Benefit Sanctions

Grahame Morris Excerpts

Tuesday 13th December 2022 Westminster Hall

[Grahame Morris (Easington) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Pritchard. I will endeavour to heed your advice about the timings. I thank my good and honourable friend and comrade, the hon. Member for Glasgow South West (Chris Stephens), for securing this important debate. I also congratulate him on his assiduous work in questioning Ministers, both in the Chamber and with the use of written questions. I also thank him for sharing the figures that he has discovered—the constituency-based figures—with other Members.

In my remarks, I will first go over the purpose of universal credit and look at the level of sanctions. I also want to stress the human cost of sanctions. Universal credit is the last line of the social security safety net. It is set at a level no one should fall below. By any standard, it is set at a very low level. Let us just remind ourselves that for a single person under 25 the standard allowance—this is a monthly allowance not a weekly allowance—is £265.31. There are additional premiums for disability and so on, but the standard allowance is intended to cover council tax, utilities, food, clothing and other bills. Sometimes the housing element does not meet the full rent, so there is a top-up element for rent as well.

For a couple over 25, the standard allowance is £525.27. In a functioning economy, housing, heat and food should not be scarce commodities. They should be readily available, whether an individual is retired, employed —many people are in low-paid, insecure employment—or in receipt of social security. Universal credit should alleviate poverty. Instead, sanctions are entrenching hardship and destitution. It is a terrible shame that the Government do not put the same effort into hunting down tax evasion and apply sanctions against the very wealthy individuals who evade payment of many millions of pounds in the tax that they owe.

The level of sanctions is excessive. I thank again the hon. Member for Glasgow South West for highlighting the figures and sharing them. He mentioned that throughout the whole country the figures are as follows: in June 2020, there was over £34 million in sanctions; in July 2022, a little under £35 million; and in August 2022, £36,397,000—£36.5 million basically. If we total those together, sanctions at that level is almost half a billion pounds a year.

Where is the one-nation, caring and compassionate Conservative party, if the Government force people into poverty and destitution, particularly those who are vulnerable? My right hon. Friend the Member for Hayes and Harlington (John McDonnell) quoted the figures for his constituency, but the figures are worse for my constituency of Easington. Deductions amount to roughly £75,000 a month from people who are in the direst hardship before the deductions for advance payments, for bedroom tax, or overpayments caused by administrative error or neglect.

The hon. Member for Glasgow South West made a great point about digital exclusion and the number of people who simply cannot access the system because they do not have even a basic smartphone or the wi-fi connectivity to be able to do that. The consequence is rising poverty, growing queues at food banks, and now the need for the voluntary and community sector to create warm spaces to accommodate people and at least give them a hot drink and some shelter, particularly in this terrible cold weather that we are experiencing. Sanctions harm society and can have tragic consequences.

I want to quote a BBC article dated 10 May 2021. It is a moving piece entitled “Deaths of people on benefits prompt inquiry call”. The article states:

“Cases where people claiming benefits died or came to serious harm have led to more than 150 government reviews since 2012”.

It highlights cases, including this one:

“Ms Day, 27, who had been diagnosed with emotionally unstable personality disorder, had previously said her benefit claim left her feeling ‘inhuman’, her sister told the BBC.”

After Ms Day’s death, the inquest concluded that the authorities made 28 errors in managing her case.

In another case:

“Errol Graham starved to death in 2018 while seriously mentally ill. His benefits were stopped when he failed to attend a work capability assessment and did not respond to calls, letters or home visits from the DWP. When his body was found, Mr Graham weighed four-and-a-half stone (30kg) and his family said he had used pliers to pull out his teeth.”

We need to end the sanctions culture. It harms society, leaves the poorest in destitution and places the sick, the ill and the disabled in extreme circumstances in which they can often see no way out. The Minister can act by introducing a moratorium on sanctions. Sanctions should not be used routinely; they should instead be reserved as a last resort for the most extreme circumstances and cases. This is a matter of life and death. The Minister has an immense responsibility to safeguard those in need and the vulnerable. I urge him not to fail them as his predecessors have failed them, and to end the sanctions culture we have today.

--- Later in debate ---

[Guy Opperman]

Plus one. The long and short of it is that, in that time, I have engaged at length with multiple employers, Jobcentre Plus and individual work coaches at the Department for Work and Pensions.

I will endeavour particularly to address the points raised by the hon. Member for Glasgow South West, given that this is very much his debate. He has engaged with the Department on a number of individual cases, and I will endeavour to write to him on the specifics of the particular case that he raised most recently. I am advised that we have responded to the case that he raised today, but I undertake to write to him with more detail before Christmas. Given the circumstances that we face, the letter will obviously have to be communicated by email as well as post.

I turn to the second point. With no disrespect to the hon. Member and other colleagues who have raised this issue, I do not recognise the comments against individual DWP members of staff. Where there are particular examples of named individuals who people genuinely feel have transgressed and behaved in an inappropriate way, clearly there is a process that must be entered into.

It is certainly not the case, in any way whatsoever, that there has been a change of policy by individual Ministers—either by myself in the 47 days that I have held this post, or by previous Ministers. I cannot speak for colleagues who have held these positions.

[Grahame Morris]

I am sure the Minister gives that assurance in good faith, but how does he explain the rapid increase in the level of sanctions in recent months? Can he rebut the allegation that there is a sanctions regime that incentivises DWP staff to apply sanctions?

[Guy Opperman]

On the second point, I am not aware of any such policy or any such incentivisation in any way whatsoever. If the hon. Gentleman has any evidence of such incentivisation, he should publish it and name it individually, because there is no such evidence as far as I am aware.

The hon. Gentleman also asked about the rise in the numbers. It is right to have a legitimate discussion about what is a fair and effective welfare system that supports people into work and provides value for money for taxpayers. Our work coaches support claimants by setting out the activities to move them into work or to progress in work and work more. Activities are set out in the claimant commitment, which is surely the start or base of all the discussions. They are tailored to reflect individual circumstances and take into account health conditions, caring responsibilities, current work and opportunities for training.

The hon. Gentleman asked specifically about the rise in the number of sanctions. Some 98.2% of sanctions are for missing a meeting with a work coach. Such sanctions can be quickly and simply resolved by attending another appointment. The evidence is that approximately 50% of such sanctions are resolved with mandatory reconsideration.

I wish to address in particular the issue in relation to the most vulnerable. It is right that the most vulnerable in society receive extra support. The Government have clearly shown a commitment to that by adding a further £26 billion in the cost of living support in the autumn statement, on top of the £37 billion for 2022-23 that we announced earlier this year, in May.

Where benefit claimants have vulnerabilities, safeguards exist to ensure that they are not sanctioned inappropriately. Those with severe health and mental health conditions, those with full-time caring responsibilities and those with children under the age of one are not required to look for work and cannot be sanctioned. Many of the most vulnerable receive other elements of universal credit in payment, such as housing, child or disability support. Those payments are not affected by a sanction.

Finally, when people experience particular challenges, such as childcare difficulties, accommodation issues or bereavement, work coaches have the discretion to switch off work-related activities for a period of time. Such measures enable us to support vulnerable claimants and provide tailored support. To answer the follow-on question, we have a well-established system of hardship payments, which are available as a safeguard if a claimant demonstrates that they cannot meet their immediate and most essential needs—including for accommodation, heating, food and hygiene—as a result of sanctions. I am advised that the relevant percentage is 1.987%.

Various colleagues made specific points. The hon. Member for East Lothian (Kenny MacAskill) and the hon. Member for Slough made the point that work is hard to find. I will address that point in two particular ways. First, the evidence from the labour market statistics shows that the employment rate is up 0.2 percentage points on the quarter; the number of payroll employees is up on pre-covid levels by 932,000 to a record high; and the inactivity rate has fallen. On the vacancies rate, which surely relates to the point that work is hard to find, there were 1.2 million vacancies. Although obviously it remains high, the rate has fallen for the fifth consecutive month, to 1.187 million. Inactivity, which is a long-term issue, has fallen by 0.2 percentage points on the quarter, to 21.5%.

Scotland was raised specifically, so let me give the Scottish figures. The number of people employed is at 2.725 million, up 22,000 on the quarter and up 61,000 on the year. The employment rate is at 75.9%, up 0.7 percentage points on the quarter and 1.4 percentage points on the year. Unemployment is at 93,000, down 21,000 on the year and 12,000 against February to December 2020. The number of people in workless households has fallen by 113,000 since April to June 2010.