The
Committee consisted of the following
Members:
Chairman:
Mr.
Gary Streeter
Baron,
Mr. John
(Billericay)
(Con)
Barrett,
John
(Edinburgh, West)
(LD)
Flello,
Mr. Robert
(Stoke-on-Trent, South)
(Lab)
Harper,
Mr. Mark
(Forest of Dean)
(Con)
Jones,
Helen
(Warrington, North)
(Lab)
Kawczynski,
Daniel
(Shrewsbury and Atcham)
(Con)
Keeble,
Ms Sally
(Northampton, North)
(Lab)
Kidney,
Mr. David
(Stafford)
(Lab)
Main,
Anne
(St. Albans)
(Con)
Mason,
John
(Glasgow, East)
(SNP)
Milburn,
Mr. Alan
(Darlington)
(Lab)
Moffatt,
Laura
(Crawley)
(Lab)
Moss,
Mr. Malcolm
(North-East Cambridgeshire)
(Con)
Munn,
Meg
(Sheffield, Heeley)
(Lab/Co-op)
Shaw,
Jonathan
(Minister for the South
East)
Twigg,
Derek
(Halton) (Lab)
Sarah
Thatcher, David Weir, Committee
Clerks
attended the
Committee
Third
Delegated Legislation
Committee
Tuesday 10
March
2009
[Mr.
Gary Streeter in the
Chair]
Social Security (Incapacity Benefit Work-focused Interviews) Regulations 2008
10.30
am
John
Barrett (Edinburgh, West) (LD): I beg to
move,
That
the Committee has considered the Social Security (Incapacity Benefit
Work-focused Interviews) Regulations 2008 (S.I. 2008, No.
2928).
I
am sure that when the Minister replies he will be able to respond to a
lot of our concerns, because the Government believe that there are
serious issues to be addressed.
Let me say
at the outset that my hon. Friends and I have no problem with asking
people to participate in the work-focused interview process to ensure
that those who are not entitled to claim do not receive benefits.
Although we are not talking about a straightforward transfer of funds,
every penny that is paid to someone who is not entitled to claim means
that there are fewer resources for those who genuinely deserve to make
claims. That said, my hon. Friends and I have serious concerns about
the proposals for work-focused interviews.
Let me list
the groups that will take part in these interviews: those making a
claim for or entitled to employment and support allowance; those who
are on or making a claim for claiming incapacity benefit; those
applying for or receiving income support; and those who are on or
applying for severe disability allowance. We have many concerns about
specific groups and specific issues, which I will highlight.
Given that
the changes are being introduced, however, it is worth touching briefly
on the current employment situation. The provisions covering claimants
are being tightened up and are expected to be stricter, with 10 per
cent. fewer people going through the process, but unemployment is
rising to 2 million, and expert predictions suggest that it will go on
to 3 million. In my constituency, the Royal Bank of Scotland and other
banks are major employers. RBS has announced 2,300 redundancies, and
its chief executive has confirmed that 20,000 job cuts may happen in
the year ahead.
Many people
will therefore be forced on to the job market and forced to make
claims. Many of them will enter the system for the first time. What
they and we expect is a fair and equitable system, in which people get
what they are entitled to. People should not have to go through a
system that is inappropriate or which does not give them a fair deal at
the end of the day.
Let me touch
on a briefing that the Child Poverty Action Group supplied for
todays debate. It gives specific examples showing how the basic
amount for claimants under the new system will not be protected in the
same way as it is for other claimants. The basic amount for all ESA
claimants, regardless of age, is £60.50, and the
minimum income guaranteed for an ESA claimant from 14 weeks onwards is
£84.50. No sanction for failing to attend a work-focused
interview can be applied until that extra component has been awarded to
a claimant at the end of the assessment phase.
No such
protection is offered to incapacity benefit or income support claimants
under the new scheme. The structure of the different regimes is such
that, in normal cases, a person will have to receive incapacity benefit
or income support for a full year before their benefit is equivalent to
the £84.50 that ESA claimants receive after 14 weeks. However,
there are no rules under the new system to provide that an incapacity
benefit or income support claimant cannot have a sanction imposed on
them before their benefit has been increased to that level or that they
must be left with at least £60.50 per
week.
There
are several examples in the Child Poverty Action Group briefing, and
the Minister no doubt has access to it. I have seen at first hand in my
constituency, as other hon. Members have no doubt seen in theirs, that
people have had to go through interviews to establish whether their
invalidity is genuine or their health conditions are what they claim
they are. A lot of people who make claims do their best at those
interviews to show that they can walk the required distance or that
they are up to the mark. An example from my constituency involved an
18-year-old boy who had had part of his leg amputated below the knee.
He had a partly artificial leg and was determined to carry on and go to
university so that he would be no different from the rest. At his
interview he was determined to walk the distance he was asked to. His
mobility allowance was then cut. He came to me because his new
circumstances meant that he might not be able to carry on at
university.
For some
other individuals or groups perhaps a home visit could be the option.
For instance, pregnant women will not be in the exempt groups for
work-focused interviews, but I am concerned about pregnant women who
face the risk of serious damage to their health if they must attend, or
people receiving or recovering from certain types of chemotherapy, or
people with specific diseases or disablement. No doubt it will be
possible for the Government to win the vote on their legislation, but I
ask the Minister to say that people will get a fair hearing.
In the past,
many people have had the decision that was made at their initial
assessment reversed on appeal. Currently 25 per cent. of decisions are
reversed on appeal, which means that the wrong decision was made. Many
of those who win their appeal must live on reduced benefit for weeks or
months. Some of the reduced amounts are below the poverty line. I
understand that the Government want to move forward. The times have
changed and many people are concerned that these are not the times to
make the necessary changes, when more people are being thrown into
unemployment and the job market.
I ask the
Minister to address my concerns and those of the Child Poverty Action
Group. How is it proposed to deal with the groups that do not have
exemptions? When people are asked to their work-focused interview and
do not attendand there are sanctions for that, which may be
justified in many casesthe duration of the sanction will depend
on the Department for Work and Pensions arranging a new interview, if
the person
has been brought into line, as the Minister might think. In a matter
that relies on the efficiency of the DWP, I hope that the Minister can
assure us that people will not have to wait too long to get the fair
deal they deserve, if they are unemployed, or on incapacity benefit or
income support, or are disabled.
10.38
am
Mr.
Mark Harper (Forest of Dean) (Con): It is a pleasure to
serve under your chairmanship, Mr. Streeter. It is worth
saying at the start that the regulations have already come into force,
on 15 December. Despite a prayer having been tabled before Prorogation,
the slightly less speedy ways of this place mean that we finally get
round to debating them in
March.
It
was interesting to study the explanatory memorandum prepared for the
regulations. The original draft, explaining their purpose, was
commendably brief, and I congratulate the Minister on that. It was a
mere 31 words, explaining that the purpose of the instrument was to
avoid the need to operate two regimes, and that the Government had
decided to align the requirement for incapacity benefit claimants to
participate in work-focused interviews with employment and support
allowance.
Unfortunately,
the memorandum did not stay as brief as that. The revised explanatory
memorandum is four times longer at 116 words, and pretty much says the
same thing in a more complicated way, as far as I can tell. The
Minister and I have had this conversation about simplicity before, when
debating the Welfare Reform Bill. In that exchange he said that because
the lives of the Departments customers were getting more
complicated, the regulations must get more complicated too. I do not
think that explanatory memorandums should fall into that category.
Brevity and clarity are welcome. That is my message for the future:
shorter and clearer is better, on the
whole.
The
purpose of the regulations remains unclear. The first explanatory
memorandum said that their purpose was to avoid the need to operate two
regimes, but I am not entirely certain that that can be the case.
Unless everybody on incapacity benefit who must have a work-focused
interview falls under the new regulations, there will still be two
regimes. Will the Minister explain how many people currently on
incapacity benefit he expects the new regulations to apply to?
Information from the DWPs research suggests that the number of
incapacity benefit claimants who move from incapacity benefit into work
and then back on to incapacity benefit is significant, at about 18 per
cent., which indicates that we should expect a similar number to fall
under the ambit of the regulations. It would be interesting to know how
quickly he expects people to transfer
over.
There
are three main areas in which the regulations differ from the previous
set. First, precise timings for work-focused interviews are no longer
set out in the regulations; more flexibility is allowed. Secondly,
work-focused interviews can now be deferred, although not waived
entirely. Thirdly, as the hon. Member for Edinburgh, West said, the
amount by which benefit is reduced when the claimant fails to take part
in a work-focused interview has been changed as well. The sanction has
been toughened up. Will the Minister confirm that that, in a nutshell,
is what the regulations do?
I have a
couple of questions about how the regulations tie up with the White
Paper. The regulations apply to existing incapacity benefit claimants
under the age of 60. In the White Paper, the Government set out
different regimes of work-focused interviews for those under 50, who
will receive three interviews, and for the over-50s, who will receive
one. Clause 26 of the Welfare Reform Bill, which is currently passing
through the House, provides for the extension of work-focused
interviews to IB claimants over 60. The regulations appear to assign to
those incapacity benefit claimants a regime of six work-focused
interviews.
Unless I am
being incredibly dense, there seems to be some complexity there. It
would be helpful if the Minister explained exactly what regime will
apply and why different systems appear to apply to incapacity benefit
claimants of different ages. How does having different regimes
depending on the age of the claimant simplify the system? It seems to
make it more
complex.
One
potential reason why those over 50 will get only one work-focused
interview rather than three may be that the Government cannot find the
resources to guarantee all incapacity benefit claimants the extra help
that they require to find work. If someone has been claiming incapacity
benefit for a number of years and is over 50, especially during this
difficult economic time, they are likely to need more help than one
work-focused interview to get back into work.
I differ
slightly from the hon. Member for Edinburgh, West, who wondered whether
this was the right time to make such reforms. On the contrary, in this
recession and time of difficultyI know that the Minister
agreesit is important to offer more help to those who are not
working and might not have been in the labour market for a long period.
It is perfectly true, as the hon. Gentleman said, that they might find
it difficult to get into work at the moment, but if we do not prepare
them now and give them help and support, when the economy recovers and
more jobs become available they will be at the back of the queue again.
The Minister is right to say that help and support should be offered to
people on incapacity benefit, even during a recession, but offering
only one work-focused interview to those over 50 will not cut the
mustard.
The
hon. Member for Edinburgh, West set out reasonably comprehensively the
differences in the sanctions regime. He properly credited the Child
Poverty Action Groups work in preparing a comprehensive
briefing for Members. I want to add my support to the questions that he
asked and to ask the Minister whether he accepts that, in the
regulations, there are differences in the levels of protection afforded
to claimants on incapacity benefit and those on employment and support
allowance in relation to sanctioning. That is important because there
is a protection for those who are on employment and support allowance,
because the most that they can lose is the element of their
work-focused activity component. They are still effectively guaranteed
a minimum income of £60.50.
As the hon.
Gentleman said, for those on incapacity benefit who have not gone on to
the full phase of that benefit, there is a danger that they could be
sanctioned by the full £24 and that their income falls to a
particularly low level. I am interested to know whether the Minister
agrees that that is what the regulations allow and if that is the case,
whether the Department intends to use them in that way. If it does
intend to do so, what impact are
the regulations likely to have on poverty in general and child poverty
in particular, which is obviously the concern of the Child Poverty
Action
Group?
The
hon. Member for Edinburgh, West has already mentioned that the
sanctions depend on the administrative efficiency of the DWP, so I will
not labour that matter, but further issues have been raised by another
excellent organisation, Carers UK. It has raised one or two issues
about those with caring responsibilities and has said that it would
welcome clarification that caring responsibilities will be considered a
valid reason for deferring an interview and will specifically be
referred to in the guidance that the Department
issues.
Carers
UK also had a question about whether the carer will have to keep using
their caring responsibilities to justify deferring interviews, or
whether if it is established after an initial interview that someone is
caring for somebody with a long-term condition, and that that position
is unlikely to change, there should still be an expectation of regular
interviews. Carers UK has said that, during the Welfare Reform Bill
Committee, the Minister for Employment and Welfare Reform confirmed
that full-time carers will not be subject to conditionality. I should
be grateful for confirmation from the Minister of whether that will be
the
case.
A
further issue raised by Carers UK is the failure to take part in
work-focused interviews. A list of potential reasons has been set out
that people might miss a work-focused interview, but Carers UK would
welcome clarification on whether the Department considers a problem
caused by a breakdown in care arrangements to be good cause for not
turning up to a work-focused interview. Carers UK would also
welcomeas would Iclarification on what guidance will be
issued to Jobcentre Plus advisers.
I am asking
for that clarification because a recent National Audit Office report on
the Department for Work and Pensions entitled Supporting Carers
to Care had a number of important findings about how well
Jobcentre Plus was set up to deal with those with caring
responsibilities. For example, more than 70 per cent. of carers
surveyed who had contacted Jobcentre Plus in the past 12 months thought
that the services were not well suited to the needs of carers seeking
work. Only one third of the group reported that staff were helpful,
approachable and sufficiently aware of carers circumstances.
Indeed, when the NAO talked to Jobcentre Plus staff, only a fifth
thought they had the skills and knowledge that they needed to support
carers who wanted to work. So, Jobcentre Plus staff want to do a better
job at supporting carers to get into work, but they need the Department
to give them the tools to do so. Clearly, unless there is good guidance
and training for Jobcentre Plus advisers, carers have a justified worry
that they will not be treated fairly under this
regime.
The
NAOs final finding was that two thirds of the Jobcentre Plus
staff that they surveyed were unaware that carers who only claim
carers allowance were exempt from attending work-focused
interviews. I know that the Government are planning to introduce care
partnership managers in every Jobcentre Plus district, and that is
welcome. However, given that they will cover a significant area, how
will care partnership managers knowledge be
cascaded down through the Jobcentre Plus network so that every personal
adviser on the front line is sufficiently briefed on how the regime
will
work?
Before
I conclude, I shall just make a point about the timing of work-focused
interviews. The explanatory memorandum states that precise time limits
are not set out in the regulations, as they were in previous
regulations, in order to allow greater flexibility in line with the
employment and support allowance process. At the moment, the timings
are largely the same as under the pathways to work programme. Will the
Minister say how the Department plans to use that extra flexibility,
and what benefit he thinks it will have in fitting individuals
circumstances better and helping them to get back to work?
I hope that
the Minister will reassure me and the hon. Member for Edinburgh, West
on the questions that we have raised. If so, we and the House will be
much more comfortable with the
regulations.
10.50
am
The
Parliamentary Under-Secretary of State for Work and Pensions (Jonathan
Shaw): It is a pleasure to serve under your chairmanship,
Mr. Streeter. I thank hon. Members for the points raised
this morning.
The hon.
Member for Edinburgh, West began by unfairly characterising the
arrangements as punitive, yet they put an additional £300
million up front for ESA so that we can provide people with support at
the beginning rather than the end, because we know that the longer
people are on the allowance or on incapacity benefit, the further they
become from the labour market. The hon. Gentleman also knows that we
are putting an additional £1 billion into pathways to work. It
was unfair to focus on the element of conditionality, as he did. We are
investing in supporting people and helping them to find
employment.
The
hon. Gentleman expressed a number of concerns about the interviews, as
did the hon. Member for Forest of Dean. It is important that a
relationship develops between the personal adviser and the customer
claiming ESA or incapacity benefit. The hon. Member for Edinburgh, West
referred to a young man in his constituency who, we hope, is pursuing a
university education. It was a good example of someone trying his best.
Many people do so. However, all right hon. and hon. Members will be
aware of cases that have arisen in their constituencies in which people
have tried their best for noble reasons but in doing so did not give
the whole picture.
The hon.
Gentleman also referred to the number of successful appeals. The reason
for those is that new information will have come to light. I recently
spoke to departmental staff, who were discussing the matter with a
tribunal chairman, about seeing whether things could be improved. Staff
want all the information in front of them when making decisions. It
does no one any good if they do not, and it has a cost to the
Department and the public purse and causes anxiety for people such as
the hon. Gentlemans constituents.
Mr.
Robert Flello (Stoke-on-Trent, South) (Lab): A constituent
who came to see me recently has a history of mental health problems. At
the initial interview, none of her extensive medical history and none
of the details from her GP on her profound problems were taken into
account. It was very much an initial questionnaire, ticking boxes and so
on, but it has had to go to appeals. That has taken a long time. Will
my hon. Friend turn his attention to that situation? If, as he says,
the staff are keen to take in such information, why are they not doing
so now?