Social Security (Statutory Instruments)

Mark Harper Excerpts

Monday 9th February 2015 Commons Chamber

[The Minister for Disabled People (Mr Mark Harper)]

I beg to move,

That the draft Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2015, which were laid before this House on 14 January, be approved.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

With this we shall take the following motion, on pneumoconiosis:

That the draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2015, which were laid before this House on 14 January, be approved.

[Mr Harper]

I am sorry that the names of these regulations are not very catchy, but they are important none the less. I confirm that they are compatible with the European convention on human rights. The two schemes stand apart from the main social security uprating procedure, and there is no legislative requirement to review the level of payment each year. However, I am happy to increase the amounts payable for 2015 by the consumer prices index—that is, 1.2% as at September 2014, which is the same rate being applied to some social security disability benefits and industrial injuries disablement benefit. I was here for the previous debate when my right hon. Friend the Minister for Pensions clearly set out why CPI, rather than the discredited retail prices index, is the right measure by which to increase these benefits. I do not propose to detain the House by repeating his very clear and detailed explanation.

The Government recognise that people suffering from diseases as a result of exposure to asbestos or one of a number of other listed agents may not be able to bring a successful claim for civil damages, partly due to the time lag between exposure and the onset of the disease, which could be as long as 40 years. As well as compensating people who cannot make civil claims, these two schemes fulfil an important role by ensuring that most sufferers receive compensation while they can still benefit from it.

The Pneumoconiosis etc. (Workers’ Compensation) Act 1979 provides a lump sum compensation payment to those who suffer from one of five dust-related respiratory diseases, who are unable to claim damages from employers who have gone out of business, and who have not brought any action against others for damages. The 2008 scheme provides compensation to people who contracted mesothelioma but were unable to claim compensation for that disease under the ’79 Act, perhaps because their exposure to asbestos was not due to their work. The 2008 scheme means that payments can be made quickly to mesothelioma sufferers at their time of greatest need.

Under both schemes, a claim can be made by a dependant if the sufferer has died before being able to make a claim. Payment levels under the ’79 Act scheme are mainly based on the level of the disablement assessment and the age of the sufferer at the time the disease is diagnosed. The highest amounts are paid to those diagnosed at an early age and with the highest level of disablement. All payments for mesothelioma under the ’79 Act scheme are made at the 100% disablement rate—the highest rate of payment. Similarly, all payments under the 2008 scheme are made at the 100% disablement rate and based on age, again with the highest payments going to the younger sufferers. In the last full year, April 2013 to March 2014, over 3,700 payments were made in respect of both schemes, totalling over £54 million.

These regulations increase the levels of support through the Government compensation schemes. I am sure we all agree that while no amount of money can ever compensate individuals and families for the suffering and loss caused by mesothelioma, those who are suffering rightly deserve some form of monetary compensation. I commend the regulations to the House.

--- Later in debate ---

[Mr Harper]

I will try to respond to all the questions that have been asked.

The shadow Minister, the hon. Member for Stretford and Urmston (Kate Green), asked about the progress that has been made to change the statutory position on uprating. That remains under review, but the House can see the Government’s view clearly from the fact that I am bringing forward the orders to increase the payments by the rate of CPI. As hon. Members have said, that reflects the importance of uprating the amount in line with inflation.

The shadow Minister and one or two other Members referred to the balance between the compensation that is paid to sufferers of the disease and that which is paid to their dependants. The main intention of the schemes was to ensure that financial support went to the people suffering from those diseases. They were set up as they were, with no fault having to be produced and a focus on the speed with which payments were made, to ensure that the support could go to the sufferer of the disease while they were still in a position to benefit from financial compensation.

When the Child Maintenance and Other Payments Act 2008 was debated in the House—the hon. Member for Barrow and Furness (John Woodcock) referred to his part in that—I was a shadow Minister and the Bill had the full support of the Conservative Opposition. One issue was about ensuring that we were speedy in providing compensation, given the small gap between when someone is diagnosed with mesothelioma and, sadly, their inevitable death. We got compensation to people while they were still able to—I am not sure “enjoy” is the right word, but to benefit from it to the extent that that was possible.

The hon. Member for Stretford and Urmston is right to say that most payments are made to sufferers rather than dependants: in 2013-14, 3,410 payments were made to sufferers and 360 to dependents. As my predecessor rightly said in the debate last year, the case for the equalisation of those payments was kept under review, and our most recent assessment is that it would cost a further £2 million a year. It is worth putting on record that in the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 and the 2008 schemes, payments substantially outweigh the money received from compensation recovery. There is no money sitting around to make those payments. The Government paid out more than £54 million of taxpayers’ money, and recovered just under £26 million. The two schemes together cost the taxpayer nearly £29 million, and in the current financial position one has to make difficult choices about funding these schemes. They are already costing £29 million, and it would cost a further £2 million to make those changes. However, we will keep the position under review.

The hon. Lady referred to what the Health and Safety Executive is doing to raise awareness of the dangers of asbestos. I am familiar with that because I launched the current £1.13 million awareness campaign last October, which was particularly aimed at helping at-risk workers recognise that asbestos was relevant to them and their work. It encouraged them to seek reliable information about how they can protect themselves, and encourage and enable safer working with asbestos through behavioural change.

On the day we launched that campaign I went to a large company that sells products to small traders, who are often at risk when they carry out that work. We used information packs and information that small traders could use and access on their smartphones to answer questions about the type of properties they were working in and the risks they may face, and those I spoke to found that helpful. That campaign is due to end in March, and a fuller valuation of it will be undertaken before any decision is made about a further campaign in the next financial year. The HSE and those in the various trades that are affected by this issue take it very seriously. I was encouraged to see that there is a fair degree of knowledge about it, although not as much as one would hope, given the serious health consequences of not taking the issue seriously.

The hon. Member for West Dunbartonshire (Gemma Doyle) made a point that was echoed by my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch), which was that sufferers of this disease are not evenly distributed throughout the United Kingdom. They reflect industrial work patterns and are not evenly spread, and some Members who have spoken today will obviously have a larger number of constituents who are affected.

The hon. Members for West Dunbartonshire and for Barrow and Furness also referred to the new scheme that was set up last year. That is not what we are debating now, but in case hon. Members are not already aware—I am sure they are—the hon. Member for Liverpool, Walton (Steve Rotheram) has secured a debate on that issue this Wednesday in Westminster Hall at 9.30 am. I will be responding on behalf of the Government and will deal with any questions that hon. Members may have.

The hon. Member for West Dunbartonshire raised an issue concerning the armed forces. If she will forgive me, I will take that away and raise it with my colleagues in the Ministry of Defence. I am not quite sure what the answer will be, but I suspect that the most sensible way to progress is for either me or a Defence Minister to write to the hon. Lady and to put a copy of the letter in the House of Commons Library. I have no doubt that she will be assiduous in pursuing us if that does not happen on a timely basis, or if she is not satisfied with the response.

My hon. Friend the Member for Chatham and Aylesford referred to the increasing incidence of the disease. There is a very long period between people being exposed to asbestos and being diagnosed and, sadly, dying from the disease. The latest available information suggests that the number of deaths will continue to increase and peak at about 2,500 in 2018, but will then start to fall, reflecting a reduction in asbestos exposure following its peak use in the 1960s and 1970s. The research she mentions is clearly important. If there are bursaries out there, it is obviously helpful if people take them up. More research by some of our best scientists would clearly be welcome to see if there is anything that can be done, once people have been exposed to asbestos, to stop the development of this dreadful disease.

I think that that deals with all the questions raised by Members on both sides of the House. I commend the regulations to the House.

Question put and agreed to.



Social Security

Resolved,

That the draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2015, which were laid before this House on 14 January, be approved.— (Mr Harper.)