Welfare Reform (Sick and Disabled People)

Debate between John McDonnell and Anne Begg

Thursday 27th February 2014 Commons Chamber

[John McDonnell]

Members have brought forward example after example like that one. We are simply looking for some compassion and logic in the governance of the system. The Government have ignored that, tragically.

Many people report that, as a result of sanctions, they are dependent on doorstep loans and are using credit cards for everyday items. Some people have fallen into long-term debt. Some Members met a representative of Disability UK on Monday. He described all this as a route into destitution for many people.

Disabled people who are on ESA are placed on the Work programme and offered support from Work Choice. The latest figures on the success rate of the Work programme in finding employment for disabled people show that only 5.3% of them secured employment. That is a 95% failure rate. Work Choice is meant to assist those with complex needs, but it has helped only 58 people since 2011. The forced closure of the Remploy factories under this Government has taken away the opportunity of sheltered work for many thousands of disabled people.

[Dame Anne Begg (Aberdeen South) (Lab)]

I visited my local Work Choice provider the other week. I was amazed to discover that everyone who was there to participate was on jobseeker’s allowance. They were not on a disability benefit, even though they had disabilities. I did not think that that was what Work Choice was meant to be about.

[John McDonnell]

That is exactly what is reported by constituency Member after constituency Member after their visits. I am concerned about time, so I will press on and take no further interventions, if Members do not mind.

Let me turn to the personal independence payment. Some 3.2 million disabled people receive disability living allowance. DLA is not a work benefit; it is meant to help with the additional costs caused by disability. It allows disabled people to get by and to overcome some of the restrictions that are forced upon them by their disability. From April 2013, DLA was supposed to be replaced gradually by PIP. I urge Members to read today’s National Audit Office report that assesses the roll-out. It states:

“Backlogs have developed at each stage of the claimant process. Both the Department and assessment providers have processed fewer claims than they expected”.

It states that by October,

“the Department had made only 16% of the number of decisions it expected, over 166,000 people had started new claims for Personal Independence Payment and 92,000 claims had been transferred to the assessment provider and not yet returned to the Department”.

Who is the assessment provider? After the WCA debacle, it is hard to believe that the Government allowed Atos to share the contract with Capita.

The report goes on to say:

“Claimants face delays, and the Department is not able to tell them how long they are likely to wait, potentially creating distress and financial difficulties.”

It states:

“Citizens Advice has found that claimants are concerned about paying for their care, covering housing costs and having enough money to pay for necessities such as heating, electricity and food.”

The Demos-Scope study calculates that 600,000 people will be impacted by the introduction of PIP, with a total loss of £2.6 billion.

Among the many eligibility changes, there have been changes to the eligibility for the mobility component. That means that 148,000 people will lose out on that additional benefit. It also potentially denies access to a Motability vehicle, and we know today that many people are having their Motability cars removed. The irony is that, as a result, they cannot get to work.

Disabled people are especially vulnerable to other benefit changes, and they will be disproportionately hit by the bedroom tax. Some 72% of affected households include someone with a disability or major health problem, and 420,000 disabled people will lose on average £14 a week in housing benefit. One in three disabled people is refused the discretionary housing payment. Shockingly, local councils have rejected applications from disabled people living in adapted properties who are unable to downsize. Last week, it was also revealed that the £347 million local welfare assistance fund to local councils had quietly been cut by the Government.

The Welfare Reform Act 2012 also changed the uprating of benefits basis from the retail prices index to the consumer prices index, costing some families receiving DLA and the carer’s allowance £80 a week. It has been estimated that 142,500 disabled people will be hit by the benefit cap, costing £2 billion. Universal credit looms over all of this. Research by the National Association of Citizens Advice Bureaux estimates that 116,000 disabled people could lose £40 a week; that 230,000 severely disabled people who live alone or with only a young carer will get between £28 and £58 less a week; and that 100,000 disabled children will lose £28 a week.

What do all these figures add up to? Although the Government have refused to undertake a cumulative assessment of the effect of all the benefit changes on disabled people, others have done so. The Demos-Scope study calculated that disabled people will lose £28.3 billion by 2018. Dr Simon Bamber concludes that disabled people in poverty, who make up 4% of the population, will bear 13% of the cuts and lose £4,660 a year. People using social care who make up 3% of the population will also bear 13% of the cuts, and lose £6,409 a year.

In conclusion, what do these changes mean in reality? They mean poverty for many. They mean not enough income for someone to heat their home adequately—there are nearly 1 million disabled people now in fuel poverty. They mean someone choosing not to eat so that their children can do so, and their feeling shamed and humiliated by having to rely on the generosity of others and support from the food bank. I urge people to look at the website, Calum’s List. For some it is all too much and they become another in a coroner’s report whose suicide is associated with the loss of benefits. Many of the disabled people I have met say the same thing. They tell me they feel hounded by the media, by politicians and by this Government, just for being disabled and claiming the benefits they are entitled to receive.

What the War on Welfare campaigners are demanding today is the truth. They want a cumulative impact assessment of all welfare changes, so that the truth of their plight can be revealed. They believe—perhaps naively—that if the truth is told, no decent society would allow its most vulnerable members to be treated in this way. That is why I supported the petition and tabled the motion before the House, and why I will be pressing it to a vote.