Employment and Support Allowance

Debbie Abrahams Excerpts

Tuesday 18th April 2017 Commons Chamber

[Penny Mordaunt]

Yes. I will come to that point shortly. I also briefly mention the social fund, which can help with non-work-related costs.

We looked at several ways of potentially ring-fencing funds to this group, but in all cases we felt that it would be subject to legal challenge, so this is by far the simplest thing to do. We can monitor how this is being used and see where the money is going. The flexible support fund and the social fund are the only real route to be able supply additional funding to help people, whether that funding is cost-related to work and moving closer towards getting into work, or whether it is other costs associated with the cost of living.

We have also looked at what we can do to reduce a person’s outgoings. I thank my officials, who have done a huge amount of work with telecoms and energy suppliers to establish what support is on offer, and to encourage new offers and some low tariffs. That work has concluded and the Department for Work and Pensions will signpost claimants—not just WRAG claimants, but others—to services that help to reduce those costs. For example, tariffs are available, particularly to those on ESA, that package up broadband, phone and other costs at a low tariff of £10 a month.

When work coaches meet claimants, they will be able to offer signposting to services that help claimants with budgeting and saving money on household bills. That will be supported by a fact sheet that can be given to claimants. The fact sheet is already in operation and has been distributed through our operations arm. It is a one-stop shop that has all the information in one place, as well as signposting to local services. That is a big step forward. The leaflet, “ESA40”, which is sent to all ESA claimants at the beginning of their claim journey now includes a link to the Money Advice Service and its free support on saving money and household bills. This links into the work that the Department has been doing to follow on from the Extra Costs Commission, and it is a big step forward for the Department.

When ESA was introduced by Labour in 2008 as “a radical reform package”, the work-related activity component was intended to act as an incentive to encourage people to participate in work-related activity and, therefore, return to work quicker.

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

I do not want to get the Minister up and down on her feet, but I refer her back to what she said about the additional support that will now be available. The Government’s own impact analysis estimated that half a million people would have £30 a week less—£1,500 a year less. What proportion of those 500,000 people will be in receipt of the additional support that her Department is making available, and to what extent?

[Penny Mordaunt]

That very much depends on an individual’s circumstances. We have looked at a range of circumstances that someone might find themselves in—for example, someone who might need also to apply for PIP. We have looked at the time lag between someone, for example, coming on to being a new claimant for ESA and their actually being able to access that benefit. We have looked at a range of scenarios that someone might find themselves in. However, this support is available to anyone in that circumstance. Indeed, some of it is available to all claimants—for example, the social tariffs, which is a big step forward for the Department.