Benefit Sanctions

Priti Patel Excerpts

Wednesday 16th December 2015 Westminster Hall

[The Minister for Employment (Priti Patel)]

It is a pleasure to serve under your chairmanship, Mrs Gillan. I will endeavour, in the time I have, to cover as much ground as possible.

It is fair to say that I am always happy to come to the Chamber to participate in debates on this important issue. Today’s debate has given all Members the opportunity to give their constituents’ views and their personal views on the sanctions and benefits system. It has also provided opportunities for Members of the House to discuss how we can support and encourage people back into work. On a day when we see figures showing record numbers of people in employment, we should welcome all the support put in place through our jobcentres and work coaches to help people into work. It is somewhat disappointing that we have not heard much from Members in this afternoon’s debate on the support available to help people into work.

Conditionality is a key part of the approach that has helped to deliver record-breaking levels of employment, labour market improvements and the lowest claimant count since 1975. As we have debated not only today and in the debate a few weeks ago but continuously, sanctions have been part of the welfare system for a considerable number of decades.

[Neil Gray]

Does the Minister accept that since her Government and their predecessor, the coalition, came into power, the sanctioning rate has increased for not only ESA but JSA? Can she give any reason for that?

[Priti Patel]

I do not accept what the hon. Gentleman says at all. Sanctions have been a part of the welfare system for a considerable number of decades, and successive Governments of all parties have acknowledged the principle that there should be a link between benefits and engagement with the labour market. That principle has been at the heart of the system, and it is important to recognise that that is exactly how the system works right now; we engage claimants and ensure they are being supported in their work searches, while ensuring fairness and balance in the system.

The claimant commitment clearly sets out the consequences of failing to meet the requirements of the claim. As I have stated in previous debates, the claimant commitment is discussed at length with the claimant and, of course, takes account of any barriers to work, health conditions, disabilities or caring responsibilities.

[Anne McLaughlin]

Will the Minister give way?

[Priti Patel]

I will not, because I have many comments to make and we are short of time.

Two weeks ago, in the previous debate on sanctions, a number of Members quoted from reports and gave statistics to support their claim that the system is broken. We have heard similar quotes today, but we should be clear that much of what has been quoted is not fully representative of the system. We have heard extensive quotes from Oxford University and the London School of Hygiene and Tropical Medicine report that suggests only 20% of JSA claimants find work after a sanction has been imposed. That is misleading, because it makes the assumption that the 80% of people who leave JSA with unknown destinations do not enter work. In fact, many people do not inform Jobcentre Plus of their post-benefit destination because they are getting into work.

Statistics published by the Office for National Statistics put a clear disclaimer on the data, stating that the destinations data are unreliable and that it should not be assumed that all movements into employment are accurately reported. It would have been more accurate for Members to quote from the comprehensive DWP destinations survey that found that 68% of those leaving JSA move into work.

Members have rightly raised the issue of sanctions for people with mental health conditions. Less than 1% of ESA WRAG claimants with mental health conditions are sanctioned each month. The latest available data show that the number of sanctions across ESA WRAG claimants has decreased over the past year, including for those with mental health conditions. That is because, as we have continuously stated, we are seeking to support people with health conditions and, in particular, mental health conditions into employment.

The Government have just pledged more than £40 million to develop a proper and robust evidence base on which approaches are effective for people with mental health conditions. Over the next three years, that investment will enable us to have informed pilots that are based on evidence, to see exactly what kind of support works for those people and whether cognitive behavioural therapy for people on ESA, JSA and UC makes a difference. We are now working in a more integrated approach with the Department of Health on the use of talking therapies in our jobcentres and other community locations.

Several hon. Members mentioned the recent Crisis report, but they did not highlight that the report found there was support for a system of conditionality among the respondents interviewed.

[Neil Gray]

I said that.

[Priti Patel]

Let me finish my point. The report noted that

“the sanctions regime does prompt some behavioural change”.

Scottish National party Members have secured this debate; I congratulate them on that, but they have had their say. They have been giving very inaccurate reports about the sanctions regime. As I have said at least six or seven times on the Floor of the House, if individual Members want to raise their cases with me, I am happy to look into them. If they want to raise cases about jobcentres in their constituencies or the conduct of work coaches, I would like to pick those up with them. Members who have raised such cases have not done so previously, but I give them the opportunity to do so.

[Emily Thornberry]

I appreciate that the Minister has a lot to get through, so I will speak very fast. One of the Work and Pensions Committee’s recommendations was that the DWP should monitor the destinations of people leaving jobseeker’s allowance. Currently, the Department only does that on an ad hoc basis. That is one of the recommendations that the Government refused to apply.

[Priti Patel]

That, of course, is part of our ongoing work and, along with the sanctions system, it is always subject to review. We will continue to work with the system and learn from the data we receive.

To return to the Crisis report, it is not entirely clear how the respondents to the study were selected, and the conclusions appear to apply to only a subset of the overall homeless population. That is why we are quite cautious about the degree to which the views and responses included represent those of the broader population. We know that the most important priority for homeless people is to secure accommodation, and to secure support not only in getting into accommodation but in dealing with barriers to work and any particular conditions they may have. It is important to note that support is always, rightly, based on individual needs and circumstances, and is there to help homeless claimants find suitable living accommodation, which in turn helps to remove barriers to employment.

I return to the role of our work coaches. They are able to treat certain homeless claimants as meeting their job-seeking conditions if they are receiving the right support to find living accommodation. Work coaches are also able to suspend conditionality temporarily if the claimant’s circumstances constitute an emergency. We recognise that homeless claimants may not be covered by our current list of vulnerable claimants for the purposes of hardship payments, and I emphasise that we are considering expanding the list to include those who are homeless.

We understand that homelessness is highly complex, and no one should generalise about the circumstances or backgrounds of homeless individuals. It is our priority to ensure that they get the right support. That is why the Government have made more than £1 billion available since 2010 to prevent and tackle homelessness and to support vulnerable households. In the spending review, we announced an increase in the Department for Communities and Local Government’s centrally funded programmes over the next four years to tackle homelessness. I would like to think that all Members here would welcome that.

References have been made to sanctions statistics, and it has been suggested that according to the Government’s March figures, 50% of sanctions imposed have been overturned on appeal. The official statistics say something different: in the year to June 2015, only 14% of original adverse JSA sanctions and 23% of ESA decisions were overturned by decision makers. Those decisions were based on new evidence being brought forward that was not available at the time of the original decision.

[Anne McLaughlin]

Will the Minister give way?

[Priti Patel]

I come back to my point that if individual Members want to raise specific cases with me, they are very welcome to do so.

I do not have time to touch on the overall improvements to the sanctions process, which I know we have discussed before, or the Work and Pensions Committee. We keep the operation of the sanctions system under constant review—as we do all our policies—to ensure that it continues to function effectively and fairly. We will continue to do that.

I will touch on the pilot of the yellow card system, which gives claimants an additional period of time to provide evidence of good reason before a decision is made. That will help to strike the right balance between fairness, conditionality and individual circumstances. Our intention is that the trial will operate in Scotland from March 2016, running for approximately five months. It will be carefully designed and delivered, with a clear process, training and guidance provided for all staff involved. The trial will be evaluated in full to assess the impact on the individual behaviours and understanding, and we will carefully monitor all the relevant data to consider the extent to which the warning system trial affects sanction decisions. We will make the findings available from autumn 2016. There are already a number of opportunities for people who are sanctioned to present more evidence, and of course, that will be part of an ongoing system of review. We are working with our work coaches to develop that.

As today’s debate was secured by members of the SNP, I would like to raise some particular points about the situation in Scotland. First, I am pleased to say that today’s employment figures show that Scottish employment is up significantly, by 178,000 since 2010, and that Scotland has an employment rate of 74.3%, which is higher than the UK average. We are seeing very strong levels of employment growth in Scotland. Unemployment has fallen by 63,000, with the number of people in work in Scotland now close to a record high. That is not just because of economic policies, but because of employers expanding their businesses and doing more to support the economy. There are plenty of figures on that, but I do not need to quote them. Members in all parties can access today’s employment figures.

However, I want to touch on something that has not been raised today. When it comes to welfare provision in Scotland, we have the Scotland Bill, and the devolution package in Scotland will make the Scottish Parliament one of the most powerful devolved Parliaments in the world. The Bill will also apply to welfare provision in Scotland, which will be tailored to local circumstances. Powers will include: a power for Scotland to create its own employment programme to help the long-term unemployed and disabled people into work; the power to create new benefits in any area of devolved responsibility; powers in universal credit to determine how and when claimants are paid and how much some claimants get for housing support; and the power to legislate for top-up payments to people in Scotland who are entitled to a reserved benefit.

This of course puts more power in the hands of the Scottish Government, and Members of the Scottish National party can now be up front with the public in Scotland on what they will do with this new devolved power and how they will apply the new powers to their welfare system.

Although we have had a full debate today, I think it is fair to say that sanctions are not a punitive measure, contrary to what the Scottish National party Members—[Interruption.] They are sitting there giggling right now, but I would not trivialise the support that has been put in place by this Government to help people into work; I think that is quite insulting, actually, to many of our work coaches and the people who work in the welfare area providing support for individuals.

This is part of a wider framework of policy to provide support to encourage claimants into work. Today’s labour market figures show that. Not only are we seeing high levels of employment, but the claimant count rate is at its lowest level since 1975. Conditionality and sanctions have played a role in that, and it is only right that we continue to keep under review the policy of sanctions, and continue to work to do more, to do better and to provide the support to help people get back into work. That is why we have the new joint health and work unit, set up by the Department for Work and Pensions and the Department of Health between them, and why, during the autumn statement, my right hon. Friend the Chancellor announced a new work and health programme. That will come in in 2017 to support individuals with significant barriers to work and, in particular, help them to get back into work, through the welfare system, with support. Of course, universal credit is part of that. It gives people the help that they need to increase their earnings, move away from welfare dependency, and importantly, make sure that work always pays.

Thank you for chairing the debate this afternoon, Mrs Gillan, and I thank all hon. Members for their contributions.

[Alison Thewliss]

On a point of order, Mrs Gillan. I was going to say this in an intervention, but the Minister was not taking interventions. I wanted to correct the record on the person I mentioned who died. It was not suicide; it is actually a lot more sad than that. He died from diabetic ketoacidosis from not taking his insulin. He had no electricity for the fridge in which it was stored.