amendment of the law

Iain McKenzie Excerpts

Tuesday 25th March 2014 Commons Chamber

[Mr Iain McKenzie (Inverclyde) (Lab)]

We have heard from this Government for some time that we are all in this together, but with Budgets such as this one we are not getting out of it all together, as it would seem that the coalition Government are determined to fast-track the wealthiest. I say that because this Budget did nothing to tackle the cost of living crisis, and the Government just do not understand the difficulties ordinary people are facing. Yet in this Budget the Chancellor did create a structural welfare cap—it is the only thing this Budget does on welfare.

Worse still, the Budget does nothing to address the multiple failings of the Department for Work and Pensions. The DWP appears to be a in a total shambolic mess, so it is depressing to note that DWP inefficiency throws large amounts of taxpayers’ money away on failed IT projects. In autumn 2013, it was announced that the DWP had written off £34 million of IT work on the universal credit programme. In addition, a further £140 million of money already spent was under review to determine whether the IT developed had any lasting value. Despite the write-off, the projected IT budget for the universal credit programme was increased by 60%, from £396 million to some £635 million. Early this year, we were given more bad news; the DWP had completed an internal audit of its IT strategy which revealed serious deficiencies in the Department’s technology plans. This Government seem to be focused more on waste than welfare.

Where better to witness the waste of time, effort and money than the Government’s Work programme? It was devised to incentivise prime contract holders to focus extra efforts and resources on those who are hardest to get into the labour market. It would seem that instead of doing that, the prime contract holders have been creaming and parking: focusing on the easiest to place and reducing attention on the hardest to place. The Government’s own assessment of how the Work programme is going, conducted for the DWP by independent experts, suggests that it is still badly under-performing. The Work programme evaluation interim report was signed off ready for publication in September, but has been sat on ever since—I wonder why that is. Could it be that the whole payment-by-results contract structure does not seem to be doing what it was meant to do? So we have no work for the long-term unemployed, and delays to benefits and benefits assessments resulting in people using food banks. Some 73% of the people using food banks are doing so because of benefit delays. The Department for Environment, Food and Rural Affairs report on food poverty has not been made public. I suspect that is because it links food poverty with this Government’s welfare reform.

What can we say about the performance of these reforms? Incapacity benefit is being replaced with the employment and support allowance, with those already claiming IB being reassessed to decide whether they are capable of work or eligible for ESA, and with the assessments being carried out by Atos Healthcare. Like many MPs, I regularly meet sick or disabled people who are not able to work but who have been described as fit to work by Atos or by the DWP. The Minister with responsibility for disabled people, the right hon. Member for Hemel Hempstead (Mike Penning), has described the contract with Atos as a “mess”. Some 600,000 people across the country have appealed against decisions made by the Government to cut their benefits. Of that number, 60% have been successful. Such figures clearly prove that something is wrong with the process.

Atos is now saying that it wants to pull out of the contract early because of the threats being made against its staff. The chaos is costing taxpayers millions of pounds in assessments and tribunals, and it is causing distress and anxiety for thousands of disabled people.

Let us look at how the personal independence payment is shaping up. Atos will continue to carry out assessments on more than 3 million people receiving disability living allowance, soon to become PIP. Some constituents have been waiting months to be dealt with. However, even when Atos proves it is decent in its assessments, the Department for Work and Pensions overrules it, which is scandalous.

Let us look at another reform, the work capability assessment, because there is clearly a pattern forming here. In my constituency of Inverclyde, I have seen first hand the way in which people can be treated. One constituent was diagnosed with brain cancer. His surgeon, GP and even Atos said that he would never work again, but the DWP said that he should work and sanctioned him. It has taken many months to get back his payments. On top of all the worry, his family were faced with financial worry.

Another constituent suffering from cerebral palsy who could not travel for assessment was refused a home visit. Similarly, a constituent who was seriously injured in an accident at work was advised to travel to Glasgow for assessment, but, again, they were unable to travel because they were in so much pain. It gets worse. This constituent then had their benefit stopped because Atos sent the assessment forms to the wrong address. If it cannot get the address right, what chance do my constituents have? Those are just a couple of examples of people I have been dealing with. Clearly, my constituents have not been treated with the fairness and decency that they deserve, and the Budget does nothing to address that.

Last but not least is the bedroom tax. The best I can say is that in Scotland, thanks to a Labour Bill in the Scottish Parliament which was at last supported by the Scottish Nationalist party Government, the bedroom tax will not apply there next year. The bedroom tax is inhuman and should be abolished and Labour will abolish it across the UK.

[Mr Jeremy Browne (Taunton Deane) (LD)]

rose—

[Mr McKenzie]

I will not give way, as I am just about to finish. We will also introduce a Budget that recognises and addresses the cost of living crisis that people up and down this country face.