Personal Independence Payments

Jim Shannon Excerpts

Tuesday 25th November 2014 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I appreciate the opportunity to say a few words. I congratulate the hon. Member for Bolton South East (Yasmin Qureshi) on securing the debate for us all to participate in. I am pleased to follow the hon. Member for Plymouth, Moor View (Alison Seabeck), who delivered her speech eloquently despite her current impediment, and we thank her for that.

Personal independence payments are of great importance to me and my office. One member of my staff now deals with nothing else besides benefit claims, which includes claims for disability living allowance, employment and support allowance, income support and the whole raft of benefit claims. I suspect that that situation is replicated in hon. Members’ offices across the United Kingdom. Many of us have a staff member who is tasked with dealing with such matters every day, because of all those difficulties. In the few minutes that I have, I hope to illustrate the situation through the experience of my office.

We understand the reasons for the changes, and the Government have set out their stall when it comes to reducing benefits through universal payments to ensure that changes will be made. We are aware of cases of people receiving payments when it is questionable whether they qualify for them, and we understand that that issue must be tackled. However, the people whom I will speak about today are those who clearly should have the payment and are feeling the difficulties of the new system.

In the same way as DLA did, PIP helps towards some of the extra costs that arise from long-term ill-health conditions or disability, and it is based on how a person’s condition affects them rather on the condition that they have. Every time someone comes to me about the benefit, I always say that it is about the help that they need, not entirely about their illness. It is about the help that they need in the house, how the illness affects them and whether they need people to come in and help them. When they get their head around that, they understand the importance of explaining their condition and highlighting the symptoms or problems associated with it. Every person is different, and they are affected in different ways. The previous system fell down many times, and the new PIP system unfortunately has the potential to do likewise.

The individual assessment for PIP is much stricter than the assessment for DLA, but the aims are the same: to ensure that people with health needs or disabilities can lead an independent life, while getting some extra help along the way. The stricter measures are intended to ensure that the system cannot be abused, in view of the budget constraints we all face across the United Kingdom. The changes from DLA to PIP will involve a face-to-face consultation with an independent health professional as well as regular reviews to ensure that an individual gets the right support. I welcome the face-to-face consultation, because I hope that it will better enable assessors to determine an individual’s circumstances. I often wonder, “Have they ever met these people? Do they understand their circumstances? Do they know what it is like to be unable to move about in your own home, to have restricted movement or to be dependent on someone else to help you?” The face-to-face consultations have the potential to lead to improvement.

To receive PIP, an individual will be assessed against reliability criteria to test whether they can carry out certain activities safely, to an acceptable standard, repeatedly and in a reasonable period. I can relate so well to the words of the hon. Member for Plymouth, Moor View. Someone may be able to walk 60 yards, but they will be in pain. Most of the people who come to me about DLA are in pain with their first step, but they endure the first 20 or 30 yards and then they have to stop. We need to have a system that adequately takes that into account. I hope that under the new system of PIP, it will be easier to ascertain and understand the problems that people are experiencing and resolve them urgently. We are having this debate because, quite honestly, the issues are not being resolved urgently; indeed, the opposite is true.

As PIP is being rolled out, some strange delays are occurring and some of the most vulnerable are not receiving any help. I want to highlight some of the delays that are affecting my constituents. First, they are anxious about their health. They become anxious about their PIP, and then they become anxious about all the other benefits that swing off that. Perhaps the Minister could give me some indication of how we can hurry or quicken the system. As a result of all the anxiety and concern that they experience, people’s health often deteriorates. They sit in an in-between world between today and tomorrow, almost hanging in space, hoping for their claims to be processed. All the time, it affects them greatly.

In February this year, only one in six people who had made a claim for PIP had received a decision. As the hon. Member for Bolton South East mentioned, the National Audit Office stated that poor early operational performance had led to long delays and uncertainty for PIP claimants. The right hon. Member for Barking (Margaret Hodge), the Chair of the Public Accounts Committee, said that the implementation of PIP had been

“nothing short of a fiasco”.

That reflects the opinion of many of us.

We are not here to give the Minister a hard time, but we are here to highlight the shortcomings in the process. Many of us feel that the process is not built in such a way as to take on board the difficulties that we see our constituents facing. I am here to express those, as other hon. Members have done and others will do. Out of the 220,300 disabled people who applied for PIP during the period from 8 April 2013 to 31 December 2013, only 34,200 have received news of their claim. That is totally unacceptable, and it must be addressed.

One of the statistics associated with first-time PIP claims—those who are moving from DLA to PIP—is truly worrying. For those people, there is around an 85% chance that a final decision has not yet been made, so they are sitting in limbo waiting for everything to be sorted out. Because PIP is not counted as income, those who are eligible for PIP may also find that they are eligible for ESA, income support, jobseeker’s allowance, pension credit or housing benefit. There is a real challenge there, because housing benefit and tax credits are great benefits when they go right, but when they go wrong, they are a nightmare. Delays in PIP may mean that because someone’s income changes—they have to notify Her Majesty’s Revenue and Customs of that—their housing benefit and rent payments are put on hold and their tax credits go up the creek, and they find themselves becoming increasingly anxious and concerned.

[Alison Seabeck]

As usual, the hon. Gentleman is giving a thoughtful speech on a serious subject. Are his constituents, like mine, having to find their way to food banks simply to feed their families in an attempt to fill those gaps?

[Jim Shannon]

In Newtownards, where my main constituency office is based, the food bank would say that the greatest number of referrals are of people who are on benefits, and delays in benefits compound that problem. We are all genuinely grateful to have food banks, and they have become a way of life. I have it on good authority that most of the referrals in my constituency are through my office, and I see lots of people coming into my office who are referred to food banks. We thank the Lord for the food banks and for the good work that they do, but the hon. Lady is absolutely right that food bank use is one consequence of the problems with PIP.

It was estimated that changes to mobility benefits could eventually lead to as many as 428,000 claimants losing their entitlements. Those changes have included the reduction of the requirement for claimants to be able to walk 50 metres right down to 20 metres, as the hon. Member for Plymouth, Moor View has mentioned. Unlike DLA, PIP will not have a lifetime award option. I am aware that under DLA there was the right to review a lifetime decision and that sometimes happened, but many people on lifetime awards were not reviewed, and it is a very random check to do at other times. I am concerned that there will no longer be the option to make a lifetime award. Let us be honest; if somebody has muscular dystrophy, unfortunately, they are not getting better. They are going to get worse. If somebody has severe chronic joint pain, they will not get any better. Their prognosis is for the worse. The prognosis for many such people is restricted mobility for the rest of their lives. That is not what they want, but it is what they are stuck with. Will the Minister, in his response, give us some indication of what he thinks about that?

I want to ask the Minister about a further issue on which I am keen to get some feedback. How many terminally ill people apply for the award—I do not have the figures, but I am asking this question to put it on the record—and how long does it take for their claims to be processed? I am aware of only two people over the years—this was under the DLA system, not PIP—whose applications were not processed quickly enough, so they passed on from this world. I am keen to hear what the Minister has to say about that.

Waiting times are not reserved for England alone—Capita Business Services Ltd is responsible for Northern Ireland, central England and Wales. Charities in Northern Ireland, such as Disability Action, have complained about the longer waiting times for assessment. Charities and my constituents are telling me that there are problems, so clearly we have to address them.

The move to PIP seems to be logical. Physically meeting a person along with a health professional is a great idea, but it is time-consuming and the waiting times make the process long and complicated. All new schemes must be put into action and tweaked to ensure they run efficiently and properly. That must happen with PIP to guarantee a smooth transition from DLA. All of us speaking today think that the delays are unacceptable and that changes must be made to the system. I hope that today’s debate will give us the opportunity to hear a positive statement from the Minister. The Government must ensure that the system is tweaked as soon as possible to bring assessment waiting times down.

I understand the reasons for the move to PIP, but I can also see the problems for the people waiting to be assessed. Elements of the system clearly need to be fixed, such as waiting times and the appeals process, which at the moment is overwhelming. I have constituents who have waited for 10 or 11 months for an appeal. That is unacceptable—it is almost a year between the start and the end of the process—but I am sure that other hon. Members have constituents who have waited longer. To say that problems are inevitable because the system is new only explains some of the issues, and it is no consolation to those who lose out. The Government must address these issues urgently. The waiting times are not fair, and improvements must be made now.

--- Later in debate ---

[Sheila Gilmore]

People in that situation find it very hard to deal with that problem.

[Jim Shannon]

That is a very interesting point. Under the old DLA system, going back two or three years, there was an enablement provision. If a person’s condition got worse, that could be taken into consideration in their application and the appeal process, but now it cannot. Does the hon. Lady feel that the Minister should respond to that point?

[Sheila Gilmore]

That is a very interesting point, and I hope the Minister will give us some details on it.

The other group who seem to suffer less from long delays are those who are undergoing reassessment. If a person asks for a reassessment because their circumstances have deteriorated, previously they would have reported that change to receive DLA, but now they must make an application for personal independence payment. They will receive DLA even if there is a long delay, but if they are entitled to a higher rate of DLA, it will not be backdated under the new system. They do not have no money during that period to help them with the needs that their disability or illness brings, but they do not benefit from the increase. If it takes six, seven or eight months for their DLA reassessment to become PIP and they are eligible for a higher reward, it will not be backdated, even if their condition has clearly deteriorated —and they would not have made the application if it had not.

If the process were working smoothly and quickly, that might not matter. Perhaps at the outset it was thought that there would be no need for backdating because the process would be quick. People would be reassessed and would get the new benefit or not, but at least they would not be waiting for months with a much worse condition. If the claiming process is to be this long permanently—I certainly hope not; the Minister can tell us if it is—perhaps he should look again at that.

I am concerned about another aspect of the way that PIP is processed: there seems to be a substantial variation across regions. I hope that the Minister is at least looking at that issue and monitoring it. I find it hard to understand why, among new claims—but not those relating to special circumstances, i.e. terminal cases—the award rate varies so much; it is as low as 25% in Ealing Southall, but it is 63% in Kilmarnock and Loudon. Perhaps Kilmarnock and Loudon residents are substantially less well, and more disabled, than those of Ealing Southall, but the disparity seems substantial.

The published statistics, the most recent of which bring us to, I think, September, show quite wide variation both in the number and proportion of cases that have reached clearance—meaning a decision, whether positive or adverse, for the claimant—and in award rates. That variation may be explicable, and not a matter for concern, but it would be helpful to know that the Department is monitoring those things and will report on them in due course. The rates will never be identical; areas differ, and there are some where endemic ill health has been a serious problem. That is why the number of people in receipt of employment and support allowance and DLA has been higher in some areas than others; I do not have a particular problem with that.

The question is why an award rate should vary so much and be so low in some places. Presumably people apply only if they have an illness or condition. They will read the forms. Unless it is suggested that in some areas an awful lot of people with no real prospect of success apply, and that that explains the low award rate, the variation seems somewhat baffling. The number of applications varies considerably, as one would expect. One of the examples I gave was Ealing Southall, where the award rate is 25%. There were 660 normal registrations there, not made under special rules. In Kilmarnock and Loudon there were 980 registrations, and in Knowsley there were 1,780 registrations, with a 52% award rate.

Our questions are not only about the length of time being taken, although that is the major issue that most of us have had to deal with. They are also about other aspects of the way the new benefit works: how it compares with the previous situation, which people perhaps do not receive an award, and what the circumstances are. Owing to the length of time being taken, it is still quite early to know how many people are successful on appeal, and to judge the efficacy of the assessment process. From my experience with constituents, it appears that the assessment process, when they get to it, evokes fewer complaints than before, although someone recently came to tell me that their assessment took only 20 minutes, after which they received an adverse decision. That person had been profoundly deaf for some considerable time, so I was slightly baffled.

I hope that in the rush to solve the problem of longer assessment periods and to speed the process up we shall not lose some of the possible advantages of the new system—a more thorough assessment process that would obviously be better for people in the longer term.

--- Later in debate ---

[Mr Harper]

I will come to that in a minute, because I will discuss the point made by the hon. Member for Edinburgh East (Sheila Gilmore) about paper-based reviews, meaning assessments made based on the paperwork without having to call someone in.

The general point arising out of the specific cases raised by the hon. Member for Bolton South East and other Members is on delays. I have been frank that delays are not acceptable since I made my first appearance at questions; when I gave my evidence at length to the Work and Pensions Committee, on which the hon. Member for Edinburgh East serves; and during the summer when I dealt with Members’ correspondence. The top priority when the Prime Minister asked me to do this job was to get the delays dealt with. That is my priority. I have been spending a considerable amount of time with my officials and meeting with both assessment providers to put it right. A new team of officials have taken over the work and are driving improved performance. We are working with the assessment providers and working with the oldest cases to improve it.

The hon. Lady asked for specifics. Between them, the two assessment providers have doubled the number of health professionals working through recruitment and training, and have increased the number of assessment centres—I will cover specifically the points raised by the hon. Member for Plymouth, Moor View (Alison Seabeck) in a minute—and extended their opening hours.

We have increased the number of paper-based assessments, so in many cases it should be possible, based on the paperwork that people produce, to make a decision without having to call them in for an assessment. The hon. Member for Edinburgh East is right that, at the beginning of the process, the number ran very low and below where we expected it to be. We have improved the process. I hope she will be pleased to know that, when claimants have been unable to work and have gone through the work capability assessment, we are joining up the process, so that we take the ESA85—the report from the work capability assessment—and put it with their PIP form and any other evidence they have provided. That is enabling us to make more decisions based on the paperwork without needing to call people in for assessments. I hope that is sensible.

[Jim Shannon]

Those are admirable steps in the right direction, and we appreciate them. Might it also be a good idea to set targets to reduce those figures within a certain period, given all the things that are happening? Sometimes if things are emphasised with targets, they are delivered.

[Mr Harper]

I will come to that in a minute, but let me deal with the point I was going to make on the hon. Gentleman’s constituents and Northern Ireland. These issues are, of course, devolved, so all the points he made about his constituents and the welfare system, although perfectly reasonable, should be addressed not to me but to the Minister responsible in the Northern Ireland Executive. I have no responsibility for such issues in Northern Ireland; they are devolved.

[Jim Shannon]

Will the Minister give way again?

[Mr Harper]

I will let the hon. Gentleman intervene once more, but I want to deal with the issues for which I am responsible, rather than ones for which I am not.

[Jim Shannon]

We know where the responsibility lies, but we also know that Capita is the company responsible not only for Northern Ireland but for central England and Wales. I am conscious that the system came in because the Government drove through the new PIP system. That is universal, so there is, in effect, a policy in Northern Ireland. The Minister is not the person responsible—I understand that the Minister in Northern Ireland is responsible—but the debate was secured for the purposes of illustrating where the PIP system is falling down across the whole of the United Kingdom.

[Mr Harper]

I am pleased to deal with the issues in Great Britain, but in Northern Ireland this is not my responsibility; there is a separate contract for Northern Ireland. I am happy to be accountable and to have people beat me up—figuratively speaking only, hopefully—for the things I am responsible for, but I am not responsible for the welfare system in Northern Ireland. That is the responsibility of the Northern Ireland Executive and the Minister for Social Development. The hon. Gentleman’s points are perfectly well made and I will deal with them as best I can—he has raised the same issues as Members from Great Britain. However, for Northern Ireland, I am afraid he needs to direct his points to the Minister and the Executive.

The initiatives I was setting out have meant that providers have quadrupled their output since January. Hon. Members quoted the latest published statistics, which were published in September. They gave the statistics for July, showing that, by then, we had increased the number of decisions to more than 35,000 per month, and there will obviously be a new set of statistics published in December, which will bring the figures up to date to September.

The Department was referred to by a couple of hon. Members. Changes to our processes, our IT systems and the work we do with providers have improved the process.

The hon. Member for Bolton South East referred to claimant communications, emphasising the need to be clearer to claimants. We have improved the communications at the front end of the process so that claimants know what the best evidence to supply is. We have also been clearer with people to let them know how long their claim may take. I know that it is not great when people are told that their claim will take a long time. I will go on to say a bit more about what we are doing about the delays, but at least we are being clearer with people, so that they know what to expect, which is better than their not knowing and having to keep chasing up progress reports.

Since April, we have been confirming to people, by sending a text message, that we have received their PIP form, so they know it has been received and not lost. I cannot remember who asked me about that—I think it was the hon. Member for Plymouth, Moor View. I do not have the data to hand on the number of people who have reported that they have sent a form back that has then been lost, but I will go away and consider it. I do not know whether we have that data, but I will investigate and write to the hon. Lady. In fact, I will write to all hon. Members attending the debate so that they are aware of the data.