Welfare Reform

Julian Smith Excerpts

Thursday 11th November 2010 Commons Chamber

[Mr Duncan Smith]

I am saddened by the hon. Lady’s question. She is wrong. First, the contributory principle still exists. The contributory benefits will run in parallel; we are not getting rid of those. Secondly, she said that we should only ever get people into jobs that their top qualification allows them to get. I think that getting people into work is the most important starting point, and from there they can move on. [Interruption.] Oh, quite the contrary! I have been unemployed, and I would have done anything to get a job.

[Julian Smith (Skipton and Ripon) (Con)]

My local jobcentre told me last week that many well-paid caring jobs are not being taken up by jobseekers. As well as addressing the disincentives in the current benefits system, do we not need to encourage jobseekers to be less picky about the jobs they go after? Every job is of value.

[Mr Duncan Smith]

I agree that all jobs have a value, and that we want people to get jobs, to move on and to be assisted in getting better and better pay and circumstances. Carers will benefit from this system because it allows them to balance their work and caring responsibilities by picking the hours that suit them. Carers organisations have told us that the critical point is that often carers are locked into one set of hours that do not suit them. This system will allow them to take the relevant hours while fulfilling their caring responsibilities.

Work and Pensions (CSR)

Julian Smith Excerpts

Thursday 4th November 2010 Westminster Hall

[Mr Oliver Heald (North East Hertfordshire) (Con)]

The Chairman of the Select Committee has set out many of the arguments that are regularly deployed about the sort of cutbacks that are having to be made given the economic situation that this coalition Government inherited—the largest deficit in the G20 and a doubled national debt. However, she misunderstands, I think, what the Government’s ambition is. The Government have a grand ambition to help people into work and to provide incentives for that and the necessary help.

If we think back over the Labour years, one of the things that was most disappointing about them was that, at the end of the period, we had 3 million households in which nobody worked. Adults of working age may have lived there, but nobody worked. Many of the people concerned had never been approached about working. They had been on benefits for years and had not really had any help to try to get back into work. That is what this ambition and plan is about. The Work programme provides something that the Select Committee has been talking about for years—I am glad that the Chairman has welcomed it—which is a personalised service to help people back into work. I agree that there are some people who would benefit from having that help earlier in their job search than is currently proposed. The worry is that if we start the system at six months, we will not get any of the benefits of deflection. The fact is that many people find work in the second six months of job search.

[Julian Smith (Skipton and Ripon) (Con)]

Does my hon. Friend have any ideas for jobcentres? They could take some practical and easy measures before the Work programme kicks in to help people get back into work.

[Mr Heald]

I do have some suggestions. If one talks to providers—the big companies that provide these employment services—young people who are looking for work and employers, the one thing that they all say is that young people are bad at applying for jobs. When the future jobs fund was in operation, the employers’ reaction to it was generally quite favourable, but the one point that they almost all made was that the applications were poor. If one talks to job providers they will say that young people who have been out of work for six months will still not have a CV that they can leave with an employer. That is a classic thing that everybody knows about, and yet young people are not good at it.

The time has come for the Government to work the way that young people work: to put online simple information about writing a CV and how to get into work. Somehow, we are still missing that vital information. A lot of research shows that helping a young person with a job search early on, with simple information of that sort, is extremely helpful. It can be done through jobs clubs, a fantastic big society initiative happening in many parts of the country. That is just one idea on that subject.

It is refreshing to read Save the Children’s briefing for this debate. Although I do not agree with everything in it, it does something that is a model for an organisation. Save the Children, a marvellous organisation, at least starts its briefing with the good news, saying that the Government are doing some things that it strongly supports. If other organisations that send briefings to MPs were more realistic and acknowledged the good—the intent—and then went on to say what they did not like, they might find that they are more persuasive. I notice that the hon. Ladies do not agree. It is important to be realistic in this debate and not to over-state one’s case or make dramatic claims that are not borne out by the facts.

I want to ask the Minister whether universal credit is a big bang initiative, where we will have a sudden launch—with the new system explained to people—or whether it is proposed to have a transition, where a portfolio of benefits gradually moves in that direction, with the withdrawal rates being lowered and the earnings disregards increased. What is the conception behind that process?

Turning to the Work programme, I want to make three points. The first is that at the moment there is a patchwork of schemes continuing. We have got half the country covered by the flexible new deal; we have many cities with employment zones; we have the new deal for disabled people in some places—contracts are just finishing on that; the future jobs fund is running for a bit longer, and so on. It seems that there is a ragged gap in time between the ending of a lot of these programmes and the start of the Work programme. I wonder whether there is any scope for running on some of those schemes, or finding ways of employing the people who work for the big provider companies in that gap. It will obviously be very disruptive if the Work programme starts with quite a lot of people who have not had the help that they would normally have had. Contractors will have to wind down their staffing levels and then crank them back up again over a two or three-month period. I am interested to know if the Minister is at least looking at the gap.

The second point I wanted to make is about the work capability assessment, which the Chair of the Select Committee mentioned. It is concerning that 40% of people affected are now appealing. That may be expected with a system that is starting anew. I think the review is very welcome and I hope that it will deal with some of the problems that have been identified. It is excellent that there is a panel now, with Paul Farmer from Mind on it, which is a very good idea. I wonder whether there is not another problem. I understand that research shows that in some parts of the country, the system works reasonably well and there are not too many problems, but in London there are a lot of appeals and a lot of concern is expressed about the way that it works. Part of the problem may be that adequate attention has not been paid to the needs of minority communities.

Work Capability Assessments

Julian Smith Excerpts

Wednesday 27th October 2010 Westminster Hall

[Natascha Engel]

Yes, I agree.

[Julian Smith (Skipton and Ripon) (Con)]

Would the hon. Lady like to comment on a case from my constituency of a gentleman who had to change his colostomy bag 16 times a day who is now going through the appeal process? In my view, we have to find a way of short cutting the system for terminally ill patients and those who are very ill, using common sense to get them away from that tick-box process.

[Natascha Engel]

Absolutely. That goes back to my original point about the pathways to work scheme, which was successful because it considered the individual, rather than how to get people moved off benefits and into tax-paying employment.

I wish to ask a couple of questions, the first of which is a wider economic one. The Government will be moving people from incapacity benefit, or from employment and support allowance via the work capability assessment, to the jobseeker’s allowance, at a time when the Government have admitted that there will be 490,000 job losses in the public sector, and there will be a massive knock-on effect on the private sector. Even the Minister has to admit that employment will be going down rather than up. Where will the jobs come from?

My second question may seem a minor point, but the Government will be taking £25 a week from those on incapacity benefit or employment and support allowance by putting them on JSA. That may save the Government £25 a week per claimant, but that money will not go back into the local economy. Such people have so little money that they spend it all. In rural ex-pit villages such as those in my constituency, many people are on passive benefits, but it is those people who keep the local shops going. Such shops will now close. How will that help growth? How will that help the economy? How will that provide more jobs?

We are already struggling. Many people will have been on passive benefits for well over two years, yet they are still more likely to retire or die than get jobs. They may get batted into the nearest towns where there is work, but that work will be taken by people fresh out of university who are far closer to the labour market. How exactly will it work?

Huge cuts have been announced to the Ministry of Justice budget. We have already heard that the tribunal system will be overloaded by appeals against people being taken off employment and support allowance and put on JSA. Many of those appeals are successful. However, at a time when the Ministry budget is being cut, how on earth will it work? Is the tribunal service ready for that enormous spike in its work?

To sum up, I would like to hear the Minister give those on passive benefits the idea that there is some light at the end of the tunnel. The vast majority want to work. They are not workshy; they simply need the correct help and support. Of those on benefits, 45% have some sort of mental health condition, which often fluctuates. How are we personalising the service to get those people off benefits and into work? I shall list my questions, and if I do not receive answers, I shall intervene on the Minister or write to him.

Oral Answers to Questions

Julian Smith Excerpts

Monday 18th October 2010 Commons Chamber

[Elizabeth Truss (South West Norfolk) (Con)]

1. What progress his Department has made towards the launch of its Work programme providing personalised assistance to those out of work.

[Julian Smith (Skipton and Ripon) (Con)]

3. What progress his Department has made towards the launch of its Work programme providing personalised assistance to those out of work.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I am pleased to inform the House that the contracting process for the Work programme is going well. We have had more than 100 expressions of interest from would-be prime contractors. We will announce those who will be on the framework in late November and we will then move on to the next stage of contracting. All is on track to launch the Work programme in the first part of next year.

--- Later in debate ---

[Julian Smith (Skipton and Ripon) (Con)]

May I urge my right hon. Friend to select a number of providers who have strong roots in rural communities both in advising clients and in networking among the rural labour market?

[Chris Grayling]

I absolutely assure my hon. Friend that that will be a factor. As we select organisations to fill different geographic parts of the Work programme, bidders’ ability to demonstrate a knowledge, awareness and understanding of the geography they will be dealing with will certainly be a factor for us. In substantially rural areas, it is essential that organisations have the expertise to deal with the particular challenges of the rural economy and not simply with those found in towns and cities.

--- Later in debate ---

[Mr Duncan Smith]

I thank the hon. Lady for her question. The reality is that going after error—and not just fraud—is a critical component. As I said earlier, one of the big changes that we are making is the reform of the benefits system, which is so incredibly complex that many of my officials say that often they simply cannot quite figure it out until 45 minutes or an hour of serious study for each case. Simplifying the system will reduce the scope for error, which will be in the interests of all her constituents and members of my Department.

[Julian Smith (Skipton and Ripon) (Con)]

T8. A constituent with bowel cancer has been found fit for work, despite having his colostomy bag changed 16 times a day. He is now going through appeal. How will my right hon. Friend ensure that those who are genuinely and obviously not fit for work are dealt with more humanely?

[Chris Grayling]

The point about cancer patients is a particularly apposite one. One thing I was astonished to discover on taking office was that we still had tough return-to-work requirements for those going through chemotherapy. Anybody who knows someone who has been through that knows it is a time when people cannot possibly return to work. We have sought to change that and we will make a number of other changes through the Harrington review. As I said earlier, our goal is, above all, to get this right. I do not want to do the wrong thing by those people who need support; I do want to do the right thing by the people with the potential to get back into work and make a better lot of their lives.

Oral Answers to Questions

Julian Smith Excerpts

Monday 19th July 2010 Commons Chamber

[Mr Duncan Smith]

Unless we can get retrospective resignations from the whole pack of the last Cabinet, I do not think that I should answer that.

[Julian Smith (Skipton and Ripon) (Con)]

13. What recent representations he has received on his Department's proposed new Work programme.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We have had a large number of representations from organisations interested in and interested to participate in the Work programme. My colleagues and I have also had a series of meetings with interested parties among the provider community and the financial community.

[Julian Smith]

Will my right hon. Friend pay tribute to the Skipton and Ripon enterprise initiative led by Alan Halsall, chairman of Silver Cross Prams in my constituency, which has built a network of established business owners who are voluntarily giving their time to provide advice to anyone who wants to set up a business?

[Chris Grayling]

I will indeed pay tribute to my hon. Friend’s constituent. As well as Government action to address the problems, we should capture the valuable experience of communities and individuals in building businesses, and use it positively to help those who are out of work. We particularly want more individuals to move off benefits into self-employment. I have no doubt that my hon. Friend’s constituent and—I hope—others around the country will be able to make a big difference to these people as they seek to build their businesses in the years ahead.

--- Later in debate ---

[Mr Duncan Smith]

I am enormously fond of the hon. Lady’s constituency, but as she knows, that is not an area for my Department; it comes under the Treasury brief. I can give her a guarantee that I have had no discussions with the Treasury about that matter.

[Julian Smith (Skipton and Ripon) (Con)]

T9. At my surgery on Saturday, Liz Harlow, a benefits adviser, told me that it is taking weeks to process applications for crisis loans. Given that they are described as loans that can provide help in “an emergency or disaster”, can Ministers reassure me that they will be processed more quickly in future?

[Steve Webb]

My hon. Friend raises a vital issue. We need to ensure that crisis loans are administered far more efficiently than they are at present. I am aware that there are delays. I am happy to look not only into the individual case that he raises, but more systematically at whether the social fund is delivering—I do not think that it is.