Benefit Claimants Sanctions (Required Assessment) Bill

Debate between Debbie Abrahams and Kirsten Oswald

2nd reading: House of Commons
Friday 2nd December 2016 Commons Chamber

[Debbie Abrahams]

I said, “On that point alone,” and the hon. Gentleman has not asked specifically about the investigation of the fraudulent activity that was going on in the DWP, so I am afraid I am not going to respond to his intervention. [Interruption.] I will come on to putting our position very clearly to the Minister.

This Jobcentre Plus adviser said people were being set up to fail to get them off flow. If claimants are off flow, they are not signing in. Not only do they not count in the JSA claimant statistics, but they are not drawing social security support. Wednesday’s National Audit Office report estimated that, last year alone, £132 million was not paid in social security support, but a significant amount—not quite as much as that—was spent on administering the sanctions process.

What many people are surprised to hear is that sanctions apply immediately and last for a minimum of a month. They are referred to a DWP decision maker, as we have heard, to decide whether they should be upheld, but that in itself can take a month. On top of that, although housing benefit payments are not meant to be stopped, they have been, and that was confirmed during the Select Committee inquiry last year. As has also been said, the ensuing debt builds up, and Sheffield Hallam University has shown the implications for sanctions-related homelessness.

Then I started to hear about the deaths of claimants following a sanction—first Mark Wood, and then David Clapson, and there have been many more. Of the 49 claimants who died between 2012 and 2014, and whose deaths were investigated by the DWP, 10 followed a sanction. By the way, I am still waiting for the Department to get back to me on the peer review details of nine subsequent claimant deaths.

It was after David’s death, and when I had met his sister, Gill Thompson, who is absolutely devastated—I pay tribute to her for the campaign she has launched to try to raise awareness of what is happening—that I managed to persuade the Select Committee to undertake an inquiry into sanctions that would explore the impacts of the Government’s 2012 sanctions regime. We found that, between 2012 and 2014, 3.2 million sanctions were applied. At a peak, in one month in 2014, 90,000 JSA claimants were sanctioned. The sanctions for sick and disabled people increased fivefold. One in five JSA claimants were sanctioned at that time; as we have heard, that has increased to one in four. Single parents and people with mental health conditions were particularly affected. Again, the variation across the country was quite staggering.

We found that 43% of claimants who are sanctioned leave JSA—they move off flow, distorting the JSA claimant count. Over 80%—this is a really important point—of those leaving JSA after a sanction do so for reasons other than work. One would think that the Government wanted to know what was happening to those people and where they were going. If they are not going into work, what exactly is happening to them? One recommendation from the all-party Select Committee inquiry was that we should follow up these cases. As the NAO has shown, that has not happened. We do not know what happens to the nearly half of the JSA claimants who leave and the 80% who do so for reasons other than going into work.

The rise in food bank usage was also linked to the increase in sanctions, and both the physical and the mental health issues of claimants were found to be exacerbated by the punitive sanctions regime. The Select Committee made more than 20 recommendations, including for the pre-sanction process that the Bill also calls for. It also said that all financial sanctions on vulnerable JSA and ESA claimants, as well as those on people who are on universal credit and in work but not full-time work, should be stopped.

Fundamentally, the Select Committee called for an independent inquiry into sanctions as a whole, and the NAO made the same recommendation in its report on Wednesday. Unfortunately, the Government did not accept the majority of the recommendations. They made some moves on hardship payments. We have heard about that already and I look forward to hearing the Minister’s response.

Wednesday’s NAO report was the third in a month reaffirming and adding to the Select Committee inquiry’s findings. There is no evidence that sanctioning someone motivates them or modifies their behaviour in such a way that they move into work. Even the Government’s own behavioural insights team found exactly that in its review. We have discussed the fact that one in four JSA claimants were sanctioned between 2010 and 2015, and I have mentioned the appalling headline that said that they were abusing the system. As I have said, the Jobcentre Plus whistleblower said that claimants are being set up to fail.

We also know that 42% of UC decisions about sanctions took longer than 28 days, and that £132 million was withheld last year. Last month, the University of Oxford and the London School of Economics quantified the association between the increase in sanctioning and food bank usage: for every 10 sanctions, five more adults were referred to food banks.

[Kirsten Oswald]

I echo the hon. Lady’s sentiments and her comments on the correlation between sanctions and food banks. Does she agree that it is a sad situation that Scotland now has not only food banks, but school uniform banks, and that that is directly linked to the inability of families, through no fault of their own, to support their children in going to school?

[Debbie Abrahams]

Absolutely. Last week, the food bank in my own area launched a fuel bank, because people are choosing between heating and eating. That is what is going to happen up and down the country this Christmas.

Where do we go from here? I hope that, given the evidence and the new tone being used by this Government—I was disappointed with the autumn statement, but I am an eternal optimist and hope that the Minister is listening—they will support the Bill and implement it at the earliest opportunity.

I turn to the question asked by the hon. Member for Mid Dorset and North Poole (Michael Tomlinson) about our position. I made it very clear in my conference speech in September.