Welfare Reform (Sick and Disabled People)

Debate between Alan Reid and Sheila Gilmore

Thursday 27th February 2014 Commons Chamber

[Mr Reid]

The hon. Lady’s question is based on the wrong premise. I actually voted against the bedroom tax. As I said in my introduction, I did not support every detail of the Government’s proposals.

It is interesting to note all the opposition from Labour Members to everything the Government are doing. I look forward to hearing what the Opposition spokesperson says about this later, because I understand that Labour do not propose to spend any more on welfare payments than the Government are doing. It will therefore be interesting to hear what the official Labour line is, as opposed to all the complaints that we are hearing from its Back Benchers.

As well as tackling the economic mess that Labour left behind, Liberal Democrats in government have blocked the excesses that a Conservative-only Government would have implemented. For example, we prevented the Conservatives from freezing disability benefits. Instead, they are going up by 2.7% this year. Assessment of applications for disability benefits is an integral part of welfare reform, and this Government have improved on the system left behind by Labour. Thanks to Liberal Democrat amendments to Labour’s Welfare Reform Act 2007, the Government are required to conduct five annual independent reviews of the work capability assessment. In government, we are now acting on those reviews to improve the system. Professor Harrington completed the first three reviews, and found that our efforts to improve the WCA were making a difference.

[Sheila Gilmore]

For the purposes of putting the record straight, the requirement for independent assessments of employment and support allowance was in the original legislation, pre-2010.

[Mr Reid]

I did not catch the year that the hon. Lady mentioned. The WCA was introduced by the Labour Government, and this Government have improved on it.

Following Professor Harrington’s reviews, the Government gave Department for Work and Pensions decision makers more flexibility to request additional evidence, such as a letter from an applicant’s consultant. The fourth independent review was completed in December 2013 by Dr Litchfield. He found that the DWP had made good progress on implementing recommendations from the previous reviews, which have made notable improvements. However, despite all the improvements to the system, and having a system that looks fine in theory, we all know from our constituency work that, in practice, Atos has failed miserably to carry out the assessment contract. Appeals have been upheld for 40% of the original decisions. That shows that there is something wrong with the initial assessments and that more improvements to the assessment system must be made.

We are all aware from our constituency case load of people waiting for many months for their assessment to be carried out. That applies to assessments for personal independence payments as well as for work capability assessments. The limit for PIP assessments is supposed to be 30 working days, but Atos is clearly failing miserably to meet that target. I was contacted recently by the Bute Advice Centre in my constituency. It pointed out that it, and the client, have three weeks from the initial phone call in which to complete and return the application form. The centre and the client have met the deadline on every occasion, but then the long wait begins. One client who has been waiting since 2 July 2013 has heard nothing from Atos. Two other clients on Bute have been waiting since early October. The advice centre tells me that phone calls to the Department for Work and Pensions get a helpful response, but the DWP puts the blame on Atos, and from Atos there is complete silence. That is utterly unacceptable.

Another constituent has e-mailed me to say that her current employment and support allowance claim started last May and she submitted her medical questionnaire in July. After many months of waiting, she was eventually told by Atos that her work capability assessment would be conducted two days after her contribution-based ESA ends if she is placed in the work-related activity group. Such delays make complete nonsense of the system.

It is true that any benefit awarded will be backdated but, as my constituent points out, a claimant may have been eligible for the support group at the time of their application. If their health improves over the year, they may be placed in the work-related activity group backdated to the time of their application, yet if the assessment had been conducted quickly, they may have been placed in the support group. If the person has savings, their ESA will stop after a year, and that may well be before it has even started to be paid. That just makes nonsense of the system.

The long delays are very unfair to claimants, putting them under increased financial pressure and stress. Their suitability for work could be wrongly assessed as the assessment is completed such a long time after the application was made.

As I have said, the system looks fine in theory, and the Government have made improvements, but Atos has clearly completely failed. As we all know, it has announced that it wants to throw in the towel. The Government must get the mess created by Atos’s abject failure sorted out as a matter of urgency, appoint a company that can do the job properly and get the backlog cleared as quickly as possible. People applying for disability benefits deserve their application to be assessed speedily and accurately.

East Coast Main Line Franchise

Debate between Alan Reid and Sheila Gilmore

Thursday 20th June 2013 Commons Chamber

[Sheila Gilmore]

I think the important thing to bear in mind is that the service is not failing in the ways the Minister said it was. If a Government propose a policy, it has to be based on the right evidence and not on an inaccurate interpretation of the situation.

Let me now talk about what East Coast does with its profits. In the previous debate, my hon. Friend the Member for Middlesbrough pointed out that whereas private operators are obliged to pay dividends, public operators can reinvest all their profits back into the service, which in East Coast’s case has amounted to more than £40 million since 2009. One of the criticisms that has been made in the past and might still be levelled now at a public operator is that, because the dead hand of bureaucracy lies on it, such an operator cannot be as efficient and as fleet of foot as a private sector operator, but it is true to say that East Coast is organisationally distinct from the Department for Transport. It is staffed by railway professionals and is therefore able to take the best of a private sector company in terms of efficiency, innovation and entrepreneurialism, but because it is in the public sector, any profits it makes are available to the Treasury and all of us as citizens of this country and taxpayers.

I am concerned that talking down East Coast to justify the proposed refranchising will damage morale at the company. That is most unfair, because staff and management have worked extremely hard and achieved good results, with 1 million extra passengers carried in 2012 compared with 2009 and record passenger satisfaction. I hope that, when he responds to the debate, the Minister will correct his remarks on punctuality and premium payments; acknowledge that East Coast reinvests all its profits and can emulate private sector efficiency; and congratulate staff and management on East Coast’s success. I think that that will be an important message to send back to the work force.

Given East Coast’s success, it makes no sense to prioritise its reprivatisation while other long-distance operators are being offered long extensions. Under the Government’s initial franchising timetable, the new west coast main line contract was due to start in October 2012. Under the new timetable, and as a result of prioritising East Coast, the current operator of the west coast main line, Virgin, will be offered a total of four and half years of extensions up to April 2017. Similarly, for the new Great Western contract, which was meant to start in April this year, the operator, First Group, is being offered three years of extensions up to July 2016.

Let us look again at another reason the Minister gave for prioritising the east coast main line over others. He said that the line

“connects industries in the north with commerce in the south, provides cross-border services to Scotland and helps to drive the development of tourism and the success of Edinburgh and Leeds as key financial centres outside London. That is why it is at the forefront of our new rail franchising programme”.—[Official Report, 5 June 2013; Vol. 563, c. 252WH.]

I accept all those things, although many of them can be said about other rail lines.

It is important for business that we have a good, strong railway service on the east coast main line. I am regularly accompanied on my weekly commute by an increasing number of business travellers, many of whom work in my city’s sizeable banking sector. Those people have often been attracted away from short-haul flights by East Coast’s excellent new first class offer, which in the long term could benefit our environment. Business travellers are also attracted by the new services that have been introduced, including a later evening service and an earlier morning service, which enable people who want, or have, to travel to London for business meetings to do so by rail in a way that was not possible before.

However, the west coast main line and the Great Western line are also important for business. The west coast main line connects five of the seven largest conurbations in Britain, and Great Western serves Bristol, Cardiff and the prosperous Thames valley, so the claim that the Government have decided to prioritise the east coast main line because of its importance to business does not really stack up—at least, it is not a reason for prioritising the east coast main line over the other services that were previously due for refranchising.

By deferring proper franchise competition on these other lines in favour of extensions, the damage done to business on those routes could well outweigh any benefit accrued by prioritising the reprivatisation of the east coast main line, because extending those franchises involves little or no competition. It is likely to cost franchises a lot while failing to deliver any improvements in service.

It also leaves the Government in a weak bargaining position with the franchise operators by offering them those franchises without competition. After all, one of the reasons the Government would no doubt give for wanting to franchise is to have competition that would drive innovation and improvement. However, as far as the other lines are concerned, it is more or less a case of giving the operators an extension.

The only bargaining chip that the Government appear to have is to call in East Coast’s parent company, Directly Operated Railways, presumably as some kind of threat to the franchise operator, so that if it does not settle for a reasonable sum the line might be given over to Directly Operated Railways. That seems rather odd, from a Government who are telling us that they do not want rail lines to be operated in that way.

[Mr Alan Reid (Argyll and Bute) (LD)]

I have been listening carefully to the hon. Lady’s argument, but I am afraid that I have lost the thread a bit. Will she clarify whether she is opposed to the refranchising of the east coast main line in principle, or does she simply want it to be held back for a certain length of time so that other franchises can be retendered, which is what she seems to be arguing for?

[Sheila Gilmore]

rose—

--- Later in debate ---

[Mr Alan Reid (Argyll and Bute) (LD)]

The east coast main line is vital in providing connections between Scotland, north-east England, Yorkshire, eastern England and London. Liberal Democrats in government are delivering a massive investment in rail infrastructure and are determined to put passengers at the heart of the railway system. That is why, as part of this coalition Government, we are investing £240 million in the east coast main line between 2014 and 2019.

On 25 March, the coalition Government announced that the franchise for the east coast main line is due to be returned to the private sector in February 2015. Officials from the Department are meeting interested parties, including Transport Scotland, to ensure that future changes to the east coast main line are co-ordinated successfully. Part of the programme will be the establishment of new vehicles for the inter-city east coast franchise, which will replace the existing set of diesel-powered high-speed trains from 2018 onwards.

It is true that under the nationalised operating company, there has been an extended period of successful operation, but—

[Sheila Gilmore]

Will the hon. Gentleman confirm that the new rolling stock is not linked to the refranchise?

[Mr Reid]

The Government are providing the money for the new rolling stock. Yes, it is perfectly possible that if the railway was to continue under the directly operated company that new rolling stock could still be provided.

Before the hon. Member for Edinburgh East (Sheila Gilmore) interrupted me, I said the word “but”, and I want to draw the House’s attention to one of the conclusions of the Brown review. It highlighted that any significant delay in the resumption of the franchising process could have a negative effect on investments involving rolling stock, upgrades and expansion and could result in some international suppliers deciding to make alternative investments outside the UK.

In a supporting letter from Mr Brown to the Transport Secretary, dated 31 December 2012, he wrote:

“I have come to the conclusion that the franchising system is not broken, but, on the contrary, it has made a major contribution to Britain’s increasingly successful rail network. There is no credible case for major structural change.”

That demonstrates that the operation of train services indefinitely by the directly operated company is not an alternative to our system. Direct operation is a key part of the private franchising model, but it was only ever meant to be a short-term mechanism as a measure of last resort.

We heard Labour Members arguing for the continuation of the directly operated model, but the Labour party is divided. By my count, we have two votes for nationalisation for ever, one for nationalisation for an indefinite period and, from the hon. Member for Edinburgh East, one for “Don’t know”. I do not think I received an answer to my intervention, but if she wishes to clarify that I am perfectly happy to give way to her a second time. The resumption of the franchise process should take place at a speed and pace that works for the Department and allows it to make necessary improvements. That was one of the key proposals of the Brown review and is why the Department will now ensure that no more than three to four franchise competitions are delivered per year in total.

Let me conclude by reiterating the commitment from the Liberal Democrats, as part of the coalition Government, to the improvement of our railways. We and our coalition partners are determined to place the passenger at the heart of the rail system and deliver better value for money in the system following years of extreme inefficiency under Labour. That is why we are delivering the biggest investment in our railways since the Victorian era. The east coast franchise and the new vehicles that are coming with it are an important part of that investment package.

Welfare Benefits Up-rating Bill

Debate between Alan Reid and Sheila Gilmore

Monday 21st January 2013 Commons Chamber

[Mr Reid]

I want to speak in support of amendment 10, to which I am a signatory. It is important to set the debate in context. In 2010, the Government inherited an economic mess from the previous Government, including a huge budget deficit, which is why difficult decisions have to be taken. It is important to remind the Committee that just before the previous Government left office, for every £3 they raised, they were spending £4, so borrowing was going up and up. It was interesting to listen to the opening remarks of the right hon. Member for East Ham (Stephen Timms). There was a lot of sound and fury, but little actual policy. In fact, Labour’s amendment would replace the 1% in the Bill with a blank space. Labour does not seem to have any policy at all. His remarks seemed to indicate that the policy, whatever it is, would cost a lot. I think that Labour’s policy of borrow and spend is still in place.

[Sheila Gilmore (Edinburgh East) (Lab)]

Will the hon. Gentleman give way?

[Mr Reid]

I am happy to give way to any Labour Member who can tell me what their policy actually is.

[Sheila Gilmore]

I ask the hon. Gentleman to consider, in terms of what is or is not happening, that this measure is not part of what the Government came into office to do. This measure has been made necessary because they have not managed to reach the position they had anticipated they would reach, and that is because their policies have failed. Had they reached the position they had anticipated reaching, these further reductions in benefits would not be necessary.

Finance Bill

Debate between Alan Reid and Sheila Gilmore

Monday 2nd July 2012 Commons Chamber

[Sheila Gilmore]

I understand that it is in the region of £725 million. That is quite a large hole in what was presented in March—it seems a long time ago now—as a balanced Budget. That was one of the Chancellor’s key themes in his Budget speech. We now appear to be faced with something of an unbalanced Budget.

[Mr Reid]

Because the Government have made savings in other areas, the Budget is still balanced. The hon. Lady was elected on a manifesto that supported the fuel duty escalator. When did she change her mind?

[Sheila Gilmore]

It is clear from the pattern of fuel duty rises under the last Government that such things were never set in stone and were not intended to be so. One has to look at the situation with which one is faced.

Welfare Reform Bill

Debate between Alan Reid and Sheila Gilmore

Wednesday 15th June 2011 Commons Chamber

[Mr Reid]

I am extremely grateful to the Minister for that—I wish that every time I spoke for a minute I could bring about a change in Government policy.

In the few minutes remaining, I want to talk about the proposal not to pay any PIP for the first six months. What concerns me is that that will impact severely on people who have a sudden onset of a very disabling condition, such as a stroke, cancer or the loss of a limb. Thankfully, that happens only to a relatively small number of people of working age, which means that any savings the Government would make would be very small. However, for someone in that unfortunate position the first six months is often when the costs are greatest. They and their families have to adjust to the sudden reality of coping with a disability. During those months, people are often faced with extra costs such as special aids, adaptations to their homes or frequent trips to a specialist hospital that might be far from where they live. Adaptations to the home are up-front costs that need to be paid within the first six months. Depending on their condition, those people might face many other costs.

Another relevant issue is that until PIP is awarded, other benefits such as carer’s allowance are not available. Therefore, I urge the Government to look carefully at ways of taking those circumstances into account and see whether they can find a way to make financial help available for people in that position so that they can cope with the extra costs they face in the six months after the onset of the condition.

[Sheila Gilmore]

I want to speak briefly to the question of three and six months, because the Government have said that people will be able to find other forms of assistance. What they mean by that is means-tested assistance, but many people will not qualify for it, because their partner might earn as little as £7,500 a year or have—

Scotland Bill

Debate between Alan Reid and Sheila Gilmore

Tuesday 15th March 2011 Commons Chamber

[Mr Reid]

It was a product of the coalition agreement. I was in favour of the first part of the Bill; I did not like the second part, but we made a coalition agreement. The Liberal Democrats liked part 1; Conservative colleagues liked part 2, but not part 1: that is what compromise and coalition is all about.

The hon. Member for Central Ayrshire also said that people did not consider the voting system to be important. People may not be aware of the intricacies of the voting system, but the people of Scotland overwhelmingly voted in the referendum for a proportional voting system, so that is important to them. It was endorsed by the Constitutional Convention, of which the hon. Gentleman was a member, and then, as I say, by the people of Scotland in a referendum.

[Sheila Gilmore (Edinburgh East) (Lab)]

Does the hon. Gentleman agree that there is a particular problem with the party list system? Many advocates of proportional representation argue that it will make people more accountable. The experience of the system in Scotland, however, has been that some people can bounce backwards and forwards from being constituency MSPs to being top of their party list—and back again, or not—so the public has little chance of dislodging them unless the party does. Might there not be a better list system than the party list system?

[Mr Reid]

That is a fair point. I am fully in favour of proportional representation, but every electoral system can be improved. One way of improving this system would be to move from closed to open lists, which would give the electorate a choice. Another reform is also possible: if cherry-picking of constituencies by regional list Members is considered to be a problem, we can adopt the system in Wales whereby no one can stand both for a constituency and on the regional list. That would remove the problem of cherry-picking at a stroke, because there would be no advantage for a regional list Member in cherry-picking a particular constituency.