Benefit Sanctions

Debate between Cheryl Gillan and Eilidh Whiteford

Wednesday 16th December 2015 Westminster Hall

[Mrs Cheryl Gillan (in the Chair)]

May I remind hon. Members that interventions are supposed to be short and pithy?

[Dr Whiteford]

The hon. Gentleman makes an important point about employment and support allowance. I was particularly addressing the universal credit figures, on which, at the moment, the data are lacking, although I believe that in August the UK Statistics Authority called for those data to be published, along with data on actual numbers of sanctions applied. Will the Minister tell us when the Government plan to publish those figures?

The wider issue about the move to universal credit is that it introduces critical differences to the conditionality regime that applied for JSA. First, under universal credit, sanctions run consecutively, not concurrently, so they will potentially be much longer. Also, any hardship payments made are repayable, so if, for example, someone is repaying a hardship payment at the rate of 40% of their benefit, their sanction will effectively become three and a half times longer in real terms than its nominal length. That seems unduly punitive. Moreover, the 80% hardship rate for vulnerable claimants will be abolished under universal credit. Again, given what the Government have already said about recognising the needs of vulnerable claimants, they really should go back to the universal credit changes and look at how they are going to impact on people.

Hardship payments are not made automatically. People need to know that they exist, whether they are eligible for them, and how to apply. My hon. Friend the Member for Ochil and South Perthshire (Ms Ahmed-Sheikh) has introduced a ten-minute rule Bill, which we are due to debate early in the new year, that would make hardship payments automatic and non-repayable. In the wake of the Oakley review, the Government accepted in principle the need to: make hardship payments available from day one of a sanction; remove the requirement for those who are vulnerable or have children to complete a separate application process; and extend vulnerability markers. Given that acknowledgement that there are vulnerable people in the system, that people are being sanctioned who are not really in a position to comply with the conditions placed on them, and the growing evidence that those claimants are at much greater risk of sanctioning, will the Minister look at this again as universal credit is rolled out more widely?

The rate of sanctions for those in receipt of ESA is very much lower than for JSA, but it is nevertheless a serious issue. We would expect ESA sanctions to be less prevalent, but one of the deeply worrying issues that emerges from the figures released by the DWP in November is that around half of the ESA sanctions imposed between April and June this year were on claimants who had previously been sanctioned. That makes it crystal clear that sanctions are not having a deterrent effect on sick and disabled claimants; rather, it suggests that people are simply unable to comply with the conditions imposed on them. That echoes case studies in the Crisis research, which showed that when sanctioned claimants on ESA had support from professionals, they were subsequently assigned to the support group.

One of the key issues that emerged from the Crisis research with service users was that overall, 21% of respondents who had been sanctioned said that they became homeless as a result of the sanction. The Government have to take that extremely seriously. If someone becomes homeless, it becomes significantly more difficult for them to find work. Communication becomes difficult if someone does not have a stable address, reliable internet access, and cannot present themselves in a smart and work-ready way. It also puts untold pressure on relationships with family and friends. Indeed, it puts financial pressure on family and friends who are trying to support loved ones but might not have the means to do so. It also has a very costly knock-on effect on local authorities, which have statutory responsibilities in such circumstances but also face significant financial pressures.

A critical and perennial problem is that sometimes when a person is sanctioned their housing benefit is also stopped. I know that it is not supposed to happen, and the Government claim that it no longer happens, but very recent research makes it clear that it is still happening. The issue was highlighted in the Oakley review back in 2014, and the Government responded by advising claimants to keep local authorities informed of their situation. They also said that they would implement an IT fix. When the previous Employment Minister appeared before the Work and Pensions Committee in February, prior to the election, it was suggested that the problem had been resolved, but it had not. In early October, DWP issued an urgent circular to local authorities confirming that sanctioned claimants should continue to receive housing benefits without interruption.

It is clear that there has been an ongoing problem that has not been resolved. That is backed up by the evidence in the Crisis report: more than a third of those it surveyed who claim housing benefit reported that it was stopped when they were sanctioned. That rate rose to 38% for those in the ESA work-related activity group—that is, those people currently not fit for work and in an inherently vulnerable situation. It is clear that not all councils’ systems have caught up with the new guidance yet, and it is still a bit of a lottery. This has been happening for a long time now, and the Government really need to get a grip of the issue. Will the Minister update us on that, and tell us what the Government are going to do to protect vulnerable claimants who face housing benefit cuts?

It is important to understand that for many people in rented accommodation, housing benefit or local housing allowance will not cover all their rent in the first place. Many people in private rented accommodation make up the rent out of their JSA or ESA, and some folk in social housing will be liable for the bedroom tax—although thankfully not in Scotland. In a lot of cases, sanctioning is pushing people into arrears, even where the system is working as the Government intend it to.

It is abundantly clear that the sanctions regime is causing real hardship for the most vulnerable people. The Crisis report lays out in very stark terms the extent to which some claimants find it immensely difficult to comply with the conditions placed on them. It is really notable in the research findings that the overwhelming majority of claimants want to work and have every intention of meeting their responsibilities, but simply cannot always meet the demands placed on them. Sanctions need to be reasonable, proportionate and fair, but for those who face the biggest hurdles, the current regime is none of those things.

No one should be made destitute because of the conditionality regime. That is not an acceptable outcome in a civilised and wealthy society. Neither is it a proportionate response to minor infringements, which are often the result of circumstances beyond the control of individuals. Only one in 50 people who are sanctioned is sanctioned for refusing a job. That seems like a heavy burden for people who have made minor infringements. They can potentially lose their homes and any means of supporting themselves. All Members know that we are witnessing destitution in too many communities. People are simply falling through the safety net, and at this stage we have no way of quantifying how many people simply fall out of the system altogether. I have seen them in my constituency, and they tend to be sick people who have long-term health conditions, but we have no systematic information. It is clear that we need a root-and-branch review of the sanctions regime and, as a matter of urgency, we need hardship payments to ensure an accessible safety net.

I am really conscious that it has been a balmy 12° to 15° here in London over the past few days, but I left Aberdeenshire this weekend in sub-zero temperatures. As winter sets in, those who cannot stay warm and cannot feed themselves properly are at the gravest risk. The Government are culpable if they do not protect our most vulnerable citizens. I urge them to listen and to respond to the specific points I have made. I thank the Members who have come to contribute to this very important debate so close to the end of term.