Welfare Reform Bill

Lord Boswell of Aynho Excerpts

Tuesday 1st November 2011 Grand Committee

[Baroness Sherlock]

I will focus on another point. Would the Minister mind answering the two points together? I am interested in trying to understand this. I have worked in the past with girls who got pregnant while they were in education, dropped out of school and were then eventually encouraged to get back to the stage where they could again get an education. The Minister has made clear his position on those who did not have basic literacy and those who might want to go to university or higher education. As I understood it from the amendment of my noble friend Lady Lister, we are talking about level 3: that is, A-levels or an international baccalaureate. I am not completely sure whether a young woman in that situation, who wanted to go back and get herself up to A-levels, would be allowed to do that or have to fit that around looking after children and a job as well.

[Lord Boswell of Aynho]

Further to that intervention, will the Minister also comment on the thought that occurs to me? It is that the test should be the value added from the education sought, at whatever level that happens to be.

[Lord Freud]

There is a lot of change going on in this area, as noble Lords will know. We are committed to picking up the recommendations of Professor Wolf, who wrote a stunningly important report—one of the best reports in this area that I have ever read. There are some principles in there about funding following the individual which have not been fully worked out. I am not discussing a static situation here. On the question of the check-out counter and fitting it around A-levels, as things currently stand the position is that the person would have to take the check-out job and fit the A-level around that. However—I hope that noble Lords can read between the lines—this situation has movement in it in the years to come, given what the Department for Education is determining to do around the Wolf report. I do not think that this is the last word on the matter but it is the last word as far as this Bill is concerned at this particular time.

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[Lord Boswell of Aynho]

I want to speak briefly to the amendments in the order in which the noble Lord, Lord McKenzie, raised them. First, I enter a note of reservation about Amendment 51FZB. I do so not out of a lack of concern for disable people but out of a concern not to red-line, identify them, or subject them to special treatment unless that is appropriate. We all understand that many jobseekers who are put on to the work search programmes may find life more difficult because they are disabled—that is not in question. The issue is whether the sanction, or the potential for one, in the event of misconduct—I refer to the high-level sanctions in Clause 26 rather than those in Clause 27—should ever be neglected. If a disabled participant on this programme were to reply to the department, “You can think again Charlie if you think I’m going to take that … job”, I am not sure that they should be treated differently from anyone in that position who happened not to have a disability.

On the other hand, if the disability were germane or material to explanations offered as to his inability to comply with the requirements in the section, it would be entirely unreasonable of the Minister or his decision-maker not to have regard to that. It might well be sensible to take the advice of a disability employment adviser, but I do not believe that we should create an artificial distinction about disabled people if the nature of their conduct is not related, or could be said not to be related, to their disability.

As regards Amendments 51ZC and 51FZD, I will rest on the Minister’s explanation for the periods he has chosen. As regards Amendment 51FB, I shall share with the Committee my view, expressed not for the first time, that I am not a particular fan of sanctions regimes. However, I am grateful to the noble Lord, Lord McKenzie, for admitting that there is a case for them and that they are necessary to support a conditionality regime, particularly where people are disinclined to undertake work, work experience or work preparation. We should not put too much by it and it will be interesting to hear the Minister’s response on how much this should be conditioned or targeted. At the back of my mind is the awful memory of the press reports in the first days of the Child Support Agency, alleging that the staff cheered when some delinquent absent parent had been identified. I am not sure that that is the right way to approach this issue; I believe that sanctions are better conducted more in sorrow than in anger, if I may put it that way.

I have one further question for the Minister. Before I ask it, though, perhaps I should say that, with respect to the noble Lord, Lord McKenzie, there might be a slight technical defect in the way that he has presented his Amendment 51FB; it bears on Clause 27 but it should bear also on Clause 26, unless there is some distinction in principle, and I shall comment on that. It would be helpful, for the benefit of those of us who have not been quite as assiduous as we should have been in attending the Committee, if the Minister could explain the difference between the two sanctions regimes in Clauses 26 and 27.

One further point is prompted by the fact that I know that, as I speak, our right honourable friend the Home Secretary is making a Statement and answering questions in another place on gangs and youth violence. We have recently had some press reports that there are to be further sanctions by way of withdrawing benefit from people who are behaving delinquently, whether by rioting or otherwise. I do not want to raise the question on that matter; I just seek this in clarification. I take it from my reading of these sanctions that these are specifically about the work programme and the conditionality thereon, and any such sanctions that the Government may decide upon would have to be delivered through another vehicle and either by additions to the Bill at some stage or by a separate piece of legislation. I would be grateful if the Minister could confirm that.

Essentially I am seeking clarification on some of the issues, expressing concern—as we feel our way through this Committee, which is our duty—about exactly how they would operate and a wish that we should at least not be unaware of any bigger and more major initiatives that may be coming down the track, although perhaps not on this particular set of clauses.

[Baroness Thomas of Winchester]

Is there a disability employment adviser in every Jobcentre Plus office? What training do disability employment advisers have? If the Minister does not know the answer now, which I am sure he does not—it is rather a detailed question—could he possibly write to me? A lot of us are concerned that disability employment advisers may not be quite as boned up as we think they should be on all sorts of conditions. I say that having been at a Jobcentre Plus office where I had to tell a disability employment adviser that the person in front of him had rheumatoid arthritis, when they were not an English speaker and they were describing their symptoms, and he had never heard of the condition. That rather shocked me, so I would be grateful for that information.

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[Lord Freud]

Yes, the noble Lord has got it precisely right and I am grateful to him for summarising it for me. Where a claimant is in receipt of the maximum amount of universal credit, that universal credit will not be reduced below any amount included in their maximum amount for housing, children, disability and so forth. However, where a claimant is earning money and has other earnings over the disregard levels, the sanctionable amount will be a fixed amount not dependent on the level of the award. In circumstances where a claimant’s award is less than their maximum amount because of earnings, a sanction could reduce universal credit to less than the additional amounts for children and housing included in it. That, I hope, is obvious from the numerical examples I shared with noble Lords yesterday. Claimants’ other income will offset such reductions.

Fundamentally, the sanctions regime is designed to do what it does currently, albeit within the universal credit structure. We want to create a clearer and stronger system which provides clarity about the consequences of non-compliance and a more effective deterrent against repeated non-compliance. I can confirm to the noble Lord, Lord McKenzie, that the sanction regime and a sanction decision will not be contracted out. Clause 29, headed, “Delegation and contracting out”, does not include sanctions.

Clause 26 provides for higher-level sanctions of up to three years for claimants subject to all work-related requirements who fail to meet their most important requirements such as accepting a job offer. Failures sanctionable under Clause 26 clearly damage a claimant’s employment prospects and it is right that we have strong sanctions in place to deter such behaviour. Amendment 51FZD seeks to limit the duration of higher-level sanctions to one year. I can assure the Committee that we expect that three-year sanctions will apply only to a very small proportion of claimants who have repeatedly breached their most important requirements and where earlier sanctions have not worked to change behaviour.

[Lord Boswell of Aynho]

If there is repeat offending and therefore a series of sanctions is imposed, can that extend beyond the three-year period as one shades into another or is there a maximum term of three years?

[Lord Freud]

In the way it is structured, there is a maximum if you are on a particular level. It absorbs the other sanctions, if you like. As to why we have an escalating sanctions regime, the reason is very simple. The current sanctions regime is difficult for claimants to understand. It is important that there is a real escalation so that behaviour is changed. That is why we have created this structure, and why it is different. Also, as people see very evidently what the repercussions of not complying are, as they start to see the costs quite plainly, we do see a change in behaviour. That is why we expect only a small number of people actually to hit the higher level of sanctions.

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[Lord Freud]

My Lords, let me deal with the questions asked by the noble Baroness, Lady Hollis, straight away. Claimants who fail to meet their responsibilities will have an opportunity to explain why they have done so and show good reason before a decision to sanction is made. After a decision to reduce the claimant’s award amount is made and processed we expect that, as now, a letter will automatically be sent to claimants setting out their appeal rights and details of how to request information on why they have been sanctioned. We will also communicate the amount and duration of the award reduction and, in the case of lower-level failures, what the claimant can do to re-engage and bring the open-ended part of the sanction to an end. We will not sanction claimants with limited capability for work, or those who have learning difficulties or mental health conditions, without first making every effort to contact them, their carer or healthcare professional to ensure that they have fully understood the requirement placed on them and had no good reason for failing to meet it.

On hardship, we are addressing the hardship arrangements in a later group but we are looking to maintain a hardship regime which will act in a similar way, although we will probably make some adjustments to it. However, we can discuss that a little later. I should clarify the point about the overlapping of different sanctions. Where a claimant subject to one sanction receives another, both sanctions run concurrently with one reduction suppressed. This means that for the period in which two sanctions overlap, the second sanction has no impact, as I said earlier. Under universal credit, where a claimant subject to one sanction receives another, the period of the second sanction would be added to the total outstanding reduction period. A claimant’s award amounts would be reduced for the entire duration of both sanctions. This ensures that claimants will always face the full consequences of failing to meet their responsibilities. There will be a change from the current system to the universal credit system. I apologise if I slightly misled the Committee on that.

Amendment 51FZZA seeks to prevent the imposition of higher-level sanctions on disabled claimants until such time as a disability employment adviser has been consulted. First, I assure noble Lords that we recognise that high-level sanctions of up to three years are not appropriate for all failures. Disabled claimants with limited capability for work will not be subject to requirements that are sanctionable at the higher level. Clause 27 provides for appropriate sanctions for failures that should not be subject to high-level sanctions, such as failures to attend a work-focus interview or a training course.

Disability employment advisers play an important role. I will pick up on the point made by my noble friend Lady Thomas. I hope that my answer will get to the nub of her acute question. The role of disability employment advisers is to assist claimants with a disability or health condition who need extra support to gain or retain employment. It is decision-makers who will look at all the available evidence and consider whether a sanction should be imposed. It is right that we should retain the clarity of roles in the system. I will not talk about the training of disability employment advisers because it is not strictly relevant in this context. If the noble Baroness would like a letter describing it, I will write to her, but it is not the point here. What matters is the training of the decision-makers. They will receive in-depth training. This will include how to assess evidence and determine whether a claimant has demonstrated good reason. Where necessary, decision-makers may seek additional advice from specialists, including medical professionals, with the consent of claimants.

[Lord Boswell of Aynho]

As I read my noble friend, he is saying that if a decision-maker were considering the case of a person subject to a sanction, the representations made by that person about the problems they had in complying with their programme would automatically be taken into account, even if they were rejected on their merits by the decision-maker.

[Lord Freud]

I thank my noble friend for looking for clarity. There is a layer of protections here. We have a highly trained decision-maker with a specific job of making the decision. Also, the claimant can look for reconsideration within that office. Beyond that, they can look to reduce a sanction by going to an independent tribunal. There are layers of protection. The objective is that claimants who demonstrate good reason will not be sanctioned.

We will also maintain other protections. One is that we will continue to visit the homes of claimants with limited capability for work and a mental health condition or learning disability, to help us understand why they did not meet their requirement.

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[Baroness Lister of Burtersett]

Is my noble friend’s point not that it is at the point where someone has said they will engage with the regime that you are more likely to achieve that outcome if you then withdraw the sanction? You have achieved your end but there is still a sanction. I do not think that the Minister has addressed that point.

[Lord Boswell of Aynho]

I am sorry for the Minister being put under, I think, unreasonable sanctions or pressure himself, but I suggest that it might be unwise to get into a situation either where we were softies and were not prepared to take these things seriously or where, in circumstances where someone had been sanctioned, if they were to get into the frame of mind of saying, “There is nothing to be lost; I shall carry on because it’s going to happen to me anyway”. There ought to be at least an opportunity for at least a negotiation on a restart of compliance.

[Lord Freud]

I think that I can give good news and bad news. There are two issues here. The first is the person who had a disguised problem which then emerges. We have a solution to that: if it emerges that there was good reason, the decision-maker can reverse the position. The bad news is that we do not have a position where, once someone recants, they are forgiven instantly.

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[Lord Freud]

My Lords, we will ensure that the full universal credit system is extensively tested with claimants before the new benefit is introduced. However, this will not take the form of a pilot scheme as this would add extra costs and delays to the introduction of universal credit. It is vital that we are able continuously to test, improve and evolve the universal credit system after it is introduced. It is key element that we should have the flexibility to respond to change and ensure that the system does not stagnate while the world develops around it. The amendments I tabled will achieve this constant evolution.

The original wording of Clause 30 provided for piloting measures only to see if they would improve a claimant's chances of entering work, or of finding more or better-paid work. While this is a key objective, universal credit will also simplify the benefits system, improve work incentives and change behaviour. Amendments 56A and 69A will ensure that we are able to test approaches that cover these wider principles.

If we are to ensure that we have the flexibility to develop and continuously improve universal credit, we must ensure that piloting can also include the testing of changes to the structure, design and delivery of the benefit. The ability to run controlled pilots of tests—for example, of whether advances in technology could improve the structure or delivery of universal credit—will be a fundamental part of the evolution of the benefit and of its ability to remain responsive to claimants' needs.

I will add that the inspiration for this measure came from thinking about what happened to NHS hospitals when they were brought into state control in 1948. Their service levels were almost frozen. It is vital, with a big state system, constantly to move, change and evolve it. This is the mechanism to ensure that we have a responsive system. If we do not have this kind of power, we could find ourselves with a system that is perfectly in tune with what we require in 2011 but by 2030 is absolutely out of touch with what society needs.

I recognise that any pilot must be transparent and timely, which is why the clause includes a number of safeguards. For example, we have time-limited each future pilot scheme to three years. Through Amendment 69A we will ensure that any pilot regulations will be subject to the affirmative resolution procedure. I hope that noble Lords on all sides will support this enthusiastically, and I urge the noble Lord to withdraw his amendment.

[Lord Boswell of Aynho]

My Lords, I warmly support the arguments of the Minister. Might I have an assurance from him that as the past record of the department—no names, no pack drill: I suspect that it is a political sharing of honours, or dishonours—shows that it has sometimes anticipated the results of pilots by introducing substantive schemes before their conclusion, he will at least start with the working assumption that the pilot will come first, then the evidence, and the decision thereafter?

[Baroness Hollis of Heigham]

Like other noble Lords, I very much welcome this. The problem in the past has always been the length of time to get a learning loop into systems. By the time there has been a pilot and the evidence has been assessed and reported back, three years have passed—by which time, alas, usually incumbents have moved on and questions have changed. I am delighted that we will get pilots. Will the Minister give an undertaking that the results of the pilots will be published and made available to Members of both Houses as soon as is practicable? Sometimes they will not be supportive of positions that the Government wish to develop. However, at the core of research must be the integrity of publication.