Jobseekers (Back to Work Schemes) Act 2013 (Remedial) Order 2019

Baroness Bowles of Berkhamsted Excerpts

Thursday 3rd September 2020 Grand Committee

[Baroness Bowles of Berkhamsted (LD) [V]]

My Lords, I thank the Minister for introducing this order. I have read all that there is to read on this statutory instrument and I have no objection to its content or the fact that the Government are using a remedial order rather than primary legislation. This matter has dragged on for a long time and it is right that it be settled; I do not know what has taken the Government so long to start the remedial process in the first place. Nevertheless, I want to say a few things about the circumstances surrounding the issue and about sanctions more generally.

The order puts right the previous denial of a fair trial for those who had started an appeal that is still extant; it establishes that an appeal would have been won and includes a mechanism by which the Secretary of State will revise decisions so that appeals will not have to run their course, thus not wasting any more time and money. I am presuming that benefits withheld under sanctions will be repaid several years after the event, but will there be any other compensation for the harm that may have arisen as a result of benefit sanctions? This could of course include the cost of getting into debt and the consequences of harm to mental health. These are recurring themes when it comes to benefits and about which I will say a little more later.

I am not expecting an answer in the affirmative to my latter questions as this whole exercise, from the Government side, whoever it has been, seems to have been focused on cost savings and leaves the unsatisfactory situation that the law will have been applied differently simply because one party had appealed and another had not. That leaves me with a continuing distaste for retrospective law which leads to disadvantage or, in my view, legitimises the improper, for that appears essentially to be what has been achieved by the 2013 Act.

I feel particularly strongly on this issue because the sanctions imposed could have meant withholding jobseeker benefits for a considerable period of time, up to six months. I want to use some of my time to speak about benefit sanctions more generally and draw attention to a recent report of the House of Lords Economic Affairs Committee on universal credit that was published on 14 July. I am a member of that committee and I note that the chairman, the noble Lord, Lord Forsyth, is listed to speak next; he may have had a similar thought. If so, there is so much in the report that there will plenty left after I have spoken. I also wish to take this opportunity to commend the noble Lord on his leadership and willingness to tackle this and other hard subjects.

I found the evidence sessions on universal credit both harrowing and humbling. I still get choked up thinking about it. I wonder if I would have been able to navigate and withstand the difficulties experienced by many claimants, and I have enormous respect for the way that several of our witnesses not only overcame their own difficulties but took on roles helping others.

Our report found that the original objectives of universal credit are broadly correct, but that there are problems in its design and implementation that do not reflect real-life circumstances and create unpredictable incomes that are hard to manage, especially for people who do not have any savings to buffer them. If nothing else, the five-week wait makes sure that that vulnerability exists.

Although not part of the original design and in fact running contrary to their stated purpose, cuts in funding have, frankly, made the regime cruel and the cause of harm, notably in terms of child poverty and mental health. This is further exaggerated when it comes to conditionality and sanctions which, according to evidence, can end up biting in unjustified circumstances that I will paraphrase as “no real fault” of the claimant. What I found surprising was the cumulative level of sanctions that could be taken from an already inadequate income—far greater than a court would be able to apply when seeking an attachment order to a bank account, for example, and seemingly with no account being taken of what other deductions, repayment of advances or other debts had to be serviced, including those to the DWP itself. This is still going on, even though since 2017 there has been some reduction in use of sanctions and their duration. Cutbacks and sanctions have pushed people into extreme poverty, indebtedness and reliance on foodbanks. This inevitably undermines any opportunity to look for and secure work and gives rise to mental health problems, which in turn must surely rebound on society and become a drag on the public purse in other ways.

An evaluation promised by the DWP in 2013 of the impact of conditionality and sanctions on claimants’ mental health and well-being has not yet appeared, though heaven knows, the evidence is out there already from many sources. Even without sanctions, the pandemic and a more jobless environment will require new resources, so my plea to the Minister is for the department and the Government to take a more holistic view of the costs and societal effects, and of protecting mental health.