Universal Credit: Managed Migration

Damian Green Excerpts

Tuesday 8th January 2019 Commons Chamber

[Alok Sharma]

May I just clarify, if it was not clear yesterday when we had oral questions, that the Government had previously committed to hold a debate on the affirmative regulations in relation to the managed migration regulations? That will happen in due course, and we will debate them as and when parliamentary time allows. We will of course, as we have set out previously, meet our commitment to severe disability premium recipients. We will also ensure that the start date for the July 2019 test phase involving 10,000 people is voted on.

The hon. Lady raised a number of issues. She raised the issue of vulnerable people. I hope she will have seen our response to the Social Security Advisory Committee’s recommendations, in which we set out very clearly—I am sure we will have a chance to talk about them—how we will be looking to move people across, working with stakeholders to ensure protections are in place for the vulnerable.

The hon. Lady talked about voluntary organisations. We will be working with voluntary organisations. We have already had meetings with 70 stakeholders and we have plans for further discussions. We want to design the process together with them. The timetable is as set out. We will have a pilot phase starting in July 2019. In 2020, we will then move on to volume migration.

I want to end on one point, which is that every time the hon. Lady gets up she talks about stopping the roll-out of universal credit. To be clear, we have now rolled it out across the country. If she wants to support people, she should vote with us when we bring forward support for the most vulnerable. She voted against the £1.5 billion of support. She also voted against the £4.5 billion. When the regulations are debated, she should support them and not oppose them. Let me clarify once more that we will hold a debate on affirmative regulations in relation to the managed migration regulations.

[Damian Green (Ashford) (Con)]

If the Government do proceed on a pilot basis with moving people across from existing benefits, that would be extremely sensible. Does my hon. Friend share my experience of talking to job advisers and other staff in jobcentres? They are very enthusiastic about universal credit, as opposed to previous benefit systems, precisely because it helps them to better help other people into work in ways they were not able to do before. Can he reassure me that for all the issues with transition, which we all know are there, the Government are as committed as ever to making sure this new and better benefit system is rolled out fully?

[Alok Sharma]

My right hon. Friend is absolutely right. That is the experience of colleagues on the Government Benches when we talk to people—[Interruption.] Well, I would just say to the hon. Member for Wallasey (Ms Eagle) that she ought to go out there and talk to work coaches. I would say that to all colleagues, because in my experience they are telling me that for the first time they are doing what they came into the Department for Work and Pensions to do, which is to provide one-to-one support rather than having to explain an incredibly complicated legacy benefit system where people have not been able to claim all the money due to them.

Labour Market

Damian Green Excerpts

Thursday 20th April 2017 Written Statements

[The Secretary of State for Work and Pensions (Damian Green)]

The UK labour market is a great success story for this country. The latest labour market statistics have shown that the UK employment level has risen to a near record high of 31.84 million, with the employment rate achieving a joint record high of 74.6%. In particular, the female employment rate is at a near record high of 69.9% while for older workers (50-64) the employment rate has reached a joint record high of 70.9%. The overall unemployment rate has fallen to 4.7%, the lowest rate in over a decade, alongside inactivity which is at a near record low of 21.6%. The employment rate of 16-to-24s who are not in full-time education is at 75.4%, the highest in over 12 years. The proportion of 16 to 24-year-olds year olds who are not in full-time education or employment is down to 5.1%, a joint record low.

Two planks of our approach to continuing to support people into work have been to enable older people to stay in the labour market for longer, and to support disabled people and people with long-term health conditions to move into and stay in work.

In February this year the Government published “Fuller Working Lives: A Partnership Approach”, which set out the ambition to support individuals aged 50 and over to remain in and return to the labour market and tackle the barriers to doing so. Through a combination of headline measures, Government will continue to monitor progress on “Fuller Working Lives”.

In October last year we published “Improving Lives: The Work, Health and Disability Green Paper”. This set out the action we intend to take to bring about change across welfare, employers and health systems and invited views on a 10-year strategy for reform. Since publication we have run a 15-week national consultation, which closed in February 2017. We received a great response to the consultation from a wide range of disabled people and people with long-term health conditions, and organisations with an interest.

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Workless Families

Damian Green Excerpts

Tuesday 18th April 2017 Written Statements

[The Secretary of State for Work and Pensions (Damian Green)]

On 4 April we published “Improving Lives: Helping Workless Families”, setting out this Government’s vision to improve outcomes for children who grow up in workless families and face multiple, associated disadvantages.

This Government are committed to creating a country that works for everyone. We want to create a fairer Britain where success is based on merit, not privilege, and where everyone has the chance to go as far as their talents and hard work will take them.

We have already made great steps in rebalancing society in favour of ordinary working people: the employment rate runs at a record high and unemployment is at the lowest rate for over a decade. There are now 590,000 fewer children in workless households compared to 2010.

However, despite this progress, for some families, worklessness, not employment, is the norm. In 2014-15 there were 1.8 million children in workless families across the United Kingdom, and in over eight out of 10 cases the child was in a long-term workless family. These families often face multiple disadvantages—for example, relationship distress is almost three times as prevalent in workless couple-parent families compared to when both parents are working.

New analysis shows what a profound impact worklessness and its associated multiple disadvantages can have on children’s emotional, behavioural and educational outcomes. Our ground-breaking research shows children in workless families are almost twice as likely to fail to reach the expected standard at all stages of their education. Evidence also shows how exposure to parental conflict can have long-term negative impacts on children’s early development. We must act now to break this cycle of disadvantage.

We are introducing four major new policies which will transform local services so that they can better support workless families:

The next phase of the Troubled Families programme, to place a greater emphasis on supporting parents with complex problems back into work;

A major programme to reduce stress and conflict in workless families;

Enhancing the role of Jobcentre Plus in working with local partners to tackle collectively the multiple disadvantages facing unemployed individuals in a better, more joined-up way; and

Greater support to help those with drug and alcohol dependencies into work, in response to recommendations from Dame Carol Black’s review of employment support for those with drug/alcohol dependencies.

The Secretary of State for Communities and Local Government published the Troubled Families annual report on 4 April, which sets out more detail on the next phase of the programme and should be read in conjunction with “Improving Lives: Helping Workless Families”.

To track our collective progress in improving outcomes for disadvantaged families, we are introducing nine national indicators, as set out in our analysis and research pack. These will build on our two statutory indicators of parental worklessness and children’s educational attainment—for which the first annual report was published alongside “Improving Lives: Helping Workless Families”. I will lay this report formally in Parliament on 24 April.

We will break down our evidence to a local level, to enable local partners to understand and identify the needs of their community. We will continue to work with local agencies and partners on a range of tools, including our family evidence resource, to help them use our new evidence to commission and deliver effective interventions for workless families.

The analysis and evidence we have developed—in conjunction with leading academics and experts, as well as other Government Departments—takes us further than ever before in understanding the root causes of disadvantage.

The indicators and evidence base we are introducing form a framework for action—and in doing so, help to drive improvements in children and families’ lives, now and over time. By targeting services on the issues that prevent parents moving into work and cause instability in family life, Government, working with local authorities and other partners, can help workless families and their children overcome their problems and improve their lives.

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Oral Answers to Questions

Damian Green Excerpts

Monday 27th March 2017 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

2. What assessment he has made of recent trends in the level of self-employment.

[The Secretary of State for Work and Pensions (Damian Green)]

This Government support those who aspire to be their own boss. Self-employment grew by 148,000—3.2%—in the last year to reach a record level of 4.8 million. Self-employment has contributed 30% of the rise in employment since 2010 to the current record levels.

[Justin Madders]

It seems that not a week goes by without another story emerging of the outrageous treatment of the self-employed. This is exploitation. The Deane review of self-employment reported back to the Government over a year ago, and one recommendation it made was that there should be equal treatment for the self-employed, but all we have is yet another review from the Government. When will they actually take some action?

[Damian Green]

As the hon. Gentleman knows, the Government have commissioned Matthew Taylor to review the rights and protections available to self-employed workers. He asked what we have already done. The self-employed now have access to the new state pension, worth an extra £1,800 a year in retirement. We have doubled the amount of free childcare, which is particularly useful for the self-employed and worth up to £5,000 per child per year. We have also increased the personal allowance, worth £1,000, to the typical basic rate taxpayer.

[Mr Peter Bone (Wellingborough) (Con)]

The Secretary of State is right: we have definitely helped the self-employed. However, it was put to me at my listening campaign this weekend by self-employed people that they actually want the Government out of their business. They do not want to pay higher taxes, and they do not want more benefits; they just want to get on with their business. Is that something the Secretary of State could support?

[Damian Green]

I do, and the Government, of course, support that more widely. We are looking all the time at regulations that might hinder the growth of entrepreneurship and self-employment. The actions taken by my Department—for instance, the new enterprise allowance—actively encourage people into self-employment. Some 96,000 new businesses have been set up as a result of the NEA.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

The Government’s proposed increase to national insurance contributions for self-employed workers in this month’s Budget showed a scandalous detachment from the reality of the majority of self-employed workers’ lives, a failure to understand the boom in self-employment and a lack of the will to address the issues self-employed workers face, including the fact that one in three is concerned about becoming sick or being injured during their work. What discussions did the Secretary of State have with the Chancellor on this before the Budget, and is he concerned about the reliability of the minimum income floor calculation, given the Office for Budget Responsibility’s comment?

[Damian Green]

I am confident in the minimum income floor calculation. As the hon. Lady would expect, we have discussions all the time with the Treasury on a wide range of matters. My right hon. Friend the Chancellor said in his letter subsequent to the Budget:

“It is very important…that we are compliant not just with the letter, but also the spirit, of the commitments that were made.”

That is why he decided not to proceed with the class 4 NIC measures set out in the Budget. Also—this is important—all the spending measures set out in the Budget, including on social care, technical education and new schools, will be delivered in full.

[Mr David Nuttall (Bury North) (Con)]

My right hon. Friend is right to note that 96,000 new businesses have been started by jobseekers, but many jobseekers still do not know what help is provided under the universal credit system and the new enterprise allowance. Will he say what his Department is doing to increase awareness of these measures?

[Damian Green]

My hon. Friend makes a good point. Obviously, universal credit is still a relatively new benefit, and many of the self-employed may not be fully aware of the many benefits that arise from it for them specifically. Under UC, self-employed claimants will, for the first time, be offered help to increase their earnings. We will be testing the offer of work coach support to self-employed tax credit claimants. Also, there is an assured level of earnings, but new self-employed claimants will be exempt from this for up to 12 months following their application, which people thinking of setting up their own business will find extremely helpful.

[Lilian Greenwood (Nottingham South) (Lab)]

3. What steps his Department is taking to ensure that personal independence payment assessments are undertaken fairly and efficiently.

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[Helen Whately (Faversham and Mid Kent) (Con)]

6. What steps the Government are taking to ensure that employers are encouraged to recruit and retain people with mental health conditions.

[The Secretary of State for Work and Pensions (Damian Green)]

We are making progress on the independent mental health and employers review, which is led by Lord Stevenson and Paul Farmer. We are also taking forward an internal review of discrimination law in relation to mental health and work. We continue to look at how we can improve employment support for people with mental health conditions, and this approach is reflected in the work and health Green Paper.

[Helen Whately]

I recently trained as a mental health first-aider. Such training helps people to support others with mental health problems, as well as to look after their own mental health. Will my right hon. Friend encourage more employers to take part in initiatives such as mental health first aid to create a culture in which everyone feels able to seek mental health support in the workplace?

[Damian Green]

I congratulate my hon. Friend on taking that training, which is very important. She is right that more employers should act. We are now providing a range of support to help employers to recruit and retain people with mental health conditions, including the Disability Confident campaign and the mental health support service in the Access to Work scheme, which many firms and those who suffer from mental health conditions find useful.

[Helen Goodman (Bishop Auckland) (Lab)]

The Secretary of State should beware of being so enthusiastic that he ignores the real needs of people who cannot go to work. I had an email this morning from one of my constituents saying that her husband had taken his life on Friday. He first came to us in 2016 when his award of employment and support allowance was under review. Despite his doctor’s protest, he was made to have a face-to-face assessment. We sought an extension of the six-month award; that was refused. At that point, he was so stressed that he attempted suicide. The PIP award was reviewed again in January. Will the Secretary of State please ensure that when doctors say that people with mental health conditions should not have face-to-face assessments, they do not have face-to-face assessments?

[Damian Green]

The case that the hon. Lady raises is clearly dreadful. I am sure that the whole House will want to send condolences to the family and friends of her constituent, particularly his widow. We are, of course, not just investing more in mental health than ever before—£11 billion this year—but succeeding specifically in improving clinical assessments. More clinical expertise is now available to the assessors who look at individual cases. As she will know, we have now ended reassessment for those who have conditions that can only stay the same or get worse. We are taking steps to try to minimise those effects.

[John Howell (Henley) (Con)]

22. Ensuring that people with mental health conditions are able to start businesses and also remain in business is very important. What is the Minister doing to encourage employers to make that a possibility?

[Damian Green]

My hon. Friend is right. We are taking action through Access to Work and Disability Confident, which I mentioned in response to my hon. Friend the Member for Faversham and Mid Kent (Helen Whately), but this needs to be part of a much wider programme of education specifically for employers. We have set up a Disability Confident business leaders group because I suspect that employers will listen more to other business people than they necessarily will to politicians.

[Dame Rosie Winterton (Doncaster Central) (Lab)]

Is not the main issue to make sure that people have good access to occupational health services—particularly so that preventive action can be taken if an individual feels that they are suffering from a mental health problem—meaning that they can get to an occupational health service quickly and easily to get proper advice?

[Damian Green]

I completely agree with the right hon. Lady. She will have seen that the work and health Green Paper lays great stress on occupational health services. We have more than doubled the number of employment advisers in talking therapies to make sure that we can help people with the necessary support that will enable them to stay in work. We will need to do more of this important job in the future.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

7. What progress the Government have made on the roll-out of universal credit.

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[Kirsten Oswald (East Renfrewshire) (SNP)]

23. What assessment he has made of the policy implications for his Department of the UK leaving the EU.

[The Secretary of State for Work and Pensions (Damian Green)]

Every Government Department is preparing for a smooth and orderly exit from the European Union. We are confident that we will be able to secure a deal that works in the mutual interests of both the UK and the rest of the EU. We are considering various policy options.

[Steven Paterson]

Some 472,000 people who have retired to the EU currently get automatic increases in the state pension, but it is unclear whether this Government will strike a deal on that after departure from the EU, if they manage to do so. Can the Minister guarantee today that elderly EU expats will not join the 550,000 retirees whose payments no longer increase in line with the state pension triple lock?

[Damian Green]

The Prime Minister has been clear that she wants to protect the rights of British citizens currently living in European member states, in the way that we want to protect the status of EU nationals already living here. That will clearly be an important matter for negotiation in the months ahead.

[Gavin Newlands]

Does the Secretary of State agree that his Government have form on failing to protect workers’ rights? Any illusion about ability to deliver social justice for workers went up in smoke with the Dickensian Trade Union Act 2016. How can we trust his Department to guarantee workers’ rights after article 50 is triggered?

[Damian Green]

I am glad that the hon. Gentleman has drawn the House’s attention to the fact that the Government have pledged to maintain workers’ rights in the course of the negotiations. I am happy also that he gives me the chance to remind the House that the greatest workers’ right is the right to a job, and that employment is at its highest ever level in this country.

[Kirsten Oswald]

Reports at the weekend suggest that the UK Government intend that EU migrants currently living here will retain access to benefits, but those who arrive after the triggering of article 50 will be denied access. Does the Secretary of State agree that that is actually dependent on the will of the EU member states, and his Government cannot guarantee any of those rights as they press ahead, dragging us into the unknown without any credible plan?

[Damian Green]

I am sure the hon. Lady knows that no one standing at this Dispatch Box would ever comment on speculative leaks. She will know as well that we are about to enter a negotiation. We are confident that we will get a good result for the people of Britain, and that is what we will be doing.

[David Mackintosh (Northampton South) (Con)]

13. What assessment he has made of whether the benefit cap encourages people into work.

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[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Work and Pensions (Damian Green)]

I would like to draw the attention of the House to the more generous universal credit taper rate coming into effect over the Easter recess, on 10 April. It demonstrates our commitment to helping people to gain independence in their own lives by getting on and progressing in work. The new taper rate of 63% will boost the incomes of about 3 million families by £700 million a year; a couple with two children could benefit by as much as £425 a year. When combined with the introduction of the national living wage and increases in the personal tax allowance, those changes equate to the biggest pay rise for the lowest earners in a generation.

[Chi Onwurah]

Newcastle has paid a high price for being the first city to go full service with universal credit, with claims routinely lost, delayed or repeatedly deleted. However, the six-week wait period is doing the most to drive so many into destitution and cause people to lose their home. With 80% of Newcastle council house tenants on universal credit now in rent arrears, will the Minister end the wait period, or will he explain how they are supposed to keep a roof over their head with no money?

[Damian Green]

I have two points for the hon. Lady. First, the National Federation of ALMOs—social housing providers—calculates that some 75% of tenants are in arrears under the legacy benefits, so she is not right in her suggestion.

[Alex Cunningham (Stockton North) (Lab)]

Just 75%!

[Damian Green]

Yes, quite; this has been happening for a long time. The idea that universal credit causes housing arrears is just nonsense.

Secondly, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) will know that my Department is working on a pathfinder arrangement with Newcastle City Council precisely to address the problems that may be there now and have been there for many, many years.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

T2. I warmly welcome the latest fall in unemployment, particularly the 52% reduction since 2010 in my constituency. Will the Minister please endorse the work of Motiv-8 South West, which supports young people into employment and training, and continue to do all that he can to help those who are still struggling to find employment?

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[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

We heard earlier about the cuts to PIP support for people with mental health conditions that were brought in 10 days ago. The Government estimate that they will affect 160,000 people. This time next week, half a million sick or disabled people who have been found not fit for work and have been placed in the employment and support allowance work-related activity group will start to see a cut in support of £1,500 a year. Given that disabled people are twice as likely to live in poverty as non-disabled people and the recent analysis showing that that has increased significantly, how does the Secretary of State justify the cumulative cuts to disabled people?

[Damian Green]

First, when the hon. Lady talks about cuts to 160,000 people, she is of course wrong. Nobody’s original DWP award will receive a cut. She also asked me how I justify the changes to ESA, but disabled people and people with health conditions deserve better than the current system, under which only one in 100 ESA WRAG claimants leave benefit each month. I hope that the hon. Member for Stockton North (Alex Cunningham), who is cheering from a sedentary position, agrees with me that we need to change the system. That is why we are proposing a huge number of different types of help across the board, including financial help and advice, which will help them into work.

[Lucy Allan (Telford) (Con)]

T5. Some of my constituents have also raised concerns about changes to their personal independence payments. Will the Minister assure me that claimants will not see any reduction in their PIPs and that the changes are to ensure that help is targeted to those most in need?

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[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

T4. My constituent obtained a court order granting him custody of his two sons, and they were handed over to his care. He informed the DWP but was denied tax credits because, although a letter had been sent to his former wife, she had not responded. During that time, the tax credits were still being paid to her, and it took four months and my intervention to ensure that my constituent received the tax credits to which both he and his young sons are entitled. Will the Minister review the process to ensure that that does not happen any longer so that people do not have to depend on food banks and the kindness of relatives?

[Damian Green]

rose—

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

The hon. Lady will of course be aware that tax credits fall within the remit of Her Majesty’s Treasury, and I will be happy to ensure that that is raised with the relevant Minister.

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[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

T8. The Secretary of State spoke earlier about workers’ rights. Surely workers’ rights should also include the right to some certainty. Will he talk to his fellow Ministers in the Home Office about the fact that many European nationals have lived here for years, have British spouses and British children but are now told that they will have to have comprehensive health insurance in order to stay here?

[Damian Green]

The hon. Gentleman has made his point very forcefully. I am, of course, in constant discussion with ministerial colleagues in the Home Office about a wide range of issues involving the labour market.

[Maggie Throup (Erewash) (Con)]

T10. When it comes to women in work, Erewash leads from the front, with 83% of working-age women in full-time or part-time employment. What steps is my right hon. Friend taking to help more women in other parts of the country to return to employment and follow the example set by my constituents in Erewash?

Personal Independence Payments

Damian Green Excerpts

Wednesday 15th March 2017 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement regarding the recommendations of the Social Security Advisory Committee on the new Personal Independence Payment (Amendment) Regulations 2017, which are due to come into force tomorrow.

[Damian Green]

(The Secretary of State for Work and Pensions): Recent legal judgments have interpreted the assessment criteria for personal independence payments in ways that are different from what was originally intended. The Department presented regulations, which clarify the original policy intent, to the Social Security Advisory Committee. I welcome the SSAC’s careful consideration and we are looking closely at its suggestions.

Let me be clear. The SSAC decided that it did not require the regulations to be formally referred to it and would therefore not consult publicly on them. I believe it was right to move quickly to clarify the criteria, and it is clear that the SSAC is not challenging that decision.

I want to make it clear again that this is not a policy change and nor is it intended to make new savings. This is about restoring the original intention of the benefit, which has been expanded by the legal judgments, and providing clarity and certainty for claimants. I reiterate my commitment that there will be no further welfare savings beyond those already legislated for. This will not result in any claimants seeing a reduction in the amount of PIP previously awarded by the Department for Work and Pensions.

[Debbie Abrahams]

You will recall, Mr Speaker, that on 23 February the Government issued these new regulations by which disabled people or people with a chronic mental health condition would be assessed for eligibility to personal independence payments. These regulations were laid down without any consultation with the Social Security Advisory Committee and without any debate.

As the Secretary of State said, the Committee examined this issue on 8 March and sent a letter with its recommendations to the Secretary of State, which was published yesterday. The Committee made a number of recommendations, including the need to consult more widely on the proposed changes and to test or pilot them before they come into force, so will the Secretary of State commit to implementing these recommendations in full before the regulations come into force?

Parliament has had no opportunity to debate the regulations fully, or to vote on them. When will it be able to do so? The Committee found that

“it is possible that some claimants may have been awarded the mobility component or a higher rate of mobility component…following earlier decisions by the Upper Tribunal on this issue.”

That directly contradicts statements by the Prime Minister and the Minister for Disabled People, Health and Work that no one would see a reduction in their PIP award. Will the Secretary of State take this opportunity to correct the record? Will he guarantee that that will not be the case when claimants are reassessed?

The Government’s decision to change the law on PIP is a clear demonstration of the fact that people with mental health conditions are not given equal treatment. Does the Secretary of State agree with his Department’s new guidance, issued yesterday, which states that mobility impairments caused by psychological issues are “not relevant”? An analysis published today by Scope shows that 89% of PIP cases resulted in successful decisions for claimants following either mandatory reconsideration or appeal. Will the Secretary of State now review the flawed PIP process as a matter of urgency?

We have argued for some time in favour of parity of esteem for mental and physical health. The Prime Minister famously said that there needed to be more support for people with mental health conditions. Will not the Government finally honour that pledge?

[Damian Green]

Let me deal with the hon. Lady’s questions in turn.

We will of course respond to the letter from the Social Security Advisory Committee. Obviously, we take everything that it has said very seriously. We will also maintain the practice—in which the Government have always engaged—of continuous improvement in the PIP guidance. The assessment guidance is freely available, and can be viewed on gov.uk. We are constantly changing it, and the way to do that is to make parliamentary regulations, which is precisely what we are doing in this case. I am conscious that the hon. Lady has personally prayed against these regulations, which gives Parliament a chance to scrutinise them. That process will go through the normal channels, as it always does.

The hon. Lady asked a number of other detailed questions. I can only repeat what I have said before, and what has been said by my hon. Friend the Minister for Disabled People, Health and Work: no claimants will see a reduction in the amount of benefit that they were previously awarded by the DWP. The Committee says that a tribunal may have lifted the awards of some people, and it is indeed possible that that has happened. We will not claim back money that those people have received during the period before the new regulations come into force, and no one will receive less than they were awarded by the DWP. That is what I have said all along. [Interruption.] As the hon. Lady knows, reassessment happens regularly in the case of PIP and other benefits.

Let me now respond to a very serious point made by the hon. Lady. I want to clear up the position and reassure people, because I think that millions would be put into a state of unnecessary distress if they thought that PIP was not fair to those with mental health conditions. The truth is that PIP is a much better benefit for people with such conditions than its predecessor, disability living allowance. Under the regulations, people with a cognitive impairment alone can receive the highest rate of the mobility component of PIP. It is simply not the case that people with mental health conditions will not be able to do so. If the hon. Lady reads the regulations, she will see why that has happened.

Even if the hon. Lady and other Opposition Members are not willing to accept what I have said, may I please ask them to go away and look at the facts? The facts are these: 65% of PIP recipients with a mental health condition received the enhanced-rate daily living component, whereas 22% used to receive it under DLA. As for the specific mobility aspect, to which the hon. Lady referred. 27% of PIP recipients with a mental health condition receive the enhanced-rate mobility component, whereas 9% received it under DLA. It is perfectly clear from the facts that the regulations restore PIP to its original policy intent, and that that policy intent is better for people with mental health conditions than earlier benefits were.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Can my right hon. Friend name any other country that spends as much in direct cash payments for people living with as wide a range of physical, mental and psychological disabilities and illnesses as we do here in the UK? Is that not something we should be proud of?

[Damian Green]

We should indeed. My right hon. Friend previously did this job, and he and I share the passion to make sure that the benefit system is as fair as possible to those who deserve to receive these benefits. That is why we spend £50 billion a year on disability benefits and why PIP is an improvement on previous benefits, particularly for people with mental health conditions.

[Corri Wilson (Ayr, Carrick and Cumnock) (SNP)]

The Government continually trot out the line that serious mental ill health should be treated in the same way as any other illness, but their response to these rulings betrays the old attitudes and stigmas towards mental illness. They cannot keep shifting the goalposts every time they lose a battle at court. If a person needs help, he or she needs help regardless of the nature of their disability or health condition.

The Scottish Parliament is in the process of taking over responsibility for personal independence payments, and until that time the UK Government need to be consistent and stop mucking people about. So many of the people becoming destitute in our communities, being sanctioned, falling through the safety net and becoming dependent on food banks are people with mental health problems. Why will the Government not acknowledge that? Will the Minister back away from this ill-judged move, or are they intent on bulldozing this through regardless of the opinions of this House?

[Damian Green]

I can only say to the hon. Lady that the premise on which she based that question—which is that those with mental health conditions, as opposed to physical disabilities, are in some way being treated unfairly under this benefit—is simply and demonstrably wrong. I will not weary the House by quoting again the facts I have just quoted, but if we are to have an intelligent discussion about the details of benefit policy—this House deserves to have such a discussion—we have to base it on the facts, and the facts are that PIP is a better benefit for people with mental health conditions than the old disability living allowance.

[Justin Tomlinson (North Swindon) (Con)]

The Government are rightly spending an extra £3 billion a year supporting those with long-term health conditions and disabilities. Does the Secretary of State agree that if we are to continue to improve the system, that should be done in conjunction with the expertise of charities, stakeholders and users, and not be based on ad hoc legal decisions?

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[Damian Green]

My hon. Friend, who obviously has great personal expertise in this area, is precisely right. There is a continuous dialogue between the Department and the charities. Sometimes we agree and sometimes we do not agree, but that dialogue is very important and I am determined to maintain it precisely so that when we make changes they are practical ones that make sure that the original good intent of the benefit is maintained.

[Frank Field (Birkenhead) (Lab)]

Despite what the Secretary of State says about the current benefit favouring those who do not have physical disabilities, the evidence coming to the Select Committee which is inquiring into PIP shows that those with other disadvantages find it difficult to qualify. Might he look carefully at the form and at the way his staff interpret it for people who do not have physical disabilities and who have difficulties in qualifying?

[Damian Green]

The right hon. Gentleman knows that there is a review going on precisely to address the points he very reasonably makes. Clearly, there is a degree of complexity with any benefit and we will need to keep working on it. We are waiting for the review carried out by Paul Gray, chairman of the SSAC. Knowing Paul, I am sure he will have some trenchant recommendations, and we will obviously look at them very carefully and use them as the basis for further improvement of this benefit.

[Heidi Allen (South Cambridgeshire) (Con)]

While I agree that PIP is indeed a big improvement on DLA and that nobody stands to lose from this change, for me the court ruling has highlighted the fact that there are still flaws in the PIP process and that more can be done for mental health claimants; I know that as I have sat through two PIP assessments myself. Therefore, rather than just legislating to ignore this ruling, should we not use it as a catalyst to look at the whole PIP process from the beginning?

[Damian Green]

My hon. Friend is right that we need continually to look at improvements, and I think they are done better as part of a coherent process rather than as a result of individual court judgments. I am sure that she will agree that the improvements in the benefit system need to go hand in hand with the many improvements we are now beginning to see in the health service’s treatment of people with mental health conditions. All of this must be tackled as a coherent whole across government so that we improve all the services available to people with mental health conditions.

[Ms Angela Eagle (Wallasey) (Lab)]

I have to say that I am finding an increasing discrepancy between the way that the Secretary of State is describing the PIP benefit and the people who are coming to my advice surgeries in tears, having been completely let down by the system. We all want to see a society where we give support to the most vulnerable, and that is who we are talking about here. Will the Secretary of State now undertake to ensure that some of his highest officials come and visit us in our advice surgeries and look at how this system is actually working out on the frontline, because it is not remotely like how he is portraying it today?

--- Later in debate ---

[Damian Green]

We all know from our own constituency surgeries that there are individual cases that might need to be taken up, sometimes simply because people disagree with a decision, or if there are delays. I am absolutely aware of that. [Interruption.] I point out to the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), who is characteristically chuntering from a sedentary position, that the appeal rate against PIP is extremely low, so actually the facts again do not suggest those kind of problems. But we are absolutely keen to improve this. That is why in the coming weeks we will be setting up service user panels precisely so that we get the real world, on-the-ground experience available to the Department that the hon. Lady wishes us to have.

[Sir Desmond Swayne (New Forest West) (Con)]

It is odd to be asked to pilot something that merely restores the status quo ante—or have I misunderstood the committee’s recommendation?

[Damian Green]

I appreciate my right hon. Friend’s concern. The committee makes a number of recommendations, and, as ever with the SSAC, I will take all of those recommendations very seriously and respond to them fully.

[Greg Mulholland (Leeds North West) (LD)]

My hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) has tabled an early-day motion signed by 143 Members, including the Leader of the Opposition. Why are the Government so keen on ignoring this place and Parliament and on bulldozing this unpopular change through? Will the Secretary of State agree to a proper debate in this House on this unpopular measure?

[Damian Green]

Since, I think, this is the second time that we have discussed this issue in a week, it is hard to argue that Parliament is not having a say. We have followed the usual procedure: we have tabled a statutory instrument, which the hon. Gentleman and his party leader, the hon. Member for Westmorland and Lonsdale (Tim Farron), are free to pray against, and which then goes through the usual channels. This is a perfectly normal procedure.

[Richard Graham (Gloucester) (Con)]

There appear to be two frequent misunderstandings about the legal judgments: first, that the Government amendment amounts to a cut, and, secondly, that people with mental health disabilities get less under PIP than under DLA. So will my right hon. Friend confirm again that actually there is no cut at all to people who previously had an award through PIP, and, secondly, that actually those with mental health disabilities get more under PIP than they did under DLA?

[Damian Green]

I am happy to reassure my hon. Friend that nobody who had an award from the Department for Work and Pensions will have that award reduced, and indeed that PIP is demonstrably a much better benefit than DLA for people with mental health conditions. Is there room for improvement? There is always room for improvement in life.

[Stephen Timms (East Ham) (Lab)]

This is a cut and it directly targets people with mental health problems. The regulation, which is taking effect tomorrow, inserts into the qualifying conditions for PIP, in the section about planning and following a journey, the phrase

“For reasons other than psychological distress”.

Why is psychological distress being carved out in this way, and a cut made as a result?

[Damian Green]

I am afraid that the right hon. Gentleman is simply wrong in his premise. A person

“with cognitive or sensory impairments who cannot, due to their impairment, work out where to go, follow directions or deal with unexpected changes in their journey ”

even when the journey is familiar, would score 12 points under descriptor F on mobility activity. I apologise for getting into the technical weeds here, Mr Speaker. Hence, that person would be entitled to the enhanced rate of the mobility component. That is the situation that pertains now, and that is why more people with mental health conditions are getting the higher rate of PIP—three times as many as did so under DLA—so it is simply not the case that this discriminates against people with mental health conditions.

[Dr Tania Mathias (Twickenham) (Con)]

Will the Minister ensure that the mobility factor in PIP is maintained? It is important to all of us in the community. It is vital for all of us that our friends and family who have mental health problems, dementia or cognitive problems from strokes are out and about and visible in our community. Can he assure me that the descriptors and assessments are formulated according to need, and that no condition is ever excluded?

[Damian Green]

My hon. Friend’s last remark is precisely right, and I can give her the assurance that she seeks. PIP is about the effects on daily life or on mobility. It is not based on the underlying condition. That was the key change when PIP was introduced, and of course we are maintaining that.

[Kate Green (Stretford and Urmston) (Lab)]

I want to understand exactly what the Secretary of State said a few moments ago when he said that nobody would face a cut in their benefit. Did I understand him correctly when he said that, while people would not see their initial DWP benefit award cut as a result of these regulations, they could see their benefit reduced to the original award level when the benefit has been increased by a tribunal and these regulations now supersede the judgement of that tribunal?

[Damian Green]

That is indeed what I said. We think that there may be a handful of people whose appeals have gone through the courts in this very small period, and that money will not be clawed back from them. That is what I said earlier on.

[Mr David Burrowes (Enfield, Southgate) (Con)]

Will the Secretary of State make it crystal clear that the Government’s original intention for PIP, as outlined in the Welfare Reform Act 2012, remains? It was stated:

“The PIP assessment will look at disabled people as individuals and not just label them by their health condition or impairment.”—[Official Report, 26 November 2012; Vol. 554, c. 148W.]

[Damian Green]

I am happy to confirm that to my hon. Friend. I think that he and I would agree that that was a significant step forward when it was introduced, and I am determined that we maintain progress in that direction so that people who have a disability—whether a physical or mental impairment—can lead as full a life as possible.

[Sammy Wilson (East Antrim) (DUP)]

I agree with the Minister that we need to have a discussion on this whole issue. However, these changes have been introduced without such a discussion, and the assessment has been made that 160,000 current claimants will be ruled out as a result of the changes. Does the Minister dispute that? Is he contesting his own Department’s assessment?

[Damian Green]

No. I think that the hon. Gentleman has slightly misunderstood the effect of the court case. I am not changing anything; I am just putting forward regulations that restore us to where we were in November. The court case said that the regulations were unclear and suggested changes that would indeed, conceivably, apply to very large numbers of people. So what we are doing with these regulations is simply returning to the position that was there before.

[Kevin Foster (Torbay) (Con)]

It is appropriate to be discussing this on the day on which the Devon Partnership NHS Trust’s mental health services have been rated “good” by the Care Quality Commission. This marks some improvement. Given the erroneous comments that we keep on hearing about cuts, will the Secretary of State confirm that the constituents who are getting in touch with me who have had an award from the DWP will not see any reduction in what they are receiving?

[Damian Green]

I extend my congratulations to the Devon Partnership NHS Trust. I am glad to hear that mental health services are good in my hon. Friend’s part of the world and yes, absolutely, those who have had an award from the DWP will continue to get that award in the normal way.

[Owen Smith (Pontypridd) (Lab)]

Further to the Secretary of State’s response to my hon. Friend the Member for Stretford and Urmston (Kate Green), will he confirm that he is saying that some people who have been awarded additional resources by a tribunal will see their income cut as a result of these regulations? Will he also confirm that an extraordinary number—89%—of the relatively low number of appeals relating to PIP are overturned? Does that not show that there is something deeply wrong with the system?

[Damian Green]

I think the problem that the hon. Gentleman identifies with the system as it is running at the moment is that a huge number of the very small number of people who go to appeal introduce new evidence during the appeal process. That is the main reason why the figures are as he says. It is clearly better all round—not least for the avoidance of delay for claimants—if we can get all the medical evidence in at the start of the process. That might well preclude the necessity of any kind of reassessment or appeal in the first place.

[David Rutley (Macclesfield) (Con)]

I am grateful to my right hon. Friend for the clarification that he has provided today. What steps is he taking to meet and engage with charities and other stakeholders to clarify the impact of these regulations?

--- Later in debate ---

[Damian Green]

The Minister for Disabled People, Health and Work and I are in constant contact with charities and other groups concerned with this area, precisely because we want to improve the system in a systematic and coherent way so that we are not simply responding to individual cases in front of the courts. I am sure everyone would agree that that is a more sensible way to proceed in continuing the improvements we have seen under PIP.

[Chris Stephens (Glasgow South West) (SNP)]

I asked the Secretary of State this question two weeks ago. If he is arguing that the purpose of PIP is to cover the extra costs that people incur because of a disability, why are those with mental health conditions being paid a lower rate than someone with a physical disability if they struggle to plan or follow a journey?

[Damian Green]

They are not. I can only repeat what I have said before, and if necessary, I will quote the facts again, or the detailed case that I gave to the right hon. Member for East Ham (Stephen Timms). I could go into the details, but I suspect that your patience would be tested by that, Mr Speaker. Do you want me to read the descriptors out again? [Interruption.] But seriously, the point is that it is perfectly possible to qualify for the standard rate or the enhanced rate purely with a mental health condition, so it is not the case that people with mental health conditions are discriminated against.

[Mr Philip Hollobone (Kettering) (Con)]

You have just indicated, Mr Speaker, that your patience would not be tested were the Secretary of State to give a detailed example that might clarify the situation for the House. May I invite him so to do?

[Damian Green]

Let me read it out again. A person

“with a cognitive impairment who cannot, due to their impairment, work out where to go, follow directions or deal with unexpected changes in their journey”,

even when the journey is familiar, would score 12 points under descriptor F on mobility activity 1, which covers planning and following journeys, and hence be entitled to the enhanced rate of the mobility component. Examples of such conditions could include dementia or a learning disability such as Down’s syndrome. I hope that that reassures you, Mr Speaker, and the whole House.

[Derek Twigg (Halton) (Lab)]

I want to press the Secretary of State on the question of assessments. Will he look again at the quality and professionalism involved? I just cannot understand why some of the people who come to see me have not been awarded their benefit. I have had experience of cases such as these over a number of years now, and I have never come across such difficult cases as those I have seen recently.

[Damian Green]

I am happy to reassure the hon. Gentleman that I am already doing that. As I said in answer to a previous question, the chairman of the SSAC is doing one of his regular reports on PIP as a whole, and that will focus very much on the quality of assessments. I take the hon. Gentleman’s point, and we are all concerned to ensure that the assessments are not only of high quality but consistent across the country. That is an important improvement that I want to see in the system.

[Andrew Stephenson (Pendle) (Con)]

Will the Secretary of State confirm that this Government are investing more in benefits for disabled people and more in mental health than ever before?

[Damian Green]

I can confirm that, and I have already quoted the specific figure for disability benefits. We now spend £11.4 billion on mental health services every year, and we will be spending more on disability benefits in every year of this Parliament than was spent in 2010.

[Ms Margaret Ritchie (South Down) (SDLP)]

In the view of the mental health charity Mind, the new regulations and guidance contradict the stated aims of the primary legislation. What information has been transferred to the Department for Communities in Northern Ireland, where parity applies, regarding the new guidance? Will the Secretary of State ensure that the regulations are taken off the table to allow a full debate in Parliament and to ensure that nobody with a mental health impairment is financially penalised in any way?

[Damian Green]

I can only repeat that the regulations, which are being returned to their original state, do not discriminate against people with mental conditions. If anyone observing these proceedings is unnecessarily worried by that assertion, I regret that. I am happy to assure the hon. Lady that the Minister for Disabled People, Health and Work has made direct contact to ensure that information is flowing properly.

[Ian C. Lucas (Wrexham) (Lab)]

The only clarity and certainty that PIP is bringing to my constituents is real distress every day. At 12.14 pm today, I received an email that said:

“I would be grateful if you would contact PIP and address my complaint about taking PIP off me. I do fear that this has caused me to consider taking my own life”.

Complaints of that type come in to our constituency surgeries on a daily basis. The system is broken. It needs to be completely revisited and reconstructed. It cannot be mended.

[Damian Green]

I do not agree with the hon. Gentleman. Any benefits system will obviously have difficult individual cases, and decisions have to be made, but to say that the whole system is broken is going much too far. I can only point out that just 3% of all PIP claims are overturned on appeal, which suggests that the benefit is largely working for the vast majority of people who receive it, but there will always be individual cases where people disagree with the assessment.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

It is clear from the Social Security Advisory Committee’s letter to the Minister for Disabled People, Health and Work that there is some confusion outside the Department about the policy intent and the psychological distress of planning and following a journey. We need much greater communication from the Department, so when we can expect an updated version of the PIP assessment guide?

[Damian Green]

As I am sure the hon. Lady knows, we redo the assessment guide on a regular basis, and the next changes will be available in the next couple of months. It is freely available on the internet for hon. Members to view. It is not some secret guide that goes out to assessors from the Department; all the guidance is public.

[Liz McInnes (Heywood and Middleton) (Lab)]

Only last week, I was contacted by a constituent who has been refused PIP despite having previously been in receipt of DLA. She managed to get to her assessment only because her daughter took her and supported her through it. However, the physiotherapist who did the assessment said that her mental health issues were insignificant because she had managed to attend and to communicate with him. Does the Secretary of State agree that for the process to be fair, the person doing the assessment should, as a bare minimum, be qualified in the appropriate medical specialty?

[Damian Green]

It is obviously impossible to generalise from one case, but if the hon. Lady wants me to look at that case, I will be happy to do so. We are determined to maintain the highest levels of professionalism among the healthcare professionals who do the assessments.

[Neil Gray (Airdrie and Shotts) (SNP)]

The transition from DLA to PIP has been incredibly distressing, and the new assessment criteria and the number of Motability cars that have been returned only to be reissued on appeal are just two examples of why. Now there is this rushed, unscrutinised decision. Given the repeated questions from Members on the Opposition Benches about constituency cases, is the Secretary of State concerned about the erosion of our constituents’ trust in the system?

[Damian Green]

No, because I do not believe that to be the case. Of the many people who receive PIP, vast numbers find it satisfactory and a better benefit than DLA. Specifically on mental health conditions, far more people receive PIP than received DLA, so I just do not accept the hon. Gentleman’s basic analysis of the situation.

[Clive Efford (Eltham) (Lab)]

Will the Secretary of State guarantee that no PIP assessors are required to turn down a quota of their assessments? I find it impossible to understand some of the decisions they make. There can be an arm’s length of medical evidence in front of them, but they turn some people down, particularly those with mental health issues. If he does not know the answer, will he go away and investigate the situation? Something is wrong. So many examples have been given to him that he cannot dismiss them as the odd case.

[Damian Green]

I absolutely assure the hon. Gentleman that no pass or fail quota is given to any assessor.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I refer the House to my entry in the Register of Members’ Financial Interests. As chair of the all-party parliamentary group for disability, people from across the UK continually contact me to say that the process contains little assessment of psychological problems and does not seek information from mental health practitioners. The Secretary of State must be aware that a cognitive impairment is just not the same as a mental health problem. In fact, neither dementia nor a learning disability, the examples he gave, is a mental health problem, so he should go back, do his homework and find out what a mental health problem actually is.

[Damian Green]

I can give other examples that do include mental health issues, but I understand the hon. Lady’s point that there are obviously different forms of condition. Cognitive impairment is not necessarily the same as a mental health impairment, which covers a much wider and, in many cases, different range of conditions. However, all of them are covered fairly by PIP, so the contention from Opposition Members that the benefit is somehow bad at source is wrong. I can see that when I look at the number of people receiving it, particularly those with mental health conditions, who have not received any benefit in the past. I hope that the House will acknowledge that fact.

[Michael Fabricant (Lichfield) (Con)]

I have been listening to these exchanges, and I am trying to judge to what extent there is controversy over PIP. There clearly is controversy in this Chamber, and I do from time to time get letters from constituents regarding PIP. However, will my right hon. Friend indicate what percentage of total claims are disputed?

[Damian Green]

As I have just said, 3% of all claims are overturned on appeal. Now 3% represents many cases, and as I have said various times today, I am always looking to improve the situation and ensure that assessments are better and more consistent. However, having only 3% overturned does not give rise to the picture painted by many Opposition Members that the system is in some way broken.

[Julie Cooper (Burnley) (Lab)]

Does the Minister accept that many people with mental health issues who apply for PIP are so distressed by the whole process that they never even go to appeal when they are turned down? Also, far from spending more on this, we are actually spending less as a proportion of our GDP.

[Damian Green]

I am not entirely clear about the hon. Lady’s last point. I am unsure whether she wants a target percentage of GDP for particular benefits, which seems a slightly odd way to run the welfare state. On her first point, I do not want to weary the House by repeating what I have said before, but ensuring that people with mental health conditions have proper access to benefits is and always has been extremely difficult. We are spending so much money across Government—£11.4 billion this year—on mental health conditions precisely to remove some of the barriers preventing people from claiming benefits to which they are entitled.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Earlier, the Secretary of State blithely said that there would be further updates and guidance in a couple of months. A couple of months is not good enough. What is he doing now to make sure that assessors have the correct information to properly assess claimants and provide them with the support they need?

[Damian Green]

Assessors work from the PIP assessment guide, which is available for scrutiny by Members and the public. Assessors are given that guidance in the most transparent and public way possible.

[Lilian Greenwood (Nottingham South) (Lab)]

The Royal College of Psychiatrists, charities including Rethink Mental Illness and Scope, the Select Committee on Work and Pensions and many of our constituents all tell us that the Government are failing properly to support all disabled people who need help. Now the Social Security Advisory Committee has said that the Government should not proceed with the changes without further testing and consultation. What does it take to get the Secretary of State to listen?

[Damian Green]

I do not agree with the hon. Lady’s characterisation of what the SSAC said. The SSAC has the power to consult if it wants to recommend that we should not proceed, and it has specifically decided not to do that kind of consultation. Her characterisation of what the SSAC has said is off beam.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Thousands of disabled people who rely on the Motability scheme have had their car removed by this Government. In November 2016 the Minister for Disabled People, Health and Work said that the Government were looking at allowing PIP claimants to keep their car pending appeal, and possibly at widening access to the scheme. Three weeks ago the Prime Minister was unable to answer my question and update the House on the progress of that review, and she promised to write an as-yet undelivered letter to me. Can the Secretary of State update the House today?

[Damian Green]

Not with any detail. We are conducting a review, and when that review is finished I will update the House.

[Mary Glindon (North Tyneside) (Lab)]

rose—

--- Later in debate ---

[Mary Glindon]

Further to a previous question, Muscular Dystrophy UK has said today that figures show that 900 mobility vehicles a week are being removed from people due to the PIP reforms but that many of the vehicles are subsequently returned on appeal. Will the Government ensure that a mobility vehicle cannot be taken away from any individual until there is a final decision on their eligibility for the enhanced rate?

[Damian Green]

We constantly work closely with Motability and, as I said in answer to the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), we are currently reviewing the whole scheme, so I beg the House’s patience while we conduct that review.

[Chris Bryant]

Thank you very much for spotting me, Mr Speaker. The Secretary of State seems to think—he has said it several times now—that just because we prayed against the statutory instrument, we are bound to have a one-and-a-half hour debate and a vote. That is completely untrue. The only person who can guarantee a debate and a vote is the Secretary of State. I promise not to tell anyone else, but if he could stand up now and be completely unambiguous in telling us that we will have a debate and a vote in this Chamber, we would be very grateful.

[Damian Green]

In his long and distinguished career, the hon. Gentleman has been shadow Leader of the House, so he knows perfectly well that such things are a matter for the usual channels. It is therefore somewhat above my pay grade.

Universal Credit

Damian Green Excerpts

Monday 13th March 2017 Written Statements

[The Secretary of State for Work and Pensions (Damian Green)]

Universal credit full service for all types of claimants continues to roll out to plan. It is now being delivered in 50 jobcentres and is the Department’s first fully digital service.

We have been exploring how this technology can, for the first time, offer a simple system of explicit consent (to protect the large amounts of claimant personal information held under universal credit) but which is easy to use and takes advantage of the opportunities a digital service can offer. Such a system can be used by third parties and stakeholders representing claimants’ interests, enhancing the service that they can provide for the most vulnerable.

However, it is clear MPs engaging on their constituents’ behalf need constant access to such a system through which they can help their constituents. Today, I have agreed that the implicit consent approach which operates well for all other DWP benefits can be extended to MPs representing the interests of their constituents who are engaging with or directly claiming universal credit. We can offer this because of our pre-existing relationships between MPs’ offices, district managers and their teams. This is something which cannot pertain for inquiries from other sources.

This means any correspondence—letter, email, or telephone inquiries—from MPs on behalf of a constituent relating to universal credit will be answered directly, without a requirement to seek explicit consent from their constituent. This will ensure consistency and clarity for MP offices, no matter what benefit the inquiry is about.

Extending this support for MPs and their constituents will continue to help enable the successful delivery of this key welfare reform programme.

[HCWS528]

Personal Independence Payments

Damian Green Excerpts

Tuesday 28th February 2017 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement on the cuts to entitlement to personal independence payment.

[The Secretary of State for Work and Pensions (Damian Green)]

Recent legal judgments have interpreted the assessment criteria for PIP in ways that are different from what was originally intended by the coalition Government. We are therefore now making amendments to clarify the criteria used to decide how much benefit claimants receive in order to restore the original aim of the policy previously agreed by Parliament, which followed extensive consultation.

I want to be clear about what this is not. It is not a policy change, and nor is it intended to make new savings. I reiterate my commitment that there will be no further welfare savings beyond those already legislated for. This will not result in any claimant seeing a reduction in the amount of PIP previously awarded by the Department for Work and Pensions.

Mental health conditions and physical disabilities that lead to higher costs will continue to be supported, as has always been the case. The Government are committed to ensuring that our welfare system provides a strong safety net for those who need it. That is why we spend about £50 billion to support people with disabilities and health conditions, and we are investing more in mental health than ever before, spending a record £11.4 billion a year.

Personal independence payments are part of that support, and they provide support towards the additional costs that disabled people face. At the core of PIP’s design is the principle that support should be made available according to need, rather than a certain condition, whether physical or non-physical. PIP is also designed to focus more support on those who are likely to have higher costs associated with their disability. PIP works better than disability living allowance for those with mental health conditions. For example, there are more people with mental health conditions receiving the higher rates of PIP than there were under the old DLA system.

This is about restoring the original intention of the benefit, which has been expanded by the legal judgments. It is entirely appropriate for the Government to act to restore clarity to the law, as Governments have done before and will no doubt continue to do in the future.

[Stephen Timms]

In a written statement published without warning on Thursday, Ministers announced the cuts to which the Secretary of State has just referred, which will take effect in two weeks’ time. Over the weekend, another Member in government said that this was to stop the payment of benefits to people

“taking pills at home, who suffer from anxiety”.

Why is so little notice being given, with no opportunity at all for parliamentary scrutiny of these substantial cuts? Will the Secretary of State confirm, as stated in the impact assessment published with the regulations, that people suffering from schizophrenia, learning disability, autism and dementia will be among those worst affected by the cuts? The cut is being achieved by taking the benefit away from people whose mobility impairments are the result of “psychological distress”. According to the wording of the regulations, they will no longer be entitled to benefit. Does that not directly contradict the Prime Minister’s commitment to treat mental health on a par with physical health?

[Damian Green]

I thought every part of that question was based in error, if I may say so. Nobody is losing money compared with what they were originally awarded by the DWP, so that part of the right hon. Gentleman’s question is simply factually incorrect.

Far from being slipped out, the Department made a huge effort to let people know that this was happening. I left a message for the shadow Secretary of State, the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), and I spoke to the Chairman of the Work and Pensions Committee, the right hon. Member for Birkenhead (Frank Field). I know that my hon. Friend the Minister for Disabled People, Health and Work also spoke to a number of colleagues, so the idea that this was slipped out is simply ridiculous.

The right hon. Gentleman talks about individual conditions, and I can only repeat what I said earlier: PIP is awarded not for conditions, but for the living or mobility difficulties that result from such conditions. All that the regulations do is to restore the situation to what it was in late November, before the two court judgments. This is not a new policy or a spending cut; this is simply restoring the benefit to what was intended when it was first introduced under the coalition Government.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Does my right hon. Friend agree that any welfare payment, especially one providing a tiered range of cash payments to people living with enormously diverse physical and mental conditions, requires clear assessment criteria and clarity in law? The new regulations will restore precision to the law, which will benefit all users of the system.

[Damian Green]

I completely agree with my right hon. Friend, who obviously has huge expertise in this area, that we need clarity. In particular, the vulnerable people receiving PIP deserve clarity. I reassure them and the House that all the regulations will do is to restore us to the situation that everyone knew they were in late last year, and in which they have been ever since PIP was introduced.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

As we have heard, on Thursday the Government issued the new regulations by which disabled people or people with a chronic condition will be assessed for eligibility for personal independence payments. PIP helps disabled people to fund their living costs and, in particular, the additional costs that they face because of their condition. The regulations will come into force in just over two weeks’ time, but they were issued without any consultation with the Social Security Advisory Committee. The Government have said that this is because of the urgency of the issue.

The Government are in effect overturning two tribunal rulings that allow chronic “psychological distress” to be included in the PIP assessment. However, if the Secretary of State was so unhappy with the tribunal rulings, why did he not use his powers under sections 25 and 26 of the Social Security Act 1998 and regulations 21 and 22 of the Social Security and Child Support (Decisions and Appeals) Regulations 1999 to challenge those rulings in the courts?

The Secretary of State’s actions not only undermine the judicial process, but reduce eligibility to PIP support for over 164,000 people with debilitating mental health conditions, including those not able to go outside their own homes. What discussions has the Secretary of State had with disabled people’s organisations ahead of bringing forward these regulations? What is his assessment of the effects on the health and wellbeing of the people affected by the cuts? Given that disabled people are twice as likely to live in poverty as non-disabled people as a result of the extra costs they face, how many disabled people will be driven into debt or face poverty as a result of these cuts? What is the cumulative effect of these cuts along with the employment and support allowance work-related activity group cuts that are due to come into effect in April, which will affect 500,000 disabled people? Finally, why are the Government contradicting their earlier argument in the 2015 upper tribunal case of HL v. the Secretary of State for Work and Pensions in which they argued that “psychological distress” should be included in PIP assessments?

We have been arguing for parity of esteem for mental health with physical health for some time now. Indeed, the Prime Minister famously said that people with mental health conditions need more support. Why will the Government not honour that?

[Damian Green]

Let me deal with some of the detailed points raised by the hon. Lady. Incidentally, we are appealing the judgments, but because of the lack of clarity that would be caused by leaving the current regulations in limbo following the upper tribunal’s decisions, it is better to move quickly. I should also say that the tribunal has itself said that the assessment criteria are not clear. If the tribunal believes that, I am more than happy to accept it—indeed, I am grateful to it for telling us that the criteria are not clear—so I am now taking the opportunity to clarify the existing regulations.

The hon. Lady talked about the effect on disabled people. I absolutely agree with her that that is the central core of what we are trying to do. I point out to her that over two thirds of PIP recipients with a mental health condition get the enhanced rate daily living component, compared with just 22% who used to receive the highest rate of DLA care. That is why PIP is a better benefit than DLA. That happened previously under the existing regulations, and I am now restoring that situation.

The hon. Lady’s questions were predicated on this being a cut. It is simply not a cut; it is not entirely honest of her to say that it is a cut. If she looks at the facts of the case, she will recognise that people claiming PIP—specifically those with mental health conditions—have been and are better off with PIP. We are making the benefit clear. We are making the change so that the benefit is paid as it has been since it was first introduced, which is better for people, particularly those with mental health conditions.

[Mr Speaker]

Order. I respect the cut and thrust of debate, but there can be no accusation of dishonesty in this Chamber.

[Damian Green]

I will happily withdraw—

[Mr Speaker]

Order. That is quite sufficient. No further explanation is required. I am very grateful to the Secretary of State, and deeply obliged to him.

[Justin Tomlinson (North Swindon) (Con)]

I welcome the fact that the Government are now, rightly, spending a record amount to support those with long-term health conditions and disabilities. If the Government were to decide to increase that amount yet further, surely that should be done in conjunction with charities and stakeholders, utilising their expertise, rather than on an ad hoc basis dictated by the courts?

[Damian Green]

My hon. Friend, who also has huge expertise in this area, is exactly right. There was very extensive consultation when PIP was first introduced about the design of what is, inevitably, a very complex benefit. As I have explained, we have seen a considerable improvement in awards, particularly for those with mental health conditions. The Government’s changes will restore that situation, which was better than people ever knew in the past.

[Corri Wilson (Ayr, Carrick and Cumnock) (SNP)]

The changes will, despite what has been said, exclude disabled people from vital financial assistance. They send a dangerous message to the public that people suffering from mental health conditions are less worthy of support than those with physical disabilities. We cannot and should not pit one disability against another. With condemnation across the spectrum, I urge the Secretary of State to rethink these callous changes. Can the Secretary of State offer any explanation as to why those with mental health conditions are not entitled to the same levels of support as others? Will he clarify whether this matter will be brought to the House? Finally, I ask that a debate takes place as a matter of urgency to give the House the opportunity to scrutinise the proposals fully and to put forward the concerns of disabled people across the UK.

[Damian Green]

The hon. Lady will know that what is considered for debate are matters for the usual channels. It ill behoves any Secretary of State to try to interfere in the actions of the usual channels.

The hon. Lady’s first question is based on the misapprehension that people with mental health conditions are doing worse under PIP as it is currently run. That is simply factually not the case. I am proud of the fact that overall the Government are spending £11.4 billion on people with mental health conditions—more than any previous Government have paid out. Overall, we are spending £50 billion a year on disability benefits. In every year of this Parliament we will be spending more than was spent in 2010. That is how we are meeting our commitments to disabled people, which I take very seriously and the whole Government take very seriously.

[Sir Desmond Swayne (New Forest West) (Con)]

Are there lessons for the framers of the regulations to avoid them effectively being rewritten by the tribunals?

[Damian Green]

There are always lessons for anyone who writes regulations. By necessity, benefit regulations are complex, particularly because they need to be very sensitive. We are dealing with vulnerable people. In this case, we are dealing with disabled people who have extra living costs or difficulties with mobility. Inevitably, the framers of regulations try to make them as exact as possible. It is one of the roles of the courts to point out where that has gone wrong. In this case, the courts have said that they were not clear. What the Government are doing is clarifying them. That is to everyone’s benefit.

[Rachel Reeves (Leeds West) (Lab)]

The Prime Minister has said that there should be parity of esteem between mental and physical health conditions. By overriding the courts on this matter, 160,000 people who would otherwise have been receiving support through PIP will not now receive it. Did the Prime Minister agree with the decision to overrule the courts and deprive these people of the support they desperately need?

[Damian Green]

The hon. Lady is wrong to say that 160,000 people will not get PIP because of the decision. She knows the details well enough to know that this is not about whether or not people receive PIP. There are two different cases and two descriptors—[Interruption.] She keeps treating me as though I am the Prime Minister. I am grateful, but I am not. I am the Secretary of State for Work and Pensions. The hon. Lady is simply wrong when she says that this will deny people PIP. As she knows, PIP is given on the basis of the difficulty of living costs or mobility costs. It is not a binary case. Twelve different attributes are considered and each attribute has a large number of descriptors. The court case affects two descriptors. It is not as she paints it.

[Kelly Tolhurst (Rochester and Strood) (Con)]

I thank the Secretary of State for his clarification. Can he assure my constituents who are affected by PIP that the Government are committed to ensuring that PIP assessments are high quality and that people are properly supported throughout the process?

[Damian Green]

We are engaged in a PIP improvement project. My hon. Friend is right to ask the question about consistency of assessments. That is one matter we are certainly addressing. The other matter, which I know is of concern across the House, is delays. I am glad to report that because of the PIP improvement plan, claims are now being cleared at over five times the rate they were in January 2014. The delays in the system are being reduced and we are addressing the issue of consistency.

[Mr David Winnick (Walsall North) (Lab)]

Has the Secretary of State forgotten that one of his predecessors resigned a year ago because of cuts to the disabled? Does he understand—it does not seem that he really does—the strong feeling among so many of the vulnerable that they will again be in the firing line for cuts? There is so much anxiety. We receive emails constantly from those affected, and from organisations, about the way the disabled are hit time and time again.

[Damian Green]

I am happy to assure them and the hon. Gentleman that what I am talking about today is not a cut. We are not going to have any new welfare cuts in this Parliament, apart from those that have already been legislated for. The decision we have taken is not—not—a cut.

[Rishi Sunak (Richmond (Yorks)) (Con)]

It is clear that different medical conditions will have different impacts on people’s living and mobility. Does my right hon. Friend agree that we must recognise this simple fact if we are to continue to target resources on those who are most vulnerable and most in need?

[Damian Green]

I do. Indeed, that was the purpose of the original design of PIP. It is better than disability living allowance, which it replaced, precisely because it reflects the reality in individuals’ lives that some will have more difficulty in going about their daily business because of a disability. The PIP benefit is specifically designed in a very careful, and therefore complex, way to achieve that and it does. Ministers have to ensure that the rules are completely clear and that is what we are doing today.

[Ms Angela Eagle (Wallasey) (Lab)]

If everything is working so well, why are my advice surgeries full of people who have been waiting for their PIP assessments for a very long time? Long-term disabled people are being denied them and being caused massive amounts of distress by the process. They feel utter despair at having to have anything to do with it.

[Damian Green]

As I say, an improvement plan is in place, which lets the hon. Lady know that things need to improve. They are being improved, as I explained in answer to the question from my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst). I hope the hon. Member for Wallasey (Ms Eagle) can be reassured by the fact that we are recruiting a team of health professionals to help us to scrutinise the suppliers’ training and assessments. Both suppliers have their own improvement plans in place as well. We will be trialling audio recording of selected assessments from the beginning of next month to understand better how assessments can be improved.

[Nigel Mills (Amber Valley) (Con)]

As part of the improvement plan the Secretary of State refers to, will he ensure that those who need assessments in their own homes will be able to get them from both providers?

[Damian Green]

Yes. That point has been made by a number of non-governmental organisations, as well as colleagues on both sides of the House. We are looking at it very seriously.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

Some of my constituents are unable to leave their homes without assistance due to a physical disability and some are unable to leave their homes because of a mental disability. Why should one be entitled to receive support via PIP, but not the other?

[Damian Green]

They will both be entitled to PIP at the level that will be assessed. Each individual is different and has different levels of difficulty. It is often the case that for people who are blind, with visual or cognitive impairments, they will not have a fluctuating condition. It will clearly be less amenable to treatment than some other conditions. It is the level of difficulty in a person’s daily life, whether they have a physical or a mental health problem, that matters in terms of the PIP assessment.

[James Morris (Halesowen and Rowley Regis) (Con)]

The Secretary of State will be aware that since joining this place I have been a strong campaigner for parity of esteem between mental and physical health. Is not one of the key points he is making that this is not a binary decision between mental and physical health? The point of PIP is that it promotes targeted help for people with mental health conditions. Is it not also the case that more people are receiving payments under PIP for mental health conditions than ever was the case under DLA?

[Damian Green]

I pay tribute to my hon. Friend for the very good work he has done in his time in the House on mental health. He is absolutely right. A core tenet of PIP’s design is the principle of equivalence between physical and non-physical conditions. The whole House ought to welcome this move. It is why, as he has explained, it is a better benefit than DLA. Rolling PIP out in this way and attempting to improve the assessment process in the way we are is the best way for us to help people with all kinds of disabilities, specifically those with mental health conditions.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

I received an email following the remarks of the No. 10 adviser over the weekend. My constituent wrote:

“As someone who has been diagnosed with PTSD and phobic anxiety, I am deeply distressed and angry about his remarks. Considering the current lack of funding and social stigma that mentally disabled people already have to suffer, this is beyond the pale.”

Do the Government recognise the offence these remarks caused, and will they dissociate themselves from and apologise for them?

[Damian Green]

The hon. Gentleman talks about a Government adviser. I assume he is talking about my hon. Friend the Member for Mid Norfolk (George Freeman), who has apologised for his remarks and who has, as it happens, also done a lot of work on mental health issues. As he has explained, he has a personal and family history that makes him particularly sensitive to mental health issues. I hope that the House can accept his apology.

[Huw Merriman (Bexhill and Battle) (Con)]

For those of us who deal with vulnerable constituents, it is frustrating to hear these matters described as cuts when they are clearly not. Where in the £50 billion disability budget would savings have to be made to pay for this increase?

[Damian Green]

Since the purpose of the announcement and the regulations that the Government are introducing is not to have to look for cuts elsewhere, I am happy to say to my hon. Friend that we can avoid those, but he is quite right. We have a welfare budget and are spending more on disability benefits than any previous Government, and we are proud of that fact.

[Tom Brake (Carshalton and Wallington) (LD)]

The Liberal Democrats have tabled a prayer on this to try to force a debate, and I thank the Leader of the Opposition for supporting it. A constituent, Katherine, has contacted me concerned about how the amendments will impact on her when she is transferred from DLA to PIP. She currently receives the lower rate mobility component and suffers from attention deficit hyperactivity disorder, depression, generalised anxiety and social phobia. Her life is severely affected by her mental health. She cannot plan the route of a journey or follow the route of a familiar journey. Why do the Government want to deny her the mobility component of PIP?

[Damian Green]

Katherine will see no change to the rules that have applied to her in the past. I gently point out to the right hon. Gentleman that these rules were passed by a Government of whom he was a member.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I am grateful to the Secretary of State for providing some helpful clarity on this issue. Will he confirm that people who need help managing their medication will continue to receive that support?

[Damian Green]

Yes. Not only will they come under the appropriate descriptor for PIP, but—this has not been mentioned yet—they will receive support from the NHS as well. We have a healthcare system precisely to advise people on issues such as medication, so the state is already doing something to help them. Clearly that is necessary and will continue to be an important part of the system.

[Mrs Madeleine Moon (Bridgend) (Lab)]

Mind says that the proposed changes will affect about 160,000 people and could prevent people from accessing the financial support they need to get to health or job appointments and from getting out to pay for fuel and heating, take their children to school or see friends and families—things essential for their daily lives and recovery. If the Secretary of State is so confident that he is right and Mind is wrong, will he meet representatives from Mind to discuss who is right and who is wrong, and then come back to the Chamber and give the same assurance?

[Damian Green]

I am always happy to meet representatives from Mind. As it happens, the Minister for Disabled People, Health and Work, my hon. Friend the Member for Portsmouth North (Penny Mordaunt), has already spoken to Mind on this matter, and it is coming into the Department to speak to us again soon.

[Mrs Moon]

On this issue?

[Damian Green]

On this issue, yes. As I have already pointed out, nobody is losing any benefit originally awarded to them by the DWP. That is the fact that most needs to be conveyed to those receiving the benefit.

[Will Quince (Colchester) (Con)]

I read the media reports on this change with some alarm, until I read into the detail of the regulations. To that end, will the Secretary of State confirm my understanding that far more people with mental health issues will be eligible for PIP than were ever eligible for the old DLA?

[Damian Green]

Yes, my hon. Friend makes a correct point, and one that I have made several times in the past few minutes. PIP is a better benefit than DLA for several reasons, perhaps the most important being that it is more available to those with mental health conditions. It always has been. The rules we are putting in place will make sure that it continues to be.

[Yasmin Qureshi (Bolton South East) (Lab)]

Why are the Government contradicting their argument in the 2015 upper tribunal case of HL v. SSWP, where they argued that psychological distress should be included in PIP assessments?

[Damian Green]

I am happy to assure the hon. Lady that psychological distress is included in PIP assessments. It always has been. Nothing changes as a result of these regulations.

[Kevin Foster (Torbay) (Con)]

I thank the Secretary of State for the reassurances, given the correspondence I received after the media coverage. Will he go further and confirm that the regulations will not result in anybody receiving less money than they were awarded by the DWP and that there is no intention to make new savings?

[Damian Green]

I am happy to repeat—yet again—that nobody will receive less money under PIP than they originally received in their award from the DWP as a result of the regulations we have introduced.

[Kate Green (Stretford and Urmston) (Lab)]

People with learning disabilities, schizophrenia and autism—the conditions highlighted by my right hon. Friend the Member for East Ham (Stephen Timms)—are more likely to feel anxious about their assessment and experience greater difficulty in conveying information about their condition and, according to my constituents, are increasingly subjected to a more hostile and aggressive assessment process. Does the Secretary of State share my concern that these people will be particularly vulnerable if the proposals are not introduced very carefully?

[Damian Green]

We are introducing them very carefully. I completely agree that people likely to suffer from anxiety should not be made unnecessarily anxious, which is why I am at pains to reassure them, the House and everyone else that this is not a policy change or a cut. Nobody will receive less benefit than they were originally awarded by the DWP.

[Henry Smith (Crawley) (Con)]

I commend the Secretary of State for his response. Through the PIP improvement plan, can he assure constituents of mine who find it difficult to travel to assessments that they will be supported?

[Damian Green]

Yes I can. Assessors already visit people who need that particular service, and obviously that will continue.

[Richard Burden (Birmingham, Northfield) (Lab)]

Is not the reality of the situation that the disability benefits system, whether PIP or its predecessor benefits, has never been sufficiently sensitive or flexible when it comes to the needs of people with mental health illnesses, and that the court ruling was one small step in interpreting existing regulations—not new ones—to make the system just a little better? Does the Secretary of State not recognise that by rushing out these new regulations, he is changing the interpretation of an existing one, and in doing so will make people with mental health problems and illnesses a lot more anxious and unfairly treated?

[Damian Green]

The hon. Gentleman makes an important point, but I do not agree with his assessment. The upper tribunal said that the regulations were not clear enough, so we are clarifying them in a way that restores the original intention of the benefit. That should provide certainty to people, not uncertainty.

[Mr David Burrowes (Enfield, Southgate) (Con)]

I recognise that the Government are retaining the scope of PIP and the funds for it, but does not the focus on vulnerable people with the most challenging needs highlight the need for more integration and more funds for social care?

[Damian Green]

As ever, my hon. Friend makes a good point. He is right about greater integration, which is precisely why we created a work and health unit. For the first time, my Department and the Department of Health are working together daily for the many people whose needs fall partly under health and partly under the benefits system, so that we can provide a more integrated, personal and sensitive service.

[Nick Thomas-Symonds (Torfaen) (Lab)]

So many of my constituents have had to go through the mandatory reconsideration process all the way to a tribunal to be awarded the number of PIP points they should have been awarded in the first place. Alongside these regulations, does the Secretary of State have any plans to introduce support for disabled people who are awaiting the outcome of tribunal decisions?

[Damian Green]

The hon. Gentleman makes a point about people who appeal, but only 6% of PIP judgments are appealed—a very low number. We are seeking to improve the system by making sure that more health information is available earlier in the assessment process, which I am sure will help the hon. Gentleman’s constituents.

[Mr Philip Hollobone (Kettering) (Con)]

I have been following exchanges closely, and my constituents will want to know that their MP has understood things correctly. Can the Secretary of State confirm my understanding from what has been said that 25% of PIP claimants now get the highest rate compared with 15% under DLA, and that more people with mental health conditions qualify for PIP than ever did before under the old DLA system?

[Damian Green]

Yes, my hon. Friend is right in both those assumptions, and I am happy for him to share them with his constituents. Let me add a more specific assurance—that more PIP claimants with mental health conditions claim the mobility component, which stands at 27% as compared with 9% of those on DLA, which is another improvement.

[Tracy Brabin (Batley and Spen) (Lab)]

In common with my hon. Friend the Member for Wallasey (Ms Eagle), who has just left her place, I have had surgeries at which constituents are increasingly anxious about these changes. Can the Secretary of State please confirm what assessment the Government have undertaken on the impact of these cuts on the already vulnerable mental health status and well-being of claimants, and will he make that assessment available to the House?

[Damian Green]

The equality analysis is available. I can only emphasise to the hon. Lady’s constituents—[Interruption.]—and indeed to those of the shadow Secretary of State, who is chuntering from a sedentary position, that this is not a change in policy or a cut. Nobody will receive less benefit than they were originally awarded by the DWP. [Interruption.]

[Mr Speaker]

There are people on both sides who are chuntering from a sedentary position, which is certainly not something I ever remember doing myself when I was on the Back Benches.

[Mr Peter Bone (Wellingborough) (Con)]

I remember that you sat next to me on those Benches, Mr Speaker.

We have an excellent Secretary of State, probably one of the most caring in the Government, and I am sure that what the Government are doing is correct. As the hon. Member for Torfaen (Nick Thomas-Symonds) said, however, Members have the opportunity today to highlight the fact that the process of assessment is not working for a number of our constituents. I am fed up with seeing every week a constituent who clearly should have been awarded PIP but is not getting it. Will my right hon. Friend say a little more on how we are going to improve that situation?

[Damian Green]

I am grateful to my hon. Friend for his kind remarks and indeed for your remarks, Mr Speaker, about the fact that you never chuntered from the Back Benches. This means that I will be able to correct my own memory of those circumstances, having sat next to you on the Back Benches for many years as well.

We are obviously trying to improve all aspects of the PIP process—the accuracy and the speed of the assessments—and, as I have said, the early provision of more objective health information will improve the situation hugely, not least for my hon. Friend’s constituents and others who find the process stressful.

[Alison Thewliss (Glasgow Central) (SNP)]

I challenge the assertion that PIP is better for people with mental health conditions. One of my constituents has a diagnosis of bipolar disorder and used to receive DLA on the grounds of a need for continual supervision. This procedure is not recognised under PIP, and my constituent has lost not only her entitlement to PIP but consequently her working tax credit, which was passported via DLA. She is now considering leaving her job. What reassurance does this announcement give to my constituent and others in similar situations?

[Damian Green]

I can only repeat the facts to the hon. Lady. Over two thirds of PIP recipients with a mental health condition get the enhanced rate daily living component, which compares with just 22% who received the highest rate DLA care. As I have just explained to my hon. Friend the Member for Kettering (Mr Hollobone), for the mobility component, which is the other part of PIP, the relevant figures are 27% and 9%. The facts are incontrovertible. More people with mental health conditions are receiving PIP than used to receive DLA. It is a better benefit for people with mental health conditions than DLA.

[Richard Drax (South Dorset) (Con)]

My South Dorset constituents will be relieved to hear what my right hon. Friend said about looking at the assessment process, which goes horribly wrong far too often. Would he give more consideration to home visits and take into account information not only from health officials and GPs but from relatives, families or friends?

[Damian Green]

As I explained to my hon. Friend the Member for Crawley (Henry Smith), we already do home visits. If there are cases where my hon. Friend the Member for South Dorset (Richard Drax ) thinks people should have had home visits but did not, I encourage him to get in touch with me so we can look at the details of them.

[Jeff Smith (Manchester, Withington) (Lab)]

Of the many constituents who have come to my surgery with problems over PIP, one particularly sticks in my mind: a man whose long-term mental health issues meant he simply could not get out to work, yet PIP was refused for him. This was not somebody who wanted to sit at home and take pills; he was simply unable to get out there. How can the Government possibly claim to want parity of esteem for mental health when they are trying to enshrine disparity as a result of this change?

[Damian Green]

It is impossible for me to comment on an individual case when I have not seen the details, but the parity between mental and physical disabilities is embedded in PIP. It is the whole point of PIP. I shall not weary Members by repeating the figures, but far more people with mental health conditions are receiving PIP than used to receive DLA. It may be an uncomfortable truth for Opposition Members, but it is still true.

[Chris Stephens (Glasgow South West) (SNP)]

Why was the Social Security Advisory Committee, in effect, bypassed when this regulation was put through? What consultations has the Secretary of State had with organisations that represent disabled people? What does he say to those organisations that are concerned about his Department’s repeated attempts to award people with mental health conditions who cannot follow the route of an unfamiliar journey alone the lower and not the higher mobility rate?

[Damian Green]

I spoke to the chairman of the SSAC and explained why I was invoking the urgency procedure, which is allowed. He and his committee still have the power to look at these regulations and make recommendations. The hon. Gentleman will have observed that many Members of all parties have talked about the problems of uncertainty and how they particularly affect many of those people with mental health conditions whom we have been discussing. What we are doing as quickly as possible is removing the uncertainty, meeting the upper tribunal’s desire for greater clarity in the system and restoring it to where it was before, so that everyone understands it. These are the rules under which people have claimed for a long time, providing quick certainty for people, which is what many people want.

Oral Answers to Questions

Damian Green Excerpts

Monday 20th February 2017 Commons Chamber

[Peter Grant (Glenrothes) (SNP)]

23. What assessment he has made of the effect of the benefit cap on households in Scotland.

[The Secretary of State for Work and Pensions (Damian Green)]

Work is the best route out of poverty, and the benefit cap has been successful in encouraging people into work. Since its introduction, almost 62% of households in Scotland have found work, reduced their housing benefit claim or no longer claim housing benefit at all after having their benefits capped.

[Martyn Day]

Does the Minister agree with paragraph 90 of the fiscal framework, which states:

“The Governments have also agreed that the UK government’s Benefit Cap will be adjusted to accommodate any additional benefit payments introduced by the Scottish Government.”?

[Damian Green]

Of course we agree with the fiscal framework—the Government drew it up, in conjunction with the Scottish Government. The Scottish Government already have extensive benefits powers if they wish to introduce them, but the fact that they do not is a matter for the hon. Gentleman to take up with his colleagues in that Government.

[Peter Grant]

Writing in today’s Daily Record, Scotland’s First Minister has commented that the Scottish Government have yet to receive “confirmation” from the UK Government that when we abolish the bedroom tax the benefit cap will not be applied. Will the Secretary of State take this opportunity to guarantee that there will be no clawback of social security funding when Scotland abolishes the hated bedroom tax?

[Damian Green]

I can only refer the hon. Gentleman to the answer I gave the hon. Member for Linlithgow and East Falkirk (Martyn Day), because it is for the Scottish Government to take these decisions. They have the power to give benefits, increase benefits and make supplementary payments beyond the benefits available throughout the UK. It is noteworthy that they fail to exercise those powers and Scottish National party Members come to this House to complain about benefits in Scotland, despite having the power to do something about it themselves.

[Frank Field (Birkenhead) (Lab)]

I support the Government’s strategy in this area, but does the Secretary of State accept that those who support it have concerns about what might be happening, certainly in the short run, to families so affected? What research is he carrying out to make sure that those who can move into work do so and that those who cannot do so are looked at sympathetically?

[Damian Green]

The right hon. Gentleman makes a characteristically reasonable point, to which I make two responses. The first is that those who are put into hardship have available to them discretionary housing payments, which have been extensively used by local authorities throughout the country precisely to avoid the problem that he suggests. Secondly, on the other point he makes, some of the research we have done shows that households that have been capped are 41% more likely to go into work than similar, uncapped households. So the policy is very successful in encouraging people to get back to work, which of course is the best thing for them in the long run.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

During the passage of the Scotland Bill, UK Ministers gave me and others clear assurances that any income derived from new benefits or top-ups introduced by the Scottish Government using new powers would not simply be clawed back from claimants through the benefit cap or other forms of means-testing, and those commitments were reflected in the fiscal framework. Will the Secretary of State therefore give a cast-iron assurance that that is still the UK Government’s position?

[Damian Green]

The UK Government’s position has not changed at all and nor, so far, has the Scottish Government’s, which is that they are not prepared to take or exercise the powers that they have.

[Dr Whiteford]

With respect, that is just nonsense; the Scottish Government are working towards the already-published timetable. But there should be absolutely no ambiguity here, so will the Secretary of State now commit that he, his Ministers and his officials will engage positively with Scottish Ministers as they use those new powers to abolish the bedroom tax in Scotland?

[Damian Green]

I, along with both my Ministers and my officials, engage positively with the Scottish Government all the time. I know that because I go to the meetings, and I have engaged positively with them on this and all the other important issues that we have to discuss in this field.

--- Later in debate ---

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

3. What assessment his Department has made of recent trends in the number of young people in work.

[The Secretary of State for Work and Pensions (Damian Green)]

The number of young people in work has increased by 235,000 since 2010, and is up 38,000 in the past three months. Nearly nine in 10 young people are in education or work, and youth unemployment is the lowest it has been since 2005.

[Michael Tomlinson]

I am very grateful to the Secretary of State for his answer. I warmly welcome the fact that the youth employment jobs figures are at near record levels. Will he join me in welcoming the work of the Dorset Young Chamber, which helps to match individual businesses in and around my constituency with particular schools and to bridge the gap between education and employment?

[Damian Green]

I am happy to join my hon. Friend in welcoming the work of the Dorset Young Chamber. I have seen the great work that my local chamber of commerce, Kent Invicta, does in schools. My hon. Friend chairs the all-party parliamentary group for youth employment, so he will be pleased to know that the youth claimant count in his constituency has gone down by 74% since 2010 and by 7% in the past year alone.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

More young people are claiming benefits in Newcastle Central this year than they were last year, and the north-east has the overall highest unemployment rate in the country. Too many of our young people have to leave the region to find good jobs, so when will the Secretary of State make the northern powerhouse a reality for the north-east?

[Damian Green]

We are determined to make the northern powerhouse a reality. As the hon. Lady says, youth unemployment is higher in certain areas than it is in others, but I hope she recognises that youth unemployment as a whole has come down markedly in recent years in her region, as in all others. Some 86% of 16 to 24-year-olds are now in full-time study or work, which is a record high, and the employment rate for 16 to 24-year-olds who have left full-time education is up by 0.4 percentage points in the past year.

[Nusrat Ghani (Wealden) (Con)]

Apprenticeships are solid routes for young people to secure work. What work is the Secretary of State doing with his counterparts in the Department for Education to ensure that all our young people have access to apprenticeships?

[Damian Green]

We work closely with colleagues in the Department for Education to ensure that the Government meet their commitment to having 3 million new apprentices during this Parliament. We are on target for that. In particular, we wish to ensure that apprenticeships are available not only to young people leaving school for the first time, but throughout the age range so that we can make a reality of the phrase “lifelong learning.”

[Mr David Hanson (Delyn) (Lab)]

What would the Secretary of State say to areas such as mine, where youth unemployment has actually risen in the past month? Will he please look at working with colleagues in the northern powerhouse to ensure that the benefits of Government investment are shared across the north-west and north Wales as a whole?

[Damian Green]

I am happy to listen to the right hon. Gentleman’s latter point. One purpose of the northern powerhouse and, indeed—more widely—of the Government’s consultation on the industrial strategy is to ensure that the success of the economy is spread to all regions of the country. I am more than happy to talk to the right hon. Gentleman about any specific points he wants to make on his region.

[Bob Blackman (Harrow East) (Con)]

4. What assessment his Department has made of recent trends in the number of people saving into a pension scheme as a result of auto-enrolment.

[Royston Smith (Southampton, Itchen) (Con)]

6. What assessment his Department has made of recent trends in the number of people saving into a pension scheme as a result of auto-enrolment.

[The Secretary of State for Work and Pensions (Damian Green)]

Almost 7.3 million eligible workers have been enrolled into a workplace pension because of automatic enrolment. This is an unseen revolution; the way people are now saving will lead to more freedom, more choice and more security for the pensioners of tomorrow.

[Bob Blackman]

Does the Secretary of State agree that it is quite clear that many people who would otherwise not save into a private pension will now have a pension for their futures, and that young people, who often do not save for a pension now, will have a secure future in retirement?

[Damian Green]

I agree with my hon. Friend, particularly on his point about young people. The Institute for Fiscal Studies has done some research showing that participation in auto-enrolment among those aged 22 to 29 increased from 28% in 2012 to 85% in 2016. That is a very impressive improvement.

[Royston Smith]

Auto-enrolment has been hugely successful. However, a number of people are still opting out. A business in my Southampton, Itchen constituency suggested that up to 50% of its staff may be opting out. What steps is the Secretary of State taking to encourage people to continue to save for their retirement in a workplace pension?

[Damian Green]

I am happy to tell my hon. Friend that his example is an exception. When the Turner commission reported and suggested this kind of scheme in 2005, it estimated that about 25% of people would opt out, but the opt-out rate is about 10% at the moment. There is always more to do, as my hon. Friend’s example suggests, which is why we are currently conducting a review to ensure that such schemes are even better in the future in order to work for all kinds of individuals, particularly those in small businesses.

[Rob Marris (Wolverhampton South West) (Lab)]

The Library is not able to supply me with any evidence that tax relief on pension contributions—costing £30 billion a year or more—encourages savings. Can the Secretary of State supply me with such evidence?

[Damian Green]

I can supply the hon. Gentleman with evidence that we have transformed saving over the past few years. People have often said that young people in particular do not want to save, but the facts I have just put before the House suggest that that is no longer the case. If the hon. Gentleman is advocating taking away all tax relief for pensions, I would be interested in his ideas—as, I am sure, would his own Front Benchers.

[Alex Cunningham (Stockton North) (Lab)]

Ministers have been clear on the need for transparency in the pensions industry, including in master trusts dealing with auto-enrolment. In his Second Reading speech on the Pension Schemes Bill, the Secretary of State spoke of it. In a speech to the TUC, the Pensions Minister said:

“We have to get transparency. It’s not an option to do nothing.”

On Report in the Lords, Lord Freud said:

“We want pension scheme members to have sight of all costs and charges”.—[Official Report, House of Lords, 19 December 2016; Vol. 777, c. 1528.]

Despite those fine words, all the attempts to deliver on transparency in the Bill Committee were dismissed by the Government, so can the Minister tell the House what they mean by transparency in the pensions industry?

[Damian Green]

The Bill—I note the Labour party did not vote against it on Second or Third Reading, so the hon. Gentleman cannot have objected to it that strongly—actually set up a new system of regulation, particularly of master trusts, that deals with not just transparency but a whole range of aspects, so this relatively new form of financial body is now much better regulated than it was before. I would have thought that the hon. Gentleman welcomed it—actually, he did welcome it.

[James Berry (Kingston and Surbiton) (Con)]

7. What steps the Government are taking to ensure that people with learning difficulties are supported into work.

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[Seema Kennedy (South Ribble) (Con)]

17. What assessment his Department has made of recent trends in the number of people in work.

[The Secretary of State for Work and Pensions (Damian Green)]

The UK labour market is the strongest it has been for years. Over the past year, the number of people in employment has increased by 302,000. The employment rate stands at a new record high of 74.6%. The unemployment rate remains at 4.8%—the lowest rate in over 10 years.

[Seema Kennedy]

I thank my right hon. Friend for that answer. He will agree that long-term unemployment is particularly damaging for a young person. What steps is his Department taking to ensure that no young person falls through the cracks?

[Damian Green]

My hon. Friend is right: long-term unemployment can significantly damage anyone, particularly young people. I welcome the recent employment statistics, which show that 3 million 16 to 24-year-olds are full-time students, and another 3 million have left full-time education and are working. Together they account for 86% of all young people in the UK, the joint highest on record. She is right that there is always more to do, which is why, in April, we are introducing the youth obligation to ensure that young people are fully supported as they progress into work and while they are at work.

[Holly Lynch (Halifax) (Lab)]

20. What steps his Department is taking to ensure that personal independence payment assessments are undertaken fairly and efficiently.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Work and Pensions (Damian Green)]

Today, we published our Green Paper on defined benefit pension schemes. The schemes provide an important source of income in the retirement plans of millions of people. The majority of the nearly 6,000 defined benefit pension schemes are run effectively. We are fortunate to have a robust and flexible system of pension protection in the UK. However, it is clear that experiences differ from scheme to scheme. Some employers are clearly struggling and the system may not be working optimally in all circumstances. The Green Paper is an opportunity to look at the schemes to ensure the system remains sustainable, while still ensuring members’ benefits are protected.

[Justin Madders]

Further to the question from my hon. Friend the Member for Stretford and Urmston (Kate Green) on universal credit inquiries on behalf of constituents, does the Secretary of State not accept that putting in this extra hurdle is disadvantaging people who are in a very vulnerable situation and flies in the face of Information Commissioner guidance?

[Damian Green]

As my hon. Friend the Minister for Employment explained, the data are now held in a different way. They are entirely owned by the claimants, who can and should give any Member of Parliament permission to act on their behalf. With that permission, all of us can do our job, as we traditionally have, on behalf of our constituents.

[Mary Robinson (Cheadle) (Con)]

T5. Last October, the Secretary of State announced that people with severe lifelong conditions would be exempt from reassessments for employment and support allowance. This was welcomed by leading charities in the sector. Will motor neurone disease fall within the exemptions?

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

In April, the Government’s two-child policy will mean that a woman who has a third child after being raped will have to prove that fact if they are to get child tax support. At the same time, the Government are cutting widowed parent’s allowance by an average of £17,000 for each bereaved family. In 2015, that benefited 40,000 children who had lost at least one parent. Will the Secretary of State please think again about these punitive measures?

[Damian Green]

I do not agree with the hon. Lady that the measures are punitive. To take just one of the two that she brought up—bereavement payments—as she knows, this measure is bringing three payments into one. The original system was devised for a world in which women often would not work at all and so needed lifelong support, rather than the extra support that they will be offered after such a tragic event. I think she will find that the new system is much fairer and more effective at providing support when it is most wanted.

[Mr Speaker]

Andrew Rosindell—not here.

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[Naz Shah (Bradford West) (Lab)]

T4. Of the 17,000 sanctions on benefit claimants in Bradford West in the past six and a half years, how many could have been avoided if the Government had the yellow card warning system in place? Why has it not been rolled out nationally, following a successful trial in 2016, and when are this Government going to get it done?

[Damian Green]

We are looking at the early warning system trial that took place in Scotland. We are still evaluating it. We will publish the results of the evaluation shortly. Obviously, we will have to do the evaluation first before we decide what to do next.

[Tom Pursglove (Corby) (Con)]

Last week, I attended two excellent business breakfasts in my constituency—one organised by the Rockingham Forest hotel and the other organised by Corby Business Group. There was a lot of expertise and experience there. In what ways does the Minister think we can use that experience to support young people entering the world of work through mentoring?

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[Mr Peter Bone (Wellingborough) (Con)]

Last week, I visited a number of successful factories in my constituency that were taking on additional employment. Does the Secretary of State agree that our long-term economic plan has worked and that the Opposition Members who opposed it should now be contrite? Does he also agree with me that it is rather surprising that until two minutes ago there has not been a single Liberal Democrat Member in the Chamber?

[Damian Green]

I am not remotely surprised—

[Mr Speaker]

The Minister is not responsible for the presence of Liberal Democrat Members. [Interruption.] If the right hon. Gentleman wants to ventilate, I am sure he will do so.

[Damian Green]

I am grateful for your advice, Mr Speaker, because I would be horrified if I were responsible for the attendance record of Liberal Democrats. I am happy to agree completely with my hon. Friend about the long-term economic plan. Our labour market is in its strongest position for years, which is a tribute to a successful economic policy for the past seven years.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

On behalf of my constituent, Miss Leslie, may I ask the Secretary of State to get personally involved in her case? The victim of a house fire when she was 12 weeks old, she has no hands and has multiple physical problems. In the migration from DLA to PIP, she could not open the envelope telling her to go for her assessment. On 1 February, all her benefits ceased, and on 10 February, her Motability car was taken away. This cannot be right; please help.

[Damian Green]

If the hon. Lady wishes to contact me directly and urgently about that case, we will take it up.

[Mr David Nuttall (Bury North) (Con)]

Does my right hon. Friend agree that there is no evidence to suggest that we are going to lose 3 million jobs, as we were so often warned would happen if we left the European Union? Given the recent announcements that thousands of new jobs would be located in this country by the likes of Google and Amazon, does he agree that this country remains a very attractive place in which to do business?

[Damian Green]

It is perfectly clear that this country is an extremely attractive place in which to do business. I am delighted at the number of big companies—particularly in the tech sector, but in others as well—that have decided to move jobs to this country in recent months, and the Government will do all they can to ensure that that economic success continues.

[John Cryer (Leyton and Wanstead) (Lab)]

Leytonstone jobcentre, in my constituency, is threatened with closure, which has spread alarm and despondency among some of the most vulnerable people whom I represent. The nearest jobcentre, in Walthamstow, is more than 3 miles away, which breaks the Minister’s own guidelines. Will he undertake a proper impact assessment and publish the results?

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[Alison Thewliss (Glasgow Central) (SNP)]

I am astonished that the Secretary of State said that the rape clause was not punitive, given that, in their response to the consultation, the Government said that many respondents considered it

“unacceptable for Government to ask women to re-live the ordeal of a rape just in order to make a claim for benefit.”

Will the Minister and the Government accept that the policy is simply unworkable, and absolutely despicable?

[Damian Green]

I do not accept that, and I do not think the hon. Lady’s description of the exemptions to that clause accord with reality. The system that we are proposing is not remotely punitive; it is entirely sensible and workable.

[Chris Stephens (Glasgow South West) (SNP)]

What plans has the Secretary of State to reduce the cost of telephone calls to his Department, which can now cost up to 55p a minute? Is he still having discussions with the Social Security Advisory Committee, which believes that all telephone calls to the Department should be at no cost to claimants?

[Damian Green]

I am, obviously, in constant contact with the Social Security Advisory Committee. People who phone the Department always have an opportunity to ask to be called back if they do not wish to continue their own calls.

Fraud, Error and Debt Measures

Damian Green Excerpts

Thursday 9th February 2017 Written Statements

[The Secretary of State for Work and Pensions (Damian Green)]

We are committed to ensuring an effective and accurate benefit system, as part of creating a welfare system which is fair to those who use it, and fair to the taxpayers who fund it. An important part of this is recovering money owed to the Government through overpayment of benefits.

Fraud and error in the DWP benefits system is historically low, and at 1.9% is lower than in 2010. Claimant error and official error are at their lowest level ever, and we are protecting taxpayers’ money by recovering a record amount in overpaid benefits. For 2015-16 around £1 billion was recovered jointly by the Department and local authorities, an increase of £70 million since 2014-15.

Using DWP powers to recover tax credits debt

In order to build on this success, today, I can announce that from April 2018 the Department for Work and Pensions (DWP) will recover a segment of HM Revenue and Customs (HMRC) tax credits debt associated with people whose tax credits claim has ended. This is debt that has been subject to recovery by HMRC but where repayment has not been secured.

The claimants who have these historic debts will have previously been contacted numerous times by HMRC and invited to start a voluntary repayment plan. They will also have had the opportunity to appeal and challenge the debt.

From April 2018 DWP will begin to try to recover this debt using a wider range of methods. Where people have not voluntarily made arrangements to repay, this may, as a last resort include recovery directly from earnings. DWP has greater powers than HMRC in this regard.

This initiative helps deliver the Government’s commitment to reform the benefits system and switch to universal credit. During transition HMRC will continue to administer financial support for those with ongoing entitlement to tax credits.

Using data and analytics to identify potential fraud and error

Many people rely on the benefit system for support—it provides a vital safety net for people who are out of work, people with disabilities, those who are carers, bringing up children, retired, or on low incomes. So it is vital that we protect it from the very small minority who try to claim taxpayers’ money they are not entitled to.

According to the most recent fraud and error national statistics around £110 million is lost annually to DWP as a result of fraud and error relating to undeclared partners. The most up to date information (financial year 13-14) suggests around 1.5% of income support (IS) expenditure is overpaid annually as a result of a partner not being declared appropriately.

We will engage with an external data provider to identify benefit claimants thought to be most likely to have an undeclared partner more effectively. We expect that this will provide more and better evidence to enable us to identify high risk cases. The data provider will not have any contact with claimants directly or any decision making authority. All cases will be progressed through the existing DWP fraud and compliance processes.

We expect to award a contract for around 18 months and will evaluate its effectiveness in order to inform decisions about whether this type of data matching provides a useful indication of undeclared partners for future use in the universal credit system.

[HCWS474]

“Fuller Working Lives: A Partnership Approach”

Damian Green Excerpts

Thursday 2nd February 2017 Written Statements

[The Secretary of State for Work and Pensions (Damian Green)]

Today, we are publishing “Fuller Working Lives: A Partnership Approach”, a new employer-led strategy which outlines the demographic change facing the UK and the opportunities and challenges an ageing workforce present for employers, individuals, Government and for wider society.

We are living on average almost a decade longer than our grandparents. While this is good news, it also has implications for employers and the economy, as well as people’s own personal financial security, health and wellbeing.

In 2010, one in four of the working age population was aged 50 and over; and this is projected to increase to one in three by 2022. By 2035, people aged 50 and over will comprise half of the UK adult population (source: ONS (2014) population estimates and 2014-based population projections). Fuller working lives are important for individuals, employers and the economy.

For individuals, analysis shows that by delaying retirement until 65 instead of 55, a male average earner could have £280,000 extra income and might increase his pension pot by 60%. By retiring at 63 instead of 55, a female average earner who took a 10-year career break, could have £180,000 extra income and might increase her pension pot by 50% (source: DWP modelling, “Fuller Working Lives Evidence Base 2017”). Moreover, being in appropriate work is good for an individual’s health, both physical and mental.

For employers, in order to meet future demand it will be increasingly important to recruit, retain and retrain older workers. Over the next five years to 2022, there will be just under 2 million more people aged 50 years and over and 300,000 fewer people aged 16-49 (source: ONS (2014) population estimates and 2014-based population projections). We particularly want to support older workers to remain in and return to the labour market; one in four men and one in three women reaching state pension age have not worked for five years or more.

For the economy, adding just one year to people’s working lives could add 1% to GDP per year; that would be equivalent to £18 billion in 2015, according to ONS data (2015).

Leading employers have worked with us to identify the steps needed to ensure the retention, retraining and recruitment of older workers. The new strategy sets out the case for action business to business, as well as the importance of fuller working lives for individuals and the key actions that Government are taking. It is underpinned by analysis of the attitudes, behaviours and experiences of individuals and employers which are integral to the achievement of the fuller working lives ambition. To support individuals aged 50 years and over to remain in and return to the labour market and tackle the barriers to doing so.

I will place a copy of this strategy document and supporting evidence base 2017 in the Libraries of both Houses.

[HCWS448]