Jobseekers (Back to Work Schemes) Act 2013 (Remedial) Order 2019

Lord Forsyth of Drumlean Excerpts

Thursday 3rd September 2020 Grand Committee

[Lord Forsyth of Drumlean (Con)]

My Lords, I agree with every word just uttered by the noble Baroness, Lady Bowles of Berkhamsted. She is a formidable member of the committee and has referred to our unanimous report entitled, Universal Credit isn’t working: proposals for reform.

This order is concerned with the sanctions applied to JSA claimants who lodged appeals before the 2013 Act came into force. I must say that I share the concern of the noble Baroness, Lady Bowles, about the time it has taken to deal with this matter, but that is water under the bridge and I am grateful to the Government for bringing forward this order. However, to my mind it says something about the culture that operates in the DWP in respect of sanctions. The report of the committee, which was published just as the House went into the Summer Recess, is highly critical of the DWP regarding its use of sanctions for relatively minor breaches of rules. It makes several recommendations on the use of sanctions and reforms, and we are all looking forward to the Minister’s response to those in due course.

In my view, the Government have placed far too much emphasis on enforcing strict obligations on claimants through the threat of sanctions. The evidence seen by the committee shows that this is counterproductive and, as the noble Baroness, Lady Bowles, has pointed out, has severe implications for people’s mental health and well-being. Surely, we should try to operate a system that provides more help in coaching and training claimants to find jobs or to progress in their current roles.

We were amazed to find that the United Kingdom has some of the most punitive sanctions in the world, and the evidence on their efficacy is, to say the least, mixed and unconvincing. Harsh sanctions are being applied to claimants who are already subject to high deductions to pay back advances and historic debt. The committee heard evidence that, over recent decades, there has been increased severity of sanctions accompanied by reduced safeguards. As the noble Baroness, Lady Bowles, pointed out, the penalties which can be imposed by the department are far more severe than anything that would be allowed by the courts. I am sure the Committee would agree that no reasonable system should impose fines which result in extreme poverty for minor offences. The system should take account of the effect on individuals, and the department should have some kind of hardship assessment before sanctions are applied.

I very much welcome the reduction in the maximum length of sanctions from six months to three months, which again the noble Baroness, Lady Bowles, referred to. However, we should remember that we are talking about removing the main source of support from people, which results in them having to go to food banks, being dependent on loan sharks and being cast into extreme poverty. I therefore ask my noble friend the Minister, who I know is indefatigable and very sensitive and who has a long and distinguished record in helping some of the most vulnerable in our society, what progress has been made on introducing a written warning system before sanctions are applied.

On 2 June, giving evidence to our committee, Neil Couling said that the DWP was committed to publishing an evaluation of the effectiveness of sanctions and that it was coming

“as soon as we can.”

What does that mean? I note that my noble friend used that phrase in the context of complying with the order, where “as soon as we can” represented 12 months. It is disappointing that this was not published before the department reversed its decision on the suspension of sanctions as a result of Covid. It is very regrettable that the DWP has resumed the monitoring of conditionality requirements and will resume sanctions, when every day we have more announcements of catastrophic reductions in job numbers.

I say to my noble friend that, with the prospect of several million more unemployed, to threaten claimants with long and severe sanctions at this stage seems unfair and counterproductive. I ask her to think again about the decision to bring back the sanctions regime, given that the impact of Covid will, if anything, be worse and more difficult in the months ahead.