Personal Independence Payments

Esther McVey Excerpts
Tuesday 13th November 2012

(11 years, 6 months ago)

Westminster Hall
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Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
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It is a pleasure to serve under your chairmanship, Mr Dobbin. I congratulate the hon. Member for Glasgow North West (John Robertson) on securing the debate. I recognise the contribution that he has made in campaigning for rights for disabled people down the years, including his significant involvement in recent changes to disability living allowance. I also welcome his acknowledgement that DLA is a benefit in need of reform; we need to ensure that we get it right.

The starting point, therefore, must be that the Government remain committed to supporting those in greatest need, so that they can live independently. However, we also must ensure that the right financial support gets to the right people for the right reason. After all, the Government spend £50 billion a year on benefits and services for disabled people. It is worth remembering that DLA has not been fundamentally reformed since 1992 and that the expenditure increased by a third between 1998 and 2010. More than two thirds of the current case load has an indefinite award, and because people’s claims simply are not systematically checked or updated, there are significant overpayments and underpayments. Twenty years later, we are left with a system that is a lifeline for many people, but it is widely acknowledged that we need to reform it.

The reforms are about targeting support more effectively and keeping the best elements of DLA—the ones that disabled people value—but also about bringing the benefit up to date and fit for the 21st century. I assure Members that we are fully committed to the implementation of the personal independence payment from April 2013 and that we are on track for delivery. We will start with small volumes of new claims in the north-west before the national roll-out begins in June 2013. I will not go into the details of that, however, because the hon. Gentleman has raised some specific points.

It is important to get the assessment and assessor training right, with an emphasis on the importance of assessors being able to identify the wide range of barriers that people with disabilities and impairments may face. The Department for Work and Pensions has set clear standards for providers on the skills, training and competence expected of those assessors. We will work closely with the providers to ensure that training is of that required standard, and we will approve the training plans only when we are fully satisfied that they meet the necessary quality. All assessors will be health professionals with broad training in disability analysis, as well as training on specific impairments. Although we expect assessors to have good general knowledge of health conditions and impairments, they do not need specialist knowledge of particular conditions.

John Robertson Portrait John Robertson
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I totally disagree with the Minister’s last statement. There are certain times when specialists are required. Putting the onus on the assessor to make a decision on something that they know very little about suggests that the process is more about ticking boxes than an actual assessment.

Esther McVey Portrait Esther McVey
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If I had reached the end of my paragraph, I might have answered those questions.

Assessors will have broad knowledge and specialist knowledge, but the assessment will not be medical; the assessment focuses on outcomes and how the health condition affects the individual. We recognise, however, that assessors might need support on mental, intellectual and cognitive impairments when assessing individuals with, for example, mental health conditions, learning disabilities or autism. As such, we require providers to have mental and cognitive champions, as recommended by Professor Harrington.

Sheila Gilmore Portrait Sheila Gilmore
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There are more people to be assessed and reassessed for this new benefit than there were for the employment and support allowance, which I accept is very different. One problem that we have encountered is that there are only two mental health champions for the whole of Scotland. Can the Minister reassure us that that number will be increased, because we are dealing with larger numbers?

Esther McVey Portrait Esther McVey
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Absolutely. The hon. Lady is right that the assessment is very different, but we have to take forward the knowledge that we have learned. I have had many meetings on the need for more champions to provide the knowledge, so that people can have confidence when they are being assessed.

Neil Carmichael Portrait Neil Carmichael (Stroud) (Con)
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Does the Minister agree that the continuing good influence of Professor Harrington is worth noting when considering such issues?

Esther McVey Portrait Esther McVey
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Absolutely. That evidence will be taken on board and used.

Jonathan Lord Portrait Jonathan Lord
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Will the Minister give way?

Esther McVey Portrait Esther McVey
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I am running short of time, and I have a lot of answers to give to the hon. Member for Glasgow North West.

Jonathan Lord Portrait Jonathan Lord
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I am very grateful, and I will be brief. A lady came to see me the other day with a friend. She was absolutely delightful, and people who talk to her would not know that she has long-standing mental health issues. I was assured by her and her friend that the following day she would be capable of virtually nothing. How is that going to be judged in the assessment? Can her medical records and letters from doctors and experts support such an application and be taken fully into account?

Esther McVey Portrait Esther McVey
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My hon. Friend raises a fair point. He is correct that we will not take a snapshot in time; a view will be taken over a year and, equally, it will be based on whether the claimant needs support during a part of the day, not for the majority of the day. All those factors are being taken into consideration.

Assessment providers are being given clear guidance on how to carry out the personal independence payment assessment. That will include aspects such as when to gather further evidence and when to conduct a paper-based review of evidence, rather than a face-to-face consultation.

The hon. Member for Glasgow North West asked whether the guidance will address the use of long canes by blind and partially sighted people. The Department’s guidance for providers will be relatively high-level. The guidance will not list specific conditions, nor will it tell assessors how to advise in certain cases. To do so would go against the fundamental principles of the personal independence payment assessment, which is that it will be an individual assessment that considers each claimant’s personal circumstances.

Although we do not intend to run a formal public consultation on the guidance, we will keep it under review and will consider any comments received from stakeholders. We also expect assessment providers to work with stakeholders, as they develop their own, more detailed guidance and training products.

The hon. Gentleman expressed concern about the number of people who will lose their benefit as a result of the changes. I would like to make it clear that it is very difficult to generalise about who will leave the benefit. Entitlement to PIP will be based on individual circumstances and the impact of disabilities, not on what conditions people have.

Some people will receive more support; some will receive broadly the same; others will receive less; and some will leave the benefit altogether. I fully acknowledge that, but equally, given the 3.3 million people who are on DLA, we understand that it is not a static benefit but a dynamic benefit: some people’s conditions will stay the same; some people’s conditions will worsen; and some people’s conditions will get better and, with the right support, they will no longer need the benefit.

I reassure the hon. Gentleman that we have legislated to carry out two biennial independent reviews of the PIP assessment, its criteria and operation within the first four years of the introduction of PIP, so that we can learn and adapt from our experiences.

The hon. Gentleman asked for specific clarification on the arrangements for blind and partially sighted people. He also asked whether we will be making changes to the mobility activities to take into account those individuals who use a long cane, rather than a support dog. Although it was never our intention to limit support to blind and visually impaired people who have a support dog, I am aware that issue has caused a lot of concern.

Although I cannot confirm now the changes that we intend to make in the final draft of the assessment criteria, I can assure the hon. Gentleman that we want to ensure that assessments fairly reflect the needs of blind and partially sighted people. I am aware of the strength of feeling on that issue. The final assessment criteria will be published soon—I will be able to say more then—and I hope that that is reassuring. I fully acknowledge all his work in that area.

I am checking the clock, and I want to get through as many questions as I can, so I will move on to appeals.

A decision being overturned on appeal does not always mean that the original decision was wrong. Often an overturn is due to the claimant providing new information to the tribunal that is material to the original decision. That is why PIP will be one of the first benefits to follow new rules from 2013 that allow us to identify and address incorrect decisions fairly and robustly without the need for full appeals in all cases. That is more proportionate, fairer for the claimant and better value for the taxpayer. Once a claimant has been informed that they are not entitled to PIP, their benefit will cease and they will not receive it during the course of their appeal.

The hon. Gentleman expressed concern about how the changes will affect those in receipt of carer’s allowance. We expect that the introduction of PIP will not affect the overall size of the carer’s allowance case load or the expenditure on that benefit. We recognise the important role that carers play, which is why both rates of the daily living component will form part of the gateway to carer’s allowance.

Officials from the Department are working closely with Motability to assess the impact of the introduction of PIP on its users. Only 33% of the 1 million disabled recipients of the higher rate mobility component of DLA are Motability customers. That makes it difficult to predict the precise impact of caseload changes or the number of Motability users. We are continuing to work closely with Motability to ensure it is ready for the introduction of PIP in April 2013.

I hope that my comments have reassured hon. Members that the introduction of PIP is on track for delivery in 2013. Our proposals have been developed following extensive collaborative consultation with disabled people, and we continue to work with disabled representative organisations and disabled people.

Oral Answers to Questions

Esther McVey Excerpts
Monday 5th November 2012

(11 years, 6 months ago)

Commons Chamber
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Stuart Andrew Portrait Stuart Andrew (Pudsey) (Con)
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2. What progress he has made on the Government's disability strategy.

Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
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Fulfilling Potential, our disability strategy, is being co-produced with disabled people. We published “Fulfilling Potential—The Discussions So Far” and “Fulfilling Potential—Next Steps” on 17 September. Our key themes, which we intend to make a real difference, are early intervention, choice and control, and inclusive communities.

Stuart Andrew Portrait Stuart Andrew
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Can the Minister explain what the role of the disabled people’s user-led organisations will be in the strategy?

Esther McVey Portrait Esther McVey
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I can indeed. User-led groups will be a key element in everything that we do. It is essential for disabled people and their organisations to be at the heart of that. We have also created a £3 million fund, and I was delighted to be in Redbridge last week when we delivered £1 million of it.

Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
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An important part of the disability strategy is to get people into work. Can the Minister tell us what proportion of the people in the work-related activity group who have been mandated to join the Work programme have actually found work?

Esther McVey Portrait Esther McVey
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The figures have not been published yet, but as soon as they are published, I will give the hon. Lady the information.

Philip Davies Portrait Philip Davies (Shipley) (Con)
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There are many excellent disability organisations in the Bradford district, notably the Bradford and Airedale mental health advocacy group. Can such groups join the disability action alliance to help with the Government’s strategy, or will they be excluded from it?

Esther McVey Portrait Esther McVey
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We are trying to reach out to as many user-led groups as possible. Those who want to become part of the alliance should visit fulfilling.potential@dwp.gsi.gov.uk. Everyone is welcome: we want the strategy to be embedded in all our local communities.

Michael McCann Portrait Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)
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Given the cumulative impact of welfare reform on disabled people and the criticism of the Joint Committee on Human Rights, can the Minister explain how the disability strategy will comply with the United Nations convention on the rights of persons with disabilities?

Esther McVey Portrait Esther McVey
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It fully conforms with the UN rights. In fact, we are a world leader in that regard. It has been noted that we are—as I have said—reaching out to all disability groups and disabled people, and I have given the House the address of the website.

Karen Lumley Portrait Karen Lumley (Redditch) (Con)
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3. What recent steps he has taken to expand the new enterprise allowance.

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Teresa Pearce Portrait Teresa Pearce (Erith and Thamesmead) (Lab)
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24. What discussions his Department has had with Baroness Grey-Thompson following the publication of her report on the effect on disabled people of the introduction of universal credit.

Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
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Since Baroness Grey-Thompson’s report was released, I have attended meetings with her twice where the contents of her report have been discussed.

Teresa Pearce Portrait Teresa Pearce
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“Holes in the Safety Net”, the report just mentioned, indicated that about 450,000 disabled people lose out under the universal credit rules. This number was also raised by my hon. Friend the Member for Aberdeen South (Dame Anne Begg), the Chair of the Work and Pensions Committee, in a recent Westminster Hall debate that the Minister attended. Will she listen to these two highly respected women and amend her plans?

Esther McVey Portrait Esther McVey
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We have been listening very much. We found some of the reports to be highly selective and quite skewed. They did not take into consideration how much extra support was going to people with disabilities, but we are listening, there is transitional protection and we will be releasing the assessment criteria later in the year.

David Ward Portrait Mr David Ward (Bradford East) (LD)
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The Minister has no doubt read today’s copy of Bradford’s The Telegraph and Argos and the letter from Mr Barry Thorne about his son. He felt compelled to write the letter following the comments from Dame Tanni Grey-Thompson. The fear is that those with clearly defined medical concerns, such as his son Stephen, will feel threatened and fearful at the prospect of reapplying and being interviewed. Are those fears unfounded?

Esther McVey Portrait Esther McVey
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I believe that those fears are unfounded. Everybody tries to put information into the public arena that is meant to help, but frequently they do not, and instead raise fears. The whole reason for having a face-to-face interview is so that the claimant can explain clearly why they might need the benefit.

Yvonne Fovargue Portrait Yvonne Fovargue (Makerfield) (Lab)
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25. Whether he plans to withdraw eligibility for housing benefit from people aged under 25.

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Andrew George Portrait Andrew George (St Ives) (LD)
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T2. Disability Cornwall has expressed concern to me that its good name has been used by the company Atos when bidding to undertake the personal independence payment assessments, when in fact no such discussion regarding a potential local partnership has ever taken place between Atos and Disability Cornwall. Does the Minister agree that this may have resulted in Ministers being misled? Will the matter, therefore, please be investigated?

Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
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To correct my hon. Friend, what the contract said was, “Should we win the contract, the sort of people we would look to negotiate with would be Disability Cornwall”—[Interruption.] The right hon. Member for Stirling (Mrs McGuire) is passing comments from a sedentary position; she may be thinking of a different matter altogether. In regard to Disability Cornwall, Atos’s position was that should it win the contract, it would look to negotiate with Disability Cornwall.

Liam Byrne Portrait Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
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May I first associate everyone on the Opposition Benches with the words of commemoration for our much treasured colleague, Malcolm Wicks, who is sorely missed?

Will the Secretary of State confirm that the introduction of universal credit is proceeding according to its original timetable?

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Duncan Hames Portrait Duncan Hames (Chippenham) (LD)
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T5. Is the disabilities Minister satisfied that the proposed descriptors for the personal independence payments adequately recognise the impact of Crohn’s disease, colitis and irritable bowel syndrome on the daily lives of our constituents who live with those conditions and the invisible disabilities that they endure?

Esther McVey Portrait Esther McVey
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I am indeed. As my hon. Friend will know, it is not about the condition, but about how each individual person copes with the condition; and yes, I am happy with the criteria.

Mark Durkan Portrait Mark Durkan (Foyle) (SDLP)
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T10. The Fair Pensions report, “Whose Duty? Ensuring effective stewardship in contract-based pensions”, highlights the relative lack of quality standards being applied to UK schemes, as opposed to other jurisdictions such as Australia. The Minister referred to active steps being taken in relation to auto-enrolment. Do those steps extend to re-visiting actively the qualifying criteria and the default fund guidance?

Working-Age Disabled People

Esther McVey Excerpts
Thursday 25th October 2012

(11 years, 6 months ago)

Westminster Hall
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This information is provided by Parallel Parliament and does not comprise part of the offical record

Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
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I begin by congratulating and thanking the Liaison Committee for calling this debate. I thank the members of the Select Committee and other right hon. and hon. Members who have spoken today, some with very personal knowledge of this most important subject.

In summing up I hope to get through all the questions. As Members can see, I have papers on those questions across my desk, but should I not get to answer all of them, I am sure Members will catch my eye and pursue the matter that most concerns them.

I am pleased, Mr Sheridan, that you are chairing the debate today. Thank you.

I believe that the change will be of the same quality and standard as the Disability Discrimination Act 1995, which was introduced by my right hon. Friend the Member for Richmond (Yorks) (Mr Hague). I thank the right hon. Member for Stirling (Mrs McGuire) for mentioning that Act, because I think all of us here are concerned about, committed to and believe in the rights of people with disabilities. We want the changes that we seek to be implemented as best they can be and brought about for the right purposes. The coalition Government are committed to enabling disabled people to fulfil their potential and to have opportunities to play a full role in society.

We have been clear about our welfare reform plans, which are designed to rebalance the benefits system so that it is fair to claimants and affordable for the taxpayer. Key to ensuring those objectives is replacing the disability living allowance with personal independence payments for people of working age.

Sheila Gilmore Portrait Sheila Gilmore
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Will the Minister give way?

Esther McVey Portrait Esther McVey
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I have only just begun, but the hon. Lady may intervene if she wishes.

Sheila Gilmore Portrait Sheila Gilmore
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I regret that the Minister has fallen into the trap of counterpoising claimants and taxpayers. Many claimants are indeed taxpayers. Many are income tax payers, but they all certainly pay VAT. The two groups are not distinct.

Esther McVey Portrait Esther McVey
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I never sought to put them in two distinct groups. I said “affordable for the taxpayer”. I am afraid that it is the hon. Lady who distinguishes between the two. I certainly did not.

The Government currently spend almost £50 billion a year on disabled people, including more than £15 billion on adult social care, £1 billion on free transport for elderly and disabled people, £13 billion on disability living allowance, £15 billion on a range of other benefits and £320 million on disability employment programmes. We are also putting an extra £15 million into Access to Work. We should be proud that we are doing all of that. We spend a fifth more than the EU average, and we are acknowledged as world leaders, which is a very good point to start this debate.

Those services enable disabled people to make their own choices and live independently, and for the services to continue to be available they must be sustainable and keep pace with the needs of disabled people today, which is considered no longer to be the case with disability living allowance. As hon. Members may be aware, from May 2002 to February 2012 the number of people claiming DLA rose by almost 34%. DLA, therefore, is financially unsustainable. We, like many others, including the Select Committee, consider DLA to be outdated and in need of fundamental change.

Anne Begg Portrait Dame Anne Begg
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Those figures have been mentioned elsewhere today, and they should be put in context. The growth in the numbers claiming DLA is because people are living longer. Most of that growth comes from those over 65, because if people qualify before they are 65, they effectively keep DLA until they die. Of course, the introduction of PIP does not apply to that cohort. It is therefore wrong to say that the growth in DLA will be halted by the changes, because the large proportion of the growth is purely down to demographics.

Esther McVey Portrait Esther McVey
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I checked the numbers before I came here today, and the over-65s are not the vast majority, but a third of the total. Interestingly—I think my hon. Friend the Member for Weaver Vale (Graham Evans) brought this up, although many people have touched on it—DLA is not a static benefit; it is a dynamic benefit in so far as 3.3 million people are on it and the conditions they have will change. Some might stay the same and some might get worse, but some people’s condition may get better, and we have to acknowledge that when people get better, they will move off the system. There is a natural movement within the system, and we have to consider all those incidents, which is why we believe the reform is required.

I know I am short of time, so I will address the assessment and answer as far as I can some of the specific questions that were raised. If I do not have enough time, because there were so many points, I will write to hon. Members.

Anne McGuire Portrait Mrs McGuire
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Will the Minister address the Atos contract for PIP?

Esther McVey Portrait Esther McVey
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I will get to that at the very end. Perhaps the right hon. Lady should wave to me about a minute before the end so I can ensure that I get there with what I have.

Jim Sheridan Portrait Jim Sheridan (in the Chair)
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Order. That will need to be a few minutes before the end so that the Chair of the Select Committee can wind up.

Esther McVey Portrait Esther McVey
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Thank you, Mr Sheridan.

I have been corrected, so perhaps the right hon. Member for Stirling could wave to me a few minutes before the hon. Member for Aberdeen South (Dame Anne Begg) speaks.

When hon. Members spoke about the whole DLA reform and consultation, I do not think they necessarily knew the full length of the consultation that has been embarked on. The consultation has been very thorough and has taken place over a long period. The Government code of practice on consultation recommends a minimum of a 12-week consultation, but I will put into context how we set about this consultation.

When there was a debate on whether we should change DLA to PIP, there was a consultation with disability groups, health groups and social care groups. That consultation was long before any change came into being and lasted for 10-and-a-half weeks. After that, there was a 10-week consultation on the reforms to which more than 5,500 people responded. There was then a 16-week informal consultation on the initial drafts of the assessment, followed by a further 15-week formal consultation on the second draft of the assessment, after which there was a 14-week consultation. In total there have been 55 weeks of consultation, which is a year-plus. By anybody’s reckoning that is a considerable amount of consultation. The consultation has been a real listening exercise, because there is no point in having it if we do not amend and change things as we see fit. As the Bill progressed and became the Act, key things were altered. Again, we are listening, and when we do finally table all the assessments, I believe the consultation will be reflected in them, too. Questions have been asked about when that will happen; it will be later on in the year, but it will be as soon as possible. There are many things to balance: we have to fit a specific timetable, which, as the hon. Member for Aberdeen South said, begins in April, but it would be incorrect to put something in play if we had not listened to everyone for as long as we possibly can.

I will pick up some of my notes, because the hon. Member for Edinburgh East (Sheila Gilmore) asked whether there are targets for the length of assessment. No, there are no targets for how long an assessment should take or for how many assessments should be completed in a week or a day. She is right: there are challenges, and it will be tough, but this is written into the contract. I met the two key providers yesterday to discuss how they have to engage with people and how the system has to be humane. They have to listen and be caring and all of those things, because—she is right—we need rigour and confidence in the system.

On the monitoring of quality and consistency across the PIP providers, guidance has been very strict, and training will be strict, too. They will be closely monitored for quality, auditing and the work of the health professionals. We are seeking feedback from claimants. They will be monitored again in two years, as well as this being ongoing. Should we see any discrepancies in appeals and reassessments where there seem to be issues, that will be monitored, too.

The hon. Member for Edinburgh East asked about other types of targets. There are no targets or expectations for assessor performance in the work capability assessment, and there will not be any in PIP. Yes, performance is monitored and assessors are audited. Where abnormal results occur, we will look into them, but everything has to be of the highest possible quality.

The hon. Lady talked about the initial start-up in Bootle and how it would roll out across the country. The Department will test the effectiveness of the IT system, and the assessment and referral and claiming process. The Department will also be able to validate assumptions about the timings of the process: the initial telephone call, the claim form, the completion and the assessment duration. All of that will be tested in the original bit, which goes from April to June.

The hon. Lady asked many more questions, but I wonder whether I should move on to another question, which I think all hon. Members asked, about how disabled people are portrayed in the media. The right hon. Member for Stirling correctly pointed out that the superheroes of the Paralympics make up a tiny percentage of people with disabilities. Just as I will never be an Olympian, most people with disabilities will never be a Paralympian. However, the Paralympics shone a light on an area that we hope to capitalise on and open up disabled people to mainstream media. To that end, as somebody who worked in the media for 14 years, I hope that I can bring some insight and knowledge. I have asked straight away for—I would like to say a media summit, but that might make it sound even more highfaluting than it actually is—for a media round table. When one considers that there are 11 million people with disabilities in the UK and what percentage of the population that represents, it seems only right that such organisations as the BBC or ITV would look at that as a significant audience they should be reflecting, not just occasionally but daily, in all their programmes, whether they are dramas, news or current affairs.

It may be that we have to be even more careful about the language we use. If we know that the issue will be polarised and put into headlines and TV captions—we know that that will happen—then we need to be more careful about how we talk. I have never mentioned the word “scroungers”. I am mentioning it now because other hon. Members have mentioned it, and maybe we should all stop using it.

Stephen Lloyd Portrait Stephen Lloyd
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I thank the Minister for giving way. She is covering a lot in a very short time, and I forgot to congratulate her on her new post. As I asked in my speech, will she commit, when the Government get it wrong, to going out on behalf of disabled people and very aggressively putting it right in the media?

Esther McVey Portrait Esther McVey
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I agree that we should all do that, and that is what I am aiming to do. I have, in fact, been interviewed myself and felt that the interviewer was using the wrong language. I picked up on that, because I thought it was inappropriate. Whether that was to catch me out or whatever, I felt it was inappropriate.

I am aware of the time, so I would like to answer some of the questions raised by the right hon. Member for Stirling. Many hon. Members brought up the figure of the 20% cut. The right hon. Lady said that the impression sticks, so let me try to unstick it. Where did the 20% figure come from? I have to say, and I say this hand on heart, that when I walked into the Department and took on this daunting position—a huge task, with huge shoes to fill—I said, “I want to know how those numbers came about, because I do not honestly believe I can stand up in front of people unless I know the integrity of what I am saying.” If it is not right, I will change my words accordingly. As the hon. Member for Eastbourne (Stephen Lloyd) said, if this is not what he thinks it will be, he will be a vocal opponent of it.

I have the figures. I have the numbers of what the spend would be, and this is what it was about. I asked all the medics who were setting the assessment, “Where did the numbers come from?” They said, in all honesty, they were given the task of looking at what a benefit would be for 2013—looking at the disabilities now as we perceive them. We are not looking at DLA of the 1990s—that was very much skewed towards people with physical disabilities. This had to take in everything: sensory, mental conditions, learning difficulties, and how that would be done and how it is best placed to fit. They said that they came back with this assessment, this is how it was structured, and these were the results.

The actual sums that were paid out were £12.5 billion in 2010-11, and by 2014-15 the expected, real-terms spending will be £13.2 billion. The 20% cut that people talk about was the cut in the expected rise in the benefits, because they had risen exponentially by 40% in 10 years and everybody felt that that was unaffordable. Therefore, if we wanted to give the benefits people wanted, if we wanted to look after those who were most in need of support, but equally those with great needs as well as the greatest need, this is what had to be done to be sustainable. Those were the figures and those were the facts I was given. I believe them, and that is why I am standing here today.

Let me see if I can come on to any more questions. The hon. Member for Aberdeen South asked rather a lot. I reaffirm my commitment to working with people on disability benefits. Wherever possible, we will be working with everybody. As I am running out of time and the hon. Lady will be speaking in a moment, I will come to a conclusion and send her my response.

In conclusion, the London 2012 Paralympic games truly captivated the hearts of the nation, and undoubtedly helped to shift attitudes towards and perceptions of disabled people. We now have a once-in-a-lifetime opportunity to capitalise on that. The Government want to build on that success and I am adamant that I will do so.

I have just remembered that the right hon. Member for Stirling asked a question about Atos. I am not fully aware of the answer, but it is of concern. I will address it, and my team will look at it straight away.

We have to ensure that those who face the greatest barriers get the support they need. By replacing DLA with PIP, we are safeguarding that support for the future. Not only are we doing that, but we are modifying a benefit to ensure it keeps pace with the needs of disabled people today.

I hope my comments have reassured hon. Members. I know that they wanted more reassurance, but I do not have the time. Our proposals have been developed following extensive collaboration and consultation with disabled people and, when viewed as part of a wide package of support available, are intended to enable those disabled people who face the greatest barriers to lead full, active and independent lives.

Equality 2025 (Triennial Review)

Esther McVey Excerpts
Monday 22nd October 2012

(11 years, 7 months ago)

Written Statements
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Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
- Hansard - -

Later today I will launch a review of Equality 2025 advisory non-departmental public body. As part of the Government’s continuing drive for efficiency and effectiveness all Departments are required to review their arm’s length bodies at least once every three years. The review will be carried out by the Office for Disability Issues within the Department for Work and Pensions. The review will be looking at:

Whether the purposes for which Equality 2025 were established are still necessary.

Whether the services currently undertaken by Equality 2025 to deliver these purposes are still appropriate, adequate and effective.

Whether these services are best carried out by an advisory non-departmental public body; and, if so, how might Equality 2025’s performance be enhanced and improved?

Once completed, the outcome of the review will be published in spring 2013 on the Office for Disability Issues website, I will also place a copy in the Libraries of both Houses.

Remploy

Esther McVey Excerpts
Tuesday 16th October 2012

(11 years, 7 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
- Hansard - -

I congratulate the hon. Member for Glasgow North-East (Mr Bain) on bringing this important debate before the House. It is also a pleasure to serve under your chairmanship, Mrs Osborne.

I have met the hon. Gentleman and other hon. Members who are present on various occasions—if we did not meet in person, we have spoken on the phone—about their Remploy sites. Everything he says is correct, but I want to consider everything in its entirety, because we all want the best support for Remploy staff, not only now but in the future.

We have to be open and honest about why we have this case for change, which is about sustainable work and sustainable jobs. We have to consider all disabled people of working age, which at the moment is 6.9 million people, 2,200 of whom work in Remploy factories. A fifth of the £320 million supports those in Remploy factories. Those are the finances.

However, we are also considering sustainable employment, what disabled people and disabled organisations want and what Liz Sayce’s report says. Many people want to work in mainstream employment. They want to look at different ways of engaging and moving forward. We have taken all that into account, and also looked at the losses that were being accrued year on year—£70 million. I appreciate that four years ago a £555 million package was put in over five years for a modernisation plan. However, targets were not met. They were not realistic and they did not allow the factories to continue, because they required an increase in public sales of 130%, and that just did not work.

I know that 28 factories were closed in 2008. We hoped that that could be the end and that the others would move forward, but that has not happened. As an additional way of mitigating the risk of redundancies to employees, Remploy was looking at how to put a commercial process in place. That process had to work with the Remploy staff; it had to work as a proper business model, work with Government and work with everybody whom it would touch. That is what we were trying to do, so the commercial process for stage 1 was open and transparent. It was published on the Remploy website on 20 March. That process was developed using expert advice on its design and structure and it took into account the need to ensure that employees and employee-led groups had an opportunity to take part actively and develop robust bids. The process has taken in excess of five months, and it continues.

Frank Doran Portrait Mr Frank Doran (Aberdeen North) (Lab)
- Hansard - - - Excerpts

I am grateful to the Minister for twice giving me the opportunity to meet her and discuss the process in detail. The latest meeting was yesterday. One concern that I did not raise with her is the persistent belief, at least among the staff of Remploy, that the best factories will be cherry-picked by the management. When I raised the issue with her predecessor in the House, I was assured that there would be independent oversight of the whole process. First, who is conducting the independent oversight of the process, and, secondly, will a report of their findings be made public?

Esther McVey Portrait Esther McVey
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Recognising the need to ensure proposals were robustly addressed, an independent panel was set up to provide independent assurance to the assessment process, and the panel is playing an active part in what went on. I can write to the hon. Gentleman with further clarification on that, but that was one of the key facts.

There was also encouragement of employees and employee-led groups to take advantage of a £10,000 support fund for expert advice, and also a time-limited tapered wage subsidy of £6,400 to successful bids to keep on disabled members of staff. That came about because of Remploy and the Department’s responses and the various people who came forward to look at that.

On the factories that the hon. Member for Chesterfield (Toby Perkins) mentioned—Chesterfield and Springburn —discussions are going forward. Information was put on the Remploy website in September. Nothing has been finalised yet. It is going through due diligence at the moment, but it is in best and final offer stage and getting all the support it needs. We are still waiting on facts.

Toby Perkins Portrait Toby Perkins
- Hansard - - - Excerpts

To return to the process, my hon. Friend the Member for Glasgow North East (Mr Bain) asked whether the Minister was satisfied that there was no threat of legal recourse from disappointed bidders and that the process was robust. I want to clarify whether the Minister is satisfied that the process was robust and that she is happy to take responsibility for it going forward, and that, as far as she is concerned, we are not going to come back to a west coast main line situation in which everyone says, “It was not my fault”. As long as she is happy and the process is robust, she can take responsibility for it.

Esther McVey Portrait Esther McVey
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I have held numerous meetings on the matter. I have asked the very same questions that the hon. Gentleman has asked. I have felt reassured by the answers I have been given. Remploy announced and published the commercial process on 20 March and the company has been following that process. We are aware that some people and some bidders may be disappointed, but we are content that the commercial process has been followed. So I hope that gives the hon. Gentleman suitable comfort about what is going on.

A substantial package of help and support for employees has been put in place. An extra £8 million has gone into that package. People will get their own personal caseworker, who will give them tailor-made support and help them to move forward.

The hon. Member for Glasgow North East asked several questions. One was about the emergency tax code. That was brought to my attention last month and immediately my team and I worked with Her Majesty’s Revenue and Customs to get it sorted so that the Remploy staff and their caseworkers knew what would happen and they would have their money back as soon as possible, so special measures were put in place absolutely immediately. I also checked that the staff would have money and would not be short. They would all have had their redundancy pay packages, so they would have money to live on—it would be fine—but this was put through as a special concession.

Graeme Morrice Portrait Graeme Morrice (Livingston) (Lab)
- Hansard - - - Excerpts

I am grateful to the Minister for giving way. I congratulate my hon. Friend the Member for Glasgow North East (Mr Bain) on securing this very important debate on a subject about which I have received many representations from constituents and others. On the issue of support for the work force and for those who are losing their jobs, will the Minister confirm how many people from Remploy who have lost their jobs have found alternative employment to date?

Esther McVey Portrait Esther McVey
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So far to date, 35 staff immediately found work. But we are content that with the support, the packages and the monitoring that we are hoping to provide for everyone, we will get that number up as soon as possible.

I actually got figures that I again hope will put the hon. Gentleman’s mind at ease. In Scotland, there were 111 people—that does not seem quite right. I apologise; I will look again. I will go back to the hon. Member for Glasgow North East and say that in his constituency a total of 14,600 people are disabled, and 43 of them work at the Remploy site. However, in the last year, under the Remploy employment services, 534 people had got into work. So, if we look at those figures, we can see that incredible support has gone in there to help find work for people similar to the staff working in Remploy.

I will continue with the Springburn site. Remploy communicated via its website in September that it had selected a preferred bidder for the site and that that preferred bidder is now entering a period of due diligence, which will hopefully end in Remploy’s successful exit from the business. A final decision on Springburn will be made as soon as the commercial due diligence process is complete, which we understand will be some time at the end of October.

Going forward, for Springburn and Chesterfield to secure future health care business as part of the commercial process, the Scottish Government would have the opportunity, under their devolved powers, to support medical contracts and help to secure the continuing viability of those sites. Again, that is possibly something that hon. Members can work on together.

Graeme Morrice Portrait Graeme Morrice
- Hansard - - - Excerpts

The Minister mentioned the Scottish Government. Have the UK Government had any consultation with the Scottish Government on this issue?

Esther McVey Portrait Esther McVey
- Hansard - -

We have indeed, and I will be in Edinburgh on Monday. We will have continued dialogue on that subject. I also hope to meet the factory workers in Edinburgh and while I am there I would like to see as many staff as possible—those who do not have their job now and those who do. There is an open invitation for people to come and meet me, and I will be in the factory.

The hon. Member for Glasgow North East also raised the issue of TUPE. Any purchaser of a Remploy site will have to offer a pension scheme in which transferring employees can accrue future rights. If TUPE regulations apply to a transfer, purchasers will have to match employees’ contributions up to 6% of pensionable pay, in line with pension legislation. We understand that for the Springburn site TUPE regulations will apply to the transfer.

I hope that I have answered as many questions as possible.

Frank Doran Portrait Mr Doran
- Hansard - - - Excerpts

The hon. Lady answered my question about whether there was independent oversight, but not my question about whether a report on that oversight would be published.

Esther McVey Portrait Esther McVey
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I will find out and let the hon. Gentleman know. If there is, he will be the first to know.

Graeme Morrice Portrait Graeme Morrice
- Hansard - - - Excerpts

Inspiration.

Esther McVey Portrait Esther McVey
- Hansard - -

Absolutely. It is not just inspiration, but the support of a good team. The independent panel has considered the comments of Scottish and Welsh representatives. I think a report will be coming out on that. The hon. Member for Aberdeen North (Mr Doran) and I met yesterday, and I hope that he now has a meeting with the CEO of Remploy. Straight away, I asked what we could do in the Aberdeen factory. All the points he raised with me about the assets, the factory and site ownership were dealt with this morning. I do not have the answers, but we are on to that. My phone lines are open. I am always here. If anybody wants to know anything more, I will be available to answer their questions.

Jim Shannon Portrait Jim Shannon
- Hansard - - - Excerpts

As I said earlier, we have something similar in Northern Ireland. Do the Government intend at least to seek it out and see how it works? The finance comes from the Northern Ireland Assembly and it does the same thing that Remploy does in England and Wales. A new Accept Care is opening in the north-east too, in Darlington, so some things are happening that could benefit us all.

Esther McVey Portrait Esther McVey
- Hansard - -

I will take advice from wherever it comes and that could possibly play a part in stage 2. I do not know how it could possibly go backwards and affect stage 1, but I will listen and consider what can be done for stage 2.

Question put and agreed to.

Disability Strategy (Fulfilling Potential)

Esther McVey Excerpts
Monday 17th September 2012

(11 years, 8 months ago)

Written Statements
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Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
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I am pleased to announce that later today we will publish two documents as part of our disability strategy, Fulfilling Potential. These set out how the Government will work in partnership with others to enable disabled people to achieve their aspirations and play a full role in society.

The London 2012 Paralympic games have challenged outdated perceptions of disabled people. They have provided a platform for greater understanding and inclusion, and a stronger focus on ability rather than disability. Fulfilling Potential will build on this and is about making the UN Convention on the Rights of Disabled People a living reality for disabled people in Britain today.

Last December we invited disabled people to help shape a new cross-Government disability strategy. We received an overwhelming response. “Fulfilling Potential—the Discussions So Far” summarises the issues raised, and shows how actions are already being taken across Government to address many of the issues.

We will also publish “Fulfilling Potential—Next Steps” which will take us further forward. It sets out our vision and principles; outlines further public sector reforms; and announces a new disability action alliance, involving organisations from across the private, public and voluntary and community sectors.

Convened by Disability Rights UK and supported by the Office for Disability Issues, the alliance will put disabled people and their organisations in influential roles. It will lead the way in promoting local communities which include disabled people, and identify action to change attitudes and behaviours, increase choice and control and encourage early interventions to support independent living.

We will continue to work with disabled people and publish in the autumn, an analysis of the latest statistics and research, to help build a deeper understanding of disability in our society today; and in 2013 a further strategic document and action plan.

I will place a copy of both documents in the House Library later today.

Oral Answers to Questions

Esther McVey Excerpts
Monday 10th September 2012

(11 years, 8 months ago)

Commons Chamber
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Lindsay Roy Portrait Lindsay Roy (Glenrothes) (Lab)
- Hansard - - - Excerpts

15. What estimate he has made of the proportion of workers from the recently closed Remploy factories who have gained alternative employment.

Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
- Hansard - -

In the short period since closure, 35 people have immediately found jobs, and the vast majority of workers have already taken up the offer of personalised support with caseworkers, which this Government have introduced to ensure that there is support and which the previous Government did not do. The Remploy board is still considering nine factories at the best and final offer stage. When it has made that decision, I will write to the Members affected and place a copy of the letter in the Library.

Lindsay Roy Portrait Lindsay Roy
- Hansard - - - Excerpts

I thank the Minister for that answer and welcome her to her new position. I am disappointed to learn that there is low uptake, but any new job is most welcome. Remploy Marine in my constituency, in Leven in Fife, which has an unemployment rate of 18%, manufactures high-quality life jackets that are sold internationally, and its order book is full. Nevertheless, the employees are anxious about their future, and the phase 2 bidding process seems to be shrouded in secrecy. When will we get details of the process and the time scales?

Esther McVey Portrait Esther McVey
- Hansard - -

First, I thank the hon. Gentleman for his kind words about my coming into this new position. If Mr Speaker will indulge me, I want to say how delighted I am to be here, particularly at the close of the Paralympic games, which have been such a sensational success. As Sir Philip Craven, the international Paralympics president has said, these have been the greatest Paralympic games of all time, with more medals in more sports— 120 medals—for Team GB and record ticket sales of 2.7 million in London compared with 480,000 in Beijing.

Let me return to the hon. Gentleman’s question. I know how much work he has done on this and that he delivered a 100,000-signature petition to the Prime Minister. Further work and analysis is continuing to determine the stage 2 process for the Remploy sites. Work is going forward. He, like me—I have read the words he said—wanted a viable business. That is exactly right, and that is what we are looking for. Where there is a viable business, it will continue, because we are looking for sustainable, long-term employment for all those employees.

Paul Maynard Portrait Paul Maynard (Blackpool North and Cleveleys) (Con)
- Hansard - - - Excerpts

I, too, welcome the Minister to her position. Will she remind the House how many more disabled people will benefit from the transfer of funds from Remploy, which is getting more disabled people back into work than was the case under the previous system?

Esther McVey Portrait Esther McVey
- Hansard - -

I thank my hon. Friend for that question. He is quite right. At the moment, the money for sustained employment for disabled people goes to just a fifth of the number of people it should. We are maintaining the budget of £320 million and we want it to work more effectively for more people. We are aiming to have people getting sustainable work as we move forward.

Ann Clwyd Portrait Ann Clwyd (Cynon Valley) (Lab)
- Hansard - - - Excerpts

I thank the new Minister for her swift reply to my letter, in which I raised the question of the tax rates that redundant Remploy workers have been issued with. They have been given a temporary tax code, so some of them are paying 50% of their money in tax. They cannot wait until the beginning of the next tax year, so will the Minister do something urgently about the situation, because it is adding insult to injury?

Esther McVey Portrait Esther McVey
- Hansard - -

I thank the right hon. Lady for her question. We have worked on the issue immediately. Straight away, she will be pleased to know that everybody affected will have their redundancy pay and, therefore, money. She is right to say that a 50% emergency taxation rate was put on that. We have spoken to Her Majesty’s Revenue and Customs and to the personal caseworkers they will all get, who will help them fill in the forms and get the money back as soon as possible. I thank the right hon. Lady for highlighting that issue.

Anne McGuire Portrait Mrs Anne McGuire (Stirling) (Lab)
- Hansard - - - Excerpts

First, I welcome the hon. Lady to her post and wish her well. She has a very special role as a champion for disabled people both outside and, perhaps more importantly at times, inside Government.

The hon. Lady wrote to her local paper about her local Remploy factory in Birkenhead and was highly critical of management and very supportive of, in effect, a workers buy-out. Now that she is in a position to make a real difference, will she consider halting the current Remploy programme in order to allow workers throughout the rest of the country to benefit from a workers buy-out, which is the very policy that she supports?

Esther McVey Portrait Esther McVey
- Hansard - -

I visited my local Remploy factory and met its workers, and I was hugely impressed with them. I was horrified to find out what had and had not happened with their proposed business plan, so I pursued the matter. The automotive industry on Merseyside was expanding at the time—we now have 24-hour work at Jaguar in Halewood and Vauxhall has been saved—and I thought that something could be done. That did not happen and I tried to get to the bottom of it—I was most disappointed with the management and that is on the record. What we are looking for is viable businesses, which we will support in every which way we can. I am also meeting various disability groups to consider the shape of the Remploy business in the 21st century and what we can do. I will be a champion for disabled people and I am looking at future job opportunities for them.

Jane Ellison Portrait Jane Ellison (Battersea) (Con)
- Hansard - - - Excerpts

18. What steps he is taking to support people eligible for universal credit with budgeting.

--- Later in debate ---
Esther McVey Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
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The principle behind the new guidelines is that we see and meet every individual and help them to overcome the barriers they face, and that is exactly what we will do.

Iain Stewart Portrait Iain Stewart (Milton Keynes South) (Con)
- Hansard - - - Excerpts

T9. What impact does the Minister believe the payments-by-result Work programme has had in reducing unemployment in recent months?

--- Later in debate ---
Annette Brooke Portrait Annette Brooke (Mid Dorset and North Poole) (LD)
- Hansard - - - Excerpts

There is concern among visually impaired people that they might be treated differently according to whether they use a long cane or a support dog, rather than being assessed on the level of their disability. Will the Minister reassure me that such discrimination will not exist in the final criteria for personal independence payments?

Esther McVey Portrait Esther McVey
- Hansard - -

I assure my hon. Friend that assessments will fully reflect the changes that are required for blind and partially sighted people, and that there will not be any discrimination like that. We have not finished consulting; it is an ongoing process. We have listened to people’s concerns and altered the assessment as it goes, and we will be taking all of this into account.

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

I call Mr Gavin Shuker. Not here. I call Paul Goggins.

Women’s Aid

Esther McVey Excerpts
Wednesday 14th March 2012

(12 years, 2 months ago)

Westminster Hall
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Esther McVey Portrait Esther McVey (Wirral West) (Con)
- Hansard - -

As patron of the Wirral Women and Children’s Aid refuge, I know only too well the harrowing stories of women when they arrive in refuge, having suffered terrible abuse. Obviously, the imperative is that they are looked after straight away. However, time and again, we talk about how to break that cycle of violence and that continuation of abuse. Should that not be one of the main imperatives in future, because the figures on abuse have gone up year after year? We must break that cycle of violence immediately.

Tom Clarke Portrait Mr Clarke
- Hansard - - - Excerpts

I agree absolutely with the hon. Lady, but if—as I saw at Monklands Women’s Aid—staff at centres are compelled to contemplate the financial circumstances that they are facing as an organisation, that might take away some of the time that they would like to allocate to the wider objectives that she quite properly identifies.

For many women, the fact remains that refuge is desperately needed in emergency situations when their lives and their children’s lives are at risk. I hope that I have convinced the Minster that Women’s Aid is indeed a special case.

Work Capability Assessments

Esther McVey Excerpts
Wednesday 1st February 2012

(12 years, 3 months ago)

Westminster Hall
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Tom Greatrex Portrait Tom Greatrex
- Hansard - - - Excerpts

The hon. Gentleman must know the answer to his question, but I have not suggested that the contract was agreed under the current Government.

Tom Greatrex Portrait Tom Greatrex
- Hansard - - - Excerpts

I do not know why the hon. Lady says “Ah!” from a sedentary position as though that was some great revelation, because no one has suggested anything else. After the pilots, the Select Committee report highlighted issues that should then have been dealt with, but rather than dealing with them, the Minister decided to roll out the process. That is the root of the problems, such as the huge backlog of appeals, the huge cost to the public purse of dealing with those appeals and the huge anxiety and concern of many people. Many people have worked for a number of years and now find themselves, through no fault of their own, unable to continue in their previous line of work, and they would appreciate help to get into work; many others, frankly, are no longer able to work. The process was rolled out without its problems being addressed first, and given how the system is operating, those concerns are now coming home to roost.

Youth Employment (Wirral)

Esther McVey Excerpts
Tuesday 14th September 2010

(13 years, 8 months ago)

Commons Chamber
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Alison McGovern Portrait Alison McGovern (Wirral South) (Lab)
- Hansard - - - Excerpts

Thank you, Mr Speaker, for giving me the opportunity to raise this issue of importance to my constituency in my first Adjournment debate. I should like to say a few words about young people’s employment opportunities in Wirral. Specifically, I will highlight the success of the Wirral apprenticeship scheme, touch on some wider employment issues and finally consider the numbers involved and the problem that we face in the supply of employment opportunities.

I begin by highlighting the great success of the Wirral apprenticeship scheme. Wirral council, in partnership with Connexions and Jobcentre Plus, has done an excellent job of increasing the number of apprenticeships and, most importantly, helping young people to apply for them. It has used working neighbourhood funds to support local businesses in hiring 167 young people in everything from dairy farming to jewellery design. Nearly half those young people were not already in employment, education or training, or were at risk of drifting on to the dole, which none of us wants to see.

There were two elements to the scheme. First, the council committed funding for a member of staff for 18 months if a business would commit to employing them for two years. The second, and I believe more important, part of the scheme related to recruitment support and how the council went about finding the businesses to take part and the young people to be employed by them. I pay tribute to Viv Stafford, Mel Campbell and the team at Wirral council, who worked proactively with young people and employers so that businesses were supported all along the way and young people were able to gain confidence prior to their work interview. Their priority was young people at risk of becoming a burden on the state and businesses with little existing experience of apprenticeships or of hiring young people.

Overall, the scheme resulted in not only more apprenticeships and young people who were work-ready to take up the opportunities available, but in employers gaining the confidence to offer young people more work experience. Rather than just apprenticeships per se, employers also offered work placements. I feel that the programme ought to be replicated across the country. We have real expertise in Wirral, and we can help ensure that this generation of young people does not end up missing out on the chance of success. I ask the Minister whether he supports local government playing such a leading role, and what the Government can do to back up councils that want to take that approach. My lesson from Wirral is that a cross-partnership approach involving all the responsible agencies is needed, no matter which bit of the state they are involved in. I should like to know what he thinks about that approach.

To move on from the Wirral apprenticeship scheme, there are wider issues to consider in young people accessing employment. The future jobs fund, which ensured that young people had continuity on their CVs, is now gone, and young people without work experience face a very tough labour market. My job is not to stand here and whinge on behalf of Merseyside—I will never do that. However, historic facts about our area mean that the employment picture there can be more fragile than elsewhere. It is therefore all the more important for us that Connexions, working with schools, can assist and advise young people on getting good-quality work experience placements, as well as training and mentoring. Young people need independent advice, but teachers do not always have the time to get up to speed with how the labour market has moved on. That independent advice is important.

Businesses, too, have a responsibility. They must show commitment to the next generation. When I became an MP, I went around and talked to lots of businesses in my community on how they felt about that. Thankfully, Wirral businesses told me that they absolutely want to make such a commitment. Invest Wirral has a fantastic business support team that is committed to connecting businesses with all the Government help that is available and with help from other sources. However, that depends on our local authority having the resources to provide that support. It is under great pressure given the budget cuts that are being handed down, as is all state funding.

As a side point, we should not let the media off the hook. Sometimes, there is great pressure on young people to succeed at A-levels and go straight on to a university degree, whether or not that is right for them. I would like the media more often to celebrate successful apprentices and young people who are in business. Academic success is important, but it should not be prioritised for media coverage every year at results time at the expense of all other forms of success among our young people. The more we celebrate the diversity of our young people, the more confident they will be, and we know how important self-esteem and confidence are when it comes to people achieving their hopes.

Will the Minister give me more information on what the Department for Work and Pensions and other Departments plan to do to support young people to gain work opportunities, including, but not only, apprenticeships? Will the Government support the recruitment process? I am sure he will give me a positive answer to this question: will he commit, with all Ministers, to talking up the achievements of our young people?

We know that, in part, this is a numbers game. We had a good opportunity to discuss the national apprenticeships scheme in Westminster Hall, when the fact that there are simply not enough apprenticeships out there for the people who want them was brought to light very clearly.

Esther McVey Portrait Esther McVey (Wirral West) (Con)
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The hon. Lady and I are on opposite sides of the House, but our constituencies are next to each other, and on this matter we stand side by side. We both talk very passionately about youth unemployment and apprenticeships, and she will no doubt know that I am taking on an apprentice. However, Labour’s legacy is dire. Labour brought about the highest number of young people aged between 18 and 24 not earning or learning—the proportion is nearly 20%. Although I agree with her rhetoric, the evidence of what Labour did in reality is somewhat lacking. Will she join me in welcoming the new Government’s allocation of £600 million for programmes to support unemployed young people and £150 million for 50,000 apprenticeships?

--- Later in debate ---
Chris Grayling Portrait Chris Grayling
- Hansard - - - Excerpts

The big problem that we had with the new deals was that they were effectively programmes designed in Whitehall. The standard new deal format was 13 weeks in a classroom, with relatively little financial focus on outcomes or whether people got into work at the end. It was very much about the Government paying for placements. The placements happened, but as for the outcomes of the different new deals—yes, they got some people into work, but the number who stayed in work was disappointingly low. One of the big differences with the Work programme is that it will not simply be about getting people into work, but will be about sustaining them in employment.

In particular, where young people come from the kind of difficult background that the hon. Member for North Tyneside described, the programme will not be about just getting them through the first days of work; it will be about helping them to stay there and overcome some of the hurdles that they face in the workplace, including some of the cultural aspects of working life that they do not expect. Having mentors sitting alongside them in the workplace is an extremely important part of what we are seeking to do.

I am expecting to have specialist providers serving the Wirral and Merseyside whose job it will be to work with unemployed young people, as well as those of other ages, not only helping them to find those first opportunities to gain work experience, develop interview skills and understand how to put together a CV, but going out and working with employers, match-making young people with the opportunities that are out there. As the hon. Lady will know, there are quite a large number of vacancies out there, but often a jobseeker will not know how to go about finding those opportunities. The skills brought by professional providers working with people with the potential to get into work, so that we match them with the right opportunities, are fundamental.

We should set that against our plans for the skills system. We are currently consulting on how the further education and skills system can be developed to respond effectively to the skills gaps that we need to address. We want to give training providers greater freedom to target provision to meet local needs, alongside giving colleges and other providers greater local autonomy to say, “This is what we need in our area,” ensuring greater provision of apprenticeships and putting in place the Work programme, which will be both local and national. The programme will be a national scheme, but the responsibility for delivery in each area will be devolved to a provider in a local community who will be specifically mandated to work with organisations in the voluntary sector and organisations such as Wirral council.

Indeed, I very much want to see local authorities participating locally in the work that is done, working with the providers and sometimes doing the work themselves. What we will end up with is local partnerships collaborating to match individuals with employment opportunities and to overcome the hurdles that often exist between the two. Although we face tough and straitened times—I will be absolutely frank and say that, as an Administration, we will not be able to do all the things that we would like to do—we need to make that investment in skills development and deliver those apprenticeships.

Esther McVey Portrait Esther McVey
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As my right hon. Friend would like to see that work, let me invite him, as a good friend of Merseyside, to come up to Wirral and see our apprenticeship scheme in action.

Chris Grayling Portrait Chris Grayling
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I would be very happy to do that at some point. I am always happy to revisit Merseyside. There are some great people there, and it is a great community. Liverpool is a magnificent city. I know that my hon. Friend the Member for Wirral West and the hon. Member for Wirral South represent important constituencies that are also nice places to live in and to represent, and I would be delighted to come and see some of the work being done there at some point.

I share the aspiration of the hon. Member for Wirral South to ensure that as many young people as possible can find work, although there will undoubtedly be times when she and her colleagues disagree with me and my colleagues about the means that we are using to try to achieve that. We certainly face tough and challenging times financially, and that will make it more difficult to do all the things that we would like to do. At the end of the day, however, we all share that aspiration. I do not want to see large numbers of people whose lives are wasting away while they are stranded at home on benefits, doing nothing.

We need to make changes to the welfare state to improve the incentives to work. We also need to give people an extra push, particularly when they have been out of the workplace for a long time or have never worked. Such people can build up problems with their confidence, and they are often uncertain about how to get into the workplace and how to go about getting a job. We have to help them to overcome that. We all want the same thing. I want to see as many people as possible of all ages, but particularly young people, in work in thriving businesses in an enterprise culture that we have created, in which businesses are growing and developing, and emerging from our universities, and in which companies are coming into the UK to invest and create jobs. If we can create that dynamic business environment, provide investment in skills and deliver really effective back-to-work support for those who are struggling to get work, we shall be able to achieve the goals that the hon. Lady rightly sets for her constituents and for those of all right hon. and hon. Members across the House.

Question put and agreed to.