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Session 2008 - 09
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Welfare Reform Bill Committee

Welfare Reform Bill



The Committee consisted of the following Members:

Chairmen: Mr. Jim Hood, † Mr. David Amess
Banks, Gordon (Ochil and South Perthshire) (Lab)
Baron, Mr. John (Billericay) (Con)
Clappison, Mr. James (Hertsmere) (Con)
Harper, Mr. Mark (Forest of Dean) (Con)
Howell, John (Henley) (Con)
Jones, Helen (Warrington, North) (Lab)
Lilley, Mr. Peter (Hitchin and Harpenden) (Con)
McKechin, Ann (Parliamentary Under-Secretary of State for Scotland)
McNulty, Mr. Tony (Minister for Employment and Welfare Reform)
Mason, John (Glasgow, East) (SNP)
Munn, Meg (Sheffield, Heeley) (Lab/Co-op)
Plaskitt, Mr. James (Warwick and Leamington) (Lab)
Robertson, John (Glasgow, North-West) (Lab)
Rowen, Paul (Rochdale) (LD)
Shaw, Jonathan (Parliamentary Under-Secretary of State for Work and Pensions)
Ussher, Kitty (Parliamentary Under-Secretary of State for Work and Pensions)
Liam Laurence Smyth, Committee Clerk
† attended the Committee

Witnesses

Martin Narey, Chief Executive, Barnardo’s
Tim Nichols, Press and Parliamentary Officer, Child Poverty Action Group
Eddy Graham, Welfare Rights Specialist, Child Poverty Action Group
Fiona Weir, Chief Executive, One Parent Families/Gingerbread
Kate Bell, Head of Policy, One Parent Families/Gingerbread
Professor Paul Gregg, Centre for Market and Public Organisation, University of Bristol

Public Bill Committee

Tuesday 10 February 2009

(Afternoon)

[Mr. David Amess in the Chair]

Welfare Reform Bill

Written evidence to be reported to the House
WR 01 Age Concern and Help the Aged
WR 02 Barnardo’s
4 pm
The Chairman: Good afternoon everyone. I welcome the witnesses, one or two of whom have probably given evidence before. For those who have not, I will say what I said this morning. There is nothing to fear; Members of Parliament are here simply to gather evidence from you. We hope that you will relax and enjoy the afternoon. Will you please introduce yourselves?
Kate Bell: I am Kate Bell, the head of policy at the single parent organisation, Gingerbread.
Fiona Weir: I am Fiona Weir, the chief executive of Gingerbread.
Eddy Graham: I am Eddy Graham, a welfare rights worker at the Child Poverty Action Group.
Tim Nichols: I am Tim Nichols, the press and parliamentary officer at the Child Poverty Action Group.
Martin Narey: I am Martin Narey, the chief executive of Barnardo’s.
Q51 The Chairman: Excellent. Going from my left to right, will you now please each give us your general observations about the Bill? There are a lot of witnesses, but you may take as much time as you like, because parliamentarians will listen to what you say and your comments will spark various questions.
Kate Bell: Fiona can speak for our organisation.
Fiona Weir: We have a wide range of concerns about the Bill, a number of which come from our perspective as a single parent charity that not only inputs into policy debates affecting single parents, but is very much a provider of employability training. A huge amount of what we do is about trying to get single parents back to work. Our concerns are focused on a number of main areas, one of which is how to get the right balance between the parenting responsibilities that parents have, and their need to get into a job and to obtain help to get their family out of poverty.
A second area of concern runs through parts of the Bill. While we agree with the thinking around getting children out of poverty, and while we very much welcome the Government’s commitment to that, it is very important to ensure that work really is a route out of poverty. Several aspects of the proposals give us concern that single parent families will not find a route out of poverty, but will instead join the ranks of the working poor, or will face problems such as cycling in and out of benefits or low-paid jobs, with detrimental impacts on their families. We are also—partly from our own experience of what works, and partly from our respect for much of what has been achieved in the past decade to get lone parents into jobs and to improve the employment rate significantly, which has happened through a mixture of incentives and the removal of barriers—very concerned about the shift from incentives towards an approach that is very much based around compulsion. We have particular concerns about the impact of sanctions, in terms of both the hardships that they would cause to families that are already vulnerable and at severe risk of poverty, and the kind of discretionary powers that are to be given to advisers. We think that they could be detrimental to building the kind of relationship that is needed if you are going to encourage people back into work. We also think that they could create a real risk of unjust and inconsistent approaches. Those are our main concerns, in top-line terms.
Eddy Graham: The Child Poverty Action Group shares a lot of Gingerbread’s concerns. The first thing to talk about is the format of the Bill. We said that it was not so much skeletal as invertebrate, in that it grants an awful lot of powers, such as for the Secretary of State to abolish income support for any group of people if he considers it expedient or necessary. What is expedient might not be necessary or wise, and we are concerned about the Secretary of State taking a power to remove the entitlement of vulnerable people to claim income support before we know what system will replace it. The powers that are being granted and the lack of draft regulations, unlike with the previous Welfare Reform Bill, for which extensive draft regulations were published, cause some concern.
Much of the Bill is about increasing conditionality on claimants, lone parents, and sick and disabled people, yet there is nothing about benefit adequacy. We are primarily concerned with the eradication of child poverty, but simply increasing conditions on benefit claimants on its own will not meet the 2020 target. There is nothing in the Bill about increasing benefit adequacy so that claimants who are forced to claim benefits for long or short periods can live on a reasonable income. We are opposed to increasing conditions on people for an insufficient level of income.
On the extension of contracting out, although the Bill does not remove any benefit claimants’ rights to appeal, it does move them one step further away. It places more decisions and directions in the hands of contractors and will leave claimants with less to appeal or complain about. It is not clear from the Bill what claimants will do when they have disputes with contractors about the action plans that they are drawing up or directions that they do or do not want. The Bill retains the right for claimants to appeal against benefit sanctions, but a lot of decision making takes place before that. We are concerned that, in effect, there is an eradication of people’s right of appeal.
Q 52The Chairman: Mr. Nichols, do you have anything to add to what your colleague has said?
Tim Nichols: I would like to add just a bit to what Eddy said. I want to make it clear that CPAG very much supports the potential that work can have as a route out of poverty for parents and children, provided that it is high-quality, well-paid work. We certainly would not want our criticisms of the Bill to be misunderstood as opposition to that in any way, but we have concerns about the effectiveness of the approaches being taken and about the Bill’s impact on children.
Financial sanctions on a family will have consequences for the children in the family. There are potential conflicts between some of the possible directions and parental caring responsibilities, and we are also concerned about the potential of the welfare to work agenda to drive child care strategy too much.
We think that the needs of children have to trump everything. The Government’s child care strategy has to be at the top and other things must follow it. In terms of effectiveness, the Bill leaves claimants with very little ownership of the process of gaining employment support. The large majority of claimants want to get into decent work. We would prefer to see a system that nurtured that ambition much more and worked in a more positive way with that potential, and that is part of the reason why we are one of the organisations that has suggested that this is an opportunity perhaps to look at ideas around a claimants charter so that a claimant would feel that they had an entitlement to high-quality, personally tailored support, rather than it being something imposed on them through a quite bureaucratic sanctions regime. As somebody who was once a long-term benefit claimant and experienced the new deal, I know that no matter what things look like on paper, the feelings that you have as a claimant and your personal experience of the process as it plays out are extremely important to its success.
We have concerns about the amount of time that is being given for consideration of the Bill in Committee. After the evidence sessions, there will be only six sittings. I believe that there were 12 sittings for the last Welfare Reform Bill. Given how much will be left to regulations, we are not sure that there is enough time really to scrutinise the Bill.
Martin Narey: I have sympathy with much of what has been said, but Barnardo’s takes a somewhat different view. It is important that that view is not caricatured; we are not suggesting that the vast majority of people who are unemployed or out of work do not want to get into work, but we believe that many of them need help and assistance to get into work. We do not shy away from the fact that a small minority needs pushing into work. We have some sympathy with the conditionality aspects of the Bill, particularly the emphasis given to getting those on long-term and incapacity benefits back into work. I say that on the basis of not only my experience running Barnardo’s, which works with about 120,000 children and young people, but, and perhaps more significantly, my previous experience running the Prison Service.
When working with offenders, which I did for 23 years, I was constantly struck by the worrying number who believed that the world of work was simply nothing to do with them. They came from families with parents who had not worked. Indeed, there is some evidence now of young people in families in which work has not been a factor for three generations. Work can provide a route out of poverty—although not always, and it is a real problem that 60 per cent. of children living in poverty in the UK have one or both parents working—and it also improves self-esteem and self-worth. A child growing up in a family in which one or more parents work is much more likely to think that the world of work, a potential career and getting on in the world is something to do with them. The number of young people in the UK who think that jobs and careers are things that people like us do is a real worry.
The Chairman: Colleagues, there is plenty of food for thought there.
Q 53Mr. James Clappison (Hertsmere) (Con): I would like to ask about the position of lone parents with younger children, which is a very important aspect of the Bill. We will perhaps start with Fiona and Kate. You have seen the Government’s proposals, which were set out in response to the Gregg report, on how they see the parents of children under the age of seven in a progression to work group. After the children are seven years old, the parents will obviously move from income support to jobseeker’s allowance. Under this philosophy of progression to work, those with children under seven will be in a new group, and lone parents of children of three to six years old will be
“Required to follow the full progression to Work regime based around Work Focused interviews, action plans, work related activity and the backstop of adviser direction.”
How do you feel about that?
Fiona Weir: From our experience of working with single parents, we feel quite strongly that the vast majority want to work; in fact, nine out of 10 say that they want to work when it is right for their family. Usually, when you unpick that a bit, there are very good reasons behind their choices on work, and 40 per cent. of lone parents with children under seven are already in work. Those who are not working often have very good reasons: sometimes it is skills and confidence, sometimes a lack of access to the right child care, and sometimes a different set of barriers relating to the particular needs of the children. Fundamentally, what is required is a system that really provides support on skills training and building confidence, and good provision of child care, but that essentially leaves the decision about when it is right for the family for the single parent to return to work up to that single parent.
We have learned from our experience of what works that the relationship with Jobcentre Plus advisers can be extremely positive and supportive for helping a lone parent on the route to work. However, you take the element of trust out of that relationship if there is the potential to sanction that lone parent for not undertaking particular work-related activities. What constitutes a “work-related activity” in the Bill is wide open and it is also very unclear what would or would not constitute a reasonable sanction. You must consider the experience in the US. There, when an adviser has been given discretion to apply sanctions, an element of racial bias has often come into decisions, along with other issues. That all adds up to a system that, instead of working with the desire that many people have to get their children out of poverty and to get themselves back into work—because they want the adult company, to be a role model for their child and so on—somehow becomes very distrustful and based on a small number of people, rather than the vast majority of people who want to take the right route for their family. It then becomes a system that is working not with people, but against them.
 
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Prepared 11 February 2009