Oral Answers to Questions

Lord Harper Excerpts

Monday 1st September 2014 Commons Chamber

[Andrew Griffiths (Burton) (Con)]

1. What assessment he has made of the level of charges levied by doctors for completing benefit assessment information.

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

The Department is able to request medical information from doctors as part of the process of assessing an individual’s entitlement to benefit; for example, doctors have to complete the fit note and the ESA113 forms and they have also to complete, where we pay them, forms related to the application for the personal independence payment.

[Andrew Griffiths]

I thank the Minister for that answer, but East Staffordshire citizens advice bureau has raised with me concerns that GPs are charging vulnerable constituents of mine up to £135 to provide information requested as part of the work capability assessment. Although his Department is not responsible for those charges, does he share my concern that vulnerable people on benefits are being charged this amount of money and may actually not be able to access benefits to which they are entitled?

[Mr Harper]

I am grateful to my hon. Friend for raising that point. Certainly as far as the WCA for the employment and support allowance is concerned, GPs are contractually required to provide a fit note and to provide the ESA113 form, so perhaps if he and I speak afterwards I can get further details of the specific case he mentions, because it may raise some issues that need to be drawn to my attention.

[Mr Frank Field (Birkenhead) (Lab)]

Might the Minister extend that invitation to other Members of the House who are equally concerned about the charges made on our poorer constituents so that they can make benefits appeals? I am talking about ESA. Can he justify a group who are among the top 1% of salary earners in this country charging our constituents these extraordinary rates, in order that our constituents may try to establish their right, for example, to ESA?

[Mr Harper]

As I said in answer to my hon. Friend the Member for Burton (Andrew Griffiths), when people are applying for ESA in the first place the Department obviously asks them to provide any medical information they think will be helpful, and as part of that process GPs are required contractually to fill in a specific form. Constituents should not be charged for extra information provided on top of that as part of their application. If the right hon. Gentleman wants to give me the information, I will be very happy to look into the specific case he mentions.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

Does the Minister share my concern that one major reason for inappropriate decisions is a complete lack of evidence submitted by general practitioners and hospital doctors, without whom no appropriate decision can be made? What views does he have on trying to encourage hospital doctors also to provide this information, to allow the right decision to be made first time around?

[Mr Harper]

Again, the rules are very clear: under a long-standing agreement, NHS hospitals and trusts are obliged to provide the relevant information free of charge and within 10 working days. However, from listening to my hon. Friend’s question it sounds as if he may have encountered at least one case where that has not happened. I will speak to him afterwards to see whether that raises any issues about whether this policy, which is clear, is actually being implemented by NHS organisations.

[Kerry McCarthy (Bristol East) (Lab)]

When people in my office were chasing up Atos the other day, they were told that it is still dealing with ESA claims from the beginning of 2013, and that one reason for not being able to process claims more quickly was a difficulty in recruiting doctors to submit the medical information. Will the Minister examine this situation urgently, because it is obviously causing huge distress to people who are having to wait well over a year for their claims to be looked at?

[Mr Harper]

I am not quite sure whether when the hon. Lady talks about Atos she is referring to the work capability assessment—

[Kerry McCarthy]

indicated assent.

[Mr Harper]

She nods to say that she is. We have made inroads into the backlog of claims, and it is worth remembering that ESA claimants will normally be in receipt of benefit while they are waiting for the work capability assessment to be looked at.

[David Mowat (Warrington South) (Con)]

2. What steps he is taking to ensure that employees will not be auto-enrolled into high-cost pension schemes.

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[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

13. How long the average wait for an assessment for a personal independence payment was on the latest date for which figures are available.

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

The straightforward answer is that claimants have to wait for too long. We are committed to putting that right by clearing backlogs and improving processing time. Analysts in the Department are currently considering what information we should publish in future. We will pre-announce that publication in due course, in line with the UK Statistics Authority’s code of practice.

[Nick Smith]

How much has the Department for Work and Pensions returned to the Treasury because of the delayed implementation of the PIP?

[Mr Harper]

The Department has not returned any money to the Treasury as a result of the delays. There have been delays in processing these payments. I know they cause issues for constituents, which is why my right hon. Friend the Secretary of State made a clear commitment to reduce the waiting times by the autumn and then again by the end of the year. One of my top priorities, having started this job in July, is to get that reform process under way so that we can deliver that improved performance to benefit all our constituents.

[Heidi Alexander]

One of my constituents, a single mum who has been undergoing chemotherapy for breast cancer, waited over nine months for her PIP claim to be processed. It was sorted out only after my intervention. When will the Minister admit that it is not just how long the claims are taking to process but the fact that the system is utterly shambolic that is causing untold hardship to many people who are already living in very difficult circumstances?

[Mr Harper]

I would say two things. Clearly, I am disappointed to hear about the circumstances that the hon. Lady’s constituent has faced, which is why we are focusing on improving the system. My predecessor, my right hon. Friend the Member for Hemel Hempstead (Mike Penning), put a lot of work into improving the position for constituents who have terminal illnesses. We have made significant strides there, reducing processing times almost to the level we would expect, which is a matter of days. We are now focusing on other claims, so that constituents such as those of the hon. Lady will not have to wait for that length of time in the future.

[Bridget Phillipson]

In his earlier response, the Minister said that claimants are having to wait too long, but is it not the case, as Atos acknowledged in an e-mail to me, that that is on average 26 weeks? Surely it is wholly unacceptable to leave people in hardship and distress while they wait. What will the Minister do to sort out that chaos?

[Mr Harper]

First, I agree that the wait is too long. My right hon. Friend the Secretary of State has made it clear that no one should be waiting longer than 26 weeks by the autumn, and 16 weeks by the end of the year, and we will make sure that that happens. As regards hardship, PIP is not an income-replacement benefit for those out of work. It is paid in work and out of work. There are other benefits available such as employment and support allowance, which can help those people who have lost their jobs through no fault of their own.

[Nigel Mills (Amber Valley) (Con)]

What scope is there for increasing the number of people who can get PIP without having to go through the medical assessment? If written evidence is clear that they are entitled to it, why waste everyone’s time by going through an assessment?

[Mr Harper]

I agree with my hon. Friend. It is a relatively new benefit, and what we are trying to ensure is that in cases where there is clear medical evidence for the impact of someone’s disability, the decision can be made without their having to come in for a face-to-face assessment. That was not happening enough in the earlier stages; it is one of the improvements that we are making.

[Charles Hendry (Wealden) (Con)]

A constituent has contacted me to tell me that when he turned up for his assessment he was told that it had been cancelled because there were too many people waiting, so he was sent home. He then missed two further appointments, arguably through no fault of his own, and has now been refused a further assessment. Will the Minister intervene to ensure that, as the first one was cancelled through no fault of his own and was a result of a mistake by the assessors, a new assessment can be booked for him as soon as possible?

[Mr Harper]

Clearly, I do not know the facts of the case. If my hon. Friend contacts my office after questions, I will of course consider it and see what we can do to ensure that his constituent gets an assessment and that if he is entitled to the benefit, he can receive it.

[Stephen Mosley (City of Chester) (Con)]

May I first welcome the Minister’s refreshingly clear and straightforward response to the initial question? To get things right, we must first admit that things are not working perfectly. To that end, has he been able to assess how different assessment centres compare against one another and whether any good practice from one can be carried over to the others?

[Mr Harper]

My hon. Friend makes a very good point. He will know that we have committed to two independent reviews of the PIP assessment, the first of which will report to Parliament at the end of this year. Last week I had the opportunity to meet Paul Gray, who is carrying out that review, and I am confident that his report will give us lots of useful things that we can do to improve matters on top of the things that we already do.

[Dame Anne Begg (Aberdeen South) (Lab)]

Delays in getting a decision are causing other problems which I hope the Minister will look into. First, people are waiting so long that the sum they eventually get from the DWP puts them above the capital limits, which can affect their income-related benefits and cause problems with their housing benefit. Secondly, there seems to be some sort of computer glitch that means that when somebody is on ESA and is then awarded PIP the ESA stops and it takes some time for them to get that payment. Will the Minister consider both problems?

[Mr Harper]

I will certainly consider the points that the hon. Lady makes. I am due before her Select Committee a week Thursday for an extensive session on the personal independence payment. I am sure that she will ask me that question then and I hope that I will have a detailed answer prepared for her in advance.

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[Nia Griffith (Llanelli) (Lab)]

6. How many people were awaiting a work capability assessment on the latest date for which figures are available.

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

Between April and the end of July, the number of people awaiting an employment and support allowance work capability assessment fell by 75,000 to 637,000. It is worth saying, as I have said in answer to the hon. Member for Bristol East (Kerry McCarthy), that claimants will normally be in receipt of benefit while they wait for an assessment, and that any arrears due are paid once a decision is made.

[Nia Griffith]

The Work and Pensions Committee said in its recent report that the flaws in the system were so grave that simply rebranding the work capability assessment for eligibility for employment and support allowance by giving it a new contractor would simply not solve the problem. Does the Minister agree, and what changes will he make to the new contract?

[Mr Harper]

I am not going to prejudge at the Dispatch Box the detailed response I shall give to the Work and Pensions Committee’s detailed look at the work capability assessment, but clearly one of our key priorities is to continue Atos’s work to the end of its contract, get the new provider in place and ensure that the process is working. The Select Committee made some thoughtful remarks about steps for the future. We shall respond to them in due course, when I respond to its report.

[Kate Green (Stretford and Urmston) (Lab)]

I am delighted to congratulate the Minister on his new appointment.

Last month, it emerged that some people have been waiting a year and more for a work capability assessment—we heard that again from my hon. Friend the Member for Bristol East (Kerry McCarthy) this afternoon. The Minister is right that many of those people will receive some benefit while waiting for their claim to be processed, but they may also be subject to inappropriate conditionality and a deep sense of uncertainty and insecurity. What action is he taking to ensure that assessments and claims are finalised within 13 weeks, as the Government intended?

[Mr Harper]

I thank the hon. Lady for welcoming me to my post. I agree with her. She is absolutely right—I have said that we want to drive down the length of time that people are waiting. My priority is, first, to ensure that Atos performs against its commitments to the end of its contract in February, that we get a new contract awarded to a new provider, and that the new provider picks up the reins smoothly from Atos and continues to drive down the backlog, so that our constituents wait as little time as possible. Those are the things I shall be focused on between now and the election.

[Robert Flello (Stoke-on-Trent South) (Lab)]

7. What progress he has made on the introduction of face-to-face pensions advice.

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[Nic Dakin (Scunthorpe) (Lab)]

10. What recent discussions he has had with representatives of local authorities on transition plans relating to the closure of the independent living fund.

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

The Department continues to work closely with the independent living fund, and just last week I met the chief executive and chairman of the board of trustees. The independent living fund continues to work closely with all local authorities in England and the devolved Administrations in Scotland and Wales.

[Nic Dakin]

North Lincolnshire council tells me that it has insufficient information about the transfer to engage properly with recipients of the ILF to give them a better sense of their future. The Government have consistently failed to give assurances that the changes will not mean that recipients lose their independence. Will the Minister give that assurance today?

[Mr Harper]

I am surprised by the hon. Gentleman’s comments about his local authority, because the information provided to me is that local authorities actively engage with the ILF: they have attended more than 90% of the meetings with users. The hon. Gentleman will also know that the Government are fully funding local authorities and the Scottish and Welsh Administrations for the amount of money that would be provided to people under the ILF. If he has specific concerns, he and I should have a conversation.

[Duncan Hames (Chippenham) (LD)]

As the Government are fully funding local authorities for this obligation, can there be any possible justification for councils removing support from current recipients of the independent living fund?

[Mr Harper]

My hon. Friend will know that local authorities have a statutory duty to make sure that they properly support those who require social care. A third of the 1.3 million people who already get social care—444,000 people—are of working age, compared with 17,000 who are beneficiaries of the ILF, so I think local authorities are well practised at this and should have no excuse for not doing the job properly.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I remind the Minister that while local authorities may be well practised, they are certainly used to the fact that more and more aspects of social care are heaped on them without their having the ability to pay? He is bankrupting local authorities up and down the country and should not make the excuse that this particular benefit is being funded.

[Mr Harper]

I agree that local authorities have had some funding challenges due to the appalling budget deficit we inherited from the Labour party. Local authorities can set priorities. When my own local authority in Gloucestershire was making its difficult spending decisions, it rightly put adult social care and child protection at the top of that list of priorities and I am very grateful that it did so.

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

11. When he expects the business case for universal credit to be fully signed off.

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[Sarah Newton (Truro and Falmouth) (Con)]

14. What progress his Department has made on its Disability Confident campaign.

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

In July last year, the Prime Minister launched the Disability Confident campaign, which sought to encourage employers to become more confident about employing disabled people. We have reached over 1,100 local and national employers throughout Great Britain, and have received more than 200 pledges from companies in their quest to have better employment outcomes for disabled people. My predecessor wrote to colleagues and I encourage them to hold Disability Confident events in their constituencies.

[Sarah Newton]

I thank the Minister for his response. May I convey to him how positive the Disability Confident events are, having joined one in my constituency this summer? Will he congratulate Pluss, a great social enterprise in my constituency that has worked with more than 500 Cornish businesses to enable more than 800 people to get into work?

[Mr Harper]

I am grateful for my hon. Friend’s question and for the work that she is doing. I am pleased to be able to congratulate Pluss. I think that I am right in remembering that I visited it when I shadowed this brief in opposition. The work that it does and the success of the event are testimony to its efforts to get more disabled people into work.

[Ian Lavery (Wansbeck) (Lab)]

The outcomes for people on the Work programme who are unemployed on health grounds are simply abysmal. What will the Minister do about that?

[Mr Harper]

The important thing is to see whether people who have health conditions are able to work. If we put people through a work capability assessment and they are clearly not able to work at all, we want to ensure that they get the appropriate help, but if people can work, we want to ensure that they do. That is why we have the Work programme and other schemes that give people proper support to get them into work.

[Martin Vickers (Cleethorpes) (Con)]

15. What assessment he has made of recent trends in employment in (a) North Lincolnshire and (b) North East Lincolnshire local authority areas.

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[Caroline Dinenage (Gosport) (Con)]

T2. A number of my constituents have experienced lengthy delays while waiting for a decision on a review of their personal independence payment application. That is a time of great uncertainty and stress for all concerned. In addition to the efforts that the Minister has already outlined, will he tell us what steps he will take to speed up the application, review and appeal processes?

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

My hon. Friend will know from earlier answers the priority that we attach to this. As well as ensuring that the assessment can take place faster, we are also ensuring that the DWP decision makers will be able to cope with the increased number of cases as those cases move through the system, so that, once we have got the assessment process sorted out, those decisions will be made in a timely way which will benefit her constituents and mine.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

T4. Ministers have talked about bedroom tax exemptions, but in reality these do not protect unpaid family carers. In fact, 60,000 carers are hit by the tax, and Carers UK has found that 75% of the carers it surveyed were cutting back on food and heating to make up the shortfall. Will the Minister now accept how cruel and unfair it is to make unpaid family carers pay the bedroom tax?

[Mr Harper]

The hon. Lady will know that the spare room subsidy is about making sure that people have the size of home that they are entitled to, and that if people regularly need carers to stay overnight, that is considered an acceptable reason for having an extra bedroom. She will also know that we have made considerable funds available to local authorities through the discretionary housing payments, many of which have not even been spent.

[Richard Graham (Gloucester) (Con)]

T3. I welcome the Minister’s commitment to reducing the waiting times for processing benefit applications. At a recent meeting that I organised for Atos, the DWP, citizens advice bureaux and MPs’ caseworkers in Gloucestershire, representatives of the CABs expressed their suspicion that DWP contractors were paid according to how many people they could take off benefits. Will my hon. Friend confirm that that is absolutely not the case? Will he also encourage CABs to work closely with MPs’ offices so that we can intervene sooner to help our constituents who have problems?

[Mr Harper]

I can confirm to my hon. Friend and constituency neighbour that contractors are not paid based on any sort of incentive arrangement to get people off benefits. They are paid to make an accurate assessment, which they then provide to departmental decision makers. Citizens advice bureaux should continue their work with MPs’ offices, which is incredibly helpful.

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

T5. Despite the Minister’s earlier optimism, is it not clear that it has all gone badly wrong when the Government can organise to pay disability benefits to an on-the-run convicted killer such as David Richards, who as I understand it just walked out of jail, but cannot organise for some of the poorest disabled people in my constituency even to have their applications assessed within six months?

[Mr Harper]

I am not familiar with the case that the hon. Gentleman raises, although I know he has written to me to raise some PIP cases. I have not yet confirmed this to him, so I confirm now at the Dispatch Box that I will be happy to meet him to discuss those cases.

[Mr Rob Wilson (Reading East) (Con)]

T7. In a few weeks, I will hold my eighth Reading jobs fair. At the previous seven, 20,000 jobseekers and 300 local businesses have already been welcomed. Will my right hon. Friend the Secretary of State join me in thanking all the businesses and partner organisations that have made that possible, and in welcoming the impact that it has had on reducing unemployment in the Reading area?

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[John Robertson (Glasgow North West) (Lab)]

T8. My hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) mentioned the carers caught up in the bedroom tax. How many of them are still caught up in it?

[Mr Harper]

The hon. Gentleman knows that, as I have just said, if someone has an overnight carer, that is a perfectly acceptable reason for having a room. He will also know that local authorities have been given significant sums in discretionary housing payments to deal with difficult cases that do not clearly fit the rules. Most local authorities are not spending the money that the Government have allocated to them.

[Dr Julian Huppert (Cambridge) (LD)]

On 11 March last year, I asked the Secretary of State about under-occupancy. I said:

“Does the Secretary of State agree that no benefit reduction should take place until people have at least been offered somewhere appropriately sized and located?”—[Official Report, 11 March 2013; Vol. 560, c. 22.]

The Secretary of State said, “I agree”. What has he done to deliver that?

Disabled People's Right to Control

Lord Harper Excerpts

Thursday 17th July 2014 Written Statements

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

The right to control pilot operated in seven areas of England between 12 December 2010 and 12 December 2013. The aims of the pilot were to bring together a number of different funding streams into a streamlined process that allowed disabled people choice and control over how funding for them was used to provide the care, support (including employment support) and equipment they needed; and to test the costs and benefits to public authorities.

The Government remain committed to the principles of personalisation and of providing disabled people with greater choice and control over how the funding they are entitled to is used by them or on their behalf. While the evaluation of this pilot may not have resulted in any measurable impact on outcomes, it was popular with those individuals who exercised their right to control and they valued the greater flexibilities it gave them. It also acted as a catalyst to developing local relationships and partnerships.

Since the right to control pilot began in 2010, developments in Government policy have increasingly recognised the importance of personalisation in the delivery of services. The Care Act 2014 enables greater choice and control for the individual in adult social care and also provides co-operation duties to support partnership working and the flexibility needed to maintain right to control style approaches at local level. We are in the process of introducing personalisation within the context of the disability and health employment strategy, to develop a more personalised approach to delivering employment support for disabled people.

Taking these changes into consideration together with the evaluation findings of the right to control pilot the Government have decided not to roll out the right to control nationally.

As required by the Welfare Reform Act 2009, a report on the operation of the pilot has been prepared, and I will place a copy of the report in the House Library.

DWP: Performance

Lord Harper Excerpts

Monday 30th June 2014 Commons Chamber

[Rachel Reeves]

If the Secretary of State now claims that he signs his letters “The correspondence unit”, perhaps he has replied, but I would have expected the Secretary of State to sign the letters and I will be very happy to forward all the letters to him. [Interruption.] He carries on chuntering from a sedentary position; I have not had a single letter about my casework from him. I will send them all to him, and perhaps he can write to me and my constituents explaining why they have been treated so abysmally by him and his Government.

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

All I can say is that my experience when raising cases from my excellent local citizens advice bureau is that they have been answered very well, in full and thoroughly by the Minister for disabled people, my right hon. Friend the Member for Hemel Hempstead (Mike Penning), who has listened to my concerns and answered them, largely dealing with the appalling performance of Atos, hired by the Labour party and dealt with successfully by my right hon. Friend.

[Rachel Reeves]

Well, maybe there is one rule for Tory Back Benchers and another rule for Labour party MPs, because I have not had a single letter signed by the Secretary of State.

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

In the short time available, I want to make a few brief points. The first is that from listening to Labour Members one would never have thought that they had a record. In rolling out universal credit, my right hon. Friend the Secretary of State is taking the right approach. It is slower than we would originally have liked, but taking a careful approach has a lot to recommend it. When we were in opposition and the Labour party rolled out tax credits in a big bang, constituents of mine who needed the money were given the wrong amount and had to pay it back, so they were getting to the point at which they were pleading for the tax credits to be taken away. Taking a careful approach is very sensible. If she has not already done so, I hope that the shadow Secretary of State takes up my right hon. Friend’s offer to go to a jobcentre that is rolling out universal credit to see how the system is operating in practice. That would be very welcome.

It is worth saying that my right hon. Friend the Prime Minister has been right to allow my right hon. Friend to be the Secretary of State for a significant period so that he can see the reforms through. I looked at what happened under the Labour party: in the nine years that the Department for Work and Pensions existed, there were eight Secretaries of State. To be fair, one or two Secretaries of State tried some reforms, but they were barely in the job long enough to think about them or to design policies before they were moved on. It is to this Government’s credit that we have allowed Cabinet Ministers to be in an office, come up with policies, implement them, deal with the difficulties—there will inevitably be some in making the largest welfare reform programme for decades—and see them through. My hon. Friend the Secretary of State discussed and was passionate about the issues before we entered government, and it is very welcome that he has had the chance to see the reforms through.

To turn to my constituency, I want to draw the House’s attention to the benefit cap, which the Labour party opposed. I must say that the only feedback I have ever had in my constituency is that we set the benefit cap too high. In a constituency where the average individual salary is only £24,000 to £25,000, my constituents think that £26,000 net income, which is equivalent to £35,000 gross, is quite generous. Families who work hard for many hours to support themselves do not see why other people should take away more money from hard-working taxpayers than they get for working. The cap is the right policy, and it is to the Labour party’s discredit that it opposed it instead of supporting us in doing what is right. I suspect that many Labour voters support the benefit cap, and think that we are right and that the Labour party is wrong about the policy.

On the difficulties of assessments, I have checked with my office to make sure that I can speak with the facts. On the employment and support allowance, that difficult welfare reform was started by the Labour party with, to be fair, our support. When the Labour Government tried to do the right thing, we supported them, but Labour Members have been sorely lacking in such a cross-party approach. I am afraid that the instant they were on the Opposition Benches, any pretence of being interested in welfare reform fell away. I do not know what the reason was—whether it was their union paymasters or just opportunism—but they have never supported anything that we have done, despite our more cross-party approach.

The main issues about assessments are related to the performance of Atos. As I said in an intervention, the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Hemel Hempstead (Mike Penning), who has responsibility for disabled people, looked into the issues I raised, and wrote thoughtful and considered replies, which I shared with local citizens advice bureaux, and we have managed to speed up the assessments for my constituents. However, I must say that the problem was inherited from the Labour party. The contract was very poor. I know that Ministers took action—

[Several hon. Members]

rose—

[Mr Harper]

I will not give way, because I am very limited on time.

I am very pleased that Ministers took thoughtful action so that the contract could be ended with Atos having to pay compensation to the Department and to the taxpayer, rather than the taxpayer having to compensate Atos.

[Dame Anne Begg]

Will the hon. Gentleman give way?

[Mr Harper]

I will give way to the Chair of the Select Committee.

[Dame Anne Begg]

If the hon. Gentleman is right that the Atos contract for the delivery of the work capability assessment was a mess, why is he not criticising his Government for using the same company on a new contract for a very different benefit called personal independence payment?

[Mr Harper]

That is partly because she did not give me a chance. I was talking about the employment and support allowance and the work capability assessment. Atos has not performed well on the work capability assessment, and I am very pleased that that has been terminated, but it had to be done thoughtfully so that compensation was due from the company to the taxpayer, not the other way round.

The Secretary of State set out very carefully the Government’s approach to rolling out personal independence payment. It is the right policy to deliver more support for disabled people, and to help them to get into work and to live independent lives. I am not pretending that it is easy—it is a difficult thing to do—and I am pleased that the Secretary of State has had the courage to continue.

On employment, we must recognise that there are 2 million more jobs in the private sector. I forget which Opposition Member tried to suggest that all these new jobs are simply schemes. The fact that there are 2 million more jobs in the private sector means that, even with the difficult decisions we have had to take in reducing jobs in the public sector, there has been an overall net increase of 1.7 million jobs.

What I am proudest of—as a combination of our immigration policy, employment and welfare policies and skills agenda—is the fact that three quarters of the jobs created since the election have gone to British citizens. In the five years up to the crash, the Labour party’s policies meant that less than 10% of the jobs that were created benefited British citizens. That was a disastrous failure and a policy mistake that I am glad this Government have put right. My right hon. Friend the Secretary of State can be proud of his record, and this party can be proud to support him in the Division Lobby this evening.

amendment of the law

Lord Harper Excerpts

Tuesday 25th March 2014 Commons Chamber

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

I listened carefully to what my right hon. Friend said about incentives to work. Will he say a little about the 450,000 fewer workless households, and the 290,000 fewer children living in such households? Perhaps that has something to do with his welfare reforms.

[Mr Duncan Smith]

I am going to come on to that, but one of the great success stories is the fact that the number of workless households has fallen for the first time in 30 years. My hon. Friend is absolutely right, and I shall give a few more details about that in a second.

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[Rachel Reeves]

My hon. Friend makes an important point: women are disproportionately hit by the changes introduced by this Government and are struggling with the rising cost of living more than anybody in this country. Moreover, the increasing costs of child care under this Government are making it harder for working parents, particularly working mums, to go back to work and make the contribution we need to the economy.

Four years ago, this Government said that debt would fall and that living standards would rise, yet the reverse has happened. They have broken their promise to balance the books by 2015 and they are set to borrow £190 billion more than they had planned. National debt is rising this year and it will rise next year and the year after that. There is more borrowing, more debt and more welfare spending under this Government.

[Mr Harper]

On the subject of debt and future spending—the hon. Lady will probably get to this later in her speech—will she answer the question asked by my right hon. Friend the Secretary of State about her remarks at a meeting last week? She is reported to have said that it would be better if she could reverse all of the changes and make benefits universal. That is a spending commitment of hundreds of billions of pounds. She needs to say whether she said it or not; otherwise no one will believe a word the Opposition say.

[Rachel Reeves]

We are the party who have said that we will cut the winter fuel allowance for the richest pensioners and means-test that benefit to save money, but Government Members do not support that. The reality is that we are the party who are willing to take tough decisions to get the welfare bill down, whereas it is rising, not falling, under this Government.

The truth is that social security spending is £13 billion more than this Government had planned. In last week’s Budget, the Chancellor had to revise up spending on social security by £1 billion more this year and £1 billion more next year than the Government had planned just six months ago. Was that what the Prime Minister meant when he said that he was cutting the cost of welfare? It is going up, not down.

The problem is that without addressing the cost of living crisis, it is not possible to control the costs of social security. Long-term youth unemployment has doubled since 2010, costing taxpayers £330 million a year. The number of people working part-time who want a full-time job is up to 1.4 million, costing £4.6 billion in extra social security. One in five workers are paid less than a living wage—up from 3.9 million in 2009—costing the Treasury an estimated £3.2 billion a year. Housing benefit is increasing and has been revised up again because house building is at a record low. The Secretary of State has also played his part, with his shambolic welfare reforms. Just one in five people who have been on the Work programme for two years have secured a job; £1 billion has been paid out, yet more people are ending up back in the jobcentre than getting a job through the Secretary of State’s failed Work programme.

--- Later in debate ---

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

I will start by drawing attention to the question that I asked the shadow Secretary of State. I notice that she did not deny saying that she wanted to reverse all the changes that the Government have made—[Interruption.] Well, according to the well-known Guido Fawkes website, with which I believe one or two Members are familiar—[Laughter.] If she did not say it, then she should deny it. At a meeting of Christians on the Left, she said:

“It will be much better if we can say that all of the changes that the Government have introduced we can reverse and all benefits can be universal.”

If she did not say that, she should just say so. I will take her intervention. She should deny that she said it. Given that she has not taken the opportunity to deny it, we will know when she leads her party into the Lobby to support our benefit cap that it is a mirage to fool the voters. If Labour ever gets its hands on the tiller, it will increase welfare spending and it will not help people into work.

Let me take the hon. Lady squarely on to the cost of living agenda and her allegation that my right hon. Friend the Chancellor said nothing about it. That is complete and utter nonsense. This morning, the rate of inflation fell according to the consumer prices index and the retail prices index. CPI inflation is at its lowest level for four years.

On jobs, unemployment is continuing to fall. When Labour was in power between 2003 and 2008, when the economy was creating jobs, 90% of those jobs were going to foreign nationals. That provoked the former Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), to say that there should be

“British jobs for British workers”,

but he had no idea what to do about it. I am very proud, as should be the Secretary of State and the Home Secretary, that since this Government have been in power, because of our welfare, immigration and skills reforms, more than 75% of the 1.3 million net new jobs have gone to British citizens. The British public will be very supportive of that. [Interruption.] The hon. Member for Rhondda (Chris Bryant) keeps chuntering, but he should listen. More than three quarters of the 1.3 million net new jobs have gone to British citizens. That is a record of which I am very proud.

[Chris Bryant (Rhondda) (Lab)]

When the hon. Gentleman was Immigration Minister, he said at the Dispatch Box time and again that net migration was falling. Actually, it rose by a third in the year in which he was Minister.

[Mr Harper]

I have been very clear that net migration from outside the EU is falling, but that it is going up from inside the EU. That is why we will renegotiate and put the terms to a referendum. We trust the British people with that decision—something that the hon. Gentleman’s party is not prepared to do.

One of the most important things that we have done on the cost of living is to enable interest rates to stay low. That means that one of the largest costs for any family—their mortgage—has stayed at a very low rate. That has been incredibly important and the Labour party would put it at risk.

[Mr Stewart Jackson (Peterborough) (Con)]

Is it not a bit galling to take lessons from the Labour party on equity and fairness when, under this Government since 2010 there are 400,000 fewer workless households and 290,000 children who are no longer in workless households? That is a record that I will be proud to stand on at the general election next year.

[Mr Harper]

My hon. Friend is absolutely right.

Also on the cost of living, I am very proud that Conservative councillors in Gloucestershire, working in partnership with the Government, have delivered a council tax freeze. Council tax is one of the most significant costs for families, after their mortgage. Gloucestershire county council has delivered a council tax freeze in every year since 2011-12; Forest of Dean district council has delivered a freeze since the 2011 local election; and Tewkesbury borough council has frozen council tax for four years running. I am looking at my council tax bill. The Conservative-controlled bits of the bill are frozen. The only bits that have gone up are those that are controlled by the independent police and crime commissioner who, for the second year running, has broken his promise and put up council tax for hard-working families across my constituency. That is an unacceptable breach of his manifesto promises. I am pleased that Conservative councils, working in partnership with the Government, have kept council tax low.

In constituencies like mine, having a car is not a luxury but a necessity, so I am pleased that we have frozen fuel duty. That means that for my constituents petrol is 20p a litre cheaper at the pumps than it would have been if the fuel escalator put in place by Labour had continued. That is not a trivial matter for my constituents. It saves them £11 or so every time they fill up and it is very much welcomed.

The hon. Lady spoke about our pension reforms. I know why there is some confusion, to which the Secretary of State drew attention. I raised in the House last week at Business questions the interesting response from one of the Opposition’s key policy advisers, a man who used to advise their Social Security Secretary, the right hon. and learned Member for Camberwell and Peckham (Ms Harman). He said—and I think this is what many on the Labour Benches believe—that

“you cannot trust people to spend their own money sensibly planning for their retirement”.

He was not a lone voice. He was supported by the hon. Member for West Bromwich East (Mr Watson), who said that the Labour party must oppose our policies, and there are a number of other Labour MPs such as the hon. Member for Great Grimsby (Austin Mitchell), and the hon. Member for Aberdeen South (Dame Anne Begg), who is in the Chamber, who sounded a little confused. She was sort of welcoming—[Interruption.] She sounded a little confused about our policy. I have great respect for the hon. Lady, with whom I worked when I was in opposition as the shadow Minister for disabled people.

[Dame Anne Begg (Aberdeen South) (Lab)]

If the hon. Gentleman waits, he will hear that I will be asking the Government Front-Bench team rather a lot of questions. Perhaps at the end of today’s debate, Ministers will be able to answer them.

[Mr Harper]

All I said is that the hon. Lady is not as enthusiastic about our changes as the hon. Member for Leeds West suggested. It is clear that we on the Government Benches, as the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Thornbury and Yate (Steve Webb) set out clearly, trust people to save their own money and we trust them to make sensible decisions in retirement about how to spend it. The idea that somebody who has spent their entire lifetime working hard and building up a pension pot is going to throw the money away when they reach retirement age is nonsense.

[Phil Wilson (Sedgefield) (Lab)]

Will the hon. Gentleman give way?

[Mr Harper]

I will not give way; I will make progress. Our pension reforms are very valuable and will be well supported.

Finally, I draw the attention of the House to the use of the phrase “middle income”. I noticed that a story I was reading in The Guardian referred to 40p taxpayers as being on a middle income. For example, according to the latest figures that are available by parliamentary constituency, the median income in 2011-12—not the mean income—in my constituency is only £18,800. We on the Government Benches are right to keep our tax changes focused on the least well paid and those genuinely on a middle income.

There is not a single constituency in our country where the median taxpayer—the middle taxpayer—is paying the higher rate of tax, not even in the Cities of London and Westminster, Chelsea and Fulham or some of the wealthiest parts of London. In those constituencies, the median income earner is paying the basic rate of tax. My right hon. Friend the Chancellor’s focus on helping those middle income payers was absolutely right. It is right for our party. The Conservative party should be focused on helping the great majority of taxpayers.

It is worth bearing in mind that a higher rate taxpayer—again, I am using the 2011-12 figures—is in the top 14% of income earners. That does not mean that those people are not important, but it is right that we focused our help on those at the middle and lower end. This Budget was one for hard-working people at all levels of the income scale. It was for people who want to save and for people who want to get on in life. I am proud to support it this evening and will continue doing so.