Select Committee on Work and Pensions Minutes of Evidence


Examination of Witnesses (Questions 20-39)

MR LEIGH LEWIS, MR ADAM SHARPLES AND MR PHIL WYNN OWEN

28 MARCH 2007

  Q20  Chairman: The point is that it is only official error where you actually pay money out, it is not official error where you deny people money wrongly. Perhaps you need to review that.

  Mr Sharples: Official errors can result in underpayments as well as overpayments.

  Q21  Miss Begg: I have a couple of questions about the subject of disability, not that I am being stereotyped you understand. According to the figures with regard to your target of hitting 75% awareness of the DDA (Disability Discrimination Act), as far as I can see it is actually going backwards and fewer people know about the DDA than did in October 2004, yet you hope to get to 75% by 2008. What are you doing about that?

  Mr Lewis: It is fair to say that we have a further set of data in this area, unlike the area I was discussing with your colleague, since the report was published and it is more encouraging but it does not in any way negate your question. Our most recent four month figure for the four months from September 2006 to January 2007 showed that awareness has risen from 71.8% to 72.9%, which is an encouraging move but it is still below the baseline, as you said, and it is still not at 75%. In truth, this is quite a blunt instrument of a measure because it is simply based on one question in an ONS omnibus survey. What we are trying to do in relation to this is making people aware, not so much of the Act itself because the Act in a way is merely the vehicle, but of the rights that emerge under the Act and the rights people have. For example, of fundamental importance has been the establishment within our Department—but it is a cross-Government unit—of the Office for Disability Issues, about which I am sure you will be aware and there is the requirement now on all public bodies as from last December to produce disability equality schemes and we have run various awareness-raising campaigns as I am sure you will know, targeted particularly at small and medium enterprises which we did in the first half of 2006. The latest kind of evidence we have got from that is that we are seeing awareness rising, but looking at this target in the round I think what we are trying to do is to not simply make people answer yes rather than no to a question in a survey which, as I say, in the end tells you something but perhaps does not tell you a huge amount, but actually are we making the lives of people with disabilities better through the help that they are receiving and the rights which the DDA now gives them.

  Q22  Miss Begg: Do you have any data with regard to disabled people themselves, as to their awareness of their rights and what protections they have under the law, given the most recent introduction of the equality duty?

  Mr Lewis: My understanding is that the data do not cut down to that amount of detail, but if I find when I am back in the Department that I am wrong about that then I will certainly write to the Committee, but I do not think we have that.

  Q23  Miss Begg: That is obviously your key target group, the disabled people themselves, and also the service providers.

  Mr Lewis: Yes.

  Q24  Miss Begg: I still find a level of ignorance among service providers because their knowledge of the legislation is simply wrong, they think what is expected of them is either far more or indeed far less than reality, so have you got any plans to target your awareness-raising more subtly I suppose?

  Mr Lewis: Yes, and a key responsibility of the Office for Disability Issues and of the Department as a whole is very much to go on raising awareness. It is worth saying—and perhaps if you would find it useful I will most certainly let the Committee and of course yourself have a copy—we have just published a research report in our DWP research series, it only came out on 1 March, which has been looking precisely at DDA awareness by both employers and by providers of goods and services. That has actually been rather encouraging; for providers of goods and services, it shows that awareness has doubled since 2003, so we do seem to be making some serious headway but that is not for one moment to say that there is not further we need to go.

  Q25  Miss Begg: You obviously work in conjunction with the DRC (Disability Rights Commission) in raising awareness; can you foresee any problems when the DRC becomes part of the CEHR (Commission for Equality and Human Rights) and perhaps the focus on disability is diffused in some way?

  Mr Lewis: I may defer to my colleague Adam Sharples in a moment. It is an important transition and I know that actually the CEHR themselves are absolutely very concerned that there should be no loss of focus on disability, just as there should be no loss of focus on any other individual strand of equality when the new commission is established. Indeed, I have met myself, only in the last couple of weeks, with the new chair of the disability committee for the CEHR and we have discussed precisely that. I am confident that actually the CEHR ought to provide a wider framework and a broader home for disability issues, but I know the chair of the CEHR and its commissioners are very seized of this issue and we as a department are ourselves.

  Mr Sharples: To add to what Leigh Lewis has been saying on this, you are absolutely right to raise the issue. It must be a risk as you transition from one institutional structure to a new structure, particularly one in which equality issues will be dealt with more comprehensively, that the focus on individual strands of disability could get lost, so this is part of our job, working through the Office for Disability Issues, to make sure that that does not happen. We have very close relations with the Department for Communities and Local Government who are leading on equality issues, working very closely with them, with the DRC and with the emerging CEHR to try and make sure that does not happen.

  Q26  Miss Begg: You obviously have your own disability equality scheme action plan as you are obliged to do under the new legislation as a department, but does your department take any responsibility for ensuring that other Government departments have a good, robust, equality duty scheme in place? If not, why not and who should?

  Mr Lewis: Yes, it is me and I have and probably still not enough. In the run-up to last December and some months before when it was important that of course we were concentrating on trying to produce some very good schemes because we believed we had to be an exemplar for our own department, I wrote to all of my fellow permanent secretaries to make sure that they were personally aware that this duty was coming towards them and to say to them, if they were not already personally involved—and actually I was encouraged that a large number were—that I thought it would be a good subject for their personal attention. We had a discussion of that at one of the meetings that, if I was not at this Committee this morning, I would be at, the Wednesday morning meeting of permanent secretaries. Yes, I have taken action myself to try to make sure that that awareness is shared.

  Q27  Miss Begg: It might be too early, I realise it is only a couple of months since the duty came in, but are you aware that there will be some kind of almost seismic shift in the attitude of civil servants and public bodies into the way that they treat people with disabilities or they factor the fact that a large proportion of the population has a disability into their planning and their policy decisions?

  Mr Lewis: Again, Adam may well be able to say more and better than me, but you are right to say that it is a seismic shift because this is not about having a policy and then thinking oh gosh, will this policy work with someone with a disability, it is about having that as an absolute key ingredient at the point where the policy is being conceptualised, developed, detailed, put into operation. This is bringing the notion of ensuring that our policies are fit in every respect into the heart of the process.

  Mr Sharples: Indeed, and we have been working hard with other departments on this. As Leigh Lewis was saying, he has discussed this with other permanent secretaries; I have taken meetings with other departments to discuss how we embed this in policy-making, so we have been trying to raise awareness in departments in that way. You used the word seismic, is there a seismic shift; I think this is going to be a bit more gradual but I detect a real change, but if I could just give one example of that, in our department the process of involving disabled people in working up our action plan for disability equality has thrown up a whole series of issues on which it is fair to say awareness was too low before. We have become much more conscious of issues around the way services are delivered and this is really fed back into our consideration of the design of services and the design of policy. I can see the impact it is having on us and we are working hard to make sure that other departments are going through that same process.

  Q28  Miss Begg: Have you succeeded then in making all your information easy for disabled people to access, which was one of your key targets in your own plan?

  Mr Lewis: We have done well, but not well enough. I am pleased to say that we have just had the first response from the DRC to our own disability equality scheme, and they have congratulated us on it. They thought it is a good scheme with a great deal in it which they welcome, but it would not be the real world if they had not also pointed out some areas where they think the scheme could go further or does not go far enough. In terms of our own provision to our own customers, we have done a lot. We completed a major programme across all of our premises in March 2005; every one of our sites is subject to an annual accessibility audit, we believe the great majority are fully compliant, but in an estate the size of ours it is difficult to be utterly 100% compliant in every single instance on every single day, but we have put enormous importance on that. We built DDA compliance into the design criteria for our new Jobcentre Plus offices from the outset and we have recently begun a major accessibility audit of all our IT systems, so we are looking at all of our IT systems and looking at the accessibility of those. Again, without going into a very long list we have looked very, very hard at our communications materials. You may have seen some of those which our Disability and Carers Service produced and they are absolutely leading edge in terms of the number of formats—very large text format, Braille format and so on—that we now use.

  Miss Begg: I may have a question when we come to questions on crisis loans about the use of phones and things, but I will leave that for now.

  Q29  Greg Mulholland: Some questions on child poverty; first of all you are meeting your targets on childcare places, but would you agree that the unaffordability of childcare is still a major factor in dissuading some coupled and lone parents from working?

  Mr Lewis: Of course, there is a great deal of support for childcare now, particularly within the tax credit system where parents can claim help with childcare costs up to £175 a week for one child and up to £300 for two or more children. Adam, I wonder if you might like to go into a little bit more detail on this.

  Mr Sharples: As you say, the availability of childcare places, formal childcare places, has been expanding rapidly in the last few years. Numbers have pretty much doubled in the last 10 years and are now up to very nearly 1.3 million, so running rather ahead of the target. That has been a success and, as Leigh Lewis has said, the support for the costs of childcare has also been expanded rapidly, in particular through the childcare cost element of the working tax credit. The financial support through individual support for parents, combined with the money going in through Sure Start where there is nearly £2 billion a year going into children's centres and other forms of support for parents, amounts to pretty much a revolution in Government support for parents and for childcare.

  Q30  Greg Mulholland: You mentioned Sure Start but of course the DWP and the DfES have delegated Sure Start to local authorities, so how can the Department be sure that there are enough childcare places available to support the Department's lone parent employment and child poverty targets?

  Mr Sharples: We do this by having what we call a childcare partnership manager in Jobcentre Plus, so each district of Jobcentre Plus has a childcare partnership manager whose job it is to liaise with the local authority to make sure that sufficient childcare places are available. As you may know, the Childcare Act last year places duties on local authorities to consult with Jobcentre Plus and the feedback I get is that this relationship is working really well and Jobcentre Plus, through the childcare partnership managers, has good relationships with local government.

  Q31  Greg Mulholland: Lisa Harker's report in 2006 said that the Department was not yet working as closely as it needed to be with local authorities. Is that something that the Department has acknowledged and is addressing?

  Mr Sharples: As I said, through the childcare partnership managers—we have 60 of these, one in each of the Jobcentre Plus districts, and they are the focus for that communication. Obviously, some of the provisions of the Childcare Act have not yet come fully into force, so this is a developing story, but this combination of availability of formal childcare places, which is running well ahead of target, the support through Sure Start and through helping to meet childcare costs, combined with our programmes for lone parents and the further steps we are taking to support parents in general, we feel really is making a difference here.

  Mr Lewis: If I could just add one thing to that to generalise it slightly, if one wanted to caricature our department at its origin and perhaps its predecessor departments, relationships traditionally, historically, with local authorities were probably not the strongest. Its predecessor departments tended to operate on a kind of national rather than place-based way. That has changed out of all recognition actually in recent years and we tend now to be very, very much involved at local level with local strategic partnerships, in the building up of local area agreements and on the whole place-based agenda, and although obviously childcare and its provision is only one element of that, by and large now this is a department that is at the table locally, whereas if you go back some years it was not always so.

  Q32  Greg Mulholland: Thank you. Turning to the Budget, do you think the extra funding announced in the Budget for working tax credit and extended schools will actually be enough to help achieve the 70% lone parent employment target?

  Mr Sharples: The first thing to say is that we have been making really good progress on lone parent employment over the last nine years or so; the proportion of lone parents in work has gone up by about 11 percentage points from around 45% to around 56%, so the trend has been strongly upwards. We feel that has been achieved through a combination of factors: partly the support for lone parents in looking for work and partly the financial incentives through the working tax credit, through helping to make work pay through the minimum wage and other factors. What has happened in the Budget is that building on the progress that has been made- providing additional support for parents in general, particularly low-paid parents and therefore improving the incentives to move into work- the Treasury's estimate is that the measures in the Budget will take about 200,000 children out of poverty.

  Q33  Greg Mulholland: It has been acknowledged that the 70% lone parent target is a very ambitious one; do you think with the extra funding that the Department is still on course for that?

  Mr Sharples: We have got a strategy here which is built on Lisa Harker's report last autumn, we have had David Freud's report earlier this month and yesterday, as you may know, we published our own child poverty strategy. That sets out a number of the measures that we are adopting, building on what is in the Budget, to try and further increase the rate of employment for lone parents and further reduce the numbers of children in poverty. For example, the measures announced in the Budget provided for extending the in-work credit—this is the £40 a week payment for the first 12 months when a lone parent moves into work—to June 2008. It is being increased from £40 a week at the moment to £60 a week in London, and it is worth remembering that this is a payment that comes on top of tax credits and other payments so there is a real financial incentive for lone parents to move into work. The Treasury also announced funding for an extra 50,000 additional free childcare places for workless parents, as well as the measure on tax credits. Within our own strategy document we have indicated that we think that further steps need to be taken on the balance of rights and responsibilities. As you may know, David Freud's report proposed that the age of the youngest child at which a lone parent qualifies for income support, which is currently 16, should be brought down and our own strategy document indicates that we think this is the right direction of travel. Building on the measures in the Budget, our own strategy document adds further measures. Precise quantification of the full impact of this is a little difficult at this stage because we are still consulting on David Freud's report and ministers will want to take a view in the light of that consultation as to how far and how fast to move on some of the things that David Freud has recommended.

  Q34  Greg Mulholland: You mentioned the lone parent in-work credit in London; what impact specifically do you think that will have on lone parent employment rates in London itself?

  Mr Sharples: It will have a positive effect; quantifying precisely how big that positive effect will be is a little difficult. In-work credit is a programme which is still being piloted; it applies in about 40% of the country at the moment and we have just published a first evaluation of the impact that it is making, so it is at a very preliminary stage and it is difficult to draw firm conclusions at this stage about precisely what the quantitative impact will be. We expect to have a further evaluation early next year and that should give us a sounder basis on which to draw conclusions.

  Q35  Greg Mulholland: Thank you. My final question to you, yesterday's households below average income figures were published for 2005-2006 of course, showing a rise of 100,000 in the number of children living in relative poverty compared to last year and I know that there have been some explanations given for that. My question is does this mean that actually the Government will fail to meet its 2010 target and what action is the Department going to take to address this rise?

  Mr Lewis: It does not mean that and as ministers said yesterday it leads them to wish and us to wish, working and supporting them, to redouble our efforts on this front. Clearly, Adam has set out a number of the measures that were taken or announced in the Budget, within our own strategy document yesterday which I appreciate members are unlikely to have had time to read in any depth, but there is a really very wide-ranging programme of further measures set out as well as the measures that we already have in place. This remains an ambitious target, but it is a target to which we are absolutely committed.

  Q36  Chairman: Can I take you back to this employment rate where you said the lone parent employment rate has gone up by 9 or 10 points; the fact is it has not shifted in London, it has stayed flat, so I want to take you back to this question of the costs of childcare. Yes, tax credits pays a percentage, but only up to the limit of £350 and £350 does not get you childcare in London for two children so you have to fund 100% of the amount over that and 30% of the amount under it, so you are asking people to find around about £100 a week, perhaps. That is not much of an incentive to move into work. The in-work credit is very welcome, but the evidence that we got in our inquiry on the employment target was you need to do much, much more in London around childcare. What you have said today is that there are no plans to do anything specific on child care in London, is that right?

  Mr Sharples: I do not think that is right, I have not said there are no plans to do anything and in fact as Leigh Lewis has indicated there are a wide range of measures in our child poverty strategy document. If I could just indicate one that addresses the specific issue you raise; one of the propositions is that in London there should be financial support for upfront childcare costs because our research has suggested that one of the obstacles for lone parents moving into work is that many nurseries or childcare providers ask for payment upfront for perhaps the first month's fees and for many lone parents this is a difficult lump sum cost to find, so we are going to be providing support to meet those upfront costs in London.

  Q37  Chairman: Is that 100% support?

  Mr Sharples: I believe it is 100% support; no doubt there will be a threshold and we will need to work through the precise details, but this will be support for meeting the upfront costs of moving a child into childcare, which is something which is going to be done in London, precisely in response to the concerns that you raise.

  Mr Lewis: One of the most notable things actually about our own document yesterday and the Budget is that there is a real recognition that this is an area where there are some special London issues. For example, another proposal is that the new deal for lone parents plus as we call it, which is a kind of enhanced version of the new deal for lone parents, will be expanded to cover all lone parents in London. Of course, Adam has mentioned the additional in-work credit which will be £60 in London compared with £40 elsewhere, that is self-evidently as a piece of mathematics worth £1,000 a year to someone who is going into work for a year. This is a non-trivial amount on top of the other in-work benefits to which they will very often be entitled, so there is a recognition on our part that London has some special needs in this respect.

  Q38  Chairman: We await with interest your response to our excellent report that makes some very good suggestions. Can I move on the Jobcentre Plus performance analysis? How well do you think the mystery shopper programme measures customer service and satisfaction?

  Mr Lewis: It is one element in measuring it. The chief executive of Jobcentre Plus, Lesley Strathie, who I know has appeared before the Committee and only recently was here, she would herself say that this is only one element in their overall attempt to understand the satisfaction, wishes of their customers et cetera et cetera, and of course they undertake other ways of measuring customer satisfaction, including through surveys. It is one way, it is a pretty kind of rigorous programme, it is pretty widespread, it involves quarterly visits to every Jobcentre Plus office, it involves telephone calls to each Jobcentre Plus site and contact centre four times a quarter and its great advantage is that its sort of evidence-based results emerge in terms of what happens when the people carry out the programme. Of course, it is carried out for Jobcentre Plus by an external contractor so it is not Jobcentre Plus staff acting as judge and jury in this respect, and when they make those calls or make those visits they experience what it is like to be a customer. Overall, Jobcentre Plus is doing well this year. The latest performance is just over 84% against an 84% target. It is a weighted measure, as I am sure you know very well indeed, but I think it is an important measure. It is not the only basis on which Jobcentre Plus or we as a department, as the parent department for Jobcentre Plus, seek to measure its customer service.

  Q39  Chairman: Sticking with this mystery shopper programme, is it not invalidated when staff have all the scenarios on their desk?

  Mr Lewis: There has certainly been some discussion of this as to whether people are given an idea of what a mystery shopper may be shopping for. As someone who was the first chief executive of Jobcentre Plus and the chief executive of the then employment service before that, which also had a mystery shopper programme, no. It is a bit more canny than this. It is not remotely easy to know if the person who is on the telephone or who has just walked through the office door is a mystery shopper. It is a bit like the person from the restaurant guide. Maybe the very, very canny restaurateur can spot the individual but I do not think it is that easy. I think this is a pretty genuine test of what it is like and the service you receive.


 
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