(11 months, 1 week ago)
Lords ChamberIndeed, the noble Lord raised an important point about carers, who play a vital role in our country. We are very alert to this; I will certainly take the point he raised back to the Treasury, but I am unable to comment on whether we can or cannot do it. In terms of carers, we have strong evidence that some carers would also like to take on some work if it is appropriate, so there is much work going on with job coaches, to encourage them to speak to carers to see whether it is possible for them to combine work as well as their caring responsibilities, if it is appropriate.
My Lords, the Minister says that the Government are concerned about poverty, and he describes the things the Government have done, but we have to look at the results, because I am afraid that the Government do not get to mark their own homework. If the Minister does not like the Barnardo’s study cited by my noble friend, does he like the Joseph Rowntree Foundation finding that last year a million children experienced destitution? What about UNICEF, which found recently that the world’s worst rise in child poverty between 2012 and 2019 was in the UK—the worst of the 39 richest countries in the world? Is the Minister proud of that?
I am certainly not proud of that, but, as I say, there are a number of reports that have come out, and some that have come out recently. I can only repeat again that we are aware of the pressures involved; some families find it difficult even with where they can find the next meal. We are very aware of and alert to that; I think the noble Baroness will know that we are particularly busy in looking at what more can be done to help those in absolute poverty. She will know from the Autumn Statement the measures we have taken forward, and I can only repeat again that we are very alert to this.
(11 months, 2 weeks ago)
Lords ChamberTo ask His Majesty’s Government how the Department for Work and Pensions is using artificial intelligence and what governance process is in place for such use.
My Lords, DWP has used forms of AI for some time and we continue to investigate new opportunities. This includes looking at how generative AI can help us deliver high-quality services to improve customer experience and colleague efficiency. We are aware of the transformative benefits of AI, as well as the potential risks. We have created the AI Lighthouse programme to explore opportunities, and we have a framework ensuring that we work safely, ethically and transparently.
My Lords, this Question has become topical since I tabled it, since the Government have started to take powers to look into the bank account of every pensioner in the country. But that has made me even keener to understand exactly how DWP is using AI. Can the Minister tell the House whether it is used to select people for health reassessments, or to decide who to investigate or who to sanction? If so, what safeguards are in place to ensure that it is used transparently and fairly? How do we avoid it becoming a sort of digital version of stop and search?
I hope I can reassure the noble Baroness that we already have a proven track record in delivering technology in a responsible and well-governed way. We have extended our governance to include an AI steering board and an assurance and advisory group. DWP always ensures that appropriate safeguards are in place for the proportionate, ethical and legal use of data, with internal monitoring protocols adhered to. I further reassure her that the Cabinet Office’s Central Digital and Data Office has recognised our Lighthouse programme’s safe acceleration framework as an exemplar for AI development in government.
(11 months, 2 weeks ago)
Lords ChamberMy Lords, I thank all noble Lords for their contributions to this short debate, especially the right reverend Prelate the Bishop of London for making it possible and for her introduction. I remain grateful for her continued commitment to the health and well-being of the nation, especially the most vulnerable within it, and I thank her for all she does in this respect.
Before I speak on the Motion, I would like to record my sadness at the news that Lord Darling has died. Before becoming a valued Member of this House, he was Chancellor during the global financial crash. The country was fortunate to be in the hands of someone of such ability and integrity. But as this is a DWP debate, he was also a fine DWP Secretary of State, with whom I had the privilege of working when I was a special adviser to Gordon Brown. Our country is the poorer for his passing.
As we have heard, the trigger for this debate is the Government’s proposal to close the universal credit claims of some people who fail to meet employment-related requirements. As a result, they would cease to have access to passported benefits, including free prescriptions. The noble Lord, Lord Allan, explained the rationale for a prescription charging policy, but the problem is that this is not a health policy. It is a policy that would try to use access to healthcare as a tool to enforce conditionality in the welfare state. The right reverend Prelate the Bishop of London has highlighted some of the real challenges of such an approach. As she, the noble Baroness, Lady Bennett, and others, have said, this clearly risks putting the health of some individuals at risk. It will clearly not make them any more likely to work—less likely, if anything—and it will probably end up costing the NHS more in the long run, as the right reverend Prelate’s example of asthma inhalers versus asthma attack treatment has shown.
The noble Lord, Lord Allan, is on to something on the point of this policy. I am sorry to say that I think there is an attempt to create dividing lines and say, “You do not really want to do X”. To avoid jumping into that trap, I will say for the record that we believe everyone who can work, should work. That has been the basis of Labour’s policy in the past and will be again. The welfare state was created to support those who could not support themselves, and conditionality has been part of it from the start. If people refuse to engage with the system, there must of course be consequences, but not like this. The quid pro quo is that the state should provide the help people need to get into proper, sustainable jobs, and I have real questions about how well it is doing that right now. Although that is a problem, I do not think anyone really believes that this proposal is the solution, and I think Ministers know that.
The OBR forecasts, after taking account of the Government’s plans, suggest that the employment rate will remain static, there will be 600,000 more people on sickness and disability benefits and that that will put spending up 75%. That does not sound like a plan that is likely to be effective in addressing its ostensible objective. It is hard to understand what the Government want to do with this.
In opening, the right reverend Prelate the Bishop of London said that, in her conversations with the Minister, she realised that very few people would be affected and that the media may have misreported this. To be fair, I think they were meant to report it in the way they had. I would not expect the right reverend Prelate to engage in the politics, but I simply quote from the speech made to the Conservative Party conference by the Chancellor of the Exchequer Jeremy Hunt. He said:
“It isn’t fair that someone who refuses to look seriously for a job gets the same as someone trying their best”.
It was then briefed out that the intention was to signal this as a crackdown on those who do not try very hard. The job of the Minister, for whom we all have great respect, is to say that this is one of two things: it is either a major crackdown, which potentially risks the health of many people, or it does not make much difference. I would like to know which it is, so could the Minister explain that?
The most obvious question is how many people will be affected. Has the DWP done a formal assessment of that? If so, please could the Minister share it? If it has not, why not? Secondly, as my noble friend Lord Davies asked, do we know which people will be affected? Are they young or old? Do they have children? Could they be single parents or carers? Who are they? Free prescriptions are just one of the benefits passported from universal credit. Others include dental treatment, help with travel to hospital to get NHS treatment, free school meals for kids and Sure Start maternity grants. Are those included in the same policy?
The right reverend Prelate mentioned that the Minister had indicated that most of these people will be on a nil universal credit payment and therefore would not qualify anyway. Either nobody in this position would be affected or some will be. What is the process to distinguish between them? Will that action be automatic, will a case be closed at a certain point, or will an individual assessment be made? What safeguards will be put in place to check whether people were failing to engage because of health problems, whether physical or mental? Will this need extra staff and, if so, what will that cost?
I cannot help but conclude that this policy is born of failure. Britain remains the only country in the G7 where the employment rate is still not back to pre-pandemic levels. Some 2.6 million people are now shut out of work due to long-term sickness—the highest number since records began. It is hard not to conclude that a major contributory factor is that the Government have let the NHS lurch from crisis to crisis, when waiting lists have soared to 7.8 million. More and more people over 50 are out of work due to long-term sickness. We all know that large numbers are stranded on NHS waiting lists, who are desperate for treatment or in pain. Many of those are mothers caring for older relatives or other people who are sick or disabled, and they are getting precious little help from the social care system, which still goes unreformed, despite 13 years of promises.
The right reverend Prelate said that health and work are linked, and she is absolutely right. It is quite right that health and employment policies need to be considered together, especially when we have these inactivity rates, but we need to do this in a positive, strategic way. Labour has said that we would invest £1.1 billion in the NHS to provide more appointments and get the backlog down. We would recruit 8,500 more mental health staff. We would also overhaul jobcentres, so that they can provide personalised help and work in partnership with the NHS, employers and others that can help people back into proper, well-paid, sustainable jobs. We would create technical excellence colleges, so that people get the skills that would help them get jobs in their area and then bring the skills that are needed into those areas.
That is the way forward—not a policy that grabs a few headlines but probably will not make much difference anyway. We want a proper, strategic approach to the labour market, working with the health service to help get our country back to work. The social security system is there to support those who cannot work and to help those who can work get back into work. Does the Minister not agree?
My Lords, I begin by expressing my own condolences at the loss of the noble Lord, Lord Darling. I was shocked and greatly saddened when I heard the news earlier today. He was a giant of a man, and he was extremely helpful, indeed instrumental, in helping the country through the financial crisis back in 2008 and onwards.
It is a pleasure to close this important debate which, at its heart, is about ensuring that more people who can work are supported to do so and benefit from all the rewards of work. I start by thanking all noble Lords for their valuable contributions, in particular the right reverend Prelate the Bishop of London for initiating this debate. I also thank her for our meeting earlier this week, which was greatly appreciated. Getting into work and ensuring that work pays remains a key government priority. Building on the £7 billion employment package announced in the Spring Budget, the Autumn Statement set out a further £2.5 billion investment in employment support over the next five years. This support will ensure that no claimant reaches 18 months of unemployment if they have taken every reasonable step to comply with the jobcentre support offered to them.
I will cover two or three points upfront. I was interested in the very hard-hitting speeches from the noble Lord, Lord Davies of Brixton, and the noble Baroness, Lady Bennett. They both opined about the issues of sanctions more broadly. It is fair to say that the right reverend Prelate the Bishop of London alluded to some misrepresentation in the press. I can think only that the noble Lord and noble Baroness have maybe been reading too much in the papers, but their questions were fair.
I say at the outset that conditionality supported by sanctions has been a long-standing feature of benefit entitlement and a policy of past Governments, including past Labour Governments. Claimants on work-related benefits are generally expected to take responsibility for meeting the conditionality requirements that they have agreed to with their work coach. Where a claimant fails to attend a mandatory appointment or fails to comply with specific work-related activities without good reason, an open-ended sanction is applied. Open-ended sanctions are applied from the date of the failure up until the date that the claimant complies with the agreed requirement—I will say more about this later. I am grateful to the noble Baroness, Lady Sherlock, for her general acknowledgment of this policy.
The right reverend Prelate the Bishop of London understandably asked about continued disengagement and whether the policies we are taking forward are a bit harsh—I think that is the general principle of what she said. Perhaps I can be helpful by saying that claimants are set mandatory work-related requirements based on the benefit regime that they are in. All mandatory requirements are tailored to the claimant’s circumstances and are discussed with them beforehand, as are the consequences of failing to comply. We have also hugely increased the training that job coaches have. I reassure the House that the quality of job coaches is increasing the whole time, and there is a great deal of sensitivity involved, as the House will imagine.
Following a failure to comply, the claimant has the opportunity to provide good reason. Additionally, a pre-referral quality check is in place to check for known vulnerabilities before a sanction referral is made. Following a referral, cases are reviewed to ensure that the mandatory requirement was fairly set in the first place and to check whether a conditionality easement should have been applied. Claimants will be contacted through the normal channels from the point of sanction decision. These include a digital nudge at six weeks following the decision. Where a claimant remains disengaged following an open-ended sanction, they will receive a notification at month five that will inform them of the claimant closure intention and prompt them to re-engage or to inform us of any new circumstances that may impact this.
The right reverend Prelate asked, reasonably, about the cost of living. We remain very aware of the pressures that people are facing with the cost of living. That is why we have provided £94 billion of support across last year and this year, 2023-24, to help households and individuals with the rising cost of bills. In addition, subject to parliamentary approval, working-age benefits will rise by 6.7% from April 2024, in line with inflation. The House is well aware of the Autumn Statement announcement on the local housing allowance rates, which I know will make a considerable difference.
The right reverend Prelate asked about statutory sick pay. There is a very short answer: we will absolutely continue to keep it under review. She also asked about primary legislation and timing. Although I cannot give her any precise information on the timing, I can say that it is very unlikely that we will be able to bring this forward during this Parliament. That helps perhaps to answer a question from the noble Lord, Lord Allan of Hallam.
Turning to the issue of disengagement, I should explain that for the quarter ending August 2023, 95.3% of sanctions were for universal credit claimants failing to attend a mandatory appointment with their work coach, as opposed to refusing a job interview. These sanctions are typically open-ended, as mentioned earlier, meaning that they can easily be ended at any time by the claimant re-engaging with their work coach. We know that the majority of people who have open-ended sanctions do re-engage with the support on offer within six months. However, there is still a growing number who are choosing not to engage with employment support, despite support being available to them.
It is important to place this area in the context of the Government’s wider Back to Work plan. A key part of this is about ensuring that a short spell out of work does not turn into a period of longer-term unemployment. I am sure that we all agree with that, because the longer someone remains unemployed, the harder it is for them to return to the labour market. This can have detrimental impacts on the individual, as well as the wider economy. That is why, as part of our plan, we are bringing in much more intensive back to work support earlier on in someone’s claim. This includes upskilling, job search support, practical work experience and tailored advice to support claimants. Those claimants who remain unemployed after 18 months of intensive support will undergo a review by a work coach and will be expected to either take up a job or mandatory work placement, or engage in a programme of intensive activity.
To ensure fairness to the taxpayer, it is right that there are consequences for those who refuse to engage with the support on offer. It comes back to my initial comments at the beginning of my remarks. As a result of this new approach, no claimant should reach 18 months of unemployment in receipt of their full benefits if they have not taken every reasonable step to comply with jobcentre support. The noble Baroness, Lady Bennett of Manor Castle, asked about the additional jobcentre support—the AJS. She asked whether this was even proven to work. Perhaps I can reassure her that there is good evidence to show that work is generally good for physical and mental health and well-being, whereas worklessness is associated with poorer physical and mental health and well-being. Work can be therapeutic and can reverse the adverse health effects of unemployment. This is why the AJS aims to support those closest to the labour market to return to work as quickly as possible and prevent long-term unemployment. So we do think this is a very worthwhile project. It will send a clear message to claimants who can work about engaging properly with support.
Having covered that area, I will now focus on the important points that were raised about claim closure. I would like to, I hope, give some reassurance, and dispel a few myths which were put about. I listened carefully to the remarks made by the noble Lord, Lord Davies, whom I have much respect for. However, I am afraid that I just did not agree with much of what he said in this respect. It is important to underline that not everyone who fails to meet with their work coach is subject to a sanction. If you have good reason, you will not be sanctioned, nor will your claim be closed. The examples of “acceptable good reasons” include new or worsening illnesses, health condition flare-ups and periods of mental ill-health—which answers a question raised by another noble Lord. They also include working or attending an interview, unexpected childcare, attending the funeral of a close family member or friend, or transport failures.
Even if there is no evidence of good reason, work coaches can also apply discretionary easements, as mentioned earlier, such as domestic emergencies. When an easement is in place, we relax our requirements so that individuals will not be sanctioned, nor will the claim be closed. Still, if you do not have a good reason for a failure but you take corrective action and re-engage with the support on offer within six months, your sanction will end and your claim will not be closed.
The noble Baroness, Lady Sherlock, asked who these people were, and I hope I can help to answer that. There is a rapidly growing group of disengaged claimants, as the right reverend Prelate acknowledged, on nil award, who have had a failure without good reason and have failed to re-engage for more than six months. They have no housing or child elements attached to their claim. Crucially, this means that claimants who do have housing costs or children can rest assured that they will not be at risk of losing the income that they have come to depend on.
In addition, the people in the impacted group have not declared that they are homeless or, because they have no housing element, they are likely living with family, possibly including their parents, or their friends. We also exclude any claimant with a health condition that impedes their ability to look for or carry out work—which might play into the questions raised by the noble Baroness, Lady Bennett. It is therefore only right that we close the loophole that allows people to continue to maintain a claim without complying with any commitments.
In the remaining time, I will focus particularly on free prescriptions. This was another theme raised by the right reverend Prelate. Not everyone who is subject to a claim closure will lose access to free prescriptions. There is a variety of exemption criteria beyond receiving universal credit that would qualify an individual for free prescriptions. Claimants are entitled to help with health costs, including free prescriptions, only if they are in receipt of a monetary award of universal credit that is above zero and if their earnings in their last assessment period were below the income thresholds. Many will have stopped receiving access to free prescriptions when their claims were fully reduced by the sanction.
As always, if entitlement to other benefits is reliant solely on a universal credit claim to establish eligibility, that eligibility will cease if the claim is closed. By excluding the claimants who have more severe health conditions and vulnerabilities from sanctions, we believe that the claim closure group would likely be claiming prescriptions for only minor health conditions. I think the right reverend Prelate acknowledged this in her remarks.
There were a number of questions, particularly from the noble Lord, Lord Davies of Brixton, pressing me on the lack of support for the most vulnerable. I hope I can be a bit more helpful. A well-established system of hardship payments is available as a safeguard if a claimant demonstrates that they cannot meet their immediate and most essential needs, including accommodation, heating, food and hygiene, as a result of their sanction. In universal credit, claimants are able to apply for a hardship payment from the first assessment period the sanction reduction is applied.
The noble Lord, Lord Davies, asked about work being the best route out of poverty. He knows what my reply will be, which is that the Government are committed to a sustainable long-term approach to tackling poverty and supporting people on lower incomes. He is well aware of the expenditure that the Government are making in this area and we believe that the best route out of poverty is through work. The Government remain committed to a sustainable, long-term approach in this respect.
The noble Baroness, Lady Bennett, asked about abolishing the prescription charge. I say very briefly that the Government have no plans to abolish the prescription charge in England or to review the medical exemption qualifying list. Our policy remains to help those whose need is greatest through the rules we currently have in place.
I really ought to finish. There are a number of questions that I will most certainly answer—
I am sure that the Minister will write, but I will ask one simple question before we are timed out: how many people could be affected by this policy?
I have asked about that figure. I will need to check whether I can give it to the noble Baroness, as it is not in the public domain. It is substantial. I will write to her to give her whatever answer I can. It is a very fair question, which was also raised by the right reverend Prelate the Bishop of London. However, that is as far as I am able to go.
(1 year ago)
Grand CommitteeMy Lords, I once again thank the noble Viscount for the detail of what the statutory instrument does and does not do. It seems to me that it purely ensures that the carer support payment in Scotland is treated the same as carer’s allowance. That seems to be a good idea. I cannot see why anyone could disagree. It also seeks to ensure that there is no double claiming by playing one set of regulations off against another set. I would be grateful if the Minister could confirm my understanding of that is correct because, if it is correct, it seems very sensible. Could he come back to Parliament or write about how these regulations are being observed and give examples of success or failure? I think that to some extent his final comments cover this. I think he was referring to what had happened in the past. I am looking forward to an ongoing report about how these new regulations will help and to examples of success or failure. They need to be monitored in some way. I hope the Minister will be able to oblige as the situation evolves.
My Lords, as we have heard, this order relates to people who will be eligible for the new carer support payment, which is replacing carer’s allowance in Scotland. As the noble Lord, Lord Palmer, indicated, it covers two issues, one around benefit entitlement and the other around trying to avoid duplicate or overlapping benefits.
First, the order aims to ensure that people who get carer support payment are treated in the same way as those receiving carer’s allowance when it comes to entitlement to reserved benefits.
Three reserve benefits are named in the order, and the Minister referenced them in his opening speech: the Christmas bonus, the additional amount for qualifying carers on pension credit, and compensatory payments due in quite complicated circumstances under the HMRC tax-free childcare scheme. Is that a comprehensive list? Are there any other payments to which someone on carer’s allowance could be entitled which were not mentioned here or indeed in the order?
I start again by thanking both the noble Baroness, Lady Sherlock, and the noble Lord, Lord Palmer. This is familiar territory but I thank them for their broad support. I will attempt to answer the questions that were raised, again in no particular order.
The first question raised by the noble Lord, Lord Palmer, was simply what this order does. I tried to set that out in my opening statement but perhaps I can answer it in a different way. This particular order, and an associated negative Section 104 order, makes provision in reserved areas to ensure that the 2023 regulations are fully operational at the time of implementation. It ensures that individuals in receipt of carer support payment are treated, as I said earlier, in the same way as individuals in receipt of carer’s allowance. That might answer a question that was raised by the noble Baroness, Lady Sherlock, on the treatment. It is similar treatment but in my opening remarks I alluded to some differences that were going to come through from the Scottish Government, particularly in terms of the treatment of students. As we know, of course, there are different educational arrangements for students in Scotland compared to England. I hope I made that clear in my opening remarks, in terms of the—
Just to clarify, what I was trying to say in the question was that the Minister had identified a couple of areas—one about residence requirements, the other about students—where people who are not currently entitled to claim carer’s allowance would be able to claim the new benefit. I was asking whether it was also the other way round; is there anyone who would not be entitled to the new benefit who is entitled to carer’s allowance, and if so, whose job is it to contact them? The Scottish Government would arguably have no locus in relation to them.
I must admit—please forgive me—that I thought that was a separate question, but I remember it and I shall try to answer it at some point.
The noble Lord, Lord Palmer, asked whether the order ensures that there is no double claiming. He wanted me to confirm that there is no double claiming, double counting or duplication—and I can confirm just that. I hope that I set that out in my opening remarks as well; that is also the aim, and also comes about from the very close collaboration of working that we have with the Scottish Government and, indeed, other parties that I mentioned in my opening speech.
The noble Lord, Lord Palmer, asked about the future, as did the noble Baroness, Lady Sherlock. On learning lessons and what we will gain from this order, particularly looking north of the border, can I say two things? One is that I have no doubt that there will be a way of finding out whether the three pilots mentioned were successful, however one might define that. I confirm that it is very much a matter for the Scottish Government — so this is an enabling series of regulations, which will enable the Scottish Government in a devolved manner to do what they feel is right. But I have no doubt that there will be a way in which we can find out.
On the noble Baroness’s point about learning from this—absolutely, she makes a very good point. When these different regulations are made in the right and proper way for the devolved nations, we should and will be, with our close collaboration, learning from any lessons that might be beneficial for us in England.
The noble Baroness asked how people should apply for the carer support payment. The application process is a matter for the Scottish Government, and questions on this should be addressed to them. That is not entirely helpful, but it falls in line with my point, which is that this is enabling the Scottish Government to make the changes that they will take forward themselves.
I was trying very carefully to ask questions of the Minister that related to his responsibilities and those of DWP, not the Scottish Government. I was not asking about how somebody would go about applying for the new benefit. There was reference in the order and Explanatory Memorandum to people being transferred from carer’s allowance to the new benefit. Until someone is transferred, the DWP has a responsibility for them. I was asking whether they could make any contact with those to whom they are currently paying carer’s allowance or whether they were leaving that entirely to the Scottish Government.
Unless there is a ready answer to that, I think that gets into the granularity of the transfer process, and I shall need to write to the noble Baroness to give her some proper information on that. Again, I make the point that there is a close collaboration between the UK and Scottish Governments. It is a fair question, and I think that I need to get some granular detail on that.
The noble Baroness, Lady Sherlock, asked about impact assessments. The answer is that orders made under the Scotland Act 1998 usually do not in themselves have a direct or indirect impact, whether benefit or cost, on businesses, charities or the voluntary sector, and would not therefore have a regulatory impact assessment. This is the case for this particular order. The noble Baroness may be aware—and I just want to confirm—that this is quite usual for constitutional measures in this respect. Implementing this order is not expected to have an impact on business, charities or voluntary bodies, and there is also not expected to be a significant impact on the public sector. The appropriate impact assessments were undertaken for the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023, when these regulations were prepared. No further assessments were required, as this order is a consequence of the 2023 regulations.
I have a couple of other questions that I should like to answer, which may help the noble Baroness with one of her earlier questions. I was asked when the Scottish Government would start and complete the transfer of individuals from carer’s allowance to the carer support payment. This may be helpful—I hope that it answers the question. From February 2024, the Scottish Government will begin the process of transferring the awards of around 130,000 people getting carer’s allowance in Scotland to carer support payments—it will be initiated by them. This will include around 40,000 carers with underlying entitlement only—carers who have entitlement to carer’s allowance but are receiving another overlapping benefit instead. Case transfer is a joint project between the Scottish Government and the DWP, which we intend to complete as soon as possible, while ensuring that the process is safe and secure. Case transfer for all disability and carer benefits remains on track to complete by the end of 2025.
The noble Baroness asked about similarities and differences in eligibility between the two benefits. I covered some of that in my opening speech, but this might answer one question that she asked. No one is eligible for the carer’s allowance who is not eligible for the carer support payment. That may be the succinct answer that she was looking for.
I hope that I have answered all questions. Again, as ever—with the number of questions that the noble Baroness rightfully usually asks—I normally look, and this case will definitely look, at Hansard, to be absolutely sure that I have answered them all. In the meantime, I beg to move.
(1 year ago)
Grand CommitteeMy Lords, I thank the Minister for a very helpful introduction to these orders and particularly for explaining the background to the court cases, which will make reading Hansard for this debate a bit more comprehensible than might otherwise have been the case. I also thank my noble friend Lady Drake, to whose comments I shall return, and the noble Lord, Lord Palmer of Childs Hill, whose confidence in my determination to expose the detail and minutiae I trust will not be disappointed.
All these regulations are a product of Brexit, the gift that keeps on giving. I shall start with the draft Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023—the other way around from the Minister. As we have heard, it was prompted by two court decisions: the Hampshire court judgment, whereby the ECJ found that former employees should get at least half the value of their accrued pension benefits if their employer was insolvent before they hit pension age, and Hughes, when the High Court disapplied the cap on PPF compensation for those below normal pension age on the date of the employer’s insolvency.
These regulations amend the Pensions Act 2004 to ensure that affected scheme members receive at least the minimum level of protection due under the Hampshire judgment and remove reference to the PPF cap. Also, interestingly, they clarify how the Hampshire judgment is being implemented by providing a calculation of PPF compensation by reference to a one-off valuation, as approved by the Court of Appeal in Hughes.
As has been noted, action is needed because, under Section 4 of the European Union (Withdrawal) Act 2018, the principles of EU law will sunset at the end of this year and cease to have effect, including where the position has changed as a result of court cases, which is very relevant to us today. The purpose of these regulations is to ensure that the effects of the Hampshire and Hughes judgments will be preserved in domestic legislation. Could the Minister confirm for the record that nothing will change from the current position once these regulations take effect and the relevant EU retained law has sunsetted?
Secondly, paragraph 10.1 of the Explanatory Memorandum reports that the DWP met with a cross-section of representatives of the pensions industry to seek views on its proposed response to the Hampshire judgment. There was broad support for retaining the effects of the judgment—but anybody who has worked in government will know that “broad support” can cover quite a range of views being expressed in the room. Out of interest, was there any opposition to retaining the effects of the Hampshire judgment and, if so, on what grounds? I am just interested in who was in the room.
I have read the draft Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023, which look on the face of it to be identical to the regulations I have just discussed, but amending the Pensions (Northern Ireland) Order 2005 instead of the Pensions Act 2004. Can the Minister confirm for the record that the effect of those regulations will be the same as the other ones, but just in Northern Ireland rather than in Great Britain? When regulations are this technical, it is important for the Committee to hear from the Minister what the intention is rather than just taking my word for it—love of detail notwithstanding.
I turn to the draft Pensions Act 2004 and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023—these are not catchy titles. These regulations were also prompted by court cases. In the Allonby case—I take the Minister’s point that this is being retained only inasmuch as it relates to GMPs, not its broader findings—the ECJ found that an opposite-sex comparator was not needed to demonstrate discrimination, where that was caused by legislation. In the Walker case, the UK Supreme Court found on the basis of EU equality law that legislation could not allow occupational pension schemes to restrict survivor benefits for survivors of same-sex civil partnerships or marriages so that only contributions from 5 December 2005 matter, when these became possible.
Something the Minister said confused me a little. I think he said that the Government were restating the law to avoid and remove any ambiguity. From reading these judgments, I understood that their contents have so far been resting on retained EU law and that, when that sunsets, there will be nothing supporting them. I may have misunderstood, so perhaps the Minister could clarify that. I understood—or perhaps misunderstood —that these regulations were necessary because without them the contents of those court judgments would not be retained.
Presumably, the Government could have amended domestic law to bring it in line with all these judgments. We have had an awful lot of pensions Bills in the last year; presumably any one of them would have been a means for doing this. Can the Minister explain why that did not happen? Since retained EU law rights will sunset at the end of the year, we need changes to be made. These regulations amend the Equality Act to remove the need for an opposite-sex comparator and they amend the Pensions Act 2004 to introduce the same test for unequal treatment when members are entitled to payments from the PPF. They also amend Schedule 9 to the Equality Act 2010 to reflect the framework directive rights with which the legislation was deemed incompatible.
Will the Minister confirm for the record that the effect of these changes is to maintain the position we are in now, resting on retained EU law? Is the position of the survivors of all marriages and civil partnerships now the same, whatever the sex of either the surviving or the deceased member? Is everybody, in any civil partnership or marriage, in the same position, irrespective of the sex of those involved?
These regulations retain one form of protection, as my noble friend Lady Drake articulated, but still we are left with a significant gender pensions gap, an issue to which the House returns periodically. There are various contributory factors, including the carer penalty and the impact of the gender pay gap that means women are more likely to have lower pension contributions. What plans do the Government have for reforms to reduce the gender pensions gap more widely?
One of the contributory factors is the fact that women are less likely to be eligible for auto-enrolment, so will the Minister tell the Committee when the Government intend to implement the provisions of the Private Member’s Bill sponsored by the noble Baroness, Lady Altmann, which enabled the extension of auto-enrolment from age 18 and set contributions from the first £1 of earnings?
As far as I can tell, the draft Occupational Pension Schemes (Amendment) (Equal Treatment) (Northern Ireland) Regulations 2023 seem to mirror the provisions of the previous regulations but amend the Equal Pay Act (Northern Ireland) 1970 and the Pensions (Northern Ireland) Order 1995, instead of the Equality Act and the Pensions Act. Once again, can the Minister confirm that the effect will be the same, albeit just in Northern Ireland?
Finally, I am really interested to hear the Minister’s response to the question from my noble friend Lady Drake: given how close we are now to the end of this year, are there any other areas where DWP has been relying on retained EU law that will be sunsetted in a few weeks? A clear assurance to the Committee for the record would be very helpful on that point. I look forward to the Minister’s reply.
My Lords, I thank the three noble Lords who have spoken for their general support for these regulations. The noble Baroness, Lady Sherlock, was right when she alluded to there being an element of complexity but, if I may say so, all four of us have seen through that complexity. I appreciate the general support. Nevertheless, I am very aware that a number of questions were raised and, as ever, I will do my best to answer them, in no particular order.
The noble Lord, Lord Palmer of Childs Hill, asked about the WASPI. I understand exactly why he raised that. He will probably expect the only answer that I can give: we are not able to comment on the status of the WASPI at the moment because, as he will be aware, there is an ombudsman investigation ongoing. He has probably heard me say that in the Chamber before; I wish I could say something different, but I am afraid I cannot go any further.
I will need to read very carefully what the Minister said—hopefully it will cover all of the points, but, if not, I will drop him a note.
On that last point, the Minister mentioned the Private Member’s Bill, but my question was actually about when the Government were planning to implement its provisions—perhaps he could give me a steer on that. I would be grateful if he would read Hansard because, if he thinks that he has answered the questions, I perhaps did not shape them as precisely as I had intended. Could he have a look at that and then come back to me?
Most certainly— I am grateful that the noble Baroness has put me right on the precise question. I knew what she was asking at the time. On the timing and where we are with the rollout of the Private Member’s Bill, I do not have that to hand—actually, it has been handed to me, so perhaps I do; it is one I prepared earlier. The consultation on implementation is coming soon—I am aware that a consultation comes out of that Private Member’s Bill—but, in terms of actual dates, I am afraid I cannot go any further. But I hope that that directly answered that particular question. I feel that a letter is due. A lot of questions were asked about exactly how this should be, and I pledge to answer them all fully if I have not done so this afternoon.
(1 year ago)
Lords ChamberThe noble Lord, who has more experience in these matters than me, is quite right. My understanding is that, where an employee suffers from migraine, if the employer does not take it seriously or make certain allowances, this has a great detrimental effect on the employee. The noble Lord will know that the law says someone is disabled if they have a physical or mental impairment that has a
“substantial and long-term adverse effect”
on their
“ability to carry out normal day-to-day activities”,
including work. There is work to be done engaging more with employers to make sure they have that understanding.
My Lords, can we clear that up? The Migraine Trust has had many sufferers saying they have been discriminated against at work. Some are forced into part-time jobs or even out of work. Given that the top triggers for migraine in the workplace include lighting, noise, stress, screens—things that employers could control—is the Minister concerned that, according to a Migraine Trust survey, over half of people affected said their employer had not made reasonable adjustments for them to stay at work, even though, as the Minister has just said, the law requires them to do that? What does he have to say to that?
The noble Baroness is completely right. This follows on from my answer to the noble Lord. It is very important that employers get the message that they must make reasonable adjustments. It also brings into question whether someone should say that they are suffering from migraines when, for example, they go to an interview. Nobody has to tell their employer or potential employer that they are disabled, where that would be the right word to use. As I have said, more work must be done to ensure that employers have a greater understanding. It is of course in their interests to do so because, with that understanding, the employee’s productivity will be greater.
(1 year ago)
Lords ChamberI have listened very carefully to my noble friend and have every sympathy. It might help to know that we are looking very carefully at the descriptors for those who are disabled and who may or may not be able to return to the workplace or even take up work. Those descriptors, as part of the WCA, are being particularly considered in terms of the focus on mobility, continence and social engagement. A lot of work is going on in this area; it is being done at pace but also with a great deal of empathy and care.
My Lords, let me follow on from what the noble Baroness, Lady Browning, has very movingly said. As the noble Lord, Lord Young of Cookham, described, we are now in a position where those who are out of the labour market long-term because of ill health are the single biggest challenge facing our economy. Whenever we have this conversation, the Minister mentions different initiatives. However, as we now have 2.6 million people who are out of the labour market long-term, and we know that, for example, 23% of them want a job, that is 600,000 people who are desperate to get back to work but need appropriate help. Instead of having a series of schemes, is it not time to make sure that the core DWP, jobcentres and all the staff understand what they are dealing with when it comes to applications and to helping people to get back to work? The country needs it, and so do they.
That is exactly what we are doing. We have been recruiting at pace more experts for the jobcentres and, as the noble Baroness will know, are consulting on the conditionalities and descriptors. It is quite right that we engage with the public and other stakeholders to make sure that we get this right. She will know that the WCA focus is a more rapid matter compared to the National Disability Strategy, which is a much more long-term thing. We are taking this very seriously; she is quite right to point this out, but a lot is going on and it will lead to results.
(1 year ago)
Lords ChamberMy Lords, whether there are brackets or not, obviously I will need to go back and check myself what the website says. As I say, people move abroad for many reasons and, before they do so, I am certain that they look at all the pros and cons. It is also their responsibility to take advice and make an informed decision before they move. However, I hope it gives some reassurance that there is information—I hope it is not limited—on GOV.UK as to what the effect of going abroad will be on entitlement to UK state pensions. That is, as I say, just one factor that people will be bearing in mind when making that decision, difficult or otherwise, to move from the UK.
My Lords, to come back to Canada for a moment, this was quite an issue in the Canadian media—I am sure the Minister has read the cuttings—but is he aware that last year the Canadian media reported on a woman who got a letter from the DWP telling her that her pension was being stopped and there was no right of appeal? The reason was that she had failed to reply to a letter demanding she return a certificate proving she was still alive. It then turned out that this had happened to thousands of people, none of whom had got the letter. The Canadian media reported that the DWP blamed the Canadian postal system, but this must be a challenge: if you never get a letter, you do not know you are meant to reply to it. You cannot send the certificate back, then you get a letter telling you your pension is over and you cannot appeal, and the DWP will communicate with you only by post. Has this been resolved and how can future pensioners be sure they do not get caught the same way?
I cannot deny that the noble Baroness makes a very good point. I will certainly go back and look at the specific case she has raised. I think she is saying that it extends to others, and I will certainly look at that. As far as I am concerned, the Government should be—and I will check on this—making every communication available for individuals who are seeking to move abroad, particularly to Canada, to have as much of the correct information as possible that they need in order to make all the decisions to make that move.
(1 year, 1 month ago)
Lords ChamberMy Lords, I congratulate and thank my honourable friend Jonathan Gullis on initiating this Private Member’s Bill in the other place. I also thank my honourable friend the Pensions Minister, Laura Trott, my noble friend Lord Younger, the Lords Minister, DWP officials and the Bill team, the Public Bill Office, the Lords Library and the Lords clerks.
This Bill reflects the strong cross-party support in both Houses and continued political consensus on auto-enrolment. In that regard, I thank the noble Baronesses, Lady Sherlock and Lady Drake, whose work on the Pensions Commission recommended automatic enrolment, and the noble Lords, Lord Davies and Lord Palmer, for their speeches supporting the Bill, which paves the way for half a million younger people and at least 2.5 million older workers to build bigger pensions, particularly for the low paid. I look forward to the promised early consultation to confirm the details and timing of the regulations, which will see the provisions of the Bill implemented by all employers. I beg to move.
I thank the noble Baroness, Lady Altmann, for piloting the Bill through this House and I share her thanks to the Minister and his team, and all noble Lords who participated. Auto-enrolment is a much-loved child with more than one parent. As the noble Baroness said, the work came from the Pensions Commission, set up by the last Labour Government and on which my noble friend Lady Drake and the noble Lord, Lord Turner, served with such distinction. The coalition Government implemented it in 2012, and there has been a welcome growth as a result in the number of people saving for a pension. We can all celebrate that—but, as we noted at Second Reading, pensions adequacy is still an issue, so we need to look at continually improving auto-enrolment and addressing the question of the gender pensions gap, which remains a matter of serious concern.
This simple, permissive Bill would allow the Government to make progress in fulfilling their commitment by implementing some of the 2017 review measures, namely reducing the lower age limit for being auto-enrolled and removing the lower earnings limit. The Minister confirmed at Second Reading that the Government were still committed to doing that in the mid-2020s. Without wishing to be depressing, as 2023 begins its descent towards the sea, I wonder if the Minister can give us any hint as to whether 2024 might be the year, or is this gently rolling into the grass beyond the election?
The Opposition fully support this Bill. I thank again all those involved in proposing it and look forward to its passage.
My Lords, I, too, congratulate my noble friend Lady Altmann on piloting this excellent Bill to its final stages. As I said at Second Reading, it has the full backing of His Majesty’s Government, and I am pleased to reiterate that support today. As the noble Baroness, Lady Sherlock, has just said, the 2017 review measures will see hundreds of thousands more young workers brought into workplace pensions for the first time. Alongside this, 2.5 million existing savers will see their pension contributions grow. Removing the lower earnings limit will mean that every worker will be paying pension contributions from their first pound of earnings and benefit from an employer contribution. Overall, an extra £2 billion-worth would be saved a year.
I am grateful for the constructive scrutiny of the Bill from noble Lords on all sides of the House. I acknowledge the thoughtful interventions at Second Reading of the noble Baronesses, Lady Sherlock and Lady Drake, and the noble Lords, Lord Palmer of Childs Hill and Lord Davies of Brixton. If the House agrees to final passage today, the Government will look to play their part by consulting on how to implement the expansion of automatic enrolment at the earliest opportunity, which I hope gives some idea of the timescale to the noble Baroness, Lady Sherlock. We hope that it could be later this year. We will then report to Parliament about how we intend to proceed in accordance with the provisions in the Bill. I am very pleased that there is cross-party support for my noble friend’s Bill, and I hope that this House will agree to its final passage today.
(1 year, 2 months ago)
Lords ChamberMy Lords, I thank the Minister for repeating the Statement and for advance sight of it. The way we support sick and disabled people in this country is of huge importance, both to the millions directly affected and their families and to our country as a whole, and it says something about who we are as a nation. Labour believes passionately that everyone who can should be able to access a decent job, with all the financial and other benefits that brings. That is why we have been so concerned at the Government’s failure to address the disability employment gap over such a long time. Nobody should be shut out of the workplace when, with the right help and support, they could be working.
We are now in a position where an astonishing 2.6 million people are out of work as a result of long- term sickness—the highest number ever, and up almost half a million since the pandemic. This is a serious problem for individuals and a challenge for our country. The Government have been warned for many years now that benefit assessments are not fit for purpose and, crucially, that unless we have a proper plan to support sick and disabled people, even more people will end up stuck out of work when they do not need or want to be.
So what can be done? Our approach has been to set out some serious plans in this area: to transform back-to-work help by personalising employment support and tackling the huge backlogs in our NHS and social care; by offering an “into work guarantee” so that people can try work without worrying about losing their benefits—something that has had widespread support both from the voluntary sector and within Parliament; to make sure that employment support meets local needs by devolving appropriately to local areas; and to make sure that, when disabled people get a job, they get the support they need when they need it, not several months down the line.
By contrast, this consultation is rather small in scope. The Statement seems to suggest that the Government have decided that the main problem is that too many people who undergo a work capability assessment are classed in the higher rate, and therefore the only way to solve that is to change the criteria. We will look at the outcome of this consultation carefully but let me ask a few questions of the Minister now.
Is the sole intention of this exercise to reduce the number of people who are classed as having limited capability for work and work-related activity? If so, by how many? Is there a target? The Statement says that the current situation
“is excluding significant numbers of people from receiving employment support”.
Will the Minister tell the House whether DWP could choose to offer employment support now to people who are deemed LCWRA?
If in future more of these millions of people were classed as simply having limited capability for work, rather than in the higher area, would that make any other difference to them, as opposed to just getting employment support? Might it affect how much money they were given to live on while they were waiting to get a job? Can the Minister tell us how these proposals will address the total inadequacy of decision-making, which causes untold stress and wastes millions of pounds?
The Minister pointed out that the Government have longer-term plans. The Health and Disability White Paper outlined plans to abolish the work capability assessment altogether and replace it with a single assessment, which will be the PIP—the personal independence payment assessment. I do not want to be mean, but PIP is hardly a model of good practice: 80% of PIP decisions get overturned at tribunal, and only 2% are down to new evidence. In any case, these plans are way in the future, beyond this Parliament. If the proposals contained in this consultation will not come in until 2025, when will we possibly see the plans that will not even be considered until after the next election? Will the Minister give us some idea of when, if his Government were returned to power—I accept that it is an “if”—they would expect to see those plans come to fruition?
We need a big plan now to help sick and disabled people who want to get back to work—after all, the backlog for Access to Work payments has trebled to 25,000 since the pandemic. Where are the proposals to bring that down? Where is the plan to slash the waiting lists for those who are struggling with anxiety and depression, which is keeping them out of the workplace? Where are the plans to give help to carers to support their sick and disabled loved ones so they can get back to work?
I understand what the Minister is trying to do, but the truth is that this is tinkering around the edges of a system which is failing sick and disabled people. It is not providing the help they need and, in the meantime, our NHS and social care, on which sick and disabled people depend more than anyone, is being run into the ground. We need more than this and we need it soon.
My Lords, what a mixed message there is in this Statement. The first page of the Statement that the Minister so kindly read says how successful the Government have been in getting people back to work and in the next part it tells us how we need to get more people into work. If ever a message was mixed, that is it. It is not a good story, and the fact that it needs consultation shows that. With all this so-called success, the Statement says that the policies are, in its words, “holding back human potential” so let us have the old idea of consultation.
Flexible and home working usually require that the employee has adequate access to space and technology to safely work. This is even more the case for someone with a disability. Will the Minister say whether the Government will also commit to extra funding for the aids, adaptions and technology required to take up work- from-home opportunities?
The Minister, in rereading the Statement, is suggesting removing descriptors. Will the Government also review additional descriptors, which can impact on someone’s ability to work? At the moment, fatigue is not a descriptor. However, we know that this is a significant symptom for people with long Covid, MS and pain conditions. Sitting at a desk—we know all about sitting on the Benches here in the Lords—for long periods, even for people who do not need to leave their house, may be no less fatiguing. Will the Minister consult to make sure a safety net is kept in place?
I am concerned about the consultation on substantial risk. We know that, for many people, engagement with the DWP can create anxiety and worsen their mental health. In doing his review, will the Minister take the opportunity to get his own house in order and make employment support a positive experience and not one that has, sadly, seen so many people come to harm and even take their own lives?
Finally, in the real world, when somebody comes before someone at the Department for Work and Pensions, how consistent will the DWP be in treating them in the way they should be treated? I am worried about the balance between helping people into work and forcing people—and I do mean forcing—to give up on support for those least fortunate in society.
I begin by thanking the noble Lord, Lord Palmer, and the noble Baroness, Lady Sherlock, for their points. The way I read it is that the consultation has broadly been accepted, but I understand that a number of questions have been raised and I will do my best to answer them.
First, there is some agreement that it is very important to support disabled people and to give them every opportunity, if they are not in work, to find a way of getting into it or to prepare for it. Hopefully, there is agreement to that extent. The noble Baroness, Lady Sherlock, is absolutely right that no one should be shut out of the workplace. We are at the forefront in wanting to do more to ensure that disabled people who want to and can work are able to do so. However, some disabled people may not be able to work; we are a compassionate country and it is important to make the point that, where they are generally unable to work, the state should step in and support them, as it does at the moment.
I take issue with what the noble Baroness said about the intention and scope. We believe that it is an important measure to look at the conditionalities during this eight-week consultation, because it is important to move quickly. It is part of a whole package of measures that the Government have taken and continue to take for the disabled, which includes, as the House will be aware, the national disability strategy and the disability action plan. I will expand on that to try to be helpful. By the way, the sole intention is not to do with figures —there is no target; it is not to do with that at all; it is to look more closely at who in the disabled diaspora might be willing to work and how they can be encouraged and helped into work or preparing for work.
To pick up a point from the noble Lord, Lord Palmer, as he will know, the consultation is inviting comments on the four descriptors: mobilising, continence, getting about and coping with social engagement. As the House will know, people are referred for a WCA when they report a health condition or disability which may prevent or limit their ability to work or undertake work preparation activities. Currently, the activities do not take account of somebody’s ability to work from home, as the Statement said. We have identified some activities as the most likely to be affected by modern changes in the workplace, including working from home and better support and understanding from employers around how to overcome barriers to work for disabled people and people with health conditions. To that extent, we are moving more quickly and offering this targeted approach as part of the consultation.
On our broader support, I remind the noble Baroness that we announced £2 billion at the Spring Budget 2023 to support disabled people and people with health conditions into work, including through WorkWell and universal support. We also increased our support offer to help people move back into work when they can with additional work coach time.
I will set out some figures for the House. Roughly 700,000 new benefit claimants go through a work capability assessment each year and we are seeing around 450,000 determined as having limited capability for work-related activity. Hopefully, that gives some scope of the population we are working within. Clearly, if we helped just 10% of that cohort, around 45,000 more people per year would be placed in a group in which they would receive the necessary help to get into employment.
I do not think the Minister answered some of the questions I asked—maybe he omitted to do so. I asked about the timing and whether a shift away from the higher rate to the lower rate would have any implications for the amount of money somebody got, for example. Did he miss those questions?
This is unusual procedure. On the timing, I made it clear in the Statement that we will work through this consultation and receive the results. In terms of the results coming through, I mentioned 2025. I will certainly look at the other questions the noble Baroness raised and write to her, although I think there were probably just one or two.