Scotland (Poverty)

Debate between Alan Reid and Anne Begg

Wednesday 30th November 2011 Westminster Hall

[Dame Anne Begg]

Those concerns are shared by all of us. It has been very difficult to get robust figures about the numbers who are being migrated from incapacity benefit on to employment and support allowance, and how many of them will fall out of the benefits system all together or find themselves on jobseeker’s allowance as an alternative. The early indication from the pilot that took place in both Aberdeen and Burnley would suggest that about 30% of those on incapacity benefit will move to JSA. That one single move is immediately a loss of £20, or slightly more, a week for that family. We do not know whether those figures are robust but we do know that, for new claimants, it is far less than that. Part of the reason why the tabloid press has managed to create the impression that there are lots of people languishing on incapacity benefit or disability benefit who do not deserve it is that they conflate the proportions who are new claimants getting the benefit with those already on the benefit but who have been migrated across. Potentially, 30% will be losing £20 or more a week.

We also know that the Welfare Reform Bill proposes to limit contributory employment and support allowance to one year. In areas such as mine and the one represented by the hon. Member for Banff and Buchan (Dr Whiteford), where it is more likely that people will live in a household with some income, because unemployment is relatively low, so a partner, husband or wife might be working, those people will lose benefits altogether because they will not qualify for the income-related benefit that would replace it. That is why 58,000 are likely to fall out of the benefits system completely. These are people who have paid into the system all their lives. They thought that, when things turned difficult for them, when something happened and they were not able to work anymore, the welfare state would be there for them and national insurance would work as the name suggests—as an insurance that they would get that contributory benefit. This Government have decided that that is not good enough and that this group will qualify only for employment and support allowance for a year. In a year, someone might have managed only to get a diagnosis. They might have only just started their cancer treatment, they might still be getting worse but not be bad enough to be in the support group, with a degenerative neurological condition that has just been diagnosed. After a year, their money will stop if they are in the work-related activity group of ESA.

[Mr Reid]

How long does the hon. Lady think that people in that category should continue to receive ESA?

[Dame Anne Begg]

Until they retire, which is what the position is at the moment. If they are in the support group, they will keep it for ever.

The hon. Gentleman’s intervention has given me the opportunity to raise something that he can discuss with his colleagues in the Department for Work and Pensions. The way that the national insurance system works is that if someone has not made a NI contribution for the previous two years, then they do not get the contributory benefit. I tabled a written question to ask what happened if someone had been in the work-related activity group for two years and then got worse, particularly if they had a degenerative illness, and found themselves in the support group. They would not have the national insurance contribution to go back on to the contributory element. Would they be able to get the ESA? The reply from the Minister was unequivocal—yes, they would be able to go back on to contributory ESA if they had moved from the WRAG to the support group after two years.

However, in correspondence with an official, some doubt has been cast on whether that is indeed the case. It is not clear from the Welfare Reform Bill, and it is certainly not clear from the debates around the Bill, whether someone who has been on WRAG for two years will get their contributory ESA back again should they get worse. This is very important for people with conditions such as multiple Sclerosis and Parkinson’s. If someone has a really bad episode and goes straight into the support group, they will be able to keep their contributory ESA for the rest of their working life, whereas, if they have a slowly progressing disease and go into WRAG for a couple of years, but then end up just as ill and disabled as the other person, they do not get it back. It seems unfair and arbitrary. The Government must get this right and be clear about it, or large numbers of people, potentially those with some of the most profound disabilities and ill health, will be disadvantaged simply because they fall the wrong side of the line when they go for their work capability assessment.