Welfare Reform and Work Bill

Debate between David Burrowes and Eilidh Whiteford

Tuesday 23rd February 2016 Commons Chamber

[Mr Burrowes]

I will speak to Lords amendments 1, 8 and 9. Let us be realistic: we can get involved in adversarial politics on poverty, but we are all in the same business of wanting to alleviate child poverty. Whether or not Lords amendment 1 is agreed to, we need to recognise that it would not in itself transform the lives of children in poverty. Similarly, the previous Government’s focus was on income-related measures, but they were not in themselves going to transform child poverty.

The issue could be used, as it was in the speech by the hon. Member for Bishop Auckland (Helen Goodman), to parade the child poverty credentials of the previous Labour Government. We could spend our time—we have not got much time—criticising that approach and saying that it did not get to the root causes of poverty and truly transform the outcomes for those most in need.

Lords amendment 1 is about reporting data and about how to focus activity, including Government measures, on those who are most in need. We need to ask what will focus Government policy on this issue like a laser. Despite some of the lurid claims, not least those made by the hon. Lady, the policy was not in any way a device to hide cuts. Let us get rid of that idea, because that is not what this is about. This is about making a genuine attempt not so much to redefine child poverty, but to refocus attention on its root causes.

As has been seen during the long passage of the Bill, this reiteration of the policy has had cross-party support, as well as support from many NGOs involved in fighting child poverty, particularly the Centre for Social Justice, which has worked hard in this area. The right hon. Member for Birkenhead (Frank Field), the Chair of the Work and Pensions Committee, hit the right tone. We want to ensure that we do not distract attention from what is needed to transform people’s life chances. That is what the issue is about.

I am concerned about what Lords amendment 1 would do. This well-intentioned amendment received support from many in the other place, but it would go back to and reintroduce arbitrary measures. Such points have been made—I will not repeat them—by my hon. Friends the Members for Torbay (Kevin Foster), for North Devon (Peter Heaton-Jones) and for Sutton and Cheam (Paul Scully). For example, Lords amendment 1 would risk the reintroduction of measures based on current parental income, which would take away the focus on raising attainment and on increasing life chances for disadvantaged children.

I do, however, have a way forward to propose. I cannot deal with it in relation to Lords amendment 1, which will simply reintroduce child poverty measures with all their failings, but we must look for such a way that recognises the potential opposition in the Lords. As we all acknowledge, financial poverty has a significant effect on life chances. We cannot ignore that, and Government publications on such measures have proved that point. We must therefore look at how to make reference to financial poverty, but keep the particular focus on tackling the risks to life chances.

Eventually, if the Bill goes back to the other place, I propose that consideration is given to an income measure that will act not as a focus in itself, but as a gateway to other measures, and that will ensure Government policy is directed, as it currently is, to those most in need of support. We should consider introducing a gateway measure for families based both on whether they have a low income and on life chances risk measures, with a particular focus on those in permanent poverty. It would ensure that maximum support is given to those stuck in poverty, and that the Government focus on those who are most in need.

Briefly on Lords amendments 8 and 9, I share the concerns that were well rehearsed by my hon. Friends the Members for South Cambridgeshire (Heidi Allen), for Stevenage (Stephen McPartland) and for Stafford (Jeremy Lefroy). We met the Minister together. I recognise that the Minister and the Secretary of State have a genuine commitment to this as a reforming measure. We really need to get the White Paper out there so that the Government’s commitment to reform can be seen clearly.

I recognise that the WRAG is not fit for purpose, as only 1% are getting into work, but it does have a purpose. It has a purpose for the most vulnerable individuals, for whom the financial element of £30 really matters. The way we show our compassion is in how we treat the few, not the many. For those few people, that £30 will have a big impact on their lives. Whether we like the WRAG or not, whether we think these people should be in the support group, which they may well be moved into, or benefit from PIP, they are concerned about the loss of this payment. When dealing with those with progressive illnesses, remitting illnesses or mental health conditions—the Government’s commitment of £1 billion of investment is wonderful—what we do must be matched by careful concern.

As we move towards 2017, with the flow of new applicants, we must do all we can to reassure everyone that we are in the business of reform. We must not only enable more people to get into work, but deal with the practical elements. My hon. Friend the Member for Stafford mentioned energy costs. That is undeniably an issue that must be dealt with practically. I will support the Government tonight, but we must get the White Paper out and show our practical support in meaningful ways before 2017.

I will hold the Government to account, as will my hon. Friends, to ensure that we deliver. We must show that we are on the side of these people, we must show our compassion and we must do all we can, for example through Disability Confident events like the one that I have on Friday, to show that we are on this in a way that previous Governments have not been. We must show that we want to see people’s lives transformed through work, but also that we will support people with the safety net, which we are proud of. Even after the WRAG measures, we are more generous than the previous Government were in relation to the disabled. We must not be deflected from the task of supporting people into work and supporting people in the safety net. It is not a pull factor—let us not make that case. We want to reform the measure to ensure that it really works for people who need support and are not able to get into work immediately, but let us keep our focus, as the poverty measures will do, on those who are most in need. I will hold the Government to account over the coming months to ensure that they really mean what they say.

[Dr Eilidh Whiteford]

Earlier today, I attended the vigil outside Parliament that has been organised by Disabled People Against Cuts to draw attention to this debate and to urge the Government to listen to what the House of Lords said about the cuts to support for disabled people and to accept its amendments. I will focus on Lords amendments 8 and 9.

The proposal to reduce employment and support allowance for WRAG by about £30 a week for new claimants has been a focal point of this debate, precisely because the Government promised that they would not cut the support for disabled people and yet are doing exactly that. They have done it indirectly through policies such as the bedroom tax and the inclusion of carer’s allowance in the benefit cap, on which I am glad the courts have forced a U-turn; and they have done it directly through cuts to the independent living fund, DLA, Motability and Access to Work. Now, they are cutting direct financial support to disabled people through the measures in this Bill. They are putting sick and disabled people on the frontline of their austerity agenda, hitting the incomes of those who are already disadvantaged. These people are being asked to take the biggest hit, even though they had the least to begin with.

The first critical point that we need to understand today is that to receive ESA, a person has to be assessed as unfit for work. Believe me, the bar on that is already pretty high. People who are too sick or disabled to work are placed either in the support group, meaning that they are not expected to look for work, or in the WRAG, where it is recognised that they have only limited capacity, but could potentially undertake preparatory activity with a view to returning to the labour market at some point. So let us be quite clear: the people who are set to lose out from the Government’s £30 a week cut to ESA are people who are not able to work because of their health.

That is why the Chancellor was talking nonsense when he spoke about this measure removing “perverse incentives” in the benefits system. It is his logic that is perverse, although his choice of language is damning and revelatory. If someone is seriously sick or disabled, reducing their income will not make them better quicker. There is not a shred of evidence to support that ill-founded fantasy, but there is plenty of evidence that financial worries and the stress associated with work capability and PIP assessments have a negative impact on people’s health. A large and growing body of evidence suggests that hardship and stress slow down recovery and push people further away from the labour market.

Some people affected by the proposed cuts will have faced long-term disadvantage because of a serious health condition or disability, and they may find it difficult to access the labour market or sustain employment. In contrast to ESA, jobseeker’s allowance is for the most part a short-term benefit. Depending on the state of the economy, the vast majority of jobseekers move off JSA in a few weeks or months, but those with long-term health conditions and disabilities are far more likely to face long-term unemployment. The barriers we face are very real, and many people will have to live on extremely low incomes for lengthy periods. Many also incur extra living costs simply because of their condition or disability.

Having to get by on an extremely low income for an extended period is one factor that entrenches poverty among disabled people and those with long-term illness. People use up their savings and end up selling their assets, and they depend on others. The poverty experienced by disabled people is well documented, but it often becomes family poverty as other family members try to support loved ones financially from their own incomes, while providing unpaid care that limits their own earning potential.

The cuts to ESA will cause real hardship and are quite unnecessary. They are based on a flawed and frankly offensive misconception that people with serious long-term health conditions are malingerers who need to be prompted into work with “tough love”. A large proportion of the people who rely on ESA are those who have become disabled or developed a condition in adult life—people who have paid taxes and national insurance contributions for many years previously, with the perfectly reasonable expectation that if they become unable to work for health-related reasons, there will be a safety net for them. That safety net must take realistic account of the extra costs of living with disability, and to reduce support is callous and plain wrong. Even the Lords recognise that, and the Government must acknowledge it and think again.

The Lords also expressed concern about the implications of universal credit for working disabled people. We know that disabled people are more likely to work in low-paid jobs, and they are at higher risk of living in poverty. The disabled worker element of working tax credit currently provides support for disabled people who are in work to cover the extra costs that they incur by holding down a job—costs that in some cases would otherwise make it financially disadvantageous to be in work. With the move to universal credit, the loss of the limited capability for work element to everyone except those in the support group means that a lot of working disabled people will be around £1,500 worse off every year. Among those who will be worst affected are disabled working parents who currently receive the disabled worker’s element of working tax credit. Under universal credit, disabled working parents will lose that extra support.

Around 43,000 families in the UK with at least one working disabled parent will take a substantial drop in income when universal credit is rolled out. As Baroness Tanni Grey-Thompson pointed out in the Lords, a couple with two children and both parents working in low-paid jobs, where one parent has become disabled, could receive a massive £3,000 less in 2017. The Government say that they want to improve employment support for disabled people, but slashing the incomes of those who are already in work, and who depend on that support to keep them in work, is not the way to go about it. Surely the Government have learned lessons from the failure of the Work programme—we have heard quite a lot about that today, and I think they acknowledge that it has not worked.

Surely it is far more effective, empowering and dignified to provide extra support directly to working disabled people, so they can spend it on the transport or equipment that they need to make work viable for them. Instead, the Government seem to think that it is more effective to take money out of the pockets of working disabled people, and give it to highly paid executives and private sector companies to tell those disabled people how to stay in work, without any of the resources to back that up. It makes a mockery of the Government’s claim that they want to support disabled people into work.

The Government have based their whole argument on the notion that work is the way out of poverty, but they have conveniently ignored the fact that two thirds of children in poverty have parents in work, and that the introduction of universal credit will leave millions of working families financially worse off. The Minister’s claim that the Government want to support disabled people into work would be a lot more plausible if they had not already cut the independent living fund, mobility allowances and DLA—the very forms of support that help disabled people to get a job and stay in work. The Government now plan to cut support for working disabled people on universal credit. Their position is simply not credible.

If the Government choose to ignore the Lords today and push ahead with these measures, it will be testament to an arrogance and unwillingness to recognise the needs of disabled people that has already seen them dragged through the courts for indirect discrimination. The Lords have made eminently reasonable amendments to the Bill that would ensure that those who need support get support at perhaps the most difficult time of their lives.

I urge Conservative Members who are wondering what to do this evening to take heed of the experiences of sick and disabled people in their own constituencies—maybe even in their own families—and support the Lords amendments in this group this evening.