Benefit Sanctions

Beth Winter Excerpts

Tuesday 13th December 2022 Westminster Hall

[Beth Winter (Cynon Valley) (Lab)]

I, too, congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing this important debate and on all the amazing work he does on this issue. As we know, inflation is at a 40-year high, energy bills are rising, real wages have fallen for the last 13 months, the number of people living in deep poverty is increasing and we are living through a cost of living emergency. It is in that context that sanctions are being applied to people in receipt of social security benefits.

I have to start by reiterating the points made by my hon. Friend the Member for Easington (Grahame Morris). Sanctions are by their nature punitive, but continuing to operate them in such an aggressive manner in the worst cost of living crisis for a generation is actively harmful to the individuals who suffer, as my hon. Friend illustrated with horrific examples of people who have lost their lives as a result, but also to the wider economy and society. The scale of sanctions is totally unacceptable. They simply drive people into far greater debt and greater poverty, and punish people for things that are no fault of their own. People are in these situations because they may have lost their job or fallen on difficult times, and they are being punished for that. We should be supporting people in those circumstances.

It is little wonder that the Public Law Project has said that sanctions “do not work” and has referred to them as “a presumption of guilt”, or that the Welfare Conditionality project has found:

“Benefit sanctions do little to enhance people’s motivation to prepare for, seek, or enter paid work. They routinely trigger profoundly negative personal, financial, health and behavioural outcomes”.

Yet despite the overwhelming evidence that sanctions do not work, the DWP is using them more and more. Statistics from November show that more than 320,000 adverse sanctions decisions were made across the UK this year alone, up to July. The number of people subject to sanctions continues to grow. In August 2022, 115,000 people—6.5% of all recipients—were subject to them in one month. We can compare that with August 2021, when the figure was only 18,000. Like my right hon. Friend the Member for Hayes and Harlington (John McDonnell), I would be particularly interested to hear the Minister explain why there has been such an astronomical increase in the use of sanctions. Why that has happened is just beyond me.

The latest sanctions were worth, on average, £262 a month. That is nearly a third of the average UC payment. This is a full-frontal attack on universal credit recipients that must end.

In my opinion, the Government should end completely the sanctions regime, especially during this inflation and cost of living crisis, just as they did during the covid pandemic. They need to conduct a review of the impact on poverty, ill health and employment. They can also look to improve the application of easements and allow decision makers to cancel sanctions—the list goes on of measures that the Government could and should introduce.

I want to take this opportunity to say something about the deductions that are taken from almost 2.1 million claimants to repay debts. I recently submitted a written question on the issue to the DWP, which responded that 3,300 universal credit recipients in my constituency of Cynon Valley are subject to deductions for debts and overpayments. That is 52% of all recipients. A majority of those who use universal credit as a lifeline are having some taken away. People cannot afford those deductions. I back campaigners’ calls to convert them into grants or to write off the debts completely, which would be a much better solution. The Government must seriously consider those proposals, and at least adopt the Work and Pensions Committee’s recommendation that debt repayments be paused.

From the contributions today and the overwhelming evidence, it is clear that the sanctions system is ineffectual and extremely cruel to the most vulnerable people in our society, whom we should be supporting and helping. Prior to entering this place, I worked for many years as an advice worker, and I worked with lots of people who were suffering from homelessness. I also volunteered in a food bank. The number of people who had to access the service because their benefits had been stopped was unbelievable. They were people who were in work or who were suffering mental health problems. There were families. A gentleman who came in with his three children had been unable to attend his benefits appointment because one of his children was ill; he was sanctioned for two weeks. In the 21st century, that is absolutely appalling. It beggars belief.

The use of decision makers who are not known to the individuals being sanctioned is completely inhumane. I worked with a lot of older people who are digitally excluded and unable to navigate the system. People are penalised because they are excluded from a system that is, quite frankly, designed to prevent people from accessing an entitlement. That is what benefits are: they are an entitlement that people should be allowed to access.

The sanctions system completely fails to achieve its stated objective, which is to encourage compliance and people’s return to employment. It has the opposite effect, and I talk from experience: it alienates, unfairly punishes and stigmatises people. All of that has a serious detrimental impact on people’s health and wellbeing. Instead of punishing people, the Government should overhaul the social security system, so that it provides people with an adequate payment that prevents poverty—rather than pushing people into poverty, as the current system does—encourages and enables people to find employment, and treats people with dignity. The current system does not treat people with dignity.

Other measures might include the reinstatement of the £20 UC uplift and its extension to those on legacy benefits, the ending of the five-week waiting period and the removal of the two-child limit. Lots of changes could and should be made to the social security benefit system. With 40% of UC claimants in work, it is clear that wages in this country are insufficient, which is why I and many others here support the campaign for a £15 minimum wage.

The crisis that the Government’s approach is causing is the reason for the increasing calls in Wales, for instance from the Bevan Foundation, for a Welsh benefits system. The Welsh Affairs Committee has said that the Government should assess the merits of devolving the administration of benefits to Wales, as happened in Scotland. In yesterday’s Westminster Hall debate on pensions, I said that £1.7 billion of pension credit is unclaimed. The figure for unclaimed means-tested benefits is £15 billion. Some 7 million people in this country are not claiming what they are entitled to. I really wish the Government would spend more time ensuring that those people who are not claiming get what they are entitled to than punishing people in dire straits.

There are many problems with the Government’s approach, but very little interest in a solution. I would be interested to hear from the Minister why there has been such a significant increase in sanctions and what evidence the Government have that they work. All the evidence that I have seen is to the contrary. Can the Minister respond on the suspension of punitive sanctions, debt and overpayment deductions, the role of the decision maker and the question of devolution in Wales? Let me finish by congratulating again the hon. Member for Glasgow South West on securing this debate. I fear that we will revisit this issue if things do not change.