Jobseeker’s Allowance (Mandatory Work Activity Scheme) Regulations 2011

Lord Rix Excerpts

Tuesday 10th May 2011 Lords Chamber

[Baroness Thomas of Winchester]

My Lords, I, too, am glad to have the opportunity to debate briefly the thinking behind this order, which raises some important questions. I am not unsympathetic to the whole scheme. It has been introduced, we are told, because Jobcentre Plus staff wanted a tool to enable them, in the words of the Minister, Chris Grayling, when he gave evidence to the Merits Committee, to refer someone on JSA for a period of full-time activity to instil the discipline of work, and re-energise, refocus and remotivate them to enter or re-enter the world of work. This sounds reasonable until one looks at the process. It is very rare for the Merits Committee, of which I used to be a member, to draw the special attention of the House to an order using the following words:

“The Committee considers it unacceptable that the House has been given insufficient information to understand the policy objective of the scheme; to determine how the scheme will work; and effectively to assess whether the outcome will help claimants to improve their prospects of obtaining employment”.

Since then, the noble Lord, Lord Knight, has told us what the up-to-date situation is, which I had not heard about. I am glad he has given us that news.

It is important to say that this mandatory work activity scheme is not work-related activity, which is a very different scheme for those on the employment side of ESA. However, there is a similarity between the two schemes—not just between their names, which is unfortunate. Both are supposed to help unemployed people prepare for the world of work and both carry a sanctions regime, although neither is a sanction in itself.

The two sanctions regimes are very different. Work-related activity for ESA claimants carries a relatively mild sanctions regime, whereas this scheme—although placements under it last for only four weeks—has a much tougher regime. As we have heard, if someone defaults without good cause there will be a fixed sanction of 13 weeks. If this happens twice within 12 months, the sanction will be of 26 weeks. No wonder the SSAC considered this disproportionate. It was also critical of the fact that the sanction could not be overturned or shortened by a claimant re-engaging with the process, thus turning the whole placement, in this circumstance, into nothing much more than a punishment. How do we know what a good cause is for this particular scheme? We do not; it is left, presumably, to the decision-makers in Jobcentre Plus. Why? It is apparently felt that prescribing in regulations what constitutes good cause will limit the circumstances in which it can be applied, although it is prescribed for other sanctions regimes. Does this mean that there is likely to be inconsistency up and down the country in how good cause is judged? Yes, this is bound to happen, which must surely be why these regulations, as drafted, are unacceptable and leave Parliament unsighted as to how the scheme will work in practice.

One matter I am puzzled about is the nature of the placements under the scheme. The Minister in his evidence said that placements would be in the not-for-profit sector. He cited the examples of work in a charity shop or on a conservation project. However, nowhere is it spelt out in the regulations that these placements will be in the not-for-profit sector. Clearly there are all kinds of implications if placements are to be made in ordinary businesses, including the danger of exploitation. I wonder why this is not stated in the regulations. Many other questions are raised by the order. Perhaps two, crucially, are: is the balance right between what the Secretary of State lays down and what is left to local determination; and what will success look like?

All in all, Parliament is being asked to buy a pig in a poke with these regulations, framed the way they are. As I said at the beginning, I am not against the policy of trying to engage perhaps recalcitrant jobseekers with the world of work, but the lack of information we are given in these regulations leaves me with no option but to vote for the regret Motion of the noble Countess.

[Lord Rix]

My Lords, this is the first time that I have been in your Lordships’ House since the debate on disability last Thursday, when it was announced that the noble Lord, Lord Freud, had had an unfortunate accident. I am glad to see him back in his place and I hope that he is fully recovered.

I start by stating that I am, of course, in support of the principles behind universal credit—namely, making work pay and helping more people into employment, if they are able to work. I doubt that anyone in the Chamber opposes that. However, the means by which this is achieved must be sensitive to the wide-ranging needs and abilities of potential jobseekers. It is within these parameters that any assessment of the fairness and value of the Mandatory Work Activity Scheme must be considered to ensure that people are not disproportionately disadvantaged. I intend to focus on the impact that this regulation would have on disabled people and, as President of Mencap, especially on those with a learning disability, because I fear they stand to lose most as a consequence of these regulations.

Recently, the Employment Minister claimed that three-quarters of incapacity benefit claimants have now been found to be fit for work. Coupled with the removal of the exempt group, which means that people with a learning disability are not automatically exempt from the work capability assessment, this could result in a significant number of disabled people being found to be fit for work and migrated onto benefits, most likely JSA, where they will be subject to conditions such as the Mandatory Work Activity Scheme.

This holds many challenges—primarily the risk of imposing unreasonable demands on people who might struggle to fulfil them because of their disability or those who might not fully grasp the requirements made upon them. A failure to attend a mandatory interview, for example, may be as a consequence of an individual’s lack of understanding of what was expected of them, rather than a deliberate act of non-compliance. Indeed, the Social Security Advisory Committee has warned that:

“Evidence from the Department’s Equality Impact Assessment and DWP research shows that ethnic minority claimants and those with a learning difficulty tend to be disproportionately sanctioned for not actively seeking employment. This, alongside other societal factors, could lead to these groups being disproportionately referred to this scheme and, as a consequence, at even greater risk of sanction”.

I seek assurances from the Minister that the correct protocols will be put in place to ensure that people with a learning disability fully understand the obligations they must meet. It is also vital that these obligations are reasonable and that individuals are provided with appropriate support. This is particularly important because disabled people are statistically more likely to live in poverty and will often be unable to cope with the sanctions.

Additionally, I am very concerned about the precedent being set to punish people for having the “wrong attitude” when it comes to job seeking. It is imperative that the Government are clear about the intention of the scheme. If the aim is to incentivise work, I would suggest that there are better ways of monitoring how proactive people are being when in search of employment, rather than penalising them if someone determines that they are not looking hard enough. The truth might be that an unsuccessful passage into work might not be as a result of a lukewarm motivation but because of a lack of available opportunities to work.

People with a learning disability have very specific and individual support needs when seeking employment. With the increased likelihood of disabled people moving onto jobseeker’s allowance come the increased responsibilities to ensure that these people are properly supported in getting a job and are not given the added onus of unfair sanctions or conditionality if they are unable to do so. Equally, there seems to be no detail about a complaints procedure in the event of this support not being available. Given the significant evidence of prejudice that befalls many disabled people when seeking a job, what assurances can the Minister provide that this will be adequately addressed in the scheme?

As I said before, my concerns arise out of a lack of clarification from the Government about the details of the scheme and I hope that the Minister will be able to allay my concerns by assuring me that disabled people, especially people with a learning disability, will not lose out under these regulations; but, frankly, I fear the worst.