(11 years, 8 months ago)
Commons ChamberPerhaps the Minister would like to answer on that point. The Government said in their response to the Committee’s report that there will be a telephony system, which is good to know, although I understand that there will be no paper application form, so no one can phone up to request one. They expect about 45% of initial claimants to use that system to complete their claim. However, the person at the other end of the line will be using the same interface that online claimants see, so it will have to be designed in a way that works and is easy to understand. Access to a computer is one thing, but the customer-facing interface must also be easy to understand.
Does my hon. Friend agree that there is a particular concern for those in rural communities who might not have the necessary access to broadband and therefore do not have internet access, which will place them at an extreme disadvantage?
That is a problem in rural areas, but some urban areas, such as Glasgow, do not have superfast broadband either. Around 50% of claimants will be claiming at home on the internet, so that is really important.
I acknowledge the good work that my hon. Friend the Member for Aberdeen South (Dame Anne Begg), the Chair of the Work and Pensions Committee, has done on benefits and the implementation of universal credit, particularly the impact on vulnerable people. The Committee highlighted the fact that vulnerable people are usually benefit claimants and so will be subject to the overhaul of the benefits system, and that many communities, and particularly those who will need it the most, will be deeply impacted by the online universal credit—admittedly, a telephony service will be available—because they will have great difficult accessing it.
It is important that the DWP can implement the IT system. Back in 2008, in my former life as Minister for Social Development in Northern Ireland, I introduced a parallel system for household fuel payments. It was outside the benefits system, but it required the help of the DWP and was an extremely difficult job. There were people who fell outside it who should have been eligible, but because of the nature of the IT system things proved difficult. I say that by way of warning. Also, owing to topographical difficulties, some claimants might not have broadband access, which raises issues about payment methods, and then there is the question of passported benefits.
My party has been against the introduction of universal credit from the outset. It is a misguided and draconian change to the benefits system that will neither save money nor encourage people into employment nor protect the most vulnerable. We are for welfare reform, but not for unfair reform. We recognise the need for a simpler, more accessible benefits system, but these reforms are an attack on the most vulnerable and will actually end up costing the taxpayer more through transition and administration costs.
I am extremely concerned about the long-term impact of the tone that the Government have taken throughout this and previous debates on welfare reform. The persecution of those on welfare—labelled “skivers”—is socially divisive and acts to marginalise and ostracise many people suffering disability, illness and impairment. It is casting down the very people whom the Government claim to be encouraging into work.
As the Minister will be aware, social security provision is devolved to Northern Ireland and implemented under a separate system known as parity legislation. In a previous life, I had to implement some of it. Under that system, we normally have little scope for variation, which means that we will be subject to the worst elements of these measures. I welcome the flexibility arrangements the Government introduced in Northern Ireland enabling split payments—two payments a month, rather than one—and payments to be made directly to landlords, rather than to the claimant, but the core of the changes remains and will be extremely damaging for our people and economy.
We need additional flexibility, owing to our high level of disability—a throwback to the troubles, which left people scarred by violence and terrorism—and higher percentage of people dependent on benefits. I ask the Minister and his colleagues to work with the Minister for Social Development in Northern Ireland to introduce that flexibility. Earlier today, I asked the Minister of State in the Northern Ireland Office about this subject in Northern Ireland questions, but his reply left me aghast: he said we should be getting more people into work. That is fine and laudable, if the work opportunities are there, but they are not, so let’s get real. We need to support these people, not marginalise and persecute them. These measures are likely to push more people into poverty and, in doing so, increase the welfare budget.
I am clearly not as familiar with the situation in Northern Ireland as the hon. Lady, but I do not recognise her description of persecution, marginalisation and ostracism. The Committee accepted that there were definitely some people about whom we were far more worried than others, but we took the general view that the system had a reasonable chance of working for the majority of people, even allowing for implementation issues. I just do not recognise her description of the system.
I was saying that there were particular circumstances prevalent in Northern Ireland that perhaps did not exist in other parts of the UK because of the higher number of people who were more vulnerable and dependent on benefits. We are coming out of a conflict situation and, as a result of that legacy of conflict, more people rely on benefits and are, through no fault of their own, unable to access or find work. Those job opportunities, which might exist here in Britain, are not there.
I would like to finish this point and move on. The third report by the Work and Pensions Committee states:
“We consider that the implementation timetable is ambitious and that there is significant further work to be carried out to ensure that the needs of the most vulnerable claimants can be met.”
Let me turn to the cost of universal credit. The rationale given by the Government is that the legislation is about making work pay and helping people into work. However, the driving motivation appears to be cutting costs, with those on welfare easier to scapegoat than the tax avoiders in society. Moreover, the figures suggest that, rather than saving money, the changes will increase the welfare budget. The Government’s own impact assessment suggested that £2 billion was set aside to fund the transition to universal credit in the 2010 spending review period and that net transfer payments from the Government to households would be around £0.3 billion higher once universal credit was fully implemented and transitional protection exhausted, while the Institute for Fiscal Studies has valued the long-run cost of universal credit at around £1.7 billion in 2014-15 prices. Furthermore, it has been stated that £18 million—£13 million in resource and £5 million in capital—will be delivered to Her Majesty’s Revenue and Customs to cover the costs associated with implementing universal credit
That suggests that the new system will be not just ineffective, but expensive. Experience suggests to me that the costs of such a project are likely to go up rather than down, once the projections meet the reality, as was the case with the change from incapacity benefit to workplace capability assessments. That has been a difficult issue in Northern Ireland and a traumatic experience for those who have been put through it. The resulting volume of appeals—a high proportion of which were successful—illustrates just how ineffective the changes were. I feel—I suppose I say this with a certain level of temerity—that the Government do not seem to be heeding that lesson. I fear that there will be an even more catastrophic impact when universal credit is fully introduced.
I have made it clear that I am against the substance of this welfare reform and its introduction, and I am dubious that it will actually save any money, but I also feel that there are likely to be a number of technical and administrative issues that could be extremely problematic and that we could run into financial problems as the system is rolled out in Northern Ireland in April 2014. I ask the Minister to look at those. I would also ask the Chair of the Committee to look into this and perhaps work with the Social Development Committee in the Northern Ireland Assembly to see whether these issues can be worked through. The project has already been delayed because of IT problems, and I have had very little reassurance that that will not happen again.
The hon. Lady is absolutely right: the project has been delayed. Ministers told us for a long time after the announcement of universal credit that all new applications for out-of-work benefits would be treated as universal credit applications from October this year. It is now absolutely clear that that date will not be achieved. It might be a year later, or even some time after that, but the project has certainly been delayed.
I thank the shadow Minister for his intervention; I absolutely agree with him. The Minister will not be surprised to hear that I disagreed with him, because experience has taught us these things.
I seek clarification and an update from the Minister on the implementation of a computer system for the social security system in Northern Ireland to administer universal credit in line with the flexibilities that will be implemented there, notwithstanding—because of our special circumstances—the other flexibilities that I hope will be introduced. I understand that these are currently subject to negotiation and discussion between the Minister for Social Development and the appropriate DWP Ministers. What feedback will there be and what facility will be employed to use the lessons from the initial pathfinder areas in England to inform subsequent roll-out in Northern Ireland?
Governments do not have a great track record on implementing new IT systems, as seen with the Child Support Agency, the e-Border programme and the health service. The new universal credit system will likely require an even more complex system, incorporating real-time processing from pay-as-you-earn records. The Committee’s report makes it clear that there are significant concerns about the system’s capacity to operate between local and central Government. I fear that this will be even more challenging in the devolved Administrations. How satisfied is the Minister that there will be no more significant delays or cost overruns for the new universal credit payment system? Can he say with certainty that he will not be back before the House a year from now, explaining away delays and expensive setbacks?
Added to that, universal credit is to use digital self-service by default. That might sound good, but I have had little reassurance about the fact that the most vulnerable in society—particularly the elderly—are less likely to have access to computers or to be as proficient with newer technology. Reference has already been made to that issue in this debate, as well as to access to the internet and broadband, so I will not dwell on it further. However, notwithstanding our position on welfare reform and universal credit, I say to the Minister that it is important that the delivery of this benefit does not impact further on the vulnerable and disadvantaged in our community. It is important that the right systems are in place to ensure delivery is enabled, so that the most vulnerable can live a good life with some degree of benefit.
(11 years, 8 months ago)
Commons ChamberAs ever, the hon. Gentleman makes a powerful and important point. The disproportionate impact of the measure on different parts of the UK has not been thought through. The impacts on Northern Ireland clearly deserve a great deal more attention—certainly more attention than I am able to pay them this afternoon.
I congratulate the hon. Lady and her colleagues on bringing forward this timely motion. The divisions referred to by my hon. Friend the Member for Foyle (Mark Durkan) have been deepened because the Minister for Social Development in Northern Ireland handed back £15 million in the last monitoring round, rather than investing it in the provision of new-build social housing. That contrasts with what my party did when it held that portfolio.
The hon. Lady makes an important point. It is helpful that the Secretary of State is here to hear it. I hope that he will look again at the implications of the policy for Northern Ireland.
Foster carers are also likely to be adversely impacted by the bedroom tax. Foster carers are not routinely included in housing needs assessments, and the allowance that they are paid to cover the costs of meeting a child’s needs does not include a component for housing costs. The Government expect local authorities to support foster carers out of the heavily over-subscribed discretionary housing payments pot. However, as we have already seen, that money will not even cover the most pressing needs of disabled people in specially adapted homes.
Foster carers do an important and difficult job. Children requiring foster care have, almost by definition, been through traumatic experiences and are likely to require more intensive care and attention than other children. For that reason, many fostering services insist that foster carers do not take on other work outside the home. Moreover, more than half of foster carers do not receive a fee for fostering. The Fostering Network is afraid that the bedroom tax will exacerbate existing difficulties in recruiting foster parents. Given the already extreme shortage of foster carers, the Government need to look again at how the system will work in practice.
(11 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Dr McCrea. I am very pleased to introduce this short debate about personal independence payments and blind and visually impaired people, because although the Government have made some very welcome improvements to the descriptors in relation to people with sight disabilities, many questions remain, and I am afraid that my speech mainly consists of questions.
The principle of disability living allowance and—one hopes—of PIP is that it goes a little way towards levelling the playing field, enabling disabled people to do the things that non-disabled people take for granted. As my constituent, Alison, told me:
“Many blind and partially sighted people rely on DLA to meet the extra costs they face every day as a result of their sight loss. The help they get from DLA is not a luxury; it means that they can live independently. Without it, they would be unable to do everyday things that people with sight take for granted, like being able to get out to do food shopping, getting to doctor or hospital appointments, being involved in local groups, looking for work; in short, living a life that enables them to do more than just stay at home.”
So my first question to the Minister—it is one that has been raised with me by a number of people—is this: do the Government have any intention of means-testing PIP now or in the future?
The Government state that the receipt of PIP will be based on an assessment of individual need, and the support required as a result of the particular health condition. The new assessment will focus on an individual’s ability to carry out a range of key activities that are necessary to everyday life. But will the assessment be truly based on the needs of an individual or on the “condition” that they have?
We all know that disabilities can affect people in different ways. The first constituent who contacted me about this issue—she did so well over a year ago—is Margaret. Margaret progressively lost her sight over a period of time. Initially, she continued to work and even went to college. She used to take the local bus service, but she found that impossible as she was reliant on drivers seeing her white stick, and slowing down to tell her what number bus they were driving and whether it was the bus she was waiting for. Such experiences became too much for Margaret and she developed agoraphobia, making her unable to work.
Margaret is reliant on the DLA she receives to interact with the outside world and to communicate with her extended family, many of whom live outside her area. She has enhanced audio-visual equipment on her TV and computer, which allows her to send e-mails and enjoy TV programmes. That makes life just a little bit more bearable for her.
I thank my hon. Friend for giving way and for securing a debate on this important subject. Does she agree that PIP assessments must assess adequately the needs of blind and visually impaired people, and that there is a need on the part of Government to recognise properly the extra costs of mobility for people with severe sight impairment?
(12 years, 4 months ago)
Commons ChamberIn supporting the Opposition’s motion, I should like to bring to the debate the perspective of Northern Ireland, where there are separate but basically parallel social security systems.
Our society owes an enormous debt to individuals and organisations that care for friends, family and loved ones. That does not just make our society richer, but in Northern Ireland alone unpaid carers are worth more than £4 billion to the local economy. However, although the Government pay lip service to the work that our voluntary sector does, they are undermining it at every turn through their welfare policies, including the new work capability assessment for employment and support allowance and the move to personal independence payments from the existing disability living allowance.
In Northern Ireland, it has been estimated that some £500 million will be removed from the welfare budget as a result of the Government’s policies. That is clearly a move designed to cut expenditure rather than a constructive reform of the benefit system. By taking away financial support and introducing more stringent qualifications for personal independence payments and the work capability assessment, the Government will take a degree of freedom away from many people. That will only increase the pressure on the thousands of carers who will be left to carry the slack on top of their already demanding role.
In Northern Ireland, we have more disabled people and more carers than elsewhere. Does the hon. Lady feel that the impact will be greater on people in Northern Ireland than on those in any other part of the UK?
I agree, and when I was a Minister in Northern Ireland with direct responsibility for benefits, I saw every day of my working life the high proportion of people in receipt of benefits, particularly disability living allowance. That was a result of our divided and conflicted society and a legacy of the conflict itself, because we had a high proportion of people with mental illness. The new policies do not take that on board.
The Department’s subtext is clear—a presumption that many people receiving benefits do not need them. The Government claim that they are restricting the new benefit arrangements to those who need them most, but surely benefits should be granted simply to those who need them, without qualification. That is what any notion of the big society should be based on.
One of the main problems with the work capability assessment for employment and support allowance is the reasonableness of the mobility test. The test is whether a person can mobilise
“unaided by another person with or without a walking stick, manual wheelchair or other aid if such aid can reasonably be used.”
I know of constituents who have arthritis in their back, hips, legs and feet but are physically able to use a wheelchair. The test is hypothetical; even if a person has never been assessed for such a mobility aid, and such an aid has not been considered by their medical professional, they can be considered able to mobilise, despite their having a serious medical condition that would prevent them from mobilising without a wheelchair.
The incongruous element of the test is that, in many cases, a medical professional would not recommend a manual wheelchair for a condition such as arthritis, as it is a hugely life-changing and extreme intervention on someone’s mobility. Frustratingly, without the wheelchair element of the mobility test, many people with a physical illness would meet its criteria.
I am aware from constituents’ experiences at appeal tribunals that legal professionals also struggle with the lack of clarity on “reasonableness”. Such serious problems have left many facing uncertainty, which can cause severe stress to people who already face incredibly challenging circumstances.
I congratulate the hon. Lady on the comments she makes on behalf of those who are disabled. One issue with appeal tribunals is that doctors do not appear when they should, another is that people are asked whether they are mobile enough to get out of the building if there is a fire. If they say they cannot, they have to return home. Like me, the hon. Lady believes that those simple matters should be sorted out beforehand. Does she agree that a straightening of the appeal process is needed to make the process easier for applicants?
Like me, the hon. Gentleman would agree that that is not the responsibility either of the Department for Work and Pensions in England or of the Department for Social Development in Northern Ireland; it is the responsibility of the Appeals Service in Northern Ireland. That is a separate organisation, and those questions need to be directed to it for a resolution.
The Government must acknowledge that the introduction of personal independence payments might have a different impact in Northern Ireland. Approximately 100 people per 1,000 currently receive disability living allowance, compared with 50 people per 1,000 in Britain. We simply cannot ignore the fact that Northern Ireland society is emerging, as I have said, from decades of conflict, which have left many people emotionally and physically scarred.
Northern Ireland also faces a common transition difficulty with Scotland, England and Wales. In Northern Ireland alone, some 117,000 people will have their cases reviewed on the introduction of PIPs, which will require the testing of more than 1,000 applicants a week. How will so many people be re-tested in a manner that is just, reasonable and fair? That is an enormous concern. It is especially worrying given the aforementioned fiasco of the introduction of the work capability assessments for ESA. As I have seen in my constituency, the number of successful appeals demonstrates what happens when the Government make ill-advised and poorly thought-out changes to the welfare system. I am extremely concerned that we will face exactly the same problems when PIPs are introduced.
Although it is important to pay tribute to carers this week, we must remember that they are carers for 365 days of the year. They are at the heart of our families and our society, and the Government should help them rather than introduce ill-considered and ideologically motivated welfare cuts that will do nothing more than simply increase financial stress and burdens, and many other burdens within the family and the community. I urge—even at this late hour—the Government to reconsider. The Social Democratic and Labour party firmly supports the Opposition motion.
(12 years, 11 months ago)
Commons ChamberI support the motion before the House and I want to bring to the debate the perspective of a rural constituency in Northern Ireland.
There is irrefutable evidence that families, young people, the elderly, low to middle income earners and those in receipt of benefits have all found themselves squeezed, have less money to provide for essentials for daily living, and justifiably feel that they have been unfairly treated by the coalition Government. They also feel that the Government have removed the sense of fairness and equity from their vocabulary.
Proposed punitive regulations and legislation surrounding welfare reform will make the situation worse, making it more difficult for people to access benefits. At the same time they will be unable to obtain jobs. Although the concept is laudable, the jobs are not there because of the economic recession. The spectre of emigration therefore looms again, this time to Australia and New Zealand, and many small rural communities have found that young people who should be making a contribution to the economy through self-help, through the private sector or through the public sector, have simply gone away.
Added to this, the increases in fuel prices are leading to deepening fuel poverty, and the rising cost of motor insurance, particularly in Northern Ireland where it is more acute, prevent many young people from making themselves available to work where a requirement to drive is a pre-requisite on the job application. Levels of youth unemployment have risen, so child poverty has deepened. Levels of deprivation and disadvantage have deepened. We must not let the Government condemn us. We believe in self-help and in collaboration, and we have done that. We have developed our assets to their full potential but still that has not been enough because of the Government policies, which have been an onslaught on our rural economy, particularly in areas such as Northern Ireland where deprivation is at its most acute.
Against that background, we had the Government’s autumn statement yesterday. Although parts of it may be welcome, there are areas that require clarification. They centre on the cap on public sector pay, the rise in state pension age that goes with it, and the need for spending commitments to be fully subject to the Barnett consequentials. There is no doubt that in the face of the mounting economic recession, the 1% cap on public sector pay, following on from the current freeze, is derisory and unacceptable. It will prove highly controversial in a place like Northern Ireland, particularly in the light of today’s strikes.
Does the hon. Lady agree that not only will the cutting back on public sector jobs affect young people’s opportunities, but the 3% tax—the £2.8 billion that the Government hope to raise from the increase in pension contributions—will suck money out of the economy across the UK and drive families into poverty?
I do agree. In fact, we were the only party in the Northern Ireland Executive that voted against the hike in pensions, which we found totally unacceptable because it will impact on the most vulnerable in our society.
We would also like to know what the Barnett consequentials for the devolved Administrations will be in relation to the announcements in the autumn statement of the £16 billion youth contract and the £400 million for house construction projects.
I and my party colleagues support this motion because it clearly highlights the deepening problem of poverty right across Northern Ireland and because we support our colleagues in the Labour party in Britain.
(13 years, 4 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I commend my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) for securing this important debate. I come from Northern Ireland and represent a Northern Ireland constituency. Along with my colleagues from the Democratic Unionist party, we want to bring to the debate the perspective from Northern Ireland, where devolution has given us the prime responsibility for apprenticeships and for tackling youth unemployment. However, social security and jobseeker’s allowance are issues of parity, because the funding comes directly from the Treasury here in London. We are keen and anxious that the levels of youth unemployment are gravely reduced.
Some of the issues go back to educational attainment. For example, one in every five children leaves primary school in Northern Ireland without proper literacy and numeracy skills, which can be directly correlated to levels of economic inactivity later on, because such people are not properly equipped to undertake skills and training. That is an issue throughout the United Kingdom. Although we come from different political perspectives, we are anxious for youth to be geared and invested with the skills and training necessary to ensure that they do not get involved in violence and terrorism, such as we have witnessed for the second night running in east Belfast. That road leads only to a different way of life, and we want youth to be channelled into positive activity, so that deprivation and social disadvantage do not mean no active work or engagement.
To emphasise the scale of the problem, we need to look at the stark figures. The annual increase in JSA claimants in Northern Ireland is the largest among the UK regions. Over the past year, 3,900 people have joined the dole queue, and that is an increase of 7%, compared with a rise of 0.3% in the UK as a whole. Critically, the trend of increasing, long-term youth unemployment is most alarming, with Northern Ireland experiencing a sevenfold increase in long-term unemployment among 18 to 24-year-olds since the recession.
I do not want to indulge in ostrich economics. We must rebalance our economy in Northern Ireland, and that is why we are seeking the assistance of the Treasury. Some of us might have different views about the degree to which corporation tax should be lowered to attract foreign direct investment—I think it should be lowered—but I agree with my colleagues that small indigenous businesses must be encouraged as well to provide the opportunities for young people to be skilled.
The hon. Lady made a point about small indigenous businesses, but surely small businesses can be encouraged to take on more apprentices and young people by reducing the red tape and bureaucracy, as well as by the accessibility of bank credit. Currently, small businesses are experiencing such difficulties, which have a domino effect.
I thank the hon. Gentleman for his helpful intervention. I agree that the Government, with the British Bankers Association, need to tackle directly the lack of availability of credit facilities for young people who have the skills to set up in business. Also, a prevailing view is that the Government’s failure to act with the necessary urgency and immediate action casts doubt on the coalition’s ability to deal with this crisis before it becomes a structural liability that will weigh down on our economy in years to come. Over the past 20 years, successive Governments have instilled in young people, quite rightly, the sense that by investing in their education, they are investing in their future career. To have them leave university during a stagnant job market is a fundamental failing, and another failing is in the whole area of welfare reform. We are encouraging people to go into work rather than to apply for benefits, which is all very well if the job and skills opportunities are available but, sadly, in many instances, that is not the case.
We must be aware of the economic cost that goes hand in hand with the social cost of youth unemployment. The London School of Economics found that each young person in long-term unemployment costs the Exchequer up to £16,000 a year. The Prince’s Trust has stated that youth unemployment in Northern Ireland costs up to £4.5 million a week, which is almost £250 million a year. The economic cost of the failure to tackle the problem could not be more evident.
In conclusion, while the Northern Ireland Assembly and Executive must not shirk their responsibilities, there is no doubt that central Government have a profound role in influencing devolved Administrations. Youth unemployment lies at the centre of a constellation of other problems, including local economic performance, education, welfare dependency and the state of local infrastructure. It is most important that the Minister responds positively on how we can collectively tackle this pernicious issue, because we must ensure a future for our young people, that the issues of educational disadvantage and skills deprivation are properly dealt with and that a university degree is seen as on a par with skills training, and vice versa, because as soon as the public sees that equality of advantage, we will really be tackling youth unemployment.
(13 years, 11 months ago)
Commons ChamberMy hon. Friend has raised an important facet of these changes, and I can assure her that the Department is already in discussions with Motability about how it might be handled.
Have the proposals for disability living allowance been subject to an equality impact assessment, and if so, what has been the result?
As the hon. Lady may be aware, when elements are included in primary legislation, statutory equality impact assessments are published at the time that the legislation is published—and will be available to the House.