Jobcentre Plus

Debbie Abrahams Excerpts

Thursday 10th July 2014 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Mr Amess. It is also a pleasure to follow my colleague on the Select Committee, the hon. Member for Newton Abbot (Anne Marie Morris), who, as always, made a balanced speech. I am particularly pleased to speak on behalf of my constituents, many of whom are claimants and use their Jobcentre Plus, but I also speak on behalf of those who work within the Jobcentre Plus network and more widely within the Department for Work and Pensions system. I have been contacted by a number of people since the Select Committee started looking at this issue, and I want to air their views as well.

My speech will focus on sanctions, which both the previous speakers have touched on. The Select Committee’s report raised concerns on whether sanctions are being applied

“appropriately, fairly, proportionately and in accordance with the rules, across the Jobcentre network.”

The principle of conditionality has been accepted across all the parties represented in the Select Committee and beyond. It is that if claimants are receiving financial support from the state, there are conditions around that—on job search and on having regular meetings with jobcentre advisers, for example. That principle is long established and has in recent years been extended to involve financial penalties or sanctions being applied to the claimant, with benefit payment being stopped for a limited period if the conditions are not met. Even more recently, it has been extended to people who are sick or disabled, who can have work preparation conditions, with associated sanctions, applied to their benefits.

As many know, two thirds of those who receive social security payments are in work. The Government have already mooted that in-work conditionality and conditionality for in-work social security payments is likely. We should remember that and reflect on the particular issues we are facing with those on out-of-work or ill-health payments. The Welfare Reform Act 2012 introduced a new regime of sanctions. Instead of a maximum of six months of sanctions, the maximum period of a JSA benefit sanction is three years. The minimum is a month. Under the previous system, people could perhaps tide themselves over for a week’s sanction—they might have been able to borrow off family members or friends. A month, however, is a different kettle of fish. Later, I will come on to what that change means for so many individuals and families.

Many fair-minded people would say, “If you’ve done something wrong, it is only right that you should be punished for it.” That was raised by the Committee and has been mentioned today. My colleagues and I, however, have received overwhelming evidence, and investigative journalists have highlighted, that people are being sanctioned for doing nothing wrong at all. They are being set up to fail.

A whistleblower—a former JCP adviser—came to my constituency office and said that stitching up claimants was part of the job. He referred to a “bullying” culture, driven from above, in which claimants were constantly harassed to get them “off flow”, off benefit and off register. If advisers resisted pressure from managers, they were issued with a performance improvement plan, which is the start of a disciplinary procedure. Targets were set for advisers to cover targets for decision makers, resulting in perverse behaviour. He described advisers setting claimants up to fail, including making appointments about which they had no knowledge so that they were automatically sanctioned when they did not turn up. That is absolutely outrageous and there is growing evidence that it is happening up and down the country.

Another whistleblower from the midlands this week reported the pressure that she is under to meet targets to push people, including the sick and disabled, off benefits, such as being told to “disrupt and upset” claimants. The article states:

“Managers repeatedly question them on why more people haven’t been sanctioned. Letters are sent to the vulnerable who don’t legally have to come in, but in such ambiguous wording that they look like an order to attend. Tricks are played: those ending their contributory entitlement to a year on ESA need to fill in a form for income-based ESA. But jobcentres are forbidden to stock those forms. These ill people’s benefits are suddenly stopped without explanation: if they call, they’re told to collect a form”—

but of course the jobcentre does not stock them. The article continues:

“If someone calls to query an appointment they are told they will be sanctioned if they don’t turn up, whatever. She said: ‘The DWP’s hope is they won’t pursue the claim.’”

It is shocking.

Figures for the new sanction regime introduced at the end of 2012 show that sanctions have increased by 11% on the same period and that 1.35 million people on JSA were sanctioned in the first six months, with 553,000 upheld on appeal. For the same period, 11,400 people on ESA were sanctioned, including a constituent of mine who had a heart attack in the middle of a work capability assessment. The nurse said, “You’re having a heart attack. We’re going to have to stop. You’re going to have to go to hospital.” He received a letter two weeks later to say that he had been sanctioned.

The work that Citizens Advice in Manchester did on the effects of benefit sanctions on claimants showed that 40% did not receive a letter informing them of their sanction; they just had their money stopped. Over half of claimants said that they had not received any information about how to appeal.

When the Minister attended the Work and Pensions Committee in November, I asked her how sanctioned JSA claimants would affect JSA claimant figures and she said that, as long as they kept signing on, they would be counted. What she did not say, however, is that the Department does not keep such data. No one knows how many sanctioned JSA claimants keep signing on. If more than half of those sanctioned do not know that they can appeal, how many will know they need to sign on stay on register? Will JCP tell them? I would query that. I did some basic maths: taking the May JSA claimant figure, if 5% of 1.09 million people are sanctioned every month, the actual JSA claimant figure would be 1.147 million. It is apparent how the number can be distorted because the actual JSA claimant figures are not being kept.

I also asked the Minister whether she would commit to a second, broader independent review, as mentioned by my hon. Friend the Member for Aberdeen South (Dame Anne Begg), to look at inappropriate sanctions. At the time, she agreed. The Work and Pensions Committee certainly believed she had—it was one of our recommendations—but it is disappointing that the commitment has since been reneged on. I ask the Minister once more whether she will commit to that important piece of work in light of the compelling and growing evidence that has come forward since our inquiry and the potential distortion of the JSA claimant count.

The impact of benefit sanctions on people’s lives is becoming well documented. The Trussell Trust, which runs so many food banks up and down the country, cites benefit changes and delays, including sanctions, as the main reason why people visit it needing help. People are not able to feed themselves and their families. The principle of social security conditionality is well established and supported, but it needs to be examined in the round, as my hon. Friend said, to ensure that it is effective and produces the desired behaviour.

[Stephen Timms]

My hon. Friend is making a powerful case. Regarding the documentation of problems with benefit sanctions, has she seen the website devoted to the topic? It is entitled “A Selection of Especially Stupid Benefit Sanctions” and contains a raft of ludicrous examples, including the case of her constituent not completing his work capability assessment because he had a heart attack in the middle of it.

[Debbie Abrahams]

I have seen that website. Following the inquiry and people becoming more aware, a whole raft of unbelievable examples are coming forward.

As I said, the principle of social security conditionality is well established and supported, but the reports of punitive, unfair and inappropriate sanctioning and bullying behaviour in JCP offices should be a cause for concern. I urge the Minister not to turn her back on the issue and the people it is affecting this time and to do the right thing by committing to an independent review of inappropriate sanctioning.

--- Later in debate ---

[Pamela Nash (Airdrie and Shotts) (Lab)]

Let me echo my colleagues and say what a pleasure it is to serve under your chairmanship again, Mr Amess.

I will not replicate my colleagues’ remarks about the report, but it will not surprise Members to hear that I agree with the vast majority of it. I congratulate the Committee’s Chair, my hon. Friend the Member for Aberdeen South (Dame Anne Begg), on all its work, but particularly on this report and on giving us the opportunity to debate it today.

The first issue I want to concentrate on is support for claimants with health conditions and disabilities. In one of the report’s recommendations, the Committee asks the Government to take urgent action to improve the level of jobcentre support for claimants with health conditions and disabilities, including by addressing unacceptably high work-related activity group case loads.

One of the most heart-breaking things I have seen in my four years as a Member of Parliament is the number of people coming to my surgery, or requesting a home visit because of their health conditions, who it is clear—even to the naked eye—are not fit for work, but who are still put in the work-related activity group for ESA. Let me give one example from my constituency, although it represents the stories of many other people there. My office spoke this morning to a constituent who wants to remain anonymous. She is 59, and she had to stop work due to ill health. There has been a series of errors since she applied for ESA.

My constituent, who suffers from arthritis and panic attacks, among other health conditions, attended an assessment, but she did not receive a copy of her assessment report afterwards—I have heard the same point made repeatedly over the past four years. She was just told that she had “passed” the medical. Does that mean that she is healthy, or that she will receive the benefit? It is an ambiguous term.

My constituent was given no information about the difference between contribution-based and income-based ESA. After 365 days, she was moved from one to the other with no notice. The only indication that something had changed was the unexpected drop of £118 per week in the amount of money going into her bank account. That is an extremely large amount for a low-income household.

I will not go any further, because I may be drifting a little from the report, but I ask the Minister to look at what has been a recurring theme today: the data and analysis available on the success of jobcentres and the DWP. Will she publish more information so we can look at the problems? If we do not know what they are, how can whoever is in government seek to fix them?

Another issue is support for those in the work-related activity group. There are some who clearly should be in that group. However, the type of work they can do is severely limited, although they might be able to work with the correct support. My understanding is that that is exactly why this policy is in place—to allow these people to go back to work. If they can contribute, therefore, they should be supported so that they can do so. However, the Committee’s inquiry found that relatively few resources were devoted to providing that support in jobcentres; in fact, the figure is one adviser to every 600 claimants. Is the Department looking at improving the support available to help these people back to work?

Another issue related to ESA, which I became aware of recently, is the actual average clearance time. The headline figures for ESA show that, since the Government came to power, waiting times have gone down. However, I asked the House of Commons Library to look into that, and it told me that the figure relates only to the time between a new claim being made and a decision being taken on whether the person should have an assessment. The total time, if we look at how long people have to wait for a work capability assessment, is 118.9 days on average. What is the Department doing to bring that figure down?

I want to say something briefly about sanctions. Again, I will not replicate what has been said, and I agree with much of what my colleagues have said. However, I would ask the Minister to comment on the repeated claims from Jobcentre Plus whistleblowers, which we have heard about in the press and here today, that there are quotas or that there is pressure on staff to impose a certain number of sanctions on their client base.

I also want to talk about the fact that there are no crisis loans any more, with the localisation that was touched on in the report. In Scotland the Scottish welfare fund is the replacement, but that specifically may not give money to people who have been sanctioned. I simply want to put the question to the Minister: what are those people supposed to do? How are they supposed to eat, with no income at all? When people are convicted of a crime we do not starve them; yet people who have been sanctioned turn up at my office—and the vast majority get the sanction overturned on appeal, for reasons such as we have heard today, and because of mistakes—and they are left in dire straits.

I am ashamed sometimes to be an MP in a country where all I can do is send those people to a food bank. They are sent for payday loans. They should not be getting those if they have no salary, and if they are given them that is shocking. Even worse, they often go to criminal loan sharks. That is the one business that has thrived during the recession, which is a disgrace. What does the Minister expect people who have been sanctioned to do, to meet their basic needs for survival?

The report examines in depth the flexible support fund and its uses. It replaced a few other funds; many of the relevant people would have been affected more recently by the removal of the return to work credit, although I realise that that was a much longer-term support for people returning to work. I worry about some constituents who receive a job offer—which is happening increasingly; I welcome the fact that unemployment is reducing in my constituency and there are many new businesses, and the town centre is more thriving than I can remember. However, some constituents find it difficult to go back to work, because they do not know how they will survive for the first month.

I have been told by my local jobcentre that the usual flexible support fund payment is rarely more than £50 for travel to work. Housing benefit runs on for a month, too, but apart from that there is little, if any, support to enable someone to pay bills or perhaps buy clothes for a new job—or, indeed, lunches for the first month. Being out of work often causes a drop in confidence, so people want to make a good impression and not to have to worry about such basic things in the first month of a new job.

Work experience contributes to building up confidence. I know that the Government have made work experience programmes part of Get Britain Working, but in my experience there are few opportunities for young people to get such experience. What are jobcentres doing to increase opportunities for placements? I am setting up a work experience programme in my constituency, and letters to more than 400 local businesses are being produced as I speak. That is being done in conjunction with the jobcentre, which has difficulty finding enough work experience placements for the people who want them. Some of my colleagues are setting up similar projects in their constituencies, but what is happening at Government level, so that it will not matter whether MPs spend time doing that, and people will not need their MP to set up work experience projects to make placements available to them?

I found work experience useful, because I was on the dole at one point after university. The jobcentre told me I would be sanctioned if I did voluntary work, because I would not be spending that time looking for jobs; however, since then, there has been cross-party support for and understanding of the idea that voluntary work and work experience can lead to full-time sustainable employment.

[Debbie Abrahams]

I congratulate my hon. Friend on setting up work experience in her constituency. I have done that too, for 18 to 24-year-olds, starting next week for two weeks. It is the first time I have done it, but I have been asked whether I would consider something for older people. We need to think of them as well.

[Pamela Nash]

Definitely. The work experience programme that I am setting up is aimed at young people, but it is not just for them—it is certainly for others too. At the other end of the age range in the work market, and particularly with the pension age going up, there are many people who want to work a bit longer but are having difficulty finding jobs. That affects every age group in between, too.

In fact, there was a good news story from my local jobcentre when I visited last Friday. A gentleman had been out of work for 20 years, and, with the new programmes, one of the advisers who recognised his need could spend much longer with him. He has now started a full-time job.

The hon. Member for Newton Abbot (Anne Marie Morris) said that Select Committees are often negative because of their role in holding the Government to account, and I think that that often applies to Opposition MPs as well; we appear a bit crabbit, to use a Scottish word, and negative. However, holding the Government to account is our job. I certainly do not think that everything is wrong, but there is a lot of room for improvement.

Finally, I want to comment briefly on the Work programme, which comes outside the work of Jobcentre Plus. My area has very good and very bad examples of the way it is run. I am angered when I go to the jobcentre and staff tell me how good the success rate is for people leaving the Work programme after two years, and being found work quickly. There are people who are ready and desperate to work, but who were not given the support they needed during the Work programme.

When I meet constituents who have been on the programme, they always tell me two things. First, they tell me that they can end the two years without even a CV—which is ridiculous—or basic IT skills. Secondly, I am constantly told about their intention to apply for training; there are many positions in security in my area, so they might want to go for a Security Industry Authority badge. Yet that is not available—nor is any small cost for training that might keep their skills up to date or improve their job opportunities.

If those people had been under the care of the jobcentre at the time in question, those things would have been available to them, but the contract that the Work programme providers have does not include such provision, and obviously the providers will save costs whenever they can. That is relevant to the debate, because the situation increases the work of the jobcentre, when the people in question go back. If the Government are not going to scrap the Work programme as it stands, will they take another look at the contracts, and make it clear what is expected of Work programme providers in the way of support for participants? Can that be published? Are there guidelines for the providers that Members of Parliament can see?

The hon. Member for Newton Abbot talked about negative comments. On Friday I visited my local jobcentre, as I do regularly—my office is a couple of doors away and it is no accident that I get most of my casework from there. The staff were excited about the prospect of becoming a digital jobcentre. We saw the work being done, and I think much of what is happening will improve the service for my constituents, so I look forward to that.

--- Later in debate ---

[Esther McVey]

I am afraid that, because the right hon. Gentleman has just walked into the debate as I am giving my closing speech and has not heard from other Members, I cannot give way. There is only a limited amount of time, and since it is a three-hour debate, I have many questions to answer.

We have seen the complete modernisation of the Jobcentre Plus system. The system has been personalised and adapted to new technology. We have seen greater employer engagement—how do we get a tailor-made service so that a jobseeker really is ready to go into work? That is what we have tried to do.

When we talk about personalising the service and getting as many people as possible into jobs, one key thing that has come out is the claimant commitment. The claimant feels that they are in charge of the journey they are on and that the adviser can help them. I am pleased to say that more than 26,000 of our staff have received the required training and now all 714 jobcentres offer the service. That is helping 600,000 claimants who have signed the new agreement.

[Debbie Abrahams]

Will the Minister give way?

--- Later in debate ---

[Esther McVey]

I will give the hon. Lady a copy of that research, and there are other debates—various debates—in which it has been used. I will provide her with that information if she would find that helpful.

Most claimants do not get sanctioned. In an average month in 2013, around 5% of jobseeker’s allowance claimants and fewer than 1% of employment and support allowance claimants were sanctioned. We know that those people who follow the rules and take up all the support—

[Debbie Abrahams]

Will the hon. Lady give way?

[Esther McVey]

No, I will not give way at the moment. Those people who take up all the support given to them find it easier to get into work.

We also know that more than three quarters of new claims to JSA end within six months, and that around 90% of new claims to JSA end within a year. So most people are going back into work. However, when I hear stories—whether they come from whistleblowers or otherwise—and when people have concerns, I act. The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) knows that I brought her and her constituent in to meet me, the Secretary of State and the head of Jobcentre Plus. Her constituent brought his concerns to that meeting and they were looked into. I am afraid that with some of the things that were brought up, we did not actually find anything that would—

[Debbie Abrahams]

Will the hon. Lady do me the courtesy of giving way on that point about my constituent?

[Esther McVey]

If the hon. Lady does not mind—she has spoken at length and I am now replying, and once I have finished I will let her back in to say what she has to say. I promised that that meeting would be anonymous and I would not talk about it, so it is rather unfortunate that she issued, I think, a press release about the meeting.

There are no targets for sanctions and that has to be key, despite what anybody has said; what was said to be happening is not happening. Where people bring in their concerns, I rightly bring people in to speak to them. We see them all the time in our constituencies, but if it is a whistleblower it is only right that we bring them in and listen to them. I brought into the meeting that I mentioned the head of Jobcentre Plus to look into the matter that had been raised.

[Debbie Abrahams]

I am very grateful to the Minister for finally giving way. She mentioned my constituent, who is a former JCP adviser, and yes, we met her. However, he has not yet had any response to the issues that were raised at that meeting and that is a real concern. As she knows, because it was discussed at the meeting, there are other whistleblowers who have also provided their evidence, which verifies claimants’ issues. How does she respond to that, and will she finally commit to an independent review to sort out, once and for all, what is happening about unfair sanctions, which is the key point?

[Esther McVey]

No, I will not. As I have said, not only was it a point of order and not only was it in the last Select Committee—I never said that there would be an independent further review. That was not said. And of course the Matt Oakley review will come out. I said it will come out in due course and that will be this month. The right hon. Member for East Ham asked about that. When we have that report, we will all see what recommendations it makes and what issues have been brought forward. Despite Members here today saying that they did not think that the Oakley review was an in-depth review, yes it was. It was about communications and process; all those things are key.

As I said, we continue to look into these issues, because as was said—it may have been said by the hon. Member for Aberdeen South (Dame Anne Begg), the Chair of the Select Committee—at the end of the day what we need is people to comply and to do what is right to get a job. The ultimate aim would be that less sanctions are given, because that is what we want. We put more and more support into the system; we work with people, and the claimant commitment is there to do that; we see what people’s needs are; and we have got to make sure that we are working with voluntary organisations and charitable organisations, and understanding the needs of the individual and also their vulnerabilities. When we have got all that right, then we will all be going in the right direction.

However, what we know we have got right is the extra support and getting more people into work than ever before. The hon. Member for Airdrie and Shotts (Pamela Nash) said that she had spoken to people who had been unemployed for 10, 15 or 25 years, and she also said how delighted those people now are to have a job, and that it has transformed their lives. Those are the type of people I meet all the time; people who were left on benefits and some people would say that they were forgotten about, and that they were not reached out to and connected with. Well, we said that we, as a Conservative party, do not agree with that; we totally do not agree with it. We will reach out and support them, and help them to do as best they can. But it is a system in the round; it is about support, sanctions and what we can do to get people to support themselves.