Personal Independence Payments

Jim Shannon Excerpts

Wednesday 21st January 2015 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I am grateful for the chance to speak today, Sir Roger. I was wondering whether this sitting of Westminster Hall constitutes a record, as we are on our fourth speaker before 10 o’clock. I will try to prolong matters a wee bit, if I may—I joke.

I congratulate the hon. Member for Erith and Thamesmead (Teresa Pearce) on bringing this matter forward for consideration. It is always good to speak on these issues as they are bread-and-butter concerns for people in my constituency and across the whole of the United Kingdom, as we move from the disability living allowance to personal independence payments throughout the United Kingdom. Since PIP is only in its early stages and has not yet taken over from DLA everywhere, the independent review comes at an ideal time, when improvements can still be made. That is vital.

In a debate on this issue in November, the Minister was able to state clearly with regard to Northern Ireland that welfare reform was not yet in place, but all parties in Northern Ireland have now agreed to bring in that reform, and measures on the reforms will come in during the next two weeks, as I understand from my hon. Friend the Member for East Londonderry (Mr Campbell). After that, PIP will be in place across the whole of the United Kingdom.

This debate is important. The background information that was prepared for it is very detailed. I congratulate those who put it together, as the amount of information has made it easier to assess and understand the issues—for me, at least. In Northern Ireland we have been looking at the two-year process and the delays; the delays are what I want to talk about, because it is important that we in Northern Ireland learn from what has happened in the rest of the United Kingdom and introduce the system in a much better form.

[Mr Gregory Campbell (East Londonderry) (DUP)]

On the issue of lessons that may be learned, does my hon. Friend agree that in Northern Ireland we are looking at this matter with some trepidation, given that we have significantly higher numbers of people on DLA per head of population? I hope that the Minister will be able to tell us that the information gleaned over the course of the past two years will be of some assistance in trying to minimise the problems and errors that the process has been fraught with.

[Jim Shannon]

My hon. Friend’s intervention clearly illustrates the issue for us in Northern Ireland. I have a member of staff in my constituency office who now does nothing else but deal with benefit issues and issues with the DLA; I spoke to her this morning to talk over some of the issues. We have a higher proportion of claimants in my constituency and a higher proportion of contact with them. The Government have offered Members’ staff the opportunity to have training on the new system, which my staff took up, and I hope that the information that they have gleaned from the training classes here in London will be sufficient to enable the change to be managed more easily in my constituency. That is one of the really good things that the Government have done.

PIP retains key features of DLA, which is important for a smooth transition. It is not means-tested and is non-taxable and non-contributory. It is intended to provide financial support for disabled people who face the greatest challenges in remaining independent—it is important to help those people hold on to some of their independence. It is payable to people both in and out of work and has two components—daily living and mobility—with different levels of award for each based on the assessed level of need.

The benefit has been changed and improved, however, in the sense that it encourages a move to a more transparent and objective assessment of need, with assessments by health professionals employed by contracted providers. I know that there is a lot to be learned from the past two years here on the mainland, but the PIP system itself is something that most of us can welcome, because on paper it has the potential to make lives better and be better at helping people. However, there have been recurring problems and I want to make some observations about what has happened.

The assessment places a stronger emphasis on the functional impact of claimants’ underlying disabling and medical conditions, not on the conditions themselves. That is vital, because people are affected by conditions in different ways. We see that in my office every week. What one person may need might not be needed by another person, so that is one element that I was happy to see changed; it is one of the new system’s pluses, at least on paper. A points-based system to assess eligibility for awards will also be included, with more regular reviews of eligibility for those receiving awards. Finally, there is greater focus on the needs of claimants with mental health conditions.

Over my last four and a half years as a Member of Parliament, I have become more aware of the needs of people with mental health issues. I do not know what it is about society, or whether it is a combination of things, but more people today have mental health conditions, and we need a system that understands the issue. In Northern Ireland, we had a conflict over 30 years, which may have contributed to mental health problems, and we have concerns about that.

[Mark Durkan (Foyle) (SDLP)]

The hon. Gentleman will probably recognise that those of us who have concerns about the implementation of welfare reform in Northern Ireland have raised the particular needs of victims of the troubles, and the issue was raised as part of the Stormont House agreement. They were given DLA awards—perhaps for life—because of their condition, and there was concern about the difficulties they would face in being subjected to reassessment and in perhaps having to retell their story, whether the trauma they carried was physical or mental. We have been assured that we can get extra consideration on that.

[Jim Shannon]

I thank the hon. Gentleman for that valuable intervention—he is right to raise the conflict over 30 years and its repercussions. Those who have lived with trauma have filled in the forms and been given a definite award, but they have then had to go through it all again. It is important that those points are addressed, and it seems, from the Stormont House agreement and the discussions with the Secretary of State and other Ministers, that they are.

As I mentioned in last November’s debate about PIP, the delays and backlogs are worrying. It is unsurprising, therefore, that the independent review expressed the same concerns. The hon. Members for Erith and Thamesmead, for Banff and Buchan (Dr Whiteford) and for South Shields (Mrs Lewell-Buck) have mentioned the delays, and it is important that they are addressed. As PIP is rolled out, serious delays have occurred, which means that some of the most vulnerable have been left without the help they need for too long. For example, of the 220,300 disabled people who applied for PIP from 8 April 2013 to 31 December 2013, only 34,200 received news of their claim by February 2014. That delay is absolutely unacceptable.

Obviously, that was not good enough, so the review suggested having better and more concise communication. The format of decision letters was claimed to be unclear, confusing and of variable quality. It has been suggested that the letters begin with a clear statement of the decision, followed by the award, payment details, a simpler explanation for the reasons and the next steps. I would definitely support that in my constituency, as we role out PIPs in the next month or so.

A large number of claimants have difficulty understanding reply letters. On more than one occasion, my office has had to relay to them what has been written to help them. It is good that my staff have the understanding to do that, but it would be better if the letters used words that people could understand.

I mentioned in our last debate—this has also been touched on today—my concern over the reliability criteria, which measure whether activities can be undertaken safely, to an acceptable standard and repeatedly. I was pleased that the review recognised that conditions and their impact can often fluctuate over time—people can have changing conditions. Although the review saw examples of good practice, respondents expressed concern over whether the criteria were being applied appropriately. There is an issue about how people are assessed and how measures are put in place.

In the same way that a condition affects different people in different ways, people’s ability to carry out particular activities can vary. It is therefore difficult to apply the reliability criteria over a set period. However, regular reviews might allow the same tests to be carried out each time, which would help to monitor whether someone had remained the same, deteriorated or, indeed, improved. That, in turn, would mean that fairer assessments and payments could be given than under the system. Provided that the right safeguards are in place, that could be a good idea; if it is done in the right way, it could bring benefits.

The review set out short-term, medium-term and long-term solutions to make PIPs work better. Those include short-term actions to address delays and backlogs before the start of managed reassessment; medium-term actions to improve both evaluation of the accuracy and consistency of award outcomes and the collection of further evidence; and longer-term actions to redesign the PIP delivery model in terms of claimant experience and business effectiveness. In his response, perhaps the Minister can tell us whether changes to make the system better can still be implemented even at this late stage.

Ultimately, I am pleased the review has concluded and can now address some of the main issues with the new PIP model. PIP has the potential to improve on DLA, but it needs to be fairer and more objective, and it must meet the needs of people more than has been the case. I welcome the findings of the review, which will mould a new system that can work better. I hope that its suggestions will be taken on board.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate my hon. Friend the Member for Erith and Thamesmead (Teresa Pearce) on securing the debate, which is certainly timely. Like other Members, I was impelled to come to the debate by the experience I have had in my constituency surgery, where I have seen case after case, week after week, of people suffering from delays in PIP assessments, with all the difficulties that arise from that.

In passing, I should say that I am surprised that there are no Members from the Government parties in the debate. I am not one of those MPs who jump to conclusions as to why Members are not present in debates, or who accuse them of base motives, but it is hard to believe that no constituencies represented by Conservatives or Liberal Democrats have similar problems. I will charitably assume that Government Members have raised these issues with Ministers—I am sure they have—and that they are too embarrassed to come along today because they know they cannot defend the delays and the chaos, and because they would have to mention the types of experience that we have had in our constituencies. People have certainly had a bad experience, and the Government need to address that much more directly and seriously.

[Jim Shannon]

Perhaps they are away campaigning.

[Mark Lazarowicz]

Perhaps they are. If they are, perhaps they will hear from people on the doorsteps about some of the problems the Government’s policies are causing.

Like all Members here today, I have a fat file of cases, and if I were to read out all of them I would take up all the time available to me. However, I want to highlight three cases that demonstrate some of the wider problems affecting the system. The first is that of a constituent who wrote to me just before Christmas, saying:

“I am currently a student nurse who works part time as a chef. As a result of my PIP assessment waiting time I have been forced to sell my house and am unable to claim housing benefits to help towards my rent.

I am epileptic and am unable to work more hours to make ends meet. I am already far into my overdraft and I have been told I have to wait around 26 weeks for my assessment.”

Obviously, I took up that case, and things were moved forward a little. However, that is an example of how people’s lives are being turned upside down by the delays all of us experience in the system up and down the country.

Another case, which is quite interesting for a reason that will become apparent, involves a constituent who told me that he had made a claim for PIP in February 2014, following a heart attack in November 2013. In January this year, he told me that a decision had still not been made on his application. He is on a heart transplant list. In the meantime, he has a pacemaker, which is due to be replaced in Glasgow, but he is worried that he will not be able to meet the travel costs for hospital appointments. Again, that is an indication that financial costs and difficulties lead to other stresses and difficulties for those who suffer under this process.

I refer to that case because it illustrates the delays that affect so many people. The response I received from the DWP when I took up the case with the complaints resolution service was interesting. I have to say that DWP staff are normally very helpful when I get in touch with them, and they try to move cases forward, and the same is true of the Minister and his office. However, the reply I got from DWP staff said there had been some issues at the beginning of the case because there were not always up-to-date address details for the constituent—I do not have enough details to know whether the delay could be ascribed to the DWP, my constituent or Atos. In any event, I was told that the uncertainty

“resulted in the request for an assessment”—

presumably by the DWP—

“only being made on 3 October 2014. Although it was a little early for us to try and push for an appointment I got in touch with Atos”.

I was then told that a home consultation had been booked for 4 February.

As to the comment that

“it was a little early for us to try and push”

for an assessment, here was a case where somebody applied in February and, for whatever reasons, there was some delay in the process; but someone in the DWP felt that they had to allow it to go on a bit longer, no doubt because they knew that there were so many cases that they could not just press for an assessment. When an assessment was finally allocated, it was only at the end of a 16-week period, which as we know is the Government target.

The third case that I want to refer to highlights the difficulties of a constituent who was previously on the higher rate of the care component of DLA, but did not have the mobility component. He applied for PIP on 14 March 2013, and he was finally awarded it on 25 September 2014, about 18 months later. He was awarded the higher rate of both components of PIP, including the mobility component, but of course the higher rate could not be backdated by more than 28 days. We see such situations time and again, of course, and that shows the problems with the system. The idea that if someone gets the higher rate it is not backdated, but if they get the lower one they do not get money taken off them, sounds fair—at least, it sounds a simple approach to delays. However, surely no one can think it acceptable when people experience delays of not just 16 weeks but six months or a year.

The situation might not be particularly unfair if those assessed at the higher rate had it backdated but those assessed at the lower rate did not have their previous higher-rate payments taken away from them. We are not talking about large sums of money—well, we are talking about large sums of money, but not for the people receiving the benefits. That should be an incentive to the Government to get their act together and ensure that cases are dealt with more quickly, to prevent a situation in which someone assessed at a higher rate—in my example, for 18 months of the mobility component—is deprived of what they should have had over the relevant period because of delays that are no fault of theirs.

In that context, Paul Gray’s review is welcome. I think the limited scope of the recommendations disappointed many people, but that is not Mr Gray’s fault. It is the fault of his remit and the way he felt obliged to address the issue, given the time scale he was given and other factors such as the timing of the election. However, the fact that people are disappointed means that there is a need for a much more direct Government drive to deal, above all, with delays and associated problems. Let us not forget that the Government must take the blame for delays and failures.

Hon. Members will be aware of the damning report of the Public Accounts Committee. Its Chair said:

“The implementation of Personal Independence Payment has been nothing short of a fiasco. The Department of Work and Pensions has let down some of the most vulnerable people in our society, many of whom have had to wait more than 6 months for their claims to be decided.”

That is true. The Committee’s report said:

“Critical assumptions about the process were not fully tested and proved to be incorrect, resulting in significant delays to benefit decisions and a backlog of claims.”

That is a failure. It is a failure of Government, and the Government need to accept that responsibility.

We want, however, to deal with the problems. I am sure that we all want much more comprehensive action to deal with the delays that affect so many people. The present arrangement, whereby higher awards are not backdated beyond 28 days, needs to be replaced with backdating to the time when the application was submitted. I am sure that other hon. Members have received a briefing from Leonard Cheshire Disability, as I have, urging the Government to consider providing financial help to those who are in difficulties precisely because of delays in dealing with their applications.

Many hon. Members will be aware of a current and well-known campaign in Scotland led by Gordon Aikman—I am sure that the hon. Member for Banff and Buchan (Dr Whiteford) is aware of it. Gordon Aikman is suffering from motor neurone disease and is using the last few months of his life to campaign for better treatment for sufferers in many areas. One of the issues that he has raised is the fact that delay in assessment has a particularly serious effect on those whose condition is terminal, but whose prognosis is not that they will die within six months. Someone whose life expectancy is six months or less will be given an accelerated assessment, but I understand that the average prognosis for people with MND is 14 months, and those people are not given an accelerated assessment. However, it is clearly unacceptable that they should wait a year or so. The Minister should look at providing an accelerated assessment process for people whose prognosis includes limited life expectancy.

Leonard Cheshire Disability also proposes a general halt to further plans to extend benefits to more people until the assessment system is fit for purpose. That seems sensible to me, and it brings me to my final point, which is about the implications of recommendations to devolve PIP to the Scottish Government and Parliament. As the hon. Member for Banff and Buchan pointed out, the Smith commission’s report included those recommendations, and it is widely known that the Government will put forward details of the next stage in that process on Thursday. I accept that the Minister may not be able to respond today with reference to an announcement due on Thursday, but I hope that he will recognise that it would be crazy to continue to roll out PIP in Scotland under the present arrangements, with all their difficulties, just when we are about to provide for full devolution of PIP to Scotland with the agreement of all the parties.

[Jim Shannon]

In the context of the devolution of welfare reform, it is important to look at other parts of the United Kingdom, such as Northern Ireland. Sometimes we should be careful what we wish for.

[Mark Lazarowicz]

That is an interesting point, but all the parties want devolution, and we will have to live with the consequences. I welcome the devolution of large elements of the welfare system to Scotland. I think it will be better for Scotland, for those on benefits there, and for the UK, but I hear what the hon. Gentleman says.

My final point is that, as has been pointed out, one difficulty in making a judgment about the failures of the PIP system is the lack of data about the extent of the problems and the length of time people must wait for assessments. As the hon. Member for Banff and Buchan pointed out, we get the tip of the iceberg in our constituency offices. We take up cases and hopefully get them moved forward, but of course people tend to come to us only when they have gone through every other avenue and have not been able to resolve their problems. I suspect that there are still people who are not even coming to MPs or to benefit advice centres, and they are probably suffering worse than those who come to us, whose problems we can at least try to resolve.

We need action from the Government, and answers. I would like a commitment from the Minister on the situation in Scotland. I hope that the Department will give a statement quickly after Thursday’s expected announcement, explaining how PIP roll-out will be carried out in Scotland as the Smith commission proposals go into their next stage of delivery, which we know all the parties want.

--- Later in debate ---

[Mr Harper]

The hon. Gentleman makes a perfectly sensible point. The solution is to fix things so that people are not having to wait so long. Clearly, we have to state a time. People have various health conditions and disabilities, and we have to draw a line somewhere, but the real solution for the cases that the hon. Gentleman mentions is to do what we are doing, which is to ensure that people going through the process have an assessment within a sensible time. Then the issue that he set out simply does not arise, because they are getting an assessment, a relatively speedy decision and the support that they need. That is the solution for those with a progressive condition, with a longer prognosis, but obviously for those with a terminal illness who have a very short time to live, we have put in place a much faster process, which is working well.

The hon. Member for Erith and Thamesmead mentioned interventions. The point of them is to ensure that the amount of PIP paid is correct, so that awards can be adjusted upwards if someone’s needs have increased or downwards if they have decreased. That has happened in a very small volume of cases to date. The hon. Lady gave a specific example of one of her constituents. Interventions are set on the basis of when needs change and when awards are made. Given that interventions can go in both directions, it is certainly not in the interests of the Department to review awards more frequently than is necessary, because to do so creates unnecessary work.

The hon. Lady mentioned reassessment. There are two kinds of reassessment going on. For those who have time-limited awards, there is a process called natural reassessment—the names are not brilliantly informative—which is being switched on only in areas where we know that we have the capacity to carry it out. One of the things that I do before I take those decisions is to ensure that our assessment providers have the necessary capacity, and I have been switching the process on only when where there is that capacity.

The hon. Lady mentioned managed reassessment, which has previously been announced as starting in October, under which those with an indefinite DLA claim will be reassessed. We have made it clear that we will roll that out only where and when we have the capacity to do so. It is clearly not in our interest to start reassessing people if the system does not have the capacity to do so. By the way, I thank the hon. Member for Edinburgh North and Leith for his positive comments about DWP staff and staff in my private office, where he has had to raise issues. People do not often say nice things, so I acknowledge his comments on behalf of the Department.

Colleagues from Northern Ireland raised a number of matters. The hon. Members for Strangford (Jim Shannon), for East Londonderry (Mr Campbell) and for Foyle (Mark Durkan) talked about the Stormont House agreement. I have been in correspondence with Mervyn Storey, the Minister with responsibility for welfare in Northern Ireland, and he and I are trying to get a date in the diary to meet. One thing that we will talk about is the progress that has been made on the Stormont House agreement and welfare reform. I am sure that we will both want to talk about the lessons learned from rolling out PIP in Great Britain, which may apply to the roll-out in Northern Ireland.

[Jim Shannon]

I understand that relevant measures will be going through the Northern Ireland Assembly during the next fortnight, so the implementation in Northern Ireland will be in place in time for the Minister’s meeting with Mervyn Storey.

[Mr Harper]

The hon. Gentleman makes a good point. There are two issues: the legislative process—I take his word about the timetable for that—and the implementation and operational matters. The Department and I will provide every assistance to the Northern Ireland Executive to make sure that that goes smoothly. It is worth putting on record—