detailed questions.

When the Labour party designed the work-related activity component, it was intended to act as an incentive for people to take part in work-related activity and therefore move into work more quickly. However, with just one in 100 work-related activity group claimants leaving the benefit each month, it is clearly not working. It is crucial to make sure we have the right support in place to help people move closer to the labour market. As we all know, a large body of evidence shows that work is generally good for physical and mental wellbeing. There is also a growing awareness that long-term worklessness is harmful to both physical and mental health. Indeed, some of the major charities that the Department is working with agree that work can be right for some people after a diagnosis, and that improved employment support is crucial to helping people with health conditions and disabilities to move into work or get closer to the labour market.

As we speak, the Government are working on a White Paper for this year, which will set out plans to improve support for people with such conditions, including the role of employers and improved integration between health and employment. I will expand on that later, but I will begin by addressing Lords amendment 1 in detail.

Lords amendment 1 is wholly unnecessary, as statistics on low income are already published in the HBAI report. That information is available for all to see, and it will continue to be so. [Interruption.] Labour Members are chuntering away. They will get their chance to speak shortly. I think they should show me the courtesy of allowing me to make my points. Ministers in both Houses have committed to the continued publication of the information contained in HBAI. I hope it is clear to hon. Members that more than adequate safeguards are already in place to secure the continued publication of low income data.

Dawn Butler Portrait Dawn Butler (Brent Central) (Lab)
- Hansard - - - Excerpts

Macmillan Cancer Support has warned that cancer patients could be at risk of losing their homes if proposed Government cuts to ESA go ahead. Does the Minister have anything to say to Macmillan?

Priti Patel Portrait Priti Patel
- Hansard - -

What I would say is that Macmillan has also said that many people diagnosed with cancer would prefer to remain in real work or return to their job during or after treatment. It is important that the House recognises—[Interruption.] If the hon. Member for Pontypridd (Owen Smith) would like to intervene he is very welcome to do so, but I think he should let me finish my point before he starts chuntering away. It is essential that people suffering with cancer get the right support. Obviously, when people are in the ESA support group and are unable to work, they will remain in the support group and be supported financially.

If I may come back to the point on Lords amendment 1—

Priti Patel Portrait Priti Patel
- Hansard - -

Is this on Lords amendment 1?

Owen Smith Portrait Owen Smith
- Hansard - - - Excerpts

It’s about Macmillan.

Priti Patel Portrait Priti Patel
- Hansard - -

I give way to the hon. Gentleman.

Owen Smith Portrait Owen Smith
- Hansard - - - Excerpts

I am grateful to the Minister. She prays in aid Macmillan. Will she confirm that it is opposed to the £30 a week reduction for members of the ESA work-related activity group? It is not in favour of it; it is opposed to it.

--- Later in debate ---
Priti Patel Portrait Priti Patel
- Hansard - -

I think Macmillan, alongside the Government, recognises that those on the support group will, rightly, not be affected. They will be supported, because they are in the support group and therefore obviously ill.

Neil Gray Portrait Neil Gray
- Hansard - - - Excerpts

Will the Minister give way?

Priti Patel Portrait Priti Patel
- Hansard - -

No, I will not give way. I am speaking to Lords amendment 1.

Priti Patel Portrait Priti Patel
- Hansard - -

I am going to make some progress on Lords amendment 1, and then I will give way to the hon. Gentleman.

I turn to why statutory income measures failed. They are flawed as they do not drive the right action to transform children’s lives. It is worth demonstrating that with a few examples. The Government are undertaking crucial reforms to improve people’s life chances, such as introducing the national living wage and increasing the personal allowance for the hardest-pressed families. Those policies will provide support for the hard-working families who need it the most, yet, according to Labour’s failed approach to measuring child poverty, their introduction would have supposedly led to an increase in child poverty. That failed approach incentivised the wrong actions. For example, it led the previous Labour Government to tackle the symptoms of poverty through expensive income transfers, such as spending more than £300 billion on working-age welfare and tax credits between 2003-04 and 2008-09, with very little return. The strategy failed to tackle the root causes of child poverty and did not make a long-term difference to children’s prospects.

None Portrait Several hon. Members rose—
- Hansard -

Priti Patel Portrait Priti Patel
- Hansard - -

I will give way shortly.

The number of children in relative poverty remained broadly unchanged. In short, there are fundamental weaknesses in that system, which the Government are seeking to put right through our life chances measures.

Andrew Gwynne Portrait Andrew Gwynne
- Hansard - - - Excerpts

The Minister would perhaps want me to remind her that child poverty fell by 1 million under the Labour Government, which is something we should be proud of. Her own advisers advised against removing the child poverty indicators, so why is she headstrong in ignoring the advice not just of the other place but her own commission, which has said that this is wrong?

Priti Patel Portrait Priti Patel
- Hansard - -

We discussed this issue in Committee. I just reiterate that the Government are right in our approach: we are focused on tackling the root causes of poverty. Ultimately, as the Prime Minister said in his recent life chances speech, we are here to make sure we can tackle those long-term root causes. This is not just about measurement. The economy cannot be secure if we spend billions of pounds on picking up the pieces of social failure. Economic reform and social reform are not two separate agendas, they are connected to one another. Therefore, it is imperative that we focus our resources on how we can transform people’s lives, which is through tackling the root causes.

The path I urge the House to take is the one that will incentivise the right action, and the one that the evidence tells us will make the biggest difference to children’s life chances. That is precisely why the Government are seeking to introduce the life chances measures contained in the Bill. The statutory measures on worklessness and educational attainment, combined with the non-statutory measures in the forthcoming life chances strategy—such as family breakdown, problem debt, and drug and alcohol dependency—will drive the right actions to transform children’s lives.

Priti Patel Portrait Priti Patel
- Hansard - -

Just bear with me a second. [Hon. Members: “Ooh!”] There is no need to be childish. I will give way to the hon. Member for Ilford North (Wes Streeting).

Wes Streeting Portrait Wes Streeting
- Hansard - - - Excerpts

I am grateful and surprised that the Minister has given way. I am sure the Prime Minister is delighted to see her back on message today, as she has not been in the past few days. She talks about the measures in the Bill. How can she go against the advice of her own Government’s commission when it says that

“it is not credible to try to improve the life chances of the poor without acknowledging the most obvious symptom of poverty, lack of money.”?

When is she going to listen to the Government’s own advisers?

Priti Patel Portrait Priti Patel
- Hansard - -

Let me remind the hon. Gentleman that we continue to publish data on low-income households. This information is still being published—[Interruption.] It might not be the information that the hon. Gentleman wants to know about, but we are publishing it, alongside doing something that previous Labour Governments successively failed to do—transforming lives, addressing the root causes of poverty and, importantly, ensuring that we tackle the causes that have led to child poverty in the long run.

Michael Tomlinson Portrait Michael Tomlinson (Mid Dorset and North Poole) (Con)
- Hansard - - - Excerpts

The hon. Member for Denton and Reddish (Andrew Gwynne), who made a point about child poverty but is no longer in his place, seemed to indicate that owing to the recession under the last Labour Government, child poverty fell. Does that not show the fallacy of Labour arguments and reveal that we are trying to seek the root causes of poverty rather than provide some measure that simply does not work?

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. Friend is right. It is absolutely clear that when children are the future of our country, it is right to focus on delivering better life chances for them. When we publish the life chances strategy in spring, we will make the biggest difference to children’s life chances now and in the future. We must seek to rescue a generation from poverty by extending life chances right across our country. We must build a country where opportunity is more equal, with stronger communities and young people who can face the world with a background of experiences and characteristics that we know are vital for their success. As my right hon. Friend the Prime Minister said, we must seek to

“transform the life chances of the poorest in our country and offer every child who has had a difficult start the promise of a brighter future.”

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

Did the Minister see the report published by the Centre for Social Justice last month, which set out a way of combining the life chances indicators—interesting information will be provided in them—with income indicators, so that we do not ignore income, which is so clearly a key aspect of the whole issue?

Priti Patel Portrait Priti Patel
- Hansard - -

I thank the right hon. Gentleman for his intervention and his comment. We will publish the life chances strategy in the spring, and I think it will give us every opportunity to consider holistically all the factors that can lead to better outcomes for children and families. I recognise the right hon. Gentleman’s point. On the back of the remarks I have made, I urge hon. Members to support the Government motion and reject Lords amendment 1.

Let me deal now with Lords amendments 8 and 9, which as you indicated, Mr Deputy Speaker, impinge on the financial privileges of the House. These amendments would simply delete clauses 13 and 14 from the Bill. This would reverse the plan, announced in the summer Budget and endorsed by this House, to align the amount paid to ESA claimants in the work-related activity group to that which is paid to JSA claimants, and to align the amount paid to universal credit limited-capability-for-work claimants to that of the UC basic rate. Let me take this opportunity to stress the Government’s strong belief that this reform is the right thing to do. It is part of our efforts not just to improve people’s life chances but importantly to support them going into work so that they can reach their full potential. Let me explain why.

Record employment levels and strong jobs growth in recent years have benefited many, but those benefits have yet to reach those on ESA. While one in every five JSA claimant moves off benefit each month, this is true of just one in 100 ESA claimants in the work-related activity group. This Government believe that people with health conditions and disabilities deserve better and deserve more support. [Interruption.] I appreciate that Labour Members have no solutions for tackling the wider issues surrounding welfare and would rather simply continue to spend public money in an unsustainable way. We have listened to charities and campaigning organisations who say that improved employment support is key to helping people with health conditions and disabilities to move closer to the labour market and, when they are ready, into work.

Neil Gray Portrait Neil Gray
- Hansard - - - Excerpts

I look forward to reading the Minister’s White Paper, but is she not approaching the matter the wrong way round? Should she not introduce the White Paper first and then look at making changes to ESA? What does she say to her colleague, the hon. Member for South Cambridgeshire (Heidi Allen)—I look forward to hearing her contribution later—who said on “ConservativeHome” this morning:

“The beauty of this intermediate WRAG group is that it is just that—intermediate, on the road to returning to work but not quite there yet”?

Priti Patel Portrait Priti Patel
- Hansard - -

I rather think the hon. Gentleman makes my point for me in the sense that those in the work-related activity group need more support. Currently, they have been getting too little support. That is exactly the purpose of our reforms. We believe that we must tackle this issue, and provide—yes—the right financial security for individuals, but at the same time also look at the most effective ways to improve the wellbeing of those individuals by giving them support to get back to work. Almost half a million people in the work-related activity group get too little support to move back into work. We currently disincentivise them from doing so. As I say, they deserve better than that, and the Government are determined to take the necessary steps to transform their life chances by supporting them into work.

The Government are committed to ensuring that disabled people are able to participate fully in society, and we have set out our ambition to halve the disability employment gap. It is a duty of Government to support those who want to work to do so, and most people with disabilities and health conditions, including the majority of ESA claimants, tell us that they want to work. Some 61% of those in the work-related activity group tell us that they want to work, and we mean to put those people’s ambitions at the centre of what we do.

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

We have established that Macmillan Cancer Support disagrees with the Minister on this issue. Parkinson’s UK, Mind, and Rethink Mental Illness, whose chief executive wrote to all of us, say that they strongly disagree. So can the Minister tell us the name of any organisation representing disabled people that agrees with the position that the Government have taken?

Priti Patel Portrait Priti Patel
- Hansard - -

What I would say to the right hon. Gentleman is that we have been working with organisations and disability groups, and we have actually been listening to them. [Interruption.] Rather than making generalised comments from a sedentary position, Labour Members should realise that we are working with those organisations as we move forward with our White Paper—

Priti Patel Portrait Priti Patel
- Hansard - -

No, I will not.

The ESA system was set up by Labour in 2008 to support people with health conditions and disabilities into work. Despite being set up with the best of intentions, it has failed the very people it was designed to help. The original estimates were that far more claimants would move into work. A White Paper was published in 2008, setting out that the then Labour Government aimed to reduce the number of people on incapacity benefits by 1 million by 2015.

We have spent £2.7 billion this year on the ESA work-related activity group, but as I mentioned earlier, only around 1% of people in this group actually move off the benefit every month. I think it is fair to say that this benefit is not working as anyone intended it to work and, most importantly, it is failing claimants badly. The Government are committed to spending taxpayers’ money responsibly in a way that improves individuals’ life chances, and helps to move people off benefits and into work.

Those in the work-related activity group are given additional cash payments, but very little employment support. As the Prime Minister has recently stated, this fixation on welfare treats the symptoms, not the causes of poverty, and over time, it traps people into dependency. That is why we propose to recycle some of the money currently spent on cash payments, which are not actually achieving the desired effect of helping people move closer to the labour market, and put it into practical support that will make a genuine difference to people in these groups.

In addition to the practical support, which is part of a real-terms increase that was announced in the autumn statement, we need to reflect on how spending the £60 million to £100 million of support originally set out in the Budget will be influenced not only by Whitehall, but by a taskforce of representatives from disability charities, disabled people’s user-group organisations, employers, think-tanks, provider representatives and local authorities. So far, we have worked with charities including Scope, Leonard Cheshire Disability, the Royal National Institute of Blind People, the National Autistic Society and the Disability Action Alliance.

During the passage of the Bill, Members of this House and the other place raised concerns that we are expecting claimants who have been found “not fit for work” to be able to work. That is not the case. Claimants in the work-related activity group have been found to have “limited capability for work” and that is very different from being unfit for any work. Of course there may be limitations on the type and amount of work people in the work-related activity group can do, and they may also need workplace adjustments, but employment is not ruled out. That is the reason for the ESA permitted work rules. The distinction is important, because the misconception helps to drive people further away from the labour market, perpetuates the benefit trap, and undermines the life chances of claimants.

Greg Mulholland Portrait Greg Mulholland (Leeds North West) (LD)
- Hansard - - - Excerpts

The Minister has mentioned fluctuating conditions. It is well known that mental health problems cause fluctuating conditions which are very hard to deal with, but 50% of the people affected by the cut in ESA have such problems. Surely that has not been built into the Government’s thinking. What analysis has the Minister made of the impact?

Priti Patel Portrait Priti Patel
- Hansard - -

I have just touched on what we are doing to find extra employment support. As I have said, we are working with other organisations, and I have named only some of them. However, the issue of mental health is crucial to the way in which we connect our systems, working with the NHS. A joint working group from the Department for Work and Pensions and the Department of Health is looking into how we can help members of the ESA work-related activity group with mental health conditions, provide signposts for them, and secure treatment for them as well.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
- Hansard - - - Excerpts

When the Opposition talk about income, what they really mean are welfare benefits. That is not what we mean when we talk about income. All the evidence shows that 75% of children in relative poverty will be removed from the poverty indicator if both parents in the household are working. There are now more children in families in which people are working than ever before: that is this Government’s record.

As for ESA, some of us have met people with significant disabilities who are working, such as the people from National Star College in Gloucestershire who are now working with EDF Energy. It is amazing to see what a difference that makes not just to their incomes, but to their overall life chances and life happiness.

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. Friend is right to highlight the importance of work to people who have previously been locked out of employment opportunities. We have many schemes, but Disability Confident is a very good example of how we can work with employers to deliver sustained employment opportunities for people with disabilities. The Government are doing additional work on a wide-ranging employer strategy, working with employers specifically to establish how we can address the disability employment gap and how they can give people with disabilities more structured and sustained employment opportunities.

It is important to recognise that the changes in employment and support allowance and universal credit work together, and cannot be dealt with in isolation. We have invested a significant amount in universal credit to ensure that we keep people connected and engaged with the labour market from the outset of their claims. Unlike those claiming employment and support allowance, universal credit claimants with a health condition or disability are offered labour market support, when that is appropriate, at the very start of their claim. That helps them to remain closer to the labour market, even if they are not immediately able to return to work. It also provides them with employment support, advice or training to get back into work, which, in the long run, will help them to obtain jobs.

I stress that this change does not affect those in the ESA support group or the universal credit equivalent. It also does not affect the premiums that form part of income- related ESA. Moreover, existing ESA claimants will not be affected. There will be no cash losers, and the policy applies only to those who apply for ESA and subsequently enter the WRAG from April 2017. We also aim to protect those who move off ESA to try to work. Those who were receiving the component and returned to ESA within 12 weeks because they could not cope with work will be able to reclaim ESA and receive the component again. Hopefully, that will help to dispel the myth that everyone who is currently in the work-related activity group will be affected by the change. Universal credit works in a different way from ESA, but we aim to put similar protections in place.

This reform is a first and necessary step towards a wider reform package. In the autumn statement, my right hon. Friend the Chancellor announced that the Government would publish a White Paper this year that would set out our plans to improve support for people with health conditions and disabilities to further reduce the disability employment gap and promote integration across health and employment. That will include exploring the roles of employers.

Clauses 13 and 14, together with the additional practical support announced in the Budget, will provide the right support and incentives to help people with limited capability for work move closer to the labour market and, when ready, into work. In the light of those arguments, I hope that Members will feel able to support the Government.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
- Hansard - - - Excerpts

I support Lords amendment 1, which deals with child poverty reporting obligations, and amendments 8 and 9, which relate to the proposed cuts in the employment and support allowance work-related activity component and the universal credit equivalent.

Lords amendment 1 places a reporting obligation on the Secretary of State, requiring an annual report on child poverty to be laid before the House. The amendment stipulates that the report must include information on the percentage of children living in poverty as originally described in the Child Poverty Act 2010, and based on household income and material deprivation.

The Bishop of Durham, who moved the amendment in the Lords, emphasised the importance of income to an understanding of child poverty and children's wellbeing and life chances. He said that income measures would not supplant the Government's other measures relating to worklessness and educational attainment. These measures will ensure that the income-based measures of child poverty, which have been collected in the UK and other developed countries for decades, will be retained, allowing year-by-year comparisons and holding the Government to account.

Various charities, including the Children's Society, the Child Poverty Action Group and End Child Poverty, have called on the Government not to abandon the income-based measures of child poverty, as has the Equality and Human Rights Commission. In a letter published in The Times today, 177 child health academics have written in support of retention of those measures. Even UNICEF has urged the Government to retain the income-based measures that are used in the 35 OECD countries, and that allow inter-country comparisons.

As has already been mentioned, the Government’s own 2014 evidence review of the drivers of child poverty found that a lack of sufficient income from parental employment—not just worklessness—was the most important factor standing in the way of children being lifted out of poverty. Even the Minister, in a recent Westminster Hall Debate, acknowledged that

“Income is a significant part of this issue, but there are many other causes as well.”—[Official Report, 26 January 2016; Vol. 605, c. 72WH.]

The Social Mobility and Child Poverty Commission’s 2015 annual report found that 2.3 million children were living below what is currently defined as the child poverty line, and the Resolution Foundation has estimated that in 2016 alone a further 200,000 children, predominantly from working households, will fall into poverty. That is on top of the projections of the Institute for Fiscal Studies that the falls in child poverty at the beginning of the century risk being reversed. The 1% uprating of benefits by itself in 2013 was estimated to have pushed 200,000 more children into poverty.

Given the Bill and the four-year benefit freeze, it is entirely probable that the increase in child poverty will rise even more steeply. A recent inquiry by the all-party parliamentary group on health in all policies into the impacts of the Bill on child poverty and health showed clearly that it could lead to an increase in the number of children facing the misery and hardship of poverty by as many as 1.5 million by 2020.

Work Capability Assessments

Priti Patel Excerpts
Tuesday 9th February 2016

(8 years, 3 months ago)

Westminster Hall
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Priti Patel Portrait The Minister for Employment (Priti Patel)
- Hansard - -

It is a pleasure to serve under your chairmanship, Mrs Moon. I start my remarks by commenting that the debate has been wide-ranging, and I thank everyone who has contributed. This is obviously an important subject, and we must put it in the context of the overall commitment we all feel should rightly be in place to support people who cannot work because of health conditions and disabilities. We must also reflect on the fact that we have a system that obviously seeks to support such individuals.

A range of comments have been made that pre-date me as a Department for Work and Pensions Minister. I will do my utmost to address as many of them as I can, but it would only be fair to write to hon. Members whose points I do not address directly. The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) mentioned the very tragic case of Mr Carre, and it might be more appropriate if I write to her about that.

We all recognise that work is good for individuals—it enhances physical and mental well being—and we also recognise that being out of work, for whatever reason and whatever the condition, can exacerbate poor health conditions and make people’s situations even worse. A system that supports people is vital. I will talk about contracting later, but we want to move away from a system that tells people they cannot do any work to one that supports them in what they can do. The hon. Member for Banff and Buchan (Dr Whiteford) touched on the forthcoming White Paper that will focus on the support that can be given to individuals, and I will address that shortly.

The work capability assessment was established under the previous Labour Government in 2008 and it has had quite a journey, not just in relation to the contracting process; the assessments have come under scrutiny under previous Governments and under the present Government. There have been more than 100 recommendations in response to the five independent reviews of the work capability assessment. That has made the assessment process more reliable and has improved the claimant experience

In the final independent review of the work capability assessment, Dr Litchfield commented that, having looked at the systems in comparable countries, there was

“no better replacement that can be pulled off the shelf”.

Neil Coyle Portrait Neil Coyle
- Hansard - - - Excerpts

There is a concern among the disability and advice sector that the Government continue to say they have accepted the recommendations of the independent reviews. Will the Minister outline how many of the recommendations have been fully implemented?

--- Later in debate ---
Priti Patel Portrait Priti Patel
- Hansard - -

It is fair to say—this will link to many of the forthcoming reforms in the White Paper—that we have implemented many of the recommendations. On top of that, we will continue to review them and work with the system. Any system of financial support for people who are not able to work needs to have a reliable method of assessing entitlement to that support. That is the basis of this afternoon’s debate.

I will talk about the current provider before I address the points about contracting that were raised by the hon. Member for Sheffield, Heeley (Louise Haigh). Since the Centre for Health and Disability Assessment, known as CHDA, took over the contract to carry out assessments in March 2015, it has made a number of improvements to the claimants’ experience of assessments. It has focused on increasing the number of healthcare professionals by 39% since March 2015, and it has opened up 100 new assessment rooms, so that it can see more people in more locations. I do not want to rehearse many of the points already made in the debate, but a lot of the focus has been on the new contracting arrangements with CHDA, which has reduced the backlog of assessments by 62%. It has also introduced claimant-focused improvements, including setting up a customer representative group with leading charities that have regular meetings with the chief executive and clinical leadership team.

There is also a focus, because we are speaking about people and the experience of individuals going through the process, on rolling out greater disability awareness training for all staff. The recent National Audit Office report acknowledges the progress that has been made in improving contracted-out health and disability assessments, and we have taken steps to help people with mental health conditions in their assessments following the reviews. We have trialled new awareness training for administrative staff that will now be rolled out nationally. We are also improving services on telephone engagement and how claimants are assisted; and that level of interaction has improved.

I want to address the points about contracting, which the hon. Member for Sheffield, Heeley focused on. I hope she will forgive me because I cannot speak about Maximus in 2007 and what took place in America, but I must make it abundantly clear that there is a full and transparent contracting process, undertaken with a negotiated procedure to enable the Department for Work and Pensions to fully test bidders and their propositions to meet the objectives for service delivery. I am speaking about the previous contractor, Atos, and the improvements that we seek under the new contract with CHDA.

Louise Haigh Portrait Louise Haigh
- Hansard - - - Excerpts

I am grateful to the Minister for giving way and for her response so far, but is she seriously saying that previous fraud and theft from taxpayers cannot be taken into consideration when the Government are handing out a very similar contract in the UK?

Priti Patel Portrait Priti Patel
- Hansard - -

I cannot speak specifically to previous contracting processes and bids that took place outside the United Kingdom—it is not for me to comment on—but let us be clear. The Department is responsible for hundreds of billions of pounds of public money—taxpayers’ money. On our processes of procurement, renegotiation and accountability, we have a clear approach to the scrutiny of providers, and rightly so. That applies to all Departments, and the same applies when it comes to failure. The contract has an open-book accounting approach and a robust validation of data. I think the hon. Lady mentioned falsification of data at one point. We have a clear process on the validation of data. She also went on to comment on how providers are incentivised, but our providers are not incentivised by benefits outcomes. We have a full range of balanced performance measures that focus on quality and volumes and customer satisfaction. That brings me back to the fact that we are speaking about people and how the interaction with people through assessments actually takes place.

Performance reviews and performance are fundamental in all Government contracts to ensure governance arrangements, and the Department takes steps to implement regular weekly and daily meetings with DWP officials and the CHDA.

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

Will the Minister give way?

Priti Patel Portrait Priti Patel
- Hansard - -

I will give way, but I want to emphasise that service credits are applied when a supplier does not meet an agreed service level.

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

I am grateful to the Minister for giving way and for her response so far. Will she tell us whether there is a requirement in the tendering process for disclosure of previous legal action?

Priti Patel Portrait Priti Patel
- Hansard - -

I cannot answer that question, but I will find out and write to the hon. Lady. I would be astonished if the Department did not have a system for looking back and assessing companies’ previous conduct before we engage with them. All bidders have to be thoroughly scrutinised by not only my Department but others. Much of that work is done with the Cabinet Office, which sets out guidelines and guidance. I have no doubt that the right systems and efficacy procedures are in place for contracting and the types of contractor with which the Government engage.

Bidder’s assumptions are tested as part of the negotiated procedure, and they are provided with information as part of the dialogue that takes place. The WCA contract was originally with Atos. Since the CHDA has picked up the contract, there have been challenges and backlogs, which have been referred to throughout the debate. It is only right that the Department continues to address those challenges and sets stretching and ambitious targets for its providers. We will ensure that we deliver value for money for our contracts. Again, the assumptions are tested through the bid process, but we are clear that a new financial support model has been in place as part of the CHDA contract. We have also contracted for a more sustainable service, part of which includes more face-to-face assessment—that direct engagement which did not take place under the previous contract. The focus is also very much on reducing the backlog and improving waiting times.

The NAO report has been mentioned several times. The report recognised that the Department has made particular progress and acknowledged the fact that there is now a relentless focus on performance when it comes to reducing backlogs and driving down delays. It also recognised the increased performance management capacity. Although there is more to do—we can never stand still in this space—we have learned from our experiences in the contracting process and will ensure that we continue to make improvements.

A number of Members mentioned cases from their constituencies. I would, of course, be happy to look at any individual cases that Members would like to refer to me, but I should emphasise that we clearly do support people through the system. A great deal of money has been put into providing support to help people to go back to work. Over the next three years, £43 million is being invested in trialling the provision of specialist support for people with mental health conditions. The Government also recognise the importance of promoting positive attitudes among employers when it comes to them employing people with disabilities or health conditions. That will be at the heart of the White Paper that will be published—

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On resuming
Priti Patel Portrait Priti Patel
- Hansard - -

I acknowledge that there is more to do to support people with health and disability issues. In the recent spending review, we outlined our commitment to support people with disabilities into work. We announced a real-terms increase in funding for Access to Work, which will enable up to 25,000 additional disabled people to receive support. We will expand the Fit for Work service to support more people on long-term sickness absence with return to work plans, and we will provide at least £115 million for the new joint work and health unit, including £40 million for a work and health innovation fund. We will set out some new long-term reforms in the White Paper, which will be published in the spring.

This is about not reinventing the wheel, but learning from insights. Hon. Members spoke about evidence, support and insights from charities, stakeholders and third parties, which the hon. Member for Banff and Buchan mentioned. My Department is working with stakeholders through the joint work and health unit, and a new taskforce has been set up to gain insights into providing support for individuals in a more targeted, tailored and personalised way. If people are assessed and put on a benefit, we do not want there to be no dialogue and interaction with them during that period about the additional support that they require to get back into work. The White Paper will be published in the spring, but we are open to thoughts and comments through the consultation process.

This not just about the WCA; we must have a much more holistic approach to supporting individuals. Before the Division, I mentioned employers, and there is a lot more that can be done to promote positive attitudes to employing people with disabilities and health conditions. Employers must find the right balance and the right way to support people in the workplace. For example, they can utilise occupational health and look at our Disability Confident campaign and the work that my hon. Friend the Minister with responsibility for disabled people is doing.

Looking at this issue holistically, our reforms are all aimed at improving the quality of life of those who need the support the most. It is right that we recognise that there is no single method for each individual and their particular circumstances. Every person in the benefits system is an individual and their situations will be different, difficult and challenging. No system can offer a one-size-fits-all interaction, but we must ensure that the system works with individuals and recognises their particular backgrounds and circumstances. Protecting the most vulnerable in society is this Government’s priority.

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

Given that 90% of disabilities are acquired, I recognise and support all that the Minister has said about ensuring that people can stay in work as much as possible and that people are helped back into work, but that does not currently happen. Some half a million disabled people will be affected by the change in the employment and support allowance and the cuts. How can the cuts be justified before the support to enable people to stay in or get into work is in place?

Priti Patel Portrait Priti Patel
- Hansard - -

The hon. Lady mentioned the current changes and referred to the Welfare Reform and Work Bill that is being considered in the House of Lords this afternoon. She will recall that this issue was debated extensively in Committee. I have emphasised that the Government have a clear commitment to protect the most vulnerable in society, including disabled people. No one who is currently in receipt of ESA will see a financial loss; the changes will not affect anyone whose capacity to work is significantly limited. The personal independence payment will also continue to help meet the extra costs of living that disabled people face, and exempted benefits contribute to the additional costs of disability and care resulting from the benefits freeze.

Looking at the debate holistically, we know that the WCA has caused many previous challenges. Yes, reforms are coming and, yes, changes are afoot, but I think hon. Members will agree that we cannot write off the people who, for various reasons, have not been supported into work. If they can work, we want to support and encourage them.

The Government spend a great deal of money on protecting the vulnerable not only through benefits, but through additional support to help with living costs. It is right that we provide that support and safety net. I hope that future debates and the White Paper will help to introduce new suggestions, new ways of working and new practices to ensure that we do not again see the situation that we had in 2008, 2009 or 2010 with Atos and the WCA. We should broaden the interface of support available through not only agencies or Government Departments, but specialist support organisations, stakeholders, practitioners and those in the care sector, recognising that we can always do more to support people. I am conscious of the time, Mrs Moon, so I will close my remarks there.

Oral Answers to Questions

Priti Patel Excerpts
Monday 1st February 2016

(8 years, 3 months ago)

Commons Chamber
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Lucy Frazer Portrait Lucy Frazer (South East Cambridgeshire) (Con)
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13. What progress he has made on increasing the number of women in employment.

Priti Patel Portrait The Minister for Employment (Priti Patel)
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Supported by this Government’s reforms of welfare and the equalisation of the state pension age, there are now more women in work than ever before, with an increase of over 1 million since 2010.

Lucy Frazer Portrait Lucy Frazer
- Hansard - - - Excerpts

It is absolutely vital that after women have had children, they have the option to go back to work if they want to. What steps is the Minister taking to ensure that her Department encourages that?

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. and learned Friend is absolutely right. In encouraging more women back into work, this Government are committed to increasing and providing more childcare places. In fact, I look forward to when we this week announce the early adopters of the new 30-hour childcare policy. I think it fair to say that alongside the increase in the national living wage and the increases in the personal allowance, there is more support for women to get back to work and to work longer hours.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
- Hansard - - - Excerpts

20. Does the Minister agree that there is a special category of women—women on the autistic spectrum —who find it very difficult to get into employment? With the right kind of support, however, they can make a valuable contribution to our economy. Will the Minister look at Ambitious about Autism, which is launching an employability initiative for people with autism, and give it some support?

Priti Patel Portrait Priti Patel
- Hansard - -

Of course the hon. Gentleman is absolutely right. We are working with that organisation. I have been in touch with the National Autistic Society, too, to discuss what more we can do to work with employers and find more employment engagement for people on the spectrum. The hon. Gentleman is also right to highlight the need for more support for women with autism—and that is exactly what this Government are committed to do.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
- Hansard - - - Excerpts

Increasing the number of women in employment is a key goal for this Government. Many good things are happening, but one thing going on in my Gloucester constituency highlights that more needs to be done—helping women on employment and support allowance back into employment. In that context, will the Minister join me in thanking a partnership called Forwards, which, led by the county council and in tandem with organisations such as Pluss, is making a huge difference to the lives of individuals who are now coming into work for the first time?

Priti Patel Portrait Priti Patel
- Hansard - -

I thank my hon. Friend for making that point and for his observations from his own constituency. He is right to say that more support can always be provided for women on ESA, but also for people in general on it. That is why this Government are committed to the reforms that we have outlined. Importantly, we are committed to working in partnership with other organisations, including charitable organisations—as well as local authorities—such as the one my hon. Friend mentioned from his own constituency.

Jim Cunningham Portrait Mr Jim Cunningham (Coventry South) (Lab)
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What is the Minister doing to help women on zero-hour contracts to get tax credits?

Priti Patel Portrait Priti Patel
- Hansard - -

The most important and significant thing we have done as a Government in respect of zero-hours contracts is to abolish the exclusivity clauses, which the hon. Gentleman’s party, when in government, did absolutely nothing about.

Philip Davies Portrait Philip Davies (Shipley) (Con)
- Hansard - - - Excerpts

More and more people, particularly women, are taking on caring responsibilities. I thank the Minister for meeting me and Carers’ Resource from my constituency about this particular issue. Does she agree that it is important for employers to have more carer-friendly employment practices and that we need to do more to encourage that to happen in order to get the best for those people? Will the Government ensure that they do something to recognise the success of those employers who are carer friendly?

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. Friend is absolutely right. It was with great pleasure that I met Carers’ Resource from his constituency. Earlier today I discussed how we can support and work collectively with that organisation to support more women with caring responsibilities to get employment and also to work with employers to do more to support getting people into work—carers in particular. I look forward to working with my hon. Friend and Carers’ Resource to see what more we can do to pilot more initiatives locally.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
- Hansard - - - Excerpts

15. What progress his Department has made in reducing the number of workless households.

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Luciana Berger Portrait Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
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Last week, the Government were significantly defeated in the House of Lords over their plans to cut the benefits of sick and disabled people. More than half the people in the work-related activity group have a mental health condition. They face barriers getting into work as a result of their condition as well as stigma from employers. Will the Secretary of State now accept how utterly unfair and ineffective this proposed cut is, and abandon it?

Priti Patel Portrait The Minister for Employment (Priti Patel)
- Hansard - -

No one will lose out as a result of the changes we are making to employment and support allowance. Importantly, that means that there will be no cash losers. I think it is worth my reflecting on the point that the Secretary of State made, which is that this Government are focused on supporting those on ESA in a way that the previous Labour Government did not when they introduced the work capability assessment. That is why we have kept the WCA under review. We will announce the publication of a White Paper in the spring that will look into further reforms.

Simon Hoare Portrait Simon Hoare (North Dorset) (Con)
- Hansard - - - Excerpts

T4. As the chairman of the all-party parliamentary group on multiple sclerosis, may I ask the Minister to join me in applauding the excellent work of the Multiple Sclerosis Society in supporting people with MS? Will he tell us how his Department is supporting people with MS to get into work or to keep their jobs after a diagnosis of MS?

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Alan Mak Portrait Mr Alan Mak (Havant) (Con)
- Hansard - - - Excerpts

T5. Jobs fairs are an effective way for local employers to promote their apprenticeships, which are a key element of this Government’s long-term economic plan. Will the Minister join me in congratulating local Havant businesses Fasset, Barratt Homes and Lockheed Martin on supporting my jobs fair later this month?

Priti Patel Portrait Priti Patel
- Hansard - -

I thank my hon. Friend for making this point about the great work that is taking place in his constituency. I absolutely endorse his commitment to holding apprenticeship and jobs fairs, because they are the gateway to new jobs and employment opportunities for many young people. I commend him for the work that he is doing.

Jim Cunningham Portrait Mr Jim Cunningham (Coventry South) (Lab)
- Hansard - - - Excerpts

T7. May I ask the Minister to speed up the review process for benefit claimants who have been sanctioned or whose claims are being investigated? Over the Christmas period, a number of my constituents, despite having done everything right, ended up having to borrow money to get through that period because of delays. In some cases, this has happened after the Christmas period as well.

Christopher Pincher Portrait Christopher Pincher (Tamworth) (Con)
- Hansard - - - Excerpts

T6. Will my right hon. Friend congratulate Tame Plastics and other manufacturing firms in Tamworth that are creating new jobs and apprenticeships? What can he do in areas of low unemployment to turn jobcentres into recruitment agencies for more and better-skilled roles?

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. Friend is absolutely right in what he says. There is no doubt that a great deal of work is being done with Jobcentre Plus to support local firms such as Tame Plastics, not only in recruiting new employees but in supporting the skills base that important companies such as this need in his constituency.

Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
- Hansard - - - Excerpts

T8. Last week, the Government suffered another embarrassing defeat in the House of Lords on the proposals to cut ESA WRAG support by £30, which would leave many disabled people in a very difficult financial position. Despite what has been said earlier today, will the Secretary of State now re-examine the arguments put forward by the Scottish National party? Will he categorically give a commitment today that no one will lose out on this critical financial support?

Priti Patel Portrait Priti Patel
- Hansard - -

Let me remind the hon. Lady of my earlier comments, when I said that no one currently on ESA will lose out as a result of the changes. Importantly, too, our Government are focused on supporting individuals who have health conditions and are on ESA, which is why those in need would automatically go to the support group.

Chris Green Portrait Chris Green (Bolton West) (Con)
- Hansard - - - Excerpts

A jobcentre’s role is especially important for those who do not have the necessary support at home. Does my right hon. Friend agree that in addition to the youth obligation, there should be an obligation on jobcentres to offer more specialist support?

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. Friend raises an important point: jobcentres have a significant role to play in providing support to young people. That is why we have just started a pilot that takes Jobcentre Plus, with employers, into school to act as a gateway to provide new employment, work experience and work placement opportunities. He has also made the point that the new youth obligation focuses on ensuring that young people are either earning or learning, and do not end up trapped in the benefits system, which is exactly what happened under the previous Labour Government.

Mark Durkan Portrait Mark Durkan (Foyle) (SDLP)
- Hansard - - - Excerpts

We have already heard that the Department has changes afoot in relation to benefits for people with disabilities, not least with the narrowing of the personal independence payment. Are Ministers hoping to extend that to Northern Ireland as well, using the direct rule powers that exist until the end of this calendar year?

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
- Hansard - - - Excerpts

Following on from the comments about the ESA WRAG changes and the Lords having passed the matter back to us, I welcome the opportunity to look at this again and am excited to see the content of the White Paper. Can the Minister give us any feel at all about the cost recognition for claimants in the future? This is not just about support; it is also about the additional costs that they face to live.

Priti Patel Portrait Priti Patel
- Hansard - -

I thank my hon. Friend for the point she raises and her question, and I come back to the comments I made earlier. Importantly, the changes we are making, particularly through the Welfare Reform and Work Bill, show that we are committed to transforming people’s lives by supporting more people with disabilities who face barriers to work. This also means an increase in funding support for those with health conditions and disabilities of almost 15%, and we will bring that forward in the new work and health programme.

Diana Johnson Portrait Diana Johnson (Kingston upon Hull North) (Lab)
- Hansard - - - Excerpts

Will the Minister agree to look at the case of my constituent Mr Beet, who has home dialysis three times a week but is also trying hard to keep his job to support his family? He has been turned down for PIP twice. Does she feel, as I do, that if a person is having dialysis, they are eminently suitable to receive PIP?

Priti Patel Portrait Priti Patel
- Hansard - -

I would be very happy to look at this case with the hon. Lady to see what support we can provide her constituent. She makes an important point, which is that he wants to work and therefore should be supported to stay in employment, too.

Peter Heaton-Jones Portrait Peter Heaton-Jones (North Devon) (Con)
- Hansard - - - Excerpts

I look forward to welcoming my hon. Friend the Minister for Disabled People to North Devon next month for a Disability Confident event. Does he agree that these are very important events, not only for people with disabilities, to bring them closer to the world of work, but for employers, who do not realise what untapped talent there is?

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Joanna Cherry Portrait Joanna Cherry (Edinburgh South West) (SNP)
- Hansard - - - Excerpts

Half of those receiving employment and support allowance in Scotland qualify through a mental health problem. A report from the Scottish Association for Mental Health, which has a base in my constituency at Redhall Walled Garden, has found that people who are placed in the work-related activity group report “inappropriate expectations” being put on them, making their mental illness worse. Does the Minister agree that that will be exacerbated by the Government’s proposed changes?

Priti Patel Portrait Priti Patel
- Hansard - -

With respect, I say to the hon. Lady that she is wrong. This Government are investing more than any previous Government in providing financial support and in piloting new projects to make sure that those who have mental health challenges and problems are given the right kind of support. We should make the distinction here that this is about not just financial support but the wider support that they get through DWP and the networks and in the community to help them get into work.

Wendy Morton Portrait Wendy Morton (Aldridge-Brownhills) (Con)
- Hansard - - - Excerpts

I welcome the news that nine out of 10 businesses that started with new enterprise allowance support survived for more than 12 months. Will the Minister update us on what further progress there has been in the Government’s efforts to support jobseekers who are looking to start up their own businesses?

Priti Patel Portrait Priti Patel
- Hansard - -

I thank my hon. Friend for highlighting the great work and the results of the NEA, which has been an outstanding scheme, supporting more and more people to get into work and start up their own businesses. There is more support going through our Jobcentre Plus network to mentor, help and engage with those individuals who want to start up their own businesses. We have more reviews coming, but the whole House can join me in commending this programme for its success and for how it has enabled people to get on in life and start up their own businesses and become successful.

In-work Poverty

Priti Patel Excerpts
Thursday 28th January 2016

(8 years, 3 months ago)

Westminster Hall
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Priti Patel Portrait The Minister for Employment (Priti Patel)
- Hansard - -

May I say what a pleasure it is to serve under your chairmanship, Mr Turner? I thank all Members for their interesting and lively contributions. As the hon. Member for Torfaen (Nick Thomas-Symonds) has said, this is our second debate on the topic this week. I will not respond to all his comments, because I have heard him make some of them before, especially those about my right hon. Friends the Secretary of State and the Chancellor. I recall commenting—not in the debate two days ago, but possibly two weeks ago—on some of the language that has been used when it comes to supporting work, supporting those who are in work and reforming our welfare system so that it supports people into work.

I recognise that this debate is about in-work poverty, although it has been quite broad. In the last five years, we have seen the movement of more than 2 million people into work and an employment rate of 74%, which is the highest since records began. Many of the generalised assumptions that have been raised in the debate are simply wrong, particularly given what we inherited in 2010. That movement of people into work came after the previous Labour Government had presided over the longest and deepest post-war recession, which wiped out nearly 6% of our economy. That did much to hurt people, who were put into poverty and saw their earnings decline, and it had a devastating impact on the country’s economy and resulted in the loss of jobs.

Three hon. Members from Wales spoke in the debate. If I recall correctly, the Office for National Statistics on employment, which were published last week, show that over the last year the number of people in work in Wales rose by 48,000, bringing the employment level up to 1.4 million—close to its highest ever level—with a rapidly growing employment rate. We have also seen an increase in the number of jobs in Swansea, Cardiff and Newport, and across Wales. New jobs were announced last week in Wales by major employers including BT, Admiral and General Dynamics.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - - - Excerpts

Will the Minister simply confirm that wage growth this decade is predicted to be the lowest since the 1920s? Does that not say everything about the wasted Tory decade?

Priti Patel Portrait Priti Patel
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On the contrary. Average weekly earnings have grown consistently in the past year—

Carolyn Harris Portrait Carolyn Harris
- Hansard - - - Excerpts

Will the Minister give way?

Priti Patel Portrait Priti Patel
- Hansard - -

Let me finish my sentence and I will. Wages have been growing faster than inflation for 14 consecutive months and, as much as the Labour party has been utterly disparaging about the introduction of the national living wage, which says a great deal about its attitude to pay increases, we know for a fact that when the national living wage is introduced later this year, we will see an enormous—

Carolyn Harris Portrait Carolyn Harris
- Hansard - - - Excerpts

Will the Minister give way?

Gerald Jones Portrait Gerald Jones
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It is a long sentence.

Priti Patel Portrait Priti Patel
- Hansard - -

I will give way in a moment. I have been very respectful by listening to and not intervening in the contributions of Opposition Members. More people will benefit when the national living wage is introduced in April.

Carolyn Harris Portrait Carolyn Harris
- Hansard - - - Excerpts

I feel suitably chastised. The Minister gave a list of job increases but she left off Tata Steel, where there have just been 750 job losses very close to my constituency.

Priti Patel Portrait Priti Patel
- Hansard - -

Tata is not a particular case study for Wales or the United Kingdom. I hope that the hon. Lady recognises that the steel industry faces huge challenges around the world. In China, people are also losing their jobs because of what has happened in the steel industry. Jobcentre Plus and the Department for Work and Pensions have been there from the outset to support people who have lost their jobs in the steel industry by helping their families at this very difficult time and supporting them to find work. The marketplace is challenging, but the hon. Lady is the Member of Parliament for a Welsh constituency and she has a duty to acknowledge the support that is being given—the work that Jobcentre Plus staff in her constituency are providing—to individuals and families who have lost their jobs.

Christina Rees Portrait Christina Rees
- Hansard - - - Excerpts

Surely the increase in jobs in Wales is down to the excellent policies of the Welsh Labour Government and schemes such as Jobs Growth Wales with EU investment.

Priti Patel Portrait Priti Patel
- Hansard - -

If it were not for the fact that this Government picked up the shambolic legacy of the Labour Government in 2010, rebalanced the economy and, importantly, created the right environment for the creation of new jobs, those new jobs in Wales would not exist today. We have supported lower corporation taxes and lower taxes for businesses to come to the UK to make the UK a much more competitive place.

We have heard voices from around the UK in the debate, including the hon. Members for Foyle (Mark Durkan) and for Motherwell and Wishaw (Marion Fellows). A record number of jobs have been created in Scotland and wages in Scotland are going up as a result.

Neil Coyle Portrait Neil Coyle
- Hansard - - - Excerpts

The Minister seems to have the utmost confidence in the economic growth, which does not appear to have been shared in the latest survey of business leaders. Is their nervousness about the current state of the economy perhaps to do with the fact that the Chancellor seems set to take over from the lame duck Prime Minister?

Priti Patel Portrait Priti Patel
- Hansard - -

That intervention does not befit the hon. Gentleman.

Neil Coyle Portrait Neil Coyle
- Hansard - - - Excerpts

That is up to the Chair.

Priti Patel Portrait Priti Patel
- Hansard - -

No—I have served with the hon. Gentleman on a Bill Committee in which he has made some valuable contributions. This is not about individuals. We live in a global world. Look at what is happening with the international economy right now. Stock markets around the world, including the UK, have faced a challenging start to the year. Business is right to be sensitive to global factors. I come back to the point that the UK has a highly competitive economy thanks to many difficult decisions undertaken by the Government in the previous Parliament, and we continue to make difficult decisions in this Parliament.

All the contributions this afternoon are valid. The hon. Member for Motherwell and Wishaw mentioned that individual constituents come to her on a weekly basis. If she would like to share with me her casework examples regarding universal credit, I would be happy to take them up. When it comes to stability, we have made choices. None of the opposition parties has presented solutions to the House this afternoon. Hon. Members said that universal credit should not exist and that they want to scrap it, but they have no alternatives for welfare reform or changes to the welfare system. As we heard in earlier debates today, to govern is to choose. Our choice is to reform welfare and to ensure that we support people into work.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - - - Excerpts

The Minister is generous in giving way. Will she clarify something on the Government’s welfare reform? Lord Freud said that the move from tax credits to universal credit will happen in the event that someone re-partners and in the event that there is a new member in the household. Is the modern-day Tory party really providing disincentives to marriage and having children?

Priti Patel Portrait Priti Patel
- Hansard - -

The hon. Gentleman is taking the noble Lord’s suggestion out of context. There was quite a substantial discussion about universal credit including a gross representation of the roll-out—the hon. Member for Bermondsey and Old Southwark (Neil Coyle) said, in jest, that it would be “a thousand years”. All hon. Members know, because they have heard it from me previously, that universal credit is now in three quarters of all jobcentres and will be in all jobcentres by April 2016, so the roll-out will take a few more months and certainly not a thousand years as the hon. Gentleman suggested.

I come back to the principle of the reforms. Universal credit transforms the welfare system and has been designed to ensure that people are supported in work. It is a subject of many discussions I have had with the hon. Member for Bermondsey and Old Southwark in previous debates. Yes, there is a financial safety net and support through universal credit but, importantly, the universal credit system is designed to support people to progress in work. Jobcentres deliver support, providing a single point of contact with much more personalised support, advice and guidance from a dedicated work coach.

The concept of the work coach is working. I have sat in on many interviews when I go to see our colleagues—particularly work coaches—working in jobcentres and helping people to develop in their roles, especially people who are moving from part-time to full-time work or who are seeking to work more hours depending on personal circumstances. Work coaches help them to develop the right kind of skills and confidence to secure employment. Surely hon. Members cannot disagree with the fundamentals of supporting people into work, giving them confidence, and helping them to develop new skills, should that be the appropriate route for them.

I am proud of way in which we work with other aspects of the state when we look into co-locating our services with housing associations, further education colleges and local authorities. We have 30 fully co-located sites, where we can join up and bring public services together to ensure that we have the right kind of service delivery for individuals.

I am conscious of time as I can see the clock ticking, but I want to emphasise that the Government are fundamentally focused on providing in-work support through stronger local partnerships in constituencies to ensure that we support individuals on universal credit or benefits, help them to get back into work, and secure better employment outcomes and better futures for them in the long run.

Child Poverty

Priti Patel Excerpts
Tuesday 26th January 2016

(8 years, 3 months ago)

Westminster Hall
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Priti Patel Portrait The Minister for Employment (Priti Patel)
- Hansard - -

It is a pleasure to serve under your chairmanship, Mr Howarth. I thank the hon. Member for Bootle (Peter Dowd) for securing this debate. I agree completely with him that child poverty is an incredibly important issue, and that child poverty levels are too high in this country. Indeed, he and I discussed the indicator and its importance to addressing child poverty while discussing the Welfare Reform and Work Bill in Committee not long ago.

The issue is of immense importance. The hon. Gentleman referred to my right hon. Friend the Prime Minister in his remarks. Tackling child poverty is close to the Prime Minister’s heart, and it is at the heart of this Government’s agenda. We have committed to eliminating child poverty and to improving the life chances of children up and down the country. They are the future of this country. It is also important to recognise, as the hon. Gentleman has done, that poverty is not natural. At the same time, it should not be defined by arbitrary measures. We must look at the actual causes of poverty and how we as responsible Government and parliamentarians use policy levers to create the right solutions to address the actual causes of poverty.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - - - Excerpts

Does the Minister agree with what the Social Mobility and Child Poverty Commission said just before Christmas? It said that

“it is not credible to try to improve the life chances of the poor without acknowledging the most obvious symptom of poverty, lack of money.”

Will she take this opportunity to confirm that in defining child poverty, the Government will take into account income, as well as their defeat on this matter in the House of Lords last night?

Priti Patel Portrait Priti Patel
- Hansard - -

I recognise the defeat that took place in the House of Lords last night. It is a perfectly normal part of the parliamentary process. On income measures, we will continue to use the number of households below average income. On the point about the Social Mobility and Child Poverty Commission, the SMCP itself is clear that the current approach focuses on dealing with symptoms and not the underlying causes of child poverty. Of course, that is exactly the purpose of this Government.

In fact, we debated this issue very extensively during the passage of the Welfare Reform and Work Bill. We are focusing on the root causes rather than symptoms. It is also important to say that we are seeking to prioritise the areas that will make the biggest difference and help to transform the lives of children.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - - - Excerpts

Will the Minister simply confirm something? Does she agree that lack of money is an obvious measure of poverty—yes or no?

Priti Patel Portrait Priti Patel
- Hansard - -

Income is a significant part of this issue, but there are many other causes as well. Through the Welfare Reform and Work Bill, we are focusing on certain factors, because all the evidence tells us that the factors that have the biggest impact on child poverty and our children’s life chances, and consequently they become the real drivers, are focus on education, educational attainment and work, because they make the biggest difference to disadvantaged children, both now and in the future.

In particular, with the new life chances strategy we are focused, as I have already said, on tackling the root causes. The Prime Minister has already outlined that strategy, which sets out a comprehensive plan to fight aspects of disadvantage and extend opportunity. However, we should also recognise that many of those in poverty have to confront a range of challenges and issues, such as drug addiction, alcoholism and health issues, including poor mental health. It is important that we use the right public policy levers to bring the support together to deliver the right services and mechanisms for those households.

The strategy will include a wider set of non-statutory measures on the root causes of child poverty, including family breakdown, the problem of debt, and drug and alcohol addiction. These measures will sit alongside the life chances measures in the Welfare Reform and Work Bill. This spring in particular will present an opportunity to examine the details and to consider how we start to address these deep-rooted social problems, and how we can work collectively—by using public policy and the delivery mechanisms that we have in all our communities—to focus on how we can support children and transform their lives.

Jo Cox Portrait Jo Cox
- Hansard - - - Excerpts

I thank the Minister for giving way. I just want to push her a little bit on whether she will now accept the defeat last night and listen to a range of experts, the Social Mobility and Child Poverty Commission, and the public, who feel that the Government should report annually on income-related aspects of child poverty. While I acknowledge that child poverty is a complex issue, the income dimension is such a key part of it that it is not credible to ignore it.

Priti Patel Portrait Priti Patel
- Hansard - -

The Bill is going through the right process of scrutiny now in the Lords, as it already has in the Commons. Of course, we will consider all responses when it comes to considering the next steps in particular. That is the right and proper parliamentary process and of course all legislation goes through it.

Once again, however, I must emphasise that there is no silver bullet for this situation; there is no way in which child poverty can be just addressed overnight. A range of areas need to be looked at and, as I have said, tackling the root causes is a fundamental step in the right direction.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - - - Excerpts

The Minister is being very generous in giving way. Does she accept that trying to change the definition of child poverty simply confirms what the Social Mobility and Child Poverty Commission has said about missing the existing targets by a country mile? Are the Government not just trying to change the definition because they will miss the targets?

Priti Patel Portrait Priti Patel
- Hansard - -

I completely reject that assertion for many reasons, and I do not have the time now to have the full debates that we had in Committee; please forgive me, Mr Howarth.

This process is not about moving goalposts or changing definitions; it is about making a fundamental review of the approach that we take. I will not be tempted by the hon. Member for Bootle, who basically said that I would inevitably regale Members with what happened under Labour. However, this process is a fundamental shift in the strategy and the approach that are being taken. The approach is a holistic one, looking at the root causes and recognising that we have to address, for example, the number of workless households and the causes of worklessness, and ask why households have been workless in the past, and recognising that having work in households changes the future outcome for children and of course redefines child poverty and what it means to households.

We should also recognise in this debate that work plays a very important role in addressing the issue of poverty, including child poverty, because we know that work is the best route out of poverty. Evidence has shown that nearly three quarters of poor workless families who have found employment have escaped poverty. So these are some of the crucial underlying factors that we have to address, and of course work—

Liz McInnes Portrait Liz McInnes
- Hansard - - - Excerpts

Will the Minister give way?

Priti Patel Portrait Priti Patel
- Hansard - -

I will give way just one more time, because there are other points that I want to make.

Liz McInnes Portrait Liz McInnes
- Hansard - - - Excerpts

I thank the Minister and I will ask a brief question. If work is the route out of poverty, can she explain why two thirds of those who are defined as being in child poverty are in working households?

--- Later in debate ---
Priti Patel Portrait Priti Patel
- Hansard - -

We should also recognise that evidence shows that the highest poverty exit rate—75%—was for children living in families who went from part-time to full-time employment. Of course, as the economy grows, and through the introduction of the new national living wage as well, we will see those households benefiting much more when it comes to income in particular.

Regarding the hon. Member for Bootle’s own constituency, the latest figures show that the number of children living in households that receive out-of-work benefits fell by 7% between May 2013 and May 2014. Of course, we are seeing that trend develop by providing more employment opportunities, by recognising that, of course, work is the best route out of poverty, and by finding the right employment to support those families in particular to gain employment.

Imran Hussain Portrait Imran Hussain
- Hansard - - - Excerpts

I accept that work assists with removing child poverty. Nevertheless, while the Government talk about mass employment and this road to economic recovery, in my constituency of Bradford East many of the jobs are zero-hours contracts, part-time work and poorly paid work. That does not assist my constituents and it certainly does not go towards eradicating child poverty in my constituency.

Priti Patel Portrait Priti Patel
- Hansard - -

There is good news in the economy and not all the jobs in the hon. Gentleman’s constituency will be part-time, low-paid or zero-hours, so he has made a sweeping generalisation. However, regarding his point about low-skill, low-wage work, he is right; that is a wider issue in the economy that we must tackle. Tackling it is based on getting a higher skill country and economy, which can only be achieved by our being competitive as an economy and by investing in education, which is exactly what this Government are doing, and by focusing on education as a key factor in transforming the outcomes and lives of children in particular. Educational attainment is the biggest single factor in ensuring that poor children do not end up as poor adults and get stuck in that cycle of dependency and that cycle of low wages and low skills.

We all know that good English and maths are important. There are plenty of studies—hundreds of them, and international studies as well as national ones—that recognise that those subjects are key aspects in improving children’s future life chances. Focusing on educational standards and having a new, vigorous curriculum are part of this Government’s commitment. However, educational attainment is also important. In areas of deprivation, turning around schools that unfortunately have been focused on low standards and low outcomes, and ensuring that we have more good and outstanding schools, particularly in areas of deprivation, including wards, is important, and we would all support that.

Hon. Members have obviously touched on measures in the Welfare Reform and Work Bill, but once again we must look at the changes that we are introducing, particularly regarding welfare. This process is not about individuals and using some of the terms that have been used: I think that the language that the hon. Member for Bootle used about shirking should not be used at all.

In the minute or so that I have left, it is important for me to emphasise that part of these reforms is focusing on the support that we can provide to individuals; not only cash payments but support to help people to get into work. That is exactly what the Welfare Reform and Work Bill is about.

I want to reassure the House about our focus when it comes to eliminating child poverty. The Government and this Prime Minister have been very clear about that. Our focus is on work and education, on a commitment to improving the life chances of all children and—importantly—on tackling the root causes of child poverty.

Question put and agreed to.

Universal Credit: North-West

Priti Patel Excerpts
Wednesday 13th January 2016

(8 years, 4 months ago)

Westminster Hall
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Priti Patel Portrait The Minister for Employment (Priti Patel)
- Hansard - -

It is a pleasure to serve under your chairmanship this morning, Mr Nuttall.

I congratulate the hon. Member for St Helens South and Whiston (Marie Rimmer) on securing the debate and on her contribution. I thank all Members present for their good, strong and wide-ranging contributions, including my hon. Friends the Members for Weaver Vale (Graham Evans), for Congleton (Fiona Bruce), for Cheadle (Mary Robinson), for Bolton West (Chris Green) and for Ribble Valley (Mr Evans) and the hon. Members for Stalybridge and Hyde (Jonathan Reynolds) and for Makerfield (Yvonne Fovargue), to name but a few. I hope to cover many of the points they raised.

The debate has been interesting because of its content and the nature and variety of the issues raised. My opening remarks, however, will focus on what the hon. Member for Torfaen (Nick Thomas-Symonds) said. I, too, welcome him to his new role. He rightly highlighted language and its use, which are incredibly important when discussing people, welfare, benefits and access to welfare. However, I do not accept his assessment that the Government use divisive language. I do not see the Government’s focus of ensuring that work always pays and that Britain moves from being a low-wage, high-welfare and high-tax society to being a higher-wage, lower-welfare and lower-tax society as divisive. Nor do I see as divisive the language used by the Prime Minister this week when he announced our life chances strategy, which is to do with this very issue of welfare and transforming people’s lives.

This Government and the Conservative party are focused on helping people with multiple barriers to their life chances, or with difficulties in life, so that they can get back into work or secure their routes to employment, which the debate has touched on. Importantly, we are securing the right kind of opportunities for all individuals. That is the right thing to do and is what all hon. Members seek to do when they are elected as Members of Parliament to represent their constituents.

Fiona Bruce Portrait Fiona Bruce
- Hansard - - - Excerpts

I am sorry to interrupt the Minister when she is in full flow, as she often is. Will she clarify one point that arose earlier in the debate when the hon. Member for Makerfield (Yvonne Fovargue) spoke about a “named contact”? I confirmed that, under universal credit, as I understood it, a named personal contact will not only act as a work coach, but also, according to the Under-Secretary of State for Disabled People in a debate on 6 January,

“help them to deal with their individual case when they are navigating complicated benefit systems”.—[Official Report, 6 January 2016; Vol. 604, c. 302.]

Will the Minister confirm that the named contact will supply the support necessary for people both to access their benefits and to get into work?

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. Friend is absolutely right. Claimants have access to personalised and dedicated support via a named work coach. Indeed, I have been to many of our jobcentres and sat in on universal credit interviews with claimants and work coaches. There is additional support available for claimants who require help with housing and other benefits, arrears payments or even budgeting.

It is therefore worth highlighting how much our welfare system has moved on, compared with the complex and distorted system that existed previously. Many years ago we had a number of benefits but, fundamentally, universal credit has rolled six benefits into one to streamline our system and to make it less complicated. The more complex a benefits system is, as we saw in the past, the more difficult it becomes to support individuals—they spend more time navigating the system than looking for or being supported into work.

All that goes back to some of the fundamental principles of the universal credit: it can support individuals and families not only in having a job, but in their journey to employment. Once they are in work and achieve sustained employment, they get support to secure long-term employment or to work more hours, which removes the barriers that existed under the previous system.

As we have said, universal credit supports individuals to make progress into work in particular. Yes, people are supported by the wages that they earn and benefits they receive at the same time, but, unlike in previous systems, we do not have the barrier of a 16-hour work requirement that may have caused people to restrict their working in order to avoid losing benefits. That is part of the changes brought in by universal credit, which stays with the claimants when they move into work and gradually reduces as their earnings increase. Therefore, people—in particular those on low incomes—do not lose their benefits all at once.

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
- Hansard - - - Excerpts

Lord Freud has said that there will be an automatic movement from tax credits to universal credit in two situations: “repartnering” and a

“new member joining the household”.

Will the Minister confirm that, if someone gets married or has a child, they will be moved from tax credits to universal credit?

Priti Patel Portrait Priti Patel
- Hansard - -

We are clear that people being moved on to universal credit from tax credits will be supported and will not lose out. A fundamental principle of universal credit is that it removes barriers that may have existed and, importantly, it gives people the support they need when they come on to it. That is different from previous systems. It is different from tax credits, for example, which did not provide support for people when they wanted to increase their hours and earnings.

The previous system was fragmented and there was little incentive for people to take up even a few more hours of employment, but under universal credit people can benefit as soon as they start to work. It is a simpler system to understand. It comes back to the point that we have support in our jobcentres to help people to extend their hours of work or, when they are moved on to universal credit, to understand the system and support them.

That is different from what existed before. Under universal credit, no one will have to worry about the Government asking for money back because the real-time information system connects the employer and Her Majesty’s Revenue and Customs on the number of hours worked. That is dramatically different from the situation when tax credits was introduced and millions of low-income families faced uncertainty about owing money back to HMRC at the end of the year. I am sure all Members have dealt with many examples of casework in that area.

I want to come on to the points raised, because I am conscious of time. There is evidence that universal credit is getting people into work and helping them stay in work. We have reviewed universal credit and, as a result of the support that people are given, we see that they spend 50% more time looking for work. We now see more universal credit claimants moving into employment compared with JSA claimants thanks to the focused support they get through their single point of contact, their work coach and other means.

Nigel Evans Portrait Mr Nigel Evans
- Hansard - - - Excerpts

Is not the point—surely this helped win us the general election—the message that no one should be better off out of work than in work? With the national living wage and higher thresholds, we have ensured that far more people who are in work will keep more of their money.

Priti Patel Portrait Priti Patel
- Hansard - -

My hon. Friend is absolutely right about people keeping more of the money that they earn rather than going through the process of having more taken away and then recycled through benefits such as tax credits. It is also worth reflecting on the point made by my hon. Friend the Member for Weaver Vale. He mentioned Northwich jobcentre, which has done a great deal of work to support people on universal credit. The award that the Secretary of State gave to staff members there shows how they are supporting people and transforming lives, which is fundamental to the welfare reforms that we are bringing in.

Many comments were made about universal credit in terms of the process, the roll-out and delays. I do not agree with some of the assessments and analysis given, and those with reference to the OBR in particular. We are rolling out universal credit as planned. Importantly, we no longer believe in the “big bang” model used in previous systems such as tax credits, which when introduced brought a great deal of chaos to jobcentres and the welfare system. We have adopted a test-and-learn approach to ensure safe and secure delivery and, importantly, to ensure that we can learn from individuals as they go through the process.

We have an enhanced digital service, which makes it clear immediately that a claim has not been progressed and that further information is needed. Jobcentre Plus and work coaches speak well of the system. I have seen it in action, with the immediate way in which data are exchanged and claims are processed. We have faster electronic payments to allow the Department to make payments via BACS on the same day to minimise further delays, because of course people need to be supported.

I do not agree with the comments made about the report from Citizens Advice, because we know that the research for that was based on anecdotal evidence from a small group of current UC claimants—the sample was less than 1%. Even Citizens Advice said that that was not representative of all claimants on universal credit.

We have universal support working alongside universal credit, which offers wraparound support for those who need it. That comes back to the points raised about no two individuals being the same. Situations are different for claimers and no one can count for the life circumstances of individuals, so universal support provides that wraparound support.

Jonathan Reynolds Portrait Jonathan Reynolds
- Hansard - - - Excerpts

It sounds a little inconsistent to say that the Government did not want a big bang approach and want to learn from the roll-out, but then the Minister immediately dismissed one of the most useful and authoritative reports on the roll-out in our area. That report includes a number of cases that, based on my constituency surgeries, are spot on in the problems identified.

Priti Patel Portrait Priti Patel
- Hansard - -

We are clear that we have an agile test-and-learn system. That is not a big bang approach. With all due respect to Labour Members, previous Governments went for the big bang approach on welfare systems and there were consequences: I highlight again the tax credits example.

I will wrap up, because I am conscious of time. In terms of incentives and support, from April we are increasing the amount of eligible childcare cost in universal credit to 85%. That will make a remarkable difference to families. Welfare is about much more than just giving people money. It is about removing barriers for individuals, understanding circumstances and giving people the support they need to get on in life.

Benefit Sanctions

Priti Patel Excerpts
Wednesday 16th December 2015

(8 years, 5 months ago)

Westminster Hall
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Priti Patel Portrait The Minister for Employment (Priti Patel)
- Hansard - -

It is a pleasure to serve under your chairmanship, Mrs Gillan. I will endeavour, in the time I have, to cover as much ground as possible.

It is fair to say that I am always happy to come to the Chamber to participate in debates on this important issue. Today’s debate has given all Members the opportunity to give their constituents’ views and their personal views on the sanctions and benefits system. It has also provided opportunities for Members of the House to discuss how we can support and encourage people back into work. On a day when we see figures showing record numbers of people in employment, we should welcome all the support put in place through our jobcentres and work coaches to help people into work. It is somewhat disappointing that we have not heard much from Members in this afternoon’s debate on the support available to help people into work.

Conditionality is a key part of the approach that has helped to deliver record-breaking levels of employment, labour market improvements and the lowest claimant count since 1975. As we have debated not only today and in the debate a few weeks ago but continuously, sanctions have been part of the welfare system for a considerable number of decades.

Neil Gray Portrait Neil Gray
- Hansard - - - Excerpts

Does the Minister accept that since her Government and their predecessor, the coalition, came into power, the sanctioning rate has increased for not only ESA but JSA? Can she give any reason for that?

Priti Patel Portrait Priti Patel
- Hansard - -

I do not accept what the hon. Gentleman says at all. Sanctions have been a part of the welfare system for a considerable number of decades, and successive Governments of all parties have acknowledged the principle that there should be a link between benefits and engagement with the labour market. That principle has been at the heart of the system, and it is important to recognise that that is exactly how the system works right now; we engage claimants and ensure they are being supported in their work searches, while ensuring fairness and balance in the system.

The claimant commitment clearly sets out the consequences of failing to meet the requirements of the claim. As I have stated in previous debates, the claimant commitment is discussed at length with the claimant and, of course, takes account of any barriers to work, health conditions, disabilities or caring responsibilities.

Anne McLaughlin Portrait Anne McLaughlin
- Hansard - - - Excerpts

Will the Minister give way?

Priti Patel Portrait Priti Patel
- Hansard - -

I will not, because I have many comments to make and we are short of time.

Two weeks ago, in the previous debate on sanctions, a number of Members quoted from reports and gave statistics to support their claim that the system is broken. We have heard similar quotes today, but we should be clear that much of what has been quoted is not fully representative of the system. We have heard extensive quotes from Oxford University and the London School of Hygiene and Tropical Medicine report that suggests only 20% of JSA claimants find work after a sanction has been imposed. That is misleading, because it makes the assumption that the 80% of people who leave JSA with unknown destinations do not enter work. In fact, many people do not inform Jobcentre Plus of their post-benefit destination because they are getting into work.

Statistics published by the Office for National Statistics put a clear disclaimer on the data, stating that the destinations data are unreliable and that it should not be assumed that all movements into employment are accurately reported. It would have been more accurate for Members to quote from the comprehensive DWP destinations survey that found that 68% of those leaving JSA move into work.

Members have rightly raised the issue of sanctions for people with mental health conditions. Less than 1% of ESA WRAG claimants with mental health conditions are sanctioned each month. The latest available data show that the number of sanctions across ESA WRAG claimants has decreased over the past year, including for those with mental health conditions. That is because, as we have continuously stated, we are seeking to support people with health conditions and, in particular, mental health conditions into employment.

The Government have just pledged more than £40 million to develop a proper and robust evidence base on which approaches are effective for people with mental health conditions. Over the next three years, that investment will enable us to have informed pilots that are based on evidence, to see exactly what kind of support works for those people and whether cognitive behavioural therapy for people on ESA, JSA and UC makes a difference. We are now working in a more integrated approach with the Department of Health on the use of talking therapies in our jobcentres and other community locations.

Several hon. Members mentioned the recent Crisis report, but they did not highlight that the report found there was support for a system of conditionality among the respondents interviewed.

Neil Gray Portrait Neil Gray
- Hansard - - - Excerpts

I said that.

Priti Patel Portrait Priti Patel
- Hansard - -

Let me finish my point. The report noted that

“the sanctions regime does prompt some behavioural change”.

Scottish National party Members have secured this debate; I congratulate them on that, but they have had their say. They have been giving very inaccurate reports about the sanctions regime. As I have said at least six or seven times on the Floor of the House, if individual Members want to raise their cases with me, I am happy to look into them. If they want to raise cases about jobcentres in their constituencies or the conduct of work coaches, I would like to pick those up with them. Members who have raised such cases have not done so previously, but I give them the opportunity to do so.

Emily Thornberry Portrait Emily Thornberry
- Hansard - - - Excerpts

I appreciate that the Minister has a lot to get through, so I will speak very fast. One of the Work and Pensions Committee’s recommendations was that the DWP should monitor the destinations of people leaving jobseeker’s allowance. Currently, the Department only does that on an ad hoc basis. That is one of the recommendations that the Government refused to apply.

Priti Patel Portrait Priti Patel
- Hansard - -

That, of course, is part of our ongoing work and, along with the sanctions system, it is always subject to review. We will continue to work with the system and learn from the data we receive.

To return to the Crisis report, it is not entirely clear how the respondents to the study were selected, and the conclusions appear to apply to only a subset of the overall homeless population. That is why we are quite cautious about the degree to which the views and responses included represent those of the broader population. We know that the most important priority for homeless people is to secure accommodation, and to secure support not only in getting into accommodation but in dealing with barriers to work and any particular conditions they may have. It is important to note that support is always, rightly, based on individual needs and circumstances, and is there to help homeless claimants find suitable living accommodation, which in turn helps to remove barriers to employment.

I return to the role of our work coaches. They are able to treat certain homeless claimants as meeting their job-seeking conditions if they are receiving the right support to find living accommodation. Work coaches are also able to suspend conditionality temporarily if the claimant’s circumstances constitute an emergency. We recognise that homeless claimants may not be covered by our current list of vulnerable claimants for the purposes of hardship payments, and I emphasise that we are considering expanding the list to include those who are homeless.

We understand that homelessness is highly complex, and no one should generalise about the circumstances or backgrounds of homeless individuals. It is our priority to ensure that they get the right support. That is why the Government have made more than £1 billion available since 2010 to prevent and tackle homelessness and to support vulnerable households. In the spending review, we announced an increase in the Department for Communities and Local Government’s centrally funded programmes over the next four years to tackle homelessness. I would like to think that all Members here would welcome that.

References have been made to sanctions statistics, and it has been suggested that according to the Government’s March figures, 50% of sanctions imposed have been overturned on appeal. The official statistics say something different: in the year to June 2015, only 14% of original adverse JSA sanctions and 23% of ESA decisions were overturned by decision makers. Those decisions were based on new evidence being brought forward that was not available at the time of the original decision.

Anne McLaughlin Portrait Anne McLaughlin
- Hansard - - - Excerpts

Will the Minister give way?

Priti Patel Portrait Priti Patel
- Hansard - -

I come back to my point that if individual Members want to raise specific cases with me, they are very welcome to do so.

I do not have time to touch on the overall improvements to the sanctions process, which I know we have discussed before, or the Work and Pensions Committee. We keep the operation of the sanctions system under constant review—as we do all our policies—to ensure that it continues to function effectively and fairly. We will continue to do that.

I will touch on the pilot of the yellow card system, which gives claimants an additional period of time to provide evidence of good reason before a decision is made. That will help to strike the right balance between fairness, conditionality and individual circumstances. Our intention is that the trial will operate in Scotland from March 2016, running for approximately five months. It will be carefully designed and delivered, with a clear process, training and guidance provided for all staff involved. The trial will be evaluated in full to assess the impact on the individual behaviours and understanding, and we will carefully monitor all the relevant data to consider the extent to which the warning system trial affects sanction decisions. We will make the findings available from autumn 2016. There are already a number of opportunities for people who are sanctioned to present more evidence, and of course, that will be part of an ongoing system of review. We are working with our work coaches to develop that.

As today’s debate was secured by members of the SNP, I would like to raise some particular points about the situation in Scotland. First, I am pleased to say that today’s employment figures show that Scottish employment is up significantly, by 178,000 since 2010, and that Scotland has an employment rate of 74.3%, which is higher than the UK average. We are seeing very strong levels of employment growth in Scotland. Unemployment has fallen by 63,000, with the number of people in work in Scotland now close to a record high. That is not just because of economic policies, but because of employers expanding their businesses and doing more to support the economy. There are plenty of figures on that, but I do not need to quote them. Members in all parties can access today’s employment figures.

However, I want to touch on something that has not been raised today. When it comes to welfare provision in Scotland, we have the Scotland Bill, and the devolution package in Scotland will make the Scottish Parliament one of the most powerful devolved Parliaments in the world. The Bill will also apply to welfare provision in Scotland, which will be tailored to local circumstances. Powers will include: a power for Scotland to create its own employment programme to help the long-term unemployed and disabled people into work; the power to create new benefits in any area of devolved responsibility; powers in universal credit to determine how and when claimants are paid and how much some claimants get for housing support; and the power to legislate for top-up payments to people in Scotland who are entitled to a reserved benefit.

This of course puts more power in the hands of the Scottish Government, and Members of the Scottish National party can now be up front with the public in Scotland on what they will do with this new devolved power and how they will apply the new powers to their welfare system.

Although we have had a full debate today, I think it is fair to say that sanctions are not a punitive measure, contrary to what the Scottish National party Members—[Interruption.] They are sitting there giggling right now, but I would not trivialise the support that has been put in place by this Government to help people into work; I think that is quite insulting, actually, to many of our work coaches and the people who work in the welfare area providing support for individuals.

This is part of a wider framework of policy to provide support to encourage claimants into work. Today’s labour market figures show that. Not only are we seeing high levels of employment, but the claimant count rate is at its lowest level since 1975. Conditionality and sanctions have played a role in that, and it is only right that we continue to keep under review the policy of sanctions, and continue to work to do more, to do better and to provide the support to help people get back into work. That is why we have the new joint health and work unit, set up by the Department for Work and Pensions and the Department of Health between them, and why, during the autumn statement, my right hon. Friend the Chancellor announced a new work and health programme. That will come in in 2017 to support individuals with significant barriers to work and, in particular, help them to get back into work, through the welfare system, with support. Of course, universal credit is part of that. It gives people the help that they need to increase their earnings, move away from welfare dependency, and importantly, make sure that work always pays.

Thank you for chairing the debate this afternoon, Mrs Gillan, and I thank all hon. Members for their contributions.

Alison Thewliss Portrait Alison Thewliss
- Hansard - - - Excerpts

On a point of order, Mrs Gillan. I was going to say this in an intervention, but the Minister was not taking interventions. I wanted to correct the record on the person I mentioned who died. It was not suicide; it is actually a lot more sad than that. He died from diabetic ketoacidosis from not taking his insulin. He had no electricity for the fridge in which it was stored.