Benefit Sanctioning

Debate between Paul Blomfield and Debbie Abrahams

Tuesday 2nd December 2014 Westminster Hall

[Paul Blomfield]

I thank my hon. Friend for that intervention and for the great work she has done as Chair of the Work and Pensions Committee, along with the other members of the Committee. She is right to highlight the link between benefits sanctioning and payday lending. As she will know, payday lending is a concern to me. With colleagues from all parties in the House, I introduced a private Member’s Bill on high-cost credit.

I have subsequently worked with colleagues on the all-party group on debt and personal finance to push the Financial Conduct Authority to introduce effective regulation of payday lenders, and I am delighted that we have made some progress on that. However, that is only part of the solution. We are dealing with the consequences of poverty—people resorting to payday lenders—but not the causes, and one of the most significant causes is benefit sanctioning. I am therefore pleased that my hon. Friend raised that point.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I apologise to my hon. Friend for being a little late. Is he aware of the evidence from Oxford university, which shows that one in four JSA claimants who are sanctioned leave JSA and that more than half of them do not get into work? Using sanctions to get people into employment has therefore proved ineffective.

[Paul Blomfield]

I was not aware of that research, so I am doubly grateful to my hon. Friend for her intervention. That makes the point powerfully that the sanctioning regime is failing to achieve its stated intention. Even leaving aside the hardships and all the consequences of sanctioning, we still need to look carefully at the issues I have raised because of the failure of sanctioning to meet its stated objectives.

So far, the Government have resisted calls from the Work and Pensions Committee, Citizens Advice and others for a full review of the sanctioning system. I have commended the work of the Oakley review, but that focused only on the practicalities of the current system. I understand the Select Committee is conducting its own inquiry, which I strongly welcome, and I am sure Citizens Advice and many others will engage fully with it.

Why, however, are the Government refusing to address one fundamental question: is the sanctioning system proving effective at getting people into work, which is its stated intention? Why is there no performance evaluation of the system against that criterion? There is no shame in that, whatever the answer—even if it is that, no, the system is not proving effective. However, we need to know the answer as policy makers; if we do not even ask, we are showing enormous contempt for the people whose lives are being dramatically affected. I hope the Minister will give us a commitment on that today.