Employment and Support Allowance

Lord Pickles Excerpts

Thursday 18th October 2018 Lords Chamber

[Baroness Buscombe]

It is right to explain—indeed I did explain this in July—that the reality is that a mistake was made that should never have been made. No mistakes are acceptable when it comes to people who genuinely need this important support. What we did back in 2013 was respond to individual cases. Clearly, the department was not aware that there was a much bigger problem. We worked to legal advice at the time, and we took the view that the law prevented us from paying arrears beyond the date of the LH judgment in October 2014. An Upper Tribunal in Scotland endorsed that approach. The department is, however, now in a position to extend the payments back to the date of the original conversion from incapacity benefit to ESA. The department expects to pay back around £970 million in arrears between now and 2020.

[Lord Pickles (Con)]

My Lords, the Minister has been quite contrite about what has happened, and I think the whole House will welcome that. Can we briefly return to the question of passported benefits? I understand how difficult this is, but the regulations on passporting have become better known since they originally came in. Will my noble friend look again at that and make it more of an automatic process rather than relying on the good offices of other government departments? But I have to say that I am extremely impressed by the way in which the Minister and her department have approached this.

[Baroness Buscombe]

I thank my noble friend for his question. I agree that it is not sufficient for the medium and long term just to say that we are talking to other departments. We are looking to see how, when we move to universal credit, we can ensure through managed migration that nobody loses out and that, where possible, all the benefits that can be passported are passported. However, we have to accept that we are dealing with a really complex system and with millions of people. It is right to put this in the context of ESA: we are dealing with 2.3 million working-age people and, up to now, we have spent £54 billion on benefits for these people with disability and health conditions. That is over 6% of all government spending. We have to do this in a way that is sensible and practical and as careful as possible. That is why we are also now employing 400 people in addition to the 400 we have already in order to sort out this particular mistake.