Employment and Support Allowance Underpayments

Mike Penning Excerpts

Thursday 18th October 2018 Commons Chamber

[Sarah Newton]

We first came to the House to talk about this issue last December, and we have regularly updated the House since. I myself have already apologised. Clearly, this was a dreadful administrative error in the Department and should not have happened. The permanent secretary has also apologised to the Public Accounts Committee and the National Audit Office for the administrative mistakes.

It is important to recognise that, when people were transferring across from IB to ESA, a very paternalistic approach was taken, meaning the claimant was not involved in the transfer at all. All the funding they were receiving from the Department was transferred across, so nobody had anything taken away from them; rather, people missed the opportunity to receive additional support by way of an additional premium. We are now making sure, by reviewing these cases, that people get everything they are entitled to, because it is important that our benefits system benefits those who are entitled to it.

The hon. Lady raises important questions about what we have learned. We have learned a great deal from this exercise. As we have regularly told the House and Select Committees—the permanent secretary was before the Work and Pensions Select Committee only yesterday answering questions—the culture and mechanisms in the Department for spotting errors have been fundamentally reviewed. As we have discussed at length—this is a matter of public record—people in the Department and stakeholders came forward and pointed out some of the problems with the migration, but the Department responded in the belief that they were a series of one-off errors.

By 2014, it was recognised that some people were not being migrated accurately, and guidance was put in place. These were administrative errors that occurred in the Department, and officials took the appropriate action to the best of their ability. In fact, it was thanks to the good housekeeping of the DWP that the scale of the error was spotted. It was during the routine work undertaken on fraud and error that it was detected. At that point, Ministers were told, and they then undertook the administrative exercises that have led to the situation today.

As the Minister responsible now, I am looking towards the next huge migration of people—from ESA to universal credit—and the Secretary of State has made it absolutely clear that we will take an extremely careful test-and-learn approach and make sure that this time we involve the claimant in the migration. That is how we will avoid the situation reoccurring.

[Sir Mike Penning (Hemel Hempstead) (Con)]

The Minister has rightly apologised, and I, too, apologise, because I was the responsible Minister during part of the migration. Mistakes happen in all Governments—they happened during the 13 years Labour was in government and before that when we were in government. The question is how we handle it. In a Department with a budget in excess of £250 billion a year, mistakes will be made, but will the Minister make sure, where compensation payments are required—because there will be people who have suffered—that we admit it and address it, rather than taking a partisan attitude, which I am sorry to say we have heard here today? Mistakes were made before, and mistakes have been made now. We have to address that today.

[Sarah Newton]

I appreciate what my right hon. Friend says. As I have made clear from the start, and as is completely supported by the Secretary of State, my focus is to fix the problem as soon as possible. We have put in considerable additional resource to make sure people get back payments as soon as possible. As far as possible, we are reaching out and getting the money to those who will most benefit from it.

I also want to reassure the House that the families of people who would have benefited from this additional payment and who tragically have died are being contacted. We are trying to find their families so that they can have that money.

Then there is the whole issue of whether people have missed out on passported benefits; I think that is the point that my right hon. Friend was raising. Each passported benefit is the responsibility of the Government Department concerned, and it would be very impractical for us to find out whether people accessed particular schemes. For example, the Department of Health, as we all know, has a low-income prescription scheme that some people might have accessed and some might not have done. We are going through the process of, wherever possible, making sure that people get the money that they should have as soon as possible. We have ongoing discussions with the other Departments that have passported benefits to make sure that people on low incomes get those benefits.