ESA Underpayments

Marsha De Cordova Excerpts

Thursday 19th July 2018 Commons Chamber

[Marsha De Cordova (Battersea) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on the employment and support allowance underpayments.

[The Minister for Disabled People, Health and Work (Sarah Newton)]

In 2017, the Department for Work and Pensions identified an error that had resulted in some claimants being underpaid employment and support allowance between 2011 and 2014 while their claims were being converted from incapacity benefit, a legacy disability payment. The Department proactively informed the House of this problem in 2017 through a written statement before briefing partners and the media.

On 15 March, the Secretary of State tabled a statement setting out how the work to correct the underpayments was progressing. She explained that the Department would supply 400 staff for this exercise to ensure that we could identify as quickly as possible any cases where underpayments had occurred. Yesterday, she tabled a further statement to confirm that this work was under way. Staff are reviewing cases, contacting claimants and making payments. So far, we have paid out over £40 million in arrears.

As outlined in yesterday’s statement, the Department has analysed the relationship between official error and section 27 of the Social Security Act 1998 in regulating how and to what point in time arrears can be paid out. As a result of this analysis, we will now pay arrears to those affected back to the date of their conversion to ESA. Where we have already corrected cases by paying backdated arrears to 21 October 2014, we will review these cases again and pay any additional arrears due prior to that date. As planned, the Department will contact all those identified as potentially affected. Once an individual has been contacted and the relevant information gathered, they can expect to receive any backdated payments within 12 weeks. Once contacted, individuals will be provided with a dedicated free phone line on which to contact the Department to discuss their claim.

[Marsha De Cordova]

I want to thank you, Mr Speaker, for granting me this urgent question.

The ESA underpayments were a major error by the Department for Work and Pensions. Dating back to 2011, 70,000 ill and disabled people were underpaid thousands of pounds, after being wrongly migrated from incapacity benefit to the contributions-based ESA and thereby denied additional social security payments, such as the severe disability premium. This meant that people already neglected by the Government’s social security system were denied vital support and caused significant hardship.

The DWP was alerted to the error as early as 2013, but, in what the Public Accounts Committee report, published yesterday, described as a “culture of indifference” at the Department, the error was neglected, only to be taken up six years after it had occurred. The Government had claimed they were legally prevented from paying arrears to those underpaid prior to 2014, but in a significant climbdown yesterday, they seemingly pre-empted a legal challenge and committed to paying arrears from the date claimants were migrated to ESA.

Significant questions remain unanswered. How many people does the DWP estimate will be entitled to additional arrears payments? How soon does the DWP expect to be able to identify people affected by this announcement? Will the DWP pay compensation to those who got into debt as a result of the underpayments? When will these payments be completed? What measures has the DWP undertaken to ensure that similar mistakes do not happen again?

The review into the ESA underpayments is just one of six the DWP will be carrying out to identify ill and disabled people to whom it has wrongly denied social security support. Five of those reviews have been undertaken only to pre-empt legal judgments. The latest announcement is yet further evidence of a Department in chaos, and the chaos is chronic, with millions of disabled people affected by the DWP’s failures. That needs to be sorted and sorted now.

[Sarah Newton]

I will take each of the hon. Lady’s detailed points in turn, but I first want to disabuse the House and the hon. Lady of the characterisation of people working in the DWP that we hear week after week. It simply is not fair. Day in and day out, the staff of the DWP work very hard to support people with health conditions and disabilities. The amount of money that this Government—in coalition and now as a Conservative Government—spend supporting people with health conditions and disabilities has grown every single year since we took office in 2010. We are absolutely committed to ensuring that people get the support from us that they need.

I want to put this issue in context. I fully accept, and have accepted, that these mistakes should not have happened. We are acting at pace to resolve these issues as soon as possible. Yes, some individual cases were raised in 2013, but at that time the Department felt that they were individual cases. It was not that the Department was lacklustre in trying to deal with the issue, as the hon. Lady is trying to portray. In fact, it was the proactive work of the DWP—in ensuring that we look out for fraud and underpayment—that identified this problem, and Ministers in the Department have worked proactively to put the necessary resources in place to resolve the issue as soon as possible. One mistake is one too many, but in actual fact this issue has affected about 5% of the people who made the transfer from incapacity benefit to ESA, and 3% of everyone on ESA. We are sorting the situation out as soon as possible.

The hon. Lady specifically asked how many people are affected. Our initial assessment was that 70,000 people were affected. However, in the light of our decision to go right back to the point at which people transferred from IB to ESA, we are going to look at more claimants—even dormant accounts—to ensure that no one is left out of this exercise, and the number will therefore rise. I will be able to update the House, as I regularly do, once we have taken this action over the summer recess. At the moment, we estimate that we will end up spending around £390 million, but given our further announcement yesterday, I expect the number of people affected—and therefore the amount of money—to go up. People will be paid their full arrears. It is absolutely important to me, the Secretary of State and the whole Department that we rectify the situation as soon as possible.

Oral Answers to Questions

Marsha De Cordova Excerpts

Monday 2nd July 2018 Commons Chamber

[Sarah Newton]

One experience of poor customer service is one too many, and of course I will meet her.

I also want to point out what Kate from the west midlands said, again on “You and Yours”: “My 35-year-old daughter has a learning disability. She doesn’t read or write, so I filled in the form for her. From her point of view, it turned out to be a very good experience because when she was on DLA she was on the lower rate but, because of the new criteria, she is now on the higher rate and has a mobility car. So from our point of view, it’s been really positive.”

[Marsha De Cordova (Battersea) (Lab)]

The UN Committee on the Rights of Persons with Disabilities carried out a robust inquiry into the effects of the Government’s policies, including social security, on disabled people. It found “grave and systematic violations” of disabled people’s rights. The Minister recently said that she is

“utterly committed to the convention.”—[Official Report, 20 June 2018; Vol. 643, c. 124WH.]

When the Government respond to the report later this summer, will she finally commit to carrying out a cumulative impact assessment of the Government’s policies, as recommended by the UN Committee on the Rights of Persons with Disabilities?

[Sarah Newton]

We were very disappointed that, when it came to the UK, the UN Committee on the Rights of Persons with Disabilities did not take into consideration the great deal of evidence that was provided. When I make my very full response, I am sure I will set the record straight so that the committee understands that we are very proud to be a world-leading country in supporting people with disabilities to fulfil their potential in society.

Of course we are always determined to do more, and we do an equality impact assessment every single time there is any sort of policy change.

[Marsha De Cordova]

We know an impact assessment of the social security policies can be carried out, because the Equality and Human Rights Commission has done so. Is it not the truth that the Government will not do this because they are afraid that an impact assessment will confirm what the UN, the Equality and Human Rights Commission and disabled people say, which is that this Government’s policies have created a hostile environment that is causing grave violations against disabled people?

[Sarah Newton]

I can assure the hon. Lady that that is simply not the case. We have very strong protections for people with disabilities in our country, not the least of which is the Equality Act 2010. I make sure that impact assessments are done on all policies that are undertaken. I honestly ask all Opposition Members not to use this language of “a hostile environment”, as it is simply not the case and as the very people who need all of our support are put off seeking it and coming forward. I ask Opposition Members to stop saying things they know are not true.

UN Convention on the Rights of Persons with Disabilities

Marsha De Cordova Excerpts

Wednesday 20th June 2018 Westminster Hall

[Marsha De Cordova (Battersea) (Lab)]

It is a pleasure to serve under your chairmanship, Dame Cheryl. I begin by congratulating my hon. Friend the Member for Canterbury (Rosie Duffield), first for securing this important debate and secondly for the incredibly powerful speech she gave. She was right to highlight that no Government should introduce legislation that discriminates against disabled people. She rightly stated that the Government’s record is a national shame, and highlighted the dire inequalities in social security and access to justice, the increase in poverty, and the lack of access to information. There are huge difficulties in access to digital information, as my hon. Friend the Member for Batley and Spen (Tracy Brabin) highlighted, and alternative formats for people living with sight loss are lacking. My hon. Friend the Member for Canterbury was right to call out the fact that there is a lack of legislation covering intersectional discrimination.

I also want to pay tribute to some of my other colleagues, including my hon. Friends the Members for Hartlepool (Mike Hill) and for Liverpool, Walton (Dan Carden). My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) made a powerful speech. She has led the way and has held the Government to account powerfully for many years. I thank her for all the work she has done and will continue to do. She rightly highlighted that the Government chose not to include the charter of fundamental rights in the European Union (Withdrawal) Bill, which is a shame. My hon. Friend the Member for Peterborough (Fiona Onasanya) shared the powerful testimonies of some of her constituents. I thank everybody for all their efforts. It is right to point out that this is a shame, and there is no other way of looking at it.

The UK was once at the forefront of disability rights: 48 years ago, we passed the groundbreaking Chronically Sick and Disabled Persons Act 1970. It was led by Lord Alf Morris, who shortly afterwards became the first Minister for Disabled People—I am honoured to be in that shadow role today. That legislation was a response to disability campaigners calling attention to the deep and pervasive injustices that disabled people face. In December 2007, we became signatories to the convention on the rights of persons with disabilities, which committed us to progressively realising the rights of disabled people—our rights to live independently, to be included in the community and to have access to education and justice. After eight years of brutal Tory cuts to disabled people’s social security, of increasingly cruel and degrading assessments and sanctions, and of being stigmatised by Government Ministers, disabled people know that the Government have not been defending our rights. The UN CRPD committee found that disabled people’s rights have been “gravely and systematically violated”. It is difficult to overstate the significance of that judgment.

The UK was not merely the first country to be found in breach of the convention’s obligations; we were the first ever to be investigated. Over the past eight years, we have seen not the progressive implementation of disabled people’s rights, but their unprecedented erosion and violation. The committee found that Departments are grossly failing disabled people.

The brutal cuts to disabled people’s social security have made a mockery of article 19, on the right to live independently and in the community, and article 28, on the right to an adequate standard of living. The Welfare Reform Act 2012 alone cut £28 billion from social security. Half of people in poverty are now either disabled or living with someone who is disabled. Almost a quarter of disabled people are now forced to miss meals because of economic hardship, and one in five cannot pay to heat their homes. Such drastic cuts to social security led the UN committee to find that disabled people were the single biggest group affected by Tory austerity policies.

The UN said that the systematic impoverishment of disabled people was an entirely predictable effect of the Government’s austerity policies. It was, of course, predicted by disability groups, but the Government ignored it and refused to carry out a full cumulative impact assessment of the cuts.

[Dan Carden]

Does my hon. Friend agree that it is disappointing and outrageous that the Government have wasted more than £100 million on pointless appeals and on putting disabled people through a nightmare as they try to access the benefits they deserve?

[Marsha De Cordova]

My hon. Friend is absolutely right.

Will the Government commit to carry out a cumulative assessment of their tax and social security reforms since 2010? In addition to the devastating cuts and suspicion, disabled people have been endlessly mistreated by the chaotic Department for Work and Pensions. High Court judgments have repeatedly found that the DWP has blatantly discriminated against disabled people. Only last week, it was found that the cutting of disability premiums from universal credit was “unlawfully discriminatory”. There has been “blatant discrimination” against PIP claimants, and employment and support allowance has been continuously underpaid.

The UN report found that disabled people are being undermined not just by the social security failings, but by the lack of social care funding. Since 2009, the number of disabled people receiving social care has fallen by nearly 30%. The UN report highlights that social care is vital, and that it allows many disabled people to live independently. Will the Minister outline whether the Government’s forthcoming Green Paper will include working-age adults? I asked the Secretary of State for Health that question on Monday but did not get a full answer.

On the right to work, the Government have not done enough to remove the barriers that disabled people face. There is a lack of high-quality impairment-specific support. The Government’s flagship Disability Confident scheme does not measure the number of disabled people it has directly helped to move into work. Access to Work must be improved, extended and better publicised. Will the Minister consider removing the discriminatory cap?

Signatories to the CRPD are obliged to promote inclusive education. Under the Government, there has been regression and an increase in the number of special school places. What is the Minister doing to encourage her colleagues to improve inclusive education? In recent months, the Government have created a cross-ministerial body that is supposed to promote disability issues across Government, but at the same time they have cut the number of staff at the Office for Disability Issues. As my hon. Friend the Member for Oldham East and Saddleworth asked, what is the group’s scope? Where are its published terms of reference?

The Government are helping to organise a global summit in July, but why should any other state take them seriously on disability rights when they are systematically violating the rights of disabled people and continue to ignore the UN’s recommendations? When will the Government publish their response to the UN’s report?

When we get into power, the Labour Government will incorporate the convention into UK law, scrap the punitive sanctions regime, and replace the assessment regime with a more holistic, supportive assessment framework. It is a shame on the Government that we have to stand here today and debate this issue once again. They must take heed and listen.

Oral Answers to Questions

Marsha De Cordova Excerpts

Monday 21st May 2018 Commons Chamber

[Sarah Newton]

The very fact that the hon. Lady says the case has been resolved shows that the system is working. It is very important that we make the right decision first time. I have set in place a whole series of improvements to PIP. We have followed the advice given to us by the independent review of PIP and are working at pace to make the necessary changes.

[Marsha De Cordova (Battersea) (Lab)]

As a result of the incorrect guidance produced by Independent Assessment Services, formerly Atos, in relation to daily living activity 6—help with dressing—will the Minister tell the House how she proposes to estimate the number of claimants who have been incorrectly assessed for PIP, and to identify the claimants affected, provide a correct assessment and pay all the arrears due?

[Sarah Newton]

I thank the hon. Lady for her question—we had a meeting last week where we discussed this case. The matter was brought to the Department’s attention by the Royal National Institute of Blind People in March. We have looked into the case and are absolutely assured that this is a one-off situation, but it is very important to me that we learn the lessons of how this happened. We are meeting the RNIB on Wednesday to see what further action we can take.

[Marsha De Cordova]

But does the Minister not accept that the wording of the correspondence that was produced by Independent Assessment Services—sent to her by a number of voluntary organisations, including the RNIB—suggests that the guidance has potentially been widely circulated among assessors, and that for contracted assessors to produce independent guidance on social security law without the Department’s knowledge suggests a serious problem with contract management?

[Sarah Newton]

I do not accept the premise of the hon. Lady’s questions. We are very clear that the personal independence payment assessment guide, which is published by the DWP and is on gov.uk, is the guidance that must be used by health professionals. The particular case was investigated and we have made sure that the procedures are in place to ensure that this does not happen again.

Oral Answers to Questions

Marsha De Cordova Excerpts

Monday 26th March 2018 Commons Chamber

[Sarah Newton]

I thank my hon. Friend for his question and for taking the time and trouble actually to visit the centre where the assessments are taking place. If more Members in this House were to do that, they would be better informed about the reality of the process. It is absolutely right that the assessments are undertaken by properly qualified medical professionals.

[Marsha De Cordova (Battersea) (Lab)]

As well as the gross failings of the personal independence payment, we see another Government failure with the employment and support allowance underpayments where an estimated 70,000 sick and disabled people were incorrectly assessed and denied vital social security support. Will the Minister update the House on the progress that she is making in arranging to identify and to backdate awards to those former incapacity benefit and severe disablement allowance claimants?

[Sarah Newton]

I am delighted to be able to update the House on this important exercise. Back in August last year, the first payments went out to people who had been identified as underpaid. We are making really good progress with identifying other claimants who will benefit from the additional payments, and we have recruited up to 400 new members of staff, so that we can carry on our work delivering these payments.

[Marsha De Cordova]

How is the Department prioritising ESA claimants underpaid as a result of incorrect assessments, aside from those with terminal illnesses and conditions? Will the Minister confirm that claimants who were victims of underpayment will not be subject to reduced ESA eligibility due to lump sum payments being classed as savings?

[Sarah Newton]

On the first point, I assure the hon. Lady that we are working closely with our stakeholders. I am grateful to the disabled people and the organisations who are working with me and my colleagues in the Department to ensure that we are contacting the underpaid people who will most benefit from receiving these payments. On the second point, there are proper practices and procedures within the Department for Work and Pensions to ensure that lump-sum payments are not taken into consideration as people’s capital allowances. I have made a detailed statement to the House but if the hon. Lady would like to raise specific questions with me, I suggest that she bring them along to our meeting on 19 April.

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.

Draft Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2018 draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2018

Marsha De Cordova Excerpts

Tuesday 20th February 2018 General Committees

[Marsha De Cordova (Battersea) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Ryan.

The draft regulations cover compensation payments for sufferers of listed dust-related diseases, or for sufferers’ dependants. As we have heard, the Child Maintenance and Other Payments Act 2008 made provision for lump sum compensation payments to people suffering from diffuse mesothelioma or their dependants. The draft legislation provides for a 3% uprating of the lump sum payments made to sufferers or their dependants. We recognise that under the 2008 Act the Government have no obligation to increase payment rates to keep up with inflation, so we welcome the move.

Mesothelioma is a cancer of the lining of the lungs or abdomen and is predominantly associated with asbestos. The greater exposure, the greater the risk, and those who work directly with asbestos are at the highest risk. However, those with limited exposure—a significant number of people, such as those who wash the clothes of someone who works with asbestos—are also at considerable risk. There is usually a delay between exposure and the onset of the disease of about 40 years on average.

Mesothelioma is a very serious disease. Only 55% of those with the disease live longer than six months following diagnosis, while just over a third live longer than one year. According to Cancer Research UK, incidence rates in the UK have increased by 71% since the early 1990s. In the past 10 years, the number of deaths has risen by nearly a third. More than 2,500 people in the UK die of the disease every year.

As we have heard, the 2008 scheme provides a one-off lump sum payment to sufferers where there is no occupational link to the disease. That includes cases in which a person affected was exposed to asbestos while self-employed, or in which a person lived near a workplace where asbestos was used regularly. People suffering from diseases as a result of exposure to asbestos, or one of a number of other similar agents, may be unable to bring a successful claim for civil damages in relation to their disease, mainly because of the long delay between exposure and the onset of the disease. We recognise that providing lump sum compensation payments through the two schemes covered by the two sets of draft regulations is important for sufferers of those diseases.

Improved health and safety procedures have restricted the use of asbestos and provided a safer environment for its handling, but the legacy of the common use of asbestos is still with us, and it is still a very current issue. Predictions of a peak in cases have proved wrong time and again, and they have been revised time and again in debates in the other place. The Government suggested that they expected mesothelioma claims to peak in 2018—this year—but their previous estimates have proved inaccurate. Will they confirm whether they still expect a peak this year? If not, what is their revised date?

Regardless of whether there is a peak in the number of people affected, it is vital that we continue to raise awareness of the risk of working with asbestos. What measures are the Government taking to ensure that awareness is widespread? Responsibility for asbestos lies primarily with the Health and Safety Executive. Will the Minister provide details about the activities and campaigns that the HSE is undertaking to raise awareness and encourage prevention?

The HSE’s funding is being slashed by almost half as a result of Government cuts. It will receive over £100 million less from central Government in 2019-20 than it did in 2009-10—a reduction of 46%. Between 2010 and 2016, the number of its inspectors was reduced by 25%. Such huge cuts will inevitably have an impact on all its areas of responsibility. Will the Minister secure appropriate public protection by ending the proposed future cuts to HSE funding? Will she confirm whether additional funding has been made available to the HSE in the last year to prevent harm from asbestos? Will she set out the funding plans for the next financial year for the same purpose?

I also ask the Minister about the considerable disparity between payments to sufferers and payments to their dependants. In 2010, a commitment was made by the then Minister Bill McKenzie—now Lord McKenzie—to close that gap. The issue was raised again last year, but the Government failed to provide any commitment and we have seen no further action since then. In every debate on the issue since 2010, Members of both Houses have called on the Government to honour that commitment. Why have the Government not done so? Do they still intend to reduce the differential between lump sum payments for dependants and sufferers? What would be the additional cost of achieving parity between the two?

We welcome the increase, in line with inflation, in payments to those who suffer from pneumoconiosis. Again, we recognise that the Government have no statutory obligation to increase those payments, but I am pleased that the Minister has done so. The draft regulations relate to the Pneumoconiosis etc. (Workers’ Compensation) Act 1979, which provides lump sum compensation payments to sufferers of certain dust-related diseases, including those caused by coal dust and asbestos. As with mesothelioma, provision is made for payments to dependants, as defined by the 1979 Act, where the sufferer did not receive payments under that Act before their death.

The annual death rate from pneumoconiosis in the UK has remained relatively constant over the past 10 years, with an average of approximately 140 deaths per year. According to charities that support sufferers, the number of cases and the number of deaths attributed to the disease are both likely to be underestimates. Identification of the disease is difficult: it does not always present as acute, and its symptoms can be overlooked or misattributed because they are similar to those of several other diseases. Diagnosis could be improved with greater awareness. Will the Minister set out what action the Government are taking to raise awareness of the disease, its range of causes, the circumstances in which it is likely to occur and the support available? We support increasing payment levels to sufferers of the illness and their dependants. As with previous regulations, I want to ask again: are the Government still committed to ensuring that sufferers of pneumoconiosis and their dependants achieve parity of award?

We have no impact assessment for either of the statutory instruments. The Government assert that it was not necessary to produce those, but I am concerned about the reason for that. Why does the Minister believe that was not necessary? Will she tell us how many claims there were in relation to both sets of regulations last year, and how many of those claims were successful?

I look forward to the Minister’s response to the points that have been raised today. If she cannot answer all the questions now, I would be grateful if she put her answers in writing. Despite the points raised, we welcome both the regulations and the uprating of payment levels in line with inflation for those affected by these devastating illnesses.

Oral Answers to Questions

Marsha De Cordova Excerpts

Monday 5th February 2018 Commons Chamber

[Sarah Newton]

The hon. Gentleman raises the important issue of specialist providers of employment. This is a very important sector, which the Government have a proud tradition of supporting. I meet stakeholders regularly, and we are always looking to see what more we can do to help them sustainably provide the invaluable employment opportunities that they do.

[Marsha De Cordova (Battersea) (Lab)]

Despite the Government’s claim that no severely disabled person moved on to universal credit would be worse off, we now know that that is not the case: scrapping the disability premiums will have just that effect. Transitional protection for existing claimants can easily be lost where there is a change in circumstance, such as if someone moves into work and if that job does not last. What assessment has the Minister carried out of the impact of abolishing these disability premiums on disabled people, and does she agree that transitional protection should be retained, so that it is not lost where there is a change in circumstance?

[Sarah Newton]

Unlike the previous system, universal credit is more targeted, and support is focused on those who need it most. Transitional protection is available for people who move into universal credit from other benefits, provided their circumstances stay the same. When giving evidence to the Select Committee last week, my hon. Friend the Minister for Employment said that he was aware of the situation, and he is thinking carefully about this issue.

Personal Independence Payments

Marsha De Cordova Excerpts

Wednesday 31st January 2018 Westminster Hall

[Marsha De Cordova (Battersea) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hosie. I congratulate my hon. Friend the Member for North West Durham (Laura Pidcock) on securing this important and timely debate. She made some valid points and highlighted the sheer volume of responses that she received when she put out a call on social media. That demonstrates the clear problems with the PIP system and with the benefit.

My hon. Friend talked powerfully about the outsourcing of the assessment process, which we all know is simply not working from our experience with the work capability assessment. It is about time that those assessments were brought back in-house because there is poor-quality decision making and no scrutiny. Frankly, it is unacceptable that taxpayers’ money is going out to those providers.

[Ruth George]

Does my hon. Friend agree that outsourcing decisions waste money and are against the interest of claimants? Discrepancies between Capita, which sees 59% of claimants at home for a home assessment, and Atos, which does the vast majority of PIP assessments but sees only 16% of claimants at home, expose the divisions in the private sector and show why the assessments should be brought back in-house and monitored properly.

[Marsha De Cordova]

It is important that the Government listen to the valid point made by my hon. Friend, and I hope the Minister will address it. We have heard testimony about the Department’s approach to disabled people. People said that it felt cold and that they were not treated as human beings, but they have to engage with it.

I pay tribute to my many hon. Friends who have spoken—it is important that so many of them are here—including my hon. Friends the Members for Washington and Sunderland West (Mrs Hodgson), for North Durham (Mr Jones), for Kingston upon Hull West and Hessle (Emma Hardy), for Great Grimsby (Melanie Onn), for Crewe and Nantwich (Laura Smith), for Reading East (Matt Rodda), and for Merthyr Tydfil and Rhymney (Gerald Jones), and the good interventions from my hon. Friends the Members for High Peak (Ruth George) and for Stretford and Urmston (Kate Green).

My hon. Friend the Member for Great Grimsby highlighted the points about face-to-face assessments well. The assessment process, the centres and the information provided have to be accessible, but that is not happening on all occasions. That needs to change. This debate has been called because of the crisis in the claimant experience of personal independence payments.

[Toby Perkins (Chesterfield) (Lab)]

Having witnessed the way in which the Tory party did politics in the run-up to the 2010 election and having sat opposite them between 2010 and 2015, this is not an accident. It is a deliberate part of the party’s electoral strategy: to demonise the poor and to say that this country’s problems are caused by the most vulnerable people in our society. The experience that claimants receive is a deliberate part of the Conservatives’ political strategy.

[Marsha De Cordova]

My hon. Friend is spot on. Let us be clear: from the outset in 2010, the Government’s fundamental aim for the new benefit was to make savings and to reduce the case load of disability benefit claimants. That is a fact. The expectation was to make a saving of 20%, which equated to around £1.5 billion. It is untrue to say that that was not the case. PIP was supposed to cover the additional costs of living with a disability, but that has not been the case in practice. The assessment framework is flawed and it causes delays.

[Kate Hollern (Blackburn) (Lab)]

Having heard the cases that have been discussed, does my hon. Friend agree that the process is dehumanising? It degrades individuals who are at their most vulnerable. Does she also agree that we need to take a two-pronged approach? The private sector makes millions of pounds and causes misery for others, but we must also bear in mind the fact that the policy itself is seriously flawed.

[Marsha De Cordova]

My hon. Friend, too, makes a valid point. We have to look at the policy intention behind PIP’s introduction—to make savings and to reduce the number of disabled people who were entitled to the benefit.

The assessment framework creates a series of financial problems. Poor-quality decision making has led to disabled people losing vital financial support. The evidence is damning—it is there for all to see. When decisions are challenged, in 68% of cases taken to tribunal the finding is in favour of the claimant. That indicates that there is a problem. The process is lengthy and stressful, and many people do not know how to challenge a decision or what they need to do, so many will go without and lose that financial support.

If a claimant wants to challenge a PIP decision, they must first ask for a mandatory reconsideration, as my hon. Friend the Member for North West Durham discussed in detail. That was supposed to improve the claims process, but in reality, it has had the opposite effect. Many disability organisations have noted the number of decisions on claims that have passed through the supposedly rigorous mandatory reconsideration stage, but have gone on to be overturned at tribunal.

According to the Department’s own figures, about 20% of PIP MR cases lead to the decision being revised. It seems that the appeal tribunal process is being used as a backstop for poor decisions that should have been resolved at the initial stage or at the mandatory reconsideration.

[Dan Carden (Liverpool, Walton) (Lab)]

My constituent, Anthony, who visited my surgery on Friday, has a chronic illness. He has been through the process up to the point that my hon. Friend describes and he is awaiting a date for the appeal court. He will lose his car in April. He has been to advice centres to seek advice, but they are full with a backlog, so he has now come to me. Without a date for the appeal process, what can be done and what should the Government do? He faces months and months of distress.

[Marsha De Cordova]

Perhaps the Minister can clarify what my hon. Friend’s constituent should do. We cannot have individuals losing their vehicles unnecessarily.

Poor decision making is taking place. It has become so bad that the most senior tribunal judge said that the evidence provided by the Department was so poor that it would be “wholly inadmissible” in any other court. There has been a 900% increase in complaints about PIP.

I will talk briefly about the High Court decision. There was an urgent question yesterday, but I am not sure that the Minister answered all the points that were made. The regulations were introduced to reduce the number of claimants who qualify for PIP. The High Court said that they were “blatantly discriminatory” against people with mental health conditions. What is most scary is that but for the High Court decision, the Government could have just carried on as usual.

[Mike Hill (Hartlepool) (Lab)]

Will my hon. Friend give way?

[Marsha De Cordova]

I cannot take any more interventions—I apologise.

Where do we go from here? Clearly, the Government have no idea when the examination of those 1.6 million claimants will take place. Will it be weeks, months or years? The Minister has not provided a good timeframe and I ask again if she can give us a timeframe as to when the PIP assessment guide will be updated. When will the backdated payments begin to be paid? Will there be compensation for PIP recipients who have incurred debt as a result of those regulations? Will the Department update its administration and staffing costs, which are also expected to be published? Will the Minister guarantee that no claimant will lose out as a result of their case being reconsidered? Given the damage that has already been caused, it is simply not good enough that Parliament and PIP claimants are being left in limbo while Ministers are trying to get their house in order. There have already been two independent reviews by Paul Gray, but the recommendations of the most recent one were accepted only in part by the Government.

The Minister has accused the Labour party of scaremongering. That is wholly untrue. The wealth of evidence presented today has highlighted the human impact of these benefits policies. The UN Committee on the Rights of Persons with Disabilities has found the Government in breach and is still waiting for them to respond. The Equality and Human Rights Commission has called on the Government to carry out a full cumulative impact assessment of their welfare reforms, but they still have not done so. Only last week, the European Committee of Social Rights found the Government to be in violation of the European social charter. Something is clearly wrong. Labour has made it clear that we would scrap the assessment regime and replace it with a good, open and holistic assessment framework.

PIP Back Payments

Marsha De Cordova Excerpts

Tuesday 30th January 2018 Commons Chamber

[Marsha De Cordova (Battersea) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement on the process and timetable for the personal independence payment back payments.

[The Minister for Disabled People, Health and Work (Sarah Newton)]

As a result of our decision not to appeal the recent PIP judicial review judgment, we informed the House via a written statement and in a response to a parliamentary question that we will be carrying out an administrative exercise to identify claimants who may now be eligible for more support from PIP. The Secretary of State took the decision less than three weeks ago. As previously said, we will be working with Mind—experts in the field—and doing things as sympathetically and effectively as possible. While efficiency is important, I cannot stress enough that I want the appropriate scrutiny and complete accuracy to be applied to this exercise, so it will not be rushed.

This exercise will include screening the existing PIP caseload of some 1.6 million people to identify the group who may benefit, but the vast majority of claimants will not be affected. As the Secretary of State said last week, we currently estimate that up to 220,000 people will be affected by the judgment. For the group of people who may be affected, we will undertake a detailed review of their applications and awards. We will write to the individuals affected, and all payments will be back-dated to the effective date in each individual claim. There will be no—I repeat, no—face-to-face reassessments of awards. DWP case managers will be conducting a review of the existing information we hold, with a view to establishing whether claimants are entitled to more. If case managers need more information to make a decision, they will contact the claimant and/or their doctor.

I am sure you will understand, Madam Deputy Speaker, that this is a complex exercise, and we need to undertake testing to ensure that we implement it safely. We therefore do not yet have an estimate of how long it will take. Obviously, we will keep the House updated on our progress in this exercise. Based on preliminary calculations, we estimate that the overall costs of implementing the judgment could be up to £3.7 billion by 2022-23. However, this number is highly likely to change as we work through all the impacted cases.

[Marsha De Cordova]

I thank Mr Speaker for granting this urgent question.

Following the written statement of 19 January and last week’s urgent question, yesterday we discovered in an answer to a written question that the Government will be reconsidering approximately 1.6 million PIP claims—effectively, everyone currently in receipt of PIP. However, no timetable was issued or detail provided for this process. We know that 55% of people with mental health conditions transferring from disability living allowance to PIP receive a lower award or no award at all. As the High Court found, the Government’s regulations are highly discriminatory.

I am pleased that the Secretary of State and the Minister’s Department have finally seen sense. However, there are a number of questions that the Minister must answer. By what date will the Department have changed the PIP assessment guide, so that she can implement the judgment? How quickly thereafter will the Department be able to identify affected claimants? Is her Department prioritising the PIP claims it is re-examining? If so, will she publish the prioritisation criteria? By what date will all 1.6 million PIP claims have been reviewed? Will it be weeks; will it be months; or will it be years? Do the 1.6 million claims to be reviewed include those that scored zero points and were not awarded PIP? Will there be an appeals process for the PIP claimants not contacted by the Department who believe that they should receive back payments? Will the Department compensate claimants who have fallen into debt and accrued interest charges? After the equality assessment was published in February 2017, the estimated number to receive the higher rate of PIP went up to 164,000, and it is now 220,000. Will the Minister publish an updated assessment? What assessment has she made of the administrative costs to her Department of undertaking this complex exercise of a considerable scale?

This mess is one of the Government’s own making. It is a clear example to this Government of the dangers of seeking to undermine both the independent judiciary and the House of Commons.

[Sarah Newton]

It is absolutely not true to say that we are trying to undermine the independent judiciary, because we have accepted the findings of the appeal and are now going to painstakingly, carefully and safely implement the findings. It is incredibly important for our democracy that we have an independent judiciary, and we stand by that.

The hon. Lady asked a number of questions. First, for clarification, the information that was provided in response to the written parliamentary question was absolutely the same as that given at this Dispatch Box by the Secretary of State last week and that contained in the written statement.

Moving on to some of the hon. Lady’s more detailed questions, she mentioned the updating of the PIP assessment guide. She is absolutely right: that is the starting point to making sure that we properly and thoroughly implement the recommendations of the appeal. I am delighted to say that Paul Farmer of Mind has agreed to work very closely with us to get that right. I have spoken to Paul Gray, who has undertaken the independent reviews of PIP, and he has also offered his help. I recently met a broad range of our PIP stakeholders and invited them to share their expertise.

As I said in my previous response, it is incredibly important to me that we get this right. The exercise will be complex and, to carry it out accurately and safely, we want to ensure that stakeholders and experts are involved. As a result, I cannot set out a timetable at this stage, but I can reassure all hon. Members that we are approaching this with a great deal of vigour and will ensure we do it as soon as possible. We have already started to recruit more people at DWP to help with the PIP review.

We want to discuss the prioritisation of the review of PIP claimants very carefully with our stakeholders to ensure that the process is fair, transparent and open. We will be reviewing people who had zero points in their original claim. We are currently considering the best way to handle an appeals process.

Of course, I will update the House regularly. The Secretary of State said that she would do that from this very Dispatch Box last week. We have oral questions every six weeks, so there are plenty of opportunities for Members to ask us about the progress we are making in this very important work.