DWP: Performance

Heather Wheeler Excerpts

Monday 30th June 2014 Commons Chamber

[Nigel Mills (Amber Valley) (Con)]

We are talking about chaos and waste in the welfare system, but I can think of no bigger risk than for a new country to try to produce a new welfare system at top speed. Who knows what damage will be done in that situation? I therefore cannot agree with the closing remarks of the hon. Member for Banff and Buchan (Dr Whiteford).

If we want to know what chaos in a welfare system looks like, we can look back four long years to 2010, when far too many people claimed too many different benefits for far too long, at too great a cost to the taxpayer. The incoming Government had to tackle that situation. I normally agree with the Work and Pensions Committee Chair, who is wise and learned on such issues, but I do not think she was right to imply that the solution to the risks and unknown problems of welfare reform—she was right about those—is to do nothing. We have been bolting on new and enhanced bits to the system for decades. She says, “Let’s leave it like that. If we bolt on a few more bits and make a few tweaks, we can sort it all out,” but at some point a Government had to bite the bullet and say, “We need a new system. We have to make it simpler and clearer for people to understand what they are claiming. We need to make it easier for people to know when they need to notify the Government of changes.” Fundamentally, the Government needed to make it easier to administer the system. We could not continue with people claiming six different benefits at the same time, not knowing what they were doing. That was not fair on them or on the system. That is what led to the huge amount of fraud and error that this Government and the previous one have been trying to tackle in different ways without getting the number down by very much. The only way out of the mess is a simpler benefits system that everyone can understand.

We must all accept that progress on universal credit has not happened at the speed that the Government planned and that we would all have liked, but what was the alternative? Was the alternative for the Government to press on and say, “It would be bad news to slow down. Let’s press on at full speed and hope we get it right”? That would have been a complete disaster and a terrible political decision to take. It would have risked people not getting the benefits to which they are entitled. In the early days, they might have got more than they were entitled to, before finding that they had to pay it back a few months later. That situation would have been unacceptable. We saw that with tax credits and were right to learn from the mistakes. The Government are right to say, “Look, we have problems with the system. Let’s slow it down and trial it properly. Let’s get it right before we put millions of people through it and risk making their lives even harder.” That was the right decision.

I note that the motion does not mention the positive things that the Department has done. It does not mention that unemployment is down—by 31% in my constituency in the last year. It does not mention the pension changes, which are huge steps in the right direction. Nor does it mention the child maintenance reforms. I shall not suggest that they will work perfectly first time—that would be a brave claim after the history of the last 20 years—but the system now looks fairer and tries to encourage the right behaviour, not the wrong behaviour.

The welfare reforms are very important and we need to get them right. We need people to have faith in the welfare system. What we hear on the doorstep is that people do not believe that the system is fair. They do not believe that the people who get benefits actually deserve them, but we all know that most people who get benefits are entitled to them, they claim the right amount and they try to work the system properly. The only way to change the public perception so that people see that the system is fair is to get it right, drive out the errors and complexity, and show that it is fair.

As part of that, assessments need to work. It is clear that the Atos contract was failing miserably. It was too tight a price and the company was forced to try to go for volume rather than quality. We need to go in the right direction on that. I also accept that the PIP assessments started out too slowly. The contractors were trying to get them right, but they were taking far longer than it was thought they would. What did we want the contractors to do—rush the assessments or have unqualified people perform them? That would not have been a sensible approach.

[Heather Wheeler (South Derbyshire) (Con)]

Does my hon. Friend agree that the important thing about the PIP assessments is that they are done correctly? Interestingly, some people are getting a higher award because the assessments are being done properly now.

[Nigel Mills]

My hon. Friend is right. We both represent Derbyshire, a region that was in the initial phase of PIP, so we have seen how the system went wrong at the start. I would be the first to blame the contractor for some of the mistakes that were made, the speed at which the assessments were done, and how hard it was to get any information. That is now improving slowly, and I commend the Minister for making real changes that are helping. I sincerely hope that when we let the new work capability assessment contract, we learn from the problems of too little money, too much volume and too slow a pace. We need to get these contracts right because we need people to have faith that the assessments produce the right answer; otherwise, we will be in a right mess and have no one who can deliver these assessments in a way that is trusted. We need the next contractor to be supported to get this right. It needs to perform and we need to help it perform. We need to watch the next contract award carefully to make sure that it is got right. We all want a welfare system that is fair and seen to be fair, but if we cannot achieve that it will be a disaster for our society.

--- Later in debate ---

[Mr Mark Hoban (Fareham) (Con)]

I have sat through this debate and listened carefully to speeches made by Opposition Members, and it appears to me that they believe that history started when this Government came into office. A collective act of amnesia has taken place, as demonstrated by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams). She needs to remember that employment and support allowance and the work capability assessment were introduced when her party was in government. It designed the system and the process, and it awarded the contract to Atos, so Labour Members have to think about their role in all this. Not only did they demonstrate collective amnesia, but they have not put forward one idea as to how we can reform welfare, how we tackle dependency and how we help more people get back into work. Labour Members have forgotten their record and the scale of the challenge this Government inherited when we came into office in May 2010.

The Opposition have forgotten that they left behind a complex system of benefits, where it was unclear to those out of work whether they would be better off in work or out of work. I have sat down in jobcentres and heard Jobcentre Plus advisers spend 15 minutes with unemployed people trying to work out whether they would be better off working than not working. It was not clear all the time whether someone would be better off in work, which is why it is right to introduce universal credit. We cannot have a welfare system that sends inconsistent and unclear messages to our constituents who want to work. Universal credit is vital, not just because it changes and modernises the IT the Department uses, but in order to change the culture, so that people know automatically that they are better off in work than out of work, and that they are better off working more and earning more rather than working less and earning less. That shows the mess we had to deal with when we came into office in May 2010.

The previous Labour Government, as with every Labour Government, had left office with unemployment at a higher level than when they came into office. That is another part of the legacy we have had to deal with. What should we say about youth unemployment? It had gone up by 50% under the previous Government and, worse still, it had increased when the economy was growing quickly. That is not my observation; it is the observation of David Miliband, the former Member for South Shields. That is the situation we inherited, and what we have done in the past four years is reform the welfare system to ensure that it encourages people to work, that it is stable in terms of the fiscal position and that it is fair.

How is it fair for someone who is in work and working hard to take home less every month than someone who is on benefits? That shows why it was absolutely right to introduce the benefit cap. Not only did we do that to control the cost of benefits, but as a result of hard work by the staff of Jobcentre Plus and local authorities, 6,000 people who would have been affected by the benefit cap have now gone into employment. We should recognise that, and we should be applauding people for doing that and tackling the culture of dependency we inherited when we came into office in May 2010.

The other thing we have done that the Labour party will not like is ended the spare room subsidy in social rented accommodation, thus saving the taxpayer money and promoting exactly the same principle which Labour implemented when it was in government but has carefully forgotten about; the Labour Government did not have the spare room subsidy for private rented accommodation but they did have it for the social sector. Labour Members will not accept that what we did was provide consistency and fairness, and help tackle the housing benefit bill which rose so catastrophically quickly while Labour was in office.

[Heather Wheeler]

I have mentioned this once or twice before in the Chamber, but when I was the leader of South Derbyshire district council, winning in 2007 for the first time for the Conservatives, we had to implement the Labour policy in 2008 on the spare room subsidy for the private sector. So what is fair? People only want fairness, and I am sure my hon. Friend would agree with me on that.

[Mr Hoban]

My hon. Friend is absolutely right and what she says again highlights the amnesia of Labour Members. They have forgotten what they did in government and they are pretending that any changes happened after we came into office in May 2010.

One thing that had struck me was just how technology had bypassed the jobcentre; the previous Government had let Jobcentre Plus become out of date and inefficient. The launch of Universal Jobmatch was a huge achievement—modern technology was being used to help match the right people with the right vacancies—but do we hear any praise for its roll-out from Labour Members? No, they are not interested in the good news. They are not interested in the fact that the Youth Contract has helped get young people into work by offering work experience places with the private sector, as opposed to the expensive schemes produced by the previous Government. We see hints of those schemes return again in the future jobs fund, which is one of the few ideas that Labour talks about in opposition.

We need to ensure that we get value for money and that we get people to work in the private sector. It is the private sector in this country that is creating jobs. We have seen a tremendous improvement in private sector job creation over the past four years. Some 2 million jobs have been created by the private sector, which is five times the amount of jobs lost in the public sector. That is a tribute to the businesses in this country, which have responded to our long-term economic plan and created the opportunities. It says something else as well: if we create clear incentives for people and make them understand that work pays, we will see more people coming forward to take up the jobs. That is why the employment rate is currently just shy of its all-time record. We are seeing jobs being created in this country, and three quarters of them are permanent jobs. We never hear about that from the Labour party. All it wants to do is talk down the jobs that its constituents get and the jobs created by businesses. That is damaging this economy and the confidence of communities up and down the country.

If Labour wants to demonstrate that it is fit for office, it needs to stop talking down the economy and start talking up the achievements of companies up and down this country. If it does not do that, the message that people will get is that Labour has learned nothing from its time in government; nothing about how to tackle the dependency culture; nothing about the complex benefits systems it left behind; and nothing about how to be on the side of those who work, those who want to play by the rules and those who want to see everyone else treated in the same fair fashion. That is what we have sought to do.

Welfare reform is a key part of our economic legacy. It has helped to provide the supply of workers that we need, and it has given hope to people. We know that people in work are far less likely to be in poverty than those who are out of work. That is why welfare is a key part of this Government’s reforms. If we get welfare right, the economy right and ensure that people have education and skills, we will continue to see the job creation that this country deserves.

--- Later in debate ---

[Heather Wheeler (South Derbyshire) (Con)]

I am probably tail-end Charlie on this occasion, so I will be brief. The Opposition have given us a tour de force on what they think is wrong in their constituencies, but when they look at themselves in the mirror and see the pain and misery going on in their constituencies, I wonder what it must look like to them when they look over to our side and see, for example, my hon. Friend the Member for Tamworth (Christopher Pincher) talking about how unemployment has been cut by at least a half or my hon. Friend the Member for Fareham (Mr Hoban) talking about the changes that have happened in his constituency.

We on the Government Benches like to think that the glass is half full, because we are prepared to roll our sleeves up and provide leadership in our constituencies. We have provided job fairs in our constituencies and worked with food banks and mental health charities, for example. I know that there are some good, honourable people on the Opposition Benches—

[Kwasi Kwarteng]

Who?

[Heather Wheeler]

I would never name them; Mr Speaker would not appreciate that.

I say to those honourable people who earn their money as MPs and are proud to represent their constituencies, “Actually, guys, what is happening in your constituencies? What is going to change in your constituencies? When are you going to get out of the mental state that you seem to have, whereby everything is bad, nothing is ever going to change, nothing is ever going to get better. Well, it is.” Unemployment in South Derbyshire used to be 25%; now it is 1.8%. We used to have 13 mines; we do not have those any more, but we have apprenticeships, we have engineering, and we have tourism. We have numerous really special jobs, and people are working jolly hard. They are rolling their sleeves up because they want better for their families. They are not prepared to live on welfare. They are not prepared to have that as a lifestyle. They want everything for their families in the future.

It is sad that we have spent four years trying to turn the oil tanker around. Welfare used to be “what you did”, but things cannot be like that any more, and I want Members in all parts of the House to realise that they have to change. We must live within our means. We want people to come out of this in the right way. We want to help all our mental health charities, and we want to help all our young kids to get apprenticeships. That is the way forward; welfare is not.