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, 23 hours ago)
Commons ChamberThe Office for Budget Responsibility forecast in March that incapacity and disability benefits spending would be £90.7 billion in 2029-30. That figure will be updated at the Budget. Better employment support and removing perverse work incentives in universal credit are the key to getting more people into work.
Just two months ago, the Secretary of State was left humiliated after being forced to significantly water down her botched welfare Bill. If the Government had pressed ahead with the Bill as originally drafted, how much less would taxpayers be spending on benefits by 2030?
As I have said, the OBR will update its forecast at the time of the Budget. We inherited a terrible situation, with record numbers of economically inactive people. Economic inactivity is down since the election, and employment is up. Those developments have been encouraging, but our reforms will go much further. The £3.8 billion that we are investing in employment support for people out of work on health and disability grounds—the biggest package ever—will be key.
Does the Minister agree that we must invest in community mental health services if we are to reduce spending on mental health disability?
I very much welcome the NHS 10-year plan published by our right hon. Friend the Health Secretary, which gives a new priority and commitment to mental health support. I agree with my hon. Friend that that is an important part of tackling the problems that we need to resolve.
It is good to see the Minister back after the break, but I am sorry to hear that there are still no plans to reduce spending on personal independence payments. He has said that he is collaborating with people who would not be working with him on his review if there were to be any reductions in the levels of benefit or eligibility. Given that veto on cuts to PIP, I implore him again to consider the benefits to which PIP is a gateway, such as Motability, disability premiums, council tax discounts and blue badges. Will he promise at least that those entitlements could come down?
We have made it clear that we will co-produce our review of the PIP assessment with disabled people and representatives of disability organisations. The review will cover the assessment for the mobility component, which leads on to the Motability scheme, and other entitlements to which PIP is a gateway.
But with no possibility of any of those entitlements coming down or any of the spending being reduced? We have 1.25 million foreign nationals claiming universal credit, most of whom are not in employment. I hope that the Minister does not plan to co-produce his plans with foreign nationals—although, knowing Labour lawyers, I expect they will say that the European convention on human rights demands that they do just that. Does he think that subsidising more and more foreign nationals is what the British social security system is for? If not, will he restrict sickness benefits to British nationals only, as we have argued for?
It is crucial that we have a fair system. We are reviewing universal credit at the moment, considering problems such as the five-week wait that was inserted when universal credit was introduced and changes to ensure that universal credit effectively tackles poverty and does the job that we need it to do. Fairness will be at the heart of the system.
The PIP application process is outdated and can be very difficult to navigate. The health transformation programme will deliver radical improvements and much better efficiency.
In my constituency, I was contacted by a woman who had suffered two strokes, resulting in permanent right-side paralysis and ongoing mobility difficulties. Despite her condition being permanent, she has had to undergo reassessment for PIP and has appealed for it to be reinstated. I welcome the Government changing the reassessment requirement for people with long-term health conditions. Will the Minister clarify what steps the Government are taking to reduce the stress and difficulty of the PIP application process for people with those serious health conditions?
The health transformation programme that I mentioned will allow the introduction of a modern digital service, which is certainly not how the existing arrangements could be characterised. It is a big job—the programme will run until 2029—but the outcome from it will be a process that is simpler and easier to understand, which I hope will reduce the stress to which the hon. Member has rightly drawn attention, and shorten decision times.
Over the summer, I have been doing a deep dive into children with special educational needs and disabilities, not least the transition points between education and work. As part of the Timms review—the Minister’s own review—will he ensure that that interface is looked at, so that there is a smooth transition for young people, as opposed to the cliff edges that many of them face when making the transition into work?
The review will look specifically at the PIP assessment, but one proposal in our Green Paper published earlier this year was increasing the age of transition from DLA to PIP from 16 to 18. I think that that change could assist with the concern expressed by my hon. Friend. We are looking at the consultation responses that we have received.
We will increase the number of face-to-face, rather than remote, PIP assessments, and will increase the number of health professionals in assessment centres in order to deliver that. I think the hon. Gentleman will agree, however, that it is important to keep telephone or video alternatives for those who need them.
Many West Dorset constituents have written to me with deep anxiety about the assessment for personal independence payments, and especially the use of remote assessments. One constituent, despite previously being awarded enhanced PIP, has endured months of repeated phone assessments, which have triggered severe panic attacks and high blood pressure, and caused lasting psychological harm. The Secretary of State has given me a commitment to moving away from phone-based assessments, so what additional resources will be made available to support the roll-out of more face-to-face assessments in West Dorset?
There was a switch to remote assessments in the pandemic, for obvious reasons, but my right hon. Friend the Secretary of State has made the point repeatedly that, as was said in the “Pathways to Work” Green Paper, we want to move sharply back to face-to-face, while keeping alternatives for those who need them. I am sure the hon. Gentleman will have spoken to people for whom the prospect of going to an assessment centre provokes the kind of anxiety that his constituent experienced as a result of a telephone call. We are speaking to the assessment providers, and we have already increased the proportion of face-to-face assessments. That work will continue.
The Government are right to want to see more people with disabilities and long-term sickness get into work. Sadly, this was used to justify the savage cuts to benefits that were proposed earlier this year. My colleagues and I are hearing reports of cuts to current awards through Access to Work, and to new payments, being done by the back door. Can the Minister cast any light on whether guidance has been given to civil servants on such cuts?
There has been no change at all to policy on Access to Work. As the hon. Member knows, we did consult, in the Green Paper earlier in the year, on reform to Access to Work. There has been a big increase in demand for it, and reform is needed. We are looking at the consultation responses at the moment. There may have been instances in the past where the published guidance was not always properly applied. It is being applied now, and that may give rise to some of the issues that have been drawn to his attention, but there has been no change at all in the policy.
We have set up a panel of experts to advise us on how best to improve employment prospects for people with autism and neurodivergence. As the right hon. Member knows, we will be undertaking a review of the PIP assessment, co-producing it with disabled people, so that we have a clear way forward for who should and who should not be entitled to the personal independence payment.
The carer’s allowance overpayments review was due to report in early summer. It is now 1 September. In recent weeks, I have become aware of a case where the DWP has informed somebody that they now owe it £18,000. That is a scandal. When will the review report back?
We have received the report from Liz Sayce, and I want to thank her very much for her review of earnings-related overpayments of carer’s allowance. We are currently considering the findings. We are, as the hon. Lady knows, making a number of changes. We have increased the earnings threshold for carer’s allowance in a way that I think will help avoid these problems in the future. We are looking at the possibility of a taper on carer’s allowance. We will come forward, before very long at all, with both the report and the Government’s response to it.
As someone who proudly served the trade union movement for two decades before entering this place, I warmly welcome the Government’s improvement to workers’ rights. Will the Minister set out what steps are being taken to ensure that no one is left behind in the vital reforms to statutory sick pay?
I was delighted to see the establishment of the disability advisory panel a week or so ago. [Interruption.] I am so sorry, Mr Speaker; I have a cold. How will the advisory panel link with the co-production in the Timms review?
I am grateful to my hon. Friend. We have announced that Zara Todd will be the chair of the Department’s disability advisory panel. The panel was announced in the “Get Britain Working” White Paper last year. Separately, we will set up a group to work with me on the review of the PIP assessment. I will, of course, talk to the disability advisory panel about the arrangements, but they will be separate structures.
Despite his new role in riding to the rescue of the Treasury, is the Pensions Minister still available to fulfil in principle the undertaking he gave me before the recess to have a meeting about the plight of ExxonMobil pensioners and the difficulties in them getting the discretionary surplus benefits to which I think they should be entitled?