Oral Answers to Questions

Mark Hoban Excerpts

Monday 5th November 2012 Commons Chamber

[Karen Lumley (Redditch) (Con)]

3. What recent steps he has taken to expand the new enterprise allowance.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

Because self-employment is the right option for many unemployed people, on 22 October we expanded the new enterprise allowance so that additional jobseekers could take part. We have also extended it so that jobseekers can take part from the first day on which they claim jobseeker’s allowance, rather than having to wait for six months.

[Karen Lumley]

In Redditch, more than 40 people have taken up the opportunity to be mentored under the enterprise allowance scheme. What else can be done to encourage more jobseekers to start their own businesses?

[Mr Hoban]

My hon. Friend has made a good point. I think that we should try to give good examples to jobseekers about where they can start businesses. Under Get Britain Working, we can set up job clubs to encourage people to see self-employment as an option for the future. I think that that is a good route out for many people with great skills.

[Bill Esterson (Sefton Central) (Lab)]

Self-employed people in my constituency are experiencing increasing difficulty in finding work because of the Government’s austerity measures. Does the Minister accept that the bureaucratic requirement for self-employed people to produce two forms of evidence relating to their income is making it very hard for them to claim benefits and to find a way back into work?

[Mr Hoban]

We try to do as much as we can to reduce the burden of red tape on businesses. That is why the Government set the red tape challenge and introduced the one in, one out rule. All those measures lift the red tape burden from businesses to help them to focus on what they should be focusing on—creating jobs and wealth.

[Claire Perry (Devizes) (Con)]

22. One great barrier for people in work and indeed for people not in work is the cost of child care. Would the Minister look at allowing people on the new enterprise allowance to deduct the cost of child care from their tax bill? That could be taken out of the profits of their company when it was up and running. Will he meet me to discuss the idea further?

[Mr Hoban]

I know that my hon. Friend is a great champion of the importance of child care when it comes to helping people into work. I would be happy to meet her to discuss that option.

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[Joan Walley (Stoke-on-Trent North) (Lab)]

6. What assessment he has made of the recommendations in the Harrington report that have not been implemented; and which such recommendations he plans to implement.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

The work capability assessment was introduced by the previous Government through the Welfare Reform Act 2007, for which the hon. Lady will doubtless have voted. There have been two independent reviews by Professor Harrington. We implemented, or are implementing, all his recommendations on how to improve the WCA.

[Joan Walley]

It is impossible to convey the distress, heartache and anxiety caused by this Government’s failure to get a grip on Atos. Whatever the Minister might say about the spirit of the Harrington recommendations, it is essential that he get back to me with clear details on the availability of audio-recording equipment, the recruitment of mental health champions in all offices around the UK, how we will ensure judges give full feedback to DWP decision makers, and advising sick and disabled claimants that they can submit evidence.

[Mr Hoban]

We are implementing the Harrington recommendations, so the things that the hon. Lady mentions are happening in assessment centres across the country. For example, audio recordings are available if people request them. Progress is being made, therefore, but the hon. Lady needs to recognise that it was the previous Government who set up the WCA and recruited Atos. We are trying to make the system work better and be fairer so as to get the right outcome for all claimants.

[Charlie Elphicke (Dover) (Con)]

Does the Minister welcome Professor Harrington’s comment in his latest assessment that things have noticeably changed for the better? I have heard it said that 40% of appeals are successful. Is that right, or is the proportion lower than that?

[Mr Hoban]

Professor Harrington has done a very good job. He will produce his third review shortly. The reality is that the DWP makes about 1 million decisions about entry into work, and only 9% of them have been successfully overturned.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

19. On the “World at One” on 11 October the Minister claimed that one of the reasons for so many successful appeals and wrong decisions was claimants withholding medical evidence. Given that the average time for assessment and appeal is 31 weeks—almost eight months—will he explain exactly what evidence he has for that assertion?

[Mr Hoban]

There are situations in which new evidence is brought forward by claimants. We all should recognise the importance of getting people into work, to give them the hope and the improvements in their well-being that work brings. We should also, therefore, all recognise the importance of finding ways to improve the system, and I would hope that the hon. Gentleman would welcome our efforts to improve it.

[Mrs Anne McGuire (Stirling) (Lab)]

Last week in Scotland, the Daily Record ran a story about Kieran McArdle and the death of his father, Brian. Brian was paralysed down his left side, blind in one eye and unable to speak properly, and yet was declared fit to work. Atos said in response that

“our trained doctors, nurses and physiotherapists strictly follow the guidelines given to them by the Government”.

Given the crescendo of complaints about the implementation of the work capability assessment, should the Minister not abandon his mantra that progress has been made and instead accept his responsibility and undertake a fast and fundamental review of the test, as called for by the shadow Secretary of State, my right hon. Friend the Member for Birmingham, Hodge Hill (Mr Byrne)?

[Mr Hoban]

Our condolences are with Mr McArdle’s family at this time, and I believe that the Secretary of State is writing to his son, Kieran, in response to his letter, which was delivered to the Department late last week. We know that going through the WCA process can be difficult for claimants and their families, but we and Atos go to great lengths to make it as fair as possible. That is why we are undertaking this process of refinement, taking the system left to us by the previous Government through the Harrington reviews and ensuring we improve it so that it is fair. The previous Government set up this system, and Opposition Members should not shirk responsibility for that.

[Mrs McGuire]

I am getting weary of the charge that this contract is somehow—[Interruption.] No; the reality is that we would not have managed the contract in the way this Government are managing it. Although the work capability assessments have been controversial to say the least, Atos, which delivered that contract, has recently been awarded two out of the three contracts for the personal independence payment. Did the company enhance its bid by naming disability organisations with which it would work, and what due diligence was done to test the authenticity of such assertions before awarding the contracts?

[Mr Hoban]

The right hon. Lady might be weary of that charge, but she will have to get used to hearing it. This Government are taking forward the changes that are necessary to get this system to work well. I think all Members on both sides of the House recognise one thing, however: as the evidence demonstrates, it is better for people to be in work where possible so that they can look after their families and provide dignity. That is exactly what we are trying to do in getting this process right. We are making progress, and we await Professor Harrington’s third review, which is due in the near future. Let me just say this to the right hon. Lady: when Atos bid for the PIP contract, it made it very clear that it would look to work with disability organisations to improve outcomes. We should try to work together on these matters, rather than make partisan political points.

[Mr Marcus Jones (Nuneaton) (Con)]

7. What steps he has taken to introduce a new sanctions regime for jobseeker’s allowance.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

A new sanctions regime for jobseeker’s allowance was introduced on 22 October. The new regime is clearer and tougher. For example, someone who has turned down a reasonable job offer three times in a year will lose their JSA for three years. Those who can work should work.

[Mr Jones]

I thank my hon. Friend for that answer. In my constituency, many low-paid, hard-working people get more than frustrated with this cohort of people who continually refuse to take up work. Will he go into a bit more detail about the sanctions now in place to deal with able-bodied jobseekers who continually refuse to take up work they are able to undertake?

[Mr Hoban]

My hon. Friend is right to highlight the frustration among those who are working at seeing people who can work turn down jobs and simply get away with it. That is why we have introduced a new, tougher regime of sanctions, so that someone who turns down a job without good reason for the first time will lose their benefits for 13 weeks. That then escalates so that someone who turns down a job three times in a year will lose their benefits for three years. That is a very clear sanction, it is a very clear deterrent and it sends a very clear message that we expect people who have reasonable job offers to work and pay their own way.

[Alison McGovern (Wirral South) (Lab)]

We are talking about sanctions, carrots and sticks, and the Work programme is supposed to help people back into work. A constituent who had been on the Work programme and recently found part-time work has contacted me. He was concerned that the Work programme had been little or no help and that, although his employment was due to his own hard work, the Work programme contractor was paid anyway. What has the Minister done to prevent this deadweight loss?

[Mr Hoban]

The hon. Lady should examine some of the schemes that the previous Government introduced, under which people were paid regardless of the outcome—regardless of whether they helped people get back into work. Our Work programme pays people by results; it ensures that contractors are paid only where people get jobs, and sustainable jobs at that.

[Lorely Burt (Solihull) (LD)]

8. What steps he is taking to protect members of pension schemes from being incentivised to transfer their pensions.

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[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

Since May 2010, more than 8.6 million claims for jobseeker’s allowance have ended, of which an estimated 68%—or more than 5.8 million—saw the claimant enter work.

[Mr Bone]

I have good news for the Minister: another 2,000 are coming off jobseeker’s allowance because of a new development in my constituency—well, between my constituency and the Corby constituency. It is supported by Wellingborough council, East Northamptonshire district council, Higham Ferrers council and Rushden council—all Tory councils—but it is opposed by Labour Corby council. Can the Minister explain that?

[Mr Hoban]

My hon. Friend makes an important point. When people think about how they should vote in Corby on 15 November, they will see that Labour is wrecking job prospects in that area.

[Andrew Gwynne (Denton and Reddish) (Lab)]

How many unemployed people now go through the fast-signing procedure at Jobcentre Plus and therefore do not get to see an employment adviser?

[Mr Hoban]

We must work out how much support jobseekers need to get into work to ensure that those who need the most support get into work quickly. The hon. Gentleman might also want to know that more people came off the unemployment register in Corby last month than in any other constituency in Northamptonshire.

[Diana Johnson (Kingston upon Hull North) (Lab)]

11. When he plans to announce the recipients of universal credit whose children will be eligible for free school meals.

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[Julie Hilling (Bolton West) (Lab)]

13. If he will make it his policy to begin monitoring the number of people who die as a result of (a) illness and (b) suicide whilst awaiting the result of employment and support allowance appeals.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

My Department publishes information on ESA appeals when they have been heard by Her Majesty’s Courts and Tribunal Service. We have no plans to capture or publish official statistics relevant to the specific circumstances described. In July, we published data on the number of deaths of incapacity benefits recipients. They include claimants awaiting appeal where benefit is still in payment.

[Julie Hilling]

With Atos failing on 40% of its work capability assessments, with an estimated 30 to 80 people dying each week between assessment and appeal, and with 6% of doctors surveyed reporting that they have patients who have either attempted or committed suicide as a result of work capability assessments, does the Minister not think that he has a duty to monitor the effect of his policies?

[Mr Hoban]

As I said in answer to earlier questions, we are monitoring the effect of our policies. We are ensuring that the work capability assessment is fit for purpose and that is why we asked Professor Harrington to carry out a third review to ensure that the process is right and fair. The hon. Lady should also remember that the work capability assessment is an assessment of people’s ability to work, not a diagnostic test.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

Will the Minister confirm that all Atos doctors, nurses and physiotherapists are fully trained and registered with their relevant professional body?

[Mr Hoban]

My hon. Friend is absolutely right. All Atos health professionals are properly qualified and they get additional training to help them undertake the work capability assessment.

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[Gavin Barwell (Croydon Central) (Con)]

15. What recent assessment he has made of the level of employment.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

There are more than 29.6 million people in work—the highest number since records began over 40 years ago.

[Gavin Barwell]

In my constituency, unemployment is down by nearly 10% since its peak in February this year. We clearly need to do better still. Does my hon. Friend agree that, contrary to some suggestions, the evidence shows that that is not down to an Olympic blip, but that we are seeing welcome progress month on month, with more and more people finding work?

[Mr Hoban]

My hon. Friend makes a good point. We have seen employment levels rise. Even if we exclude London in its entirety, we have seen the number of people in work increase by 500,000 since the general election.

[Wayne David (Caerphilly) (Lab)]

What assessment have the Government made of the increasing level of part-time employment?

[Mr Hoban]

The most recent unemployment figures indicated that 80% of people who work part time actually want to work part time. Many find that part-time work meets their needs in terms of flexible working and returning to the labour market. We need to find more full-time jobs, but we should recognise that 80% of people want to work part time and the labour market is able to accommodate them.

[Pauline Latham (Mid Derbyshire) (Con)]

17. What progress his Department has made on its plans to support separated families.

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[Gemma Doyle (West Dunbartonshire) (Lab/Co-op)]

21. What assessment he has made of the effectiveness of the youth contract; and if he will make a statement.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

The youth contract was introduced in April 2012 to provide additional support worth almost £1 billion to unemployed young people over the next three years. Although it is too early to make any judgments of its effectiveness, we have commissioned an external evaluation of the youth contract to examine delivery and outcomes, and the first report will be available early next year.

[Gemma Doyle]

I notice that the Minister gives a cautious response. Is it true that millions of pounds that we should be using to get young people into work are sitting unallocated and helping no one, because the Government cannot get employers on board with the youth contract?

[Mr Hoban]

A number of young people have been helped by various aspects of the youth contract. Twenty young people in the hon. Lady’s constituency have had work experience as a consequence of it, and another group has been helped into work as a result of the sector-based work academies. I hope that she is doing all she can in her constituency to champion the youth contract and to get more young people into work.

[Bob Blackman (Harrow East) (Con)]

23. What assessment he has made of results of the housing benefit demonstration projects.

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[Julian Sturdy (York Outer) (Con)]

T3. Like all hard-working taxpayers, I support the Government’s attempts to reduce benefit fraud. However, I have recently received correspondence from a terminally ill constituent whose support has been wrongly withdrawn. Will the Minister assure me that those who truly deserve support, such as my constituent, will benefit from our introduction of a fairer welfare system?

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

My hon. Friend makes an important point. That is exactly why we have been working with Professor Harrington to implement the findings set out in his report. One of his findings relates to cancer sufferers, which is why we published new guidance last month on how they should be treated under the work capability assessment.

[Fiona O'Donnell (East Lothian) (Lab)]

T6. Many of my constituents who devote a great deal of effort to providing Atos with detailed medical supporting evidence will be deeply disappointed with the Minister’s earlier answer. What steps is he taking to ensure that Atos takes full account of medical evidence when determining work capability assessments—

[Mr Hoban]

rose—

[Fiona O'Donnell]

I appreciate that the Minister is eager to answer and look forward to hearing from him. I ask that because at the moment Atos is simply ignoring that evidence.

[Mr Hoban]

What the work capability assessment does is assess people’s ability to work. It is a review of their capability and functionality, not a diagnostic assessment. That is why the assessment takes place. Of course, it is right that claimants bring along medical evidence, but it must be read in conjunction with the Atos assessment. Decisions about eligibility for employment and support allowance are made by DWP staff, not Atos.

[George Hollingbery (Meon Valley) (Con)]

T4. The Government have made it clear that although they are keen that most people should be able to deal with the direct payment of housing benefit, that will not be appropriate for all. Will my right hon. Friend reassure the House, and those outside who are concerned about women’s refuges and their futures, that direct payment may be waived in those circumstances?

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[Mr Stephen Hepburn (Jarrow) (Lab)]

T9. My local citizens advice bureau is getting 30 new work capability assessment cases every week, and 80% of them are won on appeal. That is because the Government are forcing sick people who have cancer or brain damage or who are dying back into work. It is a disgrace. When will this barbarity end?

[Mr Hoban]

As I have said a few times today—I will continue to say it—this process was put in place by the previous Government, a Government the hon. Gentleman supported. What we are looking to do is ensure that those people who can work get the support they need to get into work, rather than abandoning them to a lifetime on incapacity benefit, which he seems to think is the better option.

[Duncan Hames (Chippenham) (LD)]

T5. Is the disabilities Minister satisfied that the proposed descriptors for the personal independence payments adequately recognise the impact of Crohn’s disease, colitis and irritable bowel syndrome on the daily lives of our constituents who live with those conditions and the invisible disabilities that they endure?

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[Andrew Jones (Harrogate and Knaresborough) (Con)]

T7. What progress is being made to ensure that work capability assessments are sensitive to fluctuating medical conditions such as stroke care?

[Mr Hoban]

My hon. Friend makes a useful point. Professor Harrington highlighted in his second review the issue of fluctuating conditions. We are working on an evidence base to look at descriptors for fluctuating conditions, to make sure that they are taken properly into account in the work capability assessment.

[Dame Anne Begg (Aberdeen South) (Lab)]

When the Government started to move people from incapacity benefit to employment support allowance, provision was made for those who were particularly or very disabled so that they would not have to go through the work capability assessment and would go straight into the support group. However, a number of my constituents have been moved from incapacity benefit and on to the work-related activity group of ESA without first going through a work capability assessment. How widespread is this, how many people is it happening to, and why is it happening?

[Mr Hoban]

I would be grateful if the hon. Lady supplied me with the evidence she mentions. There are clearly situations in which people go straight into the support group without undergoing a work capability assessment. It depends on the information supplied when they originally make the application.

[George Freeman (Mid Norfolk) (Con)]

T8. The scandalously high rate of youth unemployment was perhaps one of the previous Government’s worst legacies, and my constituents warmly welcome the creation of 1 million new jobs and 600,000 apprenticeships. Does the Secretary of State agree that in rural areas young jobseekers face particular challenges in accessing small, fast-growing companies in the rural economy, and will he join me in supporting the local voluntary big society initiative launched by The Norfolk Way—it started a work club and enterprise bursary in which local entrepreneurs support jobseekers—in Mid Norfolk last week?

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

We have been told that Professor Harrington’s recommendations on the introduction of mental health champions to improve work capability assessments have been implemented, yet only two mental health champions cover the whole of Scotland and both of them are based in the central belt. What steps have Ministers put in place to measure the effectiveness of mental health champions?

[Mr Hoban]

We have introduced a mental health champion in every single assessment centre throughout the country. We have asked Professor Harrington not only to look at new changes, but to review changes that have already been proposed and to monitor their effectiveness. We will continue to follow that process.

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[Kate Green (Stretford and Urmston) (Lab)]

Ministers assured us that the flexibilities introduced for lone parents on jobseeker’s allowance under Labour would continue, yet the number of lone parents who have been sanctioned has risen dramatically. In a written answer on 24 October the Minister said that the reasons for sanctions were exactly the same as those for other jobseekers. Can the Secretary of State explain exactly how those flexibilities are being properly applied and what training is being delivered to personal advisers in Jobcentre Plus?

[Mr Hoban]

I think we all believe that it is important that where lone parents can work, they should work, because that helps to boost their income and that of their family. Guidance is given to personal advisers on jobseeker’s allowance to ensure that the sanctions regime is applied appropriately to lone parents, as in the case of all jobseekers.

[Mr Edward Leigh (Gainsborough) (Con)]

What, hitherto, has been the fraud and error rate in child benefit?

[David Wright (Telford) (Lab)]

How many people who have been medically retired from their jobs with severe conditions are being put through the work capability assessment and having their benefits attacked?

[Mr Hoban]

I do not have the precise figures to hand, but I will look into them and write to the hon. Gentleman. It is important to remember—I think there is agreement on both sides of the House about this—that working helps many people’s medical conditions; there is very strong evidence to support that. That is at the heart of the work capability assessment that Labour introduced when in government, and we are trying to sort out the problems with it.