Welfare Reform Bill


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Mr. Clappison: I repeat that amendment 3 is designed as a probing amendment to seek details. At this stage I will not be moving it to a vote.
Mr. McNulty: In that context, I fully understand amendment 3 as a probing amendment. It clearly made no sense on its own terms. But I apologise—I realise that the hon. Gentleman said “probing” at the start.
If the Committee seeks an exhaustive list on the face of the Bill outlining what good causes may be, that is a fool’s errand. That is in the sense that, with the greater personalisation and the focus on individuals, we would hope to be as flexible as possible precisely because of the very personal nature of that relationship. Of course, that will include a person’s health and other such matters. Currently, in terms of sanctions on the new deal, the following circumstances all constitute good cause, in terms of an impediment to the individual being able to comply with the conditions: disease or physical and mental disablement, travelling time, caring responsibilities, attendance at court, arranging or attending a funeral, being in a lifeboat crew or a part-time firefighter, domestic emergencies, emergency duties, continued participation potentially putting the individual’s health and safety at risk, antisocial behaviour orders, and community orders or community disposal orders.
Equally, we could not have an exhaustive list of health conditions. The hon. Member for Glasgow, East will know that elsewhere in the Bill we will be discussing what we can do in the most flexible of terms for individuals with ongoing disability, fluctuating conditions or—particularly in the case of later clauses—problematic drug use. So, quite deliberately, the Bill is drawn as broadly as possible, to be as all-encompassing as possible in terms of providing the individual with as much scope as possible for a good cause to be part of the developing relationship between the personal adviser and the individual. Two years down the line, at the end of the new deal, after 24 months on JSA, we think not only that the conditionality should apply—we are very clear about that—but equally, that it should apply in the most flexible of circumstances. We should take full cognition of an individual’s circumstances, and ensure that what is established in terms of good cause is as broadly drawn as possible.
11.15 am
Mr. Clappison: I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr. Clappison: I beg to move amendment 4, in clause 1, page 2, line 40, at end insert—
‘(8A) A statutory instrument containing regulations made by the Secretary of State under subsection (8) shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.’.
The Chairman: With this it will be convenient to discuss the following: amendment 7, in clause 2, page 5, line 28, at end insert—
‘(4A) A statutory instrument containing regulations made by the Minister under subsection (4) shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.’.
Amendment 8, in clause 2, page 5, line 37, at end insert—
‘(6A) A statutory instrument containing regulations made by the Minister under subsection (5) shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.’.
Amendment 22, in schedule 1, page 66, line 9, at end insert—
‘23A A statutory instrument containing regulations made by the Minister under Part 1 of Schedule 1 shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.’.
Amendment 15, in clause 7, page 13, line 37, leave out subsection (9) and insert—
‘(9) A statutory instrument containing an order under this section shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.’.
Amendment 19, in clause 19, page 25, line 18, at end insert—
‘(10A) A statutory instrument containing regulations made by the Secretary of State under subsections (6), (7), (8), (9) or (10) shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.’.
Mr. Clappison: It may assist the Committee to know that all these amendments stand in my name and those of my hon. Friends. They relate to the type of parliamentary scrutiny that regulations should be subject to under the Bill. In each case, they require the affirmative resolution procedure as an alternative to the negative resolution procedure that is in place at the moment in the Bill.
As the Committee, and anyone who looks at the Bill, will have gathered, it contains an enormous number of regulation-making powers. Without counting them up exactly, I understand that the vast majority are subject to the negative procedure and only one or two are subject to the affirmative procedure. It would take up a lot of the Committee’s time and possibly generate inappropriate debate if one was to suggest that the negative procedure was taken out in every case and replaced by the affirmative procedure. In these amendments we have taken what we regard as some of the more important issues currently covered by the negative procedure—I will be corrected if I am wrong about that, but at the moment they seem to be covered by it—and suggested, as a way of opening up a debate, whether or not they should be subject to the affirmative procedure. I am afraid that it will be necessary to leap between a number of subjects and areas in the Bill.
First, amendment 4 would require the use of the affirmative procedure under clause 1(8). That is in the case of hardship payments where sanctions have been applied for failure to comply with “work for your benefit” regulations. This is obviously a sensitive issue. We observe that in the notes on clauses, provision for such hardship payments is contained in section 20B(4) of the Jobseekers Act 1995. It may be that the Government envisage the hardship provisions working here in the same way as the ones that are already established. It is certainly important to hear a few words from the Minister on this subject.
Amendment 7 refers to proposed new section 2D. This is a different subject—that of work-related activity for claimants in receipt of various income-based benefits, including employment and support allowance. The regulation-making powers in question, to which this amendment relates, are very important in the context of what is required of these claimants by way of work-related activity. I am sure the Committee will understand that when I say “work-related activity,” it means not that a person will be required to look for a job, but that they will be required to undertake activity that serves as a preparation for finding work and helps to move them nearer to the labour market. It covers claimants in receipt of a number of different types of benefit.
So these regulation-making powers go to the heart of what is required of claimants. They, for example, prescribe the time and amount of work-related activity that a person is required to undertake, the circumstances in which a person is or is not to be regarded as undertaking such activity, and the imposition of a sanction where a person has failed to comply with requirements. Those are important matters, and they stand out from among the other regulation-making powers as ones where it is appropriate to at least consider whether the affirmative resolution procedure should be used, rather than the negative one.
Amendment 8 relates to regulation-making powers to reduce benefit where sanctions are imposed on a claimant who has failed to comply with requirements on work-related activity. We regard reductions in benefit and the length of time for which it is to be reduced as important matters. We note that, in this context, the Gregg report—the Committee will be familiar with Professor Gregg, who gave evidence to us in our sitting two weeks ago—said of the sanctions that are currently in place:
“Whilst the current regime is broadly effective and certainly increases compliance with labour market conditions, there is also widespread acknowledgment that it is complex and difficult to understand. The process is also, in some circumstances, time-consuming and costly to operate. This means that the system is not as clear and crisp as it could be, which reflects the piecemeal development of conditionality across different benefits based on different legislation, different regulations and different case law.”
The Government, in their December White Paper, admitted that there were shortcomings in some respects in the way sanctions were working—although we know that the Government are seeking, through the Bill, to move benefits together, which will reduce the number of benefits to some extent. In the light of those criticisms and considerations, it is important to have a debate about this.
In their White Paper, the Government suggested that the initial sanction for non-compliance for jobseekers should be one week’s loss of jobseeker’s allowance. We wonder whether the Government have the same amount in mind in the case of non-compliance for work-related activity.
Amendment 22 relates to schedule 1, which makes various amendments to the Jobseekers Act 1995. The delegated powers memorandum states that it contains amendments to the Act, which would provide a framework under which some people are not required to meet some of the conditions
“but...are expected to prepare for work in the future.”
It contains detailed provisions related to conditionality, dealing with requirements to attend work-focused interviews; powers to direct claimants to undertake activities relating to finding employments, becoming employable, and remaining employed; action plans, requirements to undertake work-related activity and application of sanctions. These are very important matters. They may apply, in some cases, to lone parents with younger children; we think it is right to raise the issue once again in this context, at the level of parliamentary scrutiny which is appropriate to them.
Amendment 15 relates to clause 7, which gives the Secretary of State the power to abolish income support. This is obviously a very sweeping regulation—a very big step. We apprehend that this is the direction in which the Government wish to travel. We understand that that will be done once the Secretary of State is satisfied that it is no longer necessary to prescribe income support to groups of people because they are catered for elsewhere in the benefits system. As I indicated a moment ago, the Government are trying to move benefits together, which was recommended in various reports into this subject. By saying that this is a big step, I support the proposition. It is perhaps appropriate to consider whether this should be subject to the affirmative procedure as well, given that it is a step of great magnitude in social security policy. At the moment it appears that it is subject to the negative procedure. We wonder whether there is not a case for asking whether this step should be subject to the affirmative procedure when it comes to be taken.
Mr. McNulty: To echo what the hon. Gentleman said, it is entirely appropriate to table such amendments and there is a consequent and ongoing tension between primary and secondary legislation. As I have tried to indicate, this is—not quite uniquely, because immigration is the same—a whole area of UK law where there is an entire regulatory framework alongside the primary legislative framework That is the way that both immigration and benefits law have worked for some time.
I also accept that there is a desire to scrutinise aspects of policy surrounding the Bill. For reasons that I shall come to, I do not accept that this is a necessarily proportionate way of doing it. There is a balance to be struck; there are existing safeguards to ensure that the regulations receive proper scrutiny. For example, we work closely with the Social Security Advisory Committee on regulation. We have shown with the employment and support allowance regulations that we are willing to go beyond what is required of a Department by law and engage constructively with the Committee. We will also study with great care the memo from the Delegated Powers and Regulatory Reform Committee and will respond appropriately.
If I may, I shall briefly discuss each element in turn. As the hon. Gentleman suggests, Amendment 4 relates to the hardship payments under the “work for your benefit” regime. I can assure hon. Members that we intend to apply pretty much the same hardship regime that is already operating for JSA. It is more an updating of the regulations than the introduction of anything substantially new. In that context, I think it appropriate that it is negative—the Committee will know that negative resolutions are laid and, under the negative process, hon. Members can pray against them and they can eventually get their day in court, for want of a better phrase. Negative does not mean that there is no recourse to a degree of scrutiny.
As the hon. Gentleman suggests, amendment 7 relates to clause 2 and how those moving from income support to JSA are treated. Again, we propose to introduce regulations that are similar to existing ones that relate to work-focused interviews, action plans and jobseeker’s agreements, including relevant good cause provisions. They are therefore appropriately carried out under the negative resolution.
Amendment 15 is strange given that it relates to the abolition of income support. The key safeguard here, as the hon. Gentleman said, is that the Secretary of State must be satisfied that there are no groups who still need it before the benefit is abolished. By the time the negative resolution is laid, everyone will be clear that there is no need for income support any more, so it should be abolished. Why that should not be done under a negative rather than a positive procedure escapes me; we would only lay that negative resolution when the time is right for that particular benefit to be abolished.
11.30 am
I have found an amendment where the hon. Gentleman was in error: amendment 19 is unnecessary—I can confirm that the affirmative procedure will already apply. The regulation-making powers are intended to be the same as those existing in the two strikes legislation in the Social Security Fraud Act 2001, because this is inserted in that legislation—but it will be the affirmative rather than the negative.
The Committee will be aware that in both the delegated powers memorandum and the document to which I referred—which is now, I hope, available—there are copious notes and tables about where regulation powers are taken and whether they are to be pursued under negative or positive procedures.
Amendments 8 and 22 refer to the establishment of the progression to work group—in particular, those who have moved from jobseeker’s allowance to income support. I appreciate that the powers seem wide-ranging, but we either build on the existing JSA regulations or mirror the types of conditionality that will be applied in income support before people migrate to JSA. I accept the hon. Gentleman’s point that notwithstanding that it builds on existing conditionality, we are still developing what we want to take forward as the Gregg model—for want of a better phrase.
Although I am not accepting the amendments—God forbid; I do not do that sort of thing—I think that the hon. Gentleman does, potentially, have a point. As we develop the model of conditionality during the Bill, amendments 8 and 22 may be ones that we should return to given the import and the substance of those regulations, and the significant shift that they will make. In that spirit, I still ask him to take the lot of them away, but with amendments 8 and 22 the hon. Gentleman does have half a point, at least. I need to reflect on whether it is more than half a point.
 
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