Intergenerational Fairness

Justin Tomlinson Excerpts
Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

It is a real pleasure to follow the widely respected and thoughtful comments of the right hon. Member for Birkenhead (Frank Field). Sometimes they are difficult for the Government and sometimes they are difficult for the Opposition, but we should always take heed of his comments and listen to them very carefully.

This debate nearly passed me by until I saw a quote in the report stating:

“An economy that is skewed towards baby boomers and against millennials”.

That panicked me. We all have our own calling into politics. I went to a school that was bottom of the league tables in Kidderminster and my father died at an early age. Many of my friends did not fulfil their potential. I was always driven by the thought that, given the right opportunity, everybody can be successful if equipped with the right skills, sometimes the right luck, the right support and the right direction. All too many people—very, very good friends of mine—did not take that path and have missed out. That is bad for them, bad for the economy and bad for society.

I looked at that quote and I worried, because to me it was one versus the other, rather than the core principle that we have a duty to do our very best by everybody. I know a lot of people will focus their comments on the triple lock—whether it is right, whether we are doing too much for pensioners and whether we should be doing it in a different way. I would just gently say, because I wish to focus my comments on the younger generation, that we all welcomed the triple lock. There had been a long time when perhaps we had underserved those who had worked hard all their lives. I just urge caution. Once people get to pension age, they have limited opportunities through which to change their circumstances. They have either fulfilled their potential or there is not really much more opportunity to do so. They have reached the finish line that the right hon. Member for Birkenhead talked about. We have to respect the fact that their incomes are predominantly fixed, and we have to do our best by them.

Jeremy Quin Portrait Jeremy Quin (Horsham) (Con)
- Hansard - - - Excerpts

There is a lot in the report that I would recommend to my hon. Friend, but does he share my slight concern that we must not allow our long-term thoughts on pensions to be coloured by a particular cohort of pensioners retiring right now? In 10 or 15 years’ time, defined benefit schemes will have gone and people may be in a much worse position than those retiring this year or in the next few years.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I am very grateful for the fact that we have a fantastic Pensions Minister who will be responding to the debate and who will no doubt comment in detail on that point.

The broader point, as I turn to the opportunities for younger people, is that we all collectively—the Government and the Opposition—have a responsibility to recognise that we have a habit of spending more money than we get in as tax revenue. Since the second world war, I think there have been only six years where the Government of the day have spent less money than they have collected. What that really means in plain English is that we, as the generations from most of those years, wish to have more than we can afford and we would like our children, or maybe our children’s children, to pay for it. This applies to all Governments, except in those six years where, for whatever reason, the Government of the day were able to collect in more tax revenue than they spent. We have a moral duty and responsibility to future generations not always to take that easy decision.

I was doing a radio interview yesterday on a relatively contentious issue involving possible additional Government spending, and another MP said, “Well, if I was the Minister, I’d have taken the hit.” The key point was that it was not they who would have taken the hit; it was everybody. Given that we already spend more money than we collect, what they were saying was, “I’d pass that one on to the next generation as well.” We all know that. We would all like to balance the books immediately, but we also all have a long list of personal priorities we would like to spend money on—our inboxes are full of helpful requests from residents for where we could spend more money. Many of those are very important—a balance always needs to be struck—but I gently remind the House not to lose sight of the fact that if we wish to give the best opportunities to future generations, we must not saddle them with too much of our own overspending.

I am inherently a very positive person—I believe that if we equip people and give them the opportunity, they will seize it with both hands and make a huge success of it—so I am greatly encouraged that our Government have delivered 1.8 million more good or outstanding school places. As someone who went to a school at the bottom of the league tables, I understand the importance of equipping people with the right skills. In my constituency and across Swindon, we have had a difficult Ofsted report recently. We have fantastic teachers, headteachers and governors all trying their best in Swindon and we have secured extra funding for our schools, but we are not quite there yet.

We all—the Government, MPs, the council, the schools collectively, the parents—have to look at what more can be done. I am encouraged that the schools Minister recently visited two of my local schools, Nova and Swindon Academy, both of which are transforming the opportunities for their children, having come from what not so long ago were very poor ratings. Frankly, they were failing the children who were relying on them to equip them for the future, but both have transformed their ratings through strong leadership, and I am delighted that yesterday Ofsted confirmed that Nova had moved to “good” in all categories. I pay tribute to Mr Barton, the headteacher, and all his staff who have worked incredibly hard to achieve that. Schools are the fundamental building block for equipping young people in life.

I am also a huge fan of the National Citizen Service, a new initiative giving young adults real, tangible life skills, and every summer, without fail, I visit every stage of the three to four-week programme. It takes a random collection of young people—the activities cost about £1,500—and sends them away for a week to learn teambuilding skills. They then come back, form teams and choose a charity. They learn about that charity, organise entrepreneurial and fundraising activities, volunteer for the charity to see it at first hand, learn presentation skills, haggling, engaging and so on, and at the end, they graduate as NCS students. There is an incredible transformation in all those young adults, who arrive well educated by their schools but perhaps not quite ready for the workplace. I ran my own business for 10 years and employed a lot of young people and I am encouraged to see the huge difference in those young adults. They take the time in their summer holiday, when it is tempting to do other less-constructive things, to go and engage. In doing so, they give themselves the best opportunity when entering the workplace.

University numbers continue to increase, but the Government have rightly put a huge emphasis on apprenticeships. For generations, Governments and Opposition parties got into an arms race on students going to university. Every general election, we would hear, “We sent 25%.”, “Well, we’d send 30%.”, “We’d do a third.”, “We’d do 45%.”, “We’ll break 50%.”. Everybody has a talent. David Beckham is not renowned for being academically gifted, but he has a gift that has earned him more money in a week than the majority of people in society will ever earn, and that was because somebody recognised his skill and allowed him to develop it.

We all have a talent. Every time I failed to make it on to a sports team, I wondered whether I did—perhaps that is why I am here—but everyone has a talent, and apprenticeships rightly recognise that. Workplace learning provides people with real, tangible skills and a fantastic opportunity to secure a long-term career with good career prospects. That is also vital for our growing economy, particularly where we have skills gaps.

In the last Parliament, we had a commitment to 2 million apprentices, which we have met, and in this Parliament we have rightly identified an even more ambitious target. It will be tough to get there, but it is right to have such challenging targets. I have spent, as I am sure have all hon. Members, a lot of time meeting the young apprentices who are doing things that I have absolutely no idea about—advanced engineering, all sorts of complex things with computers. They are on the first rung on the ladder towards their brilliant careers. They will all go on to huge success.

Across the economy, this Government have now delivered record employment—2.7 million more people are in work than when we came to office in 2010. That is not just in London or the south-east, as has sometimes been seen in previous strong economic performances; it is in every single region of the country. In my town of Swindon, 8,400 more people are in work, which is greater than the number who currently go on a weekly basis to see Swindon Town bravely fighting the relegation battle. Thankfully, with the victory at the weekend, we have got a bit closer to achieving the objective.

There are now 865,000 fewer workless households, and youth unemployment is at its lowest since 2005. In Swindon—I know that people are keen to know how well we are doing—youth unemployment is down by 69.2% since 2010, which is a fantastic achievement. The Government have rightly introduced the national living wage so that we are looking at a wage of about £9-plus by 2020. That will help 6 million of the lowest earners to have a pay rise and to share in the proceeds of the strong economic growth that we have delivered. The increases in the personal tax threshold have taken the 3.2 million lowest earners out of paying any income tax at all, and we are continuing to raise that threshold to £12,500, after which it will be index linked, making sure that the lowest earners will never return to the point of having to pay income tax again.

Lord Jackson of Peterborough Portrait Mr Jackson
- Hansard - - - Excerpts

My hon. Friend is making an excellent speech, based on his expertise as a former Minister. We share something in common, in that our towns and cities of Swindon and Peterborough are, unfortunately, the two largest conurbations in the UK without a university that was created from the beginning. Does he agree that, in that respect, it is important to build on apprenticeships, with university technical colleges, for instance, so that young people who are not of an academic bent can be persuaded to pursue a technical and vocational education, which is so important for our future economy?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I thank my hon. Friend for that powerful intervention. He is a real champion for his constituency. On his point about universities, my Swindon constituency benefits from having a huge influx of graduates, so we benefit from the network of local universities within striking distance of Swindon, which is why our area has seen such strong economic growth.

My hon. Friend is absolutely right to highlight the importance of university technical colleges. My constituency had one of the first UTCs—a £10 million facility in Swindon. It has had its teething problems, but the principle is fantastic, because it is identifying the people who would ultimately be doing advanced engineering and technical work, giving them a real focus on that. They are working with local businesses, which can help to shape the curriculum to fill the skills gaps that can be identified in the local economy. This means that young people will have the best chance of having a career at the end of their education.

The challenge with university technical colleges is how to attract the best and most able students for that type of education at the age of 14. Not unsurprisingly, schools, which are all judged by league tables, are not always brilliantly keen to encourage their most able students to transfer, because it will have a detrimental effect on their place in the league tables. I would urge the schools Minister to consider having a dual score in the league tables, whereby the student remains attributed to the original school, but the results can be shared with the UTC. That would get around the disincentive facing schools if they lose some of their best students. It will give them the opportunity to say, “Look, they are doing great; but they can do even greater with that type of specialist education”. Undoubtedly, apprenticeships and UTCs are making a huge difference.

Not everybody has the opportunity to walk straight into work. As a society, we therefore have a duty to make sure that our jobcentre network is at its most able to support people. I was not the Minister responsible for jobcentres during my time in the Department for Work and Pensions but we had a lot of joint meetings and I got very excited about the need to refresh our jobcentre network. I had been on a number of visits and I was fundamentally depressed when I saw the 1960s and 1970s concrete structures and the security guards who are, understandably, needed. Let me imagine, though, that I am going to a jobcentre. I am almost certainly nervous, and I am then greeted by a security guard in bleak surroundings. There is no celebration of the successes, and no highlighting of those who have faced the same challenges that I fear but know that I must overcome.

I also visited a Shaw Trust community hub that helped a number of people who were a long way away from entering the workplace. There were bright colours and great furniture. This security guard had a different uniform to show that he was a welcomer: as soon as people arrived they were made to feel special, were congratulated on taking this step, and were made aware that he was there to be their anchor throughout the process. It was a real hub of activity. I could see nervous people coming into the building, but as soon as they met the guard they were at their ease, keen to engage in the process and fulfil their potential.

I am delighted that the Government have rolled out this system. When I visited the Swindon jobcentre a few weeks ago, I was not sure what to expect. I was greeted by senior members of staff, who told me excitedly that although the jobcentre had a budget of only about £3,000, they had painted the walls, changed the furniture around, changed the way the entrance worked, and provided work stations so that people could use computers to look for jobs independently after receiving support from the staff. Those staff members were excited because those improvements had transformed their morale and engagement among those with whom they sought to work.

The staff were then keen to talk to me about the difference that universal credit was making by simplifying what had been an incredibly complex benefits system. Under the old system, involving about 167 benefits, it was necessary to be a nuclear physicist to work out what people were or were not entitled to. All too often, through our casework, we would discover that, because of the complexity of that system, our constituents were missing out on support to which they should have been entitled.

Everyone supports the idea of a simplified single benefit that enshrines the principle that the more people work, the better off they will always be, and removes the ridiculous 16-hour cliff edge that prevented people from progressing from part-time to full-time work, to the frustration both of employers and of those whose circumstances were changing and who wished to build up their hours. Crucially, real-time technology now allows people with fluctuating health conditions to have a minimum income. As the condition goes up or down, the system automatically kicks in, so that people no longer constantly have to reapply and experience complicated bureaucracy when they want to focus on dealing with their health challenges and with remaining, or progressing, in work.

Often it is the simplest things that make the biggest difference. Another exciting development is that, for the first time, there are named work coaches. When people arrive at the jobcentre, they do not just need direct help with their search for work; there are a number of other challenges that they may need to navigate, such as securing childcare or additional training. The named coach will help them through that process, giving them significantly more time to concentrate on looking for the work that they would like. The coach will stay with people when they start work, which will also make a huge difference.

Many of us, looking back on our careers, will realise that we were probably driven mostly by our parents encouraging us to make progress—encouraging us not to be complacent; encouraging us to push ourselves—but that is not a given in life. When I was at school, it was a given that many people had no interest in going to work. That was a shame, because they were brilliant people, and with the right encouragement they could have made huge successes of themselves.

Often, people—especially those who have been out of work for a long time—will enter work, but on the lowest wage. Sometimes they will then stagnate, and will not have the confidence to kick on to higher levels. Let us suppose, for example, that I have been out of work for a long period, and have secured work in a supermarket. I am determined to make it a success, so I turn up every day, work my hours diligently, and stay there. Now, however, the named work coach would contact me and ask, “How is it going?” I would say, “For the last three months I have turned up every day and worked as hard as I possibly can.” The named work coach might say, “Have you thought about asking to become the supervisor?” The reply would be, “I’m too shy to do that.” The named coach would say, “No problem,” and then ask the supervisors and managers in the store, “Is he ready to take that step up?” Therefore, the coaches help people to progress in the workplace.

It is great that we have 2.7 million more people in work and that we have introduced the national living wage, which has helped the 6 million lowest earners to get a pay rise, but the next challenge, as we move close to full structural employment, is to ensure that there is support for in-work progression, so that everyone can not just get a job but fulfil their potential. By working hard, they can then progress through those organisations.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
- Hansard - - - Excerpts

I want to come back to the subject of the debate, intergenerational fairness. My hon. Friend has made some points about working issues. Does he agree that for those who have retired or are working but are due a pension a key issue is not only intergenerational fairness but fairness between people who own and run companies and who have responsibilities to people in pension schemes? The news today is a good example of how this place can help to secure the best outcomes for those who are promised pensions in a not very rich retirement world.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I thank my hon. Friend for his intervention. I am always at a loss to understand why he is not a Minister. He is one of our most able MPs. In the debates that I have attended, time and again, he is so thoughtful. I had a brilliant time visiting his constituency as a Minister to see the great work that he had done to help to promote apprentices, before it became fashionable and all of us started to campaign for more apprenticeships. He is always ahead of the curve. Rightly, his intervention highlights that we have to look at people of all ages and at the opportunities. I was an employer myself, so I understand the responsibilities to staff in respect of pensions and other benefits and career progression. As ever, he makes a powerful point.

Lord Jackson of Peterborough Portrait Mr Jackson
- Hansard - - - Excerpts

Before my hon. Friend finishes his speech, on a positive note, does he agree that it is important that we have done everything we can to remove the badge of shame in the way we treat disabled people who want to work, and that the Disability Confident scheme, with which he was very much involved at the Department for Work and Pensions, is going from strength to strength, so that more disabled people, who should not be put in the shadows but allowed to fulfil their potential are able to do so in the employment market?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I thank my hon. Friend for his intervention. I know that he personally supported the Disability Confident campaign. I am coming to that, if he can hold on for a few more seconds.

Another thing that the staff at the jobcentre highlighted was the great initiative of the school advisers from the jobcentre going into schools, starting to identify those who would need help at an earlier stage and working with them to prepare them for their final day in education and to have a smooth transition. Staff are very excited about the early stages of that initiative. I am delighted that the small employment offer, a pilot that I introduced, is making a difference in getting more businesses to engage directly with the jobcentres, which are now a hub of activity, creating more potential vacancies for those who are still looking for work.

As a former disability Minister, it would be remiss of me not to talk about the additional opportunities that have been created for disabled people. On all the visits I ever did, the most passion I saw from people was when I played my favourite game, which was to ask anyone I ever met, “You are the Minister—what would you do?” I was always looking for good ideas. Without a shadow of a doubt, the most passionate, enthusiastic and engaged cohort of people I talked to were young disabled people who wanted to have exactly the same chances and opportunities as their friends. These were highly talented, often highly educated, brilliant young people, but not all employers had the confidence to consider offering them an opportunity. Nearly always, the employer just needed to make a relatively small change and they would benefit. As an employer, by accident—I am not looking for a halo—I employed people with a disability and it made a huge difference. Therefore, I welcome the fact that over the past three years 600,000 more disabled people have gone into work and that the Government are committed to delivering the disability apprenticeships. Those are real opportunities, predominantly for that younger generation.

I welcome this report, but I urge everyone to remember: it is not them versus us. We have a duty to do our best by people of all ages. I very much hope the Government continue their good work in this area.

None Portrait Several hon. Members rose—
- Hansard -

Social Security and Pensions

Justin Tomlinson Excerpts
Tuesday 21st February 2017

(7 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
- Hansard - - - Excerpts

I will start with some general comments on the Guaranteed Minimum Pensions Increase Order 2017 before turning to the Social Security Benefits Up-rating Order 2017.

Clearly we support the uprating of the guaranteed minimum pension in line with prices. However, I wish to touch on issues raised in last year’s National Audit Office report on the guaranteed minimum pension and the new state pension arrangements that came into effect last year. As we have heard, the Guaranteed Minimum Pensions Increase Order provides an annual increase in the guaranteed minimum pension where there has been an increase in the general level of prices during the period under review.

When the additional state pension was introduced in 1978, an option was created under which an individual could contract out into another pension scheme on the basis that that other scheme met certain criteria. In that instance, both the employee and their employer paid a reduced national insurance contribution given that they were forgoing the state pension entitlements. Between 1978 and 1997, schemes that took on such new members were required to provide a guaranteed minimum pension—a new test was applied after 1997. Nevertheless, contracted-out schemes still had to provide a guaranteed minimum pension to scheme members for rights accrued between 1978 and 1997.

In 2016, the introduction of the new state pension ended contracting out by replacing the additional state pension with a single tier. Working-age people will now have their existing state pension entitlement adjusted for previous periods of contracting out and transferred to the new state pension scheme. Occupational pension scheme providers will continue to revalue any guaranteed minimum pensions that people have built up.

For people retiring after 6 April 2016, the Government will no longer take account of inflation increases to guaranteed minimum pensions when uprating people’s new state pension. The changes mean any guaranteed minimum pensions accrued between 1978 and 1988 will not be uprated, and the scheme provider will uprate guaranteed minimum pensions built up between 1988 and 1997 only to a maximum of 3% each year.

The National Audit Office was contacted by people approaching retirement age who had concerns that the new arrangements for a single-tier state pension will leave them worse off than they would have been under the guaranteed minimum pension. People also raised concerns about the lack of notice. Where have we heard that before? The NAO investigated and concluded that there would be some winners and some losers under the new arrangements, depending on the amount of time that people were contracted into a scheme. The NAO also commented that, again, there had been a dearth of information for those new retirees.

The NAO suggested that those who lose under the new rules may be able to build up additional entitlement to the state pension. The report recommended that the Government, via the Department for Work and Pensions, improve their evidence and analysis of the impact of these reforms, and provide much clearer, targeted information to the public about how they will be affected. I would be very grateful if the Minister updated us on how her Department is responding to the findings of the NAO report.

The Social Security Benefits Up-rating Order 2017 provides for the annual uprating of social security entitlements excluded from the Government’s freeze to levels of social security enacted in the Welfare Reform and Work Act 2016. This year, the Secretary of State has decided to uprate social security entitlements by inflation under the consumer prices index measure, which is at 1%. As the Minister explained, that covers attendance allowance, carer’s allowance, disability living allowance, the personal independence payment, industrial injuries disablement benefit, bereavement benefits, incapacity benefit and severe disablement allowance, to name but a few. The Secretary of State has also decided to uprate the new state pension in accordance with the triple lock, and pension credit in line with earnings, at 2.4%.

We would not stand in the way of measures to increase the adequacy of the social security safety net provided by those benefits, especially not after seven years in which the system has been under considerable attack. We will therefore support the uprating order, but I must take this opportunity to expand on my real concerns about the inadequate uprating, particularly in the context of the freezing of many social security payments under last year’s Welfare Reform and Work Act, and the real cuts to some kinds of social security support, such as the employment and support allowance, the support for those in the work-related activity group, the universal credit work allowances, and the widow’s pension allowance, which we discussed yesterday, again to name just a few. This is an erosion of the adequacy of social protection for those who are often the most vulnerable in society.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

Surely the shadow Minister recognises that our support for those with long-term health conditions and disabilities has increased by £3 billion a year, to a record amount. That shows that we are directing money to the most vulnerable in society—rightly so.

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

I am grateful to the former Parliamentary Under-Secretary of State for Disabled People. Actually, we know that social security support will have declined by 2020.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

indicated dissent.

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

The former Minister shakes his head, but these are the Government’s own figures. If we look at spending across Europe as a percentage of GDP, we see that we are below the EU average when it comes to social security spending, just as we are on health spending.

Let us start with rising costs. Traditionally, the link between social security and inflation has ensured that some of the most vulnerable households in our country are not made worse off, year on year, by inflation in the cost of basic goods and services. The adequacy of social security has been heavily eroded over the past seven years. Research by the Joseph Rowntree Foundation demonstrates that the price of essentials has risen three times faster than wages over the past 10 years. When that is combined with the coalition’s initial 1% freeze on uprating, introduced in the Welfare Reform Act 2012, and the complete social security freeze put in place in last year’s Act, it means that low-income households have seen a significant deterioration in the adequacy of social security support since 2010.

Clearly, the historic drop in oil prices and subsequent slow-down in inflation of the price of household goods provided some respite to low-income households, but we know that the impact of the EU referendum on, for example, food and fuel prices is only just starting. People on low incomes spend a much larger proportion of their household budgets on the essential goods and services that have been so prone to inflation, so they are likely to have felt the effects of spiralling prices long after they have slowed down.

The costs of basic household items are beginning to rise again, with last month’s official figures showing inflation at a two-year high of 1.8%. I understand that the actual increase in food prices has been approximately 20%, but that has only just started to be passed on to consumers, so it is going to get worse. That puts real pressure on households that are trying to provide for their basic needs. Indeed, last week the Joseph Rowntree Foundation published a report showing that 19 million people are now struggling to make ends meet and get the basics required for a socially acceptable standard of living.

In the context I have set out, a 1% uprating to some social security entitlements is unlikely to do much for those who are struggling to get by. If the Prime Minister is really serious about helping those people, I urge that there be some reconsideration. As a matter of principle, it seems only fair that social security should rise in line with inflation and should apply to all entitlements, not just the ones that the Government have cherry-picked. Although the economic arguments for a freeze may once have been founded on the slow-down in the prices of the basics that every household needs, now that prices are predicted to rise by 10% by 2020 even that weak economic justification no longer stands up. That is before we even get to the social argument for protecting the incomes of the poorest people in our society, whom this Government have set out to punish over the past seven years.

In last year’s inquiry by the all-party group on health into the effect of the Welfare Reform and Work Act 2016 on child poverty and child health, the freeze on social security support payments was singled out as the most damaging. I remind Members that the Institute for Fiscal Studies estimates that child poverty will increase by around 1 million as a direct result of social security and tax changes, and that will impact on those children’s health and futures. I make an impassioned plea to the Government and the Minister: we are approaching April, when several other disability benefits will be cut; I urge the Government to reconsider.

I shall not detain the House any longer. I urge the Government to review the cap before price inflation begins to pick up again. If they really cared about those struggling to make ends meet, that is exactly what they would do. In the meantime, although we regret the limit on the groups who will benefit from the uprating, we will support the order.

Oral Answers to Questions

Justin Tomlinson Excerpts
Monday 20th February 2017

(7 years, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Penny Mordaunt Portrait Penny Mordaunt
- Hansard - - - Excerpts

We are looking at a range of things we can do in particular to help young people with learning disabilities, with autism and with mental health conditions. They need more options available to them, and they need more financial support in some of those areas. I am happy to look at what the hon. Lady suggests if she would like to write to me with evidence that these things are happening.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

Governments of all persuasions have tried and failed to shift the employability rate of those with learning disabilities from 6%. That rate is an absolute waste of the huge amounts of talent and enthusiasm that are out there. That is exactly why we brought forward plans to open up apprenticeships and to have a special disability apprenticeship scheme. Please would the Minister update the House on where we are with creating those opportunities?

Penny Mordaunt Portrait Penny Mordaunt
- Hansard - - - Excerpts

I thank my hon. Friend for drawing attention to the apprenticeship scheme. We wish to open up the opportunities such schemes bring to those with learning disabilities, and we are making good progress on that with the Department for Education, but we need to do other things as well. When we talk about people with learning disabilities, we are talking about a huge range of individuals. We have not done enough for those who are at the highest-need end of that spectrum, and I hope we will be able to do more shortly.

DWP Estate

Justin Tomlinson Excerpts
Wednesday 18th January 2017

(7 years, 10 months ago)

Westminster Hall
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

It is a pleasure to serve under your chairmanship again, Ms Dorries. I pay tribute to the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) for securing this debate on the future of the DWP estate and the opportunities that it presents us across the UK. Although I cannot pretend that I agree with everything she said, it was absolutely clear throughout—it was thoughtful, detailed and she had her residents’ best interests at heart. I hope that she gets suitable responses at the end of the debate from the Minister.

We are in a time of record employment in all areas and we are now very close to full structural employment. The reality is that those still seeking work are often the ones who need the most help. In that context, the announcement of the health and work Green Paper gives us a real opportunity to shape the future of the DWP estate so that it delivers on the core principle of a personalised and tailored approach. That is supported by employers, charities, organisations and Work programme providers. Therefore, this is a timely debate on the thrust of seizing those opportunities across the UK.

As a former Minister, I saw this at first hand when I visited the Shaw Trust Hackney community hub. It tries to do things differently. It is a one-stop-shop—a community hub—where jobseekers receive a bespoke service that is tailored to their specific needs to help them to overcome the barriers that are holding them back from finding employment. People can access not only direct support in looking for work, but counselling sessions and support from healthcare professionals. There has been a significant increase in performance, an increase in staff and customer satisfaction levels and better Work programme participant engagement.

Carol Monaghan Portrait Carol Monaghan (Glasgow North West) (SNP)
- Hansard - - - Excerpts

The key word in the hon. Gentleman’s speech is “community”. What we are talking about is the heart being ripped out of our communities.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

We have to deliver the best opportunities for all people who are looking for work. I am setting out what I believe to be the best way to equip those people who are trying to seize the opportunity of the growing economy. The Shaw Trust has provided me with a number of examples, including that of Kazeem, a 23-year-old, who arrived with very low confidence, experiencing depression and anxiety. With the bespoke support that he was given in that community hub, he was able to secure jobs at both Amazon and his local cinema. It was not just the Work programme providers, but employers such as ITV, Barclays and Michael Page that worked within that hub, which brought together those healthcare professionals and external employers as well as the Work programme providers. They made a huge difference, and there are many other examples.

Natalie McGarry Portrait Natalie McGarry (Glasgow East) (Ind)
- Hansard - - - Excerpts

Could the hon. Gentleman clarify, if he is talking about Kazeem getting a job with Amazon, whether Kazeem is from Glasgow, because Amazon is in Dunfermline, which is an hour away by bus?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

This was at the Hackney community hub run by the Shaw Trust, so it would have been at Amazon there. This debate is on the future of the DWP estate, which covers the whole of the UK, but I wish any Kazeem in the hon. Lady’s constituency the best of luck with finding work, whether at Amazon or somewhere else.

Understandably, a lot of people who arrive at a jobcentre lack confidence and are nervous. I have seen that at first hand when I have supported my own constituents. All too often, I am afraid, people are greeted by a security guard, who is probably the last person that somebody wishes to see when they are nervous. Some jobcentres are drab buildings from the ’60s, ’70s or ’80s. They do not celebrate success stories. There are no posters or videos that show people who have gone through the same challenges, faced and overcome them, come through at the other end and benefited from work. The staff are too often fixed to the facility. I suspect most other hon. Members who speak in this debate will highlight the challenge of getting to jobcentres; sometimes the solution is taking the jobcentre directly to people.

One of the most important parts of the universal credit roll-out is that, for the first time ever, people entering work will continue to get support. I hope that support will extend to those coming into the workplace. A lot of those people will be entering work on the national living wage, at the beginning of a career path. They will need support in work to secure additional hours and to get promotion when they lack the confidence to push themselves forward. We are all confident here—we all push ourselves forward and we all wish to seek to improve ourselves—but not everybody has that ability. That is an example of why we need to take people out of jobcentres.

When I visited an award-winning job coach, who was doing a great job, I saw another example of why a fixed location should not always be the solution. There was a young lad who was incredibly enthusiastic and desperate to do bar work, which we have a chronic shortage of people for in this country. I used to work in the industry; I remember thinking that, if I still worked in it, I would have snapped him up. His issue was that he was so confident that he would sometimes talk for too long in an interview and talk himself out of a job. Each time, the jobcentre staff would say, “Go off and apply for some more jobs”, but he would come back two weeks later and he had talked himself out of another job. All it needed was a job coach to go with him to an interview to explain to the employer, “When you have had enough of him talking, just say stop”. He would have secured work straight away. Yet the system meant that he kept returning at his inconvenience every two weeks on a continuous loop, when it just needed somebody to go with him to the interview.

Rightly, we have started piloting a small business employment scheme. Too many employers do not want to engage with their local jobcentre—I was the same when I ran a business for 10 years. We need to get jobcentre people going out to small and medium-sized businesses and saying, “What skills gaps do you have? Can we identify them?” The DWP has been running a small business pilot, in which staff go around retail, industrial and business parks and find people. It was so successful that the DWP ran out of people, either at the jobcentre or in the Work programme, to fill all those roles. That is exactly the sort of challenge that we need to take on. Again, it saves time for the claimant. We also need to organise job fairs.

In an ideal world, the jobcentre would be a hub. It would be a co-location, so that we are not sending claimants from building to building. We need health support. My point about being close to full structural employment is that the vast majority of people are now looking for work. More than 50% of people on employment and support allowance have a health condition or a disability; having instant health support on site will make a huge difference.

For some bizarre reason, rather than letting Work programme providers use our space, we send them off to find their own facilities, for which they secure a contract for a number of years. They spend a huge amount of time finding facilities, settling into them and getting to know them before having to renew the contract. It also gives claimants the inconvenience of having to go from the jobcentre to the Work programme provider and to health support, spending all their time travelling rather than looking for work. That is something that we need to address.

A jobcentre should be a hive of activity. It should have job fairs in the evenings and it should get in external employers, charities and mentors. That should all happen in a brightly coloured, constructive hub that supports people.

Margaret Ferrier Portrait Margaret Ferrier
- Hansard - - - Excerpts

The hon. Gentleman talks about hubs. Is he suggesting that there should no longer be any security staff in jobcentres?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

Absolutely not. Experienced organisations such as the Shaw Trust have dealt with that issue. Their security staff are also meeters and greeters. They have blurred those roles so that, instead of somebody in a uniform who will make people even more nervous, there is somebody who can act as a security person if they need to, which I am afraid they sometimes do, but who also make people welcome when they arrive. That is so important for people who have a number of barriers to overcome.

We need to be mindful of those with disabilities. Representatives of Action on Hearing Loss came to Parliament today to meet a number of MPs; it reminded me that it is often the hidden impairments that people do not take account of. I urge the Minister to consult with disabled people whenever we consider future facilities. We need to ensure not only that staff are trained but that, when we build facilities, we make them fully accessible. We can embrace technology such as the video relay service that DWP has trialled, the pilots for which were so successful that it will continue for evermore. We need to ensure that that technology is used in the rest of Government facilities and by those who provide contracts to them. I know from visiting SSE that the private sector has embraced that. It allows those who rely on British sign language to get instant access to facilities, rather than having to wait for an interpreter. It is an absolute must for all Government facilities to have hearing loops and for staff to be trained to use them. I could say much more on disabilities, but I am conscious of the time.

What I have said applies not just to jobcentres but to assessment centres for benefits such as the personal independence payment, which are often soulless places. There should be videos in the waiting areas to advertise other support offered to people who have a disability or a long-term health condition. The Government often do pilots, but people often do not know about them, so let us advertise them. Mental health is a really good example: there is cross-party support for improving support to people with mental health conditions and considerable additional money is being spent, but, all too often, those who most need that help simply do not know about it.

I know that the Minister is extremely constructive and engages regularly with Work programme providers, charities and people with experience. We have a real opportunity to build on the Green Paper. I look forward to her response.

DWP Policies and Low-income Households

Justin Tomlinson Excerpts
Tuesday 17th January 2017

(7 years, 10 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

It is a pleasure to follow the hon. Member for North Ayrshire and Arran (Patricia Gibson), with whom I had many dealings in my former role as a Minister, although I am somewhat surprised that she seems to advocate bringing back Margaret Thatcher for Scotland—we would probably cheer for that.

The Government are committed to making a difference to help people fulfil their potential. We have delivered record employment in all regions, with 2.7 million more people benefiting from work—8,100 in Swindon alone. There are 850,000 fewer households in which no one has worked and 500,000 fewer children in workless households.

We are seeing wages rise, on average, by 2.6%, which is well ahead of inflation, and by 6% for the lowest paid. That is in part thanks to the introduction—the right introduction—of the national living wage, which is helping 6 million people, and our lifting of the 4 million lowest earners out of paying any income tax through our personal tax allowance changes. That, in addition to the triple-lock pension and the extension of free childcare, is why income inequality has fallen, with 500,000 fewer people in absolute poverty, a record low.

It is crucial that we help people into work and, by backing business, we have delivered a growing economy that is creating opportunities. To fulfil those opportunities, we are investing in the future, with 1.4 million more children going to good or outstanding schools. And we are expanding the National Citizen Service so that those children can develop real life skills. There is a commitment to 3 million apprenticeships by the end of this Parliament. There is real, direct link with getting people into work.

For those seeking work today, the roll-out of universal credit is vital: it builds on the emphasis that work should always pay; it removes the 16-hour cliff edge, which is an absolute nightmare for people looking to move on from part-time work; and crucially, for the first time, claimants will have a named work coach who can help them to navigate childcare, training, support and the complicated benefits system that confuses so many. Having that person to help allows claimants 50% more time to find work. As we have seen, for every 100 people finding work through JSA 113 are finding work through the universal credit system. For the first time ever—this is the single most important reason why we need universal credit—those who go into work continue to get support. Often they are entering the lowest-paid jobs, but they will continue to be reviewed, supported and given that confidence to ask for additional hours and for promotion, to increase their wages and benefit from a growing economy.

This Government are on the side of hard-working people—on the side of the people trying to do the right thing. We believe in opportunity. Hard-working people want that opportunity to fulfil their potential and we are there for them.

Oral Answers to Questions

Justin Tomlinson Excerpts
Monday 9th January 2017

(7 years, 10 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Penny Mordaunt Portrait Penny Mordaunt
- Hansard - - - Excerpts

There are detailed improvement plans for both PIP and ESA. Another thing that is being considered is how assessments are recorded. If the hon. Lady wants to write to me with any specific suggestions, I will be very happy to look at them.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

The vast majority of successful appeals are due to additional late submitted evidence. What more can be done to access and share medical evidence between health professionals and assessors ahead of the appeals decision?

Penny Mordaunt Portrait Penny Mordaunt
- Hansard - - - Excerpts

My hon. Friend is absolutely right. He will know that the Department has carried out a number of pilots to look at being more lenient at the early stages of assessment to give people time to get that health care information in front of assessors. That move is paying dividends, and we hope that it will be rolled out.

Welfare Cap

Justin Tomlinson Excerpts
Monday 12th December 2016

(7 years, 11 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

It is a pleasure to contribute to this important debate. I pay tribute to the Minister, who showed that she had a genuinely deep understanding of the issues. She already has a record of being very willing to engage, particularly with charitable groups, which have a wealth of experience. We, as a Government, would do well to listen to them and allow them to help to shape future policies.

The debate is important because it focuses our minds. We have set a clear marker, and we have to justify any deviation from our original plans. It was interesting to listen to the last speech. The shadow Minister said that the Government have spent something like £130 billion more, but she then criticised us for not spending sufficient money in basically every area. The two things did not quite marry up. It is right to focus our minds, because under the previous Labour Government welfare was simply left to drift. The number of workless households doubled and an extra 470,000 people were abandoned to unemployment. Those are not just statistics; they represent real people who were in desperate need of the right support.

Through our strong economic growth—I am not sure what the shadow Minister was referring to, because it is still the strongest of any major developed economy—we have seen record employment. That is not just a south-east phenomenon; it has happened in every region of the country. I know that hon. Members are all desperate to know the situation in my constituency: 8,100 more people are in work since the general election, and that is even larger than the number of people who go to the county ground to watch the mighty Swindon Town. Unemployment is at an 11-year low.

We have introduced the national living wage, directly benefiting 2.75 million of our lowest earners. The income tax threshold rises year on year, taking 3.2 million people out of paying any income tax at all. While wages have grown, on average, about 2% this year, the wages of the lowest earners have risen by an average of 6%. That is in addition to the welcome extension of free childcare, which has created more opportunities for people to work.

The recent Green Paper announcement gives us a real opportunity to build on the progress that is being made, particularly if we look at the 590,000 more disabled people in work in the last three years. Now, 48% of disabled people are expected to be in work—up from 44% when we first came into office. We still have much further to go, but charitable groups and people who work in this area are encouraged by the fact that we are going in the right direction. The key thing is to deliver tailored individual support, because for those who are still looking for work, there are challenges. It is not as simple as learning how to create a CV and taking part in interview training. We are right to look at delivering more tailored support, to make further progress in delivering more people into work and thus reducing welfare spending.

We are right to identify that we have to do joined-up work with health. Many people who are now looking for work will also have to navigate health challenges, and they need support from the beginning. We are, rightly, introducing the small employer offer to engage proactively with employers on providing opportunities. People who play by the rules and work with the support on offer need the opportunity to go into work at the end of the process.

The announcement on disability apprentices and the increase in funding for Access to Work and universal credit, which has universal support across all parts of the House, reinforce the point that work should always pay and recognise a welfare system that is fair to those who receive it and to those who pay for it. Crucially, we are removing the 16-hour cliff-edge rule and providing, on average, 13% more time for the claimant to look. Most importantly, for me, for the first time ever a claimant has a named contact who can help them to navigate the process of not just looking for work, but dealing with all the different forms of benefit and the extra support they will need.

Crucially, when a claimant goes into work, the named contact will continue to provide support. Until now, we, as a society, would help people to get into work and wish them all the best, and that would be our last contact with them unless they came back to look for work again. Now we realise that those people, many of whom are taking their first step into work, may need support. They may lack confidence. If they attend work regularly and engage in the right way, their named coach can help them to try to increase their hours, increase their responsibility and earn more money in work.

Jim Shannon Portrait Jim Shannon
- Hansard - - - Excerpts

One of the things I would like to see in my constituency and across the whole of the United Kingdom is incentives for small and medium-sized businesses, which, because they are small, find it difficult to support disabled people in gaining employment. Does the hon. Gentleman agree that small and medium-sized businesses have so far not been encouraged to do just that?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I thank the hon. Gentleman for making that very important point. Large employers, with their well-resourced HR and highly educated personnel teams, are very good at making such changes—they are often small changes—to take full advantage of the disabled people who are looking to work and have the great skills and abilities needed to fill the existing skills gaps. Small and medium-sized businesses often do not have the necessary confidence and skills, and may not even be aware of the talent that is available.

The small employer pilot is so important because it is about going around industrial parks, business parks and shops to ask, “Where are your skills gaps? We will match them to the people who are looking for work.” We have had some really encouraging results from the pilots. I had a Disability Confident event in my constituency, and the Shaw Trust managed to place a further 22 people. We got small and medium-sized employers who had never thought about doing this to come forward and say, “These are our skills gaps. Please help find people for us.”

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
- Hansard - - - Excerpts

The hon. Gentleman rightly makes the point that the rate of employment among disabled people has risen, but the overall employment rate has risen as well, so the disability employment gap has not been reduced. Why has there not been any progress on that issue?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

The right hon. Gentleman has been very diligent on this issue, and he is determined to be proactive in supporting disabled people to have such an opportunity. The reality is that the growing economy is benefiting everyone, but perversely, the last time we had a recession, the disability gap actually shrank because non-disabled people came out of work at a quicker rate than the disabled people. If we had a recession, we would not celebrate the closing of the gap if people were also coming out of work.

Greater minds than mine will now have to decide what way to go. For what it is worth, I think the only thing that matters is that, as quickly as possible, more disabled people should have an opportunity for work year on year. We should be looking at ways to do that. When we came to office, the then Prime Minister said that we wanted to halve the disability employment gap, which meant employing about 1 million more disabled people. We should be trying to get to that target as quickly as possible, by looking at it annually. Stakeholders and charities are keen that we can demonstrate on an annual basis that we are making real, tangible progress. So far, with 590,000 more disabled people in work in the past three years, progress has been good, but there is still much more that needs to be done.

The final area I want to mention is disability benefits. As a Government, we now spend £3 billion more a year, which is welcome. That recognises the fact that under the old system of disability living allowance, only 16.5% of claimants accessed the highest rate of benefit, while under PIP, the figure is about 22.5%, because the system recognises hidden impairments better, particularly mental health ones. It is right that we are getting support to the most vulnerable people in society as quickly as we can.

However, I have an ask. Everybody in Parliament recognises that we have a growing challenge with mental health conditions in this country. Whether in relation to people in work, people trying to get into work or people in their everyday lives, about one in four people will have a mental health condition at some point. I suspect whoever was in government would, like our Government, look to committing additional funding to support people with mental health conditions. One of the challenges is that no one has quite resolved the best way to direct and provide such support. There are lots of different pilots, but we have a real opportunity in that the one way in which we are identifying people with mental health conditions is through the PIP benefit. However, we do not do anything with that information: we do not signpost people who have gone through the system and been identified as having a mental health condition to the traditional support offered by the NHS, local charities, support groups and so on. I am not looking to get people off PIP.

Jim Cunningham Portrait Mr Jim Cunningham (Coventry South) (Lab)
- Hansard - - - Excerpts

I am sorry that I came in late and missed the earlier part of the hon. Gentleman’s speech. To be quite frank with him, it is not so easy for people with mental health disabilities to get benefits. I now have a number of cases of people with mental health and other disabilities who have had their benefits stopped without any notice and without a by-your-leave.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

The overall picture is that about 20% of those with a mental health condition accessed the highest rate of benefit under DLA, but the figure is now in the region of 80% under PIP. The system is better, although there is still work to be done. We have fantastic organisations, such as Mind, that regularly engage with Ministers and provide proactive suggestions about how to make further improvements.

My point is that when we identify such people, we should then signpost them to the additional support that is available. Through our own casework, we know that people who have experienced a mental health condition often do not know where to turn. There is no guidebook to tell them where to go. If we identify somebody with a mental health condition, we have a duty to do our very best to work with organisations such as Mind to signpost them to the help available, so that they can once again share the same opportunities that all of us take for granted.

This is an important debate. It is right that we are increasing spending on the most vulnerable people in society. We are rightly helping to give people an opportunity to get into work. The statistics are showing that real people are benefiting from our strong economic growth. I urge the Government to keep pressing forward with the positive action we are taking.

ESA and Personal Independence Payments

Justin Tomlinson Excerpts
Wednesday 30th November 2016

(7 years, 12 months ago)

Westminster Hall
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

It is a pleasure to serve under your chairmanship, which seems almost a daily occurrence this week, Ms Dorries, given the Bill Committee I am also serving on. I pay tribute to the hon. Member for Lanark and Hamilton East (Angela Crawley). This is an important debate and a topic that regularly comes up, particularly in this room, which shows the importance of Westminster Hall. We are fortunate that we have a Minister who is very engaged and proactive when it comes to listening—particularly when the system is not quite working as it is intended to—and when it comes to acting and working with experienced charities, policymakers and all sorts to bring us all together. What we all want, regardless of which side of the House we sit on, is a fair system that supports the most vulnerable in society. It is a pleasure to follow the hon. Member for Strangford (Jim Shannon), who, during my time as a Minister, was really proactive and constructive on this issue. I had many good meetings with him to discuss specific issues and lessons we could learn from Northern Ireland, and to share best practice.

Two issues have been raised: PIP and ESA. I gently remind Scottish National party Members that Scotland could take responsibility, certainly for PIP. During my time as a Minister, I had a good relationship with my counterpart in the Scottish Parliament. He was aware that Scotland could take on that responsibility as and when it was ready.

Some 1.8 million people have already gone through the PIP process, which is considerably better than the old DLA system, and that is widely accepted by the vast majority of charities who represent people who have been through the system. Under DLA, only 16% of claimants got the highest rate of the benefit. Under PIP, it is 23.5%. It is far better at identifying hidden impairments and fluctuating health conditions. For example—this has been highlighted in the two previous speeches—under DLA, only 22% of those who had a mental health condition accessed the daily living component, yet under PIP, 66% did. For the higher rate of mobility, it was 9% under DLA; it is 24% under PIP.

The new system is far better and more streamlined. The assessors are there to help people to fill in the forms. The fundamental problem with DLA was that it was, in effect, self-diagnosis. People would fill in a very long, complicated form. A lot of people did themselves an injustice by not highlighting all the issues they faced, often because they took them for granted. For example, they might think, “I can’t sleep at night. That’s just the way it is”, but they did not then highlight that in their forms. The forms were complicated, so people would not necessarily know which were the right bits to put down.

Even worse, 70% of claimants on DLA had an indefinite award. It is very attractive for MPs to say, “We don’t want anybody ever to go through an assessment”, but the reality was that, under DLA, 70% did not. That sounds great, yet one in three claimants’ condition changes so significantly within 12 months that they should be on a different benefit. The vast majority of people who go through the system have a deteriorating condition, so if their condition has changed, it has probably changed for the worse and it is highly likely that they would therefore go from the lower rate to the higher rate of benefit.

That was the single difference that contributed to why, under DLA, only 16% of claimants got the highest rate, and 23.5% get it under PIP. There were people who, for 10 or 20 years or more, were on a benefit below that which they were entitled to. They were unaware that they could have had an opportunity to go up. It is right, therefore, that we assess people to ensure that they are given the correct benefit.

Now, common sense kicks in. If someone is on the highest rate of benefit, they have a deteriorating condition. Unless there is some miracle cure, they are likely only to be reassessed at the end of the 10-year period, and it would probably be very light touch. In effect, someone would phone and ask, “Has there been a miracle cure?” The answer would probably be no, and they might ask, “Can you provide the GP’s evidence that there has not been a miracle cure? That’s fine. You will go through.” It is those who are on the cusp of going from the lower benefit to the higher benefit who will have another assessment. The system is programmed to say, “This person nearly meets the highest rate of benefit. I suspect they will need it in nine months’ time.” It will automatically trigger a reminder to people that there is a reassessment, so they are not left languishing. I urge hon. Members to be careful in trying to stop people having an opportunity for an assessment.

In cash terms, in 2010, DLA delivered £12.7 billion of benefit support. The combined DLA and PIP is now at £16.6 billion. When the scheme was first launched, the time until assessment was terrible. We had lots of debates here on that. I was not the Minister then, but I was warned when I first went into the role that we would have almost weekly debates. Some people were waiting up to a year for their assessment. That was unacceptable. For nearly 18 months now, it has been in a settled state, taking about seven weeks for an assessment and 13 weeks for the whole process, end to end, which is well below the initial target of about 16 weeks. Again, charities and those with a huge amount of experience accept that the system is working well. The forms have been streamlined. They are still longer than we might like, but it is always a balancing act because, if we do not capture all the information, people could miss out on the benefit they need. I repeat that the assessors are there to help the claimant. The Government set the amount of money and the points that are required, but the assessors are there to ensure that the form is completed.

I have sat through assessments, and I have seen two different extremes. I saw the assessment of a practising nurse, and the assessment was super-quick. They used lots of very long words of which I had no understanding, and they were able to breeze through. At the other extreme, I saw an individual for whom English was not his first language. He had a mental health condition and was socially isolated. If he had self-diagnosed under DLA, he would not have qualified, but the assessor spent one hour and 10 minutes teasing out and piecing together the jigsaw to make sure that all the challenges he faced in his everyday life were accurately reflected. He would have ended up getting a higher benefit than he would have received under DLA.

I urge those who criticise the assessments to go and view one, which can be arranged. They will have their eyes opened, because too many people claim knowledge based on a film that is there to make money, rather than based on the real world. Frankly, that is an insult to the huge amount of hard work that these trained professionals do to help some of the most vulnerable people. The facts are there to compare DLA with PIP.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
- Hansard - - - Excerpts

Rather than commenting on the film, which is a dramatic portrayal, will the hon. Gentleman comment on the “Dispatches” programme? That was not fictional; it was an actual portrayal of the assessment process that people go through.

Nadine Dorries Portrait Nadine Dorries (in the Chair)
- Hansard - - - Excerpts

Mr Tomlinson, the same applies to you as applied to Mr Shannon.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I will not be long. I am glad that the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) intervened. I have a feeling that she will not let me intervene on her later, so I can link this in nicely. The “Dispatches” programme showed an isolated incident that was totally unacceptable. The individual was moved, and rightly so. That is why we have external inspectors. Remember that we are talking about 1.8 million people, and I urge her to take up my invitation to go and view an assessment. Hearsay is not the right way to hold Governments to account. This is so important that people in positions of responsibility need to invest some time in going to see what is actually happening.

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

That is patronising.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

It is not patronising. This is an important subject.

There have been further improvements, including the removal of the 28-day rule for terminally ill people. That cross-party campaign has made a huge difference to those who are terminally ill, and it is a welcome measure. There is ongoing training, and I would like to see automatic recordings of all assessments, which would help the appeals process. That requires a change in the contract, which I understand is the intention.

It is also right that assessors now encourage people to bring somebody with them into the assessment, which is particularly helpful for people who are not necessarily articulate, for whom English is not their first language or who would not have the confidence to display all their challenges.

As the hon. Member for Lanark and Hamilton East said, the ESA and PIP assessments are not a million miles apart. I have too often heard of cases where someone has done one assessment one month and the other assessment the next month. In respect of the Green Paper, many organisations will lobby for some serious data sharing.

In conclusion, because I have focused on PIP, I will briefly address ESA. The Green Paper is a wonderful opportunity, as the charity Scope said, because disabled people need “expert, tailored employment support”. We need to focus on what individuals can do, rather than on what they cannot do. It is important to provide tailored support, to recognise that people have fluctuating health conditions and to utilise the best parts of the universal credit system to allow for flexibility and common sense, particularly in relation to voluntary work that builds confidence to get people back into work. We need to provide ongoing support, through a specific named coach, when people go into work for the first time. I will continue to pitch, as a matter of importance, the small employer pilot, which was so successful that it should be rolled out across the rest of the country as quickly as possible. We need to unleash the opportunity for disabled apprentices. Everyone agrees it is a great thing, and we have signed it off. We now need to see it making a real difference, particularly for those with a learning disability.

--- Later in debate ---
Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I am sure the hon. Lady will welcome the fact that an extra £3 billion is now being spent to support those on DLA and PIP compared with DLA alone in 2010, and the fact that 23.5% are on the highest rate compared with 16% on DLA. That is good news.

Patricia Gibson Portrait Patricia Gibson
- Hansard - - - Excerpts

The hon. Gentleman would do well to remember the fact that, according to OBR figures, although more money is being spent, that is down to the fact that demand has increased, so we should treat those figures with a little more caution.

The fact that the system is flawed is demonstrated by the fact that 65% of appeal decisions found in favour of the claimants, which means that that 65% initially had their application turned down, causing untold stress and anxiety about how they would cope in future. The hon. Gentleman spoke of work capability assessments as an opportunity. Well, I am afraid that my constituents in North Ayrshire and Arran did not see this process as an opportunity. Perhaps the constituents of North Swindon found it so, but certainly in my part of the world, that was not the case.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

To be clear, I said PIP assessments were an opportunity; not the work capability assessments for ESA, which need to be reformed.

Patricia Gibson Portrait Patricia Gibson
- Hansard - - - Excerpts

Surrounded by such a wealth of opportunity, it is hard to keep up. Nothing in the system that my constituents experience is seen as an opportunity. It is seen as extremely negative, intimidating and humiliating. When the hon. Gentleman talked about the assessments, perhaps I misunderstood him, but if I have I certainly am not alone. One might think that these assessments always resulted in somebody’s entitlement or benefit being increased, but I can assure him that in my constituency that is almost never the case.

The hon. Gentleman, perhaps in the interests of trying to be helpful to the Chamber, talked about how we should go and see an assessment taking place. Perhaps this is just me—I have not done a survey or anything—but these assessments are not a spectator sport. We are talking about people’s lives. The people who go through them very often find them humiliating and damaging. If I were to go through one of those assessments, the last thing I would want is an audience. Perhaps I might want a member of my family, or a close friend, but I certainly would not want my MP, who would in effect be a stranger, although their name might be well known to me. I certainly would not want the occasion to become a spectator sport. We must be careful about MPs filling the galleries when people are having their lives exposed and deconstructed by strangers.

This is a debate about social justice. Employment and support allowance is a form of financial support for people with life-limiting conditions whose ability to live a fully satisfying life, something we would all hope for, is effectively removed. That should be remembered during debates such as this one—and during the assessments. The hon. Member for North Swindon has informed the Chamber that the assessors are there to help, and I am sure that they think so too, but claimants feel stressed. They are confronted by assessors who are, by definition, strangers and who have little or no knowledge of their condition. We have all heard stories: for those who have not heard them, Parkinson’s UK can keep them going all day. There are stories, for example, of people with Parkinson’s being asked by the work capability assessor, “How long are you likely to have Parkinson’s for?”

We know that the criteria for work capability assessment are flawed and that people whose conditions fluctuate are always at risk of what might, strangely—as it is all relative—be called a good day. Such things are not taken into account by the work capability assessment, and nor is the impact of pain and fatigue, or the degenerative nature of conditions such as Parkinson’s. As a result, too many employment and support allowance applicants are placed in the work-related activity group, instead of the much more appropriate support group, which recognises that the claimant is simply not well enough to work. I reassure the hon. Member for North Swindon that I know that the Government have reversed the need for repeated work capability assessments for the chronically ill—that is welcome, but it simply does not go far enough. It is a matter of great concern to all fair-minded people that from April 2017 people placed in the employment support work-related activity group will receive £30 a week less than someone in the same situation today. That makes the failure of the system more alarming.

Flawed criteria are a particular difficulty for people with conditions such as Parkinson’s in receipt of disability living allowance—I could mention a range of conditions but time forbids it—when they are being assessed for PIP. Under DLA, if a person could walk no more than 50 metres they would be eligible for support. For PIP that distance has arbitrarily—randomly, it seems—been reduced to 20 metres. That is such a short distance that it is not a useful or helpful estimate of a person’s mobility. Given the fluctuating nature of some conditions and the failure of the process to register such fluctuations, many people are losing their Motability vehicles, on which they rely heavily.

The hon. Member for North Swindon will be interested to know that recent investigations found that under DLA 82% of people with Parkinson’s received the full mobility payment, whereas under PIP that has dropped to 40%. That is a massive drop, and those people lose their vehicles within 28 days of an assessment decision being made against them. I do not see how anyone can come to this Chamber and say that that is acceptable. Those people are being isolated in their own homes and effectively punished for their illness. Their dependence on family members increases.

Patricia Gibson Portrait Patricia Gibson
- Hansard - - - Excerpts

Yes, Ms Dorries.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

Will the hon. Lady give way?

Patricia Gibson Portrait Patricia Gibson
- Hansard - - - Excerpts

I am being pressed by the Chair to conclude my remarks.

Everyone welcomes the Green Paper. What we do not welcome is the headlong rush to cuts before there can be proper analysis, which could be used to correct the system. We need an evidence-based and compassionate approach. Frankly, I do not see that. We should all want the same thing: we should all want to support people with disabilities into work, and to support those who cannot work. We need to make sure that we do that properly, and I urge the Minister to reflect on that and on all the suggestions made today.

Oral Answers to Questions

Justin Tomlinson Excerpts
Monday 21st November 2016

(8 years ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
David Mackintosh Portrait David Mackintosh (Northampton South) (Con)
- Hansard - - - Excerpts

3. What steps the Government are taking to ensure that employers are supported in recruiting and retaining disabled people.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

15. What steps the Government are taking to ensure that employers are supported in recruiting and retaining disabled people.

David Amess Portrait Sir David Amess (Southend West) (Con)
- Hansard - - - Excerpts

18. What steps the Government are taking to ensure that employers are supported in recruiting and retaining disabled people.

--- Later in debate ---
Penny Mordaunt Portrait Penny Mordaunt
- Hansard - - - Excerpts

A lot of our bespoke expertise lies in the partner organisations we work with. If my hon. Friend contacts Sarah Holtham, who is the work coach at the Northampton jobcentre, she will facilitate a meeting with Deafconnect for him and his constituent. It also does a huge amount of work getting placements in the financial services sector, in particular with Nationwide, whose headquarters are in his constituency.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

Following numerous successful Disability Confident events, we launched the small employer offer directly to engage, encourage and signpost new employers to take advantage of this often overlooked wealth of talent. Will the Minister update the House on the progress of this vital pilot?

Penny Mordaunt Portrait Penny Mordaunt
- Hansard - - - Excerpts

As part of the small employer offer, we will introduce over 100 employment advisers to small employers, and the feedback we have had is that that is very welcome—in particular, for organisations that do not have their own human resources departments.

--- Later in debate ---
Penny Mordaunt Portrait Penny Mordaunt
- Hansard - - - Excerpts

I do not know whether this is an issue that the hon. Lady has raised before. I am sorry if I am not aware of the previous correspondence that she has had with the Department. I would be happy to meet her to discuss that.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

PIP continues to lead the way in identifying and supporting those with mental health conditions to a significantly greater degree than DLA, so what more can be done to signpost the people identified to additional support provided by the NHS, charities or the Government pilot?

Employment and Support Allowance and Universal Credit

Justin Tomlinson Excerpts
Thursday 17th November 2016

(8 years ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Peter Aldous Portrait Peter Aldous
- Hansard - - - Excerpts

We have the full version being rolled out at the moment.

I am concerned about research showing that people in areas now on universal credit will, as a result of these changes, be significantly worse off than their neighbours and those in other regions who remain within the tax credit regime. Will the Minister address these concerns? Why should the people I represent in Waveney, and indeed those in other areas where universal credit has been rolled out, be unfairly treated in this way? It is a really unfair postcode lottery.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

There is also early evidence that those on universal credit are 13% more likely to go into work, and are getting in-work support to help them progress. They will often enter low-paid work and continue to progress, so in some cases the lottery is very beneficial to my hon. Friend’s residents.

Peter Aldous Portrait Peter Aldous
- Hansard - - - Excerpts

I thank my hon. Friend. We are yet to receive those benefits in my area, where universal credit was rolled out only on 25 May, but I am happy to look at that information.

The Government have the time to get this right. They should use the autumn statement to address these concerns, consider targeting support at those who need it most, and pause and consult. If they do those three things, they can get it right.

--- Later in debate ---
Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
- Hansard - -

It is a pleasure to speak in this debate, although I have a feeling of déjà vu, as I was talking about this subject only yesterday—no wonder “Groundhog Day” is one of my favourite films. I pay tribute to the hon. Member for Airdrie and Shotts (Neil Gray) for his proactive work in this area. When I was a Minister, I enjoyed engaging with him on a number of occasions. He always brought forward real experience and practical suggestions to challenge the Government and hold them to account in this important area. It is also good to see so many Members in the Chamber, on both sides of the House, to engage in this debate—it is a credit to them. That is important, because the Department has excellent Ministers who genuinely do listen, engage, act and influence the direction of policy.

I wish briefly to talk about the background to the current position. Yesterday I talked a lot about universal credit and less about the ESA WRAG, but today I will flip that around. The Government have introduced the national living wage, which has helped 2.75 million of our lowest earners, and we hope that it will rise to more than £9 an hour by 2020. We have increased the personal allowance from £6,495 to £11,000, taking the lowest 3.2 million earners out of paying any income tax. This country has the strongest economic growth of any developed economy, which is delivering record employment, with yesterday’s figures showing another 461,000 people entering work. We have also seen 590,000 more disabled people in work in the past three years—an increase of about 4%—although there is still much further to go.

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

I mentioned this yesterday, but let me remind the hon. Gentleman of the press release issued in his name by the Department for Work and Pensions on 29 June last year, which stated:

“The Government…aims to halve the gap between the disabled employment rate and the overall employment rate by 2020.”

Is he dismayed, as I am, that that commitment—he made the promise in good faith, I am sure—to a 2020 deadline has been abandoned by his successor?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I predicted that that intervention was coming, and it is an important point. The pledge was incredibly popular with stakeholders and focused officials’ minds. When I was a Minister, a lot of my work involved lobbying other Departments, so it was helpful when I was able to namecheck the then Prime Minister, as this was his personal pledge. I do not actually recall that press release, as my understanding was that we had not set the date because that was going to be determined in the Green Paper. Personally, I wanted to see significant progress year on year.

One problem with just adopting the approach in the pledge is that the number of disabled people in work could remain static yet in a recession the overall number of people in work could fall, meaning that the gap would close without any more disabled people benefiting. I wanted to set a target such as having 1 million more people in work by a certain date, which would mean that we would know that 1 million more disabled people had benefited. We were due to consult on that as part of the Green Paper process when I was in my ministerial role.

Kate Green Portrait Kate Green (Stretford and Urmston) (Lab)
- Hansard - - - Excerpts

I agree with the hon. Gentleman that a single target can be a crude measure, so would it not have been sensible to have had two targets: to halve the disability employment gap by 2020, as the Department appeared to be committed to doing last year; and a numerical target? Does he think the new ministerial team might consider that suggestion?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I think that is twice as good as the current plans—it is a brilliant suggestion. All these targets focus minds, and this one made a difference in terms of pushing. That was a lot of what we had to do. We did not necessarily have all the levers ourselves, so having that target to focus minds makes a significant difference.

Wages have increased by 2.3% this year against the backdrop of an inflation rate of 0.9%—that fell again this week, helping people. We have also extended childcare. Let me briefly talk about universal credit, which will make a significant difference.

George Kerevan Portrait George Kerevan (East Lothian) (SNP)
- Hansard - - - Excerpts

When the hon. Gentleman talks about rising incomes and wages, the implication is that more people in work will benefit, but as a result of the collapse in the value of sterling, the Bank of England predicts a 10% fall in real incomes over the next three years.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

We are awash with predictions from experts, as we have been since the middle of the referendum campaign. So-called experts predicted that inflation would spike this week, but we saw it fall. We will see what happens. Good Governments keep a close eye on these things and act accordingly.

We are still some way away from the full roll-out of universal credit, but our aspiration and the difference that this will make for people are significant, because through universal credit people will have a named work coach. The hon. Members for Gateshead (Ian Mearns) and for Glasgow North East (Anne McLaughlin) highlighted some examples of people’s experiences, and we have all encountered difficult cases in which the system has failed. One key advantage of the full roll-out of universal credit is that every claimant will have a personal, named coach who will stay with them. The job of the coach is not only to help people to get into work, but to navigate all the challenges they face when dealing with complex benefits. If the system does not support claimants in the way it should, the coach will help them to address that. People will not have to rely on going to their Member of Parliament, councillors or local citizens advice bureau, and that will make a significant difference.

Ian Mearns Portrait Ian Mearns
- Hansard - - - Excerpts

I understand the point that the hon. Gentleman makes, but my constituent was unable to get any backdating and was left destitute. The Department’s behaviour was outrageous, and I am sorry to say that all I can see is a cost-cutting exercise.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I do not recognise this as a cost-cutting exercise, but without knowing all the details, it is difficult to comment. I hope that the ministerial team will look at this, meet the hon. Gentleman and find out whether there are lessons to be learned.

These coaches will also signpost where training is available to enhance people’s hopes of getting into work or progressing in work. Obviously, the traditional job-searching work will be done and, for the first time, these coaches will also provide support for people as they go into work. A lot of people coming off benefits will go into relatively or very low-paid work and will not necessarily have the confidence or skills to push themselves forward to get roles with higher wages. For the first time, these coaches will keep in touch with those people and say, for example, “You have turned up for work for three months; why don’t you now try to go for a supervisor role or increase your hours?”

Crucially, for people with fluctuating health conditions the benefit is in real time, so if people can work fewer hours one week than another, they will have a minimum income. The process goes from there, so if they do more hours, the income increases. This system removes the 16-hour cliff edge that was preventing people from benefiting.

Today’s debate is predominantly about ESA WRAG. Before I comment about that, I pay tribute, as I did yesterday, to the fantastic work of the staff in jobcentres, support groups such the Shaw Trust and Pluss, and the many local charities and national charities that provide support. They do a huge amount of brilliant work and often go unrecognised. ESA has had so many reviews and changes, yet still only 1% of people come off the benefit every month. That cannot be described as doing anything other than failing the people who are on it. A number of speakers highlighted the fact that people are typically on ESA for two years, whereas someone on JSA would expect to get into work much sooner. Bizarrely, people on JSA, who are closer to the jobs market, would get 710 minutes of professional support, whereas those on ESA, who are recognised as further away from the jobs market, would get only 105 minutes of that support. Some of the changes that are being introduced will equalise the position. It is crucial that we identify what people can do, not what they cannot do.

We are all different, and we all have challenges in our lives. Some people have more challenges than others, but most have an opportunity with the right support. The Green Paper is welcome, because it highlights the significance of that “can do” approach. We have to offer personalised and tailored support to give everybody an opportunity. Crucially, the major charities, including Scope, Leonard Cheshire Disability, the Royal National Institute of Blind People, the National Autistic Society and Mencap, as well as many other charities, right down to the smaller ones, will be contributing to the development and delivery of this policy. They will make a big difference.

Heidi Allen Portrait Heidi Allen
- Hansard - - - Excerpts

I agree that those charities are very welcoming of the new Green Paper, but does my hon. Friend agree that they are still consistent in saying with one voice that the cuts to the ESA WRAG are wrong, and that they are not replaced in the Green Paper?

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

When I was a Minister, I was challenged on a whole host of issues, and that is what the charities are there to do. I feel that the extra support makes this approach worthwhile because only 1% of people are coming off that benefit. When people on ESA are surveyed, and when we talk to them in our constituencies, we find that the overwhelming majority are desperate to be given an opportunity to work.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

I am running out of time, so I will try to wrap up. I have only two minutes left.

The Green Paper includes proposals for more personalised and tailored support, as well as quicker assessments. That is particularly important because 50% of people on ESA have a mental health condition, but typically wait nine months for an assessment. The Green Paper will address that by making sure that people are assessed quickly and given support before they navigate often difficult personal challenges when they take the step back into work.

There will be a place on the work and health programme or Work Choice for those who wish to take it—it is a voluntary opportunity. There will be additional places on the very popular specialist employment support programme. There will be job clubs run by peers—people with disabilities who have gone through the system and overcome their fear at the thought of going back into the process. That is often a big fear for people who have been out of work for a long time. There will be 200 new community partners; again, this is about utilising disability expertise. There will be increased access to work for young people with mental health conditions. There are further opportunities through the Disability Confident campaign.

My personal favourite, which I continue to champion, is the small employer offer. Time and time again, employers say to us, “We have skills gaps and we are struggling to find people to fill these roles,” but they have never thought to take on somebody with a disability because they lack the confidence to do so and do not realise that a huge amount of support is provided to help people to come into the workplace. Businesses that take that step benefit, more often than not, and I say that as a former employer who employed disabled people and benefited from doing so. I hope that the current small employer pilot will be expanded and will become a nationwide offer. It is making a significant difference.

The Chancellor was right to increase significantly the funding for Access to Work. On the fit for work scheme, we need to ensure that we provide advice at the beginning of a potential problem for people in work, not just at four weeks, because it is so much easier to keep people in work with suitable support than it is to get them back into work after they have dropped out. We have a fantastic ministerial team who are engaging with charities, with all their experience and knowledge, and the Green Paper represents a real opportunity.

--- Later in debate ---
Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
- Hansard - - - Excerpts

I am delighted to speak in this debate, but regret—I think that we would all agree about this—that it is so necessary. I thank my hon. Friend the Member for Airdrie and Shotts (Neil Gray) for securing the debate.

As we have just heard, the previous Prime Minister, David Cameron, vowed to halve the disability employment gap. At the end of 2015, the employment rate among those living with a disability stood at 46.7% compared with 80.3% for people not living with a disability. According to the Work and Pensions Committee in March 2016, when it launched its inquiry into the previous Prime Minister’s commitment, halving that gap would require getting an additional 1.2 million disabled people into the workplace. However, plans to reduce the employment and support allowance work-related activity component and the corresponding limited capability for work component in universal credit in April 2017 appear to fly in the face of that worthy target set by the previous Prime Minister.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

Does the hon. Lady welcome the fact that in the past three years alone, an extra 590,000 disabled people have gone into work? The employment rate for disabled people is now 48%, which is up 4% from when we first came to power?

Patricia Gibson Portrait Patricia Gibson
- Hansard - - - Excerpts

I welcome all progress in this area, but that does not detract from the commitment made by the previous Prime Minister, which I believe everyone would have supported. Progress is always to be welcomed, but we have not gone far enough and we should still work towards that commitment.

In practical terms, £30 each week will be cut from those with long-term health conditions or disabilities, and as we have repeatedly heard today, this will happen before the work and health programme Green Paper can be considered or implemented. The fact is that reducing sick and disabled people’s financial support to jobseekers’ levels is counter-productive since those in the ESA WRAG will have very low incomes for a long time, because disabled people are much more likely to be out of work for longer. It is extremely important that the Government proceed by using an evidence-based approach, instead of rushing into cuts that will have the opposite outcome from what they and everyone else want.

The Government say that they want to help disabled people into work, but under the limited capability for work element of universal credit, disabled people in work and those looking for work will be negatively affected. Those in work but on low pay will be particularly hard hit. How on earth can that be consistent with the aim of halving the disability employment gap? The truth is that helping disabled people into work means supporting them, and doing so effectively. The proposed measures will push them further and further away from the workplace. Scope claims that a loss of financial support for disabled people will have a detrimental impact on their health and wellbeing, pushing them further away from the workplace. It will also strip away necessary support from those already in work, making it harder for them to retain their place in the world of work.

Some 492,180 disabled people across the UK are reliant—I repeat the word “reliant”, because that is so important—on ESA WRAG. According to the third sector, these people will struggle to live independently and will be pushed further and further into isolation, poverty, hardship and debt. Research by Scope discovered that 49% of disabled people use credit cards or loans to pay for everyday essential items such as clothes or food.

We should spare a thought today for people who are living with conditions such as Parkinson’s. We know that those with fluctuating conditions are not well served when they are placed in the WRAG, because the work capability assessment does not and cannot accurately capture the reality of living with such a condition. That means that ESA claimants with Parkinson’s will be placed in the impossible and demoralising position of being told they are fit for work or should be getting back to work. They are often placed in the WRAG rather than the more appropriate support group.

--- Later in debate ---
George Kerevan Portrait George Kerevan
- Hansard - - - Excerpts

I am happy to accept that optimistic approach. The hon. Gentleman will possibly have more influence on the Government than I will, and the sooner that happens, the better. In the spirit of this debate, I am trying to be as reasonable as possible in giving the Minister information to take back to the Government.

The most frightening statistic that I have read in recent months relates to the rise in the number of people with disabilities in the adult workforce. The figure is something like 400,000 since 2013, so this is not a diminishing issue; it is a social problem that is rising. I suspect that an awful lot, if not the majority, of those citizens with disabilities are suffering from mental health issues. That is precisely the group that comes in and out of employment. It is the strategic group for which we have to craft a benefits system that will help them through the process and give them the support and encouragement they need to get back into work permanently. This is not just another component of the welfare system; it is a key component for dealing with a growing problem, so again we have to ask the Government to look at the issue and not just to make short-term changes. They need to get the Green Paper through and find a permanent solution.

Justin Tomlinson Portrait Justin Tomlinson
- Hansard - -

The hon. Gentleman is making a powerful point. He is right to highlight the fact that 50% of the people who go through ESA will have a mental health condition. We should recognise the fact that society is getting better at recognising those with disabilities, which is why we are seeing an increase in the numbers. We also have an ageing population, and 81% of disabilities are related to age.

George Kerevan Portrait George Kerevan
- Hansard - - - Excerpts

I could not agree more with the hon. Gentleman, who made an impassioned and elegant speech earlier. Indeed, I am happy to commend the former Prime Minister, who made an impassioned effort to direct the Government to deal with mental health issues. In the light of that, let us not rush into tinkering with the ESA work-related activity component. Let us leave aside these short-term changes until we get a permanent solution on which we can all agree.

The hon. Member for Waveney (Peter Aldous), who is no longer in his place, spoke earlier in the debate. Like me, he represents a constituency in which the full-service roll-out of universal credit has begun. It began in my constituency in March 2016. One of the problems that would emerge if we were to proceed with the ESA work-related activity component cuts, along with ending the eligibility of new claimants under the universal credit regime after April 2017, is that that would create a two-tier system.

Leaving aside the philosophical issues about universal credit, I just want to point out to the Minister that one of the problems is that the full-service roll-out is not working well. This has become the dominant issue in my postbag, with which my constituency office has to deal. With the best will in the world, Jobcentre Plus staff are trying to tackle the problems with the full-service roll-out, but we have had computer problems including constant software bugs and changes. The inability to adjust to the new system has meant that the citizens advice bureaux and the libraries, which are run by the local authority, have been deluged with requests for support by people who are trying to readjust to the universal credit system. Given that the roll-out is not going smoothly, any suggestion that we can suddenly reduce ESA WRAG to the JSA level in April and that it will go through smoothly is wrong. I want to put it on the record that those of us—this has nothing to do with party or opposition to the Government—who are dealing with the full service roll-out know that it is not going well. We should not be changing the way the system works until we know that it is working in a positive way.

There is no one in this House who would not want to see more people with disabilities get back into the workplace, but there is a specific local problem. All the statistics show that we are actually as near to full employment as we are ever going to get. The hon. Member for North Swindon (Justin Tomlinson) was rather scathing about experts and statistics, but they are all that we have to work with. The latest figures from the November Bank of England inflation report suggest that the jobs market will remain tight over the next three years, so the Government must bear that in mind when considering the prospect of getting large numbers of people with disabilities back into the labour market. If we are to get more people back into work, we will have to work with employers and look much more closely at their response.

If there is any lurking suspicion in Government—I am not saying that there is—that reducing ESA WRAG will force more people back into the labour market, I can tell them that that will not work. If that was ever the approach—I am not saying that it was—not only would it be callous, but it would be ineffective. We have to work with employers to put systems in place to enable and prepare them to take more people with disabilities into the labour market. That is a longer-term problem, which will be not be resolved in April by cutting ESA WRAG.

My final plea to the Minister—she has listened attentively and I thank her for that—is to go back to the Treasury and the DWP and rethink the change. It is only a week until the autumn statement, and those of us with any knowledge about how the Treasury works will know that the midnight oil will be burned this weekend as the final changes are made to whatever will be announced next week. There is still time to rethink these cuts.