Welfare Reform Bill


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Mr. Clappison: I shall study the Minister’s words carefully because the subject is important. We think that it is reasonable to have a debate about the age at which such requirements are placed on lone parents. We have no problem with the general vision of getting people back to work and of conditionality in appropriate circumstances. The Minister mentioned going further, and we will not be slow to come forward with ideas about how the Government can go further than they are at present—much further in some cases. He referred to giving help to parents of children below the age of three—help with interviews and making suggestions and assistance available. There is no problem with that either.
What is significant about the Government’s proposals, however, is the way in which things change at the age of three. Some of the right hon. Gentleman’s remarks were fair, but he referred to a mechanistic approach on our part. However, when I look at the Government’s proposals, I think mechanistic is rather a good word to use to describe them. I will quote so that the Committee will know exactly the issues at stake as we consider the amendment
“Age of youngest child—1-2: Conditionality Grouping—Progression to Work: Required to attend Work Focused Interviews and agree an action plan. They are not mandated to undertake any activities recorded on the action plan or any other activities, although they will be encouraged to do so on a voluntary basis...3-6: Progression to Work: 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.”
We apprehend, since it has not been said to the contrary, that those parents will also be subject to the full rigour of the sanctions regime in the same way as others in the sane conditionality group.
We need to reflect on these important matters and to think carefully about the question of age and, on that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Paul Rowen: I beg to move amendment 57, in clause 2, page 4, line 26, at end insert
‘unless the person is caring for another person for 35 hours or more per week.’.
The Chairman: With this it will be convenient to discuss the following: amendment 58, in clause 7, page 13, line 16, at end insert—
‘(3A) In exercising the powers contained in subsections (1) to (3) the Secretary of State shall not require people caring for at least 35 hours per week who are receiving income support to claim jobseeker’s allowance.’.
Amendment 59, in clause 8, page 14, line 11, at end insert ‘including any caring responsibilities.’.
New clause 3—Review of carers’ benefits
‘(1) The Secretary of State must undertake a review of the benefits to which carers are entitled, reporting to Parliament on the outcome of this review no later than six months after the Welfare Reform Bill receives Royal Assent.
(2) The Secretary of State must involve carers in this review and must publish a report on the findings of the review.’.
Paul Rowen: Notwithstanding the Minister’s comments and my party’s general views on the Bill, the Government are seeking to introduce major changes in legislation. We will do two things. We will put forward alternative policies and seek to amend what the Conservative Opposition have described as mechanistic and what we would describe as half-baked and ill thought-out.
Amendments 58 and 59 and new clause 3 are probing amendments that deal with issues associated with carers and the carer’s allowance. Amendment 57, which relates to clause 2, removes the requirement to engage in workplace activity for a person who is caring for another person for 35 hours or more per week. The current lack of provision for carers does not sit well with the research that the Department has carried out, including the Gregg report. Some 230,000 people satisfy the criteria for carer’s allowance—that is, they are caring for someone for at least 35 hours a week and currently receive income support or income-based JSA. We would welcome clarification that people in that category will not be required to undertake work-focused activity. That is consistent with what was set out in Paul Gregg’s report, and which was confirmed in the White Paper: that people providing substantial care should be in the no-conditionality group.
There are several other related issues, such as the current inadequacy of the carer’s allowance, which is the lowest of all the income replacement benefits at £50.55 a week. The earnings limit of £95 a week prevents many carers from progressing into paid work, and the rule banning more than 21 hours of study per week traps carers on benefits and in low-status jobs. The allowance cannot be paid alongside a state pension, so it leaves many older carers with no recognition of their caring role or the assistance that they need with the costs of caring. I am aware that the Government have promised to overhaul the carer’s benefit, but that seems to have been completely overlooked in the Bill. That is a disappointment. The Government are committed to ensuring by 2018 that no carer is forced into financial hardship by virtue of their caring role, as set out in the national carers strategy, “Carers at the Heart of the 21st century: families and communities”, which was published in June last year.
The Work and Pensions Committee called in August last year for an overhaul of carer’s benefits and set out a prescription for reform that would tackle many of the problems I have just outlined. This clause proposes that people receiving income support, income-based JSA or income-based ESA will not be required to undertake work-related activity, as specified in these regulations. I hope that the Minister can give us that clarification, as well as saying why no opportunity has been taken in the Bill to deal with some of the inequalities relating to carer’s allowance.
Amendment 58 amends clause 7 and, again, ensures that in exercising the powers the Secretary of State will not require people to take part who are caring for at least 35 hours and are receiving income support. This is a probing amendment because we want to hear a commitment from the Government that they will not move carers off income support until there are clear and detailed plans setting out how the benefits system will be reformed over the long term. There is a need for further analysis of the ESA. The clause provides for the abolition of income support.
Carers UK welcomed the commitment in the White Paper, “Raising expectations and increasing support”, that carers receiving income support will not be moved off it until there is a clear and detailed plan setting out the long-term reform of the benefits system. The proposal in the Green Paper, “No one written off”, to move them to a modified version of jobseeker’s allowance caused distress and anger among carers, who saw it as insulting to receive a benefit that implied that they were not working already. Carers UK would welcome a reiteration of the Government’s commitment. When will we get further details of the clear and detailed plan?
Amendment 59 would add the instruction “including any caring responsibilities”. Again, we want a commitment from the Government that the changes in the Bill will not affect the commitments that have been made to this very vulnerable group until we have the long-term changes. That is also the purpose of new clause 3, which includes a requirement on the Secretary of State to
“undertake a review of the benefits to which carers are entitled, reporting to Parliament on the outcome of this review no later than six months after the Welfare Reform Bill receives Royal Assent.”
We want carers to be involved in that review and the findings to be published.
Given the Government’s previous commitments to carers, we believe that the promise of a review within six months of the Bill receiving Royal Assent will provide reassurance on the needs of carers. They undergo discrimination at the moment and the caring duties that they carry out are worth millions of pounds each year. Before some of the changes in the Bill are introduced for carers, there should be a full review. I hope for and look forward to the Minister’s commitment to reaffirming and protecting the interests of carers, particularly in relation to the clause.
Mr. McNulty: No one doubts that these are important matters. As was said earlier, the broader notion that we should move to a simplification of the benefits system and eventually to a single working-age benefit is the right sentiment. However, perhaps we got carried away in our enthusiasm for that journey when we insisted in the Green Paper that carers would all transfer to jobseeker’s allowance. I was happy to work with the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Chatham and Aylesford, to review that aspect of the Green Paper. [Interruption.] I am not allowed to say “Jonathan”.
For the reasons suggested by many carers’ organisations, we have set aside the notion that all carers should be transferred from IS to ESA. One reason for that was that doing so would have suggested to carers that they do not already have a job. In many instances, caring for their family is very much a full-time job. We were very clear in the White Paper—much read out by the hon. Member for Rochdale—at least in spirit, that we would not be migrating, for want of a better phrase, carers on IS to JSA.
12.30 pm
So what are we left with? We are left with the hon. Gentleman asking me to confirm the content of the White Paper, which, of course, I am very happy to do. We made very clear in the White Paper, and in our response to Professor Gregg, that we accepted his suggestion that anybody involved in full-time caring, above the 35 hours that the hon. Gentleman suggests in his amendments, should not be subject to conditionality at all. That is the import of both amendments 57 and 58, and given that we have said that as recently as in the White Paper, I can confirm that full-time carers will not be subject to conditionality. I hope that deals with amendments 57, 58 and 59.
New clause 3, which calls for a review of carers’ benefits, is, again, what was spelled out in the White Paper. I listened very carefully to the hon. Gentleman, and he said almost word for word what I am implored by officials to read out:
“As a result we have amended our proposal”—
that in the Green Paper—
“and will not move carers from Income Support until we have”—
and I think these were the exact words the hon. Gentleman used —
“a clear and detailed plan setting out how we will reform the benefits system over the longer term.”
That commitment is, and remains, absolute. We are very mindful of the contribution carers make in this country—that is beyond doubt across all parties.
Much of what the hon. Gentleman suggests about extra areas that need looking at will be encompassed in that study. We may need to take a range of decisions as this work progresses, including moving people to different benefits under transitional arrangements. Many carers, however—as I am sure the hon. Gentleman knows—want to work; some already receive jobseeker’s allowance with the carer premium. But the Government do appreciate that caring responsibilities often make it difficult or impossible for carers to consider taking up paid employment, and we have no intention of requiring carers to seek employment or of reducing the level of benefit income they receive.
As the hon. Gentleman also implied, last year we published “Carers at the heart of 21st century families and communities”. This followed the major review of our national strategy for carers, which was an enormous consultation exercise. He will know that the income taskforce, which was set up to examine the financial support available to carers, focused particularly on carers’ benefits. Many of the other points that he made—perfectly valid ones—regarding some of the criteria for benefits will be the focus of that taskforce, including the interface with that study.
Everyone agrees that benefits for carers should be reformed over the long term. We know also that, working with colleagues in the Department of Health, we need to be far more integrated in our broader approach to carers across government. We accordingly made a commitment to look at the full picture not just in the context of longer term plans for welfare reform, rather than piecemeal changes, but in the broader context of what, from the social care side, we are doing with carers from the health perspective.
There is a new standing committee on carers, which is overseeing the delivery of the overall carers’ strategy. Much of what we determine in the wider reform of carers’ benefits will feed into that process. I can therefore absolutely assure the hon. Gentleman that his amendments on 35 hours and full-time carers and on the migration of carers from IS to jobseeker’s allowance, and the broader points that he makes in new clause 3, are covered in the White Paper. I say in the gentlest of terms that, given what I have said, his amendments and the new clause are not required. While I accept the spirit in which he made his case, I ask him to withdraw the amendment.
Paul Rowen: I am grateful to the Minister for those comments. In our view, it was important that those commitments be read into the record. Given that we have got those, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr. Clappison: I beg to move amendment 6, in clause 2, page 5, line 12, leave out paragraph (e).
The Chairman: With this it will be convenient to discuss amendment 14, in clause 3, page 10, line 24, leave out subsections (2) and (3).
Mr. Clappison: Amendment 6 refers to a specific point in the context of work-related activity requirements for partners: the work-related activity requirement for partners where a claimant has more than one partner—in other words, where there is a polygamous relationship. Polygamous relationships are recognised elsewhere, in social security legislation and policy, but we would like a bit more detail from the Government about what will happen in this instance.
Subsection 2D(2)(e) of the Social Security Administration Act 1992 establishes a regulation-making power for determining, in the case of a claimant in a polygamous marriage, which of the partners is required to undertake work-related activity—or, indeed, whether all the partners are. The purpose of this amendment is to ascertain the principles that will lie behind this process, since nothing is said in the notes on clauses about the principles that will operate. On the face of it, it appears that a number of questions have to be answered. For example, in which cases will one, some or all of the partners be required to meet the requirements? If only one or some of the partners are required to meet the work-related activity requirements, how will the decision be made as to which one, or ones? There is no clue in the Bill or elsewhere as to how these decisions will be made. Therefore, we think it a proper use of parliamentary scrutiny to ask the Minister for a bit more detail as to how this will work in practice and what principles will be adopted to determine these issues.
Amendment 14 simply deals with the same issue in a different context—that is, in respect of a joint claim for jobseeker’s allowance. That raises the question of who are to be regarded as joint claimants and whether there is a joint claim for jobseeker’s allowance. Again, how will that be determined? Which of the partners will be part of the claim, and which will not?
 
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