Oral Answers to Questions

Justin Tomlinson Excerpts

Monday 22nd June 2015 Commons Chamber

[Julian Knight (Solihull) (Con)]

1. What assessment he has made of the effects of automatic enrolment on private sector pension saving.

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

More than 5.2 million workers have been automatically enrolled in a workplace pension by their employer to date. Since the start of automatic enrolment, workplace pension membership in the private sector has risen from 32% in 2012 to 49% in 2014, a very positive start.

[Julian Knight]

With 135,000 firms set to auto-enrol their employees from January, does my hon. Friend agree that the work of non-governmental groups such as the Solihull-based Chartered Institute of Payroll Professionals is key to the successful delivery of auto-enrolment and to meeting the savings challenge of 11 million Britons who are currently failing to put enough away for their retirement?

[Justin Tomlinson]

Our success to date in implementing automatic enrolment could not have been achieved without the significant ongoing support of a number of sectors, including the pensions and payroll industries. Friends of automatic enrolment have played a crucial role in bringing together organisations that are playing a key role in its delivery. Together they have helped the Government improve the process of automatic enrolment and ensure that these reforms work. We thank them for their support so far and their commitment to continuing to work with us as we start the process of helping 1.3 million smaller employers implement automatic enrolment for their workers.

[Andrew Gwynne (Denton and Reddish) (Lab)]

But will the Minister advise the House of his estimate of the number of workers who are excluded from the benefit of auto-enrolment because of the changes in the threshold over the past five years, and of what proportion of those workers are women?

[Justin Tomlinson]

The Secretary of State is required by law to review the automatic enrolment thresholds in each tax year and may take into account a range of prescribed factors. The review can include considering whether to lower or increase the thresholds or leave them unchanged, as was the case for the current tax year. Freezing the trigger for this tax year will result in approximately 14,000 additional women and 20,000 people overall being brought into pension savings. On the hon. Gentleman’s specific point, I am happy to write to him with further information.

[Nigel Mills (Amber Valley) (Con)]

18. I welcome the Minister to his post.One way of boosting auto-enrolment further would be to ensure that people were more confident when they came to access their savings that they had the full range of choices that the law now allows. What more can the Minister do to encourage pension funds to offer that full range at an affordable and fair price?

[Justin Tomlinson]

I am encouraged by the fact that 91% of people who have already been auto-enrolled have continued to save, which is a welcome step and above initial expectations. We will continue to work with the Treasury, the Financial Conduct Authority and the Pensions Regulator to ensure that flexibilities, information and charges are all delivering for the consumer.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

When it comes to the reforms that the Government are putting through, particularly on pension freedoms, we are mindful of the attractions of consumer choice but also of all the mis-selling scandals of the past. What assurances can the Minister give that all defined-contribution plan holders will get appropriate advice and that consumers will be adequately protected? It is not clear to us that the appropriate measures are in place.

[Justin Tomlinson]

As I said in response to the previous question, we will work with the Treasury, the FCA and the Pensions Regulator to monitor that closely. We have also brought in a 0.75% cap on charges, which in time will allow an extra £200 million to remain in pension savings.

[Mr Speaker]

I call Adrian Bailey. Not here.

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[Nigel Adams (Selby and Ainsty) (Con)]

12. What progress his Department has made on the Disability Confident campaign.

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

The Disability Confident campaign continues to play a crucial role in the Government’s aim of halving the disability gap. It has secured support from 360 employers and pledges from 98 organisations to positively change employment practices towards disabled staff. Many colleagues are hosting constituency events, including my hon. Friend the Member for Selby and Ainsty (Nigel Adams) who did so last week.

[Chloe Smith]

Norwich for Jobs, the youth employment campaign that I founded in Norwich, has hit its goal of helping to halve youth unemployment. We want to turn the power of that local network towards helping young people who are claiming employment and support allowance. Will the Minister join me in calling on Norwich companies to give a young disabled person a chance?

[Justin Tomlinson]

I am delighted to hear of the success my hon. Friend has achieved in her constituency with Norwich for Jobs. That is exactly the kind of local initiative that I welcome, and to which I am pleased to add my support. In addition, I hope that her local authority, local enterprise partnership and business community will do all they can to help to promote that fantastic scheme.

[Nigel Adams]

Will the Minister join me in thanking all the employers and speakers who contributed to my first Disability Confident conference in Selby a couple of weeks ago? It was an extremely worthwhile event to organise. Many of those employers will join me for my fifth jobs fair in October. I was particularly pleased because we had a bit of stardust at the event—Pamela Uddin, the star of the BBC’s “The Apprentice”, shared her experiences of coping with dyslexia.

[Justin Tomlinson]

I am aware of the very successful event my hon. Friend organised. I congratulate him on the quality of the speakers he secured—it certainly shows that he is no apprentice. We need employers to see that recruiting and retaining disabled people should be the norm, and that disabled people have a great deal to offer in the workplace. Events such as the Selby summit play a crucial part in our drive to get employers involved.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Minister agree that an almost hidden element of disability is autism? It is a barrier to so many people gaining employment and a full and confident life.

[Justin Tomlinson]

I have met stakeholder groups, and that message has been made very clear to me. In fact, 42% of disabled people looking for work say that the biggest barrier they face is the attitude of their employer. Through such campaigns as Disability Confident, we hope to inspire more businesses to take on more people with disabilities. We rejoice in the fact that, over the past 12 months, an extra 238,000 disabled people were in work.

[Grahame M. Morris (Easington) (Lab)]

What support is the Minister offering to specialist and locally based employment organisations such as Northern Rights in my constituency and the East Durham Employability Trust? They have a proven track record of supporting disabled people and people with multiple barriers into work, but have frequently found it very difficult to access funding from the Department for Work and Pensions.

[Justin Tomlinson]

Again, having met with stakeholders, I can say that local initiatives are clearly key. Each of our individual constituencies has different challenges and opportunities. Part of the Disability Confident campaign is sharing best practice. I would be keen to hear more of the good work going on in the hon. Gentleman’s constituency.

[Dr Tania Mathias (Twickenham) (Con)]

As part of the Disability Confident campaign, will the Minister work with organisations such as United Response, which does excellent work in my constituency with people who have learning difficulties such as autism, which the hon. Member for Huddersfield (Mr Sheerman) mentioned, so that people with learning difficulties go into every kind of job and all public service? Some are councillors. I want more people with learning difficulties to put themselves forward to be councillors and Members of Parliament.

[Justin Tomlinson]

That is why we launched the Disability Confident campaign and why we will continue to drive it forward. I met Liz Sayce of Disability Rights UK. She made it very clear to me: she said that, too often, disabled people are seen as recipients when they want to be net contributors. Local initiatives, sharing best practice, busting the myths and ensuring that people see what a huge amount of talent is available will continue to help to drive up disability employment rates.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

5. What assessment he has made of the implications for his Department of the High Court ruling in June 2015 on delays in personal independence payments.

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

We have taken decisive action to speed up waiting times for personal independence payment claims and are pleased that the Court has recognised the huge progress made. The average new PIP claimant now waits only five weeks for an assessment.

[Alan Brown]

Currently, delays to people receiving PIP causes problems, but the impact of delays on other benefits such as the carer’s allowance and blue badges is hugely significant. Although the Government have made progress, will the Minister advise us as to what the backlog is in terms of numbers, and how many people wait more than seven weeks?

[Justin Tomlinson]

It is important to recognise that other benefits are backdated. We have made huge progress. The backlog has been falling month on month since August 2014, and we are now within where we would expect to be as part of usual business. We are looking at a median time, end to end, of 11 weeks. We will continue to monitor that important issue closely.

[Mr Philip Hollobone (Kettering) (Con)]

May I draw the Minister’s attention to a letter I received from a constituent last week? He says:

“I was recently contacted by DWP to be assessed for PIP…I sent the forms off and within 3 days had a medical assessment at my home…I have to tell you that the process from start to finish was 3 weeks. Is this a record?...Whilst we read a lot in the media I think my recent experience shows the system may at last be improving.”

[Justin Tomlinson]

I thank my hon. Friend for that. Claims are now cleared at four times the rate they were in January 2014. We have quadrupled the number of healthcare professionals, introduced more than 200 new assessment rooms, doubled the number of DWP decision-making staff, and improved IT systems and claimant communication. I am delighted that my hon. Friend’s constituent has benefited from those improvements.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

I welcome the new Ministers to their roles.

The recent High Court ruling found that the delays to PIP were unreasonable and unlawful. They are also undermining the well-being and dignity of sick and disabled people. I know that I am not the only Member who has seen constituents affected not just by inordinate delays, but by poor quality assessments, driving them into hardship and destitution. The High Court ruling should have been a wake-up call for Ministers, but they seem to be refusing to accept that PIP is just not fit for purpose. In the light of that damning judgment, will they halt the roll-out of PIP and initiate a review as a matter of urgency?

[Justin Tomlinson]

Actually, the Court and the Paul Gray review agreed that there were no inherent failings in the system, and significant improvements have been made, which I have already listed. The reality is that some cases were unacceptable, but we must not forget why we introduced PIP. It is a modern benefit that allows thorough face-to-face assessments and will ultimately see a higher proportion of maximum value paid, compared with the old disability living allowance system. We are continuing to make improvements and I will keep a close eye on the issue.

[Dr Whiteford]

I am disappointed by the Minister’s complacency. Earlier this year, Citizens Advice Scotland published research showing that 55% of current DLA claimants will lose out in the transfer to PIP. It is not just sick and disabled people who will suffer—[Interruption.] I am sorry; I thought you were cutting me off, Mr Speaker. The Scottish Government estimate that 450 carers in Scotland will lose their carer’s allowance because of this transition. That will put further strain on families that are already at a disadvantage—

[Justin Tomlinson]

I am afraid that I do not share the hon. Lady’s views. PIP is a far better system than the former DLA. Under DLA, only 6% of people had a face-to-face assessment, 50% of awards were made with no medical advice, and 71% were allocated lifetime awards, even though one in three cases would change within 12 months—often getting worse, so that people missed out on the appropriate support. We are right to push this and I will continue to keep a close eye on the improvements we have made.

[Peter Heaton-Jones (North Devon) (Con)]

I warmly welcome the Minister to his post.

My constituency has many isolated rural and coastal communities. What is being done to ensure that assessment centres are more accessible and flexible for people in those communities?

[Justin Tomlinson]

I thank my hon. Friend for that question: he is a real champion for his constituents. We have added an extra 200 assessment rooms. People who find it difficult to reach an assessment room can travel by car as long as it is within 60 minutes; by public transport if it is within 90 minutes; or, by prior agreement with the assessment providers, they can have taxis provided and paid for.

[Mr Dennis Skinner (Bolsover) (Lab)]

What a difference a weekend makes. On Saturday, thousands of disabled people marched in protest against cuts in their benefits. The Minister comes here today, trotting out his sunshine stories, while in the real world disabled people are losing benefits left, right and centre. He can remedy that today by saying, “This Government will not cut the benefits of any disabled person throughout this Parliament.” Come on, say it!

[Justin Tomlinson]

We are clear that we will protect the disabled and vulnerable. Let us remember that under the PIP system 22% of claimants will end up getting the highest rate of support, which is higher than the 16% under the DLA. We are doing more to help the most vulnerable in society.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

6. What support his Department is providing to young people seeking apprenticeships and employment.

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[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

I thank my hon. Friend for highlighting such excellent local initiatives. In my earlier answers I stressed how important that is. Last year we saw an increase of 238,000 disabled people in work. The employment rate is now 46.3%—up 2.1% from last year—and our Disability Confident campaign will continue to share best practice and signpost further help for local businesses.

[Marie Rimmer (St Helens South and Whiston) (Lab)]

T5. Following the shameful failure of the Front-Bench team once again to answer a question today, may I ask again why the Government are refusing to publish—even though the Information Commissioner has instructed them to do so—the up-to-date statistics relating to the number of people who have died, having been found fit for work at their face-to-face assessment?

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[Justin Tomlinson]

Without having the full details of that case, I cannot comment, but if the hon. Gentleman provided further information I would be happy to look into it. He should remember, however, that under the PIP process 22% of people would be expected to get the highest rate of support as against only 16% under DLA.

[Fiona Bruce (Congleton) (Con)]

Does the Secretary of State agree that family breakdown is a driver of child poverty as well as many other issues such as addiction, obesity and self-harm, at a cost of almost £50 billion a year, and that therefore investment in strengthening couple relationships, as well as parent-child relationships, makes economic sense as well as being a matter of social justice?

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[Tom Pursglove (Corby) (Con)]

This weekend I had a discussion about the difficulties that those suffering from mental health conditions face when trying to access support, specifically in relation to budgeting. What support is available, particularly in the most difficult cases?

[Justin Tomlinson]

I thank my hon. Friend for highlighting the issue of mental health conditions, which is a particular priority for us. Through the Access to Work scheme, we have introduced a lot more measures to increase support and provision for those trying to get into work and while they are in work. That is partly why 35,000 people benefited from that scheme last year, up by 4,000 on the previous year.

[Greg Mulholland (Leeds North West) (LD)]

Six-year-old Ellie Mae Brownnutt tragically died on 8 May from Batten disease; her brother Caleb also suffers from the condition. The parents of children with Batten disease still have to fill in forms for DLA every three years, even though there is no cure and, sadly, death is inevitable. Some conditions are exempt from that requirement and some are not. Will the Minister meet me, representatives of the Batten Disease Family Association and people affected by other degenerative conditions to discuss how this situation can be changed?

[Justin Tomlinson]

I thank the hon. Gentleman for raising that issue—I know he has been a real champion for the cause. I am happy to meet him, but he should remember that the reason we do reassessments, where appropriate, is that sometimes conditions get worse and support for them will therefore increase. We would not want people to miss out, as they did under DLA.

[David Mowat (Warrington South) (Con)]

Earlier, the Minister pointed out that we have brought in a 0.75% cap on private pensions that are subject to auto-enrolment. That is excellent news. However, there is also abusive behaviour more widely in the industry. Do we expect that cap to be extended to non-auto-enrolled pensions?

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[Helen Whately (Faversham and Mid Kent) (Con)]

People with mental health problems can find it incredibly difficult to get a job and stay in employment. What are the Government doing to help?

[Justin Tomlinson]

That issue is being picked up through the Access to Work scheme. The changes we have made recognise the challenges for people with mental health conditions both while they are in work and with maintaining work. I formerly employed someone with a mental health condition, so I know what a valuable contribution such people can make, often needing only small changes and bits of support.

[Several hon. Members]

rose—

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[Mr Speaker]

The Minister could put an answer in the Library of the House, which might be quicker.

[Justin Tomlinson]

I totally agree with my hon. Friend. Thirteen MPs have already held events in their constituencies. We can all play a vital role in promoting opportunities for the wealth of talent that is available and willing to go into work.

[Mr Speaker]

Last but not least, I call Peter Grant.