Social Security and Employment Support for Disabled People

Mark Harper Excerpts

Wednesday 6th March 2019 Commons Chamber

[Sarah Newton]

I really would have hoped that, today of all days, the hon. Lady could have found it in her heart to welcome the changes that have been asked for by so many people inside and outside this Chamber, and to recognise the great work that has been done by disabled people, and those who work with them, to engage with us so constructively and enable us to move forward and tackle the issues that she is describing.

The hon. Lady is right to say that we said yesterday that we were going to be more ambitious in enabling more disabled people into work, because we have made such good progress. Since 2013, over 930,000 more disabled people are now in work. Over that time, the disability employment rate has increased from 7.4% to 51.5%, and the gap between the disabled employment rate and the overall employment rate has been reduced to 30.2%. I do not want to see any disabled person out of work when they would like to be in work, but we have made progress and that is why we have committed to reviewing our targets and to being more ambitious. Access to Work is a great scheme, as we all agree, and it supported record numbers of people last year, including more people with mental health conditions and more young people with learning disabilities. The Access to Work fund is demand-led, and it grows every year because every year we are seeing more disabled people into work, and that is what we want to do.

Returning to the hon. Lady’s questions about the contracts, it is really important to me that, while we are going through such a fundamental transformation of our assessment process, we have safe and stable delivery for people who are applying for benefits. That is why we have extended the contracts to 2021, to align with the PIP contracts. We have not just accepted the existing situation, as the hon. Lady knows, and I am grateful for the work undertaken by the Select Committee on this. We have been pushing for continuous improvement within those contracts. The new contracts have higher standards for service delivery, and I would be happy to put a letter in the Library so that people can see the terms of the new contracts and see that they are driving forward improvement. We all want to see the right decisions being made at the first opportunity. We do not want to see people having to go through mandatory reconsideration and then on to appeals in the courts, and we have a whole series of reforms to ensure that that does not happen.

[Mr Mark Harper (Forest of Dean) (Con)]

I welcome what was in the written statement yesterday and what the Minister has reiterated about the more ambitious target to get more disabled people into work. As an aside, I also welcome what the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) said earlier. As a former Minister for disabled people, I am particularly attracted to the more ambitious target that we had in our 2015 manifesto. Indeed, I may have had a hand in writing it myself. On the substantive question, if we are going to get more disabled people into work, we need to ensure that the social care system—over half of whose budget is spent on working-age adults, not on older people—works better with our social security system and with the other means that we have of helping disabled people to become more independent. I urge the Minister to publish the social care Green Paper as soon as possible, and to start that much-needed debate so that we can deliver those policy changes that many disabled people across the country are crying out for and give them the opportunity to live more independent and fulfilling lives.

[Sarah Newton]

I very much thank my right hon. Friend for his contribution in the Chamber today and for all the work that he did when he had the privilege of holding this office. He is absolutely right to say that we want to be more ambitious. We will be looking carefully at how we can set ourselves really ambitious goals to ensure that everybody in our country has the opportunity to fulfil their potential in work, and that business, civil society and the public sector can draw on the talents of the very many disabled people who are unemployed at the moment. He is also right to talk about the importance of adult social care. It is of course the Department of Health and Social Care that leads on this, but I work closely with it and I have been encouraging it to go ahead and publish that very important Green Paper so that we can take forward those urgent reforms and enable more people to live independent lives.

Universal Credit

Mark Harper Excerpts

Wednesday 17th October 2018 Commons Chamber

[Mr Mark Harper (Forest of Dean) (Con)]

I want to start my remarks by noting the presence of my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), whose decision to drive through this policy was very far-sighted. He was motivated by a desire to make the benefit system fundamentally focus on enabling people to get into work and to make sure that work pays. I think that is incredibly important, and I will say more about that later in my remarks.

I suspect that many of the Members who will speak in the debate will compare the situation under universal credit with some mythical universe of perfection where there are no problems. I was first elected to the House in 2005, in the aftermath of the introduction of tax credits. They had been introduced with a big bang, which was a disaster. Nearly half the recipients were paid the wrong amount of money—nearly £2,000,000,000 was paid in error. I had constituents who had been reassured over and over again that the money was theirs to spend, but then Her Majesty’s Revenue and Customs came to take it away. I had constituents in tears at my surgery. Let us not pretend that the legacy benefit system is perfect, because that is not what we are comparing universal credit with; we are comparing it with a legacy benefit system that is flawed and needs to be improved.

[Ruth George (High Peak) (Lab)]

Does the right hon. Gentleman not agree that the problems with tax credit overpayments resulted from a low excess income level, which was then raised by the Labour Government to £5,000 a year, meaning that we did not get overpayments? The previous Government reduced it back to £1,000, so we are again seeing overpayments because people earn more. That is the problem: we had a Government that did listen and learn, and now we have one that will not.

[Mr Harper]

I was in the House at the time, and I am afraid that the Government were pushed into action and threw huge amounts of taxpayers’ money around in a way that did not target the problem.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Harper]

No, I have made that point and want now to move on to the design of the system.

For me, the biggest advantage of the universal credit system is that it gets rid of the hours caps on what people can earn and the reduction in the withdrawal of benefit. The hon. Member for Airdrie and Shotts (Neil Gray), who speaks for the Scottish National party, talked about taper rates and the reduction of benefit as people earn money. He is right about that, but what he forgets to say is that under the legacy benefit system that withdrawal of benefit could be up to 90%. It meant that it was not worth people—[Interruption.]

[Hannah Bardell (Livingston) (SNP)]

Will the right hon. Gentleman give way?

[Mr Harper]

We do not have very much time to speak. I am afraid the SNP Front Bencher took up a huge amount of time, so I am not going to take any more interventions from the SNP. He spoke for longer than the official Opposition.

We have reduced the effective tax rate for people on benefits from up to 90% to 63%. It was 65% to start off with and we were able to reduce that.

The second important point is that for many people on benefits who had hours caps, jobs had to be designed not around the needs of businesses or individuals, but around the needs of the benefit system. My experience when I was a Minister in the Department for Work and Pensions was of meeting businesses that designed jobs around the needs of their business. However, when they took on a fantastic employee who did a great job and then wanted to increase their hours and offer that person increased opportunities to earn a living, that person had to say, “I’m terribly sorry. I can’t take that promotion or those hours because it will put at risk my benefits and I will not be able to guarantee a roof over our head for my children.” That has changed and that is a radical improvement.

[Heidi Allen]

For the record, I was one of those employers, and I got very frustrated that I could not give more hours to people working for me. On the taper rate, the situation is better than it was. Given the choice, I would restore the taper rate to 50%, where it was originally designed to be. Does my right hon. Friend agree that if we are going to have to choose wisely where to spend money, we should pump money into work allowances for those claimants most adversely affected? That is where we should focus money on in this Budget.

[Mr Harper]

I agree with my hon. Friend that if the Chancellor is able to find some money—I always think it is very good to not try to write the Chancellor’s Budget in advance—the work allowances are an area to prioritise. I know that that is what my right hon. Friend the Member for Chingford and Woodford Green thinks, too. I am sure the Chancellor will have heard the call in the letter that he wrote and in the debate today from my hon. Friend. Getting rid of the hours caps is really important. It means that jobs can be better focused on individuals and that we give people the opportunity to get into work, progress in work, and be able to earn for their families.

The final point I want to make in the one and a half minutes I have left—I will not take any more interventions, because it takes time away from other Members—is on the experience of constituents. I still get constituents writing to me about universal credit—of course I do. But in the past year, since we rolled out universal credit in my constituency, I get about half the number I once did. I now get about half the number of problems that I used to get with the legacy benefit system.

I also want to take this opportunity—I hope the Secretary of State can take this back to the Department—to say that of course when one is rolling out a benefit system to millions of people there will be errors, but the experience of my constituency staff is that when we raise those issues with the Department it looks at them properly and we get considered, detailed responses to solve them for my constituents. The members of staff in the Department are very focused on doing their best for our constituents. I certainly had the experience—I have heard the Minister of State say this as well—from when I was in the Department of frontline staff saying that the introduction of universal credit was the first time they felt they could do what they came to work at the Department for, which is to help constituents get into work, earn more money and be able to provide for their families. That is a fantastic thing and I urge the Secretary of State to continue to roll out the benefit in a careful way.

--- Later in debate ---

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I am pleased to be called to speak in the debate and to be given yet another opportunity to voice my full-hearted support for the universal credit policy. I also warn against some of the voices that we have heard from the Opposition Benches today and from outside this Chamber who have called for universal credit to be scrapped, not least the voice of the shadow Chancellor. We have heard today that that may now be the official policy of the Labour party. That is risky, taking us back to the days when Labour left office. We must never forget that, in 2010, the number of households in which no one worked almost doubled.

I have the privilege of being the chairman of the all-party group for youth employment. Each month, we look at the youth employment statistics—the number of people in work and out of work. We do that because the statistics are important but, of course, what is far more important is the lives of the young people that are transformed as they move into work and are given their first opportunity on the jobs ladder.

[Mr Harper]

My hon. Friend makes an important point. [Interruption.] If Opposition Members will be quiet, I can ask my short intervention. That will leave more time for them to speak. If they keep hectoring, it will take longer.

Will my hon. Friend confirm that, if we were to go back to the legacy system, what we would effectively be doing, given the withdrawal rates, is increasing the rate of tax on those young people going back into work?

[Michael Tomlinson]

I am grateful to my right hon. Friend for his intervention. I am sorry that he received the welcome that he did from Opposition Members because he makes a powerful point. Seeing young people’s prospects turned around is one of the greatest privileges of being the chairman of the all-party group. Those prospects will be put at risk if we wind back the clock and return to the legacy system—a system that disincentivised young people and, in fact, people of all ages from getting back into work. There was a marginal equivalent tax rate in excess of 90% and the 16-hour rule effectively disincentivised people of all ages, including young people, from getting back into work.

My hon. Friend the Member for Plymouth, Moor View (Johnny Mercer) made a powerful point about the compassion of Members on the Conservative Benches. The hon. Member for Redcar (Anna Turley) said that this policy was cruel. There is nothing cruel about encouraging those who can work to get into work, just as there is nothing compassionate about trapping people in benefits. This is a progressive policy. It should be welcomed on both sides of the Chamber.

Earlier, my hon. Friend the Member for Cheltenham (Alex Chalk) said that he had gone to Jobcentre Plus and seen the difference that the policy was making for his constituents. My hon. Friend the Member for St Austell and Newquay (Steve Double) made exactly the same point. When we go into our jobcentres, we see the opportunity and positivity from the work coaches, who see that they can now do the job that they wanted to do when they went into it. This policy should be supported.

We have heard from the Employment Minister—I want him to confirm this in his response—that this policy helps people to get into work faster than under the legacy system. It means that, when they are in work, they stay in work longer, they have the potential to earn more and their progression is greater. I would welcome the Minister repeating that in his closing remarks. I invite Members on both sides of the House to support universal credit and to oppose the motion.

Draft Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2018 draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2018

Mark Harper Excerpts

Tuesday 20th February 2018 General Committees

[Sarah Newton]

I thank the hon. Members for Glasgow South West and for Battersea for welcoming and supporting this really important uprating. I am sure that the increase will be welcomed by the people who are affected.

The hon. Gentleman asked why we are uprating using this particular measure. It is commonly regarded as the best measure of inflation. It is the one that the Treasury uses, the Bank of England uses and the Government use for uprating. There is always this debate about which is the most effective measure, but that is the settled view of the Government. At 3%, it is a decent rise that people will experience.

[Mr Mark Harper (Forest of Dean) (Con)]

On that point about RPI, not only is CPI thought to be better, but the Office for National Statistics—the independent statistics organisation—and the UK Statistics Authority have said that RPI is a flawed measure, and it is not counted as an official UK national statistic because it is so unreliable.

[Sarah Newton]

I thank my right hon. Friend for such a helpful intervention. He knows this matter well, having been the Minister in this place before. I am sure he has had to respond to that question in similar debates, and I thank him for that additional point.

The hon. Member for Battersea asked me a number of questions, and I will try my best to get through them all. If I have omitted to make a timely note, I will follow up any unanswered questions after reading Hansard. First, she asked why impact assessments have not been prepared for the statutory instruments. I remind hon. Members that the statutory instruments do not change any policy or existing scheme; they just uprate the amount that is paid. If there were new measures or policies, it would be absolutely right and proper to do an impact assessment in relation to businesses, charities and voluntary bodies; but as there would be no impact, because all of those assessments would have been done when the legislation was introduced, there is no need to do that.

Universal Credit Roll-out

Mark Harper Excerpts

Tuesday 24th October 2017 Commons Chamber

[Mr Mark Harper (Forest of Dean) (Con)]

I am grateful to you, Mr Speaker. It is always good to have that discipline behind one.

Let me start with a point about process. I listened carefully to what the shadow Secretary of State, the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), said. In the House, she resisted temptation and accurately quoted what the House had decided last week, but I am afraid that outside the House the Labour party is misleading people. It is saying that Parliament voted to pause and fix universal credit, but the motion last week did no such thing. I mention that because it is important to the substance of today’s debate about the Government’s response.

As the hon. Lady said, the House did ask the Government to pause, but what the House did not do was provide a single reason in that motion why the Government should pause. [Interruption.] I was at the debate last week, and I spoke in it. The hon. Lady set out some reasons in her speech, but the motion, which is what the Government have been asked to respond to, contained not a single reason why the Government should pause.

[Victoria Atkins (Louth and Horncastle) (Con)]

It may well be that if Her Majesty's Opposition had added just a couple of words to their motion so that it read, “That this House calls on the Government to pause the roll-out of universal credit full service in January 2018, as announced in the written statement by the Government in November 2016”, we could all have agreed.

[Mr Harper]

I am grateful for my hon. Friend’s intervention.

Let me run through, very briefly, one or two of the points made by the hon. Member for Oldham East and Saddleworth. She is fond of saying that she completely supports the principle of universal credit and wants it to be implemented, but she then goes on to list innumerable reasons for her fundamental disagreement with all the key strands of the benefit. She cannot have it both ways. If she does not want universal credit to be implemented, let her just stand up and say so. She should not pretend that she agrees with the fundamental principles, and then say that she disagrees with almost every important aspect of it.

I listened to and read very carefully what the hon. Lady said during last week’s debate. I shall pick just a couple of reasons for the fact that I could not support that motion. The hon. Lady referred specifically to housing. The Minister set out the position very clearly today, as the Secretary of State did last week. If there are universal credit recipients who have issues with managing their rent, they can arrange for their landlords to be paid directly, but I do not think we should patronisingly assume that every single person receiving universal credit is incapable of managing the rent. Most of them are perfectly capable of managing their finances, and we should treat them accordingly.

[Ms Buck]

Can the right hon. Gentleman explain, then, why two thirds of private landlords are now expressing a reluctance to accept universal credit claimants as tenants in the first place?

[Mr Harper]

What I was going to come to was why I do not think it is right to pause the roll-out. One of the important aspects of the roll-out is the housing portal which will enable social housing landlords in the first instance to communicate with the Department to deal with tenants when there are rent issues. If we were to pause the roll-out, the Department would not have an opportunity to deal with the real issues that are raised, and to fix them.

[Stephen Lloyd]

Will the right hon. Gentleman give way?

[Mr Harper]

I am going to make some progress. I have only a couple of minutes left.

The Minister has been very clear today, and, like the Secretary of State last week, he has listened carefully to the issues that have been raised and, I think, has dealt with them. If we just paused, we would not have the opportunity to deal with any of those issues.

[Hannah Bardell]

Will the right hon. Gentleman give way?

[Mr Harper]

I have only a couple of minutes left.

The shadow Secretary of State had a number of asks, although I noticed that between last week and this week the list had become considerably longer. That is what happens when the asks are not included in the motion. In her speech last week, the hon. Lady specifically asked for waiting days to be removed completely. Waiting days have always been a factor in the welfare system. [Interruption.] I read the hon. Lady’s speech very carefully, and she said at the beginning that she wanted to get rid of the waiting period.

The reason for the waiting period is very simple. If someone falls out of work for a few days, for example, we do not want that person to submit a universal credit claim. There has always been a waiting period in the benefits system, and I think that that is sensible. The Minister has already dealt with the cases in which people need to be paid more frequently, and has accepted, as the Secretary of State did last week—

[Hannah Bardell]

Will the right hon. Gentleman give way?

[Mr Harper]

I am not going to give way. I have only a minute left.

The Minister has accepted, as the Secretary of State did last week, that the system was not paying people fast enough initially, but also pointed out that the more recent figures showed that the Department had speeded up the payments, and that it has refreshed the guidance to ensure that people can receive advance payments, which I think is very sensible. [Hon. Members: “Loans.”] They are not loans; they are advance payments. Anyone who earns a salary is familiar with the concept of an advance.

I have looked at all the issues that the hon. Member for Oldham East and Saddleworth raised last week. The Secretary of State dealt with each and every one of those issues thoroughly during the debate, but the motion, which called for a pause, did not give a single reason why the Government should pause roll-out. The Secretary of State, the Minister and the Leader of the House have made it clear that as we develop changes in the policy, they will be reported to the House. That is why I do not find it surprising that after only three sitting days—as was pointed out by my hon. Friend the Member for North Dorset (Simon Hoare)—Ministers had not come to the House.

I think that the Minister set out the position very clearly today and that the House has debated it very clearly, and I therefore think that people should have confidence in a policy that will get more people into work.

Universal Credit Roll-out

Mark Harper Excerpts

Wednesday 18th October 2017 Commons Chamber

[Mr Mark Harper (Forest of Dean) (Con)]

I will follow your strictures, Madam Deputy Speaker, and be relatively brief.

Let me take first the words on the Order Paper, which do not bear any relation to what the shadow Secretary of State said. She said she was asking the House to support a motion to pause and fix universal credit, but that is not what it says. It is what the title said yesterday, but between yesterday and today all the Opposition are now calling for is for us to pause universal credit and not bother doing any fixing at all.

[Mrs Main]

Perhaps my right hon. Friend needs to look at the Annunciator. We have moved on. We are now not pausing; we are just discussing. There is no mention of “pause”.

[Mr Harper]

I was grateful for my hon. Friend’s earlier intervention, which was taken up. It is a serious point. The former Secretary of State, my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), made the point that pausing the roll-out of universal credit does not help anybody, given the positive effects it is having on getting people into work and allowing them to progress in the workplace. My right hon. Friend the Secretary of State made the point that this is both an in-work and out-of-work benefit. That means that those who are out of work and are thinking about taking a job can have the confidence to do so, because it will not mean throwing up in the air all their existing arrangements for paying for their house and supporting their family. They will have the confidence to take on that work and to take extra hours, because they know they will be better off and that if it does not work out they will not have to go back to the drawing board.

[Ms Karen Buck (Westminster North) (Lab)]

One of the principal concerns about universal credit is what is happening to people’s housing costs. Is the right hon. Gentleman aware that two-thirds of all private landlords now report that the people on universal credit they are renting to are in arrears? Will he support the call of housing charities for changes to be made to the roll-out of universal credit to make sure that when people take that step into work they do not put themselves at increased risk of losing their home? As currently envisaged, that is exactly what the roll-out will do.

[Mr Harper]

Let me address part of that point now and I will also come on to it later in my remarks. We should not compare universal credit with some mystical world of perfection; we should compare it with the existing system. Under the existing system, housing benefit is not perfect. There are lots of issues with housing benefit and tax credits in the existing benefit system. I understand that the citizens advice bureau has about 600,000 ongoing cases under the existing benefit system, so we are not talking about comparing universal credit with perfection. The existing system is not very good, does not work very well, and does not support people very well. Universal credit is an improvement.

On housing and the direct payment of landlords, which I know is controversial, my own view is that it is better to assume that people can manage their rent themselves. In cases where they cannot, and it is shown that they cannot, my right hon. Friend the Member for Chingford and Woodford Green made it clear—as the Secretary of State did, with the roll-out of the housing portal—that we can deal with that. I do not think it is reasonable to assume that everybody on universal credit is incapable of managing their own money. That is what is assumed with the insistence on paying landlords directly. The other advantage of paying the person directly is that landlords cannot then discriminate against people who get housing benefit. If universal credit is paid directly to you and you make the payment, the landlord does not know that you are a benefit recipient and therefore cannot discriminate against you by having signs in the window saying, “I won’t take people on DSS,” which I know some landlords do.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

Will the right hon. Gentleman give way?

--- Later in debate ---

[Mr Harper]

I do not have very much time and I am conscious that Madam Deputy Speaker wants me to be brief, so let me move on to my final two points.

On the design of the system, my right hon. Friend the Secretary of State is exactly right. It is about setting up a system that is like work, so that those people who are not yet in work have a system that enables them to get into work and manage those challenges. There was talk by the shadow Secretary of State about assuming IT skills. Universal credit is digital by default—it is only by default; people can still apply on paper—and I think 99% of people make claims electronically. In the modern world, most jobs have to be applied for electronically and most jobs require a certain level of IT skill. If someone is not capable of applying online, they will find it very difficult to get into work. It is important that the work coach can identify that requirement, so the proper help and support can be put in place to enable that person to have the digital skills to be able to get into the workplace.

The final point I wanted to address, which I think is potentially life-changing, is the nature of job opportunities open to people. We all know that the existing benefit system has hour limits, so people are unable to take jobs with more hours. There is a 16-hour limit and a 24-hour limit. Employers end up designing jobs around the benefit system, not the requirements of their business or the requirements of the individuals. Universal credit means that an employer can design a job around the requirements of the business. It means that if somebody is successfully working 16 hours and wants to take on more hours to support their family, they do not have to think about the benefit system. They can think about their own arrangements and the needs of their family. They know that universal credit will adjust to mean that they are better off having taken that job and that they will be better off taking those extra hours.

Universal credit is a very powerful benefit and a real change. It will, as has been said, change the culture and the life-chances of many people. I therefore support the continuation of the roll-out of universal credit with a careful test, learn and rectify approach, particularly with a Secretary of State who has demonstrated that he listens. I am not persuaded to support the motion on the Order Paper. I find it very easy to resist that temptation.