DWP: Performance

Kwasi Kwarteng Excerpts

Monday 30th June 2014 Commons Chamber

[Kwasi Kwarteng (Spelthorne) (Con)]

I have been very interested to hear some of the contributions from Labour Members as well as those from my hon. Friends. It is interesting that the terms of the motion address the so-called chaos in the administration of the Department. To me, that is an admission by the Opposition that they are not challenging the need for reform. As a consequence of the fact that Labour Members cannot engage in a debate about whether the reforms are necessary, they have sought to propose this secondary motion, as it were, based on looking at the administration of the Department.

Everyone here knows that we faced a significant budgetary problem when this Government came to power in 2010. It will be remembered that the last Labour Chief Secretary said there was “no money left”, which clearly was the case. There was a deficit of £160 billion, and a large component of that overspend was a consequence of overspending in the welfare department. In 1997, the amount spent on welfare and social security was £93 billion. Within about 10 years, that had gone up by about 60% in real terms. Today we have a bill of well over £200 billion. Anyone can see that that was not sustainable. Anyone can see—the public do see—that it was not a viable proposition to keep adding to this welfare bill. What this Government have done very effectively has been to focus on this problem, to try to address it and to bring about reforms to make our welfare spending sustainable in the future.

It is quite irresponsible for Labour Members to say that we Conservative Members do not care and that it is the same old evil Tories. The hon. Member for Hampstead and Kilburn (Glenda Jackson) made a passionate speech, giving full vent to all her theatrical skills in denouncing my right hon. Friend the Secretary of State. Everyone knows that his attention to detail and his commitment in this area have been second to none. Over 10 or 15 years, he has devoted himself to trying to understand the system and the causes of long-term poverty and long-term unemployment. In fact, after four years, he and my right hon. Friend the Chancellor of the Exchequer between them have turned around this floundering ship.

If we look at the employment figures and see how much employment is being created by a prospering private sector, and if we look at the numbers of people entering employment, we will see a marked success in this area. It is no good Labour Members wailing about the changes being made. We all know that the country faced a significant budgetary problem and we all know that a big part of the overspend related to this precise area of welfare spending, welfare dependency and so forth, and it is quite right for the Government to tackle it.

My hon. Friend the Member for Forest of Dean (Mr Harper) mentioned the benefit cap of £26,000. He was quite right to suggest that this policy is widely appreciated and widely supported by people across the country who cannot understand why any family in any constituency should be in receipt of £26,000 a year in benefits. The results of polls done on individual policies show that the benefit cap is the most popular Government policy of any party since 1945. This is well documented, and there is a reason for it: people understand that the benefit bill had been expanded way beyond anything that was sustainable.

It is quite revealing that in the course of this debate, the Labour party, which should be re-christened the welfare party, has failed to engage with any of the real reasons why reform was needed. Labour Members have relied on what I am calling a subsidiary motion related to the Department’s administration because they know that on the substantive issue of welfare reform and of trying to reduce spending and ensure that welfare goes to the people who most need it, they have been found wanting. Frankly, the British people do not accept any of their arguments.

--- Later in debate ---

[Mrs Anne McGuire (Stirling) (Lab)]

It is a pleasure to follow the hon. Member for Skipton and Ripon (Julian Smith), but I must tell him that I think I speak for all Opposition Members when I say that I rather resent his suggestion that any criticisms of the inefficiencies of the Secretary of State’s Department are laid at the door of hard-working civil servants. Let me also tell him that when he next makes assertions about what people who work in jobcentres actually want, he might wish to prove those assertions rather than simply stating that they are in favour of more reforms and more sanctions.

The DWP touches all our lives at some point. I think that when we talk about welfare, we should bear it in mind that welfare payments—that generic term that we trot out so easily—also include our pension system. The Minister may correct me if I am wrong, but I suspect that about 54% of our welfare payments are pensioner payments. We should never forget that.

Today’s debate results from the fact that a Government Department has failed miserably to achieve its objectives, namely reform of our welfare system, a Work programme that works for people, and the reform of disability payments. I agree with what was said by my hon. Friend the Member for Aberdeen South (Dame Anne Begg), the Chair of the Select Committee—who, on cue, has just entered the Chamber. The hon. Member for Spelthorne (Kwasi Kwarteng) suggested that the Conservatives were the only party that was in favour of welfare reform. Nothing could be further from the truth. What we did object to—

[Kwasi Kwarteng]

rose—

[Mrs McGuire]

Will the hon. Gentleman let me finish my sentence? I had only got as far as a comma.

The hon. Gentleman should realise that, in fact, we had a consensus on welfare reform. Indeed, the hon. Member for Forest of Dean (Mr Harper) mentioned that we had worked together in the last Parliament. We are now debating a reform programme that is not about consensus—it is not about talking to other people. It is the brainchild of the Secretary of State. He went at it with zeal, and he was not prepared to accept that there were any ways in which he ought to finesse its implementation. We cannot simply dismiss the 700,000 people who are waiting for WCA as somehow a blip or a glitch in the system. Those are individuals who, as my right hon. Friend the Member for Birkenhead (Mr Field) said very powerfully, find themselves quite literally without money on many days of the week; people who find themselves in the humiliating position, as they see it, of having to go to get food from friends, family and food banks.

We have PIP now. I think the Minister deserves just a little credit for PIP and I have said that to him before. He has stalled the implementation, however, and I hope that at the end of this debate he will tell us exactly what the waiting times are now, because they have been bandied around but I have not seen any evidence for them.

We cannot just ignore what other organisations are saying. The Public Accounts Committee says the DWP has “yet to achieve” savings and it has an “unacceptable level of service” with

“uncertainty, stress and financial costs for claimants”.

Even the DWP’s own annual report last week said:

“The volume of assessments undertaken by providers on both contracts has fallen consistently below”

the expected demand.

We have called over many months now for a cumulative impact assessment of the impact of the policies on disabled people. What we have here is a cumulative disaster area of a ministerial team, which introduced major change projects without suitable testing. The objective assessments have clearly identified that. Ministers continued to advise this House that everything was, and was going to be, hunky-dory. They have sought to camouflage all the failures of their Department. We now even have a new technical term that we did not know we had: reset. Actually, that is a term for a new project; the Secretary of State ought to admit that.

We have a Secretary of State who has stretched credibility on universal credit when he has said time after time that it is on budget and on time. I hate to disillusion the Secretary of State, but when I asked the chief executive of the Major Projects Authority whether universal credit was on budget and on time, he might have said certain words, but his body language gave a whole different interpretation of what he said, and the Secretary of State should look at that evidence in the PAC record.

This ministerial team is living in a virtual world in Caxton house. It is not the same world most of us—even the Ministers’ own Back Benchers—have said they live in, and, frankly, if the Secretary of State does not get a grip on the chaos within his Department in working with people, one has to ask, “Why is he still in his job?”

--- Later in debate ---

[Heather Wheeler (South Derbyshire) (Con)]

I am probably tail-end Charlie on this occasion, so I will be brief. The Opposition have given us a tour de force on what they think is wrong in their constituencies, but when they look at themselves in the mirror and see the pain and misery going on in their constituencies, I wonder what it must look like to them when they look over to our side and see, for example, my hon. Friend the Member for Tamworth (Christopher Pincher) talking about how unemployment has been cut by at least a half or my hon. Friend the Member for Fareham (Mr Hoban) talking about the changes that have happened in his constituency.

We on the Government Benches like to think that the glass is half full, because we are prepared to roll our sleeves up and provide leadership in our constituencies. We have provided job fairs in our constituencies and worked with food banks and mental health charities, for example. I know that there are some good, honourable people on the Opposition Benches—

[Kwasi Kwarteng]

Who?

[Heather Wheeler]

I would never name them; Mr Speaker would not appreciate that.

I say to those honourable people who earn their money as MPs and are proud to represent their constituencies, “Actually, guys, what is happening in your constituencies? What is going to change in your constituencies? When are you going to get out of the mental state that you seem to have, whereby everything is bad, nothing is ever going to change, nothing is ever going to get better. Well, it is.” Unemployment in South Derbyshire used to be 25%; now it is 1.8%. We used to have 13 mines; we do not have those any more, but we have apprenticeships, we have engineering, and we have tourism. We have numerous really special jobs, and people are working jolly hard. They are rolling their sleeves up because they want better for their families. They are not prepared to live on welfare. They are not prepared to have that as a lifestyle. They want everything for their families in the future.

It is sad that we have spent four years trying to turn the oil tanker around. Welfare used to be “what you did”, but things cannot be like that any more, and I want Members in all parts of the House to realise that they have to change. We must live within our means. We want people to come out of this in the right way. We want to help all our mental health charities, and we want to help all our young kids to get apprenticeships. That is the way forward; welfare is not.

--- Later in debate ---

[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.