The
Committee consisted of the following
Members:
Chairman:
Mr.
Eric
Martlew
Bacon,
Mr. Richard
(South Norfolk)
(Con)
Baron,
Mr. John
(Billericay)
(Con)
Curry,
Mr. David
(Skipton and Ripon)
(Con)
Harper,
Mr. Mark
(Forest of Dean)
(Con)
Hodgson,
Mrs. Sharon
(Gateshead, East and Washington, West)
(Lab)
Keen,
Alan
(Feltham and Heston)
(Lab/Co-op)
Linton,
Martin
(Battersea)
(Lab)
McDonagh,
Siobhain
(Mitcham and Morden)
(Lab)
McNulty,
Mr. Tony
(Harrow, East)
(Lab)
Rowen,
Paul
(Rochdale) (LD)
Ryan,
Joan
(Enfield, North)
(Lab)
Shaw,
Jonathan
(Parliamentary Under-Secretary of State for Work and
Pensions)
Stoate,
Dr. Howard
(Dartford)
(Lab)
Tyrie,
Mr. Andrew
(Chichester)
(Con)
Webb,
Steve
(Northavon)
(LD)
Wicks,
Malcolm
(Croydon, North)
(Lab)
Mark Etherton, Committee
Clerk
attended the
Committee
Sixth
Delegated Legislation
Committee
Thursday 29
October
2009
[Mr.
Eric Martlew in the
Chair]
Social
Security (Incapacity Benefit Work-focused Interviews) (Amendment)
Regulations
2009
8.55
am
Mr.
Mark Harper (Forest of Dean) (Con): I beg to
move,
That
the Committee has considered the Social Security (Incapacity Benefit
Work-focused Interviews) (Amendment) Regulations 2009 (S.I. 2009, No.
1541).
Thank
you, Mr. Martlew. It is certainly a pleasure to serve under
your chairmanship. I am sure that the same goes for Labour Members, who
will be delighted to be here to debate these important
regulations.
By way of
preamblea brief preamble, you will be pleased to hear,
Mr. Martlewit is worth saying that the regulations
are important in the context of the recession. We are seeing a
significant rise in unemployment, and this is obviously a difficult
time for those who are on incapacity benefit or the employment and
support allowance. At this difficult timeI am almost sure that
the Minister will say this later, and I would agree with himit
is even more important that we provide proper help and support for
those on incapacity benefit or the employment and support allowance.
Even if it is not possible to get all of them into work now, it is
essential that we make sure that they get the training and help that
they need so that when the economy eventually recovers they can get
back into the workplace. We very much support that central thrust, and
we certainly do not object to the central thrust behind the
regulations. However, I want to challenge the Minister on a number of
important issues.
First, on the
parliamentary process, the regulations were laid before Parliament on
25 June and the prayer was tabled four days later, on 29 June. The
House did not rise for the summer recess until 21 July, which should
have given us ample time to debate the regulations. After the House
returned from the recess, it had two weeks to debate them before they
came into force on Monday. It is rather disappointing that we have
ended up debating them three days after they came into force; it would
have been better if time had been found in the timetable to debate them
before they came into force. It might be worth the Minister saying a
word about the inordinate delay in finding time to debate the
regulations.
I turn now to
the detail of the regulations. The provisions are applicable to
existing incapacity benefit claimants of between 18 and 24 years old
who have been claiming continuously for 12 months or more and who live
in a Jobcentre Plus pathways to work areaan area where
Jobcentre Plus, rather than a third-party provider, deals with the
pathways to work programme.
Essentially, the regulations provide for claimants who fall within that
definition to attend three mandatory work-focused
interviews.
I
have some questions about the number of people in the group that the
regulations will affect. It is difficult to get all the information
from the Department for Work and Pensions website and the tabulation
tool that it uses, because one cannot select all the criteria at one
time to pull the information off. The information that I have managed
to pull off so far is that 96,040 IB claimants between 18 and 24 have
been in receipt of the benefit for more than a year, compared with the
total IB population of 2.2 million. The regulations, therefore, affect
just under 5 per cent. of the existing IB case
load.
The
Minister, having access to the data, will be able to come up with a
slightly more refined number. It would help if he set out how many IB
claimants the regulations affecthow many are in the 18 to 24
age group; what proportion that is of the total; and how many have been
claiming for more than a year. As I said, 96,040 or so claimants are
potentially affected by the regulations, but the regulations affect
only those who live in Jobcentre Plus-led pathways areas. In respect of
the total number of IB claimants, it would help if the Minister
provided figures showing the split between how many are in a Jobcentre
Plus-led pathways area and how many live in a provider-led
areaand, in each of those areas, how many of the IB claimants
have been claiming for the 12 months or more for which they
would need to have been claiming for the regulations to kick
in.
The
explanatory memorandum states that existing
stockforgive me, Mr. Martlew; that
is not a great wordcustomers, who are already on IB and who
made their claim for IB before pathways to work was introduced, have no
conditionality requirements. That means things that they have to do to
seek work. It would help if the Minister informed the Committee of how
many of the IB population, both in the age group that we are discussing
and in general, currently have no conditionality requirement at all to
seek work-focused interviews or to get back into
work.
I
also want to probe the Minister on whether the financial backing for
the regulations stacks up with what they are designed to do. The impact
section of the explanatory memorandum
states:
The
impact on the public sector is less than £5m in administration
costs.
In
a previous written answer to a parliamentary question, the Minister
said that the average cost of conducting a work-focused interview was
£35. If £5 million is the cost of conducting the
work-focused interviews and we assume that there are three for each
person, which is what the regulations provide for, the cost of the
regulations would cover about 47,000 claimants. I want to see whether
the number of people whom the regulations will cover stacks up with the
financial resources that the Government have put in place to conduct
the work-focused interviews. I should also like an idea of the period
over which the interviews will take placehow quickly do the
Government propose to carry them
out?
I
have already drawn attention to the fact that the regulations apply
only to IB claimants who live in a Jobcentre Plus-led pathways area. It
would help if the Minister explained why the regulations apply only to
claimants in those areas and not to those in areas where
there is a third party provider-led pathways programme. How many of the
total number of people on IB in the age range that we are talking
aboutyoung people of between 18 and 24will not have
work-focused interviews because they do not live in the right parts of
the country? What extra help might there be for those who live in the
areas not covered by the regulations? Does the Minister plan to extend
the regulations at some point to cover provider-led pathways areas as
well?
Given
that the point of the regulations is to have IB claimants attending
work-focused interviews and getting back into work, I want to explore
how effective those interviews will be at helping people to do that.
The original Pathways to Work document, published in
2002, made the point that once a person had been on IB for a year, they
had only a one in five chance of returning to work within five years,
and that the average duration of their claim would be eight years. Once
a person has been claiming for more than a year, it is very difficult
for them to leave IB and get back into work. I should be interested to
know what estimate the Minister has made of the number of IB claimants
who will be affected by the regulations who will get back into work as
a result of the additional work-focused interviews, and how many would
not have been expected to get back into work but for those regulations.
It would also be interesting to know what analysis the Government have
made to assess the effect of the work-focused interviews on the flow of
IB claimants off benefit and into work. A key point is that we should
not just get people off the benefit, but get them back into
work as
well.
Given
that the regulations specifically affect those IB claimants who live in
the Jobcentre Plus-led pathways areas, I wanted to touch on the
question of whether Jobcentre Plus will have the resourcesthe
finance and the peopleto carry out the additional work-focused
interviews. We know that Jobcentre Plus does an excellent job in coping
with the growth in the number of its customers, for want of a better
word, during the recession. However, we want to make sure that it will
be comfortable in dealing with the extra
burden.
The
next thing that I want to mention may be a feature of what happens when
regulations are laid and not debated for a few months. The
explanatory memorandum states that the Governments approach to
IB has led to the fact that the numbers on the benefit are continuing
to fall. It also states that IB numbersthis is actually IB and
employment and support allowance
together
are
down 47,000 to 2.60 million in the year to May
2008.
It
continues:
There
is no clear evidence yet that the economic downturn is leading to
rising numbers on Incapacity
Benefit.
I
think it is fair to say that that was true when the regulations were
laid before Parliament, but I do not think that it is true any more.
Since then, the Government have published some data about the early
estimate of the IB and employment and support allowance client group as
of 31 August. That estimate is that the numbers reached 2.63
millionup from 2.59 million in August 2008. It would help if
the Minister confirmed that I have got that right, and that the IB and
employment and support allowance case load has started to rise as a
result of the economic downturn.
I wanted to
touch on the total goal that the Government have set themselves. The
regulations affect only a proportion of IB claimantsthose
between 18 and 24 living in particular areasbut part of the
Governments overall goal is to reduce the numbers on those two
benefits by 1 million by 2015. There are a couple of things on
which I want to test the Government.
First, I
think the starting point for that goal is set at the peak of the case
load in May 2005, when claimants totalled 2.74 million. How do the
Government expect to achieve the target? Of course, the benefits are
working-age benefits, so as people reach retirement age they move off
them and on to the state pension. More than 500,000 current claimants
are likely to reach retirement age by 2015, so doing nothing would
effectively mean that 500,000 incapacity benefit claimants would drop
out of the system as a result of their age.
Is the target
simply to move 1 million people off benefits, or is it to move them off
benefits and into work? Clearly, in the first of those choices, half
the job would be done through the age profile of the claimants. Trying
to move people into work would affect only those of working age, but it
would be a more challenging target than just getting people off
benefit.
My next point
is about the migration of incapacity benefit claimants from IB to the
employment and support allowance. The explanatory memorandum
states:
Customers
subject to these regulations will not need to attend the 3 WFIs again
when this future IB to ESA migration takes
place.
When
do the Government intend to start migrating existing IB claimants, in
the age group that we are discussing, on to the employment and support
allowance? Do they plan to prioritise the migration
of existing IB claimants of that age, or will they do it in some other
way without focusing particularly on young people? Once those people
have been moved on to the employment and support allowance, will they
have to undergo the six work-focused interviews that existing claimants
have to have? How do the Government plan to deal with people once they
move on to the ESA? Do they plan to align the requirements once IB
claimants have migrated to the ESA?
Finally, I
turn to the question of good cause for failing to attend a work-focused
interview, and the need to provide such cause within five days. The
regulations before us amend regulation 8(3) of the Social Security
(Incapacity Benefit Work-focused Interviews) Regulations 2008, which
states that a claimant who has failed to attend an interview must show
that he or she had good cause for failing to do
so
within
five working days of the day on which the interview was to take
place.
The
Minister will knowwe discussed the matter during the passage of
the Welfare Reform Act 2007that some disability charities,
particularly those that speak for people with mental health problems or
other fluctuating conditions, are not convinced that five days is long
enough for such people to notify the Department of their reasons for
missing the interview.
I refer
briefly to a note from the Royal College of Psychiatrists. When we were
debating the Welfare Reform Bill, it said that we should ensure that
those with mental health problems or other fluctuating conditions had a
face-to-face meeting with the person who was to decide
what to do about their absence so that the reasons why that person had
not attended the work-focused interview could be dealt with. Before
sanctions were put in place, the person making the decision should have
spoken to the individual and clearly understood the reasons behind the
absence. Mind also spoke about such a requirement, and wanted specific
safeguards so that the person would not be penalised for failing to
attend the WFI or for failing to notify their reasons for missing it if
that was caused directly by a mental health problem.
When debating
the Welfare Reform Bill, we discussed whether five days was appropriate
or whether more time was needed. We spoke then of the guidance on the
time period, issued to the staff at Jobcentre Plus so that they could
deal sensitively with someone who had a mental health problem or other
fluctuating condition and allowing the regulations to be interpreted,
rather than having to be changed. Are there any data from Jobcentre
Plus on problems with that five-day good cause
timetable having been
breached?
Those
are my questions for the Minister. I look forward to hearing what he
has to say.
9.13
am
Paul
Rowen (Rochdale) (LD): I apologise, Mr.
Martlew, for arriving late. I shall not repeat what the hon. Member for
Forest of Dean said, but I have a number of other questions for the
Minister. I hope that he can assist
us.
Since
laying the regulations before the House, the Government have introduced
the young persons guarantee. How does the operation of the
work-focused scheme fit in with the guarantee? We are dealing with
young people aged 18 to 24. The three interviews will obviously be
quite different; if the guarantee is in operation, what support and
advice will be available to ensure that these young people have the
options that we all want for them?
Following on
from what was said by the hon. Gentleman about people who might present
particular problems, one issue that concerns me is young people who
have autistic spectrum disorder. There is a lot of support in the
education system for autistic students up to the age of 18, but there
is a lack of understanding and support not only in employment but in
social services for those on the autistic spectrum. Will the Minister
say what support and advice will be available for Jobcentre Plus staff
on dealing with such young people? Will there be specialist
advisers?
Many primary
care trusts employ specialist mental health advisers who advise
Jobcentre Plus staff. They support people who suffer from mental
illness and help them get into the workplace. Does the Minister intend
such support from primary care trusts to be available to assist
Jobcentre Plus staff in dealing with young people who present with
autism or other mental illnesses? Has he given any thought to the
numbers that are in that category? We are talking only about those in
the pathways to work pilot. Nevertheless, that covers a lot of the
country.
Finally,
I will discuss how the policy fits into the general policy agenda and
pick up on some issues raised by the hon. Member for Forest of Dean.
The Government have a long-term policy of migrating people from
incapacity
benefit to the employment and support allowance. I am concerned about
the operation of the appeals process. Once someone is deemed fit to
work, they lose their entitlement to incapacity benefit, even if they
are appealing. Last week, I heard about the case of a young man who
went to an appeal tribunal with his nurse. The nurses
professional judgment was not heard as she was prevented from giving
evidence. The general practitioners advice was ignored. I am
concerned about the length of time that the appeals are taking. I have
spoken to another young man who was told in June that his appeal will
not be heard until December; his benefit has been dropped from
incapacity benefit to jobseekers
allowance.
There
are real concerns that people with mental illnesses and multiple
sclerosis are being classed as fit to work when medical practitioners
say firmly that they are not. I have concerns about the operation of
that process. Today, we are discussing young people. I would like an
assurance from the Minister that the system will be operated much more
sympathetically.
9.19
am
The
Parliamentary Under-Secretary of State for Work and Pensions (Jonathan
Shaw): It is a joy to serve under your chairmanship,
Mr. Martlew. We appreciate your guidance during these
proceedings.
I
will begin by attempting to answer some of the questions of hon.
Members. The hon. Member for Forest of Dean rightly talked about the
need to help young people and to ensure that Jobcentre Plus has the
right resources. As would be expected, I remind him and other
Opposition Members that we have ensured that we have sufficient staff
in the Jobcentre Plus operations in our communities by increasing the
staffing levels. Normally, we recruit about 500 a month into the
organisation; at the moment, the figure stands at about 2,500. That has
been made possible by additional borrowing in respect of the £5
billion as part of the fiscal stimulus. I am sure that the hon.
Gentleman is aware of that. I am pleased that he supports the
additional staff, even though he refrains from supporting the
additional resources used to provide those staff.
The future
jobs fund is helping many youngsters avoid the pitfalls of
unemployment. In the hon. Gentlemans region, for example, we
expect more than 1,000 jobs to be created over the next 18 months. That
will assist young people, but again, doing that takes resources. We are
pleased by the partnership of many local authorities of all political
persuasions around the country as they support the policy, even though
the Opposition do not support providing the resources to help our young
people.
The hon.
Gentleman asked about the split between pathways to work provided by
Jobcentre Plus and that provided by the private and voluntary sectors.
It is a 60-40 split. The 40 per cent. relates to the Jobcentre Plus
pathways provision, which accounts for about 30,000 youngsters who will
be affected by the initiative. In response to the hon.
Gentlemans question about the target, I should say that our
long-term aspiration is to ensure an 80 per cent. employment rate. That
can be achieved only if significant numbers of those currently on
incapacity benefit and employment and support allowance come off those
benefits and go into work.
On the number
of people who have no conditionality, I should say that approximately 2
million people joined the benefits before the conditionality
legislation applied to them. They will come under the ESA
conditionality arrangements when we migrate people from the current
incapacity benefit system to the ESA over the next three
years.
I was asked
why the provider-led pathways were not involved. The focus is on the
Jobcentre Plus areas, and we will be ensuring that the under-25s and
all groups are migrated on to the new system, which we plan to start in
2010. How quickly will that be carried out? We believe that
the work-focused interviews will be completed for all the 30,000-odd
relevant customers by March 2011.
The hon.
Gentleman asked about extra help. I have advised him about the extra
staff at Jobcentre Plus and the future jobs fund, which is having an
impact in our communities. The hon. Member for Rochdale referred to the
September guarantee. We are doing a great deal proactively to assist
young people to prevent that group from becoming long-term unemployed.
We know that the longer that people from that group are on benefits
such as sickness or ill health benefits, the more difficult it is for
them to get back to work, as the hon. Member for Forest of Dean
said.