Disabled People and Economic Growth

Marsha De Cordova Excerpts

Thursday 22nd February 2018 Commons Chamber

[Marsha De Cordova (Battersea) (Lab)]

Let me begin by congratulating the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) on securing this important and timely debate. I commend her for the work she has led on the all-party parliamentary group for disability.

I would like to extend my thanks to a number of disability organisations, including Disability Rights UK, the Royal National Institute of Blind People, Scope, Leonard Cheshire Disability and Action on Hearing Loss, for all the work they have done on improving employment opportunities for disabled people and for the important briefings they have provided for today’s very important debate.

There are currently around 11.6 million disabled people in this country—people like me, who have factors that could act as a barrier to engaging in a wide range of valued activities, and not just economic activity, which is the focus of our debate. Disabled people make up around 16% of the working-age population, yet we face barriers in all aspects of life, including in education, transport, access to justice, access to voting, housing, health and, most importantly, employment.

Almost eight years of Tory austerity have had a disproportionate impact on disabled people. We know that half of those who live in poverty are disabled or live with someone who is disabled, in part because of the additional cost of their disability, but also because the labour market does not work well for disabled people who are able to work.

The duty to make reasonable adjustments to support disabled people in accessing education, employment, housing, and goods and services is a key feature of the Equality Act 2010. However, we know from the 2015-16 House of Lords report on the Equality Act and disabled people that the legislation needs firm Government action to ensure that it is strongly upheld and to remove the barriers in society faced by disabled people who have a condition and/or an impairment.

It is a matter of serious concern that we have a Government who barely speak about removing barriers, while actually creating new ones through their austerity cuts and their punitive social security system. In their 2015 manifesto, the Tories pledged to halve the disability employment gap by 2020, but the TUC has found the Government to be years behind on that commitment. They have since dropped the pledge, and replaced it with a reduced commitment to getting 1 million more disabled people into work.

As we have heard, the rate of employment for disabled people stands at 49.2%, compared with 80.6% for the rest of the population in the most recent period for which figures are available, meaning that the disability employment gap lies at 31.3%. We know that the gap is even wider for specific disability groups. For registered blind and partially sighted individuals, only one in four people of working age is in work, and my hon. Friend the Member for Enfield, Southgate (Bambos Charalambous) mentioned the employment gap for those living with autism.

The Office for National Statistics recently announced that it was suspending publication of the disability employment rate indefinitely. The motion notes the fact that there will be a disability employment gap after Brexit, and the current gap in the UK is considerably above the European Union average of 21%. That illustrates the extent of the Government’s failure to take meaningful and serious action. In the light of this, why have the Government weakened their commitment to reducing the disability employment gap? It would be helpful if the Minister set out the measures she is taking to improve the ability of disabled people to enter work and—on retention—their ability to stay in work?

Many barriers faced by disabled people are shaped by false perceptions about the role they play in the workplace. Research by the Scope charity found that almost half of disabled people have worried about making employers aware of their impairment or their condition. We know that one of the key barriers that has been highlighted is how we shape employer attitudes to employing people with a disability. What are the Government going to do to support employers—especially small businesses, given that they make up nearly half the workforce—to employ disabled people? How can small businesses access affordable and timely occupational health support, and how can best practice be shared?

I must say I was surprised that disability and disabled people were not mentioned in the Budget, giving a very negative message to the population about the role of disabled people in the economy and giving the regrettable impression that their contribution to the economy is not being championed or prioritised by this Government. Will the Minister offer an explanation for this omission? Opposition Members will build an economy that includes everybody, because that is how we can develop an economy that truly works for everybody, not just for a few.

I cannot stand at the Dispatch Box speaking on this subject without mentioning the comments made last December by the Chancellor of the Exchequer during Treasury Committee questioning, when he linked low productivity growth with the employment of disabled people. Unfortunately, there has been no apology for those comments, and his lack of remorse following the scapegoating of disabled people for a productivity crisis created by this Government’s failed economic policy speaks volumes. Does the Minister agree that there is a need for a clear and coherent message from the Government that employing disabled people can enhance productivity and make a real contribution to organisations and businesses across the UK?

Despite that, the Government finally managed to publish their long-awaited “Improving Lives” paper late last year. Some 90% of disability and long-term health conditions are acquired, so it is absolutely right to examine how employers can make reasonable adjustments to support an employee to stay in work if they become disabled. However, the paper did not set out how the Government intend to achieve or fund this aim.

To date, the Disability Confident campaign, launched in 2014, has been a dismal failure. It has made a negligible impact on the disability employment gap and has yet to produce any concrete evidence of results. Will the Minister confirm how many additional disabled people have found work as a direct result of the Disability Confident campaign?

The Access to Work programme, when it works well, provides invaluable support, but too often I hear about problems in relation to the administration and timeliness of payments, the cap on individual awards and the assessments. Ms French is a visually impaired person. Her experience of seeking employment is that when the subject of Access to Work came up, recruiters said that the employer was in too much of a hurry and would not be able to wait for an Access to Work assessment to be completed. As we all know, Access to Work is probably the best kept secret—it helps far too few people—and it will need significantly more resources if the Government are to get anywhere near the aim of getting 1 million more disabled people into work by 2027.

In the case of a deaf person, Mr Will, he was offered a job by a Disability Confident employer. However, once the employer realised that the Access to Work support would be capped and that they would have to meet the rest of the costs, the job offer was withdrawn. Will the Minister set out what substantive action the Government are taking to support people in work? What work have they done with disabled people to ensure that this support is flexible and responsive to need? More importantly, what additional funding will the Government make available, especially for Access to Work?

We have concerns about the language used in the Government’s “Improving Lives” paper, which centres on the idea that employment can “promote recovery”—the familiar sounding phrase, which says that disabled people and people with chronic conditions would recover if only they tried a bit harder, or were subject to an even tougher system. Will the Minister reassure people with disabilities limiting their ability to work and those actually unable to work that this is not the intended message her Government are trying to convey or that they believe in?

For nearly eight years, disabled people have borne the brunt of the cuts inflicted on them by this Government and the previous coalition Government. The cuts have had a detrimental impact on the lives of disabled people, cutting living standards and undermining their access to education, social care and justice. In 2016, the United Nations convened a committee to investigate state violations of the UN convention of the rights of persons with disabilities. Its report concluded that the Government had committed

“grave, systematic violations of the rights of persons with disabilities.”

That is a damning indictment of the treatment of disabled people by this Government—it shames us as a country—yet the Government have failed to act. We believe in a social model of disability and a society that removes the barriers restricting opportunities and choices for disabled people. We will incorporate the UN convention of the rights of persons with disabilities into law. I ask the Minister: why do the Government refuse to do the same?

Currently, 4.2 million disabled people live in poverty, and new evidence indicates that this number is increasing as a result of cuts in support. According to Scope, the Welfare Reform Act 2012 has cut nearly £28 billion in social security support from 3.7 million disabled people. Cuts contained in the Welfare Reform Act 2016 are adding to the suffering experienced by many disabled people, and that does not include cuts to social care, the NHS, education or transport—all of which have had a direct effect on disabled people.

Research by Scope that was published this week revealed that on average, disabled people face extra costs of £570 a month due to their impairment or condition, and that is on top of social security payments that are designed to help meet these costs. Extra costs mean that disabled people’s money simply does not go as far—£100 for a non-disabled person is equivalent to just £67 for a disabled person.

In addition to the four-year freeze in social security support, the 2016 Act cut financial support by £1,500 a year to half a million disabled people who had been found not fit for work, but who may in the future be in the ESA work-related activity group. Will the Minister provide the House with an assessment of the impact of social security cuts on disabled people and their ability to stay in work? The current social security system is not working for disabled people. Analysis this week by Demos into the treatment of unemployed disabled claimants revealed that they are up to 53% more likely to be docked money than claimants who are not disabled, and disabled people have been hit by 1 million sanctions since 2010.

Under this Government, the social security system has penalised people with disabilities by cutting much needed support and making it harder for them to access what support is available. The assessment processes for ESA and PIP are not fit for purpose, and trust in the system has been completely undermined. The widespread distrust of the assessment process by sick and disabled people is no surprise, with a record 68% of PIP decisions that are taken to tribunal being overturned by judges. Under private contractors, the assessment process is getting worse, not better. Why will the Government not act to end privatisation and replace the current system with a more holistic process?

I welcome the opportunity to contribute to this important debate, and I congratulate all Members on their contributions. However, the Government must understand that for too many disabled people, the reality is a social security system that punishes rather than supports them and a labour market that shuts them out rather than being open to their potential and skills. It is incumbent on the Government to harness the potential of everyone and to create a truly inclusive society that works for the many, not just the few.