Disability Employment Gap
Richard Graham Excerpts(8 years, 6 months ago)
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Stephen Crabb
The hon. Lady mentions an extremely important point. We are doing that, particularly for people with disabilities. More broadly, with our universal credit reforms, that is one of the things that we will be doing generally for people moving off benefits. The support does not end the day that they find a job. The support continues, to ensure that the employment is sustainable.
On top of the long-standing barriers disabled people have faced, there are serious long-term demographic changes. They require serious and long-term cross-sector solutions. No single policy or initiative from my Department or any other will serve as a silver bullet to immediately close and seal the disability employment gap. We will only make the strides we all want to see by working differently and by working in a truly collaborative way; yes, with the health service and the welfare system, but also with local authorities, employers, charities and voluntary organisations. It means we also need to listen to, and speak with, those who know what support will work best—disabled people themselves.
That is why I announced that we will publish a Green Paper later this year to do just that. I make no apology for taking the time to ensure we get such important reforms right. The reforms have the potential to transform so many lives. It is important to build consensus and to seek the views and support of the individuals and groups involved. It is also about understanding what works with groups who perhaps have not been heard from enough so far, such as smaller, local organisations who have a lot of expertise and understanding of what works on the ground, and importantly, groups such as employers to look seriously at the role they have to support and help the disabled people they employ.
Richard Graham (Gloucester) (Con)
The Secretary of State will know of the work done by the charity Pluss. Indeed, his colleague the Under-Secretary of State for Disabled People, my hon. Friend the Member for North Swindon (Justin Tomlinson), attended the showing of a recent video it produced about people who had returned to work. Does he agree with Pluss and me that there may be opportunities to attract more smaller employers into taking on people with disabilities if there is a tax break on national insurance, in the same way as there is a tax break on apprenticeships for smaller employers at the moment?
Stephen Crabb
It is exactly that kind of incentive that I hope the Green Paper process will explore. Those are exactly the kinds of ideas that we need to examine. My colleagues in the Treasury will obviously take an interest, but we have to think differently right across Government if we are to have any hope of closing the disability employment gap. I am particularly keen to know what small businesses think about what they can do to employ more people with disabilities.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
May I first start with apologies from my hon. Friend the Member for Pontypridd (Owen Smith)? He is attending a debate on the EU with the former Secretary of State, taking the opportunity to consider that issue in relation to its impact on disadvantaged people.
We have had a very interesting debate, with many well-informed and well-argued speeches. I pay tribute to the hon. Member for Airdrie and Shotts (Neil Gray) and wish his nephew with cerebral palsy all the very best with his GCSEs. [Hon. Members: “Hear, hear.”] My hon. Friend the Member for Workington (Sue Hayman) talked about her constituent who had gone through the PIP process and how it was affecting her ability to work. The hon. Member for South Cambridgeshire (Heidi Allen) gave a characteristically brave and honest speech, which we in this place have come to expect from her. My hon. Friend the Member for Blaydon (Mr Anderson) talked about his experience as a care worker and said that he has a family member with muscular dystrophy. He is the chair of the all-party group on that condition and made a very well-informed speech.
The hon. Member for Banff and Buchan (Dr Whiteford), with characteristic forensic analysis, talked about the issues we currently face in social security policy, in particular the lack of evidence for many of the measures the Government have introduced. The hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) focused on the disability employment gap and the variations relating to different conditions—a very important point. My hon. Friend the Member for Cardiff Central (Jo Stevens) described in detail her constituent’s dreadful and deskilling experience of working for the Fit for Work programme. The process focused on data, not people. We need our interest to be focused on people.
About 12 million people in the UK are living with a disability, an impairment or a limiting, long-term illness: 5.7 million are of working age; 5.2 million are over the age of 65; and 0.8 million are children. Although 4 million people with disabilities are working already, another 1.3 million are fit for work and want to work, but they are currently unemployed. However, as we have heard, the gap in the employment rate for disabled people, compared with non-disabled people, has grown under the Government to 34%—a 4% increase since they took office. Given that the vast majority—90%—of disabled people used to work, that is such a waste of their skills, experience and talent.
As study upon study has shown, the Government’s pledge to halve the disability employment gap rings hollow, with estimates that it will take until 2030 to do that at the current rate. The shelved White Paper, with the promise of a strategy defining support for disabled people, is yet another broken promise. Although I recognise that the Green Paper is coming, why did that not happen in the first place? Why has there been this about-turn?
The issue comes down to whether the Government believe in the principles that underpin the UN convention on the rights of persons with disabilities, to which we are a signatory. Fundamentally, disabled people should be able to participate fully in all aspects of society, including work, and to access the same opportunities as everyone else, and that includes being able to use their talent and skills to the best of their ability. No one should feel that they are unable to reach their best potential or that their hopes and dreams do not matter. Do the Government therefore support the principles and articles of the UN convention? If so, when will they publish the UN committee’s report investigating the UK’s breaches of the convention and their response to it?
Debbie Abrahams
I am sorry, but I will not—I have a lot that I want to say.
The Government set the tone for the culture of society explicitly through their policies and laws, and more subtly through the language they use and what they imply. Collectively, those things tell us who they think is worthy or not. The Government have made their views abundantly clear. Their swingeing cuts to social security support for disabled people—including the recent ESA WRAG cut of £1,500 a year—total nearly £30 billion since 2010 to 3.7 million disabled people.
The Government’s overhaul of the work capability assessment manages to be both dehumanising and ineffective, and it has been associated with profound mental health effects, including suicide. Their sanctions policy targets the most vulnerable, bringing people to the brink, and some have died under it. The PIP debacle is making it harder for disabled people to stay in work. There is also the closure of the independent living fund. I could go on and on. This is happening across all Government Departments—Business, Innovation and Skills; housing; Transport; Education; Justice; and Culture, Media and Sport. Disabled people are being completely marginalised.
Universal Credit (Children)
Richard Graham Excerpts(8 years, 7 months ago)
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Kate Osamor
I totally agree with my hon. Friend. There are many lone workers and people who have their own businesses in my constituency, and they have come to see me in my office to say that they are very concerned because they need to use benefits to top up their salaries. This is an issue that I hope the Government will take into account.
I conclude by asking the Minister to review the impact that work allowance reductions are having on working families, particularly single families. Secondly, will the Government agree to review annually the decision to freeze most key children’s benefits for four years?
Madam Deputy Speaker (Natascha Engel)
Were you here at the beginning of the debate, Mr Graham?
Richard Graham (Gloucester) (Con)
I am very grateful to you, Madam Deputy Speaker.
Today’s debate comes at an interesting time. The right hon. Member for East Ham (Stephen Timms) introduced it with his usual reasonableness on an issue of concern to everybody here. There are two or three points that I would like to highlight in a brief contribution. The first is the biggest strategic challenge for the right hon. Gentleman and his colleagues, which is where the balance of the strategy that Labour Members are trying to pursue will lead the country. I offer two thoughts. The first is that Labour Members have still not told us what reforms to welfare benefits they would make to reduce the budget deficit that we and all our constituents still face. At a time when the country is spending more on the interest of our debt than on the education of our children, it has to be wrong to ignore this part of the equation.
I think I am right in saying that Labour opposed every one of the welfare reforms pushed through by the coalition Government in the last Parliament, which amounted to some £20 billion of reductions in expenditure, and indeed have opposed everything in this Parliament as well. This comes at the same time as consistently opposing in this Parliament measures that the Government have taken to improve conditions for businesses that generate, directly and indirectly, 75% of all the tax that pays for the services, the welfare and the pensions that we all know are so important to our constituents.
Richard Graham
I have two points in response to that. First, when it comes to generating more tax, I subscribe to the philosophy of the former Chinese leader, Deng Xiaoping, who said:
“It matters not whether the cat is white or black so long as it catches mice.”
On this occasion, when we lowered the top tax rate from 50% to 45%, the additional tax revenue was £8 billion. My question to the hon. Lady and her colleagues is this, “Would you rather have an extra £8 billion of tax revenue to spend on our vital services, or enjoy the ideological thrill of raising the top tax rate and collecting less tax revenue with less to spend on services?” I know what I would go for; I am not sure about her.
Richard Graham
The hon. Lady is shaking her head, which suggests to me that my colleague on the Select Committee on Work and Pensions is still from the school of thought that prefers to raise taxes and get less tax revenue. I would have thought that the period of Reaganomics and Thatcheromics had made it very clear that we incentivise businesses to grow, to generate more revenue and to employ more people by creating a business-friendly environment rather than the opposite. It is something that the hon. Lady and her party will have to work out.
The hon. Lady’s second question was on the married person’s tax allowance. All the evidence from research done over a period of years shows that we have happier families and less dysfunctional behaviour when we have closer families, and marriage plays a key part in that. I recognise that not all Members subscribe to the importance of marriage as a contributing factor to a happy society, but we should probably leave that debate for another day.
My second main point relates to what the right hon. Member for East Ham said about universal credit, in particular the part of the motion that states that
“many may struggle with elements of the new approaches to payment and administration”.
There is a philosophical issue here, too. Originally, the current Minister for Welfare Reform, Lord Freud, acted as an adviser to the last Labour Government, and he recommended many solutions to the problem of tax credits, which he has now implemented in government with our party. I once asked him what the difference was between the work he had done for the previous Labour Government and our own Government. He said that the difference was simply that we would implement it.
The former Labour Chancellor of the Exchequer and Member for Edinburgh South West, now Lord Darling, said in this House that Labour had not implemented universal credit simply because it was “too difficult”. His party has always struggled with the fact that we are implementing something that it had decided was too difficult. Labour Members have not been able to work out whether to oppose it all in principle, which would be odd, given that they had looked at it, or whether to attack it in detail on the basis that it is too complicated to do. As universal credit continues to move forward on its journey across the country, affecting a growing number of people, I suspect that that challenge is going to be more and more difficult, and those on the Labour Front Bench are going to have to reconcile these problems.
The assumption behind what the right hon. Member for East Ham said today is that universal credit is basically all too complicated, with the twist that it now cannot be understood by those who are going on to it. I do not know how many Members have actually been to their Jobcentre Plus and spoken to people working there about the implementation of universal credit, as well as to their customers, namely our constituents who are receiving it. I suspect that those who have done so, as I have, will find that people working in Jobcentre Plus find universal credit to be a huge step forward. More than one officer working there described it to me as a quiet revolution, while those receiving it find it much easier to understand than the plethora of often contradictory benefit systems that our country built up over a long period of time.
I fundamentally disagree with the right hon. Member for East Ham—reluctantly, because I agree with him on several things—on the notion that universal credit cannot be understood by those either receiving it or responsible for administering it. He claimed that there were “long delays” to universal credit claims, and that the Trussell Trust had said once again, having said it several times before, that the increase in demand for food banks was largely down to the delays in benefits. Because I had heard that argument for quite a long time, last year I set up with my local citizens advice bureau a service agreement that obliged it to refer to me any instance of any of my constituents who are waiting longer to receive benefits due to them than the accepted norm set by the DWP. That covered any situation. In the last six months, how many people had been referred to my office for unnecessary delays to their benefits? One—one single constituent. It could be argued that there is not a complete correlation between people referred to the food bank by the CAB and those who go to the food bank. That could be true. A number of organisations in the city of Gloucester, including my own office, refer people to our food bank. None the less, the CAB is probably—I do not have the precise statistics—the biggest single organisation handling the welfare difficulties of my constituents. It is, I think, telling that over the last six months there has been only one case of unnecessary delays in the receipt of benefits.
Stephen Timms
The hon. Gentleman has got slightly the wrong end of the stick in relation to what I was saying. The problem with universal credit is that the five-week delay is built into the design of the benefit. That is not a fault; it is how it is supposed to work. The assumption is that someone who has last month’s pay cheque in the bank can cope for a month. That is the problem that the Trussell Trust is starting to identify, and Citizens Advice is saying that, in practice, it is proving to be a very serious problem for many claimants of the new benefit.
Richard Graham
I do not think that I have grasped the wrong end of the stick, but I may have grasped a different part of the stick, and I think it is important for all parts of the stick to be considered in this context. I will, however, respond directly to the point that the right hon. Gentleman has made.
I have sought permission from the Department for Work and Pensions and my local Jobcentre Plus to install a DWP adviser in the George Whitefield Centre—appropriately, as the right hon. Gentleman will know, named after the founder of Methodism—where there is both a food bank and a health service for the homeless. I hope that, should I be fortunate enough to receive approval from the Department and the Jobcentre Plus, the adviser, with access to a computer, will be able to see precisely where the problems are, and I hope that if, as the right hon. Gentleman suggests, the inbuilt delay is a real issue, that fact will be revealed. I put it to him gently, however, that there are a number of alternative scenarios, one of which is—to put it bluntly—that when people go to a food bank and are asked why they have done so, it is very easy for them to say, “I have had problems getting my benefits.” I hope that one of the advantages of the presence of a DWP adviser will be the ability to establish the extent to which that claim is correct, or possibly slightly exaggerated. The reality of life, I think, is that people get into financial difficulties—through no particular fault of their own—in a series of different ways, and I think that that is an aspect of the Trussell Trust feedback that has not been explored in enough detail so far.
Neil Gray
It is not just the Trussell Trust that is reporting circumstances in which people find themselves requiring emergency food aid from food banks. In February last year, the Poverty Alliance in Scotland reported that delays in benefits and cuts in social security support were the direct responsible contributing factor in those circumstances. Perhaps the hon. Gentleman will reflect on the fact that that is being said not just by one organisation, but by many.
Richard Graham
I sort of thank the hon. Gentleman for his intervention, but I do not think that he should rely on statements made by particular charities that tend to generalise. I encourage him to look into the position in his own constituency in detail, so that he can establish what the issues are.
At some point, the hon. Gentleman will also have to face the same strategic issue to which I referred the right hon. Member for East Ham and his party. If the position of the hon. Gentleman’s party is that all welfare expenditure is sacrosanct from now until the end of all days, he and his party will have to think about where they will find the revenue to fund that, and how they will do so without building up excessive debt on which interest has to be paid, which reduces the amount of money that is available to be spent on services.
If the hon. Gentleman studies—as our Select Committee has—the ratio between our country’s budget expenditure on welfare and that of some of the largest comparable nations in Europe, such as France and Germany, he will see that we spend more on welfare than they do. That is the challenge there for him and his party. He shakes his head, but reality will have to intervene one day, as my colleague Ruth Davidson in Scotland has pointed out several times.
Other Members wish to speak. Let me end by addressing one particular aspect of child poverty. There is a philosophical divide between different parties in the House on this issue, but an important part of the motion tabled by the right hon. Member for East Ham is the request for the Government
“to ensure that the number of children in poverty…falls as a result of the introduction of the new universal credit system.”
Evidence suggests that the highest poverty exit rate is strongly linked to the children of families who have gone into work, and have moved from part-time to full-time employment. I believe I am right in saying that 75% is the figure that enables the number of children referred to in the motion to be reduced. I think that that tells us that any welfare system which encourages people to work longer hours, obtain promotion and advance themselves in different jobs will have a hugely beneficial impact on the number of children in poverty, and I have no doubt that the steps taken by the Government to improve the chances of those receiving universal credit of moving up the ladder in the workforce will have a positive effect on the number of children in relative poverty.
I have made four points. First, there was the philosophical point about the strategy of welfare relative to tax revenue. Secondly, there was the point about the value of universal credit to our own constituents. Thirdly, there was my gentle challenge to some of the assumptions of the Trussell Trust about why people are going to food banks, and the role of DWP advisers in shedding more light on that issue. Finally, I drew attention to the relationship between getting into the workplace and moving on, and relative child poverty. On the basis of those points, I cannot support the motion.
Oral Answers to Questions
Richard Graham Excerpts(8 years, 9 months ago)
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Mr Vara
I have a huge amount of respect for the right hon. Gentleman—I had the privilege of serving in the coalition Government Whips Office when he was one of the deputy Whips. At the time, he supported the Pensions Act 2011 and was responsible for persuading his Lib Dem colleagues to do likewise. One thing that was always the case with the Lib Dems before the coalition Government was that they blew with the wind. There was a temporary pause during the coalition Government. He is now proving that blowing with the wind is part of the Lib Dems’ DNA, and that they are back to normal.
Richard Graham (Gloucester) (Con)
The Opposition suggestion that the Government could allow that group of women to take their pensions early from the age of 63 has not been fully costed by anyone. Will my hon. Friend share with the House what the implications might be in terms of cost, whether it needs primary legislation and whether men over the age of 65 will be affected?
State Pension Age
Richard Graham Excerpts(8 years, 9 months ago)
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Mr Duncan Smith
Exactly, Mr Speaker, thank you. I say to the hon. Member for Pontypridd that, as I stood up, somebody told me—rather unfairly, I thought at the time—that he is shallow. Sadly, I now think that he gives shallow people a bad name. His response was pathetic and the urgent question was asked by an Opposition who have no policy and who jump around opposing everything and racking up spending commitments. No wonder they haven’t a hope in hell of being in government.
Richard Graham (Gloucester) (Con)
Every western democracy surely has a responsibility to review its state pension age on a regular basis and in a totally non-tribal, non-party political way so that its people know, a long time ahead, what changes will be made to the state pension age. If, in the past, we took too long to change the state pension age and then moved too quickly, surely now the cross-party consensus that was reached shows us that the right thing for the House to do is to set up the review, and that it should report back next year.
Mr Duncan Smith
My hon. Friend, who has spoken about the matter on a number of occasions, is right, and I thought that we had that consensus. We certainly had it during the last Parliament, because the Liberal Democrats in the coalition agreed with us. The hon. Member for Pontypridd has mentioned the former Pensions Minister, who was keen to get a state pension age review. The Pensions Commission has said that increases in the state pension age are essential and that an independent body should be established to review them. We are doing exactly that.
Welfare Reform and Work Bill
Richard Graham Excerpts(8 years, 9 months ago)
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Priti Patel
I have just touched on what we are doing to find extra employment support. As I have said, we are working with other organisations, and I have named only some of them. However, the issue of mental health is crucial to the way in which we connect our systems, working with the NHS. A joint working group from the Department for Work and Pensions and the Department of Health is looking into how we can help members of the ESA work-related activity group with mental health conditions, provide signposts for them, and secure treatment for them as well.
Richard Graham (Gloucester) (Con)
When the Opposition talk about income, what they really mean are welfare benefits. That is not what we mean when we talk about income. All the evidence shows that 75% of children in relative poverty will be removed from the poverty indicator if both parents in the household are working. There are now more children in families in which people are working than ever before: that is this Government’s record.
As for ESA, some of us have met people with significant disabilities who are working, such as the people from National Star College in Gloucestershire who are now working with EDF Energy. It is amazing to see what a difference that makes not just to their incomes, but to their overall life chances and life happiness.
Priti Patel
My hon. Friend is right to highlight the importance of work to people who have previously been locked out of employment opportunities. We have many schemes, but Disability Confident is a very good example of how we can work with employers to deliver sustained employment opportunities for people with disabilities. The Government are doing additional work on a wide-ranging employer strategy, working with employers specifically to establish how we can address the disability employment gap and how they can give people with disabilities more structured and sustained employment opportunities.
It is important to recognise that the changes in employment and support allowance and universal credit work together, and cannot be dealt with in isolation. We have invested a significant amount in universal credit to ensure that we keep people connected and engaged with the labour market from the outset of their claims. Unlike those claiming employment and support allowance, universal credit claimants with a health condition or disability are offered labour market support, when that is appropriate, at the very start of their claim. That helps them to remain closer to the labour market, even if they are not immediately able to return to work. It also provides them with employment support, advice or training to get back into work, which, in the long run, will help them to obtain jobs.
I stress that this change does not affect those in the ESA support group or the universal credit equivalent. It also does not affect the premiums that form part of income- related ESA. Moreover, existing ESA claimants will not be affected. There will be no cash losers, and the policy applies only to those who apply for ESA and subsequently enter the WRAG from April 2017. We also aim to protect those who move off ESA to try to work. Those who were receiving the component and returned to ESA within 12 weeks because they could not cope with work will be able to reclaim ESA and receive the component again. Hopefully, that will help to dispel the myth that everyone who is currently in the work-related activity group will be affected by the change. Universal credit works in a different way from ESA, but we aim to put similar protections in place.
This reform is a first and necessary step towards a wider reform package. In the autumn statement, my right hon. Friend the Chancellor announced that the Government would publish a White Paper this year that would set out our plans to improve support for people with health conditions and disabilities to further reduce the disability employment gap and promote integration across health and employment. That will include exploring the roles of employers.
Clauses 13 and 14, together with the additional practical support announced in the Budget, will provide the right support and incentives to help people with limited capability for work move closer to the labour market and, when ready, into work. In the light of those arguments, I hope that Members will feel able to support the Government.
Debbie Abrahams
No.
So how does living in poverty affect children’s development? People—
Debbie Abrahams
May I just make these points? Then I will give way to the hon. Gentleman.
People on low incomes are often juggling to heat or eat, as we heard in this morning’s Westminster Hall debate on the bedroom tax. Being able to pay their rent is an increasing issue; 443,000 are currently affected. Having a secure, warm home with healthy, nutritious food are basic physiological needs. When these needs are not met, people’s health suffers both physically and mentally. This is particularly the case for children as they are developing. Being in work or well educated does not guarantee these essential needs; money does. Again, I make my key point: two thirds of children in poverty now are from working families.
The lack of evidence, to which my hon. Friend the Member for City of Durham (Dr Blackman-Woods) was alluding, is stark. Why was there no Government impact assessment of these proposals? We should look at the evidence from the United States, for example. It has been analysing the effects of its social security reforms, and that shows that programmes that focus specifically on parental employment failed; in fact, they had no effect or exacerbated children’s health issues. Conversely, programmes focused on supplementing the income of low-income families improved health.
Debbie Abrahams
The point here is about making the Government accountable for their policies that may in turn be affecting those measures.
I know the hon. Member for Gloucester (Richard Graham) wanted to intervene, too.
Richard Graham
The hon. Lady is very kind. Both her party and ours are committed to ending child poverty, so the starting point is the same. The difference, in a sense, is the value of the relative indicator. She knows that one of the difficulties with the relative indicator is that quite often it will apparently improve during times of recession, but go down in times of growth. How effective does she think that is, therefore? About £300 billion was spent on benefits between 2003 and 2008. How effective does she think that expenditure was?
Richard Graham
This is a serious question. If the hon. Lady is saying that the evidence shows that the mortality rate of poor children in this country is worse than in the whole of the rest of Europe and the benefits that we are giving are greater than those in the whole of the rest of Europe, something is not working. What does she think needs to be done to improve that?
Debbie Abrahams
Again, the hon. Gentleman possibly does not have all the evidence. On spending-to-GDP comparisons, we do not do particularly well. The Marmot review of health inequalities concluded:
“One quarter of all deaths under the age of one would potentially be avoided if all births had the same level of risk as those to women with the lowest level of deprivation.”
Again, we should recognise that we are talking about people living in our constituencies. Evidence to the all-party inquiry showed that eliminating UK child poverty would save the lives of 1,400 children under 15 every year. Furthermore, good early development is strongly associated with many positive outcomes in later life, including higher educational attainment and improved employment prospects in adulthood. As another of the witnesses to the inquiry said, we are facing a child poverty crisis. Having made real progress in reducing child poverty in the UK, it is imperative that we continue to invest in our children, and protect and support the most vulnerable in our society. The introduction of the so-called “living wage”, the increase in personal tax allowances and more free childcare will not, as the Institute for Fiscal Studies has clearly shown, offset the net loss to low-income households from tax and social security changes, including those in this Bill. I therefore urge Members from all parts of the House to support this amendment—our children’s futures depend on it.
Lords amendment 8 seeks to remove clause 13 and Lords amendment 9 seeks to remove clause 14. Clause 13 seeks to abolish the employment and support allowance work-related activity component for new claimants from April 2017 and replace it with universal credit. That would mean that social security support for people with a disability, impairment or serious health condition will reduce from £102.15 to £73.10, a cut of nearly £30 a week or £1,500 annually. The Government have argued that this is needed to
“remove the financial incentives that could otherwise discourage claimants from taking steps back to work.”
The Lords rejected this on a number of grounds. First, people in the ESA work-related activity group have gone through the work capability assessment and been found not fit for work. This includes 5,000 people with progressive conditions such as multiple sclerosis and Parkinson’s—conditions that will not improve. It also includes people with cancer. A survey conducted by Macmillan Cancer Support found that one in 10 cancer patients would struggle to pay their rent or mortgage if ESA were cut. The key issue is that these people are not fit for work, so suggesting that removing financial incentives will somehow make them fit for work is ridiculous.
Debbie Abrahams
I am sorry but I have given the hon. Gentleman a number of opportunities to intervene.
Secondly, there is overwhelming evidence of the extra costs faced by sick and disabled people, the associated poverty they experience as a result, and the clear implications for their condition. We know that 5.1 million out of the 12 million disabled people in this country live in poverty. We also know from the Extra Costs Commission that disabled people are twice as likely to live in poverty, 80% of which is due to the extra costs they face because they are poorly—because they have a disability.
Lord Low of Dalston, Baroness Grey-Thompson and Baroness Meacher’s excellent report “Halving the Gap?” expressed real concerns that the Government’s assessment of the impacts of this cut on disabled people, including the potential increase in the number of disabled people living in poverty, was inadequate. They assessed that the cut in financial support would have an injurious impact on this vulnerable group. The Equality and Human Rights Commission agreed, with its analysis being that it
“will cause unnecessary hardship and anxiety to people who have been independently found unfit for work.”
Thirdly, there is scepticism that there are employment opportunities for those sick or disabled people who may recover from their condition in the future. Approximately 1.3 million disabled people who are fit and able to work are currently unemployed, accounting for the disability employment gap of nearly 30% between disabled and non-disabled people. The Government have rightly said that we need to halve that, but they have been less open on how that can be achieved, and I agree with what the hon. Member for Airdrie and Shotts (Neil Gray) said about the disability White Paper. There is one specialist disability employment adviser to 600 disabled people trying to get into work.
Oral Answers to Questions
Richard Graham Excerpts(8 years, 10 months ago)
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Priti Patel
Of course the hon. Gentleman is absolutely right. We are working with that organisation. I have been in touch with the National Autistic Society, too, to discuss what more we can do to work with employers and find more employment engagement for people on the spectrum. The hon. Gentleman is also right to highlight the need for more support for women with autism—and that is exactly what this Government are committed to do.
Richard Graham (Gloucester) (Con)
Increasing the number of women in employment is a key goal for this Government. Many good things are happening, but one thing going on in my Gloucester constituency highlights that more needs to be done—helping women on employment and support allowance back into employment. In that context, will the Minister join me in thanking a partnership called Forwards, which, led by the county council and in tandem with organisations such as Pluss, is making a huge difference to the lives of individuals who are now coming into work for the first time?
Priti Patel
I thank my hon. Friend for making that point and for his observations from his own constituency. He is right to say that more support can always be provided for women on ESA, but also for people in general on it. That is why this Government are committed to the reforms that we have outlined. Importantly, we are committed to working in partnership with other organisations, including charitable organisations—as well as local authorities—such as the one my hon. Friend mentioned from his own constituency.
Under-occupancy Penalty
Richard Graham Excerpts(8 years, 10 months ago)
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Justin Tomlinson
In fairness, I am the Minister who responds on housing issues in Parliament. In terms of fairness, we all talk to families on the housing waiting list. Try explaining to them why we should not make more of the accommodation available to them. We have already provided greater flexibility in Scotland through devolution to do what you wish to do with discretionary housing payments.
Richard Graham (Gloucester) (Con)
Clearly, we shall all wait for the Supreme Court judgment that will be delivered in due course, but two points must be clear today. Does the Minister agree that the incredible indignation expressed by the shadow Minister is blown apart by the fact that the family in question are receiving exactly the same amount of benefits as they were before the introduction of the spare bedroom subsidy? The Opposition’s opportunism is shown clearly by the fact that they took away the spare room subsidy from the much larger number of people in the private rented sector.
Justin Tomlinson
That is right. The people in these cases are in receipt of payment, which shows that discretionary housing payments work. It shows that, through flexibility, a co-ordinated approach is possible with the police, social services, medical professionals and other agencies.
Housing Benefit and Supported Housing
Richard Graham Excerpts(8 years, 10 months ago)
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Brandon Lewis
My hon. Friend clearly highlights the difference between the two parties. Labour spends a lot of time on bluster while the Government are focused on getting the job done for the people of Great Britain.
Richard Graham (Gloucester) (Con)
Can my hon. Friend confirm that those who will benefit from this exception from the 1% rent reduction during this year of consideration include those fleeing domestic abuse, and that it affects homeless provision and housing for ex-offenders as well as supported housing for older and disabled people? Does he recognise how much this will be welcomed by many of us? Will he pay tribute to those who are working with him on it, including Homeless Link and St Mungo’s?
Brandon Lewis
My hon. Friend makes a very good point. A large number of people provide phenomenal services, across the sector and across the country, in working with the most vulnerable. We are keen to work with them to make sure that, as we have said all along, the right protections are in place for the most vulnerable people.
Let there be no doubt: this Government will always protect the most vulnerable and provide them with the support they need and a safe home to live in. We are a one nation Government. We want everyone to have the opportunity to live happy and fulfilling lives, whoever they are and wherever they live. We want workers to earn a living wage and benefit from our strong economic growth. We want to support aspiration, boost productivity, reward work over welfare, and allow people to keep more of the money they have earned in their own pockets. That is our new settlement for Britain—to keep moving from a low-wage, high-tax, high-welfare economy to a higher-wage, lower-tax, lower-welfare country.
On this journey, we will, I repeat, always support vulnerable people and make sure they have a safe home to live in. The whole House should support that aim. Instead, Labour Members are resorting to their favourite tactic of scaremongering for a short-term political headline. It is time to stop that kind of poor politics. It is time to stop playing politics with the lives of vulnerable people while we are working to help to provide the support they need and deserve—and we will provide it.
Mr Jackson
No, I will not.
As my hon. Friend the Member for Solihull (Julian Knight) said, these are difficult decisions. In the short term, they will deliver £240 million in savings. The Institute for Fiscal Studies has said that in the long term, they will save £1.1 billion. We have to do this, given the fiscal inheritance that we took on.
The Government have a responsibility—it was a manifesto commitment, so there is a mandate from the people of this country—to deliver welfare reform. The hon. Member for Nottingham East (Chris Leslie) is no longer in his place, but if Labour Members really believe, after reading the report by Deborah Mattinson on the BritainThinks focus group, that the Labour party will ever be trusted on the economy, and particularly on welfare, with the policies it is pursuing—the right hon. Member for Wentworth and Dearne (John Healey) knows that this is the case—they are completely wrong. They have to understand that completely opposing everything the Government do on welfare reform, in favour of more spending, more taxing and more debt, will never deliver another majority Labour Government.
I say gently to housing associations that the 1% cut in rents will have a direct impact on all their tenants in general needs housing. There will be a 12% reduction in average rents by the end of the Parliament. We give £13 billion a year to housing associations so that they can discharge their duty to house people. They have to raise their game and meet the challenge. This is not often commented on, but housing associations are not subject to the Freedom of Information Act. We need to see that they are as efficient as possible. They are very efficient when it comes to campaigning against the Government, but they are not so efficient in resource allocation to deliver front-line services to the most vulnerable tenants.
Richard Graham
On that point, does my hon. Friend agree that over the past five years, large sections of the public sector have stepped up to the plate, delivered more for less and executed changes that have saved the taxpayer money and helped the public finances, and that housing associations should be able to follow that example?
Mr Jackson
I agree with my hon. Friend.
There will be an impact assessment and an evidence-based review of the whole assisted and supported housing regime. We do not know what the final decision will be, but it is for local housing associations to stop complaining and to work with planners, developers and other key partners, such as those in the national health service—
Access to Jobs: Disabled People
Richard Graham Excerpts(8 years, 11 months ago)
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Ian C. Lucas
Part of the reason why I secured this debate is to point out the failure of Government policy and the way in which it affected Margaret, who worked for Remploy for 26 years. Since the Prime Minister and the Conservative-Liberal Democrat Government decided to close Remploy, making Margaret redundant, she has not been in employment for a single day and has not been offered a job.
Rather than being a taxpayer, Margaret now lives on benefits. She has an income from the disability living allowance, and she receives an enhanced level of mobility allowance—£57.45 per week—and the middle-rate daily care component of £55.10 per week. She has even been refused employment and support allowance. When the initial assessment was made, she received no points. Even on appeal, she was given only nine points. She needs 15 points to qualify for the allowance. How can the disability benefits system present a case such as Margaret’s? She wants help to work and has been disabled from birth, but does not qualify for the benefit put in place by the Government supposedly to support her into work. What does the fact that the taxpayer is not supporting Margaret in her attempts to find work say about the Government’s policy?
Richard Graham (Gloucester) (Con)
The hon. Gentleman is telling a powerful story about his constituent, Margaret. Is he aware that in Gloucestershire we recently launched a programme called Supported Internships? Remploy was a partner, as were the local authority, the local further education college and two employers. Supported internships are an effective way for people with significant disabilities to get back into employment.
Ian C. Lucas
I have no doubt that they can be, but I am afraid they are not happening.
The 2014 labour force survey recognised that,
“disabled people remain significantly less likely to be in employment than non-disabled people.”
There is a 30.1% gap between levels of employment for disabled people and non-disabled people. I welcome any efforts to find internships and support individuals into work, which is what we all want. Margaret was in work when the Government decided to close Remploy factories, and we were told at the time that they would support those disabled people into jobs in the mainstream. When Remploy in Wrexham was closed and Margaret was put out of work, we received all sorts of assurances about how disabled employees would be helped into the mainstream jobs market.
Chris Evans (Islwyn) (Lab/Co-op)
It is a pleasure to serve under your chairmanship, Mr Chope. I congratulate my hon. Friend the Member for Wrexham (Ian C. Lucas) on securing this timely debate. Like him, whenever I think of Remploy, and particularly its Croespenmaen factory in my constituency, I feel anger, because I remember standing in the factory canteen on the day when it was announced that the Remploy factories were going to be closed. Some people were in tears and many were angry, begging me to save their jobs, but there was nothing I could do. That was one of my worst days as a Member of Parliament.
When that factory was under threat in 2007, the Remploy workers and the management did not sit back and protest. They went out and found business in the market. Indeed, one of the last acts of my predecessor, Lord Touhig, in 2010 was overseeing the signing of a contract between the blue chip company BAE Systems and Remploy to provide packaging.
What made me even more angry during that period was not only all the hard work that had gone to waste, but, as I mentioned in my intervention, what happened when the Welsh Assembly asked whether the Westminster Government would consider devolving the budgets so that it could provide a future for Remploy. When my right hon. Friend the Member for Cynon Valley (Ann Clwyd) raised the issue at Prime Minister’s questions, the Prime Minister gave a commitment to look at it. Unfortunately, the question was met by the Department with a big fat “no”.
The comment by the Secretary of State for Work and Pensions at the time that Remploy workers were only good to make a cup of coffee rubbed salt into the wounds and was absolutely damning. I try to hold back my anger when I think of comments like that. There was never an apology, and I am ashamed to say that that man is still in post.
I will, however, say this: there is nothing that can be done about Remploy now. It is no good looking back to the past. Those factories are gone. The workers unfortunately do not have a job, as in the case of Margaret, who my hon. Friend the Member for Wrexham spoke of. She has no future and is parked, like many of my constituents who worked in Remploy on employment and support allowance.
The worst thing is that, according to the solicitors firm Leigh Day, one in five people who have disabilities and find themselves in work still believe they are under pressure and under duress, and are fearful of announcing that they have some sort of disability. People who have short-term disabilities, such as those who have been diagnosed with Crohn’s or colitis, find themselves in disabling situations where they cannot work and find it difficult to come back to work. They rely on understanding employers, but many of them do not have that. Many of them find themselves out of work because of that.
I always want to give the Minister some suggestions, as the hon. Member for Blackpool North and Cleveleys (Paul Maynard) did; he made a very good speech and spoke from the heart, with great knowledge as a member of the Select Committee on Work and Pensions. I think the Minister knows what I am about to say, as I have said it to him on a number of occasions until I am blue in the face: the main tool for getting people back into work—Jobcentre Plus—is not fit for purpose. I am basing that not on anecdotal evidence but on the fact that 80% of people who gain a job through Jobcentre Plus are back out of work in six months. The fact is that statistical evidence shows that the most effective systems are not provided through Jobcentre Plus but based in the community. A job club or a training scheme based in a local library or supermarket is more effective.
Anybody who has ever had to walk into a jobcentre will know that it is akin to walking through Pentonville prison. There is a security guard on the doorstep. The seats are screwed into the floor. If someone is not there on time, the adviser will sanction them. They are not good places to look for jobs. What jobcentres are essentially doing when they sanction people is reaching at the most vulnerable. Those who are stuck in the system are being pushed further into it, and they are not being provided with the help and support they need. I have said over and over again that it does not matter how many schemes we have.
Richard Graham
Has the hon. Gentleman had the experience I have had of a really good Access to Work programme provider—in my case, Pluss, which has had considerable success in helping people with disabilities back into work? Does he agree that one thing we might do is put together some films of agencies and businesses that have had real success, so that we can show them in Parliament and spread the word about some of the great success stories, to encourage other employers to do more?
Chris Evans
I have come across Pluss. As the hon. Gentleman will know, I was once the unsuccessful candidate in the constituency of Cheltenham, right next door to his constituency. The work that Pluss does is absolutely fantastic, and I agree that we need to do more inside and outside Parliament to promote such training organisations.
The point I was coming to, which ties in well with the hon. Gentleman’s intervention, is that since the 1970s we have had 43 schemes in this country, introduced by Governments of all colours, and all of them have failed. Long-term unemployment is still stubbornly high, particularly for young people and those with disabilities. We now have to think outside the box. We can rebrand all our schemes—whether it is the youth training scheme, employment training, the new deal or even the Work programme—but they are not getting the outcomes we want.
I expect the Minister to defend Jobcentre Plus, which is a Government scheme; that is his right, but I want him to give people some hope that we will start thinking outside the box more.
Universal Credit Work Allowance
Richard Graham Excerpts(8 years, 11 months ago)
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Richard Graham (Gloucester) (Con)
We seem to have had endless debates on universal credit over the past five and a half to six years, and I am sure that we will have many more.
This Opposition day debate was opened with a call from the shadow Secretary of State to reverse the work allowance changes in universal credit. I sensed that he really wanted to reverse every welfare cut that has been made by this Government and their predecessor. After all, he and his colleagues opposed every penny of savings put forward by the coalition Government. However, he cannot do that, partly because he stood on a manifesto that would have reversed only the smallest welfare savings, such as the spare bedroom subsidy, and partly because he signed up to £12 billion of welfare savings. He did not tell us today that his party would reverse all the changes if it were elected into government, nor how he would find the £12 billion of savings.
Richard Graham
We will keep his windy eloquence for a moment, if that is all right. He had quite a long go earlier.
The reason the hon. Gentleman said nothing about that is that if there are no changes to tax credits or housing benefit, he will not find £12 billion of welfare savings. I suspect that either he has no policy at all, because none was announced today, or that he has something pretty horrific to say on housing benefit that the House needs to hear.
After the windy eloquence of the hon. Member for Pontypridd (Owen Smith), we heard the relative still small voice of calm of the right hon. Member for East Ham (Stephen Timms), who described universal credit as a sensible idea whose implementation was a shambles. I would describe universal credit as an inspired idea, but it is one that the former Labour Chancellor, the former Member for Edinburgh South West, described as too complicated to be taken up by his party. I agree that the implementation has been over-optimistic so far, but it is happening and I have seen it happening. I will come on to that, because I am not sure how many Opposition Members have gone to their Jobcentre Plus to find out how it is working. It is already delivering positive change to the lives of my constituents and many other people. One can criticise a project that is delayed, but that is happening and successfully so, when one said that it was impossible to do it at all, but it risks looking like carping, which is not really worthy of the right hon. Member for East Ham.
The truth is that Labour Members cannot make up their mind whether to say that universal credit was a bad idea, full stop; that it is a complete or partial shambles; or that it was a good idea, but they are not sure whether it will be a shambles. They half hope that universal credit will collapse, so that they can criticise it more and call again and again for my right hon. Friend the Secretary of State for Work and Pensions to resign, but they know in their heart of hearts that they must support universal credit because it is the right thing to do and it will completely transform the working opportunities of so many people in this country.
The reason why universal credit is right is absolutely clear to all of us. When tax credits were introduced, they were a modest cost to the taxpayer, but that cost ballooned from £6 billion in 1998 to £28 billion by 2010. As I have hinted, the former Chancellor and former right hon. Member for Edinburgh South West has described more eloquently than any of us here today could how that project ran miles away from its original intention. Something that was launched with the best of intentions—to help people on low wages—became a massive cost. It was not just a cost in itself, but generated huge interest costs that were simply unsustainable for this country, particularly after the great recession of 2007 to 2009.
In their heart of hearts, everybody in this House must recognise that universal credit is the way forward. I cannot believe that anyone here today who has been a Member for more than a few years has not received letters from constituents describing how their life on welfare makes it impossible for them to want to go to work, because they would be worse off working. I also cannot believe that Members here have not had meetings with employers in their constituencies at which they have described the number of times they have offered people who work for them promotions or a higher salary, only to be told, “Sorry, I don’t want that promotion. I would be worse off because I would lose more in benefits than I would gain from the promotion.”
Tax credits ended up as a disincentive to aspiration and achievement. Scottish National party Members may shake their heads, but that is the truth. What is also true, unfortunately, is that the welfare programmes that were introduced by the last Labour Government ended up, during the great recession, when 6,000 people in my constituency lost their jobs, many of them low-paid, trapping people on welfare with no incentive to go back to work. That is the background to the debate on universal credit. It is vital to our country that it works properly.
Those of us who have been to our Jobcentre Pluses where universal credit is being rolled out know that it is in place and working very well for single people. In Gloucestershire, it has not yet been introduced for families with children where there are two people who are in and out of work or in low-paid jobs. That is the more complicated element of universal credit. If my hon. Friends on the Front Bench are able to add more about the success of the rollout of universal credit to more complicated families with children, it would be reassuring for everyone. I have seen it in place in London and it seems to be working well.
I am conscious that there are time limits on us, so I will bring my contribution hastily to a conclusion. There are 156,000 people on universal credit who are receiving their benefits effectively. As I say, the people I have met in my constituency are definitely in a better place than they were. It is vital that universal credit continues to move forward as quickly as possible. I suspect that the figure of 156,000 will advance rapidly during this Parliament. We should all wish universal credit well. The changes that we are debating today are all part of a move towards a higher wage, lower tax, lower welfare society and away from what we were left in 2010, which was wages that were too low, taxes that were too high, unsustainable welfare and a system that was no longer working.
Let me finish by saying that I understand the emotional appeal of the speech by the hon. Member for Pontypridd, but it is vital that we reduce the cost of tax credits and the cost of welfare, and that we provide people with a system that incentivises them to work through universal credit.
Several hon. Members rose—
Tulip Siddiq (Hampstead and Kilburn) (Lab)
I would like to start by reassuring the hon. Member for Gloucester (Richard Graham) that I think universal credit is a total and utter shambles. I invite him to my constituency to speak to my constituents who are claiming benefits, because all of them are already in work. Tax credits did not stop them from going to work; tax credits incentivised them to go to work. He needs to visit constituencies in London to find out the truth and to dispel the myth that people claiming benefits are just scroungers. They are working hard; it is just that work does not pay.
Richard Graham
I have never said and would never say, and I do not believe anyone in this House would say, that people who work or do not work are scroungers. That is way beyond what I was implying. Let me put the record straight.
Tulip Siddiq
The hon. Gentleman certainly implied that in my opinion.
In January 2012, a considerable period of time before I entered the House, I listened to the Secretary of State tell the House in departmental questions:
“Universal credit is on track and on budget.”
Several years later and several billions of pounds of expense to the taxpayer later, his claim that
“I am not complacent about delivery”—[Official Report, 23 January 2012; Vol. 539, c. 8.]—
has not stood the test of time. Millions of families across the country, and especially in my constituency of Hampstead and Kilburn, have faced periods of relentless anxiety over the future of their welfare support. The year 2015 did not bring any fresh hope.
The Work and Pensions Committee’s report in December revealed that the roll-out of universal credit, from Royal Assent to resolving the final outstanding legacy payments, could stretch beyond a decade. The Government promised that universal credit would reach 4.5 million people by the 2015 general election. This has not happened. The Secretary of State may be content for his Department to cruise through endless periods of trial and error, but the delays to the roll-out have been at a significant cost to the taxpayer, with the Major Projects Authority revealing an increase of £3 billion in the past two years. The bill now stands at a staggering £15.8 billion. If the Secretary of State truly understands the pressures faced by claimants, he will apologise for the years of anxiety his delays have subjected them to.
The autumn statement fundamentally contradicts the Secretary of State’s ridiculous claim on “The Andrew Marr Show” that “nobody loses a penny” through the changes. They also mark the end of the Chancellor’s ludicrous claim at the Conservative party conference that the Tories are the new workers’ party. Nothing could be further from the truth. Cuts to the work allowance are so severe they will mean that single people and couples with no dependent children will lose out the moment they start working. Just listen to the facts: the poorest 20% are on average set to lose between 6% and 8% of their income. Just listen to Paul Johnson, the director of the Institute for Fiscal Studies, who stated that 2.6 million families will on average be £1,600 a year worse off. Further to that—this point was made eloquently by my right hon. Friend the Member for East Ham (Stephen Timms)— we know that transitional protections for claimants moving from the old system to universal credit will provide only £200 million against a background of £3 billion of cuts. Transitional protections are dropped when a claimant’s circumstances change. We know that new claimants will have no protection whatever.
Richard Graham
Is the hon. Lady aware that the IFS has actually said that anyone transferring on to universal credit will be protected and will not be worse off in cash terms?