Benefit Claimants Sanctions (Required Assessment) Bill

Peter Dowd Excerpts

Friday 2nd December 2016 Commons Chamber

[Mhairi Black]

My hon. Friend has just echoed the arguments that have been made on that point.

I want to move on to the second main part of my Bill. It deals with hardship payments—my hon. Friend the Member for Livingston (Hannah Bardell) spoke about them earlier—which I view as the second-biggest problem in the system. Currently, when a sanction has been imposed, a person may be able to get a reduced-rate hardship payment, but such payments are not awarded automatically—a person will need to apply for them. Again, we must remember that we are talking about human beings who are often very vulnerable. Whether because of their mental health, their physical health, their financial situation or their caring responsibilities, they are up to their eyeballs in stress already, and when they hear the dreaded word “sanctions”, the situation becomes 10 times worse.

The system is not designed to guarantee that everyone will be listened to. Some people might be lucky enough to be listened to. The system might be fine, as I said at the beginning, in jobcentres that are managing to make this skeleton of a system kind of work, but there is no guarantee that it will be the same for everybody. When an individual hears that they are being referred for—that dreaded word—a sanction, their world often falls apart and they are thrown into utter chaos.

[Peter Dowd (Bootle) (Lab)]

As the hon. Lady may be aware, the

NAO has said that

“the Department has limited evidence on how people respond to the possibility of receiving a sanction, or how large this deterrent effect is”,

and that the use of sanctions is

“linked as much to management priorities and local staff discretion as it is to claimants’ behaviour.”

Does she agree that we are moving into a postcode sanctions lottery regime?

[Mhairi Black]

I agree with the hon. Gentleman. That is precisely why I am trying to bring in something to formalise what should already be in place to ensure a bit of consistency between different jobcentres and constituencies in the UK.

To expect someone who is up to their eyeballs and whose life is in chaos because they have heard the word “sanction” to know the system inside out, to know what they are entitled to and to know when and how to apply for it is simply unrealistic. It is not the reality of what genuinely happens. Some might accuse the Government of deliberately creating the system in that way to create a disincentive for people to challenge and claim what they are entitled to receive, as we know that the amount of unclaimed benefits to which people are entitled vastly outweighs the some 0.8% of benefits that are fraudulently claimed. However, I will let people make up their own minds.

We are realistic, and we know that the UK Government will impose sanctions. The Bill would therefore include in the code of conduct an assessment for hardship payments, so that anyone subject to a sanction would automatically have their situation considered. If someone is sanctioned, jobcentre staff should immediately assess them to see whether they qualify for a hardship payment, rather than it being the individual’s responsibility to initiate an assessment. That makes perfect sense. If jobcentre staff have a stressed person in front of them who is in a difficult position and in an emotional state, they should be the responsible participant. They are the one who is supposed to be doing the job that the Government do, which is ensuring that no one falls through the gaps. That is not a big ask; it is logical to ask, “Is this person qualified for a hardship payment?”