Personal Independence Payments

Debate between Jim Cunningham and Tom Clarke

Tuesday 28th October 2014 Westminster Hall

[Mr Clarke]

I know why my hon. Friend feels so passionate, and the experience that he has shared with us is reflected in the views expressed in the report that I am asking the House to consider.

Another example I can give is of an individual who has serious health issues and who last year was diagnosed with throat cancer. He has been waiting for an appointment with Atos to be assessed for PIP. Due to the length of time that his processing is taking, he is now in a great deal of financial difficulty, with rent and council tax arrears of almost £2,600, despite his wife working full-time.

As we all know, PIP is an important passport to many other benefits, such as carer’s allowance, disability premiums, the mobility scheme, concessionary travel schemes, etc. It is indeed a lifeline for people who could not afford to leave the house otherwise and it is a vital part of their personal finances. It cannot be right that many of them face ruin and destitution while they are waiting for their claim to be processed.

This extreme financial hardship has caused a number of individuals to rely on handouts from friends and food banks, and on the accumulation of debt to an unsustainable degree. I know of an individual who has been waiting for an assessment since November 2013, but now his income has been so reduced that he cannot travel to appointments; if he pays for transport, he cannot top up his electricity meter. He has post-traumatic stress disorder and his current situation is resulting in his becoming more withdrawn and reluctant to request help. His mental health is deteriorating as a result. He has worked his entire life and in his 50s is a first-time claimant.

In Coatbridge, which is in my constituency, on 1 April there were 82 PIP applications for daily living claims and 160 mobility claims. I checked with Coatbridge CAB this morning and discovered that all these claims are lying in the in-tray of Atos or DWP and not being brought to a conclusion. I also clarified the position of the CAB in Bellshill, which is also in my constituency. It is handling a PIP claim that has been pending for 10 months.

My hon. Friend the Member for Coventry South (Mr Cunningham) tells me that there are similar problems in his city, and on that point I will give way.

[Mr Jim Cunningham (Coventry South) (Lab)]

I thank my right hon. Friend for giving way and I congratulate him on securing a welcome and—in many ways—a well-timed debate. He has just described what we are experiencing in Coventry, including sloppy paperwork and long delays in receiving benefits, especially the earnings supplement, which is claimed by 25% of the claimants in Coventry. CAB time is taken up with that.

We see the same if we look at matters nationally. About 75,000 people are affected nationally, so what is happening in Scotland is also happening in Coventry and the rest of England. I do not want to repeat what my hon. Friend has said. Despite that, we should congratulate the city of Coventry, because it is trying to get on top of what is, quite frankly, an overwhelming problem. This whole facility—the entire benefits system—must be looked at now, because it seems to be a shambles.

[Mr Clarke]

I am glad that my hon. Friend intervened to underline my assertion that problems exist throughout the whole United Kingdom.

The truth is that the picture is depressing, and it is not as if the Department for Work and Pensions has not been warned. The National Audit Office, which published a report in February 2014 entitled “Personal Independence Payment: early progress”, investigated the performance of the DWP as it introduced PIP. It found that

“the Department did not allow enough time to test whether the assessment process could handle large numbers of claims. As a result of this poor early operational performance, claimants face long and uncertain delays and the Department has had to delay the wider roll-out of the programme.”

The Department anticipated that it would take 74 days to decide on a claim, but the actual average wait is 107 days. For terminally ill claimants—I underline “terminally ill”—the process was taking 28 days on average against a departmental assumption of 10 days. That represents a wholly unrealistic assumption of the capacities of both the Department for Work and Pensions and Atos in Scotland. The end result is a system that would not work on paper, clearly does not work in practice and is further straining claimants’ finances and health.

My right hon. Friend the Member for Barking (Margaret Hodge), the Chair of the Public Accounts Committee, said in response to the NAO report:

“The Department need to understand the causes of this backlog to develop a clear plan on how they are going to work with contractors to clear it, and ensure there are suitable processes in place to make sure this does not happen again.”

Energy Price Freeze

Debate between Jim Cunningham and Tom Clarke

Wednesday 6th November 2013 Commons Chamber

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

This is the first time I have had the privilege of speaking under your chairmanship, Madam Deputy Speaker, and I am delighted that you are a Deputy Speaker.

We have had an interesting debate. I am sorry that the Secretary of State has left the Chamber, but I note that he apologised for doing so. I found it astonishing, however, that he asked for consensus, but went on to make one of the most provocative speeches that I have ever heard in the House, particularly on a subject where he is on a weak wicket. I can imagine going round my constituency speaking to elderly folks and people with disabilities, and people—far too many—suffering from fuel poverty and saying, “Well, we’re not doing anything about the cost of energy, but we’ve reached consensus.” I do not believe that consensus can be reached because, like many of my hon. Friends, I have been involved in these issues for more than 10 years. If right hon. and hon. Members have a minute or two, they might want to study the debate that I secured in Westminster Hall on this subject on 23 January 2007, in which the hon. Member for Wealden (Charles Hendry) made a good speech. I have to say, with respect, that I do not recall quite the emphasis on investment that we heard today; nevertheless, I cannot take away from him the points that he made on that occasion.

A few weeks later I put a question to our own Prime Minister, Tony Blair, on 7 February 2007, and by a remarkable coincidence prices fell the next day. I am not sure that this speech will have the same effect, but I will make the points that I want to make and that, I am sorry to say, are not new because I and others have made them so often. That is why I do not believe that consensus is possible.

I support the motion before the House and the proposition from my right hon. Friend the Leader of the Opposition and colleagues on the Front Bench. It resonates with long-suffering consumers. The commitment to a price freeze is absolutely right, and the fact that it is new, even from those on my own Front Bench, whether in government or in opposition, does not take away from its validity.

[Mr Jim Cunningham]

Does my right hon. Friend recall that under the previous Conservative Government a big battle went on in the House one Friday morning, especially among Members of the governing party, in relation to an increase in cold weather payments that the then Government would not concede? Does my right hon. Friend recall that it was a Labour Government who created the Department of Energy and Climate Change, which the Minister represents? The Government say that the Labour Government did not take these matters seriously. We did, and we introduced housing insulation for the less well-off.

[Mr Clarke]

As always, my hon. Friend makes a valid point. I know that he represents Coventry South, but as he comes from Coatbridge, I am not surprised at the logic that he introduces to the debate.

I support the motion before the House. I do not believe that some of the ideas that we have heard from Government Members, including from the Secretary of State, about tinkering around the edges, transferring green taxes to general taxation and other measures that have been mentioned for over a decade would necessarily work. We heard yet again about switching. Well, I hope it works this time. On previous occasions the experience of my constituents has been that no sooner did they switch to one company than that company put up its prices. There was therefore very little point in them taking that advice. I question whether switching will work now.

Given the seriousness of the problems, there is a call for transparency. The veil of secrecy that exists in the energy industries is wholly unacceptable in the modern world, with the massive profits of energy companies and increasing fuel poverty. The energy markets are utterly broken. Surely we as a Parliament are not prepared to accept that without protest, and why should our constituents do so?

In the Government’s response to today’s debate a great deal of faith was placed in the regulators, but I do not share it—not for one second. In the debate that I mentioned at the start of my speech I had quite a lot to say about the regulators.

Economic Growth

Debate between Jim Cunningham and Tom Clarke

Wednesday 15th May 2013 Commons Chamber

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

As always, I listened carefully to the Queen’s Speech with the intention of examining how the new measures would affect my constituents. I was also looking for measures that would ease the strain on the families in my constituency who are worried about unemployment and the rising cost of living. I was sadly and expectedly disappointed.

Before listing my concerns, I will place on the record a couple of observations on how we got into the deep economic difficulty that is causing desperate hardship for many families in my constituency. The fundamental error of this stagnant coalition Government was to assume that they could clear the deficit in four years. Their plan was to use the final year in office to hand out sweeteners to the electorate, who would be so overwhelmingly grateful that they would elect a Conservative majority.

Dealing with the deficit is the defining issue facing this country. However, that should never have been conditional on or linked to the outcome of the next election. That was a political fix that was destined to fail. Everybody could see that it was politically too far-fetched, except for the opportunistic Liberal Democrats who disregarded their electoral mandate and traded their principles for government office.

The UK economy is 9% smaller today than was expected when this stagnant Government took over. In 2009-10, the deficit was £159 billion. It is now forecast to be down to £121 billion. However, the public debt overall is rising from £795.5 billion to a predicted £1.1 trillion.

On any reasonable analysis of our economic situation, two significant themes scream out loud and clear. The first is the continual anaemic economic performance and the second is our ability to pay off the debt, which is becoming increasingly strained as a consequence of the first point. While those two heads travel in opposite directions, our economy will never recover. The policies simply have to change. It is time that this stagnant Government chose to put the national interest first and their party political interests second.

Ordinary hard-working people and their families are struggling. Rents and mortgages have to be paid, as do ever-increasing energy and water bills. Families who spent £600 a month to cover those costs in 2005 now spend more than £800 a month. We have record fuel prices and record amounts of people in fuel poverty. We have 1 million young people out of work and left behind. Lending to businesses is continuing to fall. We have soaring unemployment. We have a Chancellor who has to borrow £245 billion more than he planned, who has failed his own economic test of retaining our triple A credit rating and who, over the course of this Parliament, will have delivered growth of a mere 1.7%. Ordinary working people are paying the price of this out-of-touch Government’s economic stagnation.

[Mr Jim Cunningham]

Does my right hon. Friend agree that one of the methods that the Government are using to make ordinary people pay for their incompetence is the bedroom tax?

[Mr Clarke]

My hon. Friend raises a very important point. While we witness the introduction of the second home subsidy, the effects of the bedroom tax are being seen in my constituency, where an estimated 2,128 individuals will be affected, two-thirds of whom are believed to have disabilities. Citizens Advice Scotland has revealed that nearly 800 victims of the welfare axe are desperately seeking its support. Welfare recipients are an easy target, but we should not point the finger too quickly because no job is safe in this economy.

To get our economy moving again, we need investment—investment for jobs, investment for the future and investment in the ordinary hard-working people of our country. We have been treated to a more-of-the-same economic plan, with no change on anything of importance. The Government are cutting taxes for millionaires while cutting support for our economy. Led by the Prime Minister and the Chancellor, this stagnant Cabinet of out-of-touch, upper-class millionaires has run out of ideas and run out of steam, while our country is running out of time. What a way to run Britain.

Fuel Poverty and Energy Efficiency

Debate between Jim Cunningham and Tom Clarke

Wednesday 16th January 2013 Commons Chamber

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

This is one of the very few issues that can unite households across the United Kingdom. Labour Members have demonstrated that our party believes it is important to speak up for consumers, who are at the sharp end of ever-rising energy costs. Families and households are struggling to pay their bills. Let there be no doubt about the hardship that is being caused to millions of families and people, old and young, working and non-working.

Set against that background, it is important to understand that consumers have no appetite for rhetoric. They want Government intervention. They are demanding a fair price for the necessities of gas and electricity. We parliamentarians should be on the side of the consumers and be demanding transparency from the energy suppliers.

[Mr Jim Cunningham]

The energy companies have paid out £7 billion in dividends. Does my right hon. Friend agree that some of that money could have been used to lower energy costs for the needy in this country?

[Mr Clarke]

My hon. Friend has made an excellent point.

Just before our Christmas recess, I raised this issue with the Prime Minister when I said:

“let us be transparent…as one body has advised, approaching 9 million households suffer from fuel poverty, which is the highest since records began? Will he explain to the House and our constituents, as we approach Christmas, what the Government are prepared to do about the horrible scandal of fuel poverty?”

To be fair, the Prime Minister agreed with me in his reply, saying that I was

“entirely right that fuel poverty is a scandal and that it needs to be dealt with”.—[Official Report, 19 December 2012; Vol. 555, c. 851-52.]

However, he challenged my figures. Today, in common with my right hon. Friend the Member for Don Valley (Caroline Flint), I put on the record the fact that they came from the Government’s own advisers. The Energy Secretary must know that that is the case. If we are going to set the record straight, as I believe I have just done, we may learn what plans the Government have to help to reduce the horrendous levels of fuel poverty, which are clearly identified in the report I referred to and clearly understood by hon. Members on both sides of the House.

No fuel poverty figures are available on a Scottish constituency basis. Lanarkshire has two councils, and at this point I wish to thank my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) for the excellent point he made about councils getting together—mainly Labour councils—to protect their constituents against the excesses of the prices being imposed on them. North Lanarkshire council has 37,000 households in fuel poverty, which represents 26% of the housing stock. The adjacent South Lanarkshire council has 45,000 households in fuel poverty, which represents 32% of the housing stock. Given those shocking levels of fuel poverty, my Lanarkshire MP colleagues are supporting an initiative that has resulted in my hon. Friend the Member for Rutherglen and Hamilton West (Tom Greatrex) and I meeting the leadership of the North Lanarkshire and South Lanarkshire councils—again, that took place just before Christmas. I do not want to overstate the position, but the response from the Lanarkshire council leaders and the situation we have reached are deeply encouraging. Although it is important to hold the Government to account for their policies, it is now incumbent on Opposition Members to be more thoughtful and innovative. That is what my right hon. Friend the Member for Don Valley and my hon. Friend the Member for Denton and Reddish are aiming to do. Our duty is to offer alternative solutions, as we are doing.

On 23 January 2007, I said:

“It is my intention to explore every avenue with all relevant bodies. I have written to Ofgem—the Office of Gas and Electricity Markets—which has a duty to consumers, and to the Office of Fair Trading, which has a duty to ensure that, frankly, a cartel is not operating against the public interest.”—[Official Report, 23 January 2007; Vol. 455, c. 381WH.]

I am more convinced today than I was then about the probability of a cartel of energy companies being in operation. For example, I tabled three very simple parliamentary questions asking for facts that consumers are entitled to know, but not one was the subject of a reply. If we are talking about transparency, right hon. and hon. Members of this House are entitled to replies to the questions they put. If we are to hear from the Prime Minister information that is clearly wrong and if his Ministers give us the impression that they are living in another world, we are entitled to ask what the facts are. We are entitled to build on those facts, which we know because of our own experience in our constituencies. On the evidence so far, what is happening on fuel poverty suggests that it is time that this House asserted itself and said enough is enough.