Universal Credit

Debbie Abrahams Excerpts

Monday 7th July 2014 Commons Chamber

[Glenda Jackson (Hampstead and Kilburn) (Lab)]

If ever a debate title were a misnomer, it is this one, because it should be “The failure to implement universal credit”. Failure is pretty much par for the course for the Department for Work and Pensions, certainly in the implementation of its policies, which aim to reduce costs to the benefit of claimants and taxpayers. My hon. Friend the Member for Aberdeen South (Dame Anne Begg), the Chair of the Select Committee, has detailed the fantastic amounts of public money that have already been lost in a failed IT system. She has also touched on the unwillingness of Ministers in the DWP to answer questions from the Select Committee. I point out in passing that every Select Committee is appointed by this House of Commons, and its sole purpose is to scrutinise the Department which bears the same name.

We see constant failure in the implementation of the work capability assessment. On four occasions, Professor Harrington has attempted to ameliorate the agonies which individuals who are subjected to the work capability assessment are put through, yet we are still receiving letters from our constituents detailing the humiliating experiences. This is a really serious matter. An individual claimant can be sanctioned for failing to attend a work capability assessment. We have all had examples from constituents of the letter detailing the appointment arriving two or even three days after the specified date. We have also heard about those who have turned up for the assessment only to be told by the assessors, “Sorry, we can’t take any more people today.”

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

As usual, my hon. Friend is making a passionate speech. I have mentioned this story before, but let me repeat it. One of my constituents was sanctioned for having a heart attack during his work capability assessment. The nurse undertaking the assessment told him he was having a heart attack, but he was still sanctioned.

[Glenda Jackson]

It is not usual for me to be gobsmacked, but I certainly am by that story, even though I have heard from constituents who, while not necessarily experiencing heart attacks, have had absolutely disgraceful treatment. We are also seeing a rise in the number of appeals concerning employment and support allowance, and the appeals that have been lodged are taking longer and longer to come to a conclusion. I will not go into the whole debacle of the personal independence payment, but it is simply scandalous that some of the most vulnerable people in our society, whom the DWP is supposed to be assisting, are being left in many instances with no financial support whatever. To add insult to injury, this Government have also reduced the funding of local authorities. Many local authorities were absolutely central to ensuring that people with disabilities could live human, productive lives. That money has now been taken away.

I hope to bring home to the Chamber the absolute chaos out there at the moment, and to concentrate on the questioning that an individual claimant has to go through and the kind of questioning to which the Secretary of State responds. It is clear that he is burdened with delusions of adequacy, but some of his responses to my hon. Friend the Chair of the Select Committee at his most recent appearance in front of us were absolutely disgraceful.

Let me detail the experience of an individual claimant. A 71-year-old pensioner, dubbed by Her Majesty’s Revenue and Customs to be self-employed, applied for housing benefit. It has now taken 17 weeks and still there is no final cut-off point where she has been assured that she will receive housing benefit. The most recent inquiry that came to her was to detail the cost of a bill of £3.40; the second was to detail the cost of a bill of £7.47. Both of those claims took place in 2012. The mind boggles at that, when the Secretary of State, who has lost millions and millions of pounds on a failed IT system, has categorically refused to give the Select Committee any detail whatever about his newly trumpeted business plan. He has refused to discuss the costs of the plan or whether there will be any direct savings either to the taxpayer or to the overarching benefit system. It is an absolute disgrace that the Select Committee, which has been appointed to scrutinise the DWP, is being buffeted away. It seems that the Department is opting for some kind of bunker mentality, but it will not work.

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

Although I have huge regard for the hon. Member for Newton Abbot (Anne Marie Morris), I must disagree with some parts of her speech, most notably because there has been a swathe of errors not just in universal credit but, as we debated last week, in the other programmes for welfare reform. My hon. Friend the Member for Hampstead and Kilburn (Glenda Jackson) remarked on the unfortunate way in which the welfare reforms have been framed and debated in the media, including irresponsible press releases that perpetuate the vilification of people on benefits and paint them as the new undeserving poor. I have found that deeply offensive and such an approach has been used in Ministers’ speeches. Many people have found that offensive.

[Anne Marie Morris]

The hon. Lady is a fine contributor to our Select Committee and adds a lot of intellectual rigour and brings a lot from her previous background. My challenge is: would it not be lovely if we could control the media? She is absolutely right, I am sure, that some inappropriate things have been said by the wrong people, but when it comes to who said what and whether what is reported in the press is true, I find it a very hard leap of faith to make to accept her other point. I do not believe that any member of the Government would wantonly wish to put out any message in the way that she describes—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The hon. Lady has already had 14 minutes. Let somebody else in—we need short interventions.

[Debbie Abrahams]

Language such as that about “shirkers” and “scroungers” has been used in the House by Ministers, and I reiterate that I find this deeply offensive.

If we consider welfare reforms in the round, we can see that there have been huge errors in how they have been delivered. If we consider them in the context of other reforms to the welfare state, we can see that we are experiencing a decimation of the welfare system that was set up after the second world war, with people who are sick and disabled through no fault of their own increasingly being denied access to a basic standard of living. In addition, the changes to access to health care and to justice are also affecting benefit claimants and because of the changes there has been a 20% reduction in the number of benefit claimants whose appeals are successful. We need to look at the situation in the round. I find it disappointing that a debate such as this is not seen in the context of everything else that is going on.

On the implementation of universal credit, I do not understand how the Secretary of State can still be in a job. Mistakes and errors have cost hundreds of millions of pounds of taxpayers’ money. That has been accompanied by cover-up and claims that the system has been reset.

I endorse all the positive comments that have been made about the Chair of the Select Committee, my hon. Friend the Member for Aberdeen South (Dame Anne Begg). She is a fantastic Chair, always allowing people to engage and giving them the opportunity to speak, but she has been shown such disrespect. If anybody has not seen how the Secretary of State behaved in that Select Committee meeting in February, I invite them to watch it. It was a disgrace.

[Dame Angela Watkinson]

I thank the hon. Lady for allowing me to intervene. I hope she will also allow that the Secretary of State was sorely provoked. If we are going to look at the behaviour of one person, we need to look at the behaviour of others who took part in that exchange.

[Debbie Abrahams]

I am sorry, I do not agree with that. The exchange is on record and people can watch it. It was clear that when the Chair of the Select Committee asked in February why we had not had the information that was available, the democratic role that Select Committees play in our parliamentary system was ignored. The response to the Select Committee’s report is a further justification for my comments. I am not alone in my views. There has been criticism from the Major Projects Authority and the National Audit Office.

[Mr Jim Cunningham (Coventry South) (Lab)]

The previous Conservative Government had form in this area, particularly in relation to benefits, although my hon. Friend probably was not in the House at the time. We heard a lot of ballyhoo about the horizon project, but at the end of the day it cost billions to put right. Again, it was the people on benefits who suffered as a result. The Conservatives have form. They come up with all sorts of excuses over the years, and claim to be compassionate. They are not. We have only to look at people with disabilities, who still have to go through medical tests.

[Debbie Abrahams]

I am grateful to my hon. Friend. No, I was not in the House at that time. We recognise that we did not get everything right either—I am sure there will be an intervention about that—but this Government and this Secretary of State are now in power. It is their programme that we are scrutinising and it is a categorical failure. It is a mess. I have spoken about the waste of money. The Major Projects Authority said that there have been so many changes to universal credit that it cannot be seen as the same project: it must be seen as a new project.

As I said last week, and as was mentioned also by the Chair of the Select Committee, we started off with four pathfinders, including one in my constituency, Oldham. Those were announced in 2011 and were meant to be followed by a national roll-out in October 2013. On the day that the Secretary of State was supposed to provide evidence to the Select Committee, we learned that there was not to be a roll-out. Again, he was very indignant that we were questioning him about that. It was appalling arrogance.

As we have heard, there are supposed to be 7.7 million people on universal credit when it is fully implemented. Currently about 6,000 people are on it. The Secretary of State thought it was highly amusing when I asked him last week how long it would take at the present rate for 1 million people to be on UC. It is a matter of simple maths. Perhaps he, like the Chancellor, has problems with that. The answer is 2091. The Secretary of State did not like answering that.

Last September the National Audit Office reported IT problems that the Government had known about for 18 months but had failed to tell us about. That is deceptive and dishonourable. Some £40 million spent on software has had to be written off and a further £91 million written down. Good money is being poured after bad as the Government continue to spend £37 million to £38 million on the old IT system, while at the same time spending extensive sums on an end-state solution or, as it is now called, enhanced digital—whatever.

In addition to saying that it was now treating universal credit as a new project, the MPA, together with the NAO, reported its concerns on significant issues of governance, transparency, financial controls over supplier spending, and ineffective departmental oversight. It could not get worse. How is the Secretary of State still in his job? In any other profession, he would have gone. Why is he still there?

We supported and still support the principles of a simplified benefits system and one that makes work pay, but whether that will happen is questionable. There is real concern that the aim of making work pay will not be achieved. Recent evidence has shown that by 2018 cuts to the basic and work allowances will mean that universal credit is £685 a year less generous for a lone parent with two children, saving the Government £1.7 billion a year. There are also concerns that UC will weaken the incentive for second earners in couples to work. One in five children in poverty now lives with a single-earner couple. Ensuring that more second earners, principally women, are able to take up employment will be critical to reducing child poverty rates. Finally, the decision to leave council tax support out of universal credit means that the aim of simplicity is being undermined, with many claimants facing two rates of benefit withdrawal when they move into work or when their income increases.

The introduction of universal credit has been a car crash—a demonstration of how not to implement policy and of how the policy intention of making work pay is failing. This Government and this Secretary of State are failing to reform our welfare system. Of course, we need to make sure that welfare spending is not profligate, but in reforming our welfare system so that it is fit for the 21st century, we must remember why we developed our model of social welfare, retaining its principles of inclusion, support and security for all, protecting any one of us should we fall on hard times or become sick or disabled. It is a hand-up, not a hand-out.

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[David Mowat]

As I said, I have not been serving on the Select Committee and I have not heard about the confidence she mentions. My point is that decisions are made during the life cycle of a programme that effect changes, and if, every time that happens—

[Debbie Abrahams]

There was a two-week difference between the Department saying that everything was fine in a memo that we received and the NAO’s publication of its cataclysmic report condemning what the Department is doing. Is that the sort of time scale that the hon. Gentleman has in mind?

[David Mowat]

I do not know, because I was not aware of that. The hon. Lady’s intervention, like much of her speech, is along the lines of, “We’re doing our job; if only the Secretary of State would do his job and hurry up and get this delivered, everything would be all right.” My substantive point is that delivering this application is harder than delivering the Olympics, and it behoves all of us to get behind the 1,000 or 2,000 people who are trying to do it. That is not to say that individual mistakes have not been made. There have almost certainly been lots of mistakes; it would be odd if there had not been.

As to progress, the issue is not that things have not been done; it is what we do now and how we deal with it. I am going to be kind to the Opposition and talk about the Olympics rather than the national health service project that wrote off about £10 billion. The Olympics was a joint success—a success for our country—and yet its budget increased by a factor of four. When the right hon. Member for Dulwich and West Norwood (Dame Tessa Jowell) came to the House and announced that the budget was going up by a factor of four, Members on both sides of the House, broadly speaking, tried to understand why that had happened, accepted it, and knuckled down to get the project delivered. In the end, there was not a cigarette paper between the two parties in terms of the approach to that project of national significance—as this one is. The Secretary of State and his team are trying to do a very difficult thing in delivering this application, to be used by 10 million people, in parallel with existing systems which, every week, continue to be used by 10 million people. Of course mistakes have been made; as I say, it would be odd if they had not. The issue is whether, on the whole, it is being managed correctly and whether, structurally, we are doing the right thing.

I had thought that Labour supported the basic tenets of universal credit, but some of the comments by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) about scope implied that she has severe reservations. She may be right; I am not an expert. It seems odd that Labour Members are raising issues such as scope at such a late stage of the programme. To some extent, they are the Opposition and perhaps it is reasonable that they oppose, but there is a difference between opposing and what I would call opportunistic carping—not only that, but opportunistic carping that is destructive, not constructive.

That brings me to Labour’s four-point plan, to which Mr Baldrick would have been delighted to give his name. Point 1 is to stop the programme and think about it for three months—not to review it, not to stop rolling it out, but to stop it completely. It is not totally clear to me what they would be stopping—development, implementation, the front end, the legacy systems and interface work, or perhaps all of it. It is not totally clear to me what they would do with the 1,000 people—to take a round number—who are currently doing all these tasks. They are saying, “No, let’s just stop it, with an immediate write-off of all that.”

Point 2 is to get the NAO to have a look at the programme. That is fair enough; one cannot argue with asking the NAO to look at something. Of course, it would have to use people with expertise in programmes of this type, of whom most of the good ones are in the civil service and working on this programme. Nevertheless, let us do it anyway.

The really interesting thing about the plan is points 3 and 4, which represent major, significant scope changes. If we make such changes to a programme right near the end, that is when everything goes wrong—when things have to be retested, budgets change, and all the rest of it. The great thing about these major scope changes is that, according to the four-point plan, they will be done at “no additional cost”. The two points propose to remove some of the onus on self-employed people and to continue to pay the primary carer.

On the train this morning, between Watford and Euston, I costed Labour’s four-point plan at £89,611,207.31. That costing—I am very happy to take an intervention on it—includes 11 new applications, 47 new screens, 190 database changes, 201 reports, a 40% test rerun, and 88 new interfaces. I may have spent only 11 minutes on the calculation to come up with that number, but that is 11 minutes more than Labour Members have spent on putting it into their plan and saying they can achieve it with “no additional cost”. I would be delighted if one of them wants to intervene on me—but intervention came there none.