Employment and Support Allowance and Universal Credit

George Kerevan Excerpts

Thursday 17th November 2016 Commons Chamber

[Justin Tomlinson]

I think that is twice as good as the current plans—it is a brilliant suggestion. All these targets focus minds, and this one made a difference in terms of pushing. That was a lot of what we had to do. We did not necessarily have all the levers ourselves, so having that target to focus minds makes a significant difference.

Wages have increased by 2.3% this year against the backdrop of an inflation rate of 0.9%—that fell again this week, helping people. We have also extended childcare. Let me briefly talk about universal credit, which will make a significant difference.

[George Kerevan (East Lothian) (SNP)]

When the hon. Gentleman talks about rising incomes and wages, the implication is that more people in work will benefit, but as a result of the collapse in the value of sterling, the Bank of England predicts a 10% fall in real incomes over the next three years.

[Justin Tomlinson]

We are awash with predictions from experts, as we have been since the middle of the referendum campaign. So-called experts predicted that inflation would spike this week, but we saw it fall. We will see what happens. Good Governments keep a close eye on these things and act accordingly.

We are still some way away from the full roll-out of universal credit, but our aspiration and the difference that this will make for people are significant, because through universal credit people will have a named work coach. The hon. Members for Gateshead (Ian Mearns) and for Glasgow North East (Anne McLaughlin) highlighted some examples of people’s experiences, and we have all encountered difficult cases in which the system has failed. One key advantage of the full roll-out of universal credit is that every claimant will have a personal, named coach who will stay with them. The job of the coach is not only to help people to get into work, but to navigate all the challenges they face when dealing with complex benefits. If the system does not support claimants in the way it should, the coach will help them to address that. People will not have to rely on going to their Member of Parliament, councillors or local citizens advice bureau, and that will make a significant difference.

--- Later in debate ---

[George Kerevan (East Lothian) (SNP)]

I join other hon. Members in commending my hon. Friend the Member for Airdrie and Shotts (Neil Gray) not only for securing the debate but for mobilising such a cross-party coalition. I must also commend the Minister for Disabled People, Health and Work, the hon. Member for Portsmouth North (Penny Mordaunt), for making notes and being attentive during the debate. There are many Ministers that we could all name who do not do that. I know that she will not give much ground at the end of today’s debate, but I hope that she will take away the feeling of the House on this matter and acknowledge the cross-party view that we should delay the implementation of the cuts to the work-related activity component of the employment and support allowance, at least until we have seen the outcome of the Green Paper.

Interestingly, the underlying reason for a delay has been given to us by the Government themselves. They have implicitly admitted that there is something wrong with the disability payments system for those seeking to get into work. They are looking at the matter again, and we know that the Green Paper consultation period will finish in February. There will then be discussions, and the Government will come back with something after that. All this could take a year or perhaps slightly longer, and we might not see any resolution before the autumn statement of 2017 or possibly in the Budget of 2018. So why change the system now? Why give the civil service more difficulties by changing it now and having to change it again in a year or 18 months’ time? The Government have given us the rationale for a delay.

[Mr Burrowes]

The hon. Gentleman has talked about timing. I want to be more optimistic and give the Government an opportunity here. They are already responding to suggestions about an integrated approach in the Green Paper. We heard announcements yesterday relating to mental health and to homeless jobseekers facing sanctions. I hope that we can look forward to more announcements before April that will mean that we do not need to pause. Let us remain hopeful that we do not have to wait until April for the vision of the Green Paper to come to fruition.

[George Kerevan]

I am happy to accept that optimistic approach. The hon. Gentleman will possibly have more influence on the Government than I will, and the sooner that happens, the better. In the spirit of this debate, I am trying to be as reasonable as possible in giving the Minister information to take back to the Government.

The most frightening statistic that I have read in recent months relates to the rise in the number of people with disabilities in the adult workforce. The figure is something like 400,000 since 2013, so this is not a diminishing issue; it is a social problem that is rising. I suspect that an awful lot, if not the majority, of those citizens with disabilities are suffering from mental health issues. That is precisely the group that comes in and out of employment. It is the strategic group for which we have to craft a benefits system that will help them through the process and give them the support and encouragement they need to get back into work permanently. This is not just another component of the welfare system; it is a key component for dealing with a growing problem, so again we have to ask the Government to look at the issue and not just to make short-term changes. They need to get the Green Paper through and find a permanent solution.

[Justin Tomlinson]

The hon. Gentleman is making a powerful point. He is right to highlight the fact that 50% of the people who go through ESA will have a mental health condition. We should recognise the fact that society is getting better at recognising those with disabilities, which is why we are seeing an increase in the numbers. We also have an ageing population, and 81% of disabilities are related to age.

[George Kerevan]

I could not agree more with the hon. Gentleman, who made an impassioned and elegant speech earlier. Indeed, I am happy to commend the former Prime Minister, who made an impassioned effort to direct the Government to deal with mental health issues. In the light of that, let us not rush into tinkering with the ESA work-related activity component. Let us leave aside these short-term changes until we get a permanent solution on which we can all agree.

The hon. Member for Waveney (Peter Aldous), who is no longer in his place, spoke earlier in the debate. Like me, he represents a constituency in which the full-service roll-out of universal credit has begun. It began in my constituency in March 2016. One of the problems that would emerge if we were to proceed with the ESA work-related activity component cuts, along with ending the eligibility of new claimants under the universal credit regime after April 2017, is that that would create a two-tier system.

Leaving aside the philosophical issues about universal credit, I just want to point out to the Minister that one of the problems is that the full-service roll-out is not working well. This has become the dominant issue in my postbag, with which my constituency office has to deal. With the best will in the world, Jobcentre Plus staff are trying to tackle the problems with the full-service roll-out, but we have had computer problems including constant software bugs and changes. The inability to adjust to the new system has meant that the citizens advice bureaux and the libraries, which are run by the local authority, have been deluged with requests for support by people who are trying to readjust to the universal credit system. Given that the roll-out is not going smoothly, any suggestion that we can suddenly reduce ESA WRAG to the JSA level in April and that it will go through smoothly is wrong. I want to put it on the record that those of us—this has nothing to do with party or opposition to the Government—who are dealing with the full service roll-out know that it is not going well. We should not be changing the way the system works until we know that it is working in a positive way.

There is no one in this House who would not want to see more people with disabilities get back into the workplace, but there is a specific local problem. All the statistics show that we are actually as near to full employment as we are ever going to get. The hon. Member for North Swindon (Justin Tomlinson) was rather scathing about experts and statistics, but they are all that we have to work with. The latest figures from the November Bank of England inflation report suggest that the jobs market will remain tight over the next three years, so the Government must bear that in mind when considering the prospect of getting large numbers of people with disabilities back into the labour market. If we are to get more people back into work, we will have to work with employers and look much more closely at their response.

If there is any lurking suspicion in Government—I am not saying that there is—that reducing ESA WRAG will force more people back into the labour market, I can tell them that that will not work. If that was ever the approach—I am not saying that it was—not only would it be callous, but it would be ineffective. We have to work with employers to put systems in place to enable and prepare them to take more people with disabilities into the labour market. That is a longer-term problem, which will be not be resolved in April by cutting ESA WRAG.

My final plea to the Minister—she has listened attentively and I thank her for that—is to go back to the Treasury and the DWP and rethink the change. It is only a week until the autumn statement, and those of us with any knowledge about how the Treasury works will know that the midnight oil will be burned this weekend as the final changes are made to whatever will be announced next week. There is still time to rethink these cuts.