DWP: Performance

Kate Green Excerpts

Monday 30th June 2014 Commons Chamber

[Kate Green (Stretford and Urmston) (Lab)]

Let us be clear: this is not a debate about the philosophy of welfare reform. It is a debate about the way in which it is delivered, and about the service that our constituents receive. Today we have presented a catalogue of anxiety, chaos and waste: a catalogue of extra cost to the taxpayer, huge pressures on DWP staff, and inappropriate and hostile language used about benefits recipients—never challenged by Ministers, but hurtful and offensive, as we heard from, among others, my hon. Friends the Members for North East Derbyshire (Natascha Engel) and for Darlington (Jenny Chapman).

We have heard about anxiety, fear and hardship among those who rely on social security, namely most of us at some point in our lives. The Secretary of State, who is responsible for this calamity, is in denial, while his Department is on the brink of meltdown. I agree with my hon. Friend the Member for Aberdeen South (Dame Anne Begg), the Chair of the Select Committee: the Department has bitten off more than it can chew, and we are all paying the price.

This is what we have heard about today. Universal credit, the Government’s flagship policy, was intended to reach 7.7 million households by 2017, but in April it was reaching fewer than 6,000 people. It will take 1,052 years to roll out fully at this rate, and the cost to the taxpayer is rising. The Secretary of State will be concerned about that. The National Audit Office has drawn attention to the write-off of assets worth £40 million which have never been used, and a further £91 million of assets that will last for only five years. [Interruption.] The Secretary of State says that the NAO is talking nonsense. I am surprised that he is prepared to put that statement on record tonight.

The Department is having to invest in two system solutions in parallel. As the Select Committee has pointed out, we have no idea how or when the final system solution will be achieved, or how much it will cost. We still have no idea about the treatment of passported benefits following the introduction of universal credit. My right hon. Friend the Member for East Ham (Stephen Timms) asked about that in 2011, but we still do not know about the treatment of free school meals. There is no clarity about the scale, the cost, or who will receive them. We also have no idea of how or when housing benefit will migrate. The local support services framework, which the Department itself has said is as important as universal credit, is not in place, and is not yet even being piloted in universal credit areas. We do not know when that framework will arrive.

This is a tale of what my right hon. Friend the Member for Stirling (Mrs McGuire) rightly described as cumulative disaster, but Ministers have been determined to deny it. That is why we are demanding that the Government publish the risk register and other documentation relating to the delivery of universal credit, and the courts agree with us.

Then there is the failing Work programme—with overpayments to providers totalling £11 million, and getting just 7% of employment and support allowance claimants into work—coupled with the crisis of confidence in the work capability assessment that has been presided over by this Government. We have been told this evening, and the Minister told the Work and Pensions Committee a couple of weeks ago, that 700,000 cases, or just under, are now outstanding and awaiting WCAs, and 294,000 of those are former incapacity benefit recipients. As my hon. Friend the Member for Edinburgh East (Sheila Gilmore) and others pointed out, that backlog of nearly 700,000 cases was not created by the Labour Government. It is a product of the mass migration of IB claimants by this Government, despite the warnings that we gave them that the system could not, and should not, bear that.

Meanwhile, nearly half the cases that are appealed are successful; reassessments have been halted altogether for two years; according to a leaked internal document, decisions are taking nine months; and I tell those who have said that the benefit, or annually managed expenditure, cap is one of the great achievements of this Government—the hon. Member for Spelthorne (Kwasi Kwarteng) will be interested to know this—that it has resulted in an extra £800 million of costs since December on ESA and there will be an extra £13 billion by 2018-19, meaning the AME cap will be breached.

[Kwasi Kwarteng]

All I was observing in my speech was that it is the single most popular Government policy since the war according to opinion polls.

[Kate Green]

I think the hon. Gentleman has got two policies confused, which shows how on the ball he is. I am talking about the AME cap, not the £26,000 benefit cap—the AME cap that this Government are introducing and which is now, even before it is in place, going to be breached.

Government Members rightly pointed to trends in employment, and it is good to see more people in work, but too often they are working for poverty pay. I have to say to the right hon. Member for Basingstoke (Maria Miller) and others that Labour was never content to abandon people to a life on benefits. That is why we introduced the successful new deals that increased lone-parent employment by 15%. It is why we introduced the future jobs fund which, far from being a failure, was extremely good at getting young people into work and keeping them in work when the programme came to an end. We introduced tax credits that made work pay. Making work pay is not an invention of this Government; it was done under Labour first.

PIP is another tale of disaster—it was not piloted, there were misleading statements on Atos’s bids, and there were long delays in decisions. Like others, I have had constituents waiting for an assessment since last October—in one of those cases, my constituent had it only last week. There are huge backlogs already, which at the current rate of progress will take 42 years to clear. To put it another way, the Minister will need to increase the number of assessments from 7,000 a month to 73,000 a month immediately if he is to get the programme back on track, and this is also wasting taxpayer money. Each decision costs £1,500 for a benefit which for many is only worth £1,120. The NAO has said it does not represent value for money and the £3 billion savings are likely to be wiped out by the costs.

We know the bedroom tax is a disaster. Just 6% of those affected have moved. The Joseph Rowntree Foundation points out that savings are £115 million lower than they should be, and many households, including two thirds with a disabled family member, and more than 60,000 carers face hardship and fear.

[Robert Halfon]

Will the hon. Lady give way?

[Kate Green]

No, I will not.

The Secretary of State said the Child Support Agency was a success. The NAO is rather more cautious. It says it has not really been tested yet and will not be until charging is introduced. In the meantime, full roll-out is expected to exceed by £70 million the costs projected in 2012.

What is really shocking is the effect of all this failure. For the first time more of the people in poverty are in work than out of work—two thirds of children in poverty are in working households. It is leading to a shocking rise in debt and the use of food banks, and it is a catalogue of failure that would be farcical if it were not so desperately serious for us all. It is serious for individuals and families who look to the system to protect them but who are being appallingly let down; it is serious for charities, local authorities, housing providers and others picking up the pieces from this disastrous state of affairs; it is serious for the staff working in the Department, who are under pressure, demoralised and blamed and cannot provide the service they would like; and it is serious for the taxpayer, who is footing a bill that is rising and threatens to spiral out of control. It is serious for everyone except the Secretary of State, who has his head in the sand. He denies the facts when they are inconvenient, but tonight those facts have come out. This Secretary of State has presided over disaster and chaos. It is time to get this Department back on track and to call a halt to this catastrophe—it is time for a Labour Government to clear up the mess.