Welfare Reform Bill


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Mr. Clappison: I am grateful to the Minister for his remarks and his implicit acceptance that we are subjecting this aspect to proper parliamentary scrutiny. I have, at least, got half a point—which is half a point more than I have sometimes been credited with after much longer consideration of other Bills.
The Minister will accept that at the outset we were trying to select some of the things which we thought were most important for affirmative resolution debate. I want to say very gently, without wishing to dislodge any good spirit, that the right hon. Gentleman referred to the Secretary of State making a decision, but it is not always the case that we agree with what the Secretary of State decides; we hope we do in this case. In the light of the Minister’s comments, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Meg Munn: I beg to move amendment 73, in clause 1, page 2, line 40, at end insert—
The Chairman: With this it will be convenient to discuss amendment 74, in clause 1, page 3, line 21, at end insert—
‘(1A) For the purposes of, or in connection with, any scheme within section 17A(1) the Secretary of State shall review data showing the number of participants with a disability at every stage of the scheme by impairment category.’.
Meg Munn: The amendments are very simple. They seek to explore how the proposals may impact on disabled people. We know that these people, generally, are one of the groups most excluded from the work force. Only 49 per cent. of disabled people and only 17 per cent. of people with learning disabilities are in work. That suggests that the failure is largely that of the workplace and not of disabled people.
The amendments seek to ensure careful consideration of the impact of the proposals on disabled people. I am grateful to Mencap for its briefing on this matter. There is a concern that such measures may be introduced as a consequence of factors outside the control of individual disabled people, such as failure by the flexible new deal provider, or the unwillingness of employers to take on, and acknowledge that there are problems in relation to, those people. The DWP’s impact assessment on this proposal stated:
“This policy proposal is expected to have a greater impact on people with a disability as they are more likely to reach the end of Flexible New Deal without having moved into employment.”
I am seeking reassurances in relation to this whole area that this issue will be properly monitored, that providers will have to provide information about people with specific disabilities, whether learning or physical, and that these issues will be properly looked at by the relevant Minister so that the impact of these important changes on the way we deal with these issues is properly examined, on the basis that people with disabilities face particular barriers.
To sum up, I am essentially seeking to ensure that it is possible to identify what is happening to disabled people as a result of the changes, and to ensure that their specific needs are recognised in the future.
Mr. Mark Harper (Forest of Dean) (Con): It is a pleasure to serve under your chairmanship, Mr. Hood.
Although I share the sentiments that inspired the amendment, I have a concern about it. I, too, looked at the excellent briefing note from Mencap, which covers the use of providers and relates to some of the evidence that we heard from Ministers. We have spoken about the black box concept—the concept of letting providers go off and deliver what they are supposed to do to get people into work. The concern is that if one says that those providers have to provide a detailed raft of information to the Department, which inevitably means that the Department is going to take action as a result of that information, one is in danger, if one is not careful, of effectively having the Department micro-manage what the providers are doing. I am not sure whether that is the right solution.
Nevertheless, the hon. Lady has drawn attention to a genuine concern. The way to tackle that, when one is getting providers to get people into work, is to look at the needs of individuals and the fee that the providers receive. If providers are paid a flat fee, there is exactly the danger that she suggests: those who require more help and support to get into work may well be neglected. If, however, the fee reflects the amount of work that will be needed to get someone into work, it ensures that those people who have a greater requirement for help and support will get it. That would be a better solution than the amendments that the hon. Lady is proposing. However, like her, I will listen with great interest to what the Minister has to say, to see whether he will reflect on the point that I have made. If he will not, her proposals may actually have some merit.
The Parliamentary Under-Secretary of State for Work and Pensions (Jonathan Shaw): It is a pleasure to serve under your chairmanship, Mr. Hood. We look forward to your guidance during our proceedings.
I welcome the amendments tabled by my hon. Friend the Member for Sheffield, Heeley. She raised the same point during the oral evidence hearings, and we had some brief discussions on the issue. I also welcome the comments by the hon. Member for Forest of Dean. What we are hoping to achieve—I am sure that there is agreement across the House on this—is to provide help to those who are furthest from the labour market. In particular, people with learning difficulties have stubbornly remained furthest from the labour market for far too long. My hon. Friend and the hon. Gentleman, along with many of us, will have seen excellent examples of innovative programmes that have provided real jobs for people with learning difficulties. One of those—I am sure that she is aware of it—is Project Search, which we are piloting at Norfolk and Norwich hospital and Leicester city council. It is an exemplary project, providing good training, job coaches and assistance to those people—people who seemingly could not find work but have found work.
I would like to address the point that the hon. Member for Forest of Dean raised about this black box. We do not want to be so specific that we dictate the parameters within which providers assist people with learning disabilities to find employment. To date, that has not worked. We are not in the position to be able to say that what we have done so far, universally, has worked for people with learning disabilities. We can certainly point to some good examples and, as is often the case with public policy, where we see good things working we just want that to be spread across the board, but delivering that is always the frustration for policy makers, whether nationally or locally.
In terms of the people that my hon. Friend the Member for Sheffield, Heeley referred to—the risk assessment of people with learning disabilities, or people with disabilities—it is likely to be those people who come to the end of the flexible new deal and have not found employment. She is right to highlight that, and I can give her some assurances with regards to what we intend to do at that point.
We intend that the Jobcentre Plus personal adviser will review, in partnership with providers, every case in which someone reaches the end of the flexible new deal without finding sustained work, Mr. Hood. This is to ensure we have a clear idea of the barriers and circumstances that an individual faces—you will hear that word repeatedly throughout our proceedings because it is about tailoring our support and resources to individuals—and will act as a safeguard to ensure that only those who are capable of working will be referred to this programme.
We acknowledge that some jobseekers have particular circumstances that we need to consider as we design the programme and the way it operates. That is why we intend that the “work for your benefit” programme will offer personalised and tailored support. We will incorporate appropriate safeguards to ensure that the work experience offered is suitable and relevant to an individual’s circumstances, in the way that the hon. Member for Hertsmere suggested earlier. People with disabilities who have restrictions within their jobseeker’s agreement relating to the days and hours they must be available to work, will also be able to apply those restrictions to participation in the “work for your benefit” programme. Similarly, any restrictions in jobseeker’s agreement on the type of work a person is available for will also apply. It is not our intention that people will be required to participate in activities that are unsuitable and inappropriate to their personal circumstances.
We expect our suppliers to be exemplary in meeting their duties under the Disability Discrimination Act 2005, including the disability equality duty. This aims to ensure that all bodies actively promote equality for disabled people when providing a service on behalf of the Secretary of State. The contract for the “work for your benefit” programme will require suppliers to support the Secretary of State in his duty to promote equality of opportunity for disabled people. The DWP’s contract management arrangements will monitor delivery in that regard, and customers will have the opportunity to discuss any problems with their jobseeker advisers. As my hon. Friend is aware, we will be piloting those. It is important that we monitor the effectiveness of this, but as my right hon. Friend the Minister for Employment and Welfare Reform said, we do not want any undue specificity. Is that correct?
Mr. McNulty: Yes.
Jonathan Shaw: I am grateful. We do not want a list because there would be an inevitable discussion about who is on it and who is not. My hon. Friend the Member for Sheffield, Heeley will be aware of that from her time as a Minister. We want the flexibility that the hon. Member for Forest of Dean referred to, so that we can see a step change in the pool of talent among people with learning disabilities. We have seen such people providing excellent work and being assets to the organisations they work for.
11.45 am
Mr. Harper: I am grateful for the Minister’s comments so far, but he has not addressed the issue I raised on differential fees for the rewards paid to providers. I know that the Department is thinking about that idea and will pilot it. My concern is that if providers are paid a flat fee for every person they try to get into work, so that the fee structure does not reflect the amount of help and support required, there is a danger that certain categories of people will be neglected, as the hon. Member for Sheffield, Heeley suggested. It might be too late if they have to wait until they fail to get a new job under the flexible new deal. Will the Minister say a little on the Department’s plans for differential fees?
Jonathan Shaw: I am grateful to the hon. Gentleman for picking up on that important point. There has been concern over cherry-picking, not just under this provision, but under our supported employment programme. We do not want to see cherry-picking. Under this programme, we will develop a payment and contracts model to minimise that risk. We are also exploring the new personalised employment programme and the new accelerator funding model. This is another example of where we are running pilots so that we get things right. I am sure he will agree that we must balance value for money with the personalised, tailored programmes that will provide success for the individual in gaining employment.
Following those remarks and my assurances to my hon. Friend the Member for Sheffield, Heeley and the Committee, I hope that she will feel able to withdraw the amendment.
Meg Munn: The last thing I want to see is micro-management; that is not the right way forward. I wanted reassurance that there will be proper monitoring and evaluation; without that, I fear that we will continue to see disabled people disadvantaged. I am grateful to my hon. Friend for mentioning the disability equality duty. As he has reassured me that there will be management arrangements for proper monitoring and evaluation of the issues I have raised, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr. Clappison: This is the appropriate moment to raise one matter with the Minister. As was the case with the proposals that we brought out before this programme, it is important to bear in mind that the “work for your benefit” scheme will not kick in initially with a jobseeker’s claim, but only after a jobseeker’s claim has been extant for a considerable period. As I understand the Government proposal, it must be at least two years from the beginning of the jobseeker’s claim and after a year of job search followed by a year on the flexible new deal.
The commencement of the “work for your benefit” programme is tied to the beginning of the flexible new deal. We understand from the December 2008 White Paper that the programme is due to be piloted from 2010. It states:
“The pilots will start in 2010, in line with the first people completing 12 months on Flexible New Deal.”
As Committee members may recollect, the flexible new deal is not expected to commence until 1 October 2009. As we speak, the end stage of the tendering process is subject to delays. What is the implication of this for the “work for your benefit” scheme? Is the “work for your benefit” scheme still tied to the flexible new deal? Is it therefore likely to be affected by the circumstances that are apparently causing some turbulence in the flexible new deal tendering process?
Mr. McNulty: Briefly, the answer to the perfectly fair question is probably yes and no. Yes, in the sense that of course it is inextricably linked with the flexible new deal. And, notwithstanding periods of reflection and turbulence, there is no proposal to do anything other than bring in the flexible new deal by October 2009. The two are inextricably linked. For reference, and no more, we have asked the healthy list of providers who bid for the flexible new deal to revisit some of their assumptions. The original assumption was for a cohort of 100,000 long-term unemployed. We have now asked them to look at a range from 100,000 to 300,000. So it is a live contract process which, unlike this legislation, is very much connected with the economic downturn. Yes, the two are linked but no, at this stage there are no plans other than to pursue the start date for the flexible new deal of 1 October. In that context I commend the clause to the Committee.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
 
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