Welfare Reform and Work Bill (Eleventh sitting)

Debate between Emily Thornberry and Debbie Abrahams

Tuesday 20th October 2015 Public Bill Committees

[Debbie Abrahams]

My hon. Friend is making a very powerful speech. Has she read the article in the British Medical Journal last week, which looked at the impact on child poverty? It stated that an extra 200,000 children will be plunged into poverty, but it also looked at the effect on child health. The UK already has the highest rate of child mortality for under-fives, which can be directly attributed to the additional child poverty that is faced in this country. The implications of this are really significant.

[Emily Thornberry]

My hon. Friend makes a powerful point. There are many arguments against the tax credit cuts, and although it is tempting to rehearse all of them this morning, another debate is going on elsewhere. Essentially, I cut down a long speech to a short one to make the main points.

I was talking about the policy being a failure in moral terms, as my hon. Friend illustrates well. The focus today might be down in the Chamber, but members of this Committee have the real power. They have in our hands the power to do the right thing and to put the interests of working families in their constituencies ahead of the interests of their party. They have in their hands the power to put the interests of children in some of the poorest working families first, remembering that, even as things stand, two thirds of children in poverty have a parent in work. How much worse will it be after they have suffered the cuts to tax credits?

I am sure that Conservative Members who have an interest in this field are, deep down, genuinely and gravely concerned. When we put the new clause to the vote and when their Whip holds up the piece of paper saying no, will they look aside, think about the thousands of their constituents who will be so greatly affected by the Bill and vote with their conscience, vote the right way, and stop this now?

--- Later in debate ---

[Emily Thornberry]

Might I take advantage of this moment to point out that, when my local law centre takes up appeals on sanctions, it has a 100% success rate?

[Debbie Abrahams]

My hon. Friend is absolutely right. Cases are often overturned on appeal, but for someone on ESA—that means they are not well—going through that process is traumatic and can exacerbate the condition. I will come to that in a moment.

My hon. Friend mentioned the Oakley review, which reported in July 2014. It looked specifically at the JSA sanctioning. It was an important step, but there were still many unanswered questions, which is why the Select Committee wanted to look at it in more detail.

I am aware of the dreadful circumstances of food bank use to which my hon. Friend has alluded—in my area, 60% of food bank use is attributed to sanctions. More shockingly, I am aware of the reports of accidental deaths following sanctions. Those have been included in coroners’ reports, so I do not mention them lightly. David Clapson was one particular case. He was a former soldier who gave up his job with BT to care for his mum, who had dementia. When she died, he wanted to get back to work and signed on at the jobcentre. He missed an appointment with his job adviser and was sanctioned. He was diabetic. Without the £71.70 a week from his jobseeker’s allowance, he could not afford to eat or put credit on his electricity card to keep the fridge where he kept his insulin working. Three weeks later, David died from diabetic ketoacidosis caused by a severe lack of insulin. He was 59. A pile of CVs was found next to his body. The coroner said that, when he died, he had no food in his stomach. His sister, Gill Thompson, has campaigned tirelessly to get an independent review into sanctions. The petition she started has more than 211,000 signatures to date.

David is not the only person to have died following sanctions. There have been 49 peer reviews following the death of a claimant, but the DWP is still not prepared to release the details of whether sanctioning was involved. I hope Ministers reconsider that.

The Work and Pensions Select Committee inquiry reported in March. If anything, the Opposition’s concerns from the previous inquiry worsened. The negative impacts on poverty, including child poverty, debt, physical and mental health, were reported. The Committee was given the example of a woman who had discharged herself when she was in hospital because she was frightened of being sanctioned.

There is evidence that the sanctions targets were driven by targets to get claimants off-flow, distorting the JSA figures. As my hon. Friend the Member for Islington South and Finsbury has mentioned, the team from Oxford analysed data from 376 local authority areas and found that 43% of JSA claimants who were sanctioned left JSA. As my hon. Friend said, 80% did so without having a job.

The main recommendation from the Select Committee was for a more detailed independent inquiry. Matthew Oakley said that he expected that to happen. I am at a loss as to why the Government are dragging their feet. Surely that is the very least we should do for the people who have lost their lives following sanctions and for their relatives. I hope the Committee will do the right thing and support the new clause.

Welfare Reform and Work Bill (Seventh sitting)

Debate between Emily Thornberry and Debbie Abrahams

Tuesday 13th October 2015 Public Bill Committees

[Debbie Abrahams]

My hon. Friend makes a valid point and I would be grateful if the Minister could address it in his response.

Barriers to work are created by the stress of caring, often with no support. I am thinking again in the context of the £3.6 billion of cuts in social care, which also affect disabled people. When people do not have that support enabling them to work, it can build difficulties into family relationship. It is not clear in the impact assessment whether an assessment has been done on the likely increase in poverty of families with disabled children.

For example, what is the increase in NHS admissions predicted to be? I have mentioned my daughter who has asthma. The implication is that there will be other families in similar circumstances. Is there any prediction of an increase in family breakdown? We cannot be in a situation where, potentially, the Government are arguing that the measure will balance the books when it is really about cost-shunting from one Department to another. What assessment has been done on that?

We do not believe that disabled people, their families and their carers should be subject to further cuts and therefore seek to exempt households with one or more disabled children from the provisions on both child tax credit and universal credit. The Government and the social security system rightly recognise the additional costs of raising disabled children but the provisions in clauses 11 and 12 seem to be at odds with that. I oppose them absolutely and in their entirety. At the very least, the effect of the provisions should be mitigated for households with a disabled child and I urge all members of the Committee to do the right thing and support the amendments.

[Emily Thornberry]

Might I rise again? It is entirely my mistake but I realise that I spoke just to amendments 83 and 84 and not to new clause 16. Would it be convenient for me to do so now?

Welfare Reform and Work Bill (Eighth sitting)

Debate between Emily Thornberry and Debbie Abrahams

Tuesday 13th October 2015 Public Bill Committees

[Debbie Abrahams]

I am grateful for that clarification and for your leeway, Mr Streeter.

I am grateful to the various organisations, charities and many individuals who have contacted me with their personal stories about how they believe these changes to ESA WRAG support will affect them. I particularly mention Parkinson’s UK, Macmillan Cancer Support, Leonard Cheshire Disability, the RNIB, the Disability Benefits Consortium, Scope, Inclusion London, United Response, Mind and the Richmond group. Collectively, those disability and health organisations represent more than 15 million people in the UK who are disabled or have a serious long-term condition.

We want to prevent the cuts to the work-related activity component of employment and support allowance. We believe it is unjust and unfair that disabled people, and people with serious health conditions who have been assessed as part of the work capability assessment process as not fit for work and placed in the work-related activity group, are having their social security support cut by nearly £30 from £102.15 to £73.10. There is compelling evidence from the independent Extra Costs Commission, which analysed the additional costs facing disabled people and found that, on average, they spend an extra £550 a month associated with their disability.

The Government’s proposed cuts affecting people in the ESA WRAG are on top of the whole host of other cuts in social security support for disabled people since 2010. The Hardest Hit coalition has estimated that, by 2018, £23.8 billion will have been taken from 3.7 million disabled people. There were 13 policy changes under the Welfare Reform Act 2012, including changes in the indexation of social security payments from the higher retail prices index to the lower consumer prices index and the 1% cap on the uprating of certain working-age benefits, which has cut £9 billion from 3.7 million people’s social security support. People on incapacity benefit have been reassessed, which has taken another £5.6 billion. The time for which disabled people in the ESA WRAG are able to receive support has been limited, cutting another £4.4 billion. The reassessment of disabled people receiving disability living allowance to determine whether they are eligible for personal independence payment means that another £2.62 billion has been taken. That is on top of the provisions in the Bill, and we should not forget the cuts to social care, which are currently up to £3.6 billion and predicted to be £4 billion by 2020. Disabled people rely very much on support through social care.

In light of the significant existing cuts, will the Minister confirm whether the Government have undertaken a cumulative impact assessment on the latest proposed cuts affecting disabled people, in light of the requirements under the Equality Act 2010 and the Equality and Human Rights Commission’s work on cumulative impact modelling?

This morning, the Exchequer Secretary mentioned the importance of controlling welfare and social security spending. The UK currently spends 1.3% of GDP on disabled people. Out of 32 European states, we rank 19th in what we provide to disabled people. I did not have the information at my fingertips this morning, but for families and children it is slightly worse at 1.1%—23rd out of 32 European countries. We are a wealthy country, and to build our recovery on punitive measures against disabled people, vulnerable children and families is appalling.

The Government’s impact assessment on the changes to the work-related component of ESA—apart from being delayed, so that Members were unable to scrutinise it before Second Reading—is very limited in its analysis. For example, although the assessment estimates that approximately 500,000 people and their families will be affected by the cut to ESA WRAG support, there is no analysis of the impact that will have on the number of disabled people who will be pushed into poverty. We know that disabled people are twice as likely to be in persistent poverty as non-disabled people and that 80% of disability-related poverty is caused by the extra costs that I have mentioned. Last year there was a 2% increase in the proportion of disabled people living in poverty, which is equivalent to more than 300,000 disabled people pushed into poverty in one year. Given that half a million people will be affected, according to the Government’s own impact assessment, and will lose 30%, or nearly a third, of their income, what is the Government’s estimate of the increase in the number of disabled people living in poverty?

[Emily Thornberry (Islington South and Finsbury) (Lab)]

My hon. Friend is making a very powerful speech. She has come to the Committee relatively late. I know that this is an area of expertise for her, but perhaps I can put on record the evidence that was given to us before she was on the Committee. It was essentially that if the Government are trying, as they put it, to “incentivise” people on employment and support allowance into work by cutting their benefits so that they live on the same level as JSA claimants, it will mean that they are ignoring the fact that people on ESA take longer to get into work. They may well find themselves in a crisis over the winter, when they need a new coat, because they have been unemployed that much longer. People claiming ESA are recognised by the system as not being fit for work.

[Debbie Abrahams]

My hon. Friend makes an absolutely pertinent point; in fact, I was going to come on to that, so she must have read my mind. On Second Reading, the Secretary of State stated that

“the current system discourages claimants from making the transition into work”.—[Official Report, 20 July 2015; Vol. 598, c. 1258.]

But what about people with progressive conditions such as Parkinson’s, multiple sclerosis or motor neurone disease? There is no chance that people with those conditions will get better, but they have gone through the work capability assessment process and been placed in the work-related activity group. Are the Government seriously saying that this measure is going to incentivise that group of people into work? How many people with progressive conditions such as those will be affected? Given that, and the fact that in 2014 45% to 50% of ESA appeals were upheld, will the Government finally accept that in addition to being dehumanising, the work capability assessment is not fit for purpose and needs a complete overhaul?

The impact assessment has estimated that, by 2021, approximately £640 million a year will have been cut from social security support to disabled people, with £100 million a year to be provided in unspecified support to help disabled people into work. If the Government are serious about supporting disabled people into work, what measures are in place? This is exactly the point that my hon. Friend the Member for Islington South and Finsbury was making.

What measures are in place to ensure that there are jobs for those disabled people who are able to work? What are the estimates of the impact on the employment of disabled people, how this will impact on the Government’s target to reduce the 30% disability employment gap—it is actually 34% in my constituency in Oldham—and how many employers will be engaged? I hope that it is more than the current 68 active employers from the Disability Confident campaign. The campaign has been going for two years and yet only 68 employers are currently active in it; 33 of those are existing disability charities. I hope it will be more than that, but why was this not included in the impact assessment process?

What exactly is the “work” bit in the Welfare Reform and Work Bill? We have heard about reporting on apprenticeships and about different aspects of reporting. But what is the link to ensuring that disabled people are able to go into jobs before they have a third of their weekly income deducted?

On the Thursday before the August bank holiday, five months after the Information Commissioner had ruled that the Government must publish data on the people on incapacity benefit and on ESA who had died between November 2011 and May 2014, the Government finally published these data. They revealed that the death rate for people on IB/ESA in 2013 was 4.3 times that of the general population, and had increased from 3.6 times in 2003. People in the support group are 6.3 times more likely to die than the general population and people in the work-related activity group—the people whose support the Government are seeking to cut—are more than twice as likely to die. The figure is actually 2.2 times more likely to die than the general population.

The Government have, regrettably, continually maligned, vilified and demonised people on disability and other social security benefits. The language around calling people shirkers and scroungers has been picked up and used in many media outlets. In 2010 the instances of use of the term “scrounger” by the mainstream press increased to 572—more than 330% from 2009—and it has stayed at this level. Language is so important, and the way that social security claimants—particularly people with disabilities—are portrayed in the media is so important. The innuendo that people with a disability or illness might be “faking it” or are “feckless” is quite frankly grotesque and belies the epidemiological data. Incapacity benefit and ESA are recognised as good population health indicators. I can say that as a former public health consultant. I have experience of this and I have worked in this field. The release of the Government’s own data, which show that this group are more likely to die than the general population, proves that point. This group of people are vulnerable and need care and support, not humiliation, from us.

Once again the cart is being put before the horse: make cuts in support and cross your fingers that something turns up for disabled people. That also applies to people on low incomes. The policy flies in the face of the Conservative party’s pledge to protect disabled people’s benefits. All last week’s warm words at the Tory party conference are just that if they are not followed up by action.

With this cut to the ESA WRAG support without anything to replace it, the Government are condemning more people with disabilities and their families to living in poverty and I predict, unfortunately, that more tragedies will undoubtedly happen. I urge the Government and all members of the Committee to think again and vote against clause 13 standing part of the Bill.

--- Later in debate ---

[Emily Thornberry]

Good, I am glad. So, 39% of single parents are having their decisions overturned on appeal. My point is that the discretion given to Jobcentre Plus officials is not appropriate, and that it would be better, and right, to put the requirements into regulations instead, so that they are given legal standing. Discretion is not working. When nearly 40% of cases being overturned on appeal, there is something wrong with the system. That is not rhetoric, it is the evidence, and something needs to be done. The situation raises serious questions about the training of Jobcentre Plus staff and Work programme providers and their ability to make appropriate decisions. To illustrate that point I will give the Minister a few stories from single mothers. Their personal details are disguised, but their cases are real.

There is a women called Geri; she is single mother and has a nine-year-old daughter. Her jobseeker’s agreement sets out the requirements that she must meet as a condition of receiving her benefits, which are that she must apply for 21 jobs a week, either full or part-time, and be prepared to travel up to an hour each way for a job. Emma has a 10-year-old son and lives in Bristol. Her jobseeker’s agreement requires her to look for work in London, which is a 90-minute commute each way, despite the fact that the cost of a season ticket would exceed £5,000 a year. Furthermore, the extended hours of travel would make it impossible for her to take her son to school and pick him up at the end of the day.

A woman called Fiona had her jobseeker’s allowance stopped for three months because she turned down night shifts, which she had to do because she could not find suitable childcare for her daughter. Elaine was threatened with sanctions by her Work programme provider when she said that she could not attend back-to-work courses during the summer holidays. She has two young daughters whom she cannot leave on their own at home. She was offered no help with childcare costs by the provider of the voluntary work that she was supposed to be doing in order to make her fit for work.

I have heard stories of single parents being threatened with sanctions if they do not attend appointments that clash with the school run. I have heard stories from single parents who have been sanctioned for missing appointments in order to stay at home when their children are unwell. I want to point to the evidence and try to help the Minister to make the right sort of social policy, so I point out that Islington Law Centre has a 100% success rate when challenging sanctions imposed on my constituents, which I really think should give Ministers pause for thought. The centre represented, for example, a pregnant woman who was sanctioned for missing an appointment when she was so unwell with morning sickness that she was in hospital.

[Debbie Abrahams]

To add to my hon. Friend’s list, I have a constituent with three primary school age children, all at different schools. She was compelled to be at appointments when she was trying to get her children to those different schools—she was always given appointments that made it absolutely impossible for her to get to the jobcentre.

[Emily Thornberry]

Members on both sides of the House may well have examples of such sanctions from people who have come to their surgeries. In particular, single parents are being sanctioned in an attempt to push them into work that is completely inappropriate given their caring responsibilities.

I come back to the distinction between regulations and guidance, which I think is important. It may seem academic to some, but I can assure Ministers that it is not at all academic to the women who are feeling the impact of the lack of adequate flexibility within the system and the lack of understanding of what the rules really are. For our purposes as legislators, it is important to make the distinction between the legal force of regulations and of guidance. Regulations have the force of statute, as they are introduced through secondary legislation, but guidance does not. Guidance is really soft law, and these women do not need soft law.

The principle was summed up quite well in the Supreme Court judgment of R (on the application of Alvi) v. Secretary of State for the Home Department—it is known as the Alvi case—in which the distinction at issue was between immigration rules and informal guidance. Lord Clarke wrote in his judgment:

“It seems to me that, as a matter of ordinary language, there is a clear distinction between guidance and a rule. Guidance is advisory in character; it assists the decision maker but does not compel a particular outcome. By contrast a rule is mandatory in nature; it compels the decision maker to reach a particular result.”

As I say, guidance has been called soft law. As was said in Ali v. London Borough of Newham,

“the court should be circumspect and careful so as to avoid converting what is a non-binding guidance into, in effect, mandatory rules.”

We all know why we are talking about guidance and regulations. We all know that the couple of little paragraphs on page 14 of the Bill will be going to court and will be judicially reviewed, so we need to be quite clear about what the Government want to do. Our job, as Her Majesty’s Opposition, is to look carefully at what the Government intend and at what is fair. We all know that what is said in this Committee is of relevance to the future court cases that will be coming because of the manifest unfairness that will result from the clause.

Let us therefore be clear. I am sure the Minister will tell us how fair all this is, and how everyone is proceeding with good will. But we have heard that before. We had a promise that people in jobcentres would exercise discretion fairly, and so on. We have had enough of that. They have not been doing things fairly, and it has been going wrong. We would now like clear rules so that we all know where we stand—both the single mothers who are trying to balance their caring responsibilities and want to find appropriate work, and the people in jobcentres who quite often feel compelled to force women into work. Any new rules will not be properly understood unless they are made clear. If they turn out to be unfair, they can be challenged.

Under the system that we have, a single mother who puts her responsibility to her children ahead of her requirements under the claimant commitment could lose several weeks of income as a result of an unfair sanction. That means that that family—those children—will not have any money for food. That is a desperate situation, so we need to make sure that something like that is done only in extreme circumstances and that it can be properly justified. That sanction may well be overturned—as I say, if Members come to Islington Law Centre they will find a 100% success rate—but in many cases the damage will already have been done. Does the Minister not agree that regulations, which have the force of law, could protect against some of those injustices? If so, they are worth having.



I turn now to the amendments. As things stand, there are two problems. First, there is inadequate knowledge of lone parent flexibilities: it is not known what it is reasonable to expect from jobcentre staff and Work programme providers. Secondly, single parents themselves may lack knowledge of what would reasonably be expected, so it makes it more difficult to challenge the unreasonable demands that are sometimes placed on them.

--- Later in debate ---

[Emily Thornberry]

That is why I am trying to clear this up. I was asking whether the impact assessment contains anything in particular on the effect of the changes in this clause, particularly with regard to extending the time that will be available. People will have to wait 39 weeks before they get any assistance with their mortgage. Will that increase the amount of homelessness? That is an important piece of evidence that is sadly lacking when the Government are making proposals to extend the time period.

Although the Minister talks with great glee about full employment and this and that, he is changing the legislation so that, instead of people being given assistance to pay the interest on their mortgage, which has always been the system—the assistance pays not for the equity in a property but merely for the interest payments in order to keep people safe, warm and secure in a home—people will have to take out a loan against that property. Furthermore, the Government are changing the legislation so that people have to wait for an extraordinary, scary period of 39 weeks, during which they have to keep off those who actually own the property and who have mortgaged it to them. A person who has lost their job will suddenly have to fight off those who want to repossess the property.

In the real world, we all know that there may be a grace period, but 39 weeks is a very long grace period. My concern is that it will increase the amount of homelessness. Wrapping that together with the Government’s other housing policies, which are also having an adverse effect on homelessness, will increase the amount of homelessness. That is why I asked whether the impact assessment is helpful to the Government in reassuring all of us that the measure will not increase the amount of homelessness.

On the face of it, making a mortgage company wait 39 weeks will increase the number of repossessions. Frankly, if a mortgage company hears that someone has lost their job—the person might be in their late 50s—it might make an assessment and decide that that person is unlikely to get another job. There may be areas of Buckinghamshire, London and the home counties where it is relatively easy to get a job, but there are other areas across the country where, frankly, there are no jobs. The tragedy of Redcar, of course, is that when people lose their job, the chances of their being able to get another are practically nil. They certainly will not be able to get a job at a level that will help them to continue paying their mortgage.

[Debbie Abrahams]

My hon. Friend has hit the nail on the head. In fact, the Money Advice Trust has made exactly the same point and has expressed its considerable concern about extending the period from 13 weeks to 39 weeks. The experience of all lenders and advice agencies is that early intervention is the key to resolving—