Work Capability Assessment

Mark Hoban Excerpts

Monday 1st July 2013 Written Statements

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

Today the Government will publish a call for evidence as part of the fourth independent review of the work capability assessment (WCA), carried out by Dr Paul Litchfield.

The first three independent reviews were carried out by Professor Malcolm Harrington, and published in November 2010, November 2011 and November 2012. In the third review, Professor Harrington noted that much progress had been made, and that significant and lasting improvements were being put into place.

This call for evidence will be one of several methods used to gather information during the review. Evidence submitted will be used to inform Dr Litchfield’s report to the Secretary of State for Work and Pensions, which will be laid before Parliament before the end of 2013.

As this is the fourth independent review, this year’s call for evidence focuses on the impact of previous reviews, seeks new evidence and establishes where further improvements are needed.

The call for evidence runs until 27 August 2013.

I will place a copy of the call for evidence in the Libraries of both Houses. It will also be available on the Government’s website (www.gov.uk/DWP) later today.

Oral Answers to Questions

Mark Hoban Excerpts

Monday 1st July 2013 Commons Chamber

[Barbara Keeley (Worsley and Eccles South) (Lab)]

3. What assessment he has made of the most recent data on the performance of the Work programme.

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

Work programme performance has significantly improved; it is working. The numbers of people finding lasting work—at least six months for most people or three months for the hardest to help—has increased significantly from 9,000 in March 2012 to 132,000 in March 2013.

[Barbara Keeley]

Recent data on the Work programme show that it has failed to meet its minimum performance level in every category, and that the proportion of employment and support allowance claimants achieving a sustained job was less than a third of the minimum. Every week, I hear from unemployed people in my constituency who are desperate to find a job, and they are being utterly let down by this programme. What is the Minister going to do about it?

[Mr Hoban]

I just point out that in the hon. Lady’s area, the Work programme is exceeding its targets for young people aged between 18 and 24. She should get to grip with the facts on what is happening with the Work programme. It is helping people into work, and particularly in her area. On the point about ESA claimants, she should not forget that when her party was in government, it wrote those people off. This is the first time we have had a major programme to get people who have been out of work through sickness or ill health back into employment. More work needs to be done, but what we are doing is a significant improvement on how the Labour Government abandoned those people in the past.

[Nigel Mills (Amber Valley) (Con)]

Will the Minister join me in welcoming the improvements in performance of the Work programme providers that cover my constituency of Amber Valley? Notwithstanding that, there are clearly some areas of concern. Will the Department now use the market shift mechanism to make sure that those who are not succeeding will have more encouragement to improve in the future?

[Mr Hoban]

My hon. Friend is right. Although performance has improved significantly, more progress is needed. We aim to reward the best providers by shifting more referrals to them, and that will start happening on 1 August. At that time, at least 14 market share shifts will take place to encourage good performers and to send a message to those who are performing badly.

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

The Minister must be disappointed by the figures relating to employment and support allowance. The people concerned were not abandoned by the last Government; there was a programme called Pathways to Work, and the figures were far better then than they have been during the two years of the Work programme. Will the Minister please look into what is happening to this cohort with a sense of urgency? These people are being let down.

[Mr Hoban]

I disagree with the hon. Lady’s presumption that they are being let down. I have ensured that each provider has an action plan. We have also set up a “best practice group” to share information about what is working well, and to ensure that each provider gives the best possible service to this important group of people.

[George Hollingbery (Meon Valley) (Con)]

A couple of weeks ago I met George Gallop of A4e, who runs the Work programme in Southampton. He introduced me to two young people whose lives had been utterly transformed by the programme. It was truly inspirational. Does the Minister agree that we should be celebrating such successes, and spreading the techniques employed by Mr Gallop more widely around the country?

[Mr Hoban]

My hon. Friend is right. One important thing that we can all do is visit Work programme providers in order to understand what they are doing. I have been doing that since I took over this job in September. It is clear that lives are being transformed, and that people who might otherwise have been out of work for years are gaining employment as a consequence of the programme. We need to learn from what is successful, and spread best practice throughout the country.

[Fiona Mactaggart (Slough) (Lab)]

What does the Minister plan to do with people who come out at the other end of the Work programme? According to a letter that I have received from my local branch of Jobcentre Plus, the programme’s intensive regime will reduce the number of people on benefits, but will not increase the number of those in work. Will the Minister assure us that the activities involved in following up people who have been left without work on the programme will not include bullying them off benefits, and will include getting them into work?

[Mr Hoban]

It was the hon. Lady’s party, when it was in government, that established targets for sanctions on jobseekers—targets that the present Government scrapped.

A range of measures exist to support those who are leaving the Work programme and bring them closer to employment. However, we are also asking people to go into the jobcentre every day in order to receive one-to-one support, and I think we shall find that that is very effective.

[Mr Philip Hollobone (Kettering) (Con)]

A4e tells me that 38% of its Work programme clients in the east midlands are aged between 18 and 24, and that one of the biggest challenges that they face is the provision of inadequate or irregular transport services in rural areas, and bad bus services in particular. Is the Minister aware of that problem, and what work can he do with the Department for Transport to deal with it?

[Mr Hoban]

My hon. Friend has raised an issue that applies to a number of areas. Work programme providers, Jobcentre Plus, employers and transport companies have worked together well to improve transport links, and to ensure that as many people as possible can travel to a job that enables them to look after themselves and their families.

[Damian Hinds (East Hampshire) (Con)]

4. What contribution his Department has made to strengthening the social investment market.

--- Later in debate ---

[Richard Fuller (Bedford) (Con)]

7. What assessment he has made of the performance of the Work programme in helping young people into work.

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

Just under half the young people who had been on the Work programme for a year had work, and over 46,000 had had more than six months of work.

[Richard Fuller]

I do not know whether the Minister is as disappointed as I am at the sniping negativity of Labour MPs towards the Work programme, when what they should be doing is rolling up their sleeves and making it work in their constituencies. In that spirit, will the Minister applaud the 50 small businesses in Bedford which, working in conjunction with the two Work programme providers, will on 11 July be giving 200 young people the equivalent of a day of speed-dating interviews to give them a good restart in their careers?

[Mr Hoban]

That is a fantastic example of how local employers can work with the Work programme to deliver good outcomes for people and get them into work.

[Sheila Gilmore (Edinburgh East) (Lab)]

From this month, hundreds of jobseekers, including young people, will be returned to jobcentres. The DWP originally said they would be asked to come in weekly, but I think I heard the Secretary of State say they will be coming in daily, and the Chancellor of the Exchequer announced that new jobseekers will be coming in weekly. The problem here is that the National Audit Office has said job advisers are seeing far more jobseekers than ever before, that the time they spend with jobseekers is down, and that the DWP budget fell by 9% in last week’s spending review. Is this not just a lot of hot air? Is it not something that is not actually going to happen?

[Mr Hoban]

I remind the hon. Lady that over the last seven months the number of jobseekers has fallen. She has not welcomed that, but it is good news for her constituents and for people across the country. We want to make sure Jobcentre Plus advisers offer a good quality service. They do that, and I am very disappointed that a member of the Select Committee cannot see fit to thank Jobcentre Plus advisers for their hard work.

[Andrew Bridgen (North West Leicestershire) (Con)]

Will my hon. Friend confirm that job vacancies are at their highest level since 2008?

[Mr Hoban]

Indeed, they are at their highest level since 2008. That is why we have record numbers of people in work, record numbers of women in work, and a record number of hours worked. It is about time the Opposition welcomed that.

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

In the invitation to tender for the Work programme, the Minister’s Department said it expected providers significantly to exceed the minimum standards it had set out, but the facts are that they have not even reached the minimum standards, including for young people getting back into work, and that about half the providers have not even met the standards his Department said would be met without a programme in place. Is not the Minister even a tiny bit embarrassed?

[Mr Hoban]

I am pleased to be able to say that performance is improving. Across the country the performance of Work programme providers has improved, and about half of providers have significantly exceeded the minimum standards. That is why people are getting into work; that is why we are seeing lives transformed. I wish the Opposition would stop carping and congratulate the work the providers are doing to get people into work.

[Margot James (Stourbridge) (Con)]

18. Until recently, a significant part of the labour market, including young people, was referred to as unemployable. May I congratulate my hon. Friend and the Secretary of State on challenging this deeply negative assumption? To be getting 132,000 previously unemployed people into employment is a considerable achievement. Does my hon. Friend agree that the payment-by-results model has been instrumental in this achievement?

[Mr Hoban]

Under previous schemes, money was paid upfront to providers without much attention being paid to whether people got jobs and work. Under this scheme, the interests of taxpayers, the unemployed and providers are closely aligned, because providers get paid only if they get people into work for six months.

[Heidi Alexander (Lewisham East) (Lab)]

8. If he will take steps to ensure that work capability assessments better meet the needs of people with mental health problems.

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

We recognise the challenges in accurately assessing people with mental health conditions, and the potential vulnerability of such claimants. The previous Government built safeguards into the work capability assessment. We have introduced further improvements to ensure the process deals with people with mental health conditions fairly and accurately.

[Heidi Alexander]

In recent months, I have been in contact with a number of constituents with mental health conditions who tell me that the work capability assessment fails to recognise the nature and severity of their problems. In the light of the recent court case in which it was ruled that the current assessment process discriminates against those with mental health problems and autism, will the Minister stop the transfer of people with mental health conditions from incapacity benefit to employment and support allowance until the system is fixed for that group?

[Mr Hoban]

It is important to ensure that we get the right support in place for people. Not long after ESA was introduced under the previous Government, 33% of people with a mental health condition received the support allowance, but under this Government the figure has increased to 43%, so more people are getting the right support as a consequence of this assessment.

[Mrs Anne Main (St Albans) (Con)]

Will the Minister encourage a scheme that Mind had—the “way to work” campaign—under which people with spasmodic mental health illnesses could work flexibly? It was not taken up as well as it could have been by employers, and it would help people who are assessed as having periods of good health as well as ill health.

[Mr Hoban]

My hon. Friend rightly says that we need to find ways to help people with mental health conditions, and other conditions, back into employment—the work we do under the Work programme is part of that, but other interventions are also being made—because there is a strong link between work and good health outcomes.

[Nic Dakin (Scunthorpe) (Lab)]

23. Given today’s launch of Rethink’s Unfair WCA campaign, when will the Minister finally decide whether to implement the changes to the descriptors recommended over a year ago by the mental health charities?

[Mr Hoban]

Work is going on at the moment to test those descriptors, and we are working closely with the charities. Today also marks the launch of the call for evidence of the fourth independent review of the WCA, which recognises our commitment to improving on the system we inherited from the previous Government.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

Will the Minister examine the way in which people with mental and physical health problems are assessed before they are placed in their WCA, specifically by Seetec in my part of the world? Will he examine how appropriate the placement is after they have started, because in my experience such placements are often inappropriate and therefore do not benefit anybody at the end of the exercise?

[Mr Hoban]

The Work programme does not undertake the assessments; they are undertaken as part of the ESA process. It is in the interests of providers to ensure that they get people placed with the right employer, because that maximises the chance of that person staying in work and, thus, the provider getting paid for the right outcomes.

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

In May, Dr Greg Wood, an Atos-appointed doctor, made a series of specific allegations about failings in the WCA process as he saw it, as a doctor working for Atos. I asked the Prime Minister to investigate and I received a reply from the Secretary of State for Work and Pensions this week that made absolutely no reference to the specific allegations that have been raised. Does the Minister understand that one reason why there is such a lack of confidence in the Atos test is this complacent, contemptuous disregard for, and head-in-the-sand attitude towards, what is happening in the system?

[Mr Hoban]

I just point out to the hon. Gentleman that, as I said in response to the hon. Member for Scunthorpe (Nic Dakin), today we have launched a call for evidence for the fourth independent review of the WCA. That demonstrates our commitment to ensuring that we get this right, so that people get the right support, and that we continue to deliver the right outcomes for people going through this process.

[James Morris (Halesowen and Rowley Regis) (Con)]

It is encouraging that over the past three years the number of people with mental health conditions who have been put into the support group has trebled. Does the Minister agree, however, that we need constantly to monitor the effectiveness of the WCA, perhaps by working with mental health charities, to make sure that it is suitable for people with fluctuating mental health conditions?

[Mr Hoban]

My hon. Friend makes an important point. It is because we are committed to continuing to improve the whole process that we work with mental health charities. Since coming to office, I have had several meetings with charities to talk about what we can do, and this is why we are currently going through the process of assessing alternative descriptors, particularly for those with fluctuating conditions and mental health issues.

[Laura Sandys (South Thanet) (Con)]

9. What progress he has made on supporting disabled people back into work.

--- Later in debate ---

[Jessica Morden (Newport East) (Lab)]

10. What assessment he has made of the operation of work capability assessments; and if he will make a statement.

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

The work capability assessment is aimed at ensuring people out of work through ill health or disability get the support they need. It is under regular review and today the call for evidence for the fourth review is being launched.

[Jessica Morden]

In recent weeks, it seems that more of my constituents have been put in the work-related activity group without even having a face-to-face assessment. Will the Minister confirm whether the use of discretionary powers is increasing and will he reassure me that that is not a case of cutting corners to clear a backlog?

[Mr Hoban]

It depends on the information provided and if claimants are providing good-quality information through the ESA50, they can be referred without a face-to-face assessment. I would also point out that the proportion of people going into the support group has increased in recent times, particularly as a consequence of not using face-to-face assessments.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

11. What steps he is taking to encourage jobcentres to work with local employers and voluntary organisations.

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

Jobcentre Plus has a national network of employer relationship and partnership staff whose task is to work collaboratively with voluntary organisations to support more people back to work and encourage and support employers to open up their vacancies to the unemployed.

[Jesse Norman]

I thank the Minister for that reply. Newton Farm community association in my constituency has signed up a number of high-profile local people from both the private and the public sectors to mentor unemployed people in Herefordshire. Will he join me in congratulating the association and commending that spirit of self-help and mutual support? Will he also consider ways in which the Government can use jobcentres to offer further support to that and similar mentoring programmes?

[Mr Hoban]

I can not only join in the congratulations but say that the local jobcentre has a positive relationship with the Newton Farm community association. We want to do more work with local organisations to encourage people into work, and we are keen to support them in any way we can.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Many smaller voluntary organisations and social enterprises that signed up for the Work programme have had appalling experiences—some not even receiving a single referral—and they complain of being the fig leaf of local engagement for large companies, even though they know the local skills and job market best. What will the Minister do to improve their experience?

[Mr Hoban]

The Work programme providers argued for freedom and flexibility over who to contract with, but we have introduced the Merlin standard to govern the relationship between Work programme contractors and their subcontractors. If organisations have concerns about the way they have been treated by the Work programme providers, they should refer those concerns to the Merlin committee.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

Will the Minister join me in congratulating Jobcentre Plus in the Beverley and Holderness area on working closely with me in organising a jobs fair, which hundreds of local people attended; on the part it has played in ensuring that Beverley and Holderness has one of the highest figures on apprentice starts in the country; and on the fact that unemployment is now 3.5%? There has been a 20% drop in youth unemployment in my constituency in the past year.

[Mr Hoban]

I will join my hon. Friend in congratulating his local Jobcentre Plus on the work it has done. Jobcentre Plus does an excellent job in helping people into work, but of course helped by the private sector, which has created 1.3 million new jobs since May 2010.

[Stephen Timms (East Ham) (Lab)]

A key step for jobcentres will be the introduction of universal credit. A press release from the Secretary of State in May last year claimed that

“all new applications for existing benefits and credits will be entirely phased out by April 2014.”

Will the Minister acknowledge that jobcentres will still be handling new applications for existing benefits long after next April?

[Mr Hoban]

The right hon. Gentleman never ceases to amaze me with the number of questions he asks about universal credit. He knows exactly what the time scale is. We have said when the national roll-out will be completed and I thought he would have been delighted today that we have extended the roll-out to Wigan.

--- Later in debate ---

[Mary Macleod (Brentford and Isleworth) (Con)]

16. What assessment he has made of the performance of the Work programme in helping young people into work.

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

In my hon. Friend’s area, 1,700 young people have had more than six months’ work as a consequence of the Work programme, and two of the three Work programme providers in her area have significantly exceeded their targets.

[Mary Macleod]

One of the best ways to create and nurture aspiration in our young people is to have better careers advice and guidance in schools and further education colleges. What discussions is my hon. Friend having with other Ministers on this, and is there more that we can do to encourage young people to set up their own businesses?

[Mr Hoban]

My hon. Friend raises an important point. I have regular discussions with ministerial colleagues, particularly the Under-Secretary of State for Skills, on careers guidance and advice. A further education college in my constituency is setting a good example by having an employment adviser in the college who talks to young people about the opportunities that can flow from the courses they are taking. That kind of innovation is really important if we are to ensure that young people make the best of their qualifications.

[Kerry McCarthy (Bristol East) (Lab)]

I hope that Ministers will be aware of the excellent research being carried out by the Single Parent Action Network, which supports young single parents as well as older parents who are trying to get into work. Its recent report on the Work programme found that many barriers still exist to prevent them from getting work, including the lack of affordable child care. May I urge Ministers to look at that report and to acknowledge that getting into work is not so easy for people with child care responsibilities?

[Mr Hoban]

The hon. Lady raises an important point. We need to work with those organisations that support lone parents to see what more the Work programme can do to help them into employment. The Chancellor announced last week that we will be providing more support to lone parents in the two or three years before their child goes to primary school.

[Mr Peter Bone (Wellingborough) (Con)]

Does the Minister agree that what we really need for young people is jobs in the economy? Will he welcome what is happening at Rushden Lakes, a major new retail and leisure park that is currently going through its planning process? It will create thousands of jobs, many of them for young people, thanks to the leadership of the Conservative-dominated Government.

[Mr Hoban]

My hon. Friend is absolutely right. Labour did not believe that the private sector would create the necessary jobs to offset public sector job losses, but over the past three years, for every job lost in the public sector, three were created in the private sector. Labour criticises that, but we should congratulate the sector.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

T2. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Mr McCann]

Judging by the evidence of my constituency surgeries, the testimony of other Members and the number of successful appeals, it appears that Atos cannot tell the difference between someone who is sick and someone who is not. Given that that is the company’s job, when is the Secretary of State going to sack Atos?

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

As I have said in earlier responses, we are continuing to build on the system that we inherited from the previous Government. We have also had the fourth independent review of the work capability assessment and our own independent review, and we are seeing that the proportion of people going into the support group has increased in recent years.

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

T3. What assessment has my hon. Friend made of the number of people who have come off the main unemployment benefits since May 2010?

[Mr Hoban]

If my hon. Friend looks at the three main benefits—jobseeker’s allowance, employment and support allowance and lone parent income support—he will see that, since the general election, there has been a reduction of 300,000 in the number claiming those benefits. That is a consequence of the measures that we have taken to get people into work, and of welfare reform.

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

Will the Secretary of State tell the House whether he thinks the bedroom tax is proving a runaway success?

--- Later in debate ---

[Caroline Dinenage (Gosport) (Con)]

T6. A high percentage of employment and support allowance claims have been won on appeal because the claimant produced evidence that had not previously been made available. What can the Department do to encourage all relevant documents to be provided from the outset to save unnecessary costs and emotional stress?

[Mr Hoban]

My hon. Friend makes an important point. We ask claimants when we send out ESA50 forms to contact GPs and consultants so that we get the right medical information to help our decision makers reach the right outcome. I encourage GPs and others to take more time to send in the returns quickly so that we have the best information possible to make those decisions.

[Dan Jarvis (Barnsley Central) (Lab)]

T7. The pensions Minister knows that I have been in regular contact with the Pensions Regulator regarding the Carrington Wire pension fund. He also knows that I am grateful for his support in addressing concerns about the ability of some foreign-based multinational companies to renege on their pensions responsibilities to UK pension holders. What progress are the Government making on addressing that important issue?

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

A constituent of mine on jobseeker’s allowance who is actively seeking work was recently made to give up some of the volunteering he was doing. What good is an arbitrary 16-hour-a-week limit on volunteering by JSA recipients when what really matters is that they do whatever is best to increase their chances of getting a job?

[Mr Hoban]

There is no 16-hour-a-week limit on voluntary work, so let me slay that myth first. The important thing is that the jobseeker is actively seeking work, and advisers have some flexibility on that, but volunteering should not get in the way of trying to find a job.

[Mr William Bain (Glasgow North East) (Lab)]

The bedroom tax is causing councils enormous financial strain, as it is for hundreds of thousands of vulnerable people across the country. On 11 June the pensions Minister told me that the Government are not making monthly checks on how much discretionary housing payment money councils are spending. What will happen to hundreds of thousands of vulnerable people when the money runs out?

--- Later in debate ---

[Mr Speaker]

Order. We have got it.

[Mr Hoban]

There was a nugget buried in that question: the hon. Gentleman accepts, unlike those on his party’s Front Bench, that the Work programme is improving and getting more people into work. I am delighted by his support for it.

[Mike Crockart (Edinburgh West) (LD)]

What assistance can my right hon. Friend offer my constituent who, anxious not to be a burden on anyone, took a zero-hours contract? Although he generally works for significantly fewer than 16 hours, on the odd occasion that he does work for more than 16 hours his department suggests that he makes a new claim when cancelling the old one. How can that be right?

Work Programme Official Statistics

Mark Hoban Excerpts

Thursday 27th June 2013 Written Statements

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

The Department for Work and Pensions has today released official statistics covering the performance of the Work programme up to the end of March 2013, showing performance to the end of the second financial year of the Work programme .

The Work programme is designed to help people who are at risk of becoming long-term unemployed. Many of those being supported by the Work programme are in receipt of benefit for nine or 12 months before joining and are then supported over a minimum of two years.

The figures published today show the Work programme has significantly improved. A total of 132,000 jobseekers have escaped long-term unemployment and found lasting work—normally at least six months (three months or more for the hardest to help). This compares to 9,000 for the period up to the end of March 2012—a significant improvement.

The figures also highlight more people are getting into work within a year of joining the Work programme. The UK Statistics Authority has said that it does not regard the calculation by commentators that 3.5% of people got into work in the first year of the scheme as the most relevant figure on which to assess performance. It says that performance is better measured by counting how many people referred to the Work programme get into sustained work in their first year on the scheme on this measure, while just 8.5% of those who started the Work programme in June 2011 completed at least six months of work in their first year, this success rate has increased dramatically to 13.4% for more recent recruits who joined in March 2013.

Compared to many employment schemes under previous Governments, the programme targets the hardest to help into work, such as those claiming employment and support allowance. Some people have been out of work for more than 10 or 15 years, so it will take time to help them back. But the Work programme is offering them more support than previous employment schemes, and 6,000 of the harder to help have now found lasting work. We expect providers to deliver improving results as they share best practice.

Although many providers are now meeting their contracted levels for helping jobseeker’s allowance claimants, some are lagging behind. The Department intends to refer more claimants to better performing providers. We will be implementing market share shift in at least 16 instances. Implementation of these shifts will begin in August.

Employment, Social Policy, Health and Consumer Affairs Council

Mark Hoban Excerpts

Thursday 27th June 2013 Written Statements

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

The Employment, Social Policy, Health and Consumer Affairs Council met on 20 June 2013 in Luxembourg. I represented the UK.

There was a discussion on the European semester 2013 focusing on a number of documents linked to the European semester. The UK stressed the importance of the semester process in driving forward robust national labour market reforms and called on the Commission to share their staff working documents with member states in advance.

There was a separate discussion on youth employment. The UK cited its labour market flexibility and highlighted the youth contract and the work programme as key factors behind the fall in UK youth unemployment at a time when youth unemployment has risen in the EU.

The Council agreed a general approach on the European globalisation adjustment fund regulation (2014-20). The UK opposed this and stressed concerns about the efficiency of the instrument. There was also a progress report on the fund for European aid for the most deprived regulation.

The presidency secured Council agreement for a general approach on the proposed directive on minimum requirements for enhancing worker mobility by improving the acquisition and preservation of supplementary pension rights. The presidency provided updates on directives on equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation; enforcement of directive 96/71/EC on posting of workers in the framework of the provision of services; and gender balance among non-executive directors of companies listed on stock exchanges.

Ministers adopted two sets of Council conclusions on social investment for growth and cohesion and on women in the media.

Under any other business, the presidency provided updates on legislative files and preparations for the upcoming G20 Labour and Employment Ministers meeting and joint meeting with Finance Ministers. The Commission presented its legislative proposal on public employment services (PES) and the Lithuanian delegation outlined the work programme of their forthcoming presidency.

Employment, Social Policy, Health and Consumer Affairs Council

Mark Hoban Excerpts

Wednesday 19th June 2013 Written Statements

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

The Employment, Social Policy, Health and Consumer Affairs Council will be held on 20 June 2013 in Luxembourg. I will represent the UK.

The Council will finalise its contribution to the European Council to take place on 27 and 28 June 2013. The European semester 2013 discussion will focus on a number of documents linked to the European semester. There will also be a separate discussion on youth employment.

Council will seek a general approach on the European globalisation adjustment fund regulation (2014-20) and will provide an update on the fund for European aid for the most deprived regulation.

Council also seek a general approach on the proposed directive on minimum requirements for enhancing worker mobility by improving the acquisition and preservation of supplementary pension rights. There will be updates on directives on equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation; posting of workers in the framework of the provision of services; and gender balance among non-executive directors of companies listed on stock exchanges.

Ministers will consider two sets of Council conclusions on social investment for growth and cohesion and on women in the media.

Under any other business the presidency will provide updates on legislative files and other issues. There will also be information on public employment services (PES) and state of play regarding preparation for the G20 Labour and Employment Ministers’ meeting and joint meeting with Finance Ministers. Finally, the Lithuanian delegation will outline the work programme of their forthcoming presidency.

Work Capability Assessments

Mark Hoban Excerpts

Wednesday 12th June 2013 Commons Chamber

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

I congratulate the hon. Member for Edinburgh East (Sheila Gilmore) on securing the debate. I also thank her for being unusually helpful and supplying a copy of her speech to my office in advance. I hope that that will enable us to engage in a reasoned debate on how we are to introduce the audio recording of work capability assessments. It is important, and we must get it right. It accords firmly with our commitment to improving the WCA process continuously.

The interest in audio recording that has been expressed in parliamentary questions, freedom of information requests and, indeed, today’s debate demonstrates the importance of this issue. We fully appreciate the benefits of offering audio recording to those who request it as part of their face-to-face assessments, but, while we accept that there has been an increase in demand for its use, we must be sure that we understand the evidence base, including that relating to the value to claimants. Making knee-jerk policy is not an option. The evidence needs to be balanced against potential costs, and that is the process in which my officials are currently engaged. I shall say more about that shortly.

As the hon. Lady said, my predecessor, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), made a statement on audio recording back in February 2012. He said on that occasion:

“we will offer everyone who wants it the opportunity to have their session recorded.”—[Official Report, 1 February 2012; Vol. 539, c. 291-92WH.]

Since then we have striven to honour that commitment, and all those having face-to-face assessments have been able to request that their sessions be recorded.

The present policy is that claimants can ask for their assessments to be recorded, either by means of the service offered by the Department for Work and Pensions and Atos Healthcare or through the use of their own recording equipment. Requests for an audio recording, whether through the use of Atos Healthcare’s equipment or through the use of equipment provided by a claimant, must be made in advance when a face-to-face assessment is arranged. The purpose of that is to provide adequate notice so that recording equipment can be made available and ready for use.

[Martin Horwood (Cheltenham) (LD)]

A constituent of mine provided her own equipment for her son’s work capability assessment. One tribunal judged that it was admissible while another judged that it was not, because it was not clear that the nurse involved had given consent. Allowing claimants to provide their own equipment leads to complications. It would be much better if the equipment were clearly offered, and, indeed, if its provision became standard.

[Mr Hoban]

My hon. Friend is right to draw attention to how difficult it is for people to provide their own equipment, and to the importance of ensuring that proper controls govern such matters as consent.

Atos has access to 31 audio recording machines, three of which are currently being repaired. It also has access to 21 cassette machines which are on loan from the DWP. We constantly monitor the updating of audio recording assessments to ensure that the supply of the equipment meets demand.

Let me put our commitment into more context. Those who want an audio recording can request one, but a claimant has no legal right to an audio-recorded assessment, and neither the DWP nor Atos Healthcare has a legal obligation to provide an audio-recording service or equipment. Our commitment is based on our intention to provide the best possible service for claimants, but the unavailability of audio recording facilities does not mean that the WCA process can be delayed indefinitely. That could slow down the process unnecessarily. Since the introduction of audio recording, only nine requests have been refused owing to the unavailability of equipment.

As the hon. Member for Edinburgh East said, Professor Harrington’s first independent review of the WCA recommended that the Atos Healthcare pilot audio recording of assessments should be used to determine whether such an approach is helpful for claimants and improves the quality of assessments. In making that recommendation, Professor Harrington rightly noted the need to balance potential drawbacks such as the increased burdens on tribunals and the sharing of sensitive personal data, with potential improvements in both assessor and claimant behaviours.

Following that recommendation, the audio pilot took place in the Newcastle assessment centre during spring 2011. The pilot involved 500 claimants being offered the chance to volunteer to have their assessment recorded. The results of the pilot showed that less than half of those offered ended up having an audio recorded assessment and only a handful, less than 1%, requested a copy of their assessment.

The hon. Lady has raised concerns about the metrics we use when considering demand for audio recording. We feel that the metrics used are key in showing the exact demand during the pilot.

[Sheila Gilmore]

Perhaps the Minister was about to come to this point, but I am sorry that he has chosen simply to repeat the 1% figure without addressing the criticisms that have been raised—I have heard them from others, too. The context of the pilot made it difficult for people to get a copy and the pilot was then evaluated very quickly.

[Mr Hoban]

I do not think that it was that difficult to get hold of a copy. The recording might need to be held on a handheld device before it is transferred to a computer and a transcript is printed, but that does not stop people asking for a copy. I thought that was one point in the hon. Lady’s thoughtful speech that was not well substantiated.

The results also provided little evidence that audio recording of face-to-face assessments improved the quality of assessments. There was only limited evidence of improvement in the customer experience for some individuals. Of those who took part, fewer than half the claimants thought that audio recording would be helpful to them. Those are the key areas that Professor Harrington wanted to understand when he called for the original pilot. As a result the Department decided not to introduce audio recording of face-to-face assessments universally on the basis that a facility for all assessments would be extremely costly, with no apparent substantial benefit or improvement in the quality of assessments. We ensured that when claimants asked for an audio recording, we were in a position to provide that facility. That was not intended to provide a permanent solution, but it is important in helping to provide the evidence for further changes.

Let me say a little about current demand. Since the introduction of a limited audio recording facility in September 2011, fewer than 4,000 claimants have requested a recorded assessment. To date, Atos has conducted more than 2,000 audio-recorded assessments. During that period almost 1.5 million face-to-face assessments for both ESA and incapacity benefit reassessments have been completed. Therefore, the proportion of recorded assessments is less than 0.2% of all assessments carried out during the period. We need to continue to monitor that take-up, but universal recording for such low numbers does not seem prudent and might not provide value for money.

We have always been clear that the provision of a limited audio recording service is a temporary measure that needs to be evaluated fully before a final decision is taken on the future of the service. As I have already said, we need the evidence to show that investing potentially large sums of money into the provision of universal recording will improve quality and will be used by claimants.

We agree with the comments in Professor Harrington’s third report in which he expressed views about audio recording needing to improve the quality of assessments. He said that

“further monitoring and evaluation work needs to be completed before a decision can be made”.

That is why we have decided to extend the evaluation period until the end of the summer to allow us to gather additional data on quality and potential take-up for a subsequent robust decision on any potential future audio-recording provision. We now have a benchmark for current take-up but, as has been rightly pointed out, we cannot get a true comparison until we routinely let people know about its availability. I am pleased to say that we are therefore taking steps to boost awareness of audio recording.

The Department and Atos are in the process of amending written communications to claimants by updating the WCA AL1C form. The document is sent to claimants when they need to arrange a face-to-face assessment and will provide more information on how to arrange an audio-recorded assessment. We expect the revised form to be sent out to claimants by the end of next month, once the necessary changes have been made and the form has been cleared for use.

[Sheila Gilmore]

Perhaps the Minister might be able to explain why it has taken nearly two years to make that amendment. If I understood him correctly, he said that the evaluation of all this process was being extended to the end of the summer, so if the revised letter is not going out until the end of this month or the end of next month, there will be very little time to judge whether that has made any difference.

[Mr Hoban]

The volume of people going through the WCA on a monthly basis is significant—I believe that 100,000 claims are made for ESA every month—so it will not take long to find out the take-up rate, although we need to make sure that the pilot has the right amount of time to gather sufficient evidence. Earlier the hon. Lady was arguing in favour of a shorter pilot and now she is potentially arguing for a longer pilot in order to get the evaluation right, but she makes an important point.

In addition to the letter I mentioned, the Department has recently provided more information about the audio-recording facility on the “Inside Government” section of the gov.uk website. By ensuring that more people are aware of the facility we will get a much better picture of how many people are applying for an audio recording and a better assessment of the level of demand. The hon. Lady rightly made the point that we do need to understand what the demand actually is.

In the past, the Department has asked Atos Healthcare to apply a processing safeguard whereby requests for audio-recorded assessments should be accommodated within four weeks, and where that was not possible, the assessment should go ahead without a recording. However, during the remainder of the evaluation period, to help ensure that claimant expectation can be met, the four-week safeguard for requesting audio-recorded assessments has been removed. That will enable us to gather a fuller picture of demand and capacity, in order to inform a full and robust evaluation.

To conclude, we are continuing to evaluate the costs and benefits of the current approach, and will await the results of a further evaluation during the summer before making a further decision on the future of this service and how it can improve the WCA.

[Heidi Alexander]

rose—

[Mr Hoban]

I just want to finish these remarks.

Although I acknowledge the increase in audio recording and potentially the recommendation of Professor Harrington on this matter, we also need properly to evaluate the cost and benefits of the extension of recording. We are doing just that. By raising awareness of the service we will be able to gauge demand, assess usage of the recordings by claimants and tribunals—it is important to understand where tribunals want to see transcripts of recordings—and evaluate the wider impact on quality.

As a word of caution, I say that the original evaluation demonstrates a reasonable level of interest from claimants but a low level of take-up of the actual recordings and no impact on quality. I am determined, as I have made clear in debates in this House since I took on this role, to improve the WCA, but I am prepared to do so only where the benefits are demonstrable.

Question put and agreed to.

Welfare Benefits (EU Citizens)

Mark Hoban Excerpts

Wednesday 5th June 2013 Westminster Hall

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

I congratulate my hon. Friend the Member for Christchurch (Mr Chope) on securing the debate and trying to highlight some of the challenging issues we have to deal with. The Government are rightly concerned that our rules on migrants’ access to benefits should be robust. We already have strong rules to protect the taxpayer and the public purse from abuse and fraud. Those rules are fair and just, and I think they are entirely consistent with the freedom of EU citizens to work and to look for work here—I will come back to the issue of those who come here with no intention of working and the controls that are in place in that regard. The rules rightly ensure that migrants cannot get benefits if they have never worked here and have no intention of doing so.

Let me set out a bit of the background to assist my hon. Friend. European law says that an EU citizen can move to another member state if they are a worker, self-employed or a student, if they are seeking work or if they are self-sufficient. When EU nationals come to work in the hotels and guest houses of Bournemouth and Christchurch, it is that right that they are exercising, in the same way that UK nationals exercise their right when they go and work in other European Union countries.

European law also says that we must treat EU nationals who come here to work in the same way as we treat British nationals. We comply with that principle. EU nationals who work here and then lose their job can claim jobseeker’s allowance and housing benefit and, if they are temporarily unwell and unable to work, they can claim employment and support allowance.

EU nationals who come here to seek work are expected under EU law to be actively seeking work and to have a genuine chance of getting a job, and if they do, we say that they can claim jobseeker’s allowance. When people try to claim JSA, we apply a fair test to assess whether they are genuinely here to seek work—the habitual residence test. That test is applied to jobseekers whether they are EU nationals or UK nationals.

My hon. Friend is absolutely right that no member state can afford to support migrants who have no intention of working and contributing economically to the community in which they choose to live. There is no requirement under EU law to provide such support, nor should there be. EU law has not sought to harmonise benefit regimes, nor should it. As he rightly points out, those are matters for national Governments. Member states have their own benefit regimes, some of which are more or less generous to their citizens than ours. It is easy to see why some people feel that they can move, not to work, but to take advantage of what they think is more generous welfare support in another country.

EU law sets out rules for co-ordination between member states to ensure that people who are genuinely exercising their free movement rights are not disadvantaged. There is no free movement right for those who are economically inactive and have no intention of working but want to be supported by state funds. We cannot be expected to support those who move just to take advantage of different benefit regimes, and the public are rightly concerned that that is what would happen if we were not allowed to check the legal basis for someone’s residence in this country, which is the basis of the infraction proceedings against us.

[Mr Chope]

My hon. Friend the Minister uses the expression “no intention of working”, but all they need to do is show that they are applying for jobs and that they hope to be able to work. It is very hard to prove that they are not intending to work, particularly when his Department does not even have the information on whether they are British nationals.

[Mr Hoban]

I just say to my hon. Friend that when someone seeks to claim jobseeker’s allowance, they go through vigorous tests to identify whether they are looking for work. The only basis on which people receive benefit is by demonstrating that they are looking for work, which is why we have the habitual residence test. It tests not whether someone has popped across on holiday and decided to sign on while they are here, but whether they have any real intention to be here and work. That is why we ask a range of questions and why we are trying to strengthen the test, which I shall come on to in a moment. It was one of the commitments the Prime Minister made. I want to say more about the habitual residence test and the infraction process.

The Commission says that we discriminate against EU citizens when we apply the habitual residence test. We believe that we are following EU law correctly when we apply those rules. Rules in the residence directive explicitly allow us to protect our national finances and prevent migrants from becoming an unreasonable burden on our welfare system. When we ask people to satisfy the habitual residence test, we do so not on the basis of their nationality but on the basis that they have moved to the UK from abroad, even if they have previously lived here. We do so to protect our system from abuse. Why would a member state not want to protect its benefit system from abuse by checking that someone is legally resident before they make a claim? The advocate-general of the European Court, in giving his opinion on an Austrian case called Brey, said that

“the Court has held in various circumstances that Member States may require lawful residence before granting social assistance benefits, providing that such a requirement complies with EU law.”

That is exactly what we do when we assess someone’s right to reside as part of our habitual residence test. We treat each case on its own merits and consider the individual circumstances of the claimant. Our test is fair; it legitimately requires that a benefit claimant has a reasonable right of residence here and a degree of interconnection with and integration into UK society.

This is not the first time that someone has sought to challenge the habitual residence test. We have already successfully defended challenges to our test in our Supreme Court and the domestic courts. They found that the habitual residence test does not discriminate on the grounds of nationality and that its use is justified because it protects the public finances of the UK and prevents benefit claims by people who have no intention of working here at all. My concern and that of the Government, and the reason why we are fighting the case, is that if the Commission is successful in arguing its interpretation of the rules, it will open a new door that will mean that member states can no longer check that migrants meet national residence laws, thus extending free movement to inactive migrants who believe they can move to any member state and get social assistance benefits soon after arriving. That cannot be right, which is why the Government, the Secretary of State and I are determined to defend the test. We believe that we have strong grounds to win the argument in the Court.

My hon. Friend mentioned the measures that the Prime Minister announced to strengthen our position. I shall highlight two announcements, the first of which was on time-limited access to benefits. Under EU law, someone has a right to reside as a worker or a jobseeker only if they are “continuing to seek employment” and have a

“genuine chance of being engaged”.

It is not unreasonable to take the view that if someone has not found a job within six months, that right should terminate. At the moment, we expect that most jobseekers will find a job within six months. The Home Office will amend the regulations to create a statutory presumption that EEA nationals who are coming to look for work in the UK or who have lost their job will no longer be exercising their free movement right of residence as a jobseeker after six months, unless, in line with EU law, they demonstrate that they are actively seeking work and have a genuine chance of getting a job. Most jobseekers will find work quite quickly—within six months. It is hard to demonstrate after six months that they have a genuine chance of getting a job.

The other announcement was on strengthening the habitual residence test. We will continue our work to ensure that our decision making when assessing whether someone satisfies the test is consistent and fair. We are improving the test, as the Prime Minister said, by increasing the range and depth of evidence that advisers collect from claimants and making it easier for advisers to tailor the questions to someone’s circumstances. Those improvements will support our argument that our test is robust and that our decisions are fair and comply with EU law.

My hon. Friend asked about language skills and the assessment of the genuine chance of finding a job. We will assess whether language skills are a barrier to work, as part of the habitual residence test—it is built into the test. He also commented on the fact that we are in discussions with our European neighbours. My right hon. Friend the Secretary of State for Work and Pensions has been in Germany to meet his opposite number, the Deputy Interior Minister. The Home Secretary will raise these issues with other Interior Ministers at the Justice and Home Affairs Council over the next week. I am going to the Netherlands this evening to talk to my opposite number about how we can work together more closely. There are clear concerns in a number of member states that the Commission is seeking to extend its influence in this area and subvert the right of free movement, which is widely supported in member states. We need to continue to work with our allies, demonstrate a need for change and recognise the concerns expressed across a wide number of member states about the Commission’s role.

My hon. Friend started his speech by talking about the broader issues of access. I am sure that he will welcome the immigration Bill announced in the Queen’s Speech, which will tighten access to the NHS and controls on private landlords letting property to tenants from overseas. The Government are taking steps to tighten access to not only welfare benefits but other public services, which is an important part of our approach.

[Mr Chope]

Does my hon. Friend not agree that it would be much better if we could do all that under our own control? If we were outside the European Union, we would be able to make such decisions ourselves, instead of being beholden to the European Commission, which, from the way he has described the infraction proceedings, is wholly intransigent. I sympathise with him. For all the effort he is making, he is banging his head against a brick wall; there is no give on the part of the European Commission. Does there not come a time when the British people have to say, “Enough’s enough. If you do not concede anything, we will leave”?

[Mr Hoban]

My hon. Friend is being uncharacteristically defeatist. We can make progress, which is why we are engaging with other member states. The support among other member states—we were party to the Brey case—demonstrates to the Commission how much concern there is. Member states can take the initiative to change the regulations, and we need to demonstrate to the Commission that there is support for that. I fully support the Prime Minster’s policy. We need to have the renegotiation and put the outcome of that renegotiation to the people in a referendum when we win the next general election. That is the right approach. We need to build alliances with other member states; we are not alone in our concerns. My hon. Friend will be relieved to know that other member states share his concerns exactly.

I hope that from my remarks this afternoon my hon. Friend sees that the Government are actively taking steps to protect our position not only in domestic law, by strengthening the habitual residence test through the new rules and the presumption about someone being out of work for six months, but by defending the matter strongly in the Court and building alliances with other EU countries. Our approach is right.

[Mr Chope]

If it does not give in, will we leave the European Union?

Oral Answers to Questions

Mark Hoban Excerpts

Monday 20th May 2013 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

1. What steps he plans to take to implement the recommendations made by Professor Harrington in his final report on the work capability assessment in November 2012.

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

As with each of Professor Harrington’s reports, we have adopted all recommendations to improve the process we inherited from the previous Government. We are in the process of implementing those recommendations.

[Ann McKechin]

The Minister will be aware that the rate of successful appeals has actually increased, which would appear to suggest that the reforms to the system are not yet working. Does he intend to investigate the claims made by Greg Wood, a former medical assessor for Atos, who said that the system was skewed against the claimant and made several serious allegations about how people’s claims were assessed?

[Mr Hoban]

As I said, we are in the process of implementing Professor Harrington’s recommendations. I would make the point to the hon. Lady, however, that when her party was in government, one in 10 people received the full employment support allowance, but as a consequence of our reforms three in 10 people now receive it, which demonstrates that the system is an improvement on the one that we inherited.

[Charlie Elphicke (Dover) (Con)]

I thank the Minister for that answer. Does it not indicate that the Government take ESA very seriously and are being diligent in providing unconditional support to those who need it?

[Mr Hoban]

My hon. Friend is absolutely right. I want a system that gives the right support to the people who need it the most. We should also recognise that because of our reforms and improvements to the process, only 15% of fit-for-work decisions are successfully overturned.

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

Will the Minister explain the successful appeals? What factors underlie the success rate?

[Mr Hoban]

The tribunal has published a list setting out the reasons appeals are successful. In most cases, it is a consequence either of oral evidence presented at the tribunal or newer evidence being presented.

[Greg Mulholland (Leeds North West) (LD)]

The Minister will be well aware that there have been issues of public confidence in Atos ever since it was first commissioned to do this work by the last Government. Are the Government looking into and making progress on Professor Harrington’s alternative assessment process for those with hidden and fluctuating conditions, which is a very important area?

[Mr Hoban]

My hon. Friend raises an important issue. As a consequence of Professor Harrington’s recommendations, we are considering a range of different descriptors. We are working closely with medical experts and charities to assess those descriptors and will report later in the year on the effectiveness of the programme.

[Paul Uppal (Wolverhampton South West) (Con)]

2. What recent assessment he has made of the new enterprise allowance.

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

I believe that the new enterprise allowance has been very effective in helping people set up their own business. As at the end of November last year, 31,540 have received or are receiving support from a mentor, and more than 15,000 have commenced trading. As my hon. Friend knows from his own experience, self-employment not only enables people to take responsibility for themselves and their family’s welfare, but gives others the chance of a job as the business grows.

[Paul Uppal]

Does my hon. Friend agree with me— I speak as somebody who ran their own business for 20 years before coming to this place—that the role of volunteer business mentors is crucial in that step between the classroom and self-employment?

[Mr Hoban]

My hon. Friend is absolutely right. I congratulate the voluntary mentors who are taking their role seriously, helping people to get into work and identify ways of setting up their own business. On Thursday, I was in Bradford talking to a group called Inspired Neighbourhoods, which promotes self-employment in its area and provides many voluntary mentors to help people take advantage of those opportunities.

[Bill Esterson (Sefton Central) (Lab)]

Given the difficulties and challenges in setting up a business, does the Minister agree that it is essential that the advice given ensures that people can succeed, so that they do not end up in a worse situation than if they had not gone down that route in the first place?

[Mr Hoban]

The hon. Gentleman is right. That was one of the lessons from Inspired Neighbourhoods, which sat down with people and said, “This is the amount of money you need to make from your business to ensure you become free from benefits and help your family to look after themselves.”

[Mr Rob Wilson (Reading East) (Con)]

21. I am sure my hon. Friend will join me in welcoming last week’s employment figures, which show that the number of people claiming jobseeker’s allowance in Reading East is now at its second lowest level since February 2009. Given Labour’s poor track record of securing sustainable employment, does he agree that the Opposition’s proposed job guarantee would fail to provide as many positive outcomes as the new enterprise allowance?

[Mr Hoban]

My hon. Friend is absolutely right to highlight the fact that the number of people claiming JSA fell by 7,000 last month, which also saw the 11th consecutive monthly fall in the number of young people claiming jobseeker’s allowance. The measures we are taking demonstrate the effectiveness of our programmes, particularly the new enterprise allowance.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Will the Minister explain why people on the Work programme are not allowed to take up the new enterprise allowance and why he does not do more to encourage Work programme participants into self-employment?

[Mr Hoban]

The hon. Lady should be aware that a large number of Work programme providers see self-employment as a route out. For example, I know from talking to Avanta, which operates the Work programme in the north-east and elsewhere, that it sees lots of opportunities for people to get into self-employment and supports them to do so.

[Mr Julian Brazier (Canterbury) (Con)]

Does my hon. Friend agree that, as well as providing opportunities to get into self-employment, the small businesses generated are potential generators of many jobs? Has he seen the academic work showing that in business cycle after business cycle, small businesses created during a recession have a much higher chance of survival than those created at other points in the cycle?

[Mr Hoban]

That is a very good point. When I have visited jobcentres, I have seen examples of people who have created employment opportunities for themselves and others as a consequence of setting up their own business. That is a testament to the strength and resilience of the sector.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Minister realise—I tell him this as someone who has employed a lot of people in social enterprise—that social enterprise is also a good destination for entrepreneurs? Is he aware of the critical importance of high-quality mentoring? I know he went to Bradford; he could have come to Huddersfield to see the Enterprise Foundation. The quintessential success of that operation was down to good mentoring and trained mentors who carry on mentoring over the long term.

[Mr Hoban]

Indeed. I went to Portsmouth last month to see the Cathedral Innovation Centre, which was working with people from the Royal Society of Arts and Portsmouth university business school, as well as volunteers, to provide the right sort of mentors to enable social enterprises to get set up and be successful.

[Sheila Gilmore (Edinburgh East) (Lab)]

3. What financial support his Department makes available to sick and disabled people while their claim for employment and support allowance undergoes mandatory reconsideration prior to the formal appeal.

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

Jobseeker’s allowance is available to those found fit for work. Alternatively, employment and support allowance can be paid for those who subsequently decide to appeal. ESA can be backdated to include the reconsideration period. Those who are put in the work-related activity group, but appeal because they want to move to the support group, will continue to be paid ESA at the assessment rate, as now.

[Sheila Gilmore]

I thank the Minister for that answer. A number of my constituents who have claimed for JSA have been told that they are not fit for work—they have a medical certificate—and are therefore not eligible because they are not available for work. What are people supposed to do in that situation? Will it not drive them into the hands of payday lenders?

[Mr Hoban]

First, if someone is found fit for work, they should be eligible for jobseeker’s allowance. The hon. Lady will be aware, as I am, of some of the hardship arrangements that are in place to help people, but it is absolutely right to try to encourage those claiming incapacity benefit to be reassessed, to ensure that those who are fit for work can get back into work, rather than be written off and face a lifetime of inactivity, as happened under previous Governments.

[Jane Ellison (Battersea) (Con)]

More broadly, when the Select Committee on Work and Pensions looked at this issue, we were interested in claimants’ experience of face-to-face interviews and, in particular, claimants with mental health problems. Will the Minister update the House on his assessment of those areas?

[Mr Hoban]

As a member of the Work and Pensions Committee, my hon. Friend speaks knowledgeably about this issue. When the employment and support allowance was introduced under the previous Government, a third of those with a mental health condition received it. As a consequence of the reforms we have introduced, that number has now gone up to 43%.

[Mr Peter Hain (Neath) (Lab)]

Is the Minister aware of the representations that I have made to the Secretary of State about a constituent of mine who has been suffering from mental illness for 13 years? Three months before his Atos test, he tried to commit suicide. Nevertheless, he was immediately refused a continuation of his benefit and was put into the limited liability group. Does the Minister not realise that there are some horrendous cases of punitive action being taken against people who are completely innocent in this respect? That constituent was without any visible means of income, and I had to refer him to the food bank in order to prevent him from starving. Is the Minister proud of such consequences of his policies?

[Mr Hoban]

I remind the right hon. Gentleman that he was in the Government who introduced the work capability assessment and the employment and support allowance. I have set out the improvements that we have made to the system that we inherited from the previous Government, which was not working. We are continuing to make reforms, and that is demonstrated by the fact that the proportion of people claiming employment and support allowance has tripled under this Government.

[Mr Philip Hollobone (Kettering) (Con)]

I am afraid that appeals to tribunals following refused ESA claims are taking far too long. The Leicester office, which deals with appeals from my constituents, now has a waiting list of 40 weeks. I know that this is not the responsibility of the Minister’s Department, but will he liaise with the Ministry of Justice to get this sorted out as quickly as possible?

[Mr Hoban]

I agree with my hon. Friend that the whole process is taking far too long. We are working closely with the Ministry of Justice to reform the system and ensure that appeals can be heard more quickly. We are also working with charities to see what additional support we can give to people claiming employment and support allowance, to ensure that the right information is made available as soon as possible to enable claims to be processed as quickly as possible.

[Ian Paisley (North Antrim) (DUP)]

What would the Minister say to my constituent, Philip Gillespie, who served our nation in Afghanistan and lost his right leg in an explosion there? Last month, he lost his disability living allowance and was told that he would be caught up by the new military system that is soon to be put in place. I hope that he will be caught up by it, but will the Minister ensure that this never happens again, and that a soldier serving his nation is never refused a benefit to which he is entitled?

[Mr Hoban]

I am not familiar with the details of the case to which the hon. Gentleman refers, but we are working on arrangements with the Ministry of Defence and, in future, such cases will be dealt with by the Ministry rather than by the Department for Work and Pensions. However, the assessment is about functionability, not about someone’s condition. The old system, under which people were judged on their condition, resulted in many people being written off for decades because of their illness.

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

4. What assessment he has made of the arrangements for offshore safety inspections in the North sea.

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

I meet the chairman and chief executive of the Health and Safety Executive regularly to discuss health and safety matters, including those relating to the offshore sector, as appropriate. The departmental Select Committee and the Maitland review, which was commissioned after the Deepwater Horizon episode, both concluded that we had a strong offshore regulatory system.

[Tom Greatrex]

The Minister will be aware—or at least he should be—that next month will be the 25th anniversary of the Piper Alpha disaster, which precipitated the present health and safety approach taken in the North sea. Does he share the concern expressed by the trade unions operating in the North sea that the Health and Safety Executive’s energy division was set up without any consultation with the unions, and that the division undertakes not only offshore inspections but others as well? Will he guarantee that neither the number of inspectors available to conduct offshore inspections nor the number of such inspections will change as a result of this?

[Mr Hoban]

We have brought together various aspects of the energy sector in a single department. That bringing together of complementary skills is a sensible response to the increased diversification of the energy sector. I can assure the hon. Gentleman that there is no slackening of focus on the offshore sector; indeed, we are recruiting more offshore inspectors.

[Roger Williams (Brecon and Radnorshire) (LD)]

5. What assessment he has made of the effects of planned changes to the state pension on women born between April 1952 and April 1953.

--- Later in debate ---

[Mr Christopher Chope (Christchurch) (Con)]

14. What steps he is taking to reduce the eligibility to UK benefits of nationals of other EU member states.

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

We are taking steps to tighten further the rules relating to all migrants, not just new migrants. We are strengthening the habitual residence test; the Home Office is creating a statutory presumption that European economic area jobseekers and workers who are involuntarily unemployed will not have a right to reside here after six months unless they can demonstrate they are actively seeking work and have a genuine chance of finding a job; and we will prevent those with no entitlement to work in the UK from claiming contributory benefits.

[Andrea Leadsom]

Does my hon. Friend agree that it may be a good idea in the longer term to consider a more contributions-based system of benefits for all? One of the biggest problems for many people is although they may have worked and paid into the system for many years, if they are out of work for a period they receive little more than someone who turned up only last week.

[Mr Hoban]

My hon. Friend raises an interesting point, but she might be aware that in a contributory benefits system those benefits can be exported to other EU member states, and she may think that is a disadvantage of the contributory system.

[Mr Chope]

Why do the Government not insist that out-of-work benefits paid to non-United Kingdom citizens should be paid at the rate of benefit prevailing in the claimant’s home country? Should we not insist on that being a red line in the welcome forthcoming renegotiation?

[Mr Hoban]

My hon. Friend is aware that we are, in part, operating within a framework determined by the European Union. My right hon. Friend the Secretary of State met his German counterpart last week, and further meetings are planned for next month with European employment Ministers to discuss these very issues.

[Gavin Williamson (South Staffordshire) (Con)]

9. What steps he is taking to help pensioners.

--- Later in debate ---

[Mr Stephen Hepburn (Jarrow) (Lab)]

12. What assessment he has made of the effect of sanctions on jobseeker’s allowance claimants.

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

Sanctions have played a key role in ensuring that jobseekers meet their commitments to the taxpayer in return for jobseeker’s allowance, and 40% of claimants say that they are more likely to look for work due to the threat of a sanction.

[Mr Hepburn]

In my constituency, the number of jobless people chasing each vacancy is more than double the national average, yet my local citizens advice bureau informs me that there has been an increase in the number of people who have been to see it who have been kicked off benefits because of sanctions. When will the Government—more specifically, the Tories—stop demonising the unemployed for not having a job, and when will they stop this relentless war against the poor?

[Mr Hoban]

I point out to the hon. Gentleman that there are people in his constituency who are paying their taxes and working, and who expect jobseekers to do all they can to look for work, so that they can look after themselves and their families. That is the contract that underpins the welfare state—the contract that the previous Government signed up to; I am surprised that he seems to be backing away from that.

[Barry Gardiner (Brent North) (Lab)]

13. What redress is available to tenants whose landlords seek to evict them on the grounds that they are housing benefit recipients subject to the benefits cap.

--- Later in debate ---

[Jason McCartney (Colne Valley) (Con)]

T5. I am proud to have given full-time jobs to two young people who did some short-term work experience in my constituency office. That was work experience, not an internship. What evidence has my hon. Friend that work experience helps people get back into work?

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

An evaluation that we published last year shows that young people who have had work experience have a better chance of getting off benefit and into work. I am grateful to everybody, including my hon. Friend, who makes available work experience places to give young people a chance to get out of unemployment and into employment.

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

Can the Secretary of State give the House his personal forecast for when this year’s allocation for the discretionary housing payment fund will run out?

--- Later in debate ---

[Mr Hoban]

My hon. Friend will recognise that we have seen a big fall in the number of people who are out of work and a reduction in the number of people claiming the main out-of-work benefits. I am confident that our reforms to universal credit will further improve the lives of those who are out of work and those who are on low incomes.

[Paul Flynn (Newport West) (Lab)]

T2. For many, retirement is a welcome liberation from demeaning drudgery. For others, it is an unwelcome end to their useful lives, often leading to ill health. What are the Government doing to ensure more choice in the age of retirement?

--- Later in debate ---

[Alex Cunningham (Stockton North) (Lab)]

T3. I keep hearing of homeless people having particularly difficult and negative experiences of the Work programme. Crisis has told me of a woman who lives in a hostel and has serious mental health problems, some of which relate to being homeless, yet she was referred to a sub-contractor specialising not in mental health, but in learning difficulties, who was obviously no use to her whatsoever. What will the Secretary of State do to sort out the people who are supposed to be offering services and support that are appropriate to people’s needs and end the failure of his Work programme?

[Mr Hoban]

There are some excellent examples of how the Work programme has worked with people who are homeless and those who have mental health problems. The important thing is to learn from where practice is excellent. We will ensure that that happens and that good practice is shared.

[Nigel Mills (Amber Valley) (Con)]

T9. Will my hon. Friend please update the House on what recent assessment she has made of the number of Remploy staff who have made it into employment or training?

--- Later in debate ---

[Richard Burden (Birmingham, Northfield) (Lab)]

T8. The Secretary of State and his ministerial colleagues have taken a number of questions on Atos and the work capability assessment, and I think that many people listening to these proceedings would consider their answers relaxed to the point of complacency. Does he recognise that people who have intermittent, real problems with working—people with brain damage and with mental health problems—are not being served properly by the work capability assessment? Does he recognise that this is a problem, or not? If he does, what, in practice, is he going to do about it?

[Mr Hoban]

The hon. Gentleman needs to remember that his party in government introduced the work capability assessment, so Labour Members cannot shirk their responsibilities. Since we came into office we have implemented the findings of Professor Harrington, and the fourth independent report is under way. The proportion of people going into support groups has tripled under this Government. That is a consequence of the reforms that we have introduced to fix a system that the previous Government created.

[Guto Bebb (Aberconwy) (Con)]

T10. Will the Minister join me in welcoming last week’s figures from the Office for National Statistics showing a fourth consecutive quarter of significant growth in the employment of UK nationals? Will he contrast that performance with the performance of the previous Government between 2004 and 20011, when we saw a significant increase in the employment of non-UK nationals in the economy?

[Mr Hoban]

The former Prime Minister used to bang on about British jobs for British workers, but in reality the majority of new jobs went to non-UK nationals. We have reversed that trend, and now nine out of 10 new jobs go to UK nationals.

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

A constituent of mine who lives in Haddington was recently asked to attend a tribunal for her disability living allowance in Glasgow, which, because she had to use public transport, would have meant a round trip of six hours. That is not only unacceptable for her but places a strain on welfare rights in my constituency. Does the Minister think that that is acceptable?

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

I know that Ministers want to be on the side of those who work hard to get on, including a constituent of mine—about whom I have written to the employment Minister—who worked hard for many years before undergoing chemotherapy for blood cancer. Two years ago he spent a month between jobs, during which time he chose not to claim benefits, but he has been told by the benefits office that, as a result of this gap in his contribution history, he is not eligible for contributory employment support allowance. Will the Minister meet me so that we can examine this case and try to make sure that rigid bureaucracy does not prevent us from helping people in such situations?

[Mr Hoban]

I would be happy to meet my hon. Friend to discuss the case in more detail.

[Julie Hilling (Bolton West) (Lab)]

A recent judgment said that homeless people using night shelters are not eligible for any housing benefit payments. Given that night shelters will not be able to continue without an income from their service users, what action is being taken to address this problem?

Mesothelioma Bill

Mark Hoban Excerpts

Friday 10th May 2013 Written Statements

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

Yesterday the Government introduced the Mesothelioma Bill. The Bill provides for the introduction of a “diffuse mesothelioma payment scheme” to make payments to people with diffuse mesothelioma who were exposed to asbestos either negligently or in breach of statutory duty by their employer in the United Kingdom and who are unable to bring a claim for damages against a relevant employer or that employer’s employers’ liability (“EL”) insurer. In addition to the proposed payment scheme the Bill provides for a technical committee to be established, which will make binding decisions in disputes between an EL insurer and a person with diffuse mesothelioma about whether the insurer was providing EL cover to a particular employer at the time the person with diffuse mesothelioma was negligently exposed to asbestos.

This Bill meets the commitment made in our response to the previous Government’s consultation, published on the 25 July 2012:

https://www.gov.uk/government/consultations/accessing-compensation-supporting-people-who-need-to-trace-employers-liability-insurance.

In addition to the proposed payment scheme and technical committee the consultation response detailed proposals to compel membership of the Employer Liability Tracing Office (ELTO). We have looked at this proposal closely and have concluded that, while this is not possible, we can still achieve the desired outcome of helping more people to successfully trace an insurer against whom to bring a claim.

The Financial Conduct Authority are considering requirements around the tracing of EL insurance policies that will mirror those that are operated by ELTO which should result in more evidence of cover being passed to people with mesothelioma. The Government consider that these measures combined will result in an overall improvement in the tracing of EL insurance policies.

In addition to this written ministerial statement we are publishing the impact assessment and delegated powers memorandum that accompany the Bill. These detail the costs and benefits for the proposed payment scheme and also explain the rationale for the delegated powers we have included in the Bill. Copies of these documents will be available in the Vote Office and Printed Paper Office.

The consultation response also included various measures to do with the process that a person with diffuse mesothelioma has to go through in order to bring a civil claim for damages. The Ministry of Justice will be consulting on these measures in 2013. The consultation will look at matters such as the proposed pre-action protocol (PAP), claims portal and a fixed costs regime in relation to mesothelioma claims.

Later today I will place a copy of the relevant older papers, impact assessment and delegated powers memorandum in the Libraries of both Houses.

Work-Focused Health-Related Assessment

Mark Hoban Excerpts

Thursday 25th April 2013 Written Statements

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

The work-focused health-related assessment (WFHRA) was introduced in October 2008, as part of the employment and support allowance process, to allow claimants to explore with an independent healthcare professional (HCP) their perceptions about work and potential obstacles to employment.

External evaluation found that the WFHRA was not delivering the intended outcomes and it was decided in July 2010 that it should be suspended for a period of two years. We now believe that a further period of review is necessary to properly evaluate the impacts of both the work programme and universal credit systems. As such we are extending the initial suspension period of the WFHRA for a further three years, starting immediately.