Welfare Reform and Work Bill

Amanda Milling Excerpts

Tuesday 27th October 2015 Commons Chamber

[Neil Coyle]

I want to speak about new clause 3, to which my name is attached. It was a privilege to be a member of the Bill Committee, which studied this issue in some detail. I thank the hon. Member for Beverley and Holderness (Graham Stuart)—who is no longer present—and the hon. Member for Bury St Edmunds (Jo Churchill) for speaking positively about the new clause. I hope that that is an indication of consensus that it is a necessary amendment to the coalition Government’s changes in relation to personal independence payments. I also pay tribute to my hon. Friend the Member for Sheffield Central (Paul Blomfield) and his local citizens advice bureau. They helped with the drafting of the new clause, and also provided genuine case studies of terminally ill people who are missing out on the swifter support that the new clause would deliver.

New clause 3 is designed to address a bureaucratic anomaly that has arisen since the Government began ending disability living allowance and introducing personal independence payments. New claimants of PIP who become terminally ill can access additional support swiftly, and under the DLA system, people could, on receipt of a terminal prognosis, access help swiftly. However, since PIP has begun to replace DLA under the coalition’s regulations, an issue has arisen that affects people who are already on DLA, become terminally ill, and are required to move on to PIP before they can access the additional help that the whole House seems to agree should be provided. The aim of the new clause is to enable people receiving DLA who are transferred to PIP owing to terminal illness to receive their first new payment immediately after being transferred. Currently, claimants must wait four weeks for their final DLA payment to be made, and then another four weeks to receive their first personal independence payment.

The Government have suggested that they are protecting disabled people from the worst cuts. The new clause is concerned solely with terminally ill and disabled people: people with an existing impairment or health condition, and a terminal prognosis. That is a very small group. To meet the Department’s definition of “terminally ill”, the claimant would need to provide independent medical evidence of a prognosis of six months or less to live. While it is great to have the support of the hon. Member for Beverley and Holderness for the new clause, it is slightly more disturbing that Members should suggest that only those with six months or less to live should benefit from our welfare system.

On 9 September, I asked the Department to specify the number of people on DLA who could benefit from the new clause. The response was that the information on the number of disabled people affected was “not collated” by the Department, and

“could only be provided at disproportionate cost.”

That was an incredibly disappointing response, given the nature of the people whom we are discussing.

In May this year, the DWP did publish a statistical report on registrations, clearances and awards of PIP, which indicates how many people might qualify under the new clause. As at 31 March 2015, the number of reassessments under

“special rules for the terminally ill”

was just 1,600 in two years. So that the Government can cost the new clause, let me explain that we are talking about roughly 800 people a year who are disadvantaged by current processes and who would benefit slightly from a more empathetic system: that is, disabled people who are on DLA and are moving to PIP owing to terminal illness.

Let me give the House a couple of genuine case studies. Carol is 59, lives in Sheffield, and was receiving the DLA care component at the lowest rate of £21.80 per week. On 27 May this year, following a diagnosis of terminal, metastatic breast cancer, she notified the DWP that she wanted her claim to be reconsidered under the special rules. The Department awarded her the highest rate of daily living and mobility components of PIP, worth more than £100 a week extra to reflect her new needs and her terminal prognosis. However, owing to the application of the transitional PIP rules, payment was from 8 July, four weeks after her next DLA payment. Had she been a new claimant for PIP and not already receiving DLA, the benefit would have been paid immediately. Carol lost about £240 as a result of a bureaucratic anomaly.

John was diagnosed with terminal lung cancer. He also has chronic obstructive pulmonary disease, and has had his right leg amputated below the knee. He lives in Sheffield and receives disability living allowance, with a high-rate mobility component and a low-rate care component. Under PIP, he is entitled to an enhanced rate of the care component and a high-rate mobility component. Although he discovered on 10 August that the additional help would be available, his next DLA payment was due on 2 September, and under the anomaly he did not qualify for the extra help until 30 September. We are talking about almost an eight-week delay for someone living in those circumstances.

Given the circumstances of those involved, some people affected by the change will simply not live long enough to receive the extra help to which they are entitled under existing rules. That additional waiting time was not required under DLA rules and has arisen purely as result of the introduction of PIP by the coalition Government. PIP is now being rolled out nationally and this issue will begin to affect more people in more constituencies. If Carol or John were new claimants, they would have got help quicker. When people are terminally ill, time is more pressing and more precious. John and Carol are genuine people who would, if the new clause is accepted, have a little more help for a little more time.

We discussed this issue in Committee at some length, and the Minister for Employment suggested that

“PIP recognises the unique challenges of claimants who are terminally ill.”––[Official Report, Welfare Reform and Work Public Bill Committee, 15 October 2015; c. 435.]

John and Carol, however, demonstrate how PIP has introduced an obstacle to swift support and left some people with less help. It is my understanding that that bureaucratic anomaly was an accident, as we discussed in Committee, rather than deliberate policy design, but the result is that it has delayed support for terminally ill and disabled people. The new clause would change that situation.

In Committee, the Minister also emphasised that PIP handles new cases under a fast-track system, with claims, on average, being cleared within six working days and with 99% of people going on to receive an award at a higher rate. That is welcome, but it serves to highlight the disadvantage for former DLA claimants moving to PIP, as opposed to the system for new claims, statistics for which the Minister cited. The fast-track system reflects the fact that these people have only six months to live and was meant to mirror the DLA system. The new clause would replicate the system in a way that addresses the anomaly arising from regulations and would provide equivalent support for those on DLA transitioning to PIP and new claimants.

In Committee, the Minister undertook to meet me and interested parties to address our concerns, and that meeting will be tomorrow. I am grateful for the Minister’s time but I thought there would be more of a window of opportunity for the Government to explore this issue in detail before Report and Third Reading. I understand that they may be willing to address this issue in the other place and, as I say, I am pleased to have heard positive comments from some Government Members, but a strong indication today that the Government do intend to address the issue would be very helpful. I hope they will accept the new clause or indicate how they will introduce their own mechanism to fix the anomaly caused by the PIP regulations, which leaves the most disadvantaged terminally ill people waiting while their time with family, friends and loved ones runs out.

[Amanda Milling (Cannock Chase) (Con)]

Having served on the Bill Committee, I am grateful for the opportunity to speak in this debate. I would like to focus my attention on amendments 35 to 48 relating to the benefit cap, and speak first to amendments 35, 36 and 37. In my view, it was absolutely right in the last Parliament to introduce the benefits cap, and it is right that we review its level now, as set out in clause 7. For those reasons, I do not support the amendments, which seek to keep the cap at the current level.

Many of the things I will touch on this afternoon have been covered by my colleagues, but I wish to make a few points. The benefits cap was introduced in the last Parliament to make work pay or, to put it another way, to incentivise people into work, ensuring that those people who can work are always better off doing so, rather than living a life on benefits. This was about creating fairness in the system.

[Neil Coyle]

rose—

[Amanda Milling]

I am going to make some progress.

It is morally right that people who can work are better off in work; why should someone who is able to go to work get more money on benefits than in work? There has been strong support for that argument, both nationally and in my constituency. As I have mentioned in this Chamber before, Cannock Chase is a former mining area, where there is an incredibly strong work ethic. That might go some way to explaining why people would spontaneously say to me on the doorstep that they really supported the cap. That is notwithstanding the general public’s support. A YouGov survey conducted in the previous Parliament demonstrated the strength of public feeling, with around three quarters of respondents supporting the cap.

[Emily Thornberry]

Will the hon. Lady give way?

[Amanda Milling]

If the hon. Lady does not mind, I am going to make progress.

Not only do people support the cap, but there is evidence that it is working. It is reforms such as these that have helped encourage people back into work. In my constituency of Cannock Chase, unemployment has fallen dramatically. Since May 2010, the number of people claiming jobseeker’s allowance has fallen by a staggering 70%. It is measures such as the benefits cap that have contributed to that fall. That is also evidenced by the figures mentioned by my hon. Friend the Member for Faversham and Mid Kent (Helen Whately). Since the cap was introduced, 16,000 capped households have moved into work. Further analysis shows that households subject to the cap are 41% more likely to go into work, compared with similar uncapped households. There is also evidence to show that those who are subject to the cap are doing more to find work, whether by submitting more applications or attending more interviews.

However, one of my key concerns—this can be seen nationally and in my constituency—is whether the benefits cap goes far enough. Having talked with members of the public, I had a strong sense that the cap was set too high. After all, a family going out to work would have to earn £35,000 in order to net the equivalent £26,000, as my hon. Friend the Member for Weaver Vale (Graham Evans) mentioned.

[Emily Thornberry]

Will the hon. Lady give way?

[Amanda Milling]

I am going to make progress, because I am conscious of time and the number of Members who wish to speak.

I therefore welcome the proposed reduction in the cap to £20,000 outside London and £23,000 in London, as set out in our manifesto and as included in the Bill. That is something the public support, as the general election result demonstrated. The Government received a clear mandate from the public on 7 May to introduce the benefits cap and the proposed reductions.

In my view, the benefits cap is a key measure at three levels. First, it ensures that our welfare system is fair, by making work pay and ensuring that those who can work are always better off in work than on benefits. Secondly, it ensures that our welfare system is targeted, by making sure that there is safety net for those people who most need support—the most vulnerable. Thirdly, it creates a welfare system that is sustainable, helping to get our economy and public finances on to a firmer footing and helping to reduce the deficit.

To date, the benefits cap has worked to meet those three objectives, helping to create a fair, targeted and sustainable welfare system. I believe that the measures set out in the Bill will help to deliver those further. The amendments that have been tabled would undermine that progress, so I will not be supporting them this evening.