Oral Answers to Questions
Kevin Brennan Excerpts(10 years, 1 month ago)
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Steve Webb
I am grateful to my hon. Friend for his support for our robust action on pension scheme charges. On governance, we recognise that there is potential for conflict of interest in some master trusts. Therefore, in last week’s Command Paper, which I am sure he will have studied, we proposed that master trusts should be subject to the same independence requirements as independent governance committees. We are now consulting on that proposal.
Kevin Brennan (Cardiff West) (Lab)
What does the Minister make of the Government’s new Financial Conduct Authority’s first foray into the area of defined contribution pension schemes?
Oral Answers to Questions
Kevin Brennan Excerpts(10 years, 2 months ago)
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Mr Speaker
Question 13 is a good idea. The hon. Gentleman, not for the first time, and probably not for the last, is ahead of himself.
Kevin Brennan (Cardiff West) (Lab)
13. What recent assessment he has made of the performance of Capita in relation to personal independence payment assessments.
The Minister of State, Department for Work and Pensions (Mike Penning)
Latest analysis is telling us that the end-to-end claimant journey is taking longer, as I said previously, than expected with both providers—Capita and Atos. As I previously stated, we are taking urgent action on this.
Kevin Brennan
Thank you, Mr Speaker, for not allowing me to get ahead of myself earlier.
It is taking months and months for constituents to get these assessments done, and the issue is clogging up a lot of our surgeries as a result of those delays. In his answer to the previous question, the Minister said that claimants were to blame. How much of the problem is he saying is caused by claimants, because I can assure him that, in the case of my constituents, that is not the problem?
Mike Penning
As we bed down the new benefit and the new policies, there will be issues within the Department, issues with the contractors and issues not only with people giving advice to claimants, but with claimants themselves. I am not blaming claimants. What we are saying is that there are delays in the forms coming back and delays because they are not filled in correctly. That is something that we need to work on. We need to be more informative about how those forms are to be filled in, and we are working on that. On the terminal illness side, we are working with Macmillan so that it works closely with those claimants.
Oral Answers to Questions
Kevin Brennan Excerpts(10 years, 5 months ago)
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Mr Duncan Smith
Again, I congratulate my hon. Friend, because we will definitely be considering this next recommendation of hers. I have listened and read her suggestions, and we have actually managed to alter the new curriculum. The final version will now state that
“the functions and uses of money, the importance and practice of budgeting, and managing risk…income and expenditure, credit and debt, insurance, savings and pensions, financial products and services”
will be taught as part of the curriculum for the first time.
Kevin Brennan (Cardiff West) (Lab)
25. What steps he is taking to improve the quality of medical services reports on claimants of benefits.
The Minister of State, Department for Work and Pensions (Mike Penning)
This Government take the quality of assessments very seriously. That is why, before I became the Minister, when the Government saw a drop in the quality of work capability assessments, Atos was instructed to implement an improvement plan to ensure that assessment reports meet the high standards that the Department needs. That plan is now complete.
Kevin Brennan
My constituent Mr Robert Shafer suffered an injustice as a result of a rogue medical services report from many years ago. Will the Minister undertake to take further steps to improve the quality of medical services reports, and arrange a reply to my latest letter to the Secretary of State, to which a response is overdue, on behalf of my constituent?
Mike Penning
On the latter point, not only will I ensure that the hon. Gentleman receives the letter he requires, but if he wants to meet me, I will be more than happy to do that. The Department has commissioned four independent reviews. We know we need to get there; we know we need to do more. We have made changes to help cancer patients and are carrying out an evidence-based review of criteria, which is being overseen by Professor Harrington. I expect to see that report quite soon.
Jobs and Business
Kevin Brennan Excerpts(11 years ago)
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Mr Umunna
My hon. Friend is right to identify some of the risks with the funding for lending scheme. The problem is that it has reduced the cost of borrowing for existing business borrowers without increasing access to finance for those other successful, profitable businesses. The other problem—this is why we advocate setting up a regional banking network, to which I shall turn in a minute—is that the scheme sees as its delivery mechanism the very high street banks that have been the problem. In fact, the transmission mechanism for many of the schemes that the Government have introduced since they came to office has been the high street banks, which have been the problem.
I will continue to discuss industrial strategy in more detail before touching more briefly, due to time constraints, on consumer issues. I do not think that the Business Secretary would disagree that in opposition he did not really share our view of the need for an active industrial strategy or even of the need for a Department, which he now runs, to be its champion—he argued for his own Department to be abolished at the time. After two years in government, however, he appears to have come round to our way of thinking, and we saw his embryonic industrial strategy published last September.
An industrial strategy consists of different elements. I have welcomed some of the sector-specific interventions that the Business Secretary has announced since the Queen’s Speech—in aerospace and with the ongoing interventions and assistance in automotive—and we will scrutinise the Bills in the Queen’s Speech closely to ensure that they support those key sectors. Another such sector is our creative industries, which were disappointed not to see a communications Bill in the programme for this Session. The point is that so much of what we have seen coming from his Department or the Treasury has been rather “piecemeal”—to use the Secretary of State’s own language—and does not meet the scale of the task at hand. As ever with this Government, if we speak to any business organisation, we hear that the problem is one of delivery.
I will focus on a few key areas and the extent to which the Queen’s Speech moves things forward. I will start where the Business Secretary finished. Of course, we must reform our banking sector, not only so our banks are made safe but primarily so that the financial services sector better serves the real economy. We have said, and he referred to this, that we should have better regulated the banks during our time in office. We did not, however, and that is a source of regret. Listening to the Secretary of State lecture us on that, I should say to him that mea culpa in that respect is due across the political spectrum. The tripartite regulatory regime that we put in place in the Financial Services and Markets Act 2000 enjoyed widespread support. In the House on Second Reading of the Financial Services and Markets Bill, the Business Secretary said:
“I want to express broad support for the Bill, whose philosophy and whose architecture of financial regulation reflect a broad consensus. I appreciate the extent to which there has been broad and extensive consultation with practitioners and with Parliament, and the fact that the Government have responded to very many of the anxieties that have been expressed.”—[Official Report, 28 June 1999; Vol. 334, c. 55.]
He went on to say:
“Like the Conservative Opposition, we shall approach the issues constructively. There is no reason to hold back the Bill.”—[Official Report, 28 June 1999; Vol. 334, c. 58.]
Kevin Brennan (Cardiff West) (Lab)
Is my hon. Friend not being somewhat unfair on the Business Secretary? After all, how can he reasonably expect consistency from a Liberal Democrat?
Universal Credit (Wales)
Kevin Brennan Excerpts(11 years, 3 months ago)
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Stephen Doughty
I absolutely agree with my hon. Friend. I have seen an explosion in legal loan-shark activity on our streets, whether that be people knocking on doors or opening up offices on the high street. I commend the work of organisations such as the Cardiff and Vale credit union that are trying to provide alternative options.
Cardiff council was also concerned about the following:
“Budgeting issues are also a concern as Universal Credit will be paid monthly in arrears. This is one of the major concerns expressed by customers visiting our roadshows.”
It has been taking proactive steps. It was also concerned that:
“Low income families who depend on this money will have no resource at all if there are any problems with receipt of the payment.”
I do not want to guess the future, but a serious concern is that the record of all Governments in implementing large-scale IT projects leaves much to be desired.
Lynda Thorne, the cabinet member for housing at Cardiff council, wrote to me just yesterday and said:
“I am concerned that the end result of many of these changes will be an increase in homelessness and the transfer of extra financial burdens falling on local council tax payers in terms of picking up the cost of a reduction in the collection rate of council tax, the extra cost of providing help and support to those who need support completing claims and a rise in homelessness created from direct payments.”
She makes the point that Cardiff has
“more private Landlords providing accommodation to those on benefits than all the RSLs, housing Associations, put together. Private Landlords have indicated that they are likely to revert back to only letting to those in work resulting in even more families and individuals becoming homeless thus costing council tax payers more. We currently have more than 500 families and individuals in temporary accommodation at any one time.”
What are the Minister’s reflections on those legitimate concerns raised by a major housing association in my constituency and the largest local authority in Wales?
Kevin Brennan (Cardiff West) (Lab)
My hon. Friend is being generous. Would it not be ironic were the Government to bring about a situation in which, as he describes, private landlords cannot rent out their accommodation to those most in need, because it cannot be guaranteed that they will receive their rent? Is that not the sign of a policy that is ideological and not based on evidence and common sense?
Atos Work Capability Assessments
Kevin Brennan Excerpts(11 years, 3 months ago)
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Mrs Moon
It is absolutely clear that the framework of the assessment is unable to clarify realistically whether someone is able to work. The assessment is not valid for the purpose for which it was set up, unless that purpose was deliberately to deny people access to benefits.
Kevin Brennan (Cardiff West) (Lab)
The head of Atos was recruited from Unum in the United States. Is it not disturbing that the lieutenant governor of California has stated that Unum was operating “claims denial factories” for working men’s compensation? Does not that disturb my hon. Friend?
Mrs Moon
It disturbs me a great deal. Quite honestly, the lieutenant governor was right to say that, because that is what we have found in this country too.
I want briefly to describe some of the cases that I have been dealing with. I shall start with 53-year-old Mrs E, who was employed as an accounts officer. She was a very able and capable woman. She suffered a vicious sexual attack, and was diagnosed with post-traumatic stress disorder. Her health problems caused her difficulties with working, and she was forced to take redundancy. She started claiming employment and support allowance, and attended her Atos assessment. The doctor who saw her is well known to me. I have received many complaints about him. I regularly receive complaints about his rudeness, arrogance and total lack of compassion towards the people whom he is assessing. He made unprofessional remarks to Mrs E, and bluntly told her carer to shut up, saying that he did not want to hear from him.
An official complaint was made, but Mrs E was found fit for work. An appeal judge overturned the decision maker’s decision and she was placed in the support group. Three months later, she faced another Atos medical, and it was decided that she would be fit for work in six months. She was then placed in the work-related activity group. A month later, because of the stress, her mental and physical condition had deteriorated, and medical advisers told her to apply for disability living allowance. DLA was refused because of the original Atos report. When it was pointed out that the report was negative, but had been overturned on appeal, a reconsideration was requested. The DWP insisted that the information from the first Atos assessment was sound and that the only option was to appeal to the first-tier tribunal.
My constituent then faced two tribunals. We should remember that this is a lady with post-traumatic stress disorder. She faced two appeals. The first was for DLA. The decision to award the lower rate for mobility and care was backdated. Since then, another DLA application has raised the mobility and care components to the higher rate. The second appeal tribunal was for the employment and support allowance. She was placed in a support group and her benefit was backdated.
That was not the end of this lady’s trauma. Her mental health had deteriorated to the extent that she attempted to take her own life. Her carer has to remain constantly vigilant. A few months later, she received a letter saying she had been transferred back to the ESA work-related activity group from the support group. Payment for the ESA support component was stopped. Following some investigation, the DWP apologised and said that that was a random “administrative error”, but it affected the lady very badly and her mental state became even more fragile.
Despite that, incredibly, on Christmas eve last year the same “administrative error” occurred. My office was contacted, and I have to say that we were extremely angry. The additional stress was placing this lady in a suicidal position again. The application process started again, and yet again there has been an apology for an “administrative error”. This lady is being hounded by the state: there is no other way of describing it. There is no excuse for this behaviour. This is a company that is not playing fair by this country’s most vulnerable people.
Oral Answers to Questions
Kevin Brennan Excerpts(11 years, 8 months ago)
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Mr Hoban
My hon. Friend is absolutely right to highlight the need to rebalance the economy and to encourage more businesses to export. His comments will have been heard by our right hon. and hon. Friends in the Foreign Office and I shall ensure that they are made known to them directly.
Kevin Brennan (Cardiff West) (Lab)
We know that nearly 1.5 million people in part-time work would like to have full-time work, so why do the Government cut their tax credit support if they cannot get more hours?
Atos Healthcare
Kevin Brennan Excerpts(11 years, 8 months ago)
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Tom Greatrex
My hon. Friend makes a powerful point. A number of cases could be cited that indicate the lack of comprehensiveness in the assessment process and the failure sometimes to incorporate other evidence to ensure that not as many people are wrongly assessed.
I want to concentrate on some contractual issues this morning, and I am sure that others, like my hon. Friend, will make comments about individual cases to illustrate those points. The work capability assessment must be tailored in the interests of both the individual and the taxpayer. Unfortunately, both are getting a raw deal from the system. It is true that the work capability assessment was introduced under the previous Government, which is a point that Government Members frequently make, as I am sure that they will today. It is also the case, however, that in late 2010 the contract with Atos Healthcare was amended, extending it to 2015, beyond its original conclusion date of 2012. The work capability assessment was rolled out to millions of people on incapacity benefit under this Government, despite pilot projects in Aberdeen and Burnley highlighting serious concerns. The Minister said during our previous debate—I paraphrase him slightly—that, in his judgment, the Government should get on with that process and try to work on the basis of the expert reviews as they were going on, rather than fixing it in the first place.
Kevin Brennan (Cardiff West) (Lab)
My hon. Friend is right to point out that the work capability assessment has been around for some time. For many years, I have been helping my constituent, Mr Robert Shafer, who was the victim of a poor assessment. Is my hon. Friend as concerned as I am that the chief medical officer of Atos is now Professor Michael O’Donnell? He was previously employed as chief medical officer by the American insurance company, Unum, which was described by the insurance commissioner for California, John Garamendi, as an “outlaw company” that has operated in an unlawful fashion for many years, running claims denial factories? Is that the kind of person that the Government should allow to be in charge of a work capability assessment system?
Minister for Older People
Kevin Brennan Excerpts(11 years, 10 months ago)
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Madam Deputy Speaker (Dawn Primarolo)
Six Members wish to take part in the debate, so it is necessary to have a time limit of 10 minutes, but if there are lots of interventions, we may need to revisit that.
Kevin Brennan (Cardiff West) (Lab)
On a point of order, Madam Deputy Speaker. I did not want to interrupt the hon. Member for Portsmouth North (Penny Mordaunt), but as of four minutes ago, the fifth written ministerial statement on the Order Paper, from the Secretary of State for Education, on educational reform, had not appeared in the Vote Office, despite its contacting the Department to remind it that it said that it would issue that statement today. Is it not a discourtesy to the House, Madam Deputy Speaker, that nearly six hours after the House began to sit, the statement has still not arrived? After all, the Department is quick to leak stories to the Daily Mail, but it is slow to provide written ministerial statements that it has promised to the House.
Madam Deputy Speaker
Mr Brennan, you will be aware of Mr Speaker’s ruling in this matter. He has indicated in this Session—and, indeed, it was indicated in the previous Session—that written ministerial statements should arrive promptly on the day for which notice has been given. That does not stretch on a Thursday to 4.30 in the afternoon, so I will make inquiries as to when we expect to receive the statement to which you refer. I am sure that Ministers will ensure that it flies here as quickly as possible, because you are clearly keen to read it immediately.
If there are no further points of order, perhaps we can move on. I call Julie Hilling.
Oral Answers to Questions
Kevin Brennan Excerpts(11 years, 10 months ago)
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Chris Grayling
That is an important issue. One of the challenges that we face is that 16 and 17-year-olds are often not on benefits. Together with the Department for Education, we are introducing a new programme, which will begin in autumn and will be funded by Payment by Results, to engage, support and develop the skills of that particular cohort of young people. We cannot abandon them, as has happened far too often in the past.
Kevin Brennan (Cardiff West) (Lab)
5. What steps he plans to take to improve the quality of medical assessments of benefit claimants.
The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)
We asked Professor Harrington to carry out a series of reviews of the work capability assessment, and have implemented the recommendations of his first review. We are continuing to work closely with him, and are ensuring that lessons learnt from the assessment are built into the design of the new personal independence payment.
Maria Miller
As the hon. Gentleman will know, there were problems with the system that we inherited. It was a harsh system, which we have been working hard to make work better, and I hope he will join us in supporting Professor Harrington’s work in this area, which is leaving us with a work capability assessment that better serves the people of this country.