Oral Answers to Questions Debate
Full Debate: Read Full DebateStephen Timms
Main Page: Stephen Timms (Labour - East Ham)Department Debates - View all Stephen Timms's debates with the Department for Work and Pensions
(1 day, 22 hours ago)
Commons ChamberPathways to Work sets out reforms to stop people falling into inactivity. They include tailored employment support for people out of work on health and disability grounds, including those claiming personal independence payments, so that they can fulfil their ambitions like everybody else.
The Government say that their PIP reforms will help people into employment, but the Multiple Sclerosis Society says that 60% of sufferers believe those reforms will make it harder for them to find work, not easier. An estimate must have been made of what percentage of claimants will feasibly enter employment as a result of these reforms. Will the Minister share those figures?
This is a very important set of reforms, for exactly that reason—to make sure people do have the opportunity to move into work. One in five working-age PIP claimants were in work in March last year; we want many more to have that opportunity. We are going to improve employment support substantially, Connect to Work is being rolled out across the country this year, and there will be an additional £1 billion per year for employment support by the end of the Parliament. As the hon. Gentleman knows, the impacts of these changes will be set out by the Office for Budget Responsibility at the time of the autumn Budget, and there will be very big improvements for those who are intended to benefit from them.
Helping those who can work to find meaningful employment is an important way to tackle poverty among disabled people, but it will require investment in employment support programmes, incentives for employers to recruit disabled people and enforcement of anti-discrimination rules. Given the importance of these measures, is it not appropriate that Members are asked to vote on any changes to the benefits system only after all the information about the impact of the proposals has been provided?
My hon. Friend is right about the scale of the ambition and the changes that need to be made to deliver on it. Sir Charlie Mayfield is leading the Keep Britain Working review at the moment, looking at what more employers can contribute to those goals. We have committed an extra £1 billion a year for employment support, but we need to get on with the changes we have announced in order to ensure that the costs of PIP in particular are sustainable in the future, as it is very important they should be.
It is six weeks since the Government cobbled together an emergency plan for welfare cuts to rescue the Chancellor from the consequences of her job-destroying, economy-shrinking Budget, but we are still waiting for some information. Can the Minister tell the House how many more people will be in work as a result of these measures?
As I have just told the House, the Office for Budget Responsibility will publish its assessment in the autumn—that is what we said at the time of the spring statement. This is a very big programme; the commitment of an additional £1 billion a year to employment support will open up opportunities for a very large number of people, in the way that the new deal for disabled people did under the last Labour Government all those years ago. We want to get back to providing the support that people need. At the moment, 200,000 people who are out of work on health and disability grounds say that they could be in work today if they had the support they need. We are committed to delivering that support.
I look forward to the OBR’s report, and also to its assessment of the impact of the Employment Rights Bill. We know that many tens of thousands of jobs are going to be lost because of the national insurance rise, and we know from the OBR that because of the changes that the Government have introduced and the scrapping of the measures we were introducing, 16,000 fewer people will be in work and almost half a million more will be on long-term sickness benefits.
However, let me ask the Minister about disability benefits. Is he aware that half the number of people who receive PIP who have multiple sclerosis will no longer be eligible for that benefit under the plans that the Government are bringing forward? A quarter of people with cerebral palsy and three quarters of people with arthritis will also be ineligible. Is the Minister happy with that, and if not, what hope can he give the hundreds of thousands of people who are being abandoned that the Government will look after them?
The hon. Gentleman is completely mistaken. These changes will not take effect until November next year and following each claimant’s award review after that date. Who receives the benefit will depend on the outcome of the assessment at that time. As the hon. Gentleman will know, the view of the Office for Budget Responsibility is that about 10% of those who are currently claiming PIP will lose their benefit as a result of these changes—a much lower proportion than the one he has just referred to.
My hon. Friend raises a very important subject. Social security must always be there for those who cannot work. The changes announced recently to the rates of universal credit protect the incomes of those with the most severe lifelong conditions who will never be able to work. We will also guarantee that, for both new and existing claims, those in this group will not need to be reassessed in future. Those are baked into the Green Paper proposals.
I recognise my hon. Friend’s concern. We will engage stakeholders to consider the scope of the review before publishing terms of reference. In the review we will consider whether the assessment criteria effectively target the right people at the right level. We will look at the descriptors and consider the points allocated to them.
With 300,000 people set to be plunged into poverty through the proposals in the Green Paper and 700 families set to go deeper into poverty, will the Secretary of State advise how changes to PIP will ensure that people with disabilities are living their best lives?
The crucial thing is to improve the employment support for people who are out of work on health and disability grounds. As the hon. Gentleman knows, we have an ambitious programme, Connect to Work, which is being rolled out this calendar year, building up to an additional £1 billion a year in employment support by the end of the Parliament. At the moment there are 200,000 people out of work on health and disability grounds who say they would like to be in a job now, and could be in a job now, if they had the support they need. We are determined, through the changes, to provide exactly that support.
My hon. Friend is right that there are currently delays with the Access to Work scheme, reflecting the very large increase in demand and applications for it over the past year or two. We are making changes to speed things up. We are also, in the Green Paper, consulting on the future of the Access to Work scheme. I would really welcome input from my hon. Friend, and perhaps her constituent as well, about the changes we should be making.
My hon. Friend raises an important matter. I just point out that the April 2024 one-year local housing allowance increase has cost an additional £1.2 billion in the last financial year, and it will cost about £7 billion over five years. We keep local housing allowance rates under review. He is right to stress the importance of those, but future decisions on them will need to be based on the Government’s priorities and reflect the difficult fiscal conditions that the Government are dealing with.
The hon. Gentleman is right that there has been a problem over a long period with overpayments—often inadvertent—of carer’s allowance. That is why my right hon. Friend the Secretary of State appointed Liz Sayce to undertake her independent review. I know she is making good progress, and I have regularly kept in touch with her. We are looking forward to receiving her recommendations, which will cover those who have been affected, and will recommend changes for the future, too.
What analysis has been done of how the changes proposed in the “Pathways to Work” Green Paper will affect those who rely on PIP not just for employment support, but for their daily living and mobility needs? Can my right hon. Friend please assure my constituents in Wolverhampton West who are disabled and will never be able to work that their financial support will not be restricted in a way that affects their quality of life, so that they can live with independence, and the dignity that they deserve?
That is an important concern. As my hon. Friend knows, we are determined to open up opportunities for people who have been out of work, often for a long time, on health and disability grounds, and to give them the chance to get into work through much better employment support. However, we recognise that there will be people who will never be able to work. Under the proposals for claims for the new universal credit health element, from next April, a higher payment will protect those with the most severe lifelong conditions that have no prospect of improvement, and who will never be able to work. Eligibility for that will be through the work capability assessment conditions criteria.
How is the Minister working with the Department for Education to ensure that when young people leave education, they have the skills they need to thrive in the world of work?
Recent analysis by Health Equity North shows that more than £13 million will be stripped out of the local economy in the City of Durham every year due to PIP changes. That comes on top of the already worsened health conditions for people in the north-east due to Tory austerity. Would it not be more constructive for the Government to start by listening to the calls of disability groups and disabled people, and supporting them into work, rather than cutting the benefits first and pushing those people further into poverty?
I can reassure my hon. Friend that we are listening. We are consulting precisely on how best to deploy the additional £1 billion a year for employment support that we have committed to in the Green Paper. However, the assessment of those measures needs to take account of the significant impact that supporting many more people into work will have on reducing poverty.
My constituents are extremely concerned about changes to the PIP assessment system, and particularly how they will affect people with mental health issues and fluctuating long-term conditions. Those people may not be able to show the required evidence of how their ability to function is impacted, since their experiences do not always fit within the daily living and mobility assessment criteria. Can the Minister assure me that the assessment system will be updated to take those genuine challenges into account?
What steps is the Secretary of State taking to ensure that the financial reparations that will be made to LGBT veterans following the Etherton review are not taken into consideration when assessing entitlement to other benefits?
There is an issue with compensation payments more widely, and the right hon. Gentleman gives an example of a current case. We are looking at how we can ensure that people who receive those payments are protected.
South Shields will be the 15th most negatively impacted constituency if the Government’s proposed welfare changes go ahead, yet there are no in-person consultation events in the north-east at all. Can my right hon. Friend please rectify that?
My hon. Friend raises an important point. I recognise that there is a good deal of concern at the moment, and we want to ensure that people respond fully to our consultation set out in the Green Paper. We have said clearly in the Green Paper that we will ensure that those who will never be able to work will not go through repeated reassessments. That will be built into the system. Initially, the people who will benefit from that will be those who meet the work capability assessment’s severe conditions criteria.
Today is World ME Day, and I hope that the Secretary of State and her Ministers will recognise the up to 1.3 million people who live with ME and ME-like symptoms, and some of those with long covid. All they want is to have a normal life. I recognise what she has said about making PIP work for fluctuating conditions. Can I ask her to work with her colleagues in the Department of Health and Social Care to put aside research funding, so that money is available to ensure that those who would love nothing more than to live a normal life and go to work can get better?
The Middlesbrough Disabled Supporters Association does vital work to support disabled Boro fans, but it is currently being hammered by increased bank charges. Will the Minister for Disability work across Government to help take these banks to task so that non-profit disability groups such as the MDSA can continue their important work?
I am aware that there are concerns along those lines across the charity sector as a whole. I would be delighted to work with my hon. Friend to address the concerns in Middlesbrough specifically.