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

Baroness Stedman-Scott Excerpts

Thursday 3rd September 2020 Grand Committee

Moved by

[Baroness Stedman-Scott]

That the Grand Committee do consider the Jobseekers (Back to Work Schemes) Act 2013 (Remedial) Order 2019.

Relevant document: 1st Report from the Joint Committee on Human Rights

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, this instrument was laid before Parliament on 5 September 2019 and has been discussed and approved in the other place. Today, I am grateful to move this forward through your Lordships’ House.

In 2013, my department passed the Jobseekers (Back to Work Schemes) Act. The Act validated sanctions and notifications issued to claimants who failed to take part in employment programmes designed to help them into work. The Court of Appeal found the Act to be an effective and valid way of achieving this but also recognised that, in a small number of very specific circumstances, some individuals had lost their right to a fair hearing under the Act.

This draft remedial order amends the Jobseekers (Back to Work schemes) Act 2013 to resolve this issue and allows the tribunals to find in favour of the claimants whose appeals were affected, where it is right to do so. It also gives my department the ability to reconsider relevant sanction decisions in these cases and to pay any affected individuals anything that they are then due. It is of fundamental importance to me that those who had appealed a sanction decision but were prevented from having a fair hearing because of the Act should have this right restored. Only a specific group of people—some 5,000 individuals—have been affected by the Act in this way. As the remedial order applies only in very particular circumstances, not all cases will lead to a payment.

My department aims to resolve these cases and make any necessary payments to these individuals as soon as it can. We anticipate that the whole process may take up to 12 months, for us to identify and pay any affected individuals. We aim to commence work on these claims in the autumn and begin reconsidering the decisions and payments. This is not just resolving this matter for the small number of claimants affected; we must also ensure that we learn the important lessons around communicating with claimants and do not create similar instances in future.

Noble Lords may be acutely aware that, in the summer, the Chancellor announced an unprecedented package of measures not only to protect jobs but to ensure that we get individuals who may have lost jobs as a result of the Covid-19 emergency back into work. I have real confidence that the digital nature of UC and its improved means of communication with our claimants via the online journal means a future Government will not find themselves in a similar situation.

The draft remedial order was laid for 60 sitting days on 28 June 2018 and then again for another 60 days last year. This was done to enable representations from Members of both Houses and the Joint Committee on Human Rights. By using a non-urgent remedial order, Parliament has been given time and the opportunity to scrutinise and consult on the order’s contents. I have considered the views of the tribunals, and this draft of the remedial order has been amended accordingly. The Joint Committee on Human Rights approved the draft remedial order earlier this year, in March, and recommended it to Parliament.

Currently, no other Bills are planned that could accommodate this specific legal objective and resolve the incompatibility. This is a way of achieving that end without repealing the Act itself, which still holds for the majority of claimants.

Although it has been a long and complex process, we have comprehensively assessed the issue and carefully considered any representations that we have received. I am keen to resolve the appeal cases for these individuals as soon as we can and to take the learnings forward as we look to support people back into work. I hope that noble Lords will support this order during its final passage through Parliament.

I am satisfied that the draft remedial order is compatible with the European Convention on Human Rights and I commend it to the House.

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[Baroness Stedman-Scott (Con)]

I thank noble Lords for their contributions today. Getting people back into work and giving them the support that they need is of the utmost importance, especially at this time. My department is dedicated to doing all that we can for these individuals.

My department is constantly learning and evolving. As the Secretary of State told the House of Commons on 29 June, claimant commitments must now reflect our “new normal”, acknowledging the reality of a person’s local jobs market and personal circumstances to prepare them for getting back into work. We are managing this with a phased approach to ensure that our work coaches can deliver an effective service in a reasonable, measured and safe way, taking into account any Covid-19 restrictions.

I will move on to the many observations made about sanctions—an issue which all noble Lords have raised. We use sanctions as a consequence of people not meeting the agreed commitments that a claimant accepts to be entitled to benefits. We always apply reasonable judgment before any actions, and take into account the current circumstances of the individual. My department’s work coaches use their judgment of what are reasonable steps. Claimant commitments must be reasonable, and in this unprecedented time they will be. Sanctions are used only if a claimant does not do what they have committed to do without good reason.

Before the start of the pandemic, sanctions were used in only a small percentage of cases, and the rate of sanctions has fallen over the last year. However, we are never complacent in our ongoing commitment to ensure that our policies are fit for purpose. That is why, in November 2019, we reduced the maximum length of high-level sanction from three years to six months, as my noble friend Lord Forsyth referred to. Data from March 2020, before suspending conditionality, shows that 2.12% of UC claimants subject to conditionality at the point where the sanctions applied had a reduction taken from their UC award. This is near the lowest on record. The latest data available following the suspension of conditionality shows that 0.73% of UC claimants subject to conditionality at the point where the sanction was applied had a reduction taken from their award.

As many noble Lords have said, the department has committed to doing an evaluation of the effectiveness of universal credit sanctions in supporting claimants to search for work in response to the Work and Pensions Select Committee report on benefits sanctions. The department will look to publish in autumn.

Noble Lords asked what “as soon as we can” means. I appreciate that we want this as quickly as possible, but the department has faced unprecedented demand on services. With an increase in claimant count of nearly 600%, we are doubling our work coaches and recruiting more and more so that we can support more people. We are having to increase the DWP estate so that we can look after people safely, with social distancing, and we have turned over every stone to increase the relationships that we are making with employers to ensure that, where vacancies exist, we can get them and put people forward for them. These are tough times and we are working very hard to support the people we are in business to support.

The noble Baroness, Lady Bennett, asked about progress reports. I need to take this question back to the department; I will get an answer to her and make sure that all noble Lords are apprised of it. She also talked about a person in Ashton-under-Lyne and gave some very alarming details about the case. If she could please let me have the details, I will ensure that that case is investigated. If other noble Lords have details of where things have apparently not worked out for people, I ask them to let me know; I give my word that it will be looked into.

Another point raised was about the unfairness of mandating people to go on employment programmes. We aim to provide individuals with the help they need to find work, stay in work and get better work, so I strongly refute that requiring people to attend programmes to help them into work is unfair. The Court of Appeal ruled in our favour on this point: attendance on these work programmes is not a breach of human rights.

I acknowledge that all noble Lords have raised points about sanctions and their impacts on people, and the noble Baroness, Lady Bennett, and my noble friend Lord Forsyth raised the point about sanctions leading to poverty and destitution and the use of food banks. We do not sanction people lightly. It is applied only where there is good reason. If people find themselves in hardship, hardship payments are available to eligible claimants to help them meet their essential needs.

The noble Baroness, Lady Bennett, raised a point about the commitment of the department and the Government to helping people back into work. I have never known a time in my working environment when I have seen such commitment in action through our Jobcentre Plus network, our partners and, in particular, our work coaches. I must say that I take the point about forcing someone into any job, but over my life I have learned that when you have a job, it is easier to get the next one. With the work we are doing on in-work progression, I can honestly say that this is the best course of action.

The noble Baroness, Lady Janke, raised a point about sanctions for not attending unpaid work placements. We do not sanction people for not attending work experience placements. If we can have more details, I will investigate that.

On who falls in the scope of the remedial order, we estimate there to be under 5,000 individuals who may be affected by this. The remedial order affects a very specific group, and we will use the appeal records to identify those people.

The 2013 Act was introduced because of the department’s defective notifications. I was asked whether we have reviewed the notifications and letters since. We have, and we are constantly revising and improving processes on sanctions.

Another question was whether the 2013 Act was unconstitutional. The Act was not only constitutional but it was necessary. It was introduced in people’s best interest and was an effective means of achieving its policy effect.

As to when people will be paid, as I have said, during this difficult time resources have had to be elsewhere, but we will begin resolving the cases impacted by the order and paying people any amounts that they are due this year.

I am sorry, but in the time available I am never going to be able to answer all the questions. After this order is dealt with, I will go back to the department with my officials and make sure that people get answers to the questions they have raised.

I recognise the importance of resolving this incompatibility as quickly as possible. It has taken time to consider and develop the best course of action. I believe that the proposed remedial order is a reasonable and lawful approach to resolving an otherwise complex issue, and I am grateful to the Joint Committee on Human Rights for its scrutiny of the matter. The remedial order process is very rarely used, but it is an effective way of correcting incompatibilities.

Finally, the Economic Affairs Committee’s report on universal credit has been published. We thank the committee for its work. We are considering the content and recommendations, and we will report back in due course. If any noble Lord wishes to discuss that report with me, they should feel free; I am very happy to meet them.

There are no arguments now to justify delaying the process. It has already been approved in the other place. I hope that the Committee will support the remedial order during its final passage through Parliament. I commend the order to the Committee.

Motion agreed.