Mesothelioma Bill [Lords]

Andy McDonald Excerpts

Monday 2nd December 2013 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Hartlepool (Mr Wright), who spoke so passionately about the situation in the north-east. Mesothelioma is a tragedy. It is a global tragedy, but in the UK alone it cuts short the lives of some 2,500 people annually. The disease has a devastating impact on all it touches, both the victims and their loved ones. It is a fatal disease, with life expectancy of between nine and 15 months following diagnosis. It is a horrendous disease, described earlier as being like a tree growing inside the sufferer, with branches reaching out. We cannot begin to understand what that must mean for them. The people of the north-east suffer greatly from the disease, as a result of the region’s history of heavy industry, including shipbuilding, coal mining and steel manufacturing.

This horrendous disease, as a number of Members have explained today, is a form of cancer caused by exposure to asbestos. It is a long-tail disease, meaning that people exposed to asbestos decades ago are only now discovering the consequence of their employers’ negligence. One of the huge problems with mesothelioma is the latency period. Someone can work in industry, perhaps for many different employers, and be in contact with asbestos either unknowingly, as was generally the case, or knowingly, as was the case in the tales recited by hon. Members on both sides of the House about young workers throwing snow balls of asbestos. Whether someone was throwing snow balls of asbestos as a young man or woman or whether they were unaware that they were coming into contact with it, the result is the same: mesothelioma 30, 40 or 50 years later.

There are individuals who feel absolutely fine and have worked all their lives—this disease mainly hits hard-working people—but then 30 years later they begin to get that feeling, like a tree growing inside them, and start to wonder where it is coming from and what has caused it. They think about their occupation and what could have created the problem, because many people were in and out of different occupations. When someone realises they have a condition, they don’t think, “This must just be mesothelioma,” but when the doctor explains that they are suffering from that disease, that really is the end of their days.

Mesothelioma is not like many other types of cancer that the NHS has proved tremendously successful in treating. The NHS can identify many different cancers at early stages and survival rates are much higher, but that does not happen with mesothelioma. When the doctor tells someone that they have the disease, they are basically saying in round about terms that their life expectancy has been cut drastically. Several Members mentioned different life expectancy rates, from between nine and 15 months to two years. Let us just say that the maximum is two years, and that is for working hard in industry and being subjected to asbestos unknowingly or knowingly.

The payments scheme will be funded by the industry through a levy on currently active insurers in the UK employers’ liability market. The scheme is intended as a fund of last resort. Claimants who are unable to trace their employer or their employer’s insurer can apply to the fund. Successful applicants will receive 75% of the average compensation. That is important to note, and I will touch on that in a few moments.

[Andy McDonald (Middlesbrough) (Lab)]

My hon. Friend touches on the very important issue of the 75% payment. Does he understand the thinking behind saying that someone is going to receive only 75% of the damages they are entitled to, with a 75% loss of their earnings but 100% being recouped by the Department for Work and Pensions? Where is the equity in that proposal?

[Ian Lavery]

There is no equity; 75% of average compensation is totally unacceptable for the individuals concerned. Huge amounts of finance will be involved, by the way—we are not talking about pennies.

The Labour party has a history of fighting for those with mesothelioma. I could spend all day and night putting on record my thanks to Members of Parliament, members of the public and organisations such as the GMB and Unite unions that have worked tirelessly to get compensation for those with asbestos-related prescribed diseases. The Labour party’s history in this area is fantastic. In February 2010, we launched the original consultation; in 2008, we introduced the mesothelioma payment scheme; and in 1979 we introduced the Pneumoconiosis etc. (Workers’ Compensation) Act 1979, which has been tremendously successful for many people suffering from, in the main, coal dust-related incidents in the north-east and across the coalfields of the UK.

--- Later in debate ---

[Ian Lavery]

Yes, they are being killed.

Why should 75% be acceptable? Someone has said that 80% would be a better figure; of course it would, but it is absolutely vital to have 100% compensation for somebody who has very little lifetime left. Claimants to the scheme have to meet the same standards of evidence and burden of proof that apply in a court action, but those with a successful civil claim will get paid 100%. Why should there be a difference?

Employers’ liability insurance is one of two compulsory insurances in the UK; the other is motor insurance. Insurers collected premiums in full and invested them for decades. The insurance companies used these finances for generations. They put the money in the bank and paid themselves dividends. People made themselves rich while at the same time stashing away the policies—hiding them, burning them, and getting rid of them. The only people who will suffer as a result are those who are set to die 30 or 40 years later due to the latency period and the activities of the insurance companies, which had the money but decided not to keep it for future generations in case something like this occurred. They paid out nothing on the untraced policies that they lost or destroyed. This could have saved the insurance companies billions of pounds, yet we are debating whether to pay these people and their families three quarters of what they are due.

Somebody said that the Minister is an honourable man who looked after honest, hard-working people, and I really do not doubt that. I appeal to him by saying that we cannot give people three quarters of what they are due and think we are being fair—that does not square the circle.

[Andy McDonald]

I think my hon. Friend shares my puzzlement that we are talking about 75% being awarded to people under this scheme, welcome though it is, because it is better that we compensate people in full. Yet when this Government go to the European Union they go into bat for an 100% uplift in bankers’ bonuses. For goodness’ sake, does that not tell us everything we need to know about the values that are at play?

[Ian Lavery]

I thank my hon. Friend. I will cover that during the next 30 minutes of my speech.

The regulatory impact assessment estimates that approximately 6,000 mesothelioma sufferers lost about £800 million in compensation due to untraced insurance. If we add the cost to victims of other asbestos-related diseases, the deal cooked up between the Government and their friends in the insurance industry represents a saving to insurers of some £1 billion. On average, the 75% figure means that individuals will lose up to £43,000 in each claim and that victims are absorbing 25% of the ongoing costs due to insurers losing or destroying their policy records.

Secondly, there is the exclusion of other diseases. Why is this about mesothelioma only? The employers’ liability insurance for which the employers paid premiums covered them for claims arising from all “bodily injury or disease”, not just asbestos-related disease, and certainly not just mesothelioma. By limiting the scheme to mesothelioma, the Bill excludes 50% of all victims. Those suffering from asbestos-related lung cancer, asbestosis and pleural thickening have been cast aside. Among other industrial prescribed diseases that might be considered—I pick this one out of the air—is baker’s asthma, a disease that is crippling for people who work in the baking industry, whereby they suffer the same conditions although it does not have such drastic problems with regard to latency and shortened life expectancy. There are all sorts of different diseases, including baker’s asthma and other asbestos-related diseases, that should be covered by the Bill. It is a decent Bill, but we do not want a decent Bill: we want a good Bill.

If the Bill included 50% of asbestos victims, that would represent just 20% of the total cost. It is not acceptable that the scheme is limited to just mesothelioma. The Government’s justification for excluding other diseases is to say that proving causation is simpler for mesothelioma, because asbestos is its only known cause. However, there is already a successful precedent, namely the Turner and Newall Asbestos Trust, which administers payments of claims for not just mesothelioma, but other asbestos-related diseases. The Bill should be extended to cover all long-tail latent industrial diseases prescribed under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979.

The third issue is the cut-off date, which has been mentioned by many Members. The cut-off date of 25 July 2012 is unbelievable, especially given that the consultation began in February 2010. I agree with my hon. Friend the Member for North Durham (Mr Jones) that the cut-off date should be 1969, which was the date of guilty knowledge.

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[Mr Anderson]

That is absolutely right. The Government are saying that they can go only so far, because the companies cannot afford more, but they are forgetting the fact that companies have received millions and millions of pounds, which they could and should have put away since 1965, in the knowledge that this might come along one day. Is not the whole point of insurance that people should save for a rainy day? Well, the umbrellas are up now.

[Andy McDonald]

Does my hon. Friend agree that we are talking about sophisticated people, who have battalions of actuaries to look at the figures, and that they would have taken into consideration the possibility of having the cut-off date as 10 February 2010 rather than later? That would have been in their thinking, so why can they not be encouraged to step up to the mark and live up to their responsibilities?

[Mr Anderson]

Those people must obviously have realised that there was a potential for that. If the consultation had lasted for a short period, it would have been that date, but without a shadow of a doubt, they clearly could have thought that it might be the start date.

My hon. Friend the Member for North Durham spoke about some of the consultations. I went to some of the meetings, which Ministers opened and then virtually handed them over to members of the insurance companies to run and to answer questions. Civil servants and Ministers were not engaged; it was people from the Association of British Insurers who answered all the questions, and it was clearly in their interests to do what they have now got away with. It is clear that the scheme will not provide full protection or full compensation.

I share the concerns of other hon. Members about the level of payment. For the life of me, whatever the cut-off date, I cannot see why the payment should be anything less than 100%. I made the point earlier that there is 100% liability on the employer and the insurer, while 100% of those with this disease have died. If people go through all the hoops they have to go through, which are the same as those in civil litigation, it is not their fault that insurers, employers or both have disappeared; the fault lies with the industry, which collectively should be putting this right. The insurers have had the premiums and have invested them, so they should pay up.

We are talking about at least 6,000 people who, between them, have lost somewhere in the region of £800 million. Compensation of 75% means that people have to absorb 25% of the ongoing costs. My hon. Friend the Member for Wansbeck said that that is at least £43,000. To somebody who is probably on the sick, and whose family is probably not working because they are taking care of them, £43,000 is a life-changing sum of money. It might not be very much to insurance companies or to some of those funded by insurance companies, but it is clearly a lot of money for people at a time of grief.

I want to pick up what has been said about the exclusion of other diseases. If people have been criminally exposed to a poisonous substance, those who did that should be brought to book, and the way to do that is to make them pay compensation. I hope that we would support that and that as the Bill goes forward we can make that case more and more strongly.

Again, why is the cut-off date not February 2010, which is when the consultation was announced? The written ministerial statement came out two and a half years after that consultation was announced. That was two and a half years of what—things gathering dust and people having discussions? What were civil servants doing? All of a sudden, there was a statement two and a half years later, followed by a discussion period to bring us to where we are now. That clearly is not fair. The minimum has to be February 2010, and I agree with my hon. Friend the Member for North Durham that if we really are serious, we should go back to 1965. My guess is that we probably will not, but we must address that issue in Committee as a matter of real urgency.

--- Later in debate ---

[Mr Kevan Jones (North Durham) (Lab)]

Many Members welcome the Bill. I welcome that a move has finally been made on compensation for mesothelioma victims, but I do not welcome the Bill in its present form. Irwin Mitchell, a firm of solicitors in Newcastle that deals with compensation cases, described this as “a second-rate Bill.” I totally agree. A lot has been said tonight on the history of mesothelioma claims. My hon. Friend the Member for Stretford and Urmston (Kate Green), speaking from the Opposition Front Bench, was clear that all the major changes on asbestos-related legislation have been made under Labour Administrations.

The hon. Member for Chatham and Aylesford (Tracey Crouch) is not in her place. She spoke well in summing up some of the issues. She admitted that she was a poacher turned gamekeeper, but her points were well made. She talked about serving on the Public Bill Committee—I am not sure whether the Whips will allow her to be a member of the Committee after that speech. She mentioned the figure of 80% and I will come back to that later on in my contribution. I take the view that in negotiations one should never declare one’s final figure at the beginning. If she is aiming for 80%, she should have started negotiating for a much higher figure. The current figure is totally unacceptable. I pay tribute to Lord McKenzie of Luton for his work when he was Parliamentary Under-Secretary of State at the Department for Work and Pensions under the previous Government, and for his work in the other place in trying to amend the Bill.

The tragedy—it is a tragedy—is that asbestos-related deaths have been known for many years, but they have been ignored. It is a cruel and painful death. I saw many cases when I was legal officer for the GMB northern region and no amount of money can compensate for suffering a long lingering death, literally gasping for air at the end, or for the pain that families go through while watching their loved ones die. My hon. Friend the Member for Hartlepool (Mr Wright) mentioned a number of cases relating to traditional industries in his constituency. One tragic case I had to deal with concerned a 44-year-old lagger—I think the proper title is thermal insulation engineer—who used to lag pipes in the shipbuilding and offshore industries. This chap, who was 43, had a wife and three young children, so it was terrible to be told that he was suffering from mesothelioma. The most tragic aspect of this case was mentioned by my hon. Friend the Member for Middlesbrough (Andy McDonald) —that it was a death sentence. This man had to face the fact that he would not live to see his children grow up or to continue the close relationship he had with his family and extended family within Hartlepool. This man was 43, but I have also dealt with cases of people who were a lot older.

Much reference has been made to the fact that the disease might take 30 or 40 years to develop, but in my experience it is quite arbitrary whether the disease develops following exposure to asbestos. I remember speaking to some old boilermakers—I am sure my hon. Friend the Member for Middlesbrough will have done so, too, in his previous life before coming here—who described dealing with asbestos as “lagging it on” and “blowing it on”. They would walk into double bottoms in ships and be surrounded by airborne asbestos, yet some of them have not developed a long-term, asbestos-related condition. I have also seen some very old gentlemen with asbestos still scarring their hands. The arbitrary nature of the disease makes it very difficult to predict who will ultimately develop mesothelioma or other asbestos-related cancers and conditions.

When I was elected in 2001, I shared an office for my first six months with my hon. Friend the Member for Midlothian (Mr Hamilton) and John MacDougall, the former Member for Glenrothes. Some colleagues may remember John—a larger than life character, a dedicated constituency MP and a former council leader. It was tragic that his career in this House was cut short by mesothelioma in 2008. John’s attitude was very positive. He knew, deep down, that he was dying, but he came back to this Chamber, even after quite aggressive surgery on one of his lungs, and maintained the cheerful and positive manner for which we all knew him. Unfortunately, he did succumb to that disease, showing that it can affect people like him who worked in the shipbuilding industry many years ago.

Much of our attention has quite rightly been focused on heavy industry, but this disease does not just affect people working in heavy industries. There are well-documented cases of people who have had very limited exposure to asbestos in hospitals or other public buildings, yet have gone on to develop mesothelioma. Again, that shows the arbitrary nature of this disease.

Personally, I think there are a lot of scare stories about asbestos. Some of the press could be labelled “asbestos deniers”, but asbestos is a safe product as long as it is not disturbed. As was said earlier, we need to educate people about how to use asbestos and how to react to it. As a minimum, asbestos should be marked on any public building. If it is not disturbed, it is not dangerous, but we must ensure that when it is removed, it is done professionally by people who know what they are doing. That should help to prevent any further damaging exposure, which is important for the future.

As I said earlier, the tragedy of this and other asbestos-related conditions is that the danger has been known for many years. Even the ancient Greeks and Romans worked out that if people worked for a while with asbestos, they developed a disease and died. Moving on to the 1930s, there was the Meriwether report, in which the term mesothelioma was first used. We have thus known from the 1930s that the condition was related to asbestos.

I know that the date of knowledge is 1965 for the purposes of the courts, but earlier cases have been documented. The Government wrote to the Confederation of Shipbuilders after the second world war, congratulating it on the work that it had done during the conflict but warning about the dangers of exposure to asbestos. However, nothing was done to protect people from those dangers. Our failure to take the warning more seriously and react to it at the time is a national scandal, and a dark stain on the nation’s history. As my hon. Friend the Member for Jarrow (Mr Hepburn) said earlier, if this had been happening in a leafy suburb, Governments would have paid attention to it more quickly, but those affected were mainly poor working-class communities in areas such as the north-east.

I pay tribute to the campaigning work of the asbestos awareness groups, which have been tenacious in ensuring that the issue has remained in the public eye. They should be given credit for the fact that the Bill has at least reached its starting point. I am not afraid to say that I think we should also congratulate the trade unions on the work that they have done for many years in raising awareness. [Interruption.] The Secretary of State accused me of chuntering earlier, but he is chuntering now. That is obviously because the modern Conservative party considers trade unions to be universally bad. However, the test cases and the education about asbestos that followed them would not have been possible without the trade unions who championed those cases, and they ought to be thanked for that.

I also pay tribute to Ian McFall of Thompsons in Newcastle, who was mentioned earlier by my hon. Friend the Member for Blaydon (Mr Anderson). I worked with him closely when I was the GMB’s legal officer, and he was very tenacious in his efforts to ensure that cases were heard and compensation was secured for people. A difficulty that used to confront me every week was caused by the fact that, in the case of many older men, it was not known that they had contracted mesothelioma until they died. It is awful to have to say to a family “There must be an autopsy to establish what this person has died of.” I remember one alarming occasion when someone rang two days before a funeral was due to take place, and Ian and I had to stop the funeral to ensure that there was an autopsy so that the evidence could be used. Ian has great expertise when it comes to compiling the history of where people worked and trying to trace the insurance companies. It is time-consuming, laborious work, but it can be done.

It is important for anyone who has worked with asbestos to make a record of where they worked with it. I pay tribute to those in GMB Northern Region who, along with their solicitors, set up an asbestos register on which people were asked to log that information. They might not have developed the disease yet, but if they developed it later, at least it would be possible to establish where they had worked. It was not uncommon for people to move around different shipyards on both Teesside and Tyneside, and before nationalisation it was sometimes very difficult to establish who their actual employer was. Another industry that proved notoriously difficult in that regard from the late 1980s onwards was the building industry, in which people moved from site to site—usually on a very casual basis—and were exposed to asbestos throughout their working lives. Trying to put together some of those long employment histories was very difficult. That is why I recommend that anyone who has worked with asbestos make sure that loved ones or solicitors know where they worked, because this disease can develop later on and that is vital information in order to be able to trace the employers and the insurers and companies involved.

My hon. Friend the Member for Hartlepool raised the issue of the north-east, as did my hon. Friend the Member for Wansbeck (Ian Lavery). The north-east has nearly 10% of England’s mesothelioma cases. That will not come as a surprise to anyone who knows anything about asbestos-related diseases, because of the north-east’s heavy engineering, coal mining, shipyards and other industries that dealt with asbestos. Between 1985 and 2005, some 2,387 people in the north-east died of mesothelioma, and that is not counting all the other asbestos-related illnesses people died from. In that period, 192 people died in Durham, 72 of them in my constituency.

I agree that it is very important to talk about the figures, but I have dealt with these individuals and have seen the awful way in which they die and the agony their families go through––and the poverty, because it is the breadwinner who goes from many of these families. I therefore know that we are not talking about people who have access to large amounts of discretionary income or expenditure. They need this compensation. It will not be a luxury for these individuals but something to support their loved ones in future.

The key thing people who are dying from mesothelioma say they want is help so they can leave money and know their families are taken care of. They want to be able to die with the knowledge that their families will be taken care of. That is not always possible. As has been said, thoroughness in these cases is very important. There are certain firms with a specialism in doing asbestos work, but I have come across some atrocious solicitors as well, who have taken on cases but, frankly, should not have been let loose on them at all.

In many cases, these individuals would not have got access to justice through the courts system if it had not been for the trade union movement. That is true not only in terms of their individual cases, but also in taking forward some of the very expensive early test cases that established the case law in this area.

That we have a Bill is welcome, but it is a very disappointing Bill. Much has been said about the insurance companies and, having dealt with them over a number of years, I can tell Members that trying to get money out of them can be very difficult, as sometimes they will try anything in order not to accept a claim, not only in these areas but in other personal injury cases as well.

The insurance companies have done very well out of this Government. They have convinced everybody that there is a claims culture in this country, which there clearly is not if we cut away from the headlines and look at all the actual evidence. They have got assistance through changes in the law that help them rather than the victims in a whole array of personal injury cases, and they are going to get off the hook again under this Bill as it stands, because, basically, what it does is cap their liability.

The estimate is £350 million. That is a large sum of money to individuals, but we also need to consider that the insurance companies have not only not paid out for these cases that they took premiums for over many years, but they have had the premiums and then failed to pay out about £800 million of claims on them. If we add it all up, £350 million is not a great deal of money.

It is also not a great deal of money if we look at the profits the insurance companies have made over the previous few years. Let me mention a few, just to give a flavour. Lloyd’s of London posted pre-tax profits of £1.5 billion between January and June 2012 and its profits for the whole of 2012 were £2.77 billion. Royal Sun Alliance had pre-tax profits of £233 million between January and June 2012. The £350 million being offered here is therefore in stark contrast to the profits that some of these companies are making.

In fact, according to the Bill, these companies will not pay the money themselves anyway, because it will be a levy that they will get from future premiums. In the other place, Lord Freud said:

“The levy will be imposed on active employers’ liability insurers at large, not on the individual insurers who took the premiums and who were on cover in the cases that will come to the scheme.” —[Official Report, House of Lords, 20 May 2013; Vol. 745, c. 691.]

So the insurance companies are not even dipping into their profits for the scheme as it stands. If that is not a good deal for them, I do not know what is. They have been in the driving seat, and the Government’s argument, certainly in the other place, has been that if we do what the hon. Member for Chatham and Aylesford wants to do—increase the compensation level to 80%—that would somehow be a show-stopping moment.

[Andy McDonald]

Does my hon. Friend agree that the insurers have already had a windfall in the form of cases that have been badly pursued—loss of services and earnings claims that have not been pursued properly—and cases that have never emerged? The insurers have already had a windfall, therefore, several times over.

[Mr Jones]

I agree with my hon. Friend. It is true that there has been bad litigation, and certain solicitors have settled for woeful amounts. Also, there are a number of people who had claims but died and never pursued them.

I find it strange that we started with a figure of 70% and ended up at 75%. The hon. Member for Chatham and Aylesford, who was not present when I started speaking, said that she would like to see 80%, but I suggest that she should have started a bit higher and worked down from there. In negotiations, people should never start at the figure they actually want, so perhaps she should have started at 95%. If she is lucky enough to get on the Bill Committee, I suggest that she start at, say, 88% and work downwards to the 80% figure that she wants. There is no rationale for the 75% figure.

The hon. Lady made a very good point about future liability. Since 1972, such insurance has been compulsory, so most future cases will be covered by insurance policies. Potentially, the next biggest area is public buildings and schools, but most such cases will not come under this scheme because it will be possible to prove who the insurer is and who is liable for the risk. It is therefore not clear to me what the 75% figure is based on. The Minister said that he will produce the various figures. It would have been helpful to have had those during the debates in the other place and today, so that we could have examined the basis of the negotiations.

As I said earlier, it seems that the insurance companies have been in the driving seat in these negotiations, which is a very strange way of negotiating on behalf of the victims, which is what I expect the Government to be doing. They will have done the modelling and know exactly the various costs involved. As my hon. Friend the Member for Middlesbrough said, we are not talking about people who do not calculate risk. They calculate risk, and they also calculate the age profiles of the groups that will be affected. I therefore find it odd that we do not have the relevant figures before us today. Again, that should not be the starting point for the insurance companies. The starting point should be to ask what the maximum compensation could be for the victims of this missed justice, and I believe that 100% is the right figure. I know that the hon. Member for Chatham and Aylesford thinks differently, but if we at least start at 100%, we might end up with a better figure than the one that is on the table.

It was also pointed out that the figure is not simply 75%, but 75% of the average. People should not expect payments that are on a par with those resulting from litigation settlements or other insurance policies. These arrangements will not be like that at all, and many of the people who should rightly get compensation because they have been affected by the disease through no fault of their own are going to be short-changed. Let us remember that the insurance companies took the premiums and benefited from them for many years. There is a debate to be had in Committee on that.

Will the Minister tell us how the negotiations have taken place? If the rules were set by the insurance companies, rather than by the Government setting down the starting point, they will have been poor negotiations because they will have started from the wrong premise. I know that my hon. Friend the Member for Blaydon wants to question the Government’s motives in this regard, and he has every right to do so, but if we are on the victims’ side, we should be trying to get the maximum compensation for them irrespective of our political party allegiance.

It is also remarkable that the insurance companies seem to have been in the driving seat in setting the date of diagnosis from which the scheme will apply—namely, 25 July 2012. Lord Freud spoke in the other place about how that decision would affect insurance companies. He said that if an earlier date were set, the levy would go up, which would be unaffordable. Like the hon. Member for Chatham and Aylesford, I would like to see the figures. How did the Government arrive at that position?

It has been pointed out that the insurance companies have known since February 2010 that this change was coming. I doubt that they are so bad that they will not make provision for this in their calculations, but the Government need to explain why that date of July 2012 has been stuck to. Was it at the insistence of the insurance companies? I guess it was, because it will limit their liabilities. Frankly, if I were them, I would be laughing all the way to the bank if I could cut my liabilities in that way.

I accept that, whenever we set an arbitrary date, there will be people who fall either side of the line, but many of those campaigning on behalf of loved ones who died from mesothelioma before that date will not get a penny out of this scheme. What is the logic in what has been decided? People have argued that it would be logical to set a 2010 date because that was when the consultation started and that it would be fair to the insurance companies to give them some warning, but that is complete nonsense. The insurance companies have known about this for years; it has not come as a surprise to them. There would at least be some logic in going back to the date of knowledge of mesothelioma, in regard to the other legal cases, because that argument has been formed in law.

When I suggested this approach earlier, the Minister intervened to say that a huge group would be included, because it would include families. There are two issues involved here. First, a number of people will have died in the intervening period, so we are not going to get any new cases from that—this is about historical cases. I accept that legacy cases could come from families who want to pursue a claim, but there will be very few of those. I have done asbestos work for a number of years and I know the detail of it. In these cases, someone needs detailed knowledge of where individuals worked and were exposed to asbestos. In addition, a lot of these people who died of asbestos-related diseases such as mesothelioma would have died without even knowing this. I find it difficult to believe that the insurance companies have not done some modelling to know what that figure could be. It would have been good for us today, and when the Bill was introduced, if someone had at least asked how many potential cases could be in that group, but that has not been asked. Again, we have just accepted that this would be onerous for the insurance companies—that may be true, but let us find out what the number is. That debate has not been had. That earlier date would be more defendable than even the 2010 decision, which would be arbitrary in that respect. I am not a lawyer, so I look to the lawyers in the room to answer whether or not people will legally challenge a date, if it is agreed, of 2012 or 2010 on the basis that the date of knowledge goes back to 1965. There is a potential there for more delay.

One thing that the Minister said in opening was that we needed to get on with this, and I do not disagree. However, as the hon. Member for Chatham and Aylesford said, it is important that we get it right because once this deal is signed with the insurance companies, there will be no going back. There will be no trying to open this up later for other cases or trying to change the scheme, because the insurance companies will be wedded to this in terms of what they want.

Housing Benefit

Andy McDonald Excerpts

Tuesday 12th November 2013 Commons Chamber

[Rachel Reeves]

I could not agree more. It is putting housing associations and local authorities in impossible situations where they potentially have to condemn housing that is perfectly fit for people to live in because people cannot afford the rent.

[Andy McDonald (Middlesbrough) (Lab)]

Can we nail the issue of dialysis, because these situations do happen? In my constituency, David Holdsworth is in renal failure and attached to tubes. He cannot occupy the same bedroom as his wife, and the other bedroom is occupied by their adult disabled daughter. They do not qualify for DHP—they have been denied it. This is more evidence of how pernicious this tax is and how out of touch this Government are with the most vulnerable in our society. [Interruption.]

[Rachel Reeves]

I thank my hon. Friend. It is a shame that of instead of just shouting that he is wrong, no Conservative or Liberal Democrat MPs came to visit today’s lobby of Parliament by people who are affected by these policies. It is also a shame that the Secretary of State is in Paris rather than listening to these stories and hearing about the impact of his policy.

Oral Answers to Questions

Andy McDonald Excerpts

Monday 14th October 2013 Commons Chamber

The Secretary of State was asked—

[Andy McDonald (Middlesbrough) (Lab)]

1. What recent assessment he has made of the performance of the Work programme.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

First, I am pleased to inform the House that the Work programme is working, and that its performance has significantly improved since being launched in June 2011. By the end of June 2012, 24,000 people had found lasting work. By June 2013, there had been a dramatic increase to 168,000. I should like to put on the record that credit must go to my predecessor, my hon. Friend the Member for Fareham (Mr Hoban), for his rigorous and meticulous work, which brought about that dramatic increase.

[Andy McDonald]

Of the 10 worst constituencies for longer-term unemployment, seven have seen the number of people out of work for more than 12 months increase, and that includes my own town of Middlesbrough. Why are the Minister’s policies failing so badly among the people and in the places that most need help?

[Esther McVey]

I am pleased to inform the hon. Gentleman that, actually, despite the picture he portrays, work is improving. There have been significant job outcomes across the country—they are up 1 million—and the claimant count is down. Inactivity is at record low levels and the number of households where someone is in work is higher now under this Government than it was in any year under the previous Labour Government.

Jobseekers (Back to Work Schemes) Bill

Andy McDonald Excerpts

Tuesday 19th March 2013 Commons Chamber

[Mr Brown]

My hon. Friend and I are of an age to remember when people were being paid pitifully poor wages, but thankfully—I will come to this in a minute—we introduced the national minimum wage when in government.

The hon. Member for Brighton, Pavilion (Caroline Lucas), who has left the Chamber, was absolutely correct to make the point that the sanctions being imposed were wholly unfair, verging on the criminal. A number of us heard yesterday about someone who was asked to report to the jobcentre and sign on as unemployed at 9.30 on a Tuesday morning. At the same time, they were asked to turn up at a new training organisation at 9.30. They went to the jobcentre and said, “Look, I can’t come at 9:30 on Tuesday morning. I’m reporting to a new trainer,” but was told, “No, you need to come here, otherwise you’ll face sanctions. You’ll need to get a letter from your new trainer.” When they went to the trainer and said, “You’ll need to provide me with a letter that allows me to avoid signing on,” they were told, “We don’t provide letters.” So individuals are being trapped and end up being sanctioned. There is no fairness in that sort of system.

I want to touch on the £130 million that my hon. Friend the Member for Wansbeck spoke about. This is the bit that really concerns me. Tomorrow, we will hear more from the Chancellor, and I am sure that Labour’s play will be for growth. As my hon. Friend pointed out, when we give money to the poorest, they go out and spend it, and it flows into and washes about in the local economy.

[Andy McDonald (Middlesbrough) (Lab)]

Does my hon. Friend agree that the only consequence of this judgment will be to put claimants in the position they would have been in had the Government not broken the law? Is it not deplorable that they now seek to use the House to change history and make their illegal actions legal? The Government broke the law and are now using the House to avoid the consequences.

[Mr Brown]

My hon. Friend is correct. It is as if time has stood still for all these people. The only thing they have felt all this time is pain and hardship.

I told my hon. Friend the Member for Coventry South (Mr Cunningham) that I would mention the national minimum wage. When we introduced it, the assessment showed that for every £1 million that we gave to poorer people and which went into the economy, we created 40 jobs. Even if every £1 million now created only 10 new jobs, that £130 million would create more than 1,000 jobs.

Housing Benefit Entitlement

Andy McDonald Excerpts

Wednesday 23rd January 2013 Westminster Hall

[Andy McDonald (Middlesbrough) (Lab)]

I too congratulate my hon. Friend the Member for Sedgefield (Phil Wilson) on securing this important debate.

One of the justifications for the changes is that they will bring about a better use of currently available housing stock and that somehow penalties for under-occupancy will force tenants to leave their homes—I stress they are homes, not houses—releasing two-bedroom properties and thereby alleviating overcrowding. The theory might get off the ground if there was evidence that such exchanges were possible and practical; but the evidence is that whereas 180,000 social tenants are allegedly under-occupying, just under 68,000 single-bedroom properties became available last year. We have heard today that it would take an age to achieve what is intended. There simply are not the properties to go round. That analysis does not even begin to take into consideration new entrants to the market. The waiting lists are considerable. The policy simply does not stack up.

In Middlesbrough the policy will have an impact on 2,410 claimants. The reduction in benefits across the piece will be something short of £1.5 million. Of course in the areas of my constituency where people are already struggling, and finding things hard, the additional burden will be the final straw for some. There will be untold misery. I heard from Citizens Advice recently about my constituent David Holdsworth, who lives in a three-bedroom property with his wife and severely disabled 33-year-old daughter. He is paralysed from the waist down and has continence issues. His wife is his full-time carer and sleeps in the spare room. Because of his disability it is not practical for her to stay with him. They have been informed that the bedroom tax will affect him, because they have a spare room. He cannot afford the cut to his benefits, and the solution that has been put to them is that he and his daughter should move into a home and his wife should move into a one-bedroom property, breaking up the family.

Another example concerns a gentleman who lives in a three-bedroom property. He is the father of triplets and his three daughters live with their mother, but during the school term they stay with him for periods in the week. One of his daughters is autistic, and he says that she needs her own room, for reasons specific to the family. According to the bedroom tax he has two spare rooms, and his benefit will be cut by nearly £30 a week.

Some weeks ago my hon. Friend and I called at the door of a lady in Pallister park in my constituency, who was living in what had been her family home. She and her husband and daughter had lived there 38 years. Her husband had passed away, and her daughter had moved on to life with a husband and family. My constituent has been told, after 38 years, that she has a spare room and must leave. In reality, that resource—that home—is used. She is a grandma and takes the two children so her daughter can go out to work. Now she is being told she must leave the house. No one-bedroom properties are available to her, so her only option is to go miles away, and disrupt that family unit totally and utterly. That is a consequence of this terrible measure.

Anxiety is an issue. Not everyone knows what is coming, but many people are getting used to the idea and are knocking on the doors of constituency offices, and going to their citizens advice bureau. The terror and worry of thinking that they will lose their home is something that hon. Members who should be in the empty seats on the Government Benches do not begin to understand.

Niall Cooper, national co-ordinator for Church Action on Poverty said:

“There is a real danger that people will be pushed into the hands of loan sharks by the housing benefit cuts…For some this will push them over the edge”.

We know where they are going with the annual percentage rates that they may face—into spiralling debt with homelessness on the horizon. This dreadful provision should be revoked immediately, and people should come to their senses before it is too late.

Welfare Benefits Up-rating Bill

Andy McDonald Excerpts

Tuesday 8th January 2013 Commons Chamber

[Derek Twigg]

I agree with my hon. Friend, who makes a valid point, and I repeat that people, families, children will be made poorer by the Bill. The Secretary of State refused properly to answer a question about the disabled issue. He would not say how many disabled people would be affected, so that is a subject to which we will certainly return.

Of course another group of people who will be badly hit are women. Some 4.6 million women who receive child tax credit, including 2.5 million working women and more than 1 million women who are caring for children while their husbands or partners are in work, will be hit by this strivers’ tax. Even the Government’s own impact assessment, which we have just got, acknowledges that that will be the case—and it is a disgrace, if I may say so, that we received that impact assessment at such a short time before this debate. Those hit by the Government’s cuts include primary school teachers, nurses and, as we have heard, many members of our armed forces who today are fighting for this country. My constituents are increasingly suffering because of the rising cost of living. The costs of food, energy and fuel are crippling many families, who are having to decide whether to buy a decent meal or to heat the house.

[Andy McDonald (Middlesbrough) (Lab)]

My hon. Friend mentions primary school teachers and nurses. Does he acknowledge the figures in last Sunday’s edition of The Observer in which chief executives of a number of organisations, including children’s societies, Barnardo’s and the National Association of Citizens Advice Bureaux, showed that a single parent primary school teacher or a nurse with two children stands to lose £424 a year by 2015 while an Army second lieutenant with three children will lose £552 a year? Those are hardly people whom we should describe as “scroungers”.

[Derek Twigg]

My hon. Friend makes a strong point: many people in work are being hit, and many of them would not usually be viewed by members of the public as those likely to be hit by such changes. Many families on low incomes in my constituency are having great difficulty finding the money to feed their families properly—even to provide proper meals every day. We know that some children are going to school hungry. The problem is so bad in Halton that two food banks have been set up, and I believe that that is a regular feature in many poorer parts of the country. To add to that, of course, are the appalling changes to housing benefit and the unfair cuts to local government funding, including changes to the treatment of council tax support, which will greatly increase the suffering in my constituency and others where the poorest and the weakest will be the most badly hit.

Frankly, the Government’s approach to welfare reform is cruel and vindictive, with cuts hitting the most vulnerable the hardest. That is said even in the Government’s own impact assessment, which acknowledges that the poorest will be hit the hardest. It is a disgrace that this is happening. I have been contacted, like many MPs, by many constituents who have suffered badly under the benefits system, who have lost benefits or who have been denied them or treated badly. In many cases, these people are in despair and at the end of their tether. We have to deal with such cases—day in, day out. It is therefore important to link that with what is happening today.

There are, of course, people who exploit the system, and they should be dealt with severely, but the overwhelming number of people involved are honest and want to work where they can. In my experience, those who can work want to work. I have heard many tales of constituents applying for countless number of jobs, but getting nowhere because jobs are either very hard to find or do not exist. Despite what the Secretary of State said, many want full-time employment. Many are being pushed into part-time employment because there are no full-time jobs for them. The Government have no coherent policy for growth and jobs. That is why people trust Labour more on jobs and growth. We have given greater priority to job creation, which is why I support our jobs guarantee.