DWP: Performance

Ian Paisley Excerpts

Monday 30th June 2014 Commons Chamber

[John Hemming (Birmingham, Yardley) (LD)]

I apologise to the House for having been in a Statutory Instrument Committee—in fact, on DWP issues—listening to the hon. Member for Rhondda (Chris Bryant) padding out his speech while saying very little. That is essentially where we are: we are not quite sure what the Labour party’s alternative is to what we are doing. However, Labour has a motion. In it, Labour complains that

“projected spending on Employment and Support Allowance has risen by £800 million”.

That tells us that Labour would prefer that perhaps another 160,000 people who currently get ESA not get it.

I am concerned about some areas. I have taken over as chair of the Lib Dems Back Bench parliamentary policy committee, and one issue I have expressed concern about is sanctions. There is no question but that people are sanctioned who should not be sanctioned. I thought that we should find out about more such cases, so I asked my local jobcentre to put on the wall a letter saying, “I am worried about people being wrongfully sanctioned. Can you please contact me if you have been wrongfully sanctioned?” The jobcentre said no—that it would not put a letter on the wall—which caused me concern, so I have written to Ministers to ask them to consider that issue. I take the view that jobcentres should make people aware of alternative advice services, be they the local Member of Parliament or the CAB.

[Ian Paisley (North Antrim) (DUP)]

Will the hon. Gentleman give way?

[John Hemming]

I am sorry, but I will not take an intervention from the hon. Gentleman because it will knock somebody else out.

The Chair of the Work and Pensions Committee, the hon. Member for Aberdeen South (Dame Anne Begg), was quite right to say that welfare reform is a very complex area. However, there is no question about it: we have to make it so that people are better off in work than out of work. I was very pleased when I heard universal credit proposed, because I have supported its principle for a long time. I thought that it might be a bit too radical for the Government, but we are in fact managing to make progress down that route, even though there are difficulties in our way.

Things such as the welfare cap are right, because it sends this message: “You should be in work.” The local Labour party in my constituency of Birmingham, Yardley opposed all the Government’s welfare changes during the local elections, but it got 27%, while we got 46%. My local constituents in Birmingham, Yardley agree with the welfare cap. Many of them do not earn that much money, and they think the cap is reasonable.

We should concentrate money on low-paid workers. Universal credit, which will top up their pay, will be good. I want an increase in the minimum wage above what is proposed. I would go for a figure of about £7 an hour as a way of starting to make progress on that.

The welfare benefits system is a complex area. Now that we are one year out from a general election, I really think that the Labour party has a responsibility to put forward some alternatives. We have heard noises from Opposition Members complaining about the cost of housing benefit going up, but if we freeze housing benefit payments, the people who will suffer are those on low incomes, whether in work or out of work, who have difficulty paying their rent. There has been talk of the Labour party adopting the Institute for Public Policy Research’s proposal about the transfer or localisation of housing benefit, but that would cause great difficulties, and I do not think that local authorities want it. Less than a year from a general election, with the Government doing a good job in improving the employment situation—getting young people into work and making it worth while to work—the Opposition have got to offer an alternative.

--- Later in debate ---

[Steve Webb]

It is a good job I have the transcript of what the hon. Lady said, which was “when we write to the Department…we only ever get replies from the correspondence unit.” When the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Hemel Hempstead (Mike Penning), who has responsibility for disabled people, rose to intervene, she said “I will give way; I haven’t had any letters from this one either.” We waved a letter that she had received, so I hope she will withdraw that remark.

Moving on to the substance of reform, we talked about the record of the two Governments on reform. Let us take the case of child maintenance. I want to read out what was said about child maintenance reform by the National Audit Office, which was quoted by the hon. Member for Stretford and Urmston. It said:

“So far, the reforms had cost £539 million for a scheme that had performed no better than its predecessor”.

Unfortunately, that is not our reform; that is Labour’s reform in 2006. That is what happened when Labour reformed child maintenance. The NAO said the scheme was no better than the one that went before, despite costing half a billion pounds. That is why we have to replace it with a new scheme. The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) said that no doubt this one will go wrong. Actually, we have been running it quietly since 2012, phasing it in, learning the lessons from the other party and, as a result, the scheme is being highly effective. We already have record numbers of people being paid directly under the new scheme. Alongside major reform, we are getting more maintenance paid to more children than ever before. In other words, we are reforming, but not taking our eyes off the day job.

A number of Members mentioned the performance of Atos. As several of my hon. Friends pointed out, there is a bit of collective amnesia regarding who, in 2005, gave Atos a seven-year contract with a three-year option to renew. By last autumn, Labour was saying, “Let’s get rid of Atos; let’s sack it”, but that would have cost the taxpayer millions of pounds. Instead, we have terminated Atos’s contract in a managed way. My right hon. Friend the Minister with responsibility for disabled people has done that, as a result of which the taxpayer gets money and Atos begins to clear the backlog of the work that it has been doing.

As well as the changes that we are making to bring down the backlog on employment and support allowance—it has been said that it has come down significantly in the past couple of months—it is worth remembering that every one of the people in that backlog is getting benefit. It is sometimes made out that they are waiting for money, but they are currently receiving the assessment rate of ESA and incapacity benefit. Those figures relate to people who are getting benefit and are awaiting assessment.

Let me give the House some further examples of how we have been improving the service we deliver to the people who depend on our help. A year ago, the number of jobseeker’s allowance new claims dealt with in 10 days was 66%; now it is 90%. The number of ESA new claims dealt with in 10 days was 66%; now it is 80%. The number of appeals outstanding a year ago was 150,000; now it is 4,000. As my right hon. Friend the Secretary of State said, this is at a time when we are taking running costs out to make central Government more efficient.

A number of Members referred to the PIP. We are ensuring that the contractors, Atos and Capital, recruit more health care professionals to deal with the backlog. The number of appeals we are facing has fallen precipitously. It is an extraordinary fall in the number of people appealing against ESA decisions. Back in the first quarter of last year, we received 109,000 appeals against ESA decisions. In the first quarter of this year, it was 11,000. That is an 89% fall in the number of people claiming ESA who are appealing. The reason for that is that we, unlike Labour, are finding far more people eligible for benefit. Let me give the House the evidence for that claim. In late 2008, when Labour was undertaking work capability assessments, it was finding 64% of people fit for work. In the most recent quarter, we found not 64% but 27% fit for work. Far from it being this Government who are using the work capability assessment to throw sick people off benefit, it was the Labour party that used the WCA for that purpose.

During the debate, a number of Members said that we needed to make changes to the WCA, and that is what we have been doing as part of the Harrington review process. We have accepted about 50 recommendations. One reason why we are getting the number of people we are on to ESA and why we have a bigger proportion of people in the support group than ever before is that we have taken Labour’s failed WCA and reformed it to make it fairer. That is what a good Government does. We want to ensure that the right money goes to the right people.

[Ian Paisley]

Will the Minister take the opportunity tonight to make it abundantly clear from the Dispatch Box to all Members of this House that any concessions that the Government intend to make on welfare reform will be made as a result of arguments made in this place by Members who take their seats in this place, and that none will be made to a party that refuses to take its seats?