Disabled People and Economic Growth

Drew Hendry Excerpts

Thursday 22nd February 2018 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

As another Member with a four-barrelled constituency name, I, too, congratulate my hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) on bringing this debate to the Chamber. I commend the hon. Member for Strangford (Jim Shannon) for also attempting to pronounce her constituency; he did very well indeed. We heard from my hon. Friend a speech that was rich in detail, understanding and empathy. She really, truly understands the subject. I fully commend her for this very positively titled debate about the role of disabled people in economic growth. It is somewhat scandalous that we have not had the opportunity to debate this before, but that wrong has been righted today.

We in the SNP know that disabled people continue to make a fantastic contribution to our economy. All the words that we have heard here today show our empathy and the joint approach that we are taking to these issues, but comments that come from the Government themselves can do a lot of harm. Our approach to disabled people—the approach we have taken today—is in stark contrast to the UK Government’s Chancellor, who recently said that he thinks that disabled people are reducing productivity.

I would like to quote my hon. Friend, not from her speech today but from an excellent article she wrote recently:

“The answer is simple, invest in improving the pathways to work. Invest in disabled entrepreneurs, improve reasonable adjustment guidelines and encourage businesses to diversify their workforce. Create incentives rather than enforce sanctions. If the £108 million spent by the Government to deny disabled people the benefits they are entitled to was redirected to creating an apprenticeship schemes, entrepreneurship and training opportunities for example, then perhaps the narrative of people with disabilities could change.”

Those are very wise words.

I am most grateful to Scope for the briefing that it has sent along for this debate. Scope says of the Chancellor’s comments:

“We found the Chancellor’s statements before the Treasury Select Committee…on the negative impact of disabled employees on UK productivity levels to be entirely untrue and unacceptable.”

It underlines a fact that was brought out by my hon. Friend, saying:

“In fact, a 10-percentage point rise in the employment rate amongst disabled people would increase GDP by £45 billion by 2030 and result in a £12 billion gain to the Exchequer.”

I hope that the Minister, who I know to be a thoughtful person, will reflect on the Chancellor’s remarks and take the opportunity today to distance herself from them.

There is a real opportunity to make a positive impact on tackling the disability employment gap in the economy, delivering the reforms needed to support more people to enter, remain and advance in work, but progress up until now has been slow. Government and employers need to do more if we are to harness the economic benefits that an increased disabled employment rate will bring. Tackling the disability employment gap would mean, as I have said, that economic growth and productivity would increase.

Employing disabled people is an opportunity for employers, delivering significant benefits to business and the economy. It is important to underline the calls from the all-party parliamentary group on disability. They are all relevant, but I mention especially tailored and targeted support for self-employed disabled people from such bodies as the Business Bank, funding for reasonable adjustments for disabled recipients of tech start-up support from Innovate UK, and bringing forward requirements for sectors to plan for recruitment.

It is also vital to recognise the additional challenges that are faced by disabled people. My hon. Friend talked about the high numbers of applications required simply to get a job interview, let alone a job. She said that we cannot afford to sit and wait. Throughout this debate, we have heard many people agreeing on the need for action, and that is what disabled people now want to see.

[Jamie Stone]

The hon. Gentleman rightly mentions the challenges and difficulties that disabled people face. One of those, depending on the form of disability, is that the fatigue element as the day progresses can be quite critical to the person. It would be best if employment opportunities could be tailored with specific reference to this fatigue, which can kick in after two or three hours of concentrated work.

[Drew Hendry]

I thank the hon. Gentleman for his intervention. It is important to take into account the size and scale of the challenges people face, to make sure we are able to take full advantage.

As my hon. Friend the Member for East Kilbride, Strathaven and Lesmahagow said, the UK already has a skills shortage, and the Brexit exodus of skilled labour means that the opportunity of training and apprenticeships must be embraced. As we have heard, the Government at the moment are not going far enough. Specialist advice services on self-employment are required, and we need to avoid stereotypes in these debates and the action that follows.

The additional challenges for disabled people also come down to hard cash and the extra costs that they have to cope with. New research from Scope shows that on average, disabled people have to find an additional £750 per month related to their condition, on top of any social security payments designed to meet those costs. The financial penalty locks disabled people out of being able to make a positive contribution to the economy. They need practical help, and the Government can help now. For example, the Government can help with motability, an issue that my hon. Friend is keen to bring up. Many people have seen their ability to move around or take part in employment and the economy hampered by motability issues.

It also comes down to the issue of PIP assessments. I was interested to hear from the hon. Member for Hitchin and Harpenden (Bim Afolami) and agree with him that more money should be spent on disability payments. There should be more social security to support disabled people, particularly given their disadvantage. The recent Work and Pensions Committee report on claimant experiences of PIP and ESA assessments presented clear evidence that the assessments are failing a substantial minority of claimants, with claimant stories highlighting clear errors made in assessments, crucial information being omitted and assessors lacking knowledge and expertise. It is not just about putting more money into the system; it is about making the system work for disabled people, which too often it does not at the moment.

[Jim Shannon]

Friday a week ago, I had the chance to meet Capita officials in Northern Ireland. I suggest to the hon. Gentleman and other Members that if it is possible to have such a meeting, it might be helpful. We were able to get a hotline to the people who can make the changes and to ensure that the people doing the assessments are up to speed, as he said. Capita needs to change some of the things it is doing. We are going to have a change in Northern Ireland, and Capita has committed to that. I suggest that others do the same in their own regions.

[Drew Hendry]

That is an important comment. I am sure that the hon. Gentleman, having listened to me speak on universal credit, PIP and ESA on many occasions, can be reassured that I have indeed made that visit and gone through that process, and I know what is involved. I think his substantive point is that it is a good thing to do. It does not iron out the difficulties that people have had over years and continue to have, but it can help, and wherever it can help, we must do that.

Between April 2016 and March 2017, the Scope helpline saw a 542% rise in calls related to PIP payments, and 65% of claimants who challenge a PIP decision at tribunal are successful. There is much more that the Government can do to help.

I want to finish with some criticisms, but given that I know the Minister will be listening carefully and looking for ways to take action, I will also talk about how we are doing things back in our own constituencies, as the hon. Member for Strangford (Jim Shannon) said, and how we are doing things differently in Scotland. I hope that the Minister will listen carefully and take the opportunity to learn or think about how things might be done differently.

We have seen the impact that the UK Government’s system has had on disabled people in Scotland. In October this year, the Scottish Government found that between 7,000 and 10,000 disabled people per year are being affected by the removal of the work-related activity component of employment and support allowance. That is completely appalling and simply unacceptable. They also found that 40,000 disabled people claiming ESA have been affected by the bedroom tax. ESA is supposed to support disabled people into employment. The Government have said that the £30-a-week cut was to remove incentives to be out of work. That is an outrageous thing to do. It is pushing people into poverty and into crisis.

The Government’s PIP assessment process is failing disabled people. According to the DWP figures from December 2017, one in five claimants who had gone through mandatory reconsideration for PIP had their reward changed, meaning that 20% of those initial decisions were judged as wrong. I hope that the Minister will consider some of the actions that have been taken in Scotland, with the very limited powers that have been transferred to Scotland.

Disabled people should have equal access to employment opportunities in Scotland, and the Scottish National party Government are committed to reducing the employment gap by at least half. Disabled people’s skills, hard work and commitment are valuable to any employer, and practical and financial support must be available to businesses. It makes sense to recruit from the widest pool of talent possible.

Disabled people account for 20% of Scotland’s population, and at the moment they make up just 11% of the private sector workforce and 11.7% of the public sector workforce. The Scottish Government will work with both sectors to look at target setting and how to redress the imbalance. In April 2017, the Scottish Government introduced employability programmes delivered by a new service, Work First Scotland, including employment support for up to 3,300 disabled people. In July last year, a campaign was launched to boost awareness among businesses of the benefits of employing people with disabilities, specifically targeting small and medium-sized enterprises.

From April 2018, a new devolved programme will take a voluntary and person-led approach to ensure that disabled people are offered support that is appropriate and built on guaranteed service expectations from providers. Disabled people engaging with the programme will receive high-quality pre-employment support that identifies and develops their strengths and assets, while focusing on sustainable employment outcomes. Only today, the Scottish Government announced that people will no longer see a reduction in their benefit payments during the appeal process. In the Minister’s response, she might say whether the UK Government will consider taking that action, too.

I think the message from both sides of the Chamber today has been crystal clear: let us do all that can be done to realise and release the potential of disabled people for economic growth.

--- Later in debate ---

[The Minister for Disabled People, Health and Work (Sarah Newton)]

I add my congratulations to those already offered to the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron). I will not go through the names of everybody’s constituencies because I have so little time left, but she did a magnificent job in introducing this debate. I echo words from Members across the House about her commitment to this important issue, her sincerity, and the way that she opened the debate in such a positive way—sadly, that was in marked contrast to some of the later contributions. I praise the work of the all-party group for disability and all voluntary sector organisations that, in myriad ways, do so much to support its work.

It is important to hear voices from across the House, and we heard powerful, personal testimony from the hon. Members for Eastbourne (Stephen Lloyd), for Caithness, Sutherland and Easter Ross (Jamie Stone), and for Battersea (Marsha De Cordova) about their lived experience of disability. They have all made significant contributions to improving opportunities for disabled people to play their full part in society. The hon. Member for Battersea raised some individual cases, and I would appreciate her providing me with the specific details so that I can resolve those matters.

I congratulate my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) on becoming a Disability Confident employer. Yesterday she joined 78 Members of Parliament who have already done that, and there will be further such opportunities in the weeks and months ahead for those who have yet to take up the scheme. I praise her for and encourage her in the work that she will do in her constituency with Jobcentre Plus. Such work that we can do in our constituencies, by helping local employers to take seriously our desire to see more disabled people in employment, is important and powerful. She raised an important point about enabling disabled children to develop their employment skills and have the same opportunities as all other young people to gain work experience. She will be pleased to know that the Department for Education completely agrees with her, and it is increasing its commitment and funding to enable young people to have supported internships.

My hon. Friends the Members for Hitchin and Harpenden (Bim Afolami) and for Chippenham (Michelle Donelan) made powerful speeches about the level of ambition that we all share to close the disability employment gap. They stressed the importance of working closely with employers on culture change, and I completely agree. We are considering the issues they raised about improving the Disability Confident scheme, although I refute what was said by the hon. Member for Battersea—this is not a failing scheme; it is a growing scheme. We are looking at what more we can do to incentivise businesses, and at publishing levels of disability employment, especially for large employers. We are also considering what more we can do to communicate the wide range of help that is available to support businesses and public sector organisations to employ disabled people.

I congratulate the hon. Member for Strangford (Jim Shannon) on becoming a Disability Confident employer yesterday. He said how important it is that people feel confident enough to disclose their disability and for employers to feel confident in hearing that news, and he asked how we can work together to ensure that happens. Financial support is available to a disabled person through the Access to Work programme, as well as to employers who employ them.

I assure the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) that each and every year we increase our investment in benefits for disabled people and those with health conditions. This year alone we are spending more than £50 billion—more than the defence budget—and I am proud to be part of a Government who prioritise supporting disabled people. That is an increase of £7 billion since 2010. We are determined continuously to improve the processes and operation of the system that administers our disability benefits.

[Drew Hendry]

I hope that the Minister will also address the comments made by the Chancellor and distance herself from those. On her specific point, what does she say to those who have lost the severe disability allowance from their payments?

[Sarah Newton]

I was not going to dignify the hon. Gentleman’s remarks with a response, but since he has intervened on me I will not leave that point without comment. It is irresponsible of him deliberately to misrepresent what the Chancellor said at the Select Committee. We in this House all have a huge responsibility to be careful about what we say. We must honour the truth, and we must not make comments that scaremonger and will frighten some of the most vulnerable people.

[Drew Hendry]

rose—

[Sarah Newton]

I will not give way. I have been generous in giving way, and I will not indulge the hon. Gentleman any more in pursuing things that he has misrepresented and quoted out of context.

Let me return to the spirit of the debate, which the hon. Gentleman’s colleague, the hon. Member for East Kilbride, Strathaven and Lesmahagow set so well. The House came together to speak to disabled people outside the Chamber, to show how much we value them and to say how much more we want to do to enable them to play their part in society and to enable employers to take people on. I will return to the tone so ably set by the hon. Lady. I hope that the hon. Gentleman will respect his colleague and the tone that she set.

Last week, I visited North Devon District Hospital with the excellent local Member of Parliament. We met some young people who are doing really valued jobs in the hospital wards with patients and in vital support services, such as the engineering department. All those excellent young people had been supported by their local college and by Pluss through a Government-funded scheme. They were supported through work experience and placements in the hospital. The programme has been working for some five years. All the young people have learning disabilities, but their employers told me how valued they are. They were being employed not as an act of charity, but because of who they were.

I have the privilege, as Minister for Disabled People, to meet disabled people every week who do extraordinarily good work in every sort of workplace across the country. Just this morning, I was at Channel 4, which kindly hosted the first anniversary of our sector champions. Each sector champion is a leader in their industry and is working to improve access for disabled people to their industry, from financial services to retail, tourism, media and transport. Each sector leader is an inspirational leader in their field, driving real change in access for disabled people. They are doing that not just because it is the right thing to do, but because it makes good business sense.

There are an estimated 13 million disabled people in our country. Each year they spend an estimated £250 billion —the purple pound—so if businesses are not accessible they are missing out on a great deal of business. Accessibility, as Members have said, does not have to be expensive. Our sector champions are sharing best practice and information, so that more people are confident about employing disabled people. Disabled people are making huge contributions not only as consumers, but, as we have heard today, in all aspects of our society, including employment.

The Government are building a Britain fit for a future where no one is left behind. We have been very clear that we want our economy to harness the skills, talents and contributions of every person in society. We have made significant progress—there are now 600,000 more disabled people in work than there were four years ago—but we want to go further and faster. At the moment, even though our labour market is the strongest it has been for many years, with employment rates at record highs, we know that only half of all disabled people who would like to work are in work. New analysis shows that, over the course of a year, disabled people are twice as likely to fall out of work and almost three times less likely to move into work compared with non-disabled people. That is simply not acceptable.