Employment, Social Policy, Health and Consumer Affairs Council (Agenda)

Lord Grayling Excerpts

Thursday 21st June 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The Employment, Social Policy, Health and Consumer Affairs Council will be held today, 21 June 2012 in Luxembourg. I will represent the United Kingdom.

The main discussion will be a policy debate on the Europe 2020 strategy: contribution to the European Council (28 and 29 June 2012)—European semester. I will intervene to state that Council recommendations are the most important contribution that the Employment and Social Policy Council (EPSCO) can make to the European Council on structural reforms for growth. I will further state that the Commission should work more with member states to develop recommendations which are still ambitious and challenging but take into account the national context so that they are also credible and deliverable.

There will be progress reports on four topics: legislative initiatives for posting of workers, the European globalisation adjustment fund (2014-20), minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (electromagnetic fields) and the principle of equal treatment of persons irrespective of religion or belief, disability, age or sexual orientation.

In addition, Ministers will consider two sets of Council conclusions, covering responding to the demographic challenges through enhanced participation in labour market and society by all, and gender equality and the environment; enhanced decision-making, qualifications and competitiveness in the field of climate change mitigation policy in the EU.

The presidency will seek the support of the Council for a partial general approach on the programme for social change and innovation (PSCI). Ministers will also be invited to endorse the main messages from the Social Protection Committee’s report on pensions’ adequacy.

Under any other business, the Commission will provide information on national Roma integration strategies and the ratification and implementation of the UN convention on the rights of people with disabilities and the presidency will provide information on the conferences held during the Danish presidency. The Commission and presidency will report on the G20 meeting of Labour and Employment Ministers, and finally, the Cypriot delegation will outline the work programme of their forthcoming presidency.

Social Security Advisory Committee

Lord Grayling Excerpts

Tuesday 19th June 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

Later today, my noble friend the Minister for Welfare Reform will publish the outcome of the review of the Social Security Advisory Committee. I am pleased to announce that the Government support the continuation of the Committee in its current form. The Department for Work and Pensions has completed a robust examination of the Committee’s functions, delivery arrangements and governance structure. The review was carried out in line with the Cabinet Office’s key principles for reviews of non-departmental public bodies. The SSAC is a cost-effective advisory NDPB whose functions are integral to improving the quality of policy making and of secondary legislation in the Department for Work and Pensions. My noble Friend will also place a copy of the review report in the House Library later today.

Parkinson’s Disease (Employment and Support Allowance)

Lord Grayling Excerpts

Tuesday 19th June 2012 Westminster Hall

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

It is a pleasure to serve under your chairmanship, Mr Leigh. I congratulate the hon. Member for Halifax (Mrs Riordan) on securing the debate.

I am glad to have the opportunity to set the record straight on many of the things the hon. Lady said. However, let me start by saying that we understand and are hugely sympathetic; we care very much about people with Parkinson’s. It is about providing the right mix of support for those people who can still remain in the workplace. It is clearly better that they should be able to do so. When they reach a point where that is no longer a possibility, it is entirely appropriate for the state to provide them with unconditional support. However, I am afraid that the picture painted by the hon. Lady was rather one-sided. I hope to set out why I think she has got it wrong.

The hon. Lady talked about cold-hearted and disgraceful reforms, and about a tick-box system. I gently remind her that that system was introduced by her party when it was in government. In the past two years, we have tried to improve and humanise it. When Professor Harrington first reported on this, he said that one of the great failings of the system we inherited was that there was not enough of a human dimension. He also said that we were not making enough effort—by “we”, he meant the system set up by the previous Government—to secure a proper mix of evidence about an individual. I will briefly walk the hon. Lady through the changes that we have already made. I will also explain to her what is happening about the gold standard review—the work on that has already started. I want to say a little bit about the support we provide to help those people who can still work to do so. On all those matters, she is wrong in the conclusions that she has reached.

Let me be clear and say that there is no such thing as the perfect system. We will never get this entirely right. I would love to say that we could, but these are difficult judgments to make. Often, we are encouraging people to take a step that they may be reluctant to take. If one loses belief in one’s ability to work, it may take some time to be persuaded that there is a way of getting back into the workplace. There is no doubt that this is a difficult process for all those who go through the work capability assessment and the reassessment process. We want to do the right thing. That is why we have introduced changes that increased the size of the support group, and why we have taken steps to ensure that we broaden the unconditional support available to people who are some of the sickest and most challenged in our society. However, we have to try to find the right balance.

I certainly believe—we certainly believe, and I thought it was the view of the hon. Lady’s party—that, where it is humanly possible, it is better either to get people back into the workplace or to help sustain them in the workplace before they eventually reach a point where that is no longer possible. Parkinson’s disease is a deeply distressing and difficult condition. As she said, it is a continuously degenerative condition—it fluctuates, but there is no cure. Of course, it is difficult and stressful for the families of those who suffer from it and for the sufferers themselves. However, it is certainly better—I am sure that all those who work with Parkinson’s sufferers agree—to provide support to keep those people in the workplace in some form of work for as long as possible. It is better for them in terms of quality of life and their overall morale, and it is likely to enable them to lead a longer and more fulfilling life with the condition.

Let me start with the process itself. As I said, I do not pretend that it is perfect, but I think that we have made significant improvements in the past two years. We have implemented all the recommendations in Professor Harrington’s first report. We took steps that humanised the process so that, instead of getting the classic computer-generated letter from Jobcentre Plus saying, “You will attend an assessment”, at each stage of the process, people get phone calls that explain in detail what will happen to them. We ask and encourage them to bring forward additional evidence.

We have rebalanced the process so that the work capability assessment plays a smaller role in the decision than was originally the case. We have done that because we want to take into account additional medical evidence about a person’s condition so that it is not just a computer-generated exercise. We must bear it in mind that the decision is not taken by the assessor who carries out the assessment, but by a decision maker in Jobcentre Plus, who looks at the assessment and the ESA50 form that the claimant has submitted setting out the nature of their condition, as well as any medical evidence that they wish to submit to Jobcentre Plus. We have introduced a process of automatic reconsideration—a second opinion in Jobcentre Plus—so that if we have got it wrong the first time, there is a quick, simple process for looking at that decision again. The process does not require the claimant to go immediately to appeal; they get a second opinion before they reach that stage, so I think we have a better process.

[Jessica Morden]

What percentage of people are now successful on appeal?

[Chris Grayling]

I cannot give the hon. Lady the updated numbers, because they are national statistics and will be published shortly. However, they are still too high. We are in dialogue with judges who preside over tribunals to look at the reasons for that. The reality is that a large number of people go to appeal because they have the opportunity to do so. Sometimes they fall into the fit for work group, which, typically, does not apply to people with Parkinson’s. Of course, they are losing money, as was set out in the process that the previous Government set up, so they have a particular reason to appeal. However, we are working as hard as we can to ensure that the decisions are right first time so that we minimise the number of tribunal successes for claimants. We want to get it right; I do not want people to have to go to tribunals to overturn decisions.

[Jessica Morden]

Is it not true that the last time we saw those figures, between 40% and 70% of people were successful on appeal, depending on whether they were represented or not?

[Chris Grayling]

The average figure was about 40% in the last figures that were published. That represents only about 6% of overall claimant numbers. In the case of decision making for Parkinson’s, people are much more likely to end up in a support group. On the average numbers for new claims going through a work capability assessment, 40% are entitled to ESA; 13% are put in the support group; 26% are put in the work-related activity group, and 60% are fit for work. That is the whole gamut of applications.

For Parkinson’s, 71% are entitled to ESA; 33% are in the support group; 38% are in the work-related activity group, and 29% are fit for work at that stage. We expect those who are fit for work—as they reapply and are reassessed as their condition develops—to enter the work-related activity group and then the support group. Of course, when people are not able to work again, they will receive support in the support group.

The hon. Member for Halifax mentioned the case of the constituent affected by the time-limiting proposal. She is right to highlight that. It applies only to people in the work-related activity group and only to people who have money in the bank or who have another form of household income. It establishes the same principle to contributory ESA as has always applied to contributory jobseeker’s allowance. In the way our welfare state works, if someone is a JSA claimant with another form of income or with money in the bank, we have always allowed them to get a contribution back in recognition that they themselves have paid contributions. They get six months of contributory JSA if they have other financial means. We have simply applied that same principle to contributory ESA. We have done that for reasons that the hon. Lady well knows. We face enormous financial challenges, and we have had to take back that part of our welfare state into the safety net that it was originally intended to be, and we have had to accept that we cannot afford to pay benefits to people who have got another form of household income. We debated that extensively in the welfare reform debates. I would rather that we had not had to make that decision, but financial necessity meant that was inevitable.

We are not talking about people who have no other means of support. They are not people whose condition has developed so that they can no longer realistically work again. They are people in the work-related activity group who may be able to return to work with help and support, but possibly not in the profession that they worked in previously. It may be that their condition has made that impossible, but that does not mean that it is impossible for them to work.

[Sheila Gilmore]

The Minister has given us figures for the proportion of people in the work-related activity group, but he has not really addressed the issue of Parkinson’s. The figures that the Parkinson’s Society presented suggest that 45% of claimants are being placed in the work-related activity group. Such people will have lost their previous jobs and are often in their 50s and early 60s. With the loss of the contributory benefit, they have to use up their retirement savings. Will the Minister address the specific issues around Parkinson’s?

[Chris Grayling]

Nobody has to spend their pension funds while they are of working age. Realistically, if people put aside money for a rainy day, and they become ill and lose their job, but have money in the bank, what else constitutes a rainy day? There will always be limitations on the amount and breadth of support that the state can provide through the welfare state. There were limitations under the hon. Lady’s Government; there are under our Government. The constraints on us are greater than on hers, because the money is not there any more. The reality is that the state has never provided unconditional support for everyone. There are limits inevitably created by an individual’s financial means.

We have only five minutes remaining, so let me touch on a couple of the other points that the hon. Member for Halifax raised. Let me give the context for the gold standard review. We invited the mental health charities and the fluctuating condition charities to bring forward their thoughts on how we could adapt the work capability assessment to reflect more closely what they believed to be the best approach. I am open about this. I want continually to improve this process and I want it to be as good and effective as possible.

What the charities came back with was extremely ambitious, not just in changing the current descriptors. It would involve rewriting and recasting the whole work capability assessment for not only fluctuating conditions or mental health problems, but physical conditions as well. It would involve re-engineering all the software and the assessment. It would probably be a two-year process and extremely expensive. Before we embark on that process—I am open to looking seriously at that—we need to understand the impact of the changes.

More than a year ago, I was told by the charities that if I implemented the internal review that I had inherited from the previous Government, with recommended changes to the work capability assessment, it would disadvantage particularly people with mental health problems. The advice that I had internally was that we had done a similar review to the gold standard review on the work capability assessment, as it was then structured, and it showed that more people with mental health problems would end up in the support group—the opposite of what the charities had said. History has shown that the internal advice was right and the charities were wrong, so I really want to get this right. I do not want to embark on a grand project to reorganise this without getting it right.

Work has started on the gold standard review. The terms of the project have been agreed. There are meetings between the Department and the charities virtually on a weekly basis at the moment. The work is being carried out over the next few months. We will judge the outcome of that work and ascertain whether there is a need to make changes or whether the charities have got it wrong. We have to do that. The hon. Lady would expect us to do that. In the meantime, we are looking to embed some of the recommendations that they have made into the way the ESA50 form is structured. If that enables us to tease out more information that is of value to the decision maker, informing the decision about a person’s condition, that is clearly the right thing to do.

The other point that the hon. Lady made was about the support not being there for people in the work-related activity group. That is not correct, either. Every single person in the work-related activity group on ESA has access to the Work programme tomorrow. They will receive specialist back-to-work support from one of the providers operating up and down the country—a mix of public, private and voluntary sector organisations, some with specialisms in fluctuating conditions. There is a specialism within each supply chain for those who are on ESA. One of the challenges that we have at the moment is trying to encourage more people to come forward and take advantage of that support. It is absolutely not the case that people cannot access help and support. Everyone has access to support, and it works.

We had a case a few months ago—not a Parkinson’s sufferer, but a gentleman from the north-east who was partially sighted and in a wheelchair. He had applied for thousands of jobs and got absolutely nowhere. He did not believe he could get back into work in a part of the country where the labour market is weak. He joined the Work programme and within a small number of weeks was in employment with a job and his life turned round. That, fundamentally, is what this is all about. I know it is difficult and sometimes challenging. I know that it takes many people through a process that they do not want to go through, because they do not actually believe that they can make a return to the workplace. Is it not better if we can help them get there? Even if they happen to have had to give up the profession that they have had for years, because their condition makes that no longer possible, surely it is better to get them back into doing something that they can do with their condition, that can keep them in the workplace for a few more years and give them a chance to live a more fulfilling life. That is what we are trying to achieve. We will not always get it right. The system is not perfect. It never can be perfect. I wish that it could be, but it cannot.

In conclusion, I can tell the hon. Lady that this is absolutely about saving lives, not saving money. I genuinely want to see more people given a chance to live a more fulfilling life. We will do everything that we can to help them, but those who cannot work again will get ongoing unconditional support.

Mandatory Work Activity

Lord Grayling Excerpts

Tuesday 12th June 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

Today, the Department for Work and Pensions is publishing the next set of official statistics on mandatory work activity, accompanied by an impact assessment, which forms the first part of the evaluation of the policy. Later today I will place a copy of the impact assessment in the House Library.

I am also pleased to announce the Government have decided to expand the mandatory work activity scheme.

The expansion will enable Jobcentre Plus to make between 60,000 and 70,000 referrals to mandatory work activity each year, based on the current experience of the scheme, at a cost of an additional £5 million per annum. This decision has been taken as the result of careful consideration of the positive impacts demonstrated within the impact assessment.

The extra places will help ensure Department for Work and Pensions advisers can provide those jobseekers that require it the opportunities to gain experience of work and help focus their minds on their search for work.

In addition, the Department is currently evaluating the impact of a trial scheme carried out in London, Wales and the west midlands where most jobseekers who incurred a second sanction were specifically considered for a referral to mandatory work activity.

We will make a further announcement about this trial and our future plans later in the year.

Employment Support

Lord Grayling Excerpts

Tuesday 15th May 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The DWP’s Work programme providers are required to ensure that stringent controls are in place to guard against fraud and to adhere to high standards of compliance in the operation of our contracts. By its innovative payment by results design, the Work programme also provides significantly greater protection against fraud than previous employment programmes.

In March 2012, against a background of public commentary on A4e, the Department was made aware of an allegation in respect of their separate mandatory work activity contract. This is very different from the Work programme. It is much smaller, shorter and focused on providing brief spells of work-related activity to individuals who will benefit from such activity. In contrast the Work programme aims to deliver sustained job outcomes for the long-term unemployed.

In the light of the allegation received, the Department announced it would audit its commercial relationships with A4e. The Department’s internal audit and investigations team undertook this audit, supported by Ernst and Young, and examined the controls operated by A4e on all its current contracts with DWP.

The audits for the Work programme, the new enterprise allowance programme and mandatory work activity are now complete. They have found no evidence of fraud in any of these contracts.

The original allegation suggested that A4e employees may have claimed payments for mandatory work activity participants who had not in fact been placed in work. The team investigated every MWA claim from the A4e office related to the specific allegation (Epsom) and a significant sample (20%) of all the other A4e claims under this contract. The sample evidence established that 97% of payments made related to a real participant who had been placed in a work-related activity. In the remaining 3% of cases, DWP investigators were nevertheless satisfied that the anomalies were attributable to inadequate procedures rather than fraud.

However, while the team found no evidence of fraud, it identified significant weaknesses in A4e’s internal controls on the mandatory work activity contract in the south-east. The documentation supporting payments was seriously inadequate, and in a small number the claim was erroneous. There was also a high incidence of non-compliance with other relevant guidance (including A4e’s own processes).

The process established prior to March fell significantly short of our expectations. As a result, the Department has concluded that continuing with this contract presents too great a risk and we have terminated the mandatory work activity contract with A4e for the south-east.

Contingency plans are in place to ensure there is continuity of support for participants in the mandatory work activity programme.

We have made clear to A4e that we continue to require the highest standards of governance in relation to all their other contracts. We are reminding all our other providers of their obligations and our requirements in this regard and, should any further allegations arise, we will examine the evidence thoroughly.

The Department will reflect on how it can further improve its processes in the light of these audits to address any remaining control risks across all contracts and providers.

Recent coverage has also prompted complaints about service levels on past employment programmes where, unlike the Work programme, the emphasis was on activities undertaken rather than on job outcomes. While this has not been part of our investigation, the Department is considering what further steps can best ensure that providers meet their minimum standards, and participants are clear about procedures for complaints.

Work Programme (Prime Contractor)

Lord Grayling Excerpts

Thursday 10th May 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I am pleased to inform the House that there has been a recent change in the prime contractor network delivering the Government’s flagship Work programme.

Interserve, the international support services and construction group, on 4 May 2012 announced the acquisition of the Work programme provider, Business Employment Services Training Ltd (BEST), who are one of the UK’s leading providers of training and development for jobseekers and employers. Interserve is already involved in the Work programme through its Rehab Jobfit joint venture, which has contracts in Wales and the south-west.

This acquisition increases Interserve’s participation in this key area of Government policy and shows the continued appetite for further investment in the welfare-to-work market. I am delighted by this investment by Interserve which underlines the financial commitment being made by some of the UK’s leading employment and training organisations into helping the long-term unemployed find sustained employment through the Work programme.

Oral Answers to Questions

Lord Grayling Excerpts

Monday 23rd April 2012 Commons Chamber

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

18. What progress he has made on the youth contract; and if he will make a statement.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The youth contract was successfully launched on 2 April 2012. It builds on existing support available through Jobcentre Plus and the Work programme, enabling young people who are unemployed to look for work, gain work experience and skills, and find real, lasting jobs.

[Karl MᶜCartney]

I thank the Minister for that illuminating answer. What assessment has been made of the impact of the work experience programme, which is being expanded under the youth contract?

[Chris Grayling]

We published the latest assessment of the effectiveness of the work experience scheme last week. It showed that the people who participated were 16% more likely to be off benefits 21 weeks after starting than a similar group who did not. It is worth stating that that is similar to the success rate of the future jobs fund, at a 20th of the cost.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Can my right hon. Friend tell the House how the youth contract is being received by employers across the country?

[Chris Grayling]

We have had enormously gratifying levels of support from employers for the youth contract, in terms of their willingness both to hire and to give apprenticeships to young people. In particular, I wish to pay tribute to all the companies, large and small, around this country, including in your constituency, Mr Speaker, and that of my hon. Friend, which are providing work experience opportunities for young people. We know that such opportunities give them a much better start in life than those who do not have that experience.

[Sheila Gilmore (Edinburgh East) (Lab)]

Press reports have suggested that the amount of extra support being given to young people might be as little as a text message. Will the Minister be specific about how much face-to-face advice and support young people are getting under this programme?

[Chris Grayling]

Much more than was the case under the previous Government. We do not apply a one-size-fits-all approach; we do not drag somebody in from a work experience placement or from a sector-based work academy to do an interview with them. However, we keep in contact with everyone every week, and when people are not working—when they are not in a work experience placement—we are now providing weekly contact with young people, as opposed to the fortnightly contact that was the case under the previous Government.

[Karen Bradley (Staffordshire Moorlands) (Con)]

One message coming from Staffordshire Moorlands Community and Voluntary Services, which runs the job club in Leek and Biddulph, in my constituency, is that it would like more employers to offer the youth contract. What can the Minister do to encourage more employers to get involved?

[Chris Grayling]

First, I pay tribute to the work being done in the Moorlands by the job clubs there, which is making a real difference to the prospects of the unemployed. What I say to my hon. Friend and to every hon. Member is that there is a real opportunity for each of us, individually, to approach local employers and encourage them to provide work experience opportunities. Tremendous work is already being done by colleagues in organising job fairs and organising different opportunities for young people who are looking for work. We can all play a part in this; it is a way in which this House can be a real activist centre in trying to help unemployed young people.

[Stephen Timms (East Ham) (Lab)]

It is a good thing that the youth contract has finally started. The Deputy Prime Minister says that he told the Cabinet in January last year that something needed to be done on youth unemployment. Why has it taken the Department for Work and Pensions 15 months to make something happen?

[Chris Grayling]

I have great respect for the right hon. Gentleman, but on this occasion he has plain got it wrong. Over the past 12 months, we have put in place support through the work experience scheme, and we have put in place the Work programme and sector-based work academies. We have also given greater flexibility to job centres to use funding that is available to them to provide tailored support for people in their community. We have been working hard to tackle a problem of youth unemployment that built up and was left behind as a dreadful legacy by the previous Government.

[Stephen Timms]

In the youth contract, the wage subsidies are in a national pot to be handed out on a first-come, first-served basis, so providers will be competing to hand them out as fast as possible, whether or not they are actually needed. Surely it would have been far better to target subsidies where they are needed. Why has the youth contract been so badly designed?

[Chris Grayling]

Once again, the right hon. Gentleman has just got it plain wrong. We are targeting this support at young people who are struggling to get into work—the long-term unemployed. I am talking mostly about those who have been out of work for more than nine months, but sometimes this will go to those who have come from the most difficult backgrounds and who have been out of work for three months. This money is targeted absolutely at where it is needed, and I believe that it will make a difference.

[Elizabeth Truss (South West Norfolk) (Con)]

5. What assessment he has made of the means by which universal credit will deliver funding for childcare.

--- Later in debate ---

[Mr David Ruffley (Bury St Edmunds) (Con)]

8. What progress he has made on implementing the recommendations of the Löfstedt report on health and safety regulation.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

As my hon. Friends will recall, the Löfstedt review was published last November. We have already made good progress on implementing the report’s key recommendations. Consultation on the repeal or revocation of 21 legislative measures is already under way by the Health and Safety Executive and the Government intend to scrap, consolidate or improve 84% of health and safety regulations, greatly reducing the burdens on business and creating a clearer regulatory framework. In addition, two independent challenge panels have been established, the first to consider complaints from businesses about decisions made by HSE or local authority inspectors. The second will consider problems arising from non-regulators, such as insurance companies, health and safety consultants and employers, and to assess whether those decisions are proportionate and appropriate or whether they are wrong.

[Mr Speaker]

There is scope for a written ministerial statement, I would have thought.

[Andrew Bridgen]

It was one, Mr Speaker.

I welcome the launch of the mythbusters challenge panel, designed to give quick advice to people affected by ridiculous or disproportionate health and safety decisions. Will my right hon. Friend explain how that panel will work?

[Chris Grayling]

What we are trying to do is to give people who believe that a decision that has been taken is wrong—such as a decision to cancel an event or to take some other step that will impact on their lives—a chance to go quickly to the HSE and ask whether it is based on a true interpretation. We will seek to give them a clear view within two days of whether the decision is appropriate, so that they can challenge it locally.

[Mr Ruffley]

EU directives accounted for 94% of the cost of health and safety rules between 1998 and 2009. What discussions has the Minister had in Brussels about this completely unacceptable state of affairs and will he make it clear to Brussels officials that British businesses want less, not more, Brussels interference in the British workplace?

[Chris Grayling]

I wholeheartedly agree with my hon. Friend. The tide of bureaucracy we have seen in recent years has hindered business and affected employment. My view is that the EU should focus on measures that create jobs, rather than hindering the creation of jobs. That is of fundamental importance and I can assure him that I will fight that battle extremely vigorously in Brussels.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

The Health and Safety Executive has recently concluded its consultation on charging business for some of its services. Will it be able to keep the income brought in through that process or will it go straight into the Treasury?

[Chris Grayling]

The actual process is that all moneys raised in such a way go to the Treasury first, but financial agreement has been reached between the Treasury and the HSE, so that appropriate amounts of money are passed on to the HSE so that it can carry out that regime as intended.

[Stuart Andrew (Pudsey) (Con)]

9. What steps his Department is taking to support families and individuals facing multiple disadvantages.

--- Later in debate ---

[Katy Clark (North Ayrshire and Arran) (Lab)]

11. How many blind people had their contributory employment and support allowance withdrawn in the last month for which figures are available.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

May I associate myself also with the remarks about Lord Ashley? He was one of my constituents. He and I worked together closely on the future of Epsom hospital. He was a great campaigner, as well as being a lovely man, and he will be much missed.

Assuming that the hon. Lady is talking about the changes in the Welfare Reform Act, the answer is that the change has not yet come into force so no one has had their benefit withdrawn yet.

[Katy Clark]

I thank the Minister for his answer and associate myself with the comments about Lord Ashley. A 56-year-old blind constituent came to my surgery a fortnight ago. He currently receives incapacity benefit but is very concerned about the Government’s proposals in relation to employment and support allowance. What can the Minister say to him and to the many other blind people who are worried that they will no longer be eligible for benefits under the Government’s proposals?

[Chris Grayling]

It is obviously difficult to be exact in an individual circumstance without knowing about the case, but my message to all those in receipt of benefits is that this change affects only those in the work-related activity group who have the potential to return to work and who have another means of income or who have savings in their household. It does not affect those who cannot work in the support group. It does not affect those who need the financial support through an income-based benefit. It affects only a minority of claimants who have the potential to return to work and have other means.

[Duncan Hames (Chippenham) (LD)]

I understand why the Minister would want assessments to consider people individually. However, the frameworks for those assessments need to be got right. Take, for example, how a blind person may fare in applying for the new personal independence payment. Will the Minister and his colleague look again at the weightings that will apply to the activities supported by this payment, since if someone with full sight loss is unlikely to qualify for the enhanced level of support, surely there would be a case for changing the weightings?

[Chris Grayling]

We are trying to get this right. We want a reform that produces a system that reflects genuine disability and does not provide support to those who do not need it. We are in the middle of a consultation about this. I ask my hon. Friend to take part in that consultation and to encourage his constituents who may be concerned about the reform to do so. We want to get it right.

[Ian Paisley (North Antrim) (DUP)]

What message has the Minister for my constituent, Annie McAlonan, who was on income support and incapacity benefit and has now been transferred to ESA but has failed the medical examination? This woman has breast cancer and ongoing medical difficulties associated with that condition, yet she is told that she is now fit for employment and has to seek employment. Is this not a classic case of welfare reform failing the most vulnerable?

[Chris Grayling]

It is under different leadership in Northern Ireland, but let us be absolutely clear that someone who is undergoing treatment for cancer and is having chemotherapy and radiotherapy would, in almost all cases, be in a support group and be receiving long-term care. I do not know enough about the circumstances of the hon. Gentleman’s constituent to be exactly certain where she is in the course of her treatment, but one of the changes that we made on coming to office was to improve support for cancer patients, not to reduce it.

[Richard Fuller (Bedford) (Con)]

A constituent visited me during the weekend to express her concerns about her husband who is blind and who has been informed that he will lose ESA in five months. He is taking a course to enable himself to get back into work, but it will take longer than five months to complete. What additional support may be provided to people in his situation to enable them to get back into work?

[Chris Grayling]

It very much depends on the circumstances of those concerned. The only people in danger of losing ESA as a result of those changes are those with other financial means in the household. It may be that they gain an additional entitlement to housing benefit and tax credits as a result of the changes, but we do not want to apply a one size fits all through the system to those who are blind or partially sighted. Some will need long-term support as a result of their conditions, and we will want to help others with long records in employment back into employment as quickly as possible.

[Alex Cunningham (Stockton North) (Lab)]

12. What support he plans to provide to young people who leave the Work programme without a job.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The Work programme will help and is helping a significant number of people into lasting work. We are trialling two approaches to supporting the very long-term unemployed. Those trials will inform the development of a national programme of support from the summer of 2013 for those leaving the Work programme who still need to find employment and need further help.

[Alex Cunningham]

Young people deserve the offer of a real job if they are out of work long term. Why does not the Minister put in place Labour’s real jobs guarantee to ensure that young people have the opportunity of real jobs with training and time to search for a job, instead of dropping them like a stone?

[Chris Grayling]

We have to remember that the funding that underlies Labour party policy has already been announced for, I believe, nine different purposes of late. The programmes that we have put in place to help young people are much more cost-effective than the previous Government’s programmes, and much more affordable at a time when, as the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) reminded us, there is no money left, and they are making a real difference today.

[Robert Halfon (Harlow) (Con)]

Is not the best way to help these young people the investment in the hundreds of thousands of apprenticeships that give young people the skills they need?

[Chris Grayling]

I completely agree. My hon. Friend has done a first-rate job in promoting apprenticeships in his constituency and in Parliament. The apprenticeship dimension to the youth contract will be an important part of getting young people into work. This is a much better way forward to create long-term career opportunities for young people than the short-term placements out of the private sector that were the hallmark of the previous Government.

[Mr David Lammy (Tottenham) (Lab)]

Will the Minister share his concerns with the House about the rising level of long-term unemployment among London’s black youth, now three times the level of their white peers? Why is it that in Tottenham, 87% of Haringey’s young residents are not entitled to the wage incentive scheme under the youth contract? This is a real concern.

[Chris Grayling]

The only young unemployed people in Haringey not entitled to access funding under the youth contract are those who have not been out of work for very long. I genuinely share the hon. Gentleman’s concerns about young black unemployment, and that is one reason why we have created for Jobcentre Plus the flexible support fund, which enables our local offices to target support, as it is indeed doing in Haringey, at organisations such as the Tottenham Hotspur Foundation, which is working with young black people. The figures that the Labour party keeps putting forward about long-term youth unemployment are completely distorted by the fact that it used to hide people in the training allowance, which did not show up in the figures, and we no longer do that.

[Guy Opperman (Hexham) (Con)]

14. What steps Jobcentre Plus is taking to use the flexible support fund to support claimants into work.

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

16. What recent estimate he has made of the level of unemployment in Bristol.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The latest estimate for the level of International Labour Organisation unemployment in Bristol, produced by the Office for National Statistics, is 21,400.

[Kerry McCarthy]

Does the Minister know whether the Prime Minister, on his visit to Bristol today, will take the time to meet some of those affected by long-term unemployment, which is up by 72% in the past year and a staggering 15,000% among young people, or was the hon. Member for Mid Bedfordshire (Nadine Dorries) correct when she described the Prime Minister and the Chancellor on the “Daily Politics” show today as

“two arrogant posh boys who show no remorse, no contrition, and no passion to want to understand the lives of others”?

[Chris Grayling]

I cannot speak for the Prime Minister, but I can say that I have been to Bristol recently and spoken with unemployed people there. I can also tell the hon. Lady that the figures she quotes are nonsense. She and her Labour colleagues keep forgetting the fact that they used to hide large numbers of unemployed people on a training allowance, which masked the true picture of long-term unemployment. I can absolutely assure her that genuine long-term unemployment in her constituency is not up by 72%.

[Julian Smith (Skipton and Ripon) (Con)]

17. What assessment he has made of the effectiveness of the new enterprise allowance.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We have not yet made a formal assessment of the effectiveness of the NEA because it is too early to draw robust conclusions. We will of course carry out a proper impact analysis in due course. Participation in the scheme has so far proved popular; at the end of November last year, when the most recent figures were published, nearly 2,000 new businesses had been created, and many more have been created since then.

[Julian Smith]

I thank the Minister for that answer. Is it not correct that Yorkshire and the Humber has one of the highest take-ups of the scheme anywhere in the country? Has he thought about how we could increase the number of places on the scheme in order to allow people who want to set up a business to start much earlier?

[Chris Grayling]

Yorkshire and the Humber has indeed proved to be a pathfinder for the scheme. I am aware of how popular it is and am now looking at ways in which we could modify it in order to provide a greater focus on those areas where demand is high and see whether it makes sense to allow people to access it earlier.

[Yvonne Fovargue (Makerfield) (Lab)]

19. What assessment he has made of homeless people’s experiences of the work capability assessment.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

In recognition of the specific issues that homeless people encounter, information and advice related to the work capability assessment is provided through their Jobcentre Plus adviser when they collect their benefit payment via the personal issue payment process.

We have also been in touch with the Department for Communities and Local Government about homeless people. Through this, a meeting has been arranged between Professor Harrington, the work capability assessment independent reviewer, and several charities representing homeless people. We will consider fully any recommendations he makes.

[Yvonne Fovargue]

Upcoming research from Crisis shows that almost half the homeless people questioned felt that the health care professionals at their assessment had a bad or very bad understanding of homelessness and how it impacts on their lives. What steps are being taken to raise awareness among the health care professionals conducting that research and carrying out the work capability assessment?

[Chris Grayling]

I have invited all the charitable groups that have an interest in WCA matters to feel free to offer guidance and training sessions to our decision makers, and to share their views so that any appropriate elements can be included in our training programmes, but of course the best way of helping the homeless is to help them into employment—to use the income to find a home and to sort their lives out properly.

[Damian Hinds (East Hampshire) (Con)]

Given the prevalence of mental health issues among homeless people, is not Professor Harrington’s focus on such issues in his second report particularly important for them? Does the Minister also welcome the view of charities such as Homeless Link that Professor Harrington’s work is making a material difference to the operation of the work capability assessment?

[Chris Grayling]

It might be appropriate at this point to pay tribute to Professor Harrington for the work that he has carried out. Of all the things that I have heard over the past 18 months about the work capability assessment, one thing I have not heard is anyone criticise Professor Harrington, who has done his job excellently and independently.

[Jo Swinson (East Dunbartonshire) (LD)]

20. When he plans to bring forward his proposals for a single-tier state pension.

--- Later in debate ---

[Tom Greatrex]

Does any Minister think it appropriate that, while undertaking a contract on behalf of the Secretary of State’s Department, Atos Healthcare, first, published misleading information on its website; secondly, refused to comply with the Advertising Standards Authority inquiry into that information; and, thirdly, failed to correct it until alerted to do so by the media last week—several weeks after the compliance notice was issued? Do they think that that is acceptable for an agency working on behalf of the Government?

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We always discuss issues such as that one very carefully with our subcontractors, but I do not believe that it affects the professionalism of the health care professionals who are carrying out the work on our behalf. Many are doing a very difficult job in challenging circumstances—but doing the best for people who claim incapacity benefit and who could have a better future.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

Following earlier questions on pensions, will the Minister put on record the fact that the Budget and the Government’s decisions are the best news ever for pensioners now, as well as for pensioners in the future? The press and the Opposition appear to have somewhat missed the point.

--- Later in debate ---

[Ann McKechin (Glasgow North) (Lab)]

T2. The Scottish Trades Union Congress reported today that the number of young Scots who are in receipt of unemployment benefit for more than 12 months has increased by 1,100% since 2007. Will the Minister confirm that those 5,000-plus young people will not be abandoned? What guarantee will he give about how many of them will be in work by this time next year?

[Chris Grayling]

Once again, it is the same story from the Labour party and its supporters. Let us be clear that what has changed in long-term unemployment since we took office is that we no longer hide young unemployed people—or, indeed, older unemployed people—on a training allowance, which distorted the figures by as much as 30,000 each month. That is why long-term youth unemployment and unemployment appear to be rising. It has nothing to do with economic change and everything to do with how disingenuous the previous Government were.

--- Later in debate ---

[Laura Sandys (South Thanet) (Con)]

T9. I thank the Minister for agreeing to come to a jobs fair in Thanet in June. I am sure that he shares everybody else’s pleasure at seeing that there has been a small drop in youth unemployment. What more can I tell the young people of Thanet that we are doing to help them get the jobs that will be advertised at the jobs fair?

[Chris Grayling]

I am sure we were all pleased to see the small fall in youth unemployment announced last week, but there is a long way to go in tackling what is a big challenge for this country. I hope that the employers of Thanet will respond to the wage subsidies in the youth contract by giving young unemployed British people their first step on to the ladder of employment. That is what we all want to happen.

[Grahame M. Morris (Easington) (Lab)]

T6. We have heard a lot of talk from the Government about creating an information revolution in Whitehall, but with the Secretary of State’s Department leading a charge by outsourcing many of its responsibilities, will the same measures of transparency apply to private sector companies such as A4e and Atos as currently apply to public sector bodies?

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Would the Minister like to clarify his earlier remarks about partially sighted people not being means-tested and judged on their savings but being awarded benefit on the basis of their need?

[Chris Grayling]

That is of course our approach right across ESA. We do not apply a one-size-fits-all approach. Those with the potential to return to work will receive help to do so, those who will be able to return to work in due course will get support and guidance along that journey, and those who cannot be expected to work will receive long-term unconditional support in the support group. That is absolutely how the Government should seek to work.

[John McDonnell (Hayes and Harlington) (Lab)]

T7. Members throughout the House, including Ministers, have emphasised the importance of the care that must be taken in dealing with people with mental health problems as they approach their medical and capability assessments, particularly if they lose benefits. Some anecdotal evidence is emerging of suicides taking place among people who have lost benefits. Have the Government explored any of the coroners’ reports of cases in which there has been a reference to the loss of benefits as a contributory factor, and what lessons have been learned?

[Chris Grayling]

We will always examine something like that very carefully indeed when it happens. So far, my experience is that the stories are usually much more complicated, but that does not mean we are not doing the right thing. I passionately believe that we should help such people, particularly those with mental health problems. I have met people who have been out of work for years and years with chronic depression, but whom we are now beginning to help back into work. We have to be careful, and we examine such situations carefully when they arise.

[Jessica Lee (Erewash) (Con)]

Will my hon. Friend join me in congratulating Erewash credit union on its participation in the back to work scheme? A young person I met on Friday who is participating in the scheme is extremely enthusiastic about their prospects and future and now feels ready for the next step back to work.

--- Later in debate ---

[Heidi Alexander (Lewisham East) (Lab)]

Last Friday I attended Lewisham jobcentre and was told that between 1,800 and 2,000 people visit it every day. What extra resources are being provided to jobcentres in areas of acute unemployment to help people access work?

[Chris Grayling]

Most recently, we have increased the number of youth advisers so that we have additional support in places such as Lewisham to enhance our work to help unemployed young people get into work. I hope that those advisers will make a difference to young people’s prospects.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Is the number of people in receipt of out-of-work benefit higher or lower now than it was in May 2010?

[Chris Grayling]

I am very pleased to tell the House that since May 2010, the total number of people in this country on out-of-work benefits has fallen by 45,000.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Is the Minister familiar with the recent freedom of information request that revealed that 1,100 employment support allowance claimants died between January and August last year after being assessed as fit for work? What steps is he taking to investigate this rather large number of deaths, and how come so many of those people were assessed as fit for work?

[Chris Grayling]

I am afraid that we cannot simply extrapolate one of those facts from the other. Sadly, we are all mortal, and circumstances arise that we do not expect. As I said to the hon. Member for Hayes and Harlington (John McDonnell), we always look very carefully at individual cases, but the Government are doing the right thing in trying to provide support to help people to get back into work. The worst thing for their health and well-being is for them to be on benefits for the rest of their lives if they do not need to be.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

What discussions has the Minister had with the Department for Communities and Local Government on council tenants starting a business in their homes?

Universal Credit (Passported Benefits)

Lord Grayling Excerpts

Tuesday 27th March 2012 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

In May 2011, the Department for Work and Pensions commissioned the Social Security Advisory Committee to undertake an independent review of passported benefits and their interaction with universal credit.

The Committee has completed the review. Later today I will publish its final report which includes the Government’s response. I will place a copy in the House Library.

The Committee’s report does not make specific recommendations on the future design of passported benefits but suggests a number of high level principles that may help guide the direction of travel in future. These principles are focused on simplification and making work pay.

We recognise that the immediate priority is to determine how passported benefits will operate when universal credit is introduced in 2013. The Government’s response to the Committee’s report therefore sets out how various organisations are considering new eligibility criteria for individual passported benefits.

In the longer term, our aim is to explore a generic approach for the current suite of passported benefits. This approach could enable people to claim universal credit, but with added components for a range of other benefits and public services. The total award, including the additional components would then be withdrawn gradually as income rises. We will consider this alongside other priorities for the next spending review.

Work Capability Assessment

Lord Grayling Excerpts

Tuesday 13th March 2012 Westminster Hall

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I have a sense of déjà-vu because the hon. Member for Edinburgh East (Sheila Gilmore) and I are continuing a debate, albeit on a different subject, from an hour ago.

Let me start by saying that it is of paramount importance to get right issues of mental health in the work capability assessment process. That is the most difficult challenge, because in many respects mental health can be the most intangible of the various areas that we need to assess when we seek to understand what people can and cannot do, and there are clearly many people with mental health problems who cannot possibly be expected to work. I do not have detailed knowledge of the case highlighted by the hon. Member for Ashfield (Gloria De Piero), but people will appear in our surgeries saying that something is not fair or right, or that they are in the wrong group. Some people will genuinely believe that they cannot return to work, but that will not always be the case.

A few weeks ago, I sat with a woman in one of our Work programme centres. She had arrived having been mandated to the Work programme after 14 years off work with chronic depression, and she said that on the first day she was in tears, did not believe that she should be there and that she was protesting bitterly. I met her about eight weeks later, by which time she had started doing voluntary work in a charity shop and had begun to apply for jobs, and she said that that was the right thing to do after all. We will not always get it right, but we are taking some people down a path that can be right for them, even if they are reluctant to follow it at first.

[Gloria De Piero]

I accept what the Minister says, but does he agree that to decide whether someone is in the right group and has the right of appeal—which in itself acknowledges trial and error—56 weeks is too long?

[Chris Grayling]

I completely accept that, and we have started to reduce the backlog of cases. It is a big challenge, and we have put extra resources into the tribunal service for that. We have also tried to strengthen the reconsideration process in Jobcentre Plus, so that new medical evidence seldom appears at appeal stage. In his first report, Professor Harrington stated that one key reason why so many decisions were being overturned on appeal was that new evidence was appearing at appeal stage. We have tried hard, both at the start of the assessment process and the reconsideration stage, to ensure that such evidence is in place.

I ask the hon. Member for Edinburgh East to step back for a moment because it is tempting to take what the charities say at face value. Charities do good work and have long experience, but they do not always get it right and the internal review was the clearest example of that. I sat through meeting after meeting with the charities at which they said that we should not proceed with the internal review because it would lead to more people with mental health problems being found fit for work and that all the evidence suggested that it was the wrong thing to do.

Work had been done by the previous Government using the approach that the Department always takes to such matters, which is to take a batch of cases, put them through a new methodology and see what difference that makes. Our team of officials advised that, although there were fewer descriptors, the changes would lead to an increased number of mental health claimants in the support group. The charities protested and said, “That won’t happen; you’re wrong. That is not the case and you shouldn’t do it.” A few months later, however, that internal review led to an increased number of mental health patients in the support group. Indeed, the support group as a whole has got bigger. It is easy for groups that advocate change to existing systems to say, “We’ve got the experience; we’re right and you must do this,” but that is not always the case. It was certainly not the case for the internal review.

[Dr Whiteford]

I should like to bring the Minister back to the first Harrington review, particularly recommendation 7. He has previously told Members, including myself, that those recommendations have been taken on board and implemented, but why has recommendation 7 not been implemented in Scotland?

[Chris Grayling]

In relation to mental health champions, let me explain some of the things that we have done for mental health patients. We have a pool of about 60 specialists who provide advice within the Atos network, and their skills are available to every centre, either in person or by phone. Professor Harrington has looked at how we implemented that change, and he praised it because he thinks that it was done well and effectively. We think that we have delivered that expertise, as does Professor Harrington who is an independent assessor and can say whether or not his recommendation has been implemented properly, which in his view it has been.

If I find evidence that we are not getting things right, we are open to change. As I have said from the start, this programme does not have a financial target and is about saving lives, not saving money. If we are successful in moving people back into work it will, of course, reduce the cost to the welfare state, but it will do so in a right and positive way that will help people such as the woman whom I described, who I hope will return, step by step, to the workplace. The alternative is for her to spend the rest of her life on benefits suffering from depression at home, and no one benefits from that.

That is the spirit in which we have approached all this. We tried very hard to ensure that we got it right with the internal review. There was no particular reason for me to implement the internal review. It was set up by the previous Government. The findings were put together by the previous Government. It would have been easy just to say no, but the advice was that it would increase the size of the support group, and that is what has happened. I regard that as a positive step. I always said, and said on a number of occasions in the House, that I was happy to see the dividing line between the work-related activity group and the support group move a bit in the direction of caution, because we are trying to get this right and I do not want people in the wrong place. There will never be a perfect system—I wish there would be—but we shall try to get this right.

I will move on to the recommendations of the work carried out by the charities. I commissioned that myself. I asked the charities to come back with recommended changes to the descriptors. I very much wanted, and do want, to get this right. The problem is straightforward: they did not actually do what they were asked to do. They were asked to make recommendations about further ways to improve the descriptors that would allow us further to ensure that the assessment process for people with mental health challenges was accurate, effective and reflected their needs and potential. That is not what happened.

The charities came back with a recommended system that would have involved tearing up the whole work capability assessment for mental, fluctuating and physical conditions and starting again from scratch, redoing all our computer systems and all the training for every member of staff in the entire network. That was not just a tweak; it was a comprehensive change to the whole thing, based on no actual evidence. The charities did not come forward with tangible evidence. They simply said, “We think it would work better this way.” They may or may not be right, but that is quite a big step to take just on the basis of a set of recommendations from a group of charities that had been proved wrong in the internal review process.

[Sheila Gilmore]

The recommendations from the charities were put to an independent scrutiny panel that had a large number of people with considerable expertise, so will the Minister agree that it is not true to say that they were simply the recommendations of a group of charities?

[Chris Grayling]

That is the case, but what we lack and what we intend now to get is hard evidence to determine whether this is right. Given that the charities were wrong the first time round, I am very reluctant to tear up the whole thing and redo all the computer systems—a vast amount of change; probably a two or three-year project—only to discover that that does not make a difference.

Alongside this, we have been doing work on fluctuating conditions. These are the two particularly challenging areas. Fluctuating conditions can represent a real challenge in the assessment process, because someone who is fine one day may not be fine the next. There are a range of fluctuating conditions and, again, I want to be careful to ensure that we get this as right as we can. In a moment, I will touch on some of the changes that we have made. I just want to explain first where the issue arises with the new set of recommendations.

The working group on fluctuating conditions reported at the end of last year. We intend this year to do that gold standard work, which in effect involves applying the new systems recommended by both groups to a set group of cases to understand what the difference would have been. If we discover that there is very little variation between what they are recommending and the existing system, there will be no point in changing it. If we discover big changes, we will want to understand why. I am perfectly open to making changes in the future if I think that that will make a significant difference. I will state again that we are not trying to force into work people who should not be there. We are not trying to get this wrong, but at the same time this is not about a simple change. It is not about introducing mental health champions throughout the network, improving the quality of the telephony process, ensuring that our staff are better trained or strengthening the reconsideration process. It is about tearing the whole thing up and starting again. That is quite a big step and a very long step to take.

We shall do the gold standard work. We have already done the initial scoping work. It is very important that that is completed. I am very open to making changes, but I will not make changes on the hoof without clear evidence that they will make a difference. The hard evidence that was there for the internal review, which I based my judgment on, proved to be right, whereas the external advice, based on what the charities thought, proved to be wrong, so we have to be very careful.

[Sheila Gilmore]

I thank the Minister for taking another intervention. Obviously, there have been many changes in the system and changes initiated after Harrington 1 as well. Is there a reason why the Minister thinks that the change in the descriptors has resulted in more people being put into the support group?

[Chris Grayling]

The general view of the team who worked on the internal review was that the assessors were better placed with a broader base and less specific descriptors in relation to mental health. People should bear in mind that both the assessors and the subsequent tribunals and decision makers have to operate to a pretty tight template around the descriptors as set in law. By creating additional flexibility within the descriptors, we end up with more people being put into the support group than was previously the case, and that is indeed what happened.

I thought that there was good and sensible thinking in the way that the charities brought forward their ideas. We made some pretty rapid changes. We have continued to adapt the ESA50. We have adapted our training, so that some of the issues that they have highlighted are built more clearly into it. We have also invited all the charities—some have taken this up—to work with decision makers, to contribute to the training process for decision makers.

Probably the biggest change that we made to the whole process was to de-emphasise slightly the role of the assessment itself. One of the criticisms levelled at the whole WCA process before we took over was that it was much too formulaic, with far too little flexibility. Of course, one of the reasons for the appeals issue was that a vast amount of new evidence came forward only at the appeal stage. As a result of Professor Harrington’s report, we tried to create a more holistic process, so we actively ask people for evidence from their specialists up front.

Our decision makers have the discretion to look for additional evidence at the point at which they reach their view, based on the evidence that has been submitted by the individual themselves, the ESA50 and the outcome of the work capability assessment. Likewise, we now actively encourage people to supply new evidence at the reconsideration stage. It is now almost universally the case that we see most if not all of the evidence before it leaves Jobcentre Plus. That has to be the right thing to do.

We have tried to build the learning from the work done by the mental health group and by the fluctuating conditions group into the decision making that is already happening. We have not parked this on the sidelines and said that we will come back to it at a later date. I can explain my problem using the analogy that I used in the Select Committee. It is rather like taking one’s car in for a service. When we come back at the end of the day, it looks great. The people who did the service have done a brilliant job, but they have turned it into a boat. That is not a lot of use if we have to drive it on the road. That, in a nutshell, is the position that I am in. The charities made a recommendation. If they had recommended some tweaks to the descriptors, we would have done that by now, but they did not; they recommended a total transformation of the whole process, including redoing everything for physical health conditions as well—all the descriptors for them—a new scoring system and a new computer system. It would be and will be, if we do it, a monumental task.

We are therefore putting together the mental health work and the fluctuating conditions work. We are looking at the consequences of the approach, through the gold standard review, in a way that the previous Government did, and rightly so. It involves taking a selection of cases, applying the new methodology and understanding what the difference would be. However, we are not sitting on our hands in the meantime. We are not just saying, “Well, that work has been done. Maybe we’ll get round to it at some point in the future.” We have used that as the basis for changes across the way that we interact with people through the assessment process, because we genuinely want to get it right.

I have said on many occasions that this is about helping people who are potentially able to return to work to do so. That is the right thing to do. We will not always get the decision making right, whatever we do. Even if we implement everything that the charities are recommending, we still will not have a system that is perfect in all circumstances. That is why we have the appeal process. We are not talking about putting people into a position whereby they are doing an activity that is damaging to them. We are, step by step, helping people to get back into a process whereby they can apply for jobs and get into work—sometimes quite gently.

[Sheila Gilmore]

Will the Minister clarify, if the gold standard review has now started, whether he has any anticipated time scale for its concluding?

[Chris Grayling]

I have not instantly, but it is certainly my intention that we will complete it within the next few months, as we said that we would. I think that it is necessary to understand the impact. Above all, I want to get this right. Our objective has only ever been to find the right number of people we can help back to work, not any number of people. That is a human goal, not a financial one.

Question put and agreed to.

Work Experience

Lord Grayling Excerpts

Tuesday 13th March 2012 Westminster Hall

[Sheila Gilmore]

My hon. Friend is correct. Someone spoke previously about an elephant in the room. The job at the end is probably the biggest elephant in the room. It is not good enough to say that the whole problem is about people not having skills or training and that, somehow, if we list all the schemes, work programmes and other programmes, we have solved the unemployment problem. There are two sides to the unemployment problem. There is the problem of the lack of jobs, which is very considerable in some areas of the country, and, yes, there are issues about whether people have the proper skills and experience to take up opportunities. We need both. To say constantly that we are on top of this because we have programme X, Y, Z and goodness knows what else will not solve the problem of the lack of jobs.

One big issue that we face is that we do not know a lot about the outcomes of the scheme. We are told that it is a wonderful scheme and is having great results. Will the Minister tell us when he will give us more detailed information about what is actually happening? Ministers and Back Benchers constantly recite the fact that half of those doing work experience are in jobs within a short time. That is based on an initial pilot involving some 1,300 people between January and March 2011. The more accurate statement—I accept that the Minister usually gives the more accurate statement, although others do not—is that one half or 51%, to be exact, were off benefits 13 weeks after the work experience period. They may have come off benefits and gone into a job or to college, or simply not have been claiming. For example, someone who has got to the end of their six months on jobseeker’s allowance and who has a working partner may simply stop claiming.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

Will the hon. Lady confirm that the benchmark that we use to judge the success of the work experience programme is exactly the same benchmark that she and her colleagues used to judge what they claimed to be the success—it was at a much higher cost—of the future jobs fund?

[Sheila Gilmore]

I am not going to dispute—[Interruption.] It is important to know a bit more about what has been happening. All these assertions are made on the basis of a fairly small number. If the Minister has other information to give us, that is all well and good, but we are not hearing that at the moment. I asked him in a written question how many of those who had taken part in the scheme, either between 16 and 18 years of age or between 18 and 25, had found employment with the firm with which they had done the work experience or with another employer. The answer was that the Department does not hold that information. The Government are not tracking that information. I find that worrying, because assertions and statements are being made about the success of a programme, but answers to the detailed questions that anyone might reasonably want to ask about these programmes are simply not being given to us.

--- Later in debate ---

[Sheila Gilmore]

That is precisely what I said—that 51% of the first 1,300 people who took part in the scheme between January and March 2011 were off benefits. That was the point where I came in.

We have to look not only at the quality of work experience, but at the fact that some firms may simply be using schemes to get people to do jobs they would otherwise have employed someone to do.

On a slightly different matter—this does not relate to the work experience scheme pure and simple—I was astonished to read in no less a paper than The Sunday Times, which is hardly a friend of the left, that McDonald’s had, it seemed to me, reframed its trainee posts as apprenticeships. It was taking Government money to train people in the skills they would need if they got a job at McDonald’s, such as customer service and food hygiene. Many people, including students and others, have gone through the McDonald’s scheme over many years and they have gone on to work in McDonald’s. However, people on the scheme are now being designated as apprentices, and I know of one case in which somebody doing a Saturday job got a contract as an apprentice. McDonald’s got the money from the Government and was quoted as saying that no additional jobs had been created.

[Chris Grayling]

Is the hon. Lady aware that she is describing the previous Labour Government’s policy of allowing companies that developed in-work training places to designate them as apprenticeships? Does she accept that what she is describing originated under the Labour Government and has been deemed—by that Government and this one—to be an important part of the career development mix?

[Sheila Gilmore]

Even if the Minister tells me that that is the case, I would not necessarily always accept everything previous Governments have done, because such provisions are not helping us in any respect to create additional jobs. The worry about firms taking successive people to do work experience without payment is that they may be reducing their other employees’ opportunities to do paid work—through additional hours, for example. We need reassurance that that is not happening, and if we do not get it, we will have some queries.

--- Later in debate ---

[Stephen Timms (East Ham) (Lab)]

I am grateful to you, Mr Crausby, for giving me this opportunity to speak. I also thank the hon. Member for Nuneaton (Mr Jones), who has done us a great service by securing a debate on this very important topic.

The Government have got themselves into an extraordinary muddle over work experience. Labour supports work experience. It can be invaluable in reconnecting people with the labour market; it has been a part of labour market intervention since the 1970s; and it was a key feature of the success of the new deal. Unfortunately, however, the Government have got themselves into a terrible mess.

On 29 February, the Minister—in an attempt to extricate himself from that mess—announced a U-turn and that the “Work Experience” scheme was to be fully voluntary. Previously, he had said that it was a voluntary scheme; I suppose that his announcement on 29 February means that it really will be voluntary. However, his problem is that the letters that Jobcentre Plus staff sent out to claimants said something quite different. He was memorably confronted on “Channel 4 News” with a letter that had been sent out to somebody who was being told about a placement on a “Work Experience” scheme; the hon. Member for Great Yarmouth (Brandon Lewis) quite rightly said that there are other schemes, but in this case the placement was part of a “Work Experience” scheme. The letter said:

“You have been referred to the following Opportunity: retail assistant…If you cannot attend for any reason or if you stop claiming Jobseekers Allowance please contact this Jobcentre immediately. If without a good reason you fail to start, fail to go when expected or stop going...any future payments of Jobseekers Allowance could cease to be payable or could be payable at a lower rate.”

There is no point in claiming that the scheme is voluntary if Jobcentre Plus staff—staff in the Minister’s job centres—are telling people precisely the opposite.

[Chris Grayling]

Has it crossed the right hon. Gentleman’s mind that nobody would receive a letter unless they had volunteered?

[Stephen Timms]

Let me tell the right hon. Gentleman what I suspect is the source of the confusion. It arises from the decision maker’s guide, which any Member of the House can read on the website for the Department for Work and Pensions. That guide says:

“JSA may not be payable or it may be payable at a reduced rate to claimants who are entitled to JSA and have...after being notified by an Employment Officer of a place on a Work Experience scheme, refused without good cause or failed to apply for it or to accept it when offered, or...neglected to avail themselves of a reasonable opportunity of a place on Work Experience.”

A Jobcentre Plus adviser who is doing their job and looking at the official guidance discovers that that is what the guidance is—a clear description of a mandatory scheme.

It is no wonder, therefore, that Jobcentre Plus staff have been so confused and have contradicted what the Minister has said. Of course, as we know, a number of businesses also lost confidence in the scheme. But the muddle goes even further, because the DWP’s provider guidance for the Work programme says:

“Where you are providing support for JSA participants, which is work experience, you must mandate participants to this activity. This is to avoid the National Minimum Wage Regulations, which will apply if JSA participants are not mandated”.

The DWP was saying that until a few weeks ago, but that particular statement has now been deleted from the guidance on the website.

Therefore I want to ask the Minister three specific questions. First, now that there are no sanctions in work experience other than for gross misconduct, will he amend the decision maker’s guide? Secondly, how will he ensure that the policy is now implemented in line with what he has announced? Thirdly, what has changed in the legal position so that work experience no longer has to be mandated to “avoid”—to quote the guidance that was on his Department’s website—the national minimum wage rules?

The Work Experience scheme is too valuable to let this muddle continue. And as we have already heard in the debate, there are other schemes apart from the “Work Experience” scheme. In fact, Inclusion says that there are seven different current work experience schemes, which may be part of the reason for the muddle. At the time that some claimants are starting on the “Work Experience” scheme, others start on mandatory work activity, which was the scheme referred to by the hon. Member for Great Yarmouth. That may well be another source of the confusion. As the name of the mandatory work activity scheme suggests, it is not voluntary. It is designed for people who are a long way from the labour market and who have no experience of work or the work ethic. Placements are for a similar period to those in the Work Experience scheme, and they are sourced through private welfare-to-work providers. The total value of the contracts for mandatory work activity is £32 million. I have repeatedly asked the Minister to tell the House what the average cost of such a placement is, and various other details. He has repeatedly refused to answer those questions, claiming that it is “Commercial in Confidence” although heaven knows why.

[Stephen Timms]

I very strongly support work experience and I strongly support the contribution of employers. However, what I regret and deprecate is the extraordinary muddle and confusion that the Government’s handling of the Work Experience scheme and the six other similar schemes has created.

On mandatory—[Interruption.] Time is running out and I want to give the Minister every chance to respond to these points, so let me just tell the House about one of my constituents. She was put on to mandatory work activity. She was not a long way from the labour market; indeed, after I inquired about her, she received a phone call to say that she should never have been put on mandatory work activity in the first place. The letter that was sent to her initially was a classic of incomprehensibility; I sent a copy of it to the Minister. It instructed her, a resident of east London, to go to an obscure Sheffield postcode, and it said that if she had any queries she should ring telephone number 000. Her placement was at a charity shop. When she arrived, there were 14 other people on mandatory work activity who had also been sent to the same charity shop to help out. There was nowhere near enough work to go round, although presumably all 15 of those people attracted a payment to the provider from the Minister’s Department.

Experiences such as that will not help anybody into work. I ask the Minister: what checks is he making on placements to mandatory work activity? In fact, does he know if his Department is being ripped off on a large scale, as the example that I just gave suggests? Also, why does he insist on secrecy about all of this, when the openness that is being promoted by the Cabinet Office would help to resolve all these problems? This Minister has some form on this. He has been officially rebuked for misusing statistics—I think more than any other Member of the House—including on three separate occasions since he has been a Minister. That is a pretty extraordinary record.

[Chris Grayling]

On a point of order, Mr Crausby. Is it in order to make allegations about another Member without giving details? I am certainly not aware of the issues that the right hon. Gentleman has just raised. He has made quite a serious comment about another Member. I have no knowledge of any such occasions since I have become a Minister.

[Stephen Timms]

I can tell the right hon. Gentleman that the three occasions are all on the UK Statistics Authority’s website: first, data relating to the flexible new deal; secondly, data relating to worklessness statistics; and thirdly, data about benefit claims on the part of immigrants. The first and third of those were widely publicised at the time. I have the letter on the second in front of me. The Minister publishes statistics that he thinks advance his partisan case, but he refuses to publish straightforward, routine data that certainly should be in the public domain.

[Chris Grayling]

Further to that point of order, Mr Crausby. Since becoming a Minister I have not received, to the best of my knowledge, any communication from the UK Statistics Authority questioning any statistics that I have published. I want to place that on the record and ask whether it is in order for a shadow Minister to make an allegation of that kind.

[Mr David Crausby (in the Chair)]

That is not a point of order.

--- Later in debate ---

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We have just heard a clear example of why the Opposition have yet to adapt to opposition. In long years of opposition, we learned that there are times when one should simply accept that what the Government are doing is right. I am sorry to hear the right hon. Member for East Ham (Stephen Timms), for whom I normally have a high regard, misrepresenting the situation around any letters or communications that the Department has received from the UK Statistics Authority. I am also sorry that he is dancing on a sixpence to try to oppose something that he should support.

Mr Crausby, if you had told me three months ago that we would be dealing with protests against the work experience scheme, given all the difficult decisions that we are taking in the Department for Work and Pensions, I would have thought you were mad. Among all those difficult decisions, this is a positive programme that is designed to help. It is innocuous. It does what it says on the tin. It started as a result of a complaint that I personally received from the mother of a young woman who said, “My daughter has arranged a month’s work experience for herself and been told she will lose her benefits if she carries out that experience.” I regarded that as unacceptable, so we started to use the teams of people we have in Jobcentre Plus to look for opportunities for young people to do work experience, precisely because of the issues raised by my hon. Friend the Member for Great Yarmouth (Brandon Lewis). It is all well and good if someone comes from a prosperous background, but not everyone does. Helping young people find work experience opportunities is enormously important.

I will deal straight away with the issue raised by the hon. Member for Edinburgh East (Sheila Gilmore). I am afraid she needs to look in the mirror and ask the question about being a job snob. The row came about because of a computer error, which published an internal bulletin about a work experience placement at Tesco. Had it been Airbus, this would never have been a story, and the hon. Lady would not be complaining today. I commend Airbus for joining our scheme, along with many other manufacturers.

About 12 months ago, I met an older, former unemployed worker at an Asda store in Birmingham. He said: “I came here after years of unemployment. I got a job at the bottom level of the scale. A few months later, I was running a department with a staff of 20.” The job of running a high street retail branch—a big supermarket—can be a job that oversees a large staff in a business turning over tens of millions of pounds a year. In a large company such as Tesco, there are a vast range of opportunities in IT, HR, logistics, or community outreach. There was magnificent community work at Asda in my own constituency. There are all kinds of opportunities for someone to go in at the bottom and work their way up.

Let me explain to the hon. Member for Edinburgh East how the scheme works. Our advisers sit down with young people and talk about different career options. They ask them about the sectors that interest them, and find them—if we can—a placement in one of their preferred sectors. It is their choice. We listen to them and try to find the opportunity. Unfortunately, we cannot find opportunities for all the young people, because the scheme is over-subscribed. That is the nature of what we are trying to do. We expect them to turn up, if they have taken a placement from someone else; we expect them to fulfil the placement if they stay beyond the first week’s grace; and we expect them to behave themselves. It is the lightest-touch conditionality anywhere in the welfare system. We have listened to the employers—given all the brouhaha—and accepted that we would remove the attendance requirement. We still have sanctions in place for things such as racism in the workplace, theft in the workplace and abusive behaviour towards customers or fellow co-workers. Only about 200 out of 34,000 participants have been sanctioned.

The scheme was and will continue to be a voluntary scheme that is positive and beneficial. Some of the coverage—particularly the BBC’s—and wilful attempts to mislead were disgraceful. My hon. Friend the Member for West Worcestershire (Harriett Baldwin) is absolutely right. The way in which this was covered was nothing short of disgraceful. The scheme is aimed at the under-24s. Putting people in their 40s on the TV was nonsensical and extremely poor-quality journalism. However, a small number of older people do get work experience placements: for example, long-term carers and people who have been out of the workplace for long periods for whom such experience is beneficial.

The right hon. Member for East Ham raised a variety of questions about letters and so forth. Of course, someone does not get a letter about the scheme unless they have volunteered to be on it. It is as simple and straightforward as that. I will tell the House a simple story, which was fed back to me by one of our Jobcentre Plus teams a couple of weeks ago. They were briefing a group of young people about the work experience scheme and opportunities. One of them—a young woman—said, “I don’t wanna do that. It’s slave labour.” Our staff said that they did not have to do or say anything at all, because the rest of the group turned on her and told her in no uncertain terms how important the opportunity was to them and how important it was that they all took part. By the time they had finished discussing it as a group, she was going to take part, too. There was no mandation from us, but mandation from her peers.

The scheme is positive. It is not about retailing. The tragic aspect to the debate is the absurd discussion about whether we should be helping young people get work experience places—of course we should. There should be no doubt about that. We are still not hearing, especially from the right hon. Member for East Ham, “This is a good scheme that we will back publicly. It is the right thing to do. We will continue it if we get back into Government.” All we hear is cavilling about this and that detail. Let us stand up and say, “We have a problem with youth unemployment. We need to do something about it. We will do something. We will all work together.” Every single one of us in this House, whether it is the right hon. Gentleman, me or any other Member here, could do a power of good for this scheme, Mr Crausby. Indeed, you could yourself, sir, in your constituency. We can talk to local employers and say, “Get involved.” This is a real way to help young people. It makes a difference. It is great. They go on into employment and many of them look back and say that it is the best thing that ever happened to them.

We do have mandatory programmes. The mandatory work activity programme gives our Jobcentre Plus advisers the discretion to refer someone whom they believe is struggling, not pulling their weight or having real difficulty in their work search to a month’s full-time activity. We do not mandate to go and work for private companies—they would not take it even if we did. The same is true of the Work programme. We cannot send people against their wishes to work for a big retailer.

[Stephen Timms]

Will the Minister give way?

[Chris Grayling]

I will not, because I have very little time.

Mandation in our system will apply to community benefit schemes and to nothing else. We are absolutely clear about that. It is the same for the Work programme. The work experience scheme is a good scheme, which must and will continue. It will now grow, because more people are coming forward to help—after all the publicity, ironically. The protesters are plain wrong. They are misguided. It is a tragedy that they are supported by the unions and Labour MPs, but we will not listen to them. We will listen to the young people who say, “This is the best thing that could happen to us.”