(11 months, 1 week ago)
Commons ChamberLet me begin by congratulating the Prime Minister on raising relaunches to an art form that should be admired. It began in his conference speech, when he announced that he was the new agent of change. That lasted about a week of Tory party infighting. Then, we had the King’s Speech three weeks ago. There was no change in that; it was all very much the same from a Government who have run out of steam and ideas. Third time lucky: with the autumn statement he had a chance to turn the corner to improve our economy, invest in public services and support working people. But what did we get? A party political autumn statement, purely focused on attempting to move the dial of the opinion polls for the next general election.
The headline grabber was the national insurance cut, but it does not take an economist to work out that people will be paying more taxes. Going into the autumn statement, the increase in NI was about 10p. We have now been given back 2p, so to use the analogy of the hon. Member for Boston and Skegness (Matt Warman) about cake, it was like taking the cake away and giving back two small slices. Then, because of the freezing of personal allowances later this year, not only will those two slices be taken again, but the Government will have everything else in the cake tin. Added to that, inflation is still high: in the last two years it has risen by 16%, with food inflation up 28%. The Prime Minister claims to have got inflation down, but it has had nothing to do with him—it is down to the Bank of England. That will not con people, because prices in the shops are still rising.
How did we get here? As my hon. Friend the Member for Leicester West (Liz Kendall) said, the Government say it is, “Nothing to do with them, mate”. That has been the line all along. This has been the accumulation of 13 years of not only austerity but a way of dismantling the state. The criminal justice system is in absolute crisis; health is broken; local government is bleeding on its feet; education is in a dire situation. In local public health, drug and alcohol services and others have been slashed because of the effects of Government spending. We have had flatlining growth and, as my hon. Friend the Member for Bootle (Peter Dowd) said, people paying more for less.
The Secretary of State for Work and Pensions tried to present a cuddly image, saying that the Government’s welfare changes were all about getting people into work. I have no problem with genuinely supporting people into work, but the hon. Member for Boston and Skegness let the cat out of the bag when he said that they were about changing people’s behaviour—as though people somehow choose to be on welfare. We just heard the hon. Member for Amber Valley (Nigel Mills) say that he would get a bit nervous if the language around that gets too harsh, but that is exactly what the Conservatives are going into the election with. They will say, “We’ve cut taxes and we’re going to be hard on the feckless poor,” which is how they see people on welfare.
We are in this situation because of the pressures on people’s daily lives. The Secretary of State’s only suggestion on mental health was for more talking sessions. Well, I am sorry but if we do not replace the money for local government, social services and other infrastructure at a local level, mental health crises will increase. We have the ludicrous idea that the answer for people who are on welfare because of their mental health is to get them working from home. I support people with mental health issues going into work, but it must be the right type of work. The idea that sitting at home will help people’s mental health is, frankly, ridiculous.
I was shocked that there was no continuation of funding for the suicide prevention programme. Suicide is the biggest killer of men, but the programme will run out in March because there was no extra funding in the autumn statement. It would cost £1.40 per person to address that crisis, the shameful stigma of suicide and the suicide rates in this country, which are still far too high.
On local government, the Government’s botched announcement last week on levelling up came against the background of a sector that has had a 30% cut in its real-terms funding. Durham County Council has lost £262 million a year and the Government produce their shuffle trick and say, “Why aren’t you still producing services?”, implying that it is somehow inefficient. The cost is then moved on to local council tax payers. This is part of the Conservative Government’s deliberate strategy over the past 13 years of dismantling those parts of the state that we have always recognised as being vital to the coherence of our local communities.
I want to raise one issue relating to sub-postmasters. People know that I have been campaigning for them for well over 13 years. I just hope that money is set aside in the Treasury for full compensation. On a personal note, the person who got me into this, my constituent Tom Brown, unfortunately passed away last night. Tom was prosecuted by the Post Office. He will not get justice. He goes to his grave without the justice that he deserves—one of far too many.
There is no change in the autumn statement. It is time for change, as other colleagues have said. The only way we will rebuild Britain, rebuild our communities and rebuild the state—not a state that tells us what to do, but a state that is there for our constituents and our communities—is if we have a general election and elect a Labour Government.
(1 year, 4 months ago)
Commons ChamberI am pleased to have secured the debate. The heading refers to “private pension schemes”, but I want to refer to a particular scheme, the Nissan pension plan, although I accept that some of the issues I will raise could affect other schemes as well.
Let me start by giving some of the background. The Nissan pension plan is a defined benefit scheme that was closed in 2020. In the north-east, this issue mainly affects those who work at the Nissan manufacturing plant, which is in the constituency of my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson). However, many of the employees lived, and continue to live, across the north-east, including in my constituency.
As in other pension schemes, benefits under the Nissan scheme are subject to an annual increase. However, the rate of that increase depends on when the pension entitlement was accrued. The part of the pension that was accrued after 2005 is increased by up to 2.5%. The part that was accrued between 1997 and 2005 is increased by 5%. Anything accrued before 1997—this is the main part of the scheme—is subject to discretionary increases by the pension trustees.
I say that at the beginning to explain the context of how the issue I am going to raise has come about. In 2011, the trustees of the Nissan pension scheme changed the rules around the funding when individuals take a lump sum out of their pension—when people retire, it is quite common that they commute a lump sum from their pension. The trustees decided that any lump sum would initially be paid through money in the accrual pot from 1997 to 2005—the pot with the highest increase. Should that pot be used up, they would go to the next pot—the post-2005 pot, which gets the second highest annual increase. Only if that had been exhausted could the pre-1997 contributions be touched. In effect, that reversed what happened under the plan’s previous rules. The impact is that, if a Nissan pension scheme member takes a lump sum from their pension, their remaining pension will increase at a lower annual rate—if there are any increases at all; I will come to the pre-1997 pots in a minute, which have not had an increase for 23 years. This was brought about by decisions taken by the pension trustees.
The issue was raised with me by my constituent Steve Clare, who has now been inundated as other pensioners have learned what has happened to their pensions. He has formed an action group, which has members from across not just the north-east of England but the country who are part of the Nissan pension scheme. Hundreds of people are affected, and they are finding out about these changes only when they come to take their pension and realise that they are not actually getting any increase in it.
I commend the right hon. Member for bringing this issue forward. He said in his introduction that this issue will affect many other people across the United Kingdom who have pensions, and I will give an example. I recently had a young lady in my office whose pension has decreased over the last two years. She said, “Jim, I have no idea how these things work, but I know this: by the time I retire, my state pension won’t be enough. How do I know what to do?” That is the eternal question; the fact is that people have no idea what happens with their pension—they trust the provider. Does the right hon. Member therefore agree that, now more than ever, we need to ensure that providers are trustworthy—that is No. 1—and that that comes with better and good regulation, which, with respect, is down to the Minister and the Government?
I thank the hon. Member—it would not be an Adjournment debate without his intervention. He raises an interesting point. Most people do not understand their pension; they put their trust in the provider. They think that they are saving for their retirement and that they should have a pension when they retire—let us be honest, we have all encouraged people to pay into a pension—only to be let down by the way in which the various schemes operate. I will touch on the regulation in a minute.
I want to make two key points at this stage. First, the change to the pension scheme was not directly communicated to pension plan members. In fact, having done some research, I understand there is no legal requirement for the scheme to do so. However, the trustees cover themselves slightly on page 8 of the 2011 annual report by saying that, during the planned year, they had made changes to some factors and a calculation of methodology—it is literally two lines in the annual report. I beg anyone to understand what that meant in practice for people’s pensions. The annual report provided no further detail and, frankly, it is not worth the paper it is written on. The first time most people found out about this was when they realised the pension they had already taken was not increasing.
According to the Pensions Regulator’s website, trustees must act in “the best interests” of scheme members, as well as “prudently, responsibly and honestly.” In this case, I would argue that the trustees are not putting the interests of pensioners first; they are putting the interests of Nissan Motor Corporation above those of pensioners. The cumulative effect of what they have done is to save Nissan money it would have put into the pension scheme. Nor would I argue that it is responsible or honest to hide the changes in less than two lines of an annual report. There was no direct communication to let pensioners, or potential pensioners, know about the changes and how they would affect future years.
When I heard about this, I thought the obvious person to go to was the pensions ombudsman or the Pensions Regulator. Well, there was a bit of a ping-pong between the two of them. One wrote to me saying that the other was responsible, and vice versa. It went backwards and forwards. Frankly, my experience of them is that they are about as much good as a chocolate teapot. They are just blaming one another. It was this Member of Parliament writing to them—heaven help an individual pensioner writing to them to get any joy out of them.
It comes back to the point raised by the hon. Member for Strangford (Jim Shannon) on regulation and how we control these pension schemes. As I say, my experience of those two organisations has not been very good, so I would like the Minister to look at that point about the regulator and the ombudsman.
Constituents have contacted me on this very issue, so I thank my right hon. Friend for securing this debate. Does he agree that this is an outrageous way to treat workers and that, frankly, it reflects terribly on Nissan?
It is. These people have worked hard and saved into their pension. They think they have done the right thing and, through no fault of their own, they have found themselves in this position.
I did finally get a line out of the pensions ombudsman; he said that he was not prepared to look at the case because that notification, that one line in the annual report, was good enough. I find it absolutely amazing that it could be argued that this is communication with pension members. I doubt very many people actually read their pension scheme’s annual report. I am one of the sad people who do, but that is because of my trade union background. Many people do not. My hon. Friend the Member for Sunderland Central (Julie Elliott) knows that I am a bit of an anorak when it comes to the pension industry. Again, the idea that that can be held up as showing that the pension trustees have informed the pensioners is ridiculous. But that was the end of the game—no more correspondence came forward from either the regulator or the ombudsman.
I am grateful to the right hon. Member for securing this debate. I know how hard he has worked on this issue, and I am also grateful for his time in talking me through some of these issues. I have been contacted by two constituents who have also been affected by this. They make a similar point to him, pointing to the one and a half lines in the “annual pension meeting report”, as they term it. So it is possibly not even the annual report. They say that the impact of that change has never been explained. Does he agree with my constituent who said that this was a very underhand way of approaching pensions?
It is a very underhand way. If people’s pensions are going to be changed by some trustees, they should at least fully inform people of the effects. In this case, some people based their decision, especially before 2011, on what lump sum they would take on what was going to go forward. I would be interested to know whether those retiring now and accessing this scheme are being told, “In most of your pension, you won’t get any increase in future.” The hon. Gentleman demonstrates another point: this affects people not just in the north-east of England, but across the country. Transparency and honesty with people about their pensions has to be achieved.
I commend my right hon. Friend for all the work he has done on this issue and for bringing this debate tonight. He is talking about the number of people affected and saying that they are not just in my patch, in Sunderland, or even just in the north-east; they could be spread right across the country. Does he have any idea of the number of people who may be involved and affected by this?
I do not, but I know that Mr Clare, my constituent who has put this on Facebook, has been inundated with messages from people from around the country who were not aware. Partly it is the cost of living crisis—suddenly, people are thinking, “Wait a minute, why isn’t my pension going up as much as it used to?” It is all right saying to people, “You should be tracking this and what you’re doing” but most people do not live like that. They just assume that a credible pension scheme such as this should treat them fairly and that they would actually get this. So the number of people affected could be quite large.
Secondly, I said earlier that the pre-1997 benefits are subject to an annual increase at the discretion of the trustees. Well, there has been no discretionary increase in these pension pots in the Nissan pension scheme for 23 years. Nissan has made no additional contributions to the scheme to provide any increase. If someone’s pension is mainly in the pre-1997 pot, inflation is eating it away: inflation in the cost of living now, but also in future. If they live long enough, it will basically be worthless. We have 9% inflation at the moment, but if that is not dealt with, it will eat away at the pensions of those people who expected that they would have a comfortable retirement.
In 2020, Nissan said that the defined-benefit scheme was unsustainable. Let us be honest, many defined-benefit schemes were closed. However, the issue with that is in 2020, Nissan made £68 million in profit. The company has also received many millions of pounds of public money, but it is clearly not doing the right thing by its workers.
Most people did not find out about the implications until they realised that their pension was not being increased. The fact that Nissan had not put anything into the scheme means that the pensioners are basically paying for the scheme as it goes forward. Ultimately, Nissan needs to put money into the scheme, just as other organisations have had to put into their schemes, but that brings me back to the point about what the trustees are doing—they are clearly not acting in the interests of the pensioners.
This is one scheme, and I accept that there are others where this will have happened. Hard-working people are being short-changed. They trusted that the pension trustees would be looking after their interests, when they clearly are not.
I know some people will say, “Why are you attacking Nissan?” Well, I do not wish to do that. Nissan has been a fantastic employer, bringing employment and regeneration to the north-east, over the last 20-odd years. Nissan has not only employed people, but it has provided jobs in the supply chain as well. It has been an economic success story for the north-east. However, we must remember that that success has been derived from the hard work of people who are now in receipt of pensions. We should not forget that, in terms of the situation in which they now find themselves.
The Minister will know that this will not be the only scheme that has been affected, but could she look at the ombudsman and the regulator? They are clearly not fit for purpose. In this case, we have an issue that will grow. Possibly after this debate, more people will look at their pension statements and realise how they are being short-changed. It is not fair that hard-working, loyal employees of Nissan are being made to pay for issues that are not theirs. They have worked hard and deserve their retirement. They expected a good retirement but, alas, they are not going to get it, in many cases.
It is absolutely correct that scheme members should have received an illustration, as discussed. If that was not the case, that is something we need to pursue. If instead they received advice that was indeed misleading, that should absolutely be taken up with the ombudsman and, where necessary, the regulator. Again, if my hon. Friend would like to pass me any information he has on that case, I will take it up directly with the ombudsman.
I am not aware of any illustrations being given, but, if they were, that illustration would also have had to explain to individuals where the lump sum was coming out of and its impact on future increases on the pension. I shall do more research and talk to people, but I am not aware that that type of detail was ever explained to people, as the hon. Member for Milton Keynes North (Ben Everitt) said.
(5 years, 4 months ago)
Commons ChamberThe number of young people who are unemployed has almost halved since 2010. Female unemployment is at a record high, and wages are growing at their joint fastest rate in a decade. These are the reasons why our labour market is outperforming many—
On a point of order, Madam Deputy Speaker. Call me old fashioned, but I thought the purpose of the Minister coming to the Dispatch Box was to reply to the debate. He has now been on his feet for 10 minutes, and all he is doing is reading out his civil service brief. This is becoming a habit among Ministers. He said that he was going to refer to Members in the debate, and I think he should start to do that—
Order. I would have stopped the right hon. Member for North Durham (Mr Jones) a few seconds earlier, but the House must forgive me for being unable to speak volubly today. He knows that this is not a point of order, and that it is up to the Minister to answer the debate however he wishes to do so. The Minister is perfectly in order.
(5 years, 9 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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There are a number of ways in which people can claim universal credit. There is, of course, the online process, and help with that can be provided in jobcentres. There is also the Freephone telephone line, and people can also have appointees. As the hon. Gentleman has said, there are home visits, but, again, I would be happy to discuss the issue with him.
Many people going on to universal credit find it difficult to manage their finances. May I ask the Minister to give serious consideration to local working with credit unions? I am a director of NE First Credit Union for the North East, which offers people simple bank accounts and affordable finance. Would the Minister consider linking credit unions with the DWP so that people can not only receive advice, but stop getting into the hands of loan sharks?
I would be happy to meet the hon. Gentleman to discuss that suggestion and see what is possible, but, as he will know, we have a new arrangement with Citizens Advice and Citizens Advice Scotland to ensure that advice is given to people to help them as they move on to universal credit. That arrangement will kick off formally in April. We have made £39 million available, and of course we want the process to work well.
(6 years, 4 months ago)
Commons ChamberMy hon. Friend is, again, correct. The NAO made it clear that the pace could do with speeding up. It also said that we should continue with universal credit, far from what the Opposition are saying. It said that we should speed up the pace and carry on going, and that progress had been made in what we are doing. I say to Members: please read the report.
Having visited the DWP offices in Stanley and Chester-le-Street in my constituency, can I agree with one thing that the Secretary of State said and say thank you to the staff for their work? However, a real fear has been raised with me by constituents who have poor IT skills. What more can we do to support these individuals and also to expand access to IT, because many libraries have been closed or have introduced restricted hours, which is a stumbling block for a lot of those individuals?
I thank the right hon. Gentleman for mentioning work coaches in such a positive way, because they are doing a significant amount of work, and I hear only praise wherever I go. The system needs to give people support, whether with IT or debt. Support is definitely there for IT—£200 million has gone to local authorities. The jobcentre can point claimants in the right direction, so I ask them please to go via the jobcentre in these situations.
(6 years, 9 months ago)
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I have to make progress—just give me a minute.
DLA was criticised for having complex and subjective criteria and inconsistent decision making, resulting in too many awards and too few reviews of awards. The Government say that the PIP process is
“a more active and enabling benefit”.
I disagree in the strongest possible terms. The introduction of PIP was another cuts exercise. The coalition Government made the need to make savings a clear aim of the new benefit. [Interruption.] They said it themselves. According to the Library, PIP was expected to reduce expenditure by £1.5 billion, and 607,000 fewer people were expected to receive PIP by 2018. That kind of reduction cannot be achieved without the anguish and suffering of thousands of people.
I congratulate my constituency neighbour, my hon. Friend the Member for North West Durham (Laura Pidcock), on the debate.
The hon. Member for North Swindon (Justin Tomlinson) is right in what he says about how the system should operate, but that is not how it is operating in practice. In the Mind survey, 55% of those surveyed found that their PIP was either stopped or reduced. I also want to mention that study’s satisfaction rate for people with mental health issues. We are making the same mistake with that as we are with the work capability test. If we are going to have a system that is fair to people with mental illness, we need properly qualified assessors, and that is not happening. It was the same with the work capability test: the assessments were done by people who had no qualifications to give them an understanding of people with mental illness. That is not right.
Yesterday in the Chamber I did not get an answer when I asked the Minister, at column 708, what happens to the 22% of people with mental illnesses who, according to the Mind survey, did not appeal because of their condition. I know those cases will be looked at again, but do I advise constituents who have not appealed to make a new application, or will those concerned somehow get around to seeing them? We need clarity for those people, many of whom have valid claims but felt unable to appeal because of the onerous nature of the system. My hon. Friend the Member for North West Durham is right; in Durham, welfare rights will tell you the appeal waiting time is now more than a year for such cases.
I want to touch briefly on a couple of constituency cases. What the hon. Member for North Swindon said about lifetime awards and people missing out may be true, but I can give him an example of the opposite. A constituent was given PIP from 2016, and when his condition worsened he put in an application for the higher rate and, after an assessment, had his entire PIP taken away. The mobility issue is also creating complete heartache. A constituent of mine has got five stents and has had two heart attacks. He went for assessment in January and did not qualify for PIP. They said he was not entitled, so he will lose his mobility car. He got a letter the other day saying he had not been entitled to the car since last October. I do not know how that view was reached when the assessment happened in January.
I want to nail the idea that people on PIP somehow are shirkers, and the lazy of society. [Interruption.] I am sorry—that is some people’s narrative. I am not going to listen to anyone who comes in here as an obvious Whips’ plant to bolster the number of Tory MPs. Members who want to make a contribution should put in to speak. I give credit to the hon. Member for North Swindon, who at least made a speech rather than some cheap intervention that the Whips obviously told him to make.
In many cases, the people I am talking about are working. The worst case I know of is of a man in his 40s with a degenerative condition, who was a butcher and could not work. He retrained in IT, got a job, went for his PIP assessment and was not awarded the higher enhanced rate. Therefore he lost his mobility car. That is a guy who got off his backside, as he said to me when he came to my surgery, and went to get a job because he did not want his children to grow up in a household where the father was not going out to work. It cannot be fair that we are dealing with such people in the way we are.
The system as it has been designed is making all the same mistakes as the work capability test did. It is a sausage machine to get claims through. I would argue—to save money for the Government—for taking out the cases that we know will not improve. We are wasting our time on those individuals’ cases. As to making sure that the system works properly for others, especially those with mental health issues, we must have a system where assessments are done by properly qualified people.
The people who claim PIP do not choose to be in that position. Any one of us here today could end up on it if we had a serious illness or accident. Claimants do not want to be on PIP. The way to judge a society’s fairness is by how it treats its most vulnerable. I am sorry, but the system we have is not treating them fairly.
(6 years, 9 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I thank my hon. Friend for her contribution. She is absolutely right to focus on parity of esteem—the Government have legislated for that—between people with mental and physical health conditions. That is really important.
Let us just look at the facts about how many people with mental health conditions are being positively supported by PIP. The latest figures from 27 October show that 66% of PIP recipients with mental health conditions get the enhanced daily living component compared with only 22% who receive DLA, the predecessor benefit. Some 31% of PIP recipients with mental health conditions get the enhanced mobility rate compared with just 10% of DLA recipients. It is absolutely the case that hundreds of thousands more people are being helped with PIP than with DLA. It is of course important, however, to do all we can continually to improve the process.
The mental health charity Mind found in its survey last year that 22% of the people it surveyed did not actually appeal against a PIP refusal because of their condition—they did not feel able to do so. I assume from what the Minister is saying that those people will be part of the reassessment, but what advice should Members of Parliament give those individuals now, because some will want to put in new applications? What support will they be given, because some of them have been left in a very difficult position, through no fault of their own, due to their mental illness?
We will be working with Mind—I agree that it is an excellent charity—and other organisations, and they will help us to shape this process so that it is conducted in a sympathetic and appropriate way to make sure that we reach all people who are entitled to PIP.
(7 years, 7 months ago)
Commons ChamberOrder. Before the hon. Gentleman intervenes, I point out that there are 10 other Members who wish to make speeches in the debate, including the Minister who will wind up. The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) is being very generous, not only with her own time, but with time that would otherwise be available to others. I know she will want to tailor her contribution accordingly.
I advise my hon. Friend not to put much credence in planted Whips’ questions from Tory Back Benchers. Another element of concern relates to people whose mental health condition worsens when they have a failed assessment. In some cases, they end up going into hospital, which is another cost for the NHS.
I could not agree more with my hon. Friend. That is such a relevant point, which, again, has not been factored into the Government’s silo approach.
The third justification the Government have used for bringing in the new regulations is that PIP is much more generous to people with mental health conditions—we have just been talking about that. The mental health charity Mind completely refutes that. Its data, based on Department for Work and Pensions statistics, reveal that 55% of people with mental health conditions previously supported by DLA get either reduced or no awards when they transfer to PIP. Indeed, the Government’s own data, when appropriately weighted, show that only 12% of people with a mental health disorder and another condition are on the enhanced mobility award.
These new regulations are nothing more than a shameful cut. Once again, this Government are trying to balance the books on the backs of the sick and disabled. The Government’s own analysis estimates that the new regulations will affect more than 160,000 people by 2023, the majority of whom will have mental health conditions. Many of these will be newer applicants, but the regulations will also affect those who are being reassessed, who will not be eligible for the full support to which they would have been entitled under the rulings of tribunals—an effective cut of £3.7 billion.
PIP helps disabled people to fund their living costs and, in particular, the additional costs that they face because of their condition. The disability charity Scope has estimated that these additional costs amount to approximately £550 a month, and are the key reason why disabled people are twice as likely to live in poverty as non-disabled people. For someone who might not be able to leave their home on their own, PIP would help with extra heating costs, or might pay for someone to assist them when they have to travel to medical appointments, for example. PIP is a vital source of income to prevent real hardship, yet to the shame of this Government, people are being denied this support.
When a claimant comes to speak to any of us, as their Member of Parliament, presumably we talk to them about the respects in which they feel the decision was not right. When claimants receive a letter that says that they will not receive the benefit for which they were hoping, that letter spells out why that is, which normally triggers an assumption by claimants that their particular challenge has not been considered. A claimant will then submit additional late evidence, the claim will be looked at again and a different decision may be reached, but that does not mean that the original decision was wrong on the basis of the facts that were originally presented.
I am keen to find a way in which assessors can automatically access claimants’ medical records, with their consent. Many people have to fill in a 50-page form in which they must specify their challenges, and they sometimes under-egg those challenges.
I know that the hon. Gentleman has been a Work and Pensions Minister, but he is just wrong. In my experience of constituency cases, the assessors do not consider some of the evidence, even when people take it along with them. When I have intervened and asked why that is, the cases have been overturned. I am sorry, but the system is not working.
I am not wrong. I said that the vast majority of successful appeals were due to the late submission of additional evidence. That is a fact.
There just is not enough time for everyone to get in. Some 66% of people getting PIP with a mental health condition get the enhanced daily living amount, which compares with 22% who were receiving the highest rate of DLA.
I will finish by focusing on this Government’s record on helping disabled people into work. Since 2013, the number of disabled people in work has increased by half a million. However, those with sight loss are at the bottom of the table, and I hope we can do more to ensure that they get—
On a point of order, Mr Speaker. The hon. Lady is making a good speech, and she makes some valuable points about PIP, but it has got nothing to do with the regulations we are talking about today.
The Chair has to make a judgment about pertinence and at this stage I am content with my own judgment. If the hon. Gentleman is not, I shall do my best to bear that burden with such stoicism and fortitude as I am able to muster.
I do not agree with the first of the hon. Gentleman’s two points. He should continue to listen to what I have to say. I agree with his second point and, if he listens to what I have to say, he may find that we are aligned on that.
I thank the Minister for being exceptionally assiduous in responding to and discussing my concerns on these matters. I have had several meetings with her in which she has emphasised her commitment to achieving the original aim of PIP, which is to support people to live full and independent lives. I have questioned her about the regulations in my role as chair of the all-party parliamentary group on mental health, and as a local Member of Parliament. For instance, we have discussed the case of a lady I met in Maidstone a few weeks ago who had been set on fire on a bus. That lady told me that she has been unable to go out of the house without being accompanied by somebody she trusts since then. Throughout the discussion about the regulations, she has been worried that the welfare system might not treat her the same as someone who has been unable to leave the house because of a physical disability. The Minister has assured me that that is not the case and that people are, and will continue to be, given payments based not on their diagnosis, but on their needs.
Will the Minister now clarify to us all that somebody suffering with severe psychological distress such as post-traumatic stress disorder, who needs to get out and about—for instance, to go to work or take their children to school—but finds it impossible to do so without significant assistance, could and would receive the enhanced rate mobility component of PIP, if their needs justified it?
Given the concern about the issue and the regulations, I also ask for the Minister’s reassurance on three counts regarding implementation. First, will she ensure that the guidance to PIP assessors is absolutely clear that people with mental health conditions can and should receive PIP awards based on their needs and costs, and that that may well be the enhanced level? Secondly, will she ensure, through the audit system that she has told me about, that this happens in practice? Thirdly, will she draw on the evidence provided by recordings of PIP assessments, the trialling of which I welcome, having pressed her and her predecessor, my hon. Friend the Member for North Swindon, who is sitting behind me, on recording PIP assessments?
I am just wrapping up.
Finally, I look forward to my hon. Friend the Minister assuring us all that the Government’s welfare system does, and will continue to, treat people the same, whether their needs arise from mental or physical conditions.
(8 years ago)
Commons ChamberVery many—I have spoken to a number of private sector employers who are leading the way in providing the equipment needed. But what happens in the public sector is to some extent more under the Government’s control, so I hope that by the end of this year every Whitehall Department will be signed up as a Disability Confident employer and that in the course of 2017 the rest of the public sector will have followed. The public sector is a very large-scale employer so that will be very helpful.
I broadly welcome the thrust of the Green Paper, but I suggest that there are two things the Secretary of State could do for people with mental health conditions now. One is to ensure that assessors undertaking work capability tests are properly qualified. Secondly, can we stop the small number of people with long-term, enduring mental health conditions, who are never going to work, going round this merry-go-round, which is not good for them or for the taxpayer?
I am grateful for the expertise the hon. Gentleman brings to this. I will take both his points on board. In fact, on his second point, he may have seen that I have already announced that we are going to stop retesting those with a condition that already means that they cannot work and that will only stay the same or get worse. That seems to me a piece of pointless and fundamentally heartless bureaucracy that we can happily get rid of.
(9 years, 8 months ago)
Commons ChamberMay I say what a privilege it is to follow the right hon. Member for Sutton and Cheam (Paul Burstow)? This debate is important and it sends a message that, again, this Chamber is discussing mental health. I have said, and I will say it time and again, that the more we talk about mental health, the better. Talking about mental health on the Floor of this main Chamber sends a clear message that this House—Members from all parts of it—is taking mental health seriously.
Clearly, work is central to most people’s lives. Mountains of research suggest that the right type of work is good and positive for somebody’s mental health. In this debate, I want to focus on three main areas. The first is mental illness and the benefit system—we cannot talk about unemployment without mentioning the benefit system. The second is how we manage long-term mental health problems in the community. Realistically, there are individuals who will not be able to work or hold down full-time jobs, so we need mechanisms by which we can support them in the community. The third area, which is related to unemployment, is how mental health is dealt with in the modern workplace in the UK.
Many people may ask: why is mental health in the workplace important? Well, to coin a phrase from Bill Clinton, “It’s the economy, stupid.” Bad mental health is bad for the UK economy. The UK report on mental health in the workplace, commissioned in February 2014, estimated that it cost the UK economy some £70 billion a year—4.5% of GDP. In the current economic climate, a reduction in that figure, which was drawn up using Department for Work and Pensions data and OECD and Eurostat labour market figures, would be welcomed by the Chancellor of the Exchequer. There is also another important issue here, which is that it is good for the individual. In a decent modern society, we should ensure that people’s mental health is not harmed by the work that they do. We must remember that it is not just the individual who is harmed, but the families as well.
The right hon. Member for Sutton and Cheam talked about the number of individuals who are on employment and support allowance, some 46% of whom have mental health problems. We have heard the rhetoric over the past few years about trying to be tough on welfare claimants and about getting people off benefits. No doubt we will hear more of that in the run-up to the general election. But I am not sure that such rhetoric helps the people with mental health problems who are claiming benefits.
The evidence is clear that the work capability test has been a complete disaster for people who have mental health conditions. It has also been a complete financial disaster for the Government. It does not work for the people it is supposed to support and it does not help the taxpayer.
My hon. Friend mentions the situation in the workplace with regard to mental health. I was very interested in what the right hon. Member for Sutton and Cheam (Paul Burstow) said about the Health and Safety Executive enlarging its role in this area. What does my hon. Friend think about that? Does he think that it could play a role?
I do, yes. There seems to be this feeling that business should be afraid of the Health and Safety Executive. I know from my previous life that it is good not just at dealing with stress but at driving up standards and productivity in the workplace. It ensures that the working environment is safe, so, yes, there is an opportunity there.
Like other Members, I have seen in my constituency the merry-go-round system of the work capability test. It goes a bit like this: a person is assessed by Atos, by people who have no mental health training whatever; he or she fails a fit-for-work test and is then put in a work-related group; he or she then appeals that decision and has their benefits reinstated. Then, ludicrously, within a matter of months, that person gets recalled to Atos, and they are on that merry-go-round again. That is not only bad for the individual but a complete waste of taxpayers’ money, as there is the cost not just of the assessments but of the appeals. The appeals system has been overloaded with people and has had to employ more staff, and that is not an efficient way of dealing with these individuals.
Charities in the north-east, such as Mental Health North East, have explained this expensive merry-go- round and have done very good reports on the numbers. Hundreds of people in the north-east of England are on the merry-go-round system, which has a tragic effect not only on the individuals but on their families. In some cases, it puts back people’s mental health rather than improving it. We should not shy away from the fact that there have been some cases nationally in which, because of the Atos system, people have taken their own lives. No Government should be proud of that.
People are under pressure, not just from the work capability test but from the economic downturn. Statistics came out last month that showed that the number of suicides now, at just over 6,000, is higher than it was two and three years ago. Surprisingly enough, the north-east of England is the region with the highest number of people—young men, mainly—committing suicide. I find it very uncomfortable that in 2015 we have a system that puts these pressures on individuals and that the major killer for men aged 20 to 34 is suicide. We need to address that, not just because it is the right thing to do but because of the economic case. That is 6,000 people who are not making a contribution to the economy of this country. We should also remember that 6,000 families will be hugely affected by the loss of a loved one. Each one is a personal tragedy and each one, like a ripple, has an effect on an entire community. It is important that we address the issue because we cannot have avoidable deaths going unchecked. Whatever happens after May, dealing with suicide and mental illness must be taken forward on a cross-party basis.
As for the Government’s response to the Atos merry-go-round, the right hon. Member for Sutton and Cheam (Paul Burstow) is right that after four years they have finally worked out that it is not an effective way of dealing with people with mental illness on benefits and have put in place pilot schemes that go broadly in the right direction. However, like the right hon. Gentleman, I want to ask the Minister what the time scale is for rolling them out across the country. I am also of the opinion that we need to take people who have mental health issues out of the system. I do not argue for one minute that they should not be assessed at all, but putting them through the Atos system is not the way to do it. If we can ensure that they get the individual help and care that they need, that will not only help them return to work or gain access to work but save the taxpayer a great deal of money.
My hon. Friend is making a powerful speech, but does he not agree that at the heart of this is the knowledge that we need sensitively trained and highly professional people to deal with these individuals, not an Atos-type untrained person? That is certainly the case in my constituency. We need highly trained people, whether they come from the health sector and are fully professional or whether, as in my constituency, they come from the voluntary and social sector.
I am pleased that my hon. Friend raised that, because I was coming next to the important role there is for the community and voluntary sector. We need to explore an alternative system. If we conclude that some people cannot work, we need to be able to offer them alternatives, and like the right hon. Member for Sutton and Cheam, I am a big believer in voluntary and charitable work. If people cannot hold down a permanent job—it may not necessarily be their fault; it may be that some employers do not understand that someone who has a severe long-term mental health problem will not be able to turn up to work every day—why not allow them to do voluntary work, which both improves their position and gives something back to society? Social isolation is one of the worst things possible for people with long-term mental health conditions. Enabling such individuals to make some contribution to society would also help them.
As my hon. Friend the Member for Huddersfield (Mr Sheerman) said, the charitable and voluntary sector has a key role to play, not only in getting people back to work but in the long-term management of people with long-term mental health conditions in the community. The Government talk a lot about the community and voluntary sector, and the Heath and Social Care Act 2012 contained a provision that I considered helpful—I was scorned by some of my colleagues for thinking this—which was that third sector bodies could be commissioned to deliver local services. In practice, that has not happened because the contracts that are being let are too big and too complex, and many third sector organisations that do fantastic work locally do not have the capacity to bid for them.
The present system is a scandal. The Just for Women Centre in Stanley, in my constituency, is a great organisation run by Linda Kirk, a former business woman, and Lestryne Tweedy. The centre caters for women who are suffering from domestic violence or mental health-related issues and those who have been on probation. The model is very simple: it uses counselling and crafts to support the individual and look at their underlying mental health issues before moving on to getting them into work. The centre uses individual tailored programmes, which can lead to individuals being with the centre for two years, but the success rate is fantastic and the cost is less than £800 per job placement. That contrasts starkly with the nearly £4,000 the Government pay companies such as Ingeus and others that get people into work.
The situation is even worse than that. Not only can small charities such as the Just for Women Centre not bid for the contract but, disgracefully, if women who come to the centre are also on Ingeus’s books and the centre gets those women into work, Ingeus rings them up and asks them whether they have got into work, they say yes, and Ingeus claims the money, but the Just for Women Centre—the charity—does not get a single penny of it. I hope the Minister will look into the details of this, because it is not just happening in County Durham. We need a method whereby small charities can access the contracts, because I think they would do the work a lot cheaper and more cost-effectively.
We also need a system for managing people long-term in the community. Another fantastic centre in Durham is the Waddington Street Centre, which through education, therapy and other activities, manages people in the community. I pay tribute to Steve Wakefield and his staff, and the chair, Professor Fred Robinson. Like the Just for Women Centre, the Waddington Street Centre cannot access any of these contracts and has to rely on charitable donations. We all know that the charitable sector is being cut, so we need some method whereby those organisations can get access.
Finally, I want to focus on mental health in the workplace, because it is a subject we do not talk about much. As I said, mental health issues cost this country some 4.5% of GDP; most Chancellors of the Exchequer would salivate over the savings to be made by reducing that by 1% or 2%. The question is why mental health in the workplace is not a higher priority for the Government and for UK plc. Part of the answer is the workplace culture—the belief in this country that by working every hour God sends, we will be more productive, and also the belief that any talk of mental health in the workplace is fluffy and vague.
However, some businesses, such as BT, have taken a board-level decision to address mental health issues in the workplace. I congratulate the Communication Workers Union on its work with BT management to put in place support mechanisms and awareness campaigns on mental health and the early warning signs of problems. The results of this approach speak for themselves. In BT’s case, the number of employees off work on sickness absence because of mental health problems has decreased by 30% over the past five years. Among those who have been off work more than six months for mental health reasons, there has been an astounding 80% return rate, compared with the national average of less than 20%.
The hon. Gentleman is making a powerful speech and the examples he gives from BT are very interesting. Is it not the case that we need to flip the way we think about mental health in the workplace? It is not a problem to be managed, but an opportunity to be taken. Many people on a mental health recovery journey can be some of the most creative and productive employees in an organisation, so we need to embed that approach into HR practice and drive productivity that way.
I agree. The focus should be on mental well-being, rather than mental illness, in the workplace. I spoke to the managing director of BT and asked why the company adopted the approach that I described and whether it was aiming to be a good corporate citizen. The answer was no. The firm does it for hard, brass-tacks reasons—it is good for business. It sees the fragility of poor mental health among its employees as a risk to its business model. I am sure that is the case in other types of business too. BT has recognised that and put the appropriate mechanisms in place. We need a system for that to be rolled out among other companies in the UK.
My hon. Friend is making an incredibly powerful speech. I thoroughly agree with what he says about mental health in the workplace. Will he pay tribute to the work of organisations such as Mind that are producing training packages for dealing with mental health issues in the workplace? As he says, those are a huge cost to organisations and to the individuals involved. Mental health issues are the No. 1 cause of absenteeism from the workplace, and systematic training is needed across all workplaces.
I am listening with great interest to what the hon. Gentleman says about bringing people with mental health difficulties back into employment. I hope he will acknowledge the work done by Disability Confident, a scheme supported and run by the DWP which recently ran a presentation in my constituency. A number of large employers were brought to the presentation and for the very first time challenged with the opportunities that exist, as opposed to defining mental health issues as a problem. Does the hon. Gentleman agree that there is great scope for such an initiative to be taken beyond the pilot stage across the whole country?
Indeed. The test is to make that a must for business. The next Government of whatever shade should make it compulsory. My hon. Friend the Member for Coventry South (Mr Cunningham) referred earlier to the Health and Safety Executive, which has a key role to play in that. Mental health issues should not be seen as a threat to businesses. The challenge is to help businesses of whatever size to perform better not only by being good to their individual employees, but by being more productive as part of the economy.
There is a huge challenge here. We must take this issue seriously. It should be seen not just as one of health. It must be tackled across Government. Whichever party is in Government after May, and especially if it is my party, I will be arguing strongly that we need a cross-Government initiative so that all Departments ask what is being done to promote good mental health, not only within the Department but in the development of vital policies. If we get this right, it makes economic common sense and can grow the UK economy. That is the dynamic that will make people sit up and think about making this a reality.
Does the hon. Gentleman agree that we need to tailor-make back-to-work programmes and recognise that on some occasions it might take longer to get people capable of working? We also need a system that allows people with long-term mental health issues who are not going to work at least to make some positive contribution to society.
The hon. Gentleman has hit the nail on the head—that is precisely it. The distribution of traits within mankind and the British population is like a bell curve. Every person is unique. There are very few identical twins. Certain mental health conditions require a longer period of adjustment before people are able to participate in the workplace or in voluntary activities that make a contribution to society. Any system must be flexible enough to recognise that difference.
On the feeling that one’s life is out of one’s control, let us imagine—I will create a caricature here—someone from a tough background with literacy difficulties, perhaps dyslexia, who has just gone through a divorce and is presented with forms up to 70 pages long when trying to get some form of support from the state. The idea that someone who is in a very difficult state can navigate this incredibly complex system is tantamount to mental cruelty. There have been cases in the press recently where parents of children with difficulties have had to deal with a stream of health workers, disability benefit support staff, jobcentre workers and council workers knocking on their door. That can create a huge amount of stress and a sense that life is beyond one’s control. We have to be mindful of that and ensure that public services fit people who are going through a mental health episode.
I want to say some positive things about mental health, unemployment and employment. Mental health challenges are part of the normal human condition. Probably one in four of us here will struggle with a mental health challenge at some point in our lifetime. I am sure that all MPs have seen people in their surgeries who present with a problem—for example, they are unemployed and are having difficulties finding work and navigating the benefits system—and realise that there is something more behind the initial problem. Sometimes it will be depression, bipolar or paranoia, and they will need further assistance and support.
If we are to have a society that is at ease with itself, the stigma of mental health conditions needs to disappear. It is part of our job—not just in this debate, but in our daily lives—to ensure that we are relaxed about talking about mental health conditions, no matter what they are. In many cases, I welcome the idea that people joke about mental health conditions. I do not mean that people should do so in a derogatory way, but that jokes are part of our normal discourse. Whether in Parliament, in Westminster or in a business, people stand by a coffee machine and talk about so and so breaking a leg when they were skiing. Everyone has a laugh about it, asks the person how they are and then writes their name on the cast. I do not want mental health challenges to be part of a sort of corridor whisper. We should be able to laugh and talk—“so and so is having a bit of trouble at the moment”—and be very relaxed about them, because they are part of our human condition.
Another positive thing about people with mental health challenges in the workplace is this: yes, British Telecom has recognised the benefits of employing people who may have challenges, but a raft of smaller firms have also recognised those benefits. In my working career in the world of business in the 20 years before I entered politics—I suppose this is work as well—I came across many enlightened small businesses that, on many occasions, competed for people with mental challenges such as depression or bipolar. I will try to put this subtly. When somebody is struggling with bipolar and is in a good period, they can be exceptionally creative and productive. That is very useful, provided one recognises that when they are in a down period they need flexibility and understanding. A lot of small businesses would benefit from recruiting people with certain mental health challenges for particular roles in their organisation.
It is my experience, from having observed businesses over the years, that those that recognise these challenges and show flexibility actually perform exceptionally well. So even being less altruistic, this is a great opportunity to create work forces that are up to the mark, dedicated and loyal and which go the extra mile in the good times, because people with mental health challenges are a great resource on which to draw. As others have said, however, it would be helpful to have guidelines or suggestions, perhaps from the public sector but certainly from bodies such as Mind and others, on how to work with people with mental health challenges, particularly for small businesses.
I hope that Opposition Members will bear with me for a moment, because I want to touch on the coalition’s welfare changes, many of which were initiated under the previous Labour Government. In many respects, we should take our hats off to the direction of travel. One of the greatest pressures is to be young and unemployed and to feel unwanted, as it can exacerbate the feeling of isolation from society. However, although the welfare changes that the coalition has made or is seeking to make might not be perfect, they do represent the correct direction of travel. I know that many Opposition Members agree. If we can help somebody into work—not in a brutal way—we can give them that sense of meaning, control and well-being that comes from knowing that even if they have a mental health challenge they are still welcome in the work force. These are positive things that MPs can do to enfranchise the large minority that struggles from time to time.
I do not disagree with the hon. Gentleman—if it is the right type of help. However, as the hon. Member for Strangford (Jim Shannon) and I mentioned, for someone suffering from a long-term mental health condition, this merry-go-round system we have is pretty brutish and needs refining. Otherwise, it will not only waste taxpayers’ money but create a lot of unhappiness and fear among people with long-term mental health issues.
I think we agree. Indeed, I was about to focus on how we could significantly improve the way the system works for people with mental health challenges. First, on public services, particularly welfare-to-work arrangements, we need to be very finely attuned to the processes undertaken. Somebody with a mental health challenge might initially appear to be absolutely fine, but if they are put through a very mechanistic—the hon. Gentleman said “brutish”—process that makes no allowances for such challenges, it can do more harm than good.
I do not disagree, but one of the fundamental flaws that I and others have been raising for several years is that Atos assessors are not mental health trained. Having assessors with expertise in mental health would be a huge step forward in helping those individuals, yet the Government have ignored the matter for the last few years.
I am not sure the Government have ignored it. I have been in meetings where it has been carefully discussed, so it is certainly on the agenda. I agree with the hon. Gentleman’s general point, however, and I am sure we will get to it on the other side of the upcoming election. Thus far, the focus has been on shaping the overall system in the right way, but unquestionably it will need refinement to ensure that in the first level of interaction the system quickly identifies people who might require a greater focus on their mental health and well-being than the average person.
I can give the hon. Gentleman the commitment that once we are through this short period before the election, and if we are both fortunate enough to be here afterwards, I will be happy to work with him and others in the Chamber to ensure that mental health conditions are better recognised or integrated within the process. We had a huge mountain to climb just to change the system in the first instance, but greater sensitivity is certainly needed now.
Four or five years ago, in Windsor, I knocked on the door of a very elderly lady. She had found in her letter box a form connected with a consultation on whether a local development should proceed. She was clearly struggling with a mental health condition at the time, and was agonising over whether she should fill in the massive form. There was another form from the council, and another relating to planning. I almost did not have the heart, but just about had the heart, to say to her, “The form is merely about a consultation, and, given the hundreds of forms that will be sent back, what you write on this one may have only a very small impact on the outcome. You might be better off seeing your family, having relatives to visit, and actually enjoying your life.”
What I gleaned from that encounter was that having to deal with lengthy forms and deeply bureaucratic processes may—unnecessarily, in many cases—take away the quality of people’s lives, particularly when those people are unemployed. That, I believe, should be a secondary focus for us, and for any future Government. We should think about the way in which we ask people to participate in our bureaucratic procedures to obtain assistance and return to work. We should ask ourselves whether the length of forms is a problem, and whether matters could be dealt with a little more quickly on the telephone or face to face, given that that some people might be struggling with a challenge at the time.
I know that we are having a quiet afternoon in the Chamber today, but I think that we have a responsibility to continue to talk about this issue—not only in debates such as this, but in the context of every brief that we may hold, every Committee in which we may participate, and every Bill that we may examine. We must keep at the forefront of our minds the fact that a very large proportion of the British population are struggling with mental health challenges. Every policy that we create must be designed to reflect that, and to accommodate such people.
Here is one more idea that may be of use at some point in the future. I love the idea of the market. I love the idea of businesses competing to hire employees, and I love the idea that competing small businesses—as well as one or two larger ones—that are desperate to hire staff at a time of low unemployment will one day place an imprimatur on their websites and recruitment pages, declaring that theirs is a mental health-friendly working environment. Indeed, it would be curious if they did not do so. I believe that if small and medium-sized businesses—indeed, all businesses—do not take that route, they will be hamstringing themselves and preventing themselves from taking advantage of the best employees that they can recruit from the marketplace.
This is my vision for politics. I want to see a country that is at ease with itself, and with people from different backgrounds and different walks of life. A country that is at ease with itself must acknowledge that, at any one time, a large minority of its population will face mental health challenges, but that those people are equally part of society. The policies that we create in this place must be user-friendly, and take account of people from all sorts of backgrounds and with all sorts of conditions.
I am optimistic about the future. Why? Because there is no doubt that Labour, Liberal Democrat, Independent and Conservative Members all recognise that the issue of mental health represents a serious challenge for a large proportion of the population, and I am confident that any future Government will pay more attention to it than we have in the past.
I thank all Members who have contributed to what I think has been a very interesting and rich debate. I especially thank the right hon. Member for Sutton and Cheam (Paul Burstow) for introducing, in a wide-ranging speech, all the issues on which others have expanded.
There is clearly widespread concern about the poor employment outcomes and poor employment experience of people with mental health disorders. Those concerns are wide-ranging. There is obviously a concern about the poor employment rate among people with mental health problems and the fact that unemployment is both a cause and a result of poor mental health. Particular concerns were rightly highlighted by the hon. Member for Strangford (Jim Shannon) about the implications for young people who experience unemployment at the very start of their adult lives. There are also concerns about people with mental health illnesses being dismissed or exiting work prematurely, about a lack of not just joining the workplace but progression in the workplace—relatively reduced chances for promotion—about lack of support in the workplace for people with mental health problems and, as was highlighted in the debate this afternoon, about so-called presenteeism, which is damaging for both the health and well-being of the individual and business productivity.
Such concerns about the cost both to the individual and society have been highlighted a number of times this afternoon. Poorer mental health outcomes are suffered by poorer people, who are less likely to be in employment. We also know that 39% of sickness absence is as a result of mental health problems, amounting to 11.3 million working days lost to our economy each year.
We have also heard concerns about the wider context in which mental health problems in the workplace arise and are then addressed. There are problems with people accessing therapies and treatments to deal early with mental health difficulties, and we have rightly heard quite a bit about stigma and discrimination and what can be done to tackle that.
I welcome the comments from the hon. Member for Broxbourne (Mr Walker) about the importance of dealing with mental health difficulties among children and young people and intervening early to address them. Many mental health problems begin in childhood—before the age of 18—yet we know that only 6% of spending on therapeutic mental health services is through child and adolescent mental health services, so there is clearly a massive imbalance in the way in which we are spending our resources to address the problems in the pre-adult years, as compared with picking up the pieces afterwards when so much damage has been done.
Concerns were also expressed about the extent to which programmes that should be helping are not doing so. We heard quite a lot about difficulties with the benefits system and problems with some of the work support programmes, which mean we cannot be complacent about an employment rate of 37% among people with mental health problems against an overall employment rate of 77%.
As we heard, in most cases being in work is beneficial for mental health, although in her 2013 report for the Government on mental health and work Dame Carol Black rightly set out a number of caveats to that, including the quality of the job and the degree of autonomy or control that is enjoyed by an employee. However, we also know that people who are not working because of a mental health problem represent the largest proportion of those who would like to be in employment. The reasons why they are not working are partly to do with lack of access to the therapies and care that would make work possible.
We have heard on many occasions of significant delays in accessing so-called talking therapies, and we must be concerned that one driver of the rise in the number of people being placed on the support group of employment and support allowance because of mental health problems may be that people cannot get access to the health care they need.
We must also pay attention to the particular anxiety identified by the independent reviewer, Dr Paul Litchfield, about the very large number of young people in the support group or the work-related activity group of ESA who have mental health difficulties. The fact that we are parking some of those young people on to a benefit without properly intervening early, and the fact that the way in which the system operates exacerbates and encourages a disregard of early intervention, is something I know the Minister expressed his own concerns about in his appearance before the Select Committee recently.
Repeated reports have recommended the much more effective joining up of employment support and mental health services. I very much welcome the introduction of specific indicators for mental health and employment in the NHS outcomes framework, but we also know that there are long delays in accessing therapies and that doctors can be reluctant to identify a mental health problem or sometimes fail to recognise that a patient could work or that work would be beneficial for that individual. The introduction of the fit note offers doctors the opportunity to provide more useful fitness advice to patients with mental health conditions, but there remains a significant challenge to ensure that health care service professionals support rather than work against the grain of increasing and sustaining employment.
We also know that stigma and employers’ fear play an important part in the poor employment outcomes of those with mental health disorders. Half of employers say that they would not employ someone with a mental health condition, although I strongly suspect that a large majority of them in fact already do so. Too often, sickness absence as a result of a mental health problem leads to dismissal under capability procedures or to early exit or early retirement. The introduction of fees for employment tribunals under this Government makes it harder for an individual who has been forced out of work to gain redress, which I guess could make it more likely that employers will put people under pressure to leave a job.
As has been said, we need the workplace environment to be much more effective in supporting people with mental health disorders. A few days ago, I met representatives from my own union, the Union of Shop, Distributive and Allied Workers, and they highlighted some of the difficulties that their members were facing at work. They talked about the stressors that people face at work, including unrealistic performance targets, zero-hours contracts and the insecurity associated with them, low pay and the difficulty of balancing family and working life.
Those problems are not confined to one particular industry sector. Workers in the public sector—teachers, probation officers, police officers and people in the armed forces, for example—also experience high levels of pressure and stress. We should also note that those pressures cut across all levels of jobs, from the most senior to those in basic and entry-level jobs. In fact, stress is particularly high among lower-paid workers who do not enjoy autonomy and control over how their working day is spent, or who feel that they have low status at work. Stress levels among low-paid and more junior workers can be particularly high.
There are lots of opportunities for us to intervene to improve workplace support. We have heard some helpful and imaginative suggestions and examples this afternoon. I hope that the Minister will comment on the role of the Health and Safety Executive in relation to this agenda. There is a real opportunity for managers to work with trade union workplace representatives to address some of the issues. There is also an important role for the public sector, as an exemplar employer, to adopt appropriate strategies to support staff as well as proactively recruiting those with a history of mental ill health, as was rightly suggested by the hon. Member for Windsor (Adam Afriyie).
Sir Stephen O’Brien, who is chair of the Barts Health NHS Trust, was recently commissioned by the Leader of the Opposition to advise my party on a mentally healthy society. He has suggested that accreditation schemes could do more. In addition, we need to pay attention to manager training and to providing information in the workplace to enable people to self-refer to mental health services, as well as to the positive use of the fit for work scheme, which is something the USDAW representatives told me that people were quite fearful of. The scheme could be helpful in supporting people to get back into work quickly, and I hope that employer bodies will take positive steps to engage with and reassure their workers about the way in which they are using the new scheme.
The Government also have an important role in supporting into employment those who are out of work as a result of a mental health problem. Despite the raft of initiatives and pilots described in the Government’s disability and employment strategy, the number of people being placed in the employment and support allowance support group is rising, and labour market programmes that ought to be getting more people back into work are continuing to let them down. The Work programme has been a failure for those with a mental health condition, as the right hon. Member for Sutton and Cheam pointed out, getting just 6.7% of them back into work. The black-box approach and the national contracting regime have shut out specialist provision, as we heard from my hon. Friend the Member for North Durham (Mr Jones) and others. We have also seen a 20% reduction in the number of specialist disability employment advisers in jobcentres. As the Minister acknowledged in a written ministerial statement on 18 December, the Access to Work programme last year suffered from significant delivery problems, which will have inhibited access to some of the support that could have been provided through the mental health component of the programme. That could have enabled more people, more quickly, to have functioned better at work.
There is a problem with the Work programme’s absence of a specialist programme for people who have been placed on ESA for mental health and indeed other chronic health conditions and disabilities, which means they are not getting the tailor-made support they need. That is why Labour has said that we would introduce a specialist programme of work support for those who have been on ESA for more than three months, which would mean that by commissioning that support locally, we will be able to make much better use of the kind of specialist organisations mentioned by my hon. Friend the Member for North Durham that have expertise in mental health and employment, and will be able to offer appropriate support.
I agree with the comments made about the opportunity presented by the individual placement and support programmes run from a number of NHS trusts. I had the privilege of visiting the IPS team in south Manchester a few months ago, where I heard about the successes it achieves, both in placing people into, and sustaining them in, work, and in reducing the incidence of hospitalisation. We know, including from an international study—the equalise study—that such interventions can be cost-effective compared with other vocational support for some people, yet too often people are being referred to this kind of support too late. I will be interested to hear the Minister update us on the Government’s thinking on IPS and what the current learning is. I would also be interested if he commented on what I was told in south Manchester, which was that the NHS is funding these IPS programmes but if Work programme providers have referred or introduced someone to that IPS service, the Work programme provider claims the outcome payment. It seems mad that the Department for Work and Pensions is paying a Work programme provider when all the work is being done and all the cost is being borne in the NHS. I hope the Minister might be able to say something about that.
That is exactly what is happening to the charity I mentioned in my contribution. It is doing all the work and the Work programme provider is doing nothing for individuals, apart from making a phone call at the end to ascertain whether that person has actually got a job and then claiming the money from the Government.
That is absolutely not how those contracts should be working. If subcontracting to specialist organisations is taking place from the Work programme, the organisations to which those subcontracts are being let should be properly rewarded. We face a number of problems in this area. First, a lot of local organisations do not have the opportunity or the wherewithal to participate in these programmes at all. As my hon. Friend says, those that can or try to participate find that the programmes are utterly economically unviable for them because they are not paid for the work they do.
Finally, I wish to pick up on the discussion introduced by a number of colleagues about the operation of the benefits system, and how that bears on those with mental health conditions and their chances for employment. The hon. Member for Windsor was absolutely right to talk about the complexity and forbidding nature of some of the system. I hope the Minister is not going to tell me that universal credit is going to resolve all that, because I do not think it will. In particular, as the hon. Gentleman rightly said, the gateway into the system is as much a part of the problem as the way in which the benefits system is designed. Although it is right that moving people into employment is in many cases going to be good for their mental health, moving them into poorly paid jobs which leave them still struggling to make ends meet will not make them feel that their well-being is being holistically addressed. Poorly paid, poor-quality jobs are, in the long run, just not going to be consistent with good mental health. I also say to the Minister—and he will know this—that there has been a massive upsurge in sanctioning benefit claimants under this Government, which must mean that a number of those who are being caught are those with mental health problems.
Of course there must be conditions for benefits and sanctions for wilful non-compliance, but inappropriate sanctioning causes not only financial hardship for many but huge anxiety and stress. Despite repeated protestations from Ministers that there are no targets for sanctions in Jobcentre Plus, we hear again and again anecdotal reports that such targets—at least at managerial level—do exist. It is also true that the new regime is now much more punitive. Sanctions bite harder and last longer and a culture has grown up in which claimants are being sanctioned inappropriately.
Just a couple of weeks ago, I was told of a case in the west midlands of a Work programme participant who was unable, because of his mental health condition, to discuss his situation in a public forum, as was required by his provider. The resulting anxiety left him unable to engage at all with the Work programme and he was sanctioned for 14 days.
It would be useful to know what analysis Ministers are undertaking of the people affected by sanctions who have a mental health condition. It is really quite shocking that we have so little information on their fate when a sanction has been imposed. I want to be clear that, under a Labour Government, there will be no targets for sanctions, that we will insist that assessors and decision makers at every stage of the process from the work capability assessment to the imposition of conditions to decisions about sanctions properly take account of the mental health of the claimant, and that expert advice will be available to ensure that relevant information is considered, with penalties on assessors for poor advice.
May I also highlight the concerns that arise from the recent regulations to allow data-sharing in relation to universal credit recipients with a range of other service providers, including housing associations, credit unions and debt advice agencies? Constituents have said that they are concerned that this could lead to data-sharing about their mental health, which they have not authorised and do not want to happen. The Minister must be clear about what protections will exist when the new regulations take effect.
In conclusion, I am glad that we have had this debate this afternoon and that we have shared our aspirations for the best employment chances and rights at work for those who suffer mental illness. As we all know, warm words will not be enough. There must be a rigorous focus on access, support and measurable outcomes. One in four of us will suffer mental illness at some point in our lifetime. We cannot afford the waste of potential when, so often, worklessness is the result.
I am grateful, Madam Deputy Speaker, that you were also able to join in the congratulations to my hon. Friend and embarrass him still further.
It has been a very good debate. It is an important matter for our constituents because mental health conditions are very common, with one in six people being affected at some time in their life. That statistic has been mentioned a few times, including by my hon. Friend the Member for Windsor (Adam Afriyie) who put on record his contribution on the subject early in his parliamentary career. All Members made the clear link between mental health—whether good or bad—and someone’s employment position. Many Members also highlighted the fact that labour market outcomes are poorer for people with mental health conditions than for the population as a whole and those with health conditions in general. As my right hon. Friend the Member for Sutton and Cheam and others said, the vast majority of people with mental health conditions want to work.
I listened carefully to the statistics that my right hon. Friend quoted about people with severe mental health problems. In the spirit of trying to cheer him up a little, noting that he referred to some positive data from the Time to Change campaign about the changing views of employers on mental health, let me reassure him that although I am not in any way complacent, as the gap between those with a mental health problem working and those generally working is significant and far too wide, there was at least some improvement between the last quarter of 2013 and the last quarter of 2014, when the employment rate for those with a variety of common mental illnesses went up by 2.6%, with a further 70,000 people in employment. That is obviously positive and a step in the right direction. I will not overclaim for it, as it is just a step, but perhaps it shows that the good work of the organisations involved with the Time to Change campaign means that employers are open both to keeping people who develop a mental health problem in work and to employing people with mental health problems. We might be seeing the start of improvement in those employment figures, but I do not want to claim more than that.
We are doing a lot, but clearly there is also more to do. I want to pick up on a couple of points mentioned by the shadow Minister, the hon. Member for Stretford and Urmston (Kate Green). I absolutely agree with her comment early on in her remarks referring to employers who say that they would not employ someone with a mental health problem. She was absolutely right that if they employ a reasonable number of employees they almost certainly do, although they might not know that they do. Perhaps the employee does not know that they have a mental health problem either.
The statistics suggest that anyone who employs more than six people is likely to have at least one member of staff with a mental health problem. Perhaps they ought to look around their workplace, think about the people they employ who have a mental health problem and think about how well they support that person, not out of any sense of altruism, although it is of course the right thing to do, but, as the hon. Member for North Durham said, because it is the right thing to do for the business. The person will be more productive, will stay working for that business for longer and will be beneficial. That was a point well made.
Looking at the cast of characters in the Chamber, I recall clearly that three years ago my hon. Friend the Member for Broxbourne, the hon. Member for North Durham and my right hon. Friend the Member for Sutton and Cheam, who was then the Health Minister, participated in a debate in which my hon. Friend and the hon. Gentleman spoke about their own personal experiences. They were both nervous during the debate about how their comments would be taken outside this place. I followed it quite closely, and it was heartening to see that their remarks were taken positively, not just by the organisations that one would expect—those that are familiar with these issues—but more widely and, interestingly, among members of the public. They kicked off an interesting process and since then a number of other right hon. and hon. Members have talked about their own experiences both inside and outside the House. It is right that more Members are encouraged to do that.
The hon. Member for North Durham put it very well when he said that the more we talk about these issues, the more we are open about them, the more the House debates about them and the more we talk about mental health issues in the same matter- of-fact way—I mean that in the most positive sense—as we do about physical health issues, without making a huge drama about them, the more employees and employers will be encouraged to have those sensible conversations in the workplace.
Members spoke about a number of support mechanisms. My hon. Friend the Member for Halesowen and Rowley Regis (James Morris) mentioned the improving access to psychological therapies programme and the shadow Minister referred to the various talking therapies that are available. Those programmes have a proven record of delivering and were started by the Labour party when it was in government. They have been continued by us and expanded. By next month, they will have been expanded so that 15% of people who could benefit will have access, covering about 900,000 people a year. Next year, we will introduce for the first time access standards and waiting time standards in mental health services, and an £80 million investment will ensure that 75% of people will receive the IAPT treatment within six weeks, and more than 50% of people who are experiencing their first episode of psychosis will receive a treatment within two weeks. There is more to do, but I think that that is significant progress.
The hon. Member for North Durham talked about the work capability assessment and the performance of Atos in delivering that. With just a teeny bit of partisanship, I will remind him that it was his party’s Government who introduced the work capability assessment and appointed Atos as the contractor. We inherited that arrangement and spent quite a long time putting it right. I detected in what he said that he is not the biggest fan of Atos, so he will be pleased to know that it is exiting the contract to deliver that service in Great Britain. In fact, Maximus takes over next week, and ahead of that, in the next few days, Members will receive a communication from that company. The hon. Gentleman will be pleased to learn that one of the areas that Maximus takes very seriously and has itself highlighted, and where it is keen to improve WCA performance, is mental health. I hope that he will engage with Maximus, using his local expertise and his personal experience, to help to improve that performance.
I am glad to see the back of Atos, but the fact is that for the past God knows how many years, the key issue raised has been the people doing the assessments. I have no problem with people with mental illness going through an assessment, but people with no mental health experience whatsoever have been responsible for concluding whether those individuals are fit for work. I just hope that the new provider employs people with mental health backgrounds to do those assessments, because that would be a huge step forward. It would be better for the Government and, more important, better for the individuals affected.
The hon. Gentleman makes a perfectly good point. One of the things that Maximus plans to do is to increase the number of people it employs who are mental health specialists. I think it was the hon. Member for Huddersfield (Mr Sheerman), who is no longer in his place, who said that the people who undertake work capability assessments are not qualified, but that of course is not correct: they are all properly accredited health care professionals, although it is true that not all are mental health care professionals. Among other things, Maximus proposes to increase the number of mental health specialists it has, as well as the number of health care professionals with knowledge of specific health conditions, including but not only mental health conditions; and to ensure that it has across its organisation mental function champions to discuss mental health cases with other health care professionals, to bring that expertise to bear.
That is a welcome move, but may I make a little suggestion? If Maximus is going to employ people with mental health backgrounds to conduct assessments, will the Minister ensure that anyone going for an assessment who has a clear mental health condition—it is why they are on employment and support allowance, for example—is assessed only by someone who has that expertise? That will save a lot of time and money for Government and will help the individual.
It may not be that clear. Often, people going for an assessment do not have just a single health condition. It is important to remember that the assessment is not a medical diagnosis; it is about the impact of somebody’s health condition or disability on their ability to work. The assessor is not carrying out a diagnosis of a mental health problem; the assessment is about the impact of the condition on an individual’s ability to work.
The hon. Gentleman should look at the communication he gets from Maximus. I am sure that the company will be delighted—I mean that genuinely—to hear from him about his constituents’ experience, because it is genuinely committed to improving the performance of the work capability assessment. Of course, Maximus has experience in delivering health care assessments through other contracts around the world. The signs are positive for how the company will engage with the contract.
I do not have a specific answer that I can give the hon. Gentleman immediately, but I will take that point away and look at it further. I listened carefully when he was setting it out for the House and there were some positive aspects to that approach.
About a third of NHS mental health trusts in England are using individual placement and support. The Department of Health is grant funding the Centre for Mental Health to extend IPS further, and my Department and the Department of Health are working with the Centre for Mental Health to try IPS with schizophrenia. From his expression, my right hon. Friend the Member for Sutton and Cheam appears to be familiar with that programme. One of the aims is to encourage at a local level my Department and Jobcentre Plus to work closely with the health service, and there are examples of such close working.
The fit for work service was referred to by several Members, including my hon. Friend the Member for Broxbourne, who said that the longer people were out of work, the less chance there was of return. The fit for work service, to which the shadow Minister also referred, which is obviously at a relatively early stage, is about helping employers and employees manage the sickness absence programme.
I was tempted to advertise another service that we offer earlier, but I resisted. When my right hon. Friend the Member for Sutton and Cheam opened his speech with the story of Anne-Marie, I thought that it was a good example of where she and her employer would have benefited from the mental health support service, which is part of Access to Work, which is clearly not as well known as it ought to be. As he said, it has a job retention rate of around 92%. It assesses an individual’s need to identify strategies that they can use to cope with their mental health problem, looks at a personalised support plan, either for returning to or remaining in work, and gives employers advice. That is important, particularly for small employers that do not have the capacity to have occupational health support in place.
As it happens, tomorrow I will be speaking at a disability confident mental health focus event, which is being supported by Mind, Remploy and the Business Disability Forum, and hosted by Royal Mail, specifically to raise awareness about the mental health support service. A significant number of employers are coming, and I have named several employers, including Royal Mail, who are committed to this.
Leadership has been referred to, and I attended an event with a KPMG senior partner—I hope it is in order to mention the company given that I used to work for it, although it was a long time ago—who has been open about his own mental health problem. It was heartening that he referred to the fact that the senior management of that organisation had created an environment in the business where, as a senior member of the management team, he felt comfortable with being open about his mental health problem. I know from talking to other members of staff that the fact that he has been able to do that and has been well supported by that employer has had a powerful effect on encouraging others in that environment to be open about their mental health problems. So there are other employers who recognise that. The right hon. Member for Hazel Grove (Sir Andrew Stunell) is not in his place, but he referred to a Disability Confident event that he has run. My right hon. Friend the Member for Sutton and Cheam is also interested in this area, and I hosted a Disability Confident event in my own constituency a couple of weeks ago. I have written to all right hon. and hon. Members to encourage them to do the same in their constituencies, partly to engage with those small and medium-sized employers that might otherwise be unfamiliar with the campaign.
My right hon. Friend the Member for Sutton and Cheam wrote an article for PoliticsHome today entitled, “I don’t like Mondays—how work can affect mental health”. My only criticism of the piece is that he urged UK plc to take action. I know what he meant, but it is worth remembering that we are also talking about UK Ltd, because half the work force is employed by small and medium-sized enterprises, and they do not always have the human resources support or access to services that larger businesses have.
My hon. Friend the Member for Broxbourne referred to BT. The head of occupational health and well-being there, Dr Paul Litchfield, has produced two independent reports for the Government. I waited until he had concluded that work, and therefore had only one hat on, before visiting BT, where I had a very positive experience. The hon. Member for North Durham spoke very positively about its programme. He is right that BT puts a lot of effort into supporting employees with mental health problems, and not only because it is the right thing to do, but because it is absolutely in its business interest. It has a very high staff retention rate. It keeps almost everybody who develops a mental health problem at work, and the vast majority in their existing roles, although sometimes they have to change role. I heard four individuals give powerful testimonials about the support they had received from the company. I thought that it was incredibly positive that they felt so open in discussing some quite difficult issues they had had in front of their management chain. They clearly work in a very positive environment.
I will mention universal credit before drawing my remarks to a conclusion, because the hon. Member for Stretford and Urmston would think it remiss of me not to do so. I do not pretend that universal credit solves every problem on the planet, but I think that there are two areas where it is very positive for mental health. The first is the way that it has been set up, because it is about getting work coaches to engage with people earlier, looking at what support they need. If someone falls out of work and approaches the jobcentre—I think this is the thrust of the point made by the hon. Member for North Durham—we want the support to be delivered earlier in the process, rather than later. Universal credit has been set up in such a way that it is about having that conversation, looking at what someone can do and delivering support earlier, which I think will help. It is not the only solution, but I think that it will make things better.
I agree with the Minister, but will he also address the point I made about companies being paid by the Government to support individuals into work, even though that work is actually being done by the voluntary and community sector? If those companies are claiming to have helped those people and are getting paid for it, even though the work was actually done by the voluntary and community sector, that is a very serious issue.
The hon. Gentleman anticipates my remarks, because I had not yet got to that point. There are two points that arise from what he said, and he was supported in that by the shadow Minister. The first relates to the ability of smaller private sector companies and the voluntary sector to be subcontractors to prime providers, and we will consider how to make that easier as we look to develop what follows the Work programme. The second point—the central one—is about ensuring that Work programme providers are paid only when they have done the work. He raised a specific concern about a third sector organisation in his constituency. If he can give me a little more detail, I will look into it. If a Work programme provider has done nothing at all, it should not pretend that it has done so in order to claim a payment. Either it should not be paid, or it should effectively be subcontracting with the smaller provider. If the smaller provider is very successful, clearly we would want it in the programme, working with the prime provider. If he gives me some more details, I will absolutely task officials with looking into it. It is not very sensible for the taxpayer to be paying someone for work they have not done. Moreover, we should be making sure that the money goes to support those who are successful at getting people back into work so that they can improve their organisations and become more successful and sustainable.