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.

Employment, Social Policy, Health and Consumer Affairs Council

Priti Patel Excerpts

Tuesday 15th December 2015 Written Statements

[The Minister for Employment (Priti Patel)]

The Employment, Social Policy, Health and Consumer Affairs Council met on 7 December 2015 in Brussels. Baroness Neville-Rolfe, Under-Secretary of State at the Department for Business, Innovation and Skills, represented the UK.

The Council held a detailed discussion on the women on company boards directive but was unable to reach an agreement. The UK was part of the blocking group, with Baroness Neville-Rolfe setting out the significant success which had been achieved through the UK’s business led, voluntary approach.

The Council reached political agreement on a recommendation on the integration of the long-term unemployed into the labour market.

The European Commission presented the annual growth survey 2016 and a draft Council recommendation on the economic policy of the euro area, with views invited from member states. The UK intervened to welcome the package presented while raising concerns that issues relating to jobs and growth should continue to be discussed by all 28 member states, not just those in the eurozone.

The Commission presented measures to advance equal treatment of LGBTI people, with the UK highlighting actions it had taken at a national level such as equal marriage. There was an exchange of views on the strategic engagement for gender equality 2016-2019 and the Council took stock of progress on the equal treatment directive.

The Council adopted conclusions on equality between women and men in the area of decision making, the promotion of the social economy as a key driver of economic and social development in Europe and social governance for an inclusive Europe.

Under any other business, the presidency informed the Council about the successful negotiations with the European Parliament on both the EURES network and the platform against undeclared work.

The Commission set out the Accessibility Act proposal. The UK stated that the draft proposal must be in line with shared objectives on the single market and must have a firm evidence base with an impact assessment, but did welcome the lighter regime for small and micro businesses. The Commission gave a presentation on the youth employment pact which highlighted that the pact had created partnerships between educational organisations and businesses. Finally, the Luxembourg delegation drew attention to the various initiatives and conferences they had undertaken as part of their presidency.

[HCWS395]

European Union (Approvals) Bill [Lords]

Priti Patel Excerpts

Monday 14th December 2015 Commons Chamber

[The Second Deputy Chairman of Ways and Means (Natascha Engel)]

With this it will be convenient to discuss clause 2.

[The Minister for Employment (Priti Patel)]

Clause 1 provides for approval by Parliament of two draft EU legislative measures, as required under section 8 of the European Union Act 2011. Such approval is needed because both measures are made under article 352 of the treaty on the functioning of the European Union. Section 8 of the Act does provide for exemptions, in order to avoid the requirement for an Act of Parliament, but the measures here do not fall within any of the exempt purposes.

Clause 2 concerns the territorial extent of the Bill, its commencement date and short title. Subsection (1) 2 provides that the Bill extends to the whole of the United Kingdom. Subsection (2) provides that the Bill will come into force on the day that it receives Royal Assent. Subsection (3) provides for the Bill’s short title. I ask hon. Members to agree to clauses 1 and 2 standing part of the Bill.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2 ordered to stand part of the Bill.

The Deputy Speaker resumed the Chair.

Bill reported, without amendment.

Third Reading

[Priti Patel]

I beg to move, That the Bill be now read the Third time.

The brief explanation that accompanied the clause stand parts in the Committee stage covered all the points that need to be made about the content of this very short Bill and the reason it is required. Obviously, we covered some of the points on Second Reading. It is fair to say that our debates on this Bill have covered the two clauses sufficiently. Perhaps it is worth reflecting on the fact that the Bill before us forms part of the ability of Parliament to examine and give clearance through the much broader protection and oversight that the European Union Act 2011 affords us. Bills such as this give another layer of protection in dealing with European Union legislation.

[Mr David Nuttall (Bury North) (Con)]

As my right hon. Friend rightly says, the only concern is why such trivial matters are being dealt with by way of an Act of Parliament. Does she agree that, while these might be trivial matters and while the public might be concerned that they are being dealt with by way of an Act of Parliament, the public will be equally concerned that major matters such as perhaps the accession of Turkey to the European Union will go through exactly the same procedure?

[Priti Patel]

I thank my hon. Friend for his remarks. It is fair to say that, when it comes to debating such matters, I would not use the term “trivial”. The European Union covers not just that particular area, but other aspects, such as the accession of Turkey to the European Union. There will be debates on that matter and engagement with the European Scrutiny Committee. I am delighted to see the Chair of the European Scrutiny Committee in his place this afternoon.

I was very clear on Second Reading that there were concerns over what this legislation meant—whether it was burdensome and whether there were costs to the taxpayer. I use Third Reading to emphasise again that there are no burdens of administration or extra costs to the taxpayer. The Bill covers two clauses, one of which relates to the tripartite social summit, the other to the participation as an observer of the former Yugoslav Republic of Macedonia in the work of the European Union Agency for Fundamental Rights. They are two very straightforward clauses in a very straightforward Bill. On that basis, I commend the Bill to the House.

Oral Answers to Questions

Priti Patel Excerpts

Monday 7th December 2015 Commons Chamber

[Mr Graham Allen (Nottingham North) (Lab)]

2. What steps his Department is taking to reduce the number of young people who are long-term unemployed; and if he will make a statement.

[The Minister for Employment (Priti Patel)]

Long-term youth unemployment has fallen by over a third over the past year, and our goal is to make sure that all young people are either earning or learning. We continue to provide extra support for young people on benefits and will introduce the new youth obligation in 2017.

[Mr Allen]

With the Cities and Local Government Devolution Bill, which is before the House today, will the Minister do more to devolve greater control of the Work programme to councils and more to empower local managers? When universal credit comes in, will she ensure that the DWP works closely with councils on that support in order to transform the delivery of services to vulnerable people?

[Priti Patel]

I thank the hon. Gentleman for his comments and congratulate him on the work he has being doing locally in his community with the DWP and other partners, and the local authority too. He is absolutely right. Through the Work programme, and under devolution, we are working with communities, local authorities, jobcentres and other partners and stakeholders—the specialist organisations that can provide the right kind of support to support employment and to help to get more people back to work. He is absolutely right to hold up his area as a good local example.

[Amanda Milling (Cannock Chase) (Con)]

Does the Minister agree that helping young people to embrace work experience opportunities and encouraging employers to create those is essential if we are to tackle youth unemployment and bridge the skills gap?

[Priti Patel]

My hon. Friend is absolutely right. Of course we can never stand still in relation to employment and young people. I mentioned the youth obligation that we will bring in in 2017, but we are also developing skills and work experience. Supporting young people through work experience and traineeships is absolutely vital, and I know that she has promoted that in her constituency.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

As the Minister will be aware, we are now coming to the festive period, meaning that many people will find temporary jobs. Last year, from October to December, the number of young people in work in my constituency increased by about 15%, and after Christmas it dropped by 10%. What measures is her Department taking to ensure that people are not trapped in a cycle of temporary work?

[Priti Patel]

The hon. Lady is right that this is obviously the time of year when there is more seasonal employment in the run-up to Christmas, but support is provided to continue employment after such seasons. Jobcentre Plus will be supporting those who may be in part-time jobs to secure longer-term jobs. I come back to the fundamental principle that it is better to be in work, and have the experience of being in work, so as to develop long-term career and employment opportunities afterwards.

[Tom Pursglove (Corby) (Con)]

The opening of the new Primark warehouse at Islip will bring 1,000 new jobs to my area and help to reduce youth unemployment. Will the Minister join me in welcoming this jobs boost, and would she like to visit next year when it opens?

[Priti Patel]

I thank my hon. Friend for his very kind invitation. We are only getting these new jobs created because we have a secure and sound economy owing to our long-term economic plan. Importantly, employers such as Primark and many other retailers are creating great employment opportunities for our young people. I would be delighted to come to open the centre in his constituency with him next year.

[Kate Hollern (Blackburn) (Lab)]

3. Whether he plans for benefit sanctions to be applicable to people referred to the proposed work and health programme.

[The Minister for Employment (Priti Patel)]

The Department is developing new provision to support people with health conditions and disabilities and those who are very long-term unemployed. We are currently developing the design of the programme, including the conditionality that will be a feature of it.

[Kate Hollern]

A survey by mental health charity Mind revealed that a shocking 83% of employment and support allowance claimants referred to the Work programme found that it made their mental health state worse. Will the Government’s new Work and Health programme end the utterly shameful sanctions regime which often leaves those with mental illnesses less likely to access work?

[Priti Patel]

I am sure the hon. Lady will also recognise that more than 60% of individuals who are on the employment and support allowance say that they want to work as well. That is why we will launch the new Work and Health programme, to look at how we can deliver vital employment support, which I am sure the hon. Lady and all other Members will welcome, to those individuals who are furthest away from the labour market but who want to work. We will do that in conjunction with our stakeholders and better target the accompanying support to get them back into work. Additional funding was made available in the summer Budget for support for those who are furthest away from the labour market, particularly those with health conditions.

[Mr David Nuttall (Bury North) (Con)]

Does my right hon. Friend agree that it is incumbent on anyone who suggests scrapping the existing sanctions scheme to propose an effective alternative, because there has to be some means of ensuring compliance with the rules?

[Priti Patel]

Of course, my hon. Friend raises a valid point about what the Labour party is now clearly saying, despite the fact that sanctions have been in place for a considerable time, including under previous Labour Governments. The purpose of sanctions is to support claimants and to encourage them back to work. Let us also remember that the sanctions are there for claimants to comply with reasonable requirements, which are developed with the claimant as well as the work coach.

[Stephen Timms (East Ham) (Lab)]

In the Work programme, extra help has been given to jobseekers who have been out of work for 12 months, but under the new programme it will not be until two years have passed. Will Jobcentre Plus get extra resources to support people who have been out of work for between one and two years, given that the Work programme’s successor will not be doing that?

[Priti Patel]

The new programme will be accompanied by a structural reform that will better target support for those individuals who are furthest away from the labour market. On top of that, as my right hon. Friend the Secretary of State has emphasised again today, universal credit in particular will provide support and engagement for those individuals who are furthest away from the labour market but who are looking for work. Alongside that, the new Work and Health programme will integrate services, particularly for those with mental health conditions or health barriers, to help them get closer to the labour market and back into work.

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

Shockingly, a number of people have died after being sanctioned and we are still waiting for the Government to publish the data on them. We do know, however, following the recent publication of an academic report, that between 2010 and 2013 the Government’s work capability assessment process was associated with an additional 590 suicides. Given that Maximus, the company the Government contracted to deliver work capability assessments, has reported

“not being able to meet certain performance metrics”,

when will the Secretary of State admit not only that his work capability assessment reforms are a danger to claimants’ health, but that they are not fit for purpose and need a complete overhaul?

[Priti Patel]

Let me remind the hon. Lady that it was her party in government that introduced the work capability assessment—[Interruption.] Let me also point out, as she makes remarks from a sedentary position, that we have brought in a number of reforms, of which she and all other Members will be aware. We are very clear that sanctions are constantly under review, hence the five reviews we have had. Finally, on the data the hon. Lady has just presented to the House, she cannot justifiably or credibly extrapolate those figures and apply them to sanctions and this Government’s policies, because they are completely incorrect.

--- Later in debate ---

[Kirsten Oswald (East Renfrewshire) (SNP)]

12. What steps he is taking to ensure that earnings limits applicable to benefits are well publicised.

[The Minister for Employment (Priti Patel)]

The way earnings are treated is different across the benefits, but the majority of benefits do not have an earnings limit. Individuals can find general information on benefit eligibility at gov.uk, or they can speak to their local jobcentre staff and work coaches.

[Kirsten Oswald]

My constituent, a dedicated carer for a member of her family, was awarded carer’s allowance. She took on two small jobs to make up her earnings and to allow her to contribute to the community, while being careful to stay within the weekly and four-weekly earnings limits she had been advised of, so she was shocked to get a call telling her she had breached a monthly limit that she knew nothing about. Does the Minister think that laying that kind of tripwire for claimants is an appropriate way to deal with someone such as my constituent, who is trying her best to make a contribution to both her family and the community?

[Priti Patel]

I would make two points. I am happy to look at the case, but when it comes to the carer’s allowance, we increased the earnings threshold in April 2015 by 8%. Importantly, this is about providing the right structured approach to support carers who want to work and get the balance right regarding their caring responsibilities.

[Kevin Brennan (Cardiff West) (Lab)]

13. What recent representations he has received on the discretion which may be exercised by his Department’s staff when recovering benefit overpayments.

--- Later in debate ---

[Mr Alan Mak (Havant) (Con)]

14. What progress he has made in reducing the rate of youth unemployment.

[The Minister for Employment (Priti Patel)]

Youth unemployment has fallen to its lowest level in over seven years. In addition, the proportion of young people who have left full-time education and are unemployed—5.9%—has never been lower.

[Mr Mak]

The Wheatsheaf Trust runs an employment access centre, helping young people off benefit and into work in my Havant constituency. Will the Minister join me in congratulating the trust on its work on the ground and confirm that the Government will continue to put young people at the heart of their aspiration for full employment and their long-term economic plan?

[Priti Patel]

Of course I congratulate the Wheatsheaf Trust on the work it does, and I know that my hon. Friend has made youth unemployment and getting young people back into work a priority in his own constituency. He is, of course, right that as a Government we are committed to helping more young people to secure employment opportunities, which is why we will continue to support work experience programmes and traineeships and will introduce a new youth obligation.

[Bill Esterson (Sefton Central) (Lab)]

But too many of the apprenticeships have been going to older people who are already in jobs. Does the Minister agree that what is really needed is apprenticeships that provide intermediate and advanced high-level skills and qualifications that are valuable both for young people and the success of our economy?

[Priti Patel]

I view all apprenticeship skills as providing value-added to our economy. Let me provide the example of my visit to Pimlico Plumbers last Thursday. They are investing in young people and taking on young apprentices—[Interruption.] I hear Labour Members being disparaging about the employer organisation, but it is creating employment and career opportunities for young people, as does every other business and employer organisation that takes young people on at an apprenticeship level. Those organisations are the future; they are the ones investing in our young people, creating great career opportunities and passing on skills for our economy.

[James Morris (Halesowen and Rowley Regis) (Con)]

15. What progress he has made in reducing the rate of unemployment.

[The Minister for Employment (Priti Patel)]

The unemployment rate, at 5.3%, has fallen by a third since 2010—[Interruption.] I hear sighs from Labour Members, which shows that they have no interest in employment growth in this country.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

Grow up!

[Priti Patel]

The hon. Lady says, “Grow up”. Perhaps Labour Members should put aside the disparaging comments they make every time we speak about employment opportunities and growth in the economy. Unemployment is now at its lowest level for over seven years. In addition, the number of people in work has risen by over 2.1 million since 2010.

[James Morris]

Unemployment in my constituency has fallen by 50% since 2010, which has given a lot of security to a lot of people in my constituency. Does she agree that some individuals who might be suffering from long-term mental health conditions want to work, but encounter considerable barriers preventing them from getting back into employment? Does she therefore agree that we need to redouble our efforts to enable those people to get back into work because it is critical to their cure that they do so?

[Priti Patel]

My hon. Friend is absolutely right. He has drawn attention to two important facts: the fact that unemployment has fallen in his constituency and there are more people in work there, and the barriers—particularly mental health conditions—that prevent people from working. We will be launching a new Work and Health programme, and looking into how we can integrate services to provide the right kind of support to help such people to return to work.

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

Between June 2011 and June 2015 there were 10,920 referrals to the Work programme in my constituency, 21% of which resulted in jobs. Those figures would improve, and employment would be further reduced, if the assessment of claimants that is carried out at the beginning of the process were more adequate and consistent, and ensured that crucial characteristics such as drug problems were not missed. When will the Government introduce changes to the assessment process?

[Priti Patel]

The Select Committee and many others have said that the Work programme has been one of the most successful employment programmes that the country has seen. Naturally, we constantly review our work in respect of assessments, but we are focusing on targeted support for individuals, because we all want the right outcomes for them. We all want to help them to return to work, and to give them the tailor-made support that they need. Rather than adopting the hon. Lady’s disparaging approach, we are saying that those people need help, and that we will give them help so that they can get back into work.

[Jo Churchill (Bury St Edmunds) (Con)]

17. What his policy is on requiring injured veterans to attend work capability assessments.

[The Minister for Employment (Priti Patel)]

When a service medical board decides that a disabled person should be discharged from the forces, we will use its evidence to determine eligibility whenever possible.

[Jo Churchill]

I raise this matter on behalf of my constituent Private Troy Watkins, an ex-serviceman who receives payments from the war pensions scheme and who was also awarded a lifetime disability living allowance. Private Watkins is excluded from access to the armed forces independent payment scheme, which, unlike the war pensions scheme, requires just one assessment. Does the Minister agree that what we have at present is a two-tier system which discriminates against service personnel such as Private Watkins, and will she meet me to discuss the way in which it affects him?

[Priti Patel]

I thank my hon. Friend for raising that case, and I shall of course be happy to meet her. I think it right for the House to recognise the sacrifices made by all members of our armed forces who have been injured as a result of service to our nation.

[William Wragg (Hazel Grove) (Con)]

19. What progress he has made on increasing the number of people with disabilities who are in work; and if he will make a statement.

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[Tommy Sheppard (Edinburgh East) (SNP)]

21. When his Department next plans to publish information on people who have died after undergoing work capability assessments.

[The Minister for Employment (Priti Patel)]

There are no plans to publish such information.

[Tommy Sheppard]

That is a source of great regret. A recent study by Liverpool and Oxford Universities concluded that 590 suicides were linked to work capability assessments. When will the Department stop hiding behind excuses and publish the information that we seek, so that we can examine the effect of the claimant system on suicide rates?

[Priti Patel]

We do not agree with those claims, and the authors themselves caution that no conclusions can be drawn about cause and effect.

[Teresa Pearce (Erith and Thamesmead) (Lab)]

22. What assessment he has made of the potential effect of changes to housing benefit announced in the spending review and autumn statement 2015 on people under 35.

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[Mark Menzies (Fylde) (Con)]

T2. What steps are being taken to support those with early onset dementia through the ESA process and, where appropriate, how do we support those who wish to continue in work to do so?

[The Minister for Employment (Priti Patel)]

We fully recognise the devastating impact that a diagnosis such as early onset dementia can have on individuals and their families. That is why we have the work capability assessment, which is designed to ensure that any claimant who is severely affected can be identified at the earliest possible stages and is supported. They will of course be placed on to the highest rate of benefit, where there has been such a diagnosis, and they will be free from any conditionality.

[Nick Thomas-Symonds (Torfaen) (Lab)]

At the election, the Conservative party promised to exempt pensioners from their proposed benefit freeze, yet as a consequence of the autumn statement some 400,000 of those on pension credit will see their benefits cut, and 800,000 will see it frozen. [Interruption.] There is no point in Ministers looking puzzled; I would have thought they would learn to read the small print of the Chancellor’s economic statements by now. How can it be right, when three quarters of pensioners are facing a choice between heating and eating this Christmas, to be taking more than £100 a year away from so many older people?

--- Later in debate ---

[Priti Patel]

I would be very happy to look at the constituency case that the hon. Lady has just raised. I also remind her and the House that we have already had five reviews of the WCA.

[Graham Evans (Weaver Vale) (Con)]

T7. Since 2010, unemployment in Weaver Vale has decreased by 54%. Will my right hon. Friend join me in paying tribute to the hard-working staff of Jobcentre Plus who have helped to make that happen? Is it not an example of this Government’s long-term economic plan delivering for hard-working taxpayers in Weaver Vale?

--- Later in debate ---

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

As a vice-chair of the all-party parliamentary group on youth employment, I welcome the unemployment figures in my constituency, but will the Minister tell me what more can be done to help the hardest-to-reach young people into work?

[Priti Patel]

I welcome the work that my hon. Friend is doing through the APPG. We recognise that we can never stand still in this area. There is always more to be done to support young people through work experience, traineeships and, importantly, working with employers to encourage them to take on more young people and get them into the labour market, invest in them and train them so that they have skills for the future.

[Peter Dowd (Bootle) (Lab)]

T5. A devastating announcement has been made in the days before Christmas by Shop Direct, which covers the Littlewoods and Very brands, and its partner, Webhelp, that 400 call centre jobs in my constituency are to be lost. Those jobs are to be transferred 6,000 miles away to South Africa. What assurances can the Secretary of State give me that the people affected by those redundancies will get all the support and help they need from his Department?

--- Later in debate ---

[Michelle Donelan (Chippenham) (Con)]

Will the Minister please inform the House of the specific plans for constituencies such as mine which have very high rates of employment but suffer proportionally high rates of long-term unemployment?

[Priti Patel]

I know that my hon. Friend is doing a great deal of work locally in the employment space through apprenticeship fairs and things of that nature. When it comes to supporting people who are suffering long-term unemployment, we are working with our jobcentres and employers and, importantly, Work programme providers to get people closer to the labour market, to support them through training schemes and to nurture them so that they have an easier, smoother journey into work.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

T8. I was delighted to hear from the Minister about all the work that the Government are doing for pensioners. In the light of the Pensions Minister’s announcement that they have finally conceded and announced a review of how rises in the state pension age should progress, will they now right the wrong that has been done to hundreds of thousands of women in this country? Does he recognise that this issue has to be addressed, as the Women Against State Pension Inequality—WASPI—campaign has said, to ensure that women are not pushed into poverty?

--- Later in debate ---

[Jake Berry (Rossendale and Darwen) (Con)]

I congratulate my right hon. Friend on protecting the winter fuel payment, but although hundreds of thousands of letters are dropping through people’s letterboxes, figures also show that those who are retired are disproportionately less likely to switch their energy supplier. Will he commit to work with colleagues in the Department of Energy and Climate Change to look at how energy switching details can be included with the winter fuel payment?

[Priti Patel]

I welcome my hon. Friend’s suggestion, and I would be delighted to liaise and work with colleagues to make that point. The more that we all do to switch energy suppliers and producers, the more money we can all save in the long run.

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

The latest figures from the Department show that a clear majority of the JSA sanctions imposed in April to June, and about half of the ESA sanctions, were on claimants who had already been sanctioned within the previous two and a half years. Why does the Minister think the sanctions process is failing to change the behaviour of so many benefit claimants, and why does she not accept the recommendation of the Work and Pensions Committee and instigate a full and independent inquiry forthwith?

[Priti Patel]

We know that sanctions are having a positive effect on securing employment, and the figures actually show that. In addition, the claimant commitment clearly outlines to the claimants and the work coach the requirements on supporting the individual back into work. As we are seeing, JSA sanctions have halved and ESA sanctions are down, and they are supporting more people in getting back to work.

[Heidi Allen (South Cambridgeshire) (Con)]

I have a brief question on universal credit, as we continue to roll it out. Is there an opportunity to extend the dedicated telephone line that housing associations enjoy direct to universal credit to citizens advice bureaux, which do an incredible amount of work but are struggling to make contact with the people who can help them?

Assessment of Government Policies (Impact on Families) Bill

Priti Patel Excerpts

Friday 4th December 2015 Commons Chamber

[The Minister for Employment (Priti Patel)]

I thank my hon. Friend the Member for Eastbourne (Caroline Ansell) for her interest in the family test and welcome the focus that the Bill puts on that test and on family stability, both of which are key priorities for the Department and the Government both now and in the future. Although I welcome the spirit in which the Bill has been introduced and some of the comments that have been made, I recommend that the House opposes it for the reasons that I will set out.

Family stability is at the heart of the Government’s approach, and families are the foundations of society—not only because, as my hon. Friend highlighted, the estimated cost to Government of family breakdown is as much as £46 billion a year, but because strong and stable families can hugely improve our children’s life chances. We know that to build a stronger society we need to support families, and by focusing on the family we can create better outcomes for our children and wider society. We cannot afford to overlook the importance of the family as a basic building block in a successful and stable society.

We know that children who grow up in workless families have much lower life chances than those brought up in working families. As my hon. Friend highlighted, the Prime Minister announced the family test in August 2014, rightly citing his commitment to family stability and recognising its significance in policy development. The Department for Work and Pensions has been working across government to aid the implementation of the test. Although that cross-Whitehall approach will inevitably take time to embed, the new policy’s impact on family functioning and stability is being measured. We are starting to see its impact on early policy development, which we believe will have positive ramifications and outcomes for families in future.

[Mr Christopher Chope (Christchurch) (Con)]

How does the test apply to the policy on stamp duty penalties that the Chancellor announced in the autumn statement? That policy means that a married couple will be penalised if they buy a second home, but a cohabiting couple will be able to buy two homes without any penalty.

[Priti Patel]

My hon. Friend raises important points. In the autumn statement, the Chancellor highlighted what more he is doing to enable families to get on to the housing ladder. Housing contributes to a stable foundation in family life, particularly for young families who are starting out.

[Sir Edward Leigh]

The Minister mentions young families. Young families must be able to have a choice. If a young mother wants to stay at home to look after her young children, which is entirely natural, the family often suffers under the tax and benefit system. That is why we brought in the marriage tax allowance. Will she confirm that, although the allowance is quite low at the moment, the Treasury is open-minded about increasing it gradually over the years and making it more effective? That will not just save marriages, but help people who are married and bringing up young children.

[Priti Patel]

My hon. Friend raises a very important point. The marriage tax allowance is a good example of the Government’s commitment to families. As he says, the Treasury supported the introduction of the policy. It is a good, positive contribution and a step forward in support for families.

Placing the family test on a legislative footing, however, runs the risk of turning the test into a tick-box exercise across Government Departments, when our ambition is to work across government with Departments to embed the benefits of thinking about policy from a family perspective at all stages of policy development, not just complying with legislative requirements.

There are many areas, some of which have been highlighted by my hon. Friends, where the Government are focusing on supporting families, beyond introducing the family test. We mentioned the marriage tax allowance, which will benefit over 4 million couples. We have the ever-expanding troubled families programme, which helps families where no adult in the family is working, children are not attending school, and some family members are involved in crime or antisocial behaviour. The troubled families programme has gone a long way to helping local authorities, stakeholder and third-party community groups, organisations and their partners to develop new ways of working with families to achieve lasting change.

The hon. Member for North West Durham (Pat Glass) mentioned childcare. We are doubling the amount of hours for free childcare to 30 hours for three and four-year-olds. We have committed to childcare support for disadvantaged two-year-olds. The tax-free childcare policy will benefit families with children, and give parents more choice and flexibility with their childcare arrangements.

The proposal to introduce indicators for family stability is being addressed, as my hon. Friend highlighted, through the Government’s life chances strategy. The new life chances measures will focus on the number of children in workless households and on the levels of educational attainment. We are so focused on the life chances measures and family stability indicators, because we are no longer committed to chasing what we consider to be arbitrary targets. They were the focus of previous Governments’ policies and approach. Our focus is on the root causes of family breakdown—worklessness and poverty—and not just the symptoms.

The Government are committed to introducing a new and strengthened approach to tracking the life chances of Britain’s most disadvantaged children. Evidence suggests that frequent and intense child-related poorly resolved inter-parental conflict has terrible and negative outcomes for children. Couples with children experience greater levels of stress during separation. It is that negativity that affects the outcomes of children. For families that separate, evidence suggests that good relationships between parents and positive involvement from both parents in a child’s upbringing have long-term beneficial outcomes. These are the areas on which we are focusing.

As I have said, we are clear that strong families give children the best start in life and that good measures can help Government to formulate policy across Departments and drive action where it is most needed. It is worth highlighting where we can work with other Departments. I have already mentioned educational outcomes, and naturally we are working with my right hon. Friend the Education Secretary to raise educational attainment and improve life chances. In this way, we can also tackle areas of social justice and provide support for families or individuals who have experienced debt issues, addiction or alcohol or drug misuse. A combination of those factors can have a negative impact on families and result in family breakdown.

We have also committed to introducing a wider set of non-statutory indicators, including a measure of family stability, and we are engaging with experts in the field, third-party stakeholders, partners and specialist organisations to ensure we strike the right balance and develop policy that is in line with the most up-to-date research and the most robust evidence. We already measure family stability as part of the social justice outcomes framework, which reports the proportion of children living with both birth parents at birth and then every year until they are 16.

We discussed many of these measures, particularly those on life chances, during our deliberations on the Welfare Reform and Work Bill, under which we are introducing two statutory measures—on children in workless households and children’s educational attainment —to drive action on improving children’s life chances. My right hon. Friend the Secretary of State for Work and Pensions has committed to introducing a life chances strategy setting out indicators on the root causes of child poverty, including family stability, as well as on problem debt and addiction.

I have touched on many areas in which the Government are supporting families. My hon. Friend the Member for Eastbourne spoke about relationship support and the impact of family breakdown. In the last five years, the Government have invested about £38 million in relationship support services, but this is increasing, and we are investing about £8 million in relationship support provision in the 2015-16 fiscal year to provide support for couples and parents and to encourage the take-up of face-to-face, telephone and online relationship support services.

The marriage tax allowance, which my hon. Friend the Member for Gainsborough (Sir Edward Leigh) mentioned, demonstrates the dynamic nature of Government policy and the way we are working across Departments on family stability to provide the right support, whether for children or parents, including relationship support. We are using existing indicators as well. The NHS—so again working across government—is providing early intervention and education, and we are piloting relationship education in perinatal classes to prepare expectant couples for the changes that having a baby will bring to their relationship.

We are providing guidance and training for health visitors on spotting signs of relationships in distress and how to respond. We have had many debates in the House about the role of health visitors and how we can elaborate on that through the provision of guidance and support for new parents. All new parents recognise the challenges of being a first-time parent. We are testing ways of maximising the role of local authorities in providing family-centred services with a focus on supporting and strengthening couples and co-parenting relationships as well.

My Department has a strong track record and is working actively with local authorities to strengthen the services they provide to couples and co-parents in families by providing extra funding and, importantly, expertise for the 13 local authorities in our local family offer trial. We are exploring ways to expand that approach and encourage local authorities to take that leadership role at a local level in supporting people in the community and promoting greater family—

Employment, Social Policy, Health and Consumer Affairs Council: Agenda

Priti Patel Excerpts

Thursday 3rd December 2015 Written Statements

[The Minister for Employment (Priti Patel)]

The Employment, Social Policy, Health and Consumer Affairs Council will take place on 7 December 2015 in Brussels. Baroness Neville-Rolfe, Under-Secretary of State at the Department for Business, Innovation and Skills, will represent the UK.

The Council will be invited to seek a general approach on the proposal for a directive of the European Parliament and of the Council on a better gender balance among the non-executive directors of listed companies and related measures.

The Council will receive a progress report on the proposal for a Council directive on implementing the principle of equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation.

The Council will be invited to adopt draft Council conclusions on: equality between women and men in the field of decision making, the promotion of social enterprise as a key driver of economic and social development in Europe and on social governance for an inclusive Europe.

The Council will be invited to seek political agreement on a proposal for a Council recommendation concerning the integration of the long-term unemployed into the labour market.

The European Commission will present the annual growth survey 2016, the draft joint employment report, the alert mechanism report and also seek the views of member states on a draft recommendation of the Council of the eurozone.

Under any other business, the presidency will provide an update on progress on EURES and undeclared work. The Commission will present information on the pact for youth employment launched at the summit “Enterprise 2020”, the European Accessibility Act and measures to advance the equal treatment of LGBTI people. The current presidency will report on the conferences and initiatives it has organised and the Dutch delegation will present the work programme of their upcoming presidency.

[HCWS352]

Benefit Sanctions

Priti Patel Excerpts

Wednesday 2nd December 2015 Westminster Hall

[The Minister for Employment (Priti Patel)]

It is a pleasure to serve under your chairmanship, Ms Dorries. I congratulate the hon. Member for Airdrie and Shotts (Neil Gray) on securing the debate, because it not only allows all Members to reflect their reviews on this important issue, but gives us a chance to discuss conditionality alongside full employment and how we can encourage and support people back into work. The hon. Gentleman raised points that we have discussed previously. As he is a new spokesman for his party, I congratulate him on that and I look forward to working with him.

The debate has been wide-ranging, but I would like to start by restating the importance of conditionality and the role that that plays in our welfare system, and I will outline the principles behind the use of sanctions as part of the approach to help move people into employment. The hon. Gentleman and all hon. Members have made important points about the system, and I will outline some of the recent developments and the improvements that we are making following the recent report on sanctions by the Select Committee on Work and Pensions as well as the independent Oakley review.

The role of conditionality is best highlighted by the independent Oakley review, which said that sanctions are

“a key element of the mutual obligation that underpins both the effectiveness and fairness of the social security system.”

The words “effectiveness” and “fairness” are particularly relevant, because we know from claimants that there is a positive impact on behaviour. Nearly three quarters of people on jobseeker’s allowance and more than 60% of those on employment and support allowance say that sanctions play a role in helping them to understand the system. They have the claimant commitment in particular, but it helps when it comes to seeking employment and it provides a framework for them. The number of sanctions has fallen by around 40% in the last year, and ESA sanctions have stabilised as well. We should recognise the point about mutual obligation that the Oakley review describes and that sanctions can provide the right support for people to move into employment.

[Emily Thornberry]

I do not really understand what the Minister is saying. Perhaps she can help me by explaining it a little more. Is she saying that claimants say that it is helpful for them to have sanctions and that without sanctions, they would not understand what the system was?

[Priti Patel]

We know from claimants that the principle of conditionality and the claimant commitment have a positive impact on behaviour. Nearly three quarters of people on JSA and over 60% of those on ESA say that sanctions make it very clear to them that they will follow the rules, in terms of the claimant commitment and their discussions with work coaches. Those rules will also help them to gain employment, so they understand the discussions and dialogue that take place with them with regard to conditionality.

[Neil Gray]

Further to that point and the helpful intervention from the Labour shadow Minister, does the Minister not accept that, when a claimant has been sanctioned, that removes their ability—for a long time, because these are often cases involving people who have very little means—to access the services and job interviews and all the other issues associated with getting back into work? Does she not accept that and see, in a number of cases, that it is clear that the sanction has damaged the claimant’s ability to get back into work?

[Priti Patel]

Specific to individuals who have been sanctioned, first, there is a proper process on sanctioning, so we must not lose sight of that. That process includes a tailored claimant commitment and an action plan, so that individuals know what is expected from them, and importantly, the support that they will access and get from jobcentres and work coaches. The hon. Gentleman also mentioned mental health, which I will come on to. With regards to the proper process on sanctions, we have safeguarding and hardship payments, and those provide the support arrangements for people who are subject to a benefit sanction.

[Philip Boswell]

If the proper process is indeed in place, why are 50% of appeals successful?

[Priti Patel]

As I said, a sanctions process is in place. It is a proper process that includes the claimant from the start, so the claimant is fully engaged in the process, the discussions and the claimant commitment or the action plan, which clearly states what is expected of them.

On the overturning of sanctions and appeals, I cannot comment on individual cases, but I emphasise that the claimant commitment and the action plan are undertaken with the claimant from the start. The parameters are there. The individual knows exactly what is required of them. Importantly, it is a two-way process, with work coaches and the jobcentre. They set out not only what the claimant commitment is and what is expected from the individual, but importantly, the support that they will provide to that individual.

I know that a few cases were highlighted. The hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) mentioned a couple of cases. I am very happy to look into those, if she would like to share them with me after the debate, and to work through those individual cases with her. I will come on to the point made by the hon. Member for Airdrie and Shotts about individuals with particular conditions, such as mental health conditions, or with caring responsibilities or disabilities. Individuals have different circumstances, as we all recognise. It is absolutely right that individual circumstances, conditions and responsibilities are taken into consideration and that claimants are given a full opportunity to provide the good reason for not complying when a decision is made by the decision maker.

Coming back to the point about process, there is, of course, the opportunity to have a mandatory reconsideration, whereby there is a further opportunity, on an individual basis, to provide information and for more facts to be considered.

[Emily Thornberry]

The Minister is being very generous in taking as many interventions as she has. She has moved back to process, on which I wanted to ask her a question. She said that the number of sanctions is going down, but a large number of people are moving on to universal credit, and the Department for Work and Pensions does not publish statistics for those who have been sanctioned on universal credit, as I understand it. Will the DWP undertake to start publishing statistics on people who have been sanctioned who are getting universal credit?

[Priti Patel]

If I may, I will come back to the hon. Lady on that point. She will be fully aware that universal credit is being rolled out and will be rolled out fully by April next year. However, I will come back to her on the point about UC and sanctions.

I was making the point about the process and support for claimants with health conditions. In addition to looking at any other cases that Members would like to raise with me, I make the point that jobcentre staff are trained to support claimants with health conditions, and mental health conditions in particular, during their job search and have access to more expert advice if that is needed. With that, we are ensuring that safeguarding measures are put in place to protect vulnerable claimants, particularly ESA claimants, with mental health conditions. We have a process and a system whereby ESA claimants, when engaged with the jobcentre, can receive a home visit from a visiting officer, should that be required. It is also fair to make the point that, with the Work programme, providers must make every attempt to engage on a face-to-face level if they identify a claimant as vulnerable.

The debate gives me the opportunity to raise with the House the fact that for mental health claimants in particular, the Government have outlined a new joint unit, very much focused on the Department of Health working with the DWP, looking at individuals with health conditions and health barriers—mental health being one of them—and at how we can provide more tailored and integrated support to help those claimants, many of whom, it is fair to say, are on employment and support allowance and are furthest away from the labour market.

More than 60% of ESA claimants say publicly and frequently that they want to work, but we need to find the right journey and support for them to get back into work. This Government have just started that important work through the new joint health and work unit of the two Departments. That is a positive step forward, and I look forward to working with all right hon. and hon. Members to see how we can advance.

The hon. Member for Airdrie and Shotts mentioned the yellow card early warning system, which was announced in response to a recommendation by the Work and Pensions Committee in its recent report on sanctions. Its Chair, the right hon. Member for Birkenhead (Frank Field), welcomed our response and, importantly, our willingness to engage with the Committee to ensure that the conditionality system works as it should. In our response to the Committee, we announced that we would trial a sanctions warning system giving claimants a further two weeks to provide evidence of good reason before a decision is made. It is important that that will strike the right balance between fairness and conditionality. We intend the trial to operate in Scotland from March 2016 and to run for approximately five months. A full evaluation of the trial will be undertaken, and the findings will be available from autumn 2016. As I said, I am happy to discuss the findings and the roll-out as it continues.

We have responded positively to the independent Oakley review. As a result, we have worked with behavioural insight experts to enhance our engagement, our approach and the way in which we communicate sanctions. We have published a JSA sanctions fact sheet through Government channels; we are improving the clarity of the JSA and ESA hardship application process; and we are making improvements to the payment process to ensure that payments are made within three days. We are very clear about that, as we stated in our response to the Work and Pensions Committee. We have accepted all 17 of the Oakley recommendations to improve the process, and we will undertake a number of improvements to JSA and ESA sanctions. The Chair of the Select Committee made it clear that he is pleased that the Government accepted its approach and many of its comments on sanctions, and particularly our willingness to change.

Food banks have been mentioned. We are trialling the DWP working with food banks in Manchester, and we will report back on the observations from that.

In conclusion, the employment support offered by jobcentres has been based on conditionality, but it has also been personalised to help people into employment with wide-ranging provision of skills and employability support. There are clear expectations on people under the conditionality system, such as work search expectations, which we have touched on in the debate. A key part of our employment and support programme is the principle of conditionality, and we will keep our sanctions process under constant review to ensure that it continues to function effectively and fairly. We will also work with the Work and Pensions Committee, and we will take on board the views and comments that have been aired this afternoon.

Social Security

Priti Patel Excerpts

Tuesday 1st December 2015 Commons Chamber

[The Minister for Employment (Priti Patel)]

I beg to move,

That the draft Welfare Reform (Northern Ireland) Order 2015, which was laid before this House on 26 November, be approved.

The order will ensure that the people of Northern Ireland can benefit from the radical programme of welfare reforms enabled by the Welfare Reform Act 2012 in Great Britain. That landmark act ushered in a new welfare contract with the British people. It said to those who are able to work, “Work will always pay.” It said to the most vulnerable in society, “We will continue to provide you with the support you need”, and it said to the taxpayer, “Your hard-earned money will be spent responsibly.”

This new contract reflects principles which continue to guide our welfare reform programme—that work is the best route out of poverty, that spending on welfare should be sustainable, that people on benefits should face the same choices as those in work, and that the most vulnerable should be protected. Those are the principles that underpin the Welfare Reform Act 2012, and they are the principles that underpin the Order in Council before the House today.

Before I turn to the specifics of the order, I want to remind the House of the desperate need for welfare reform in Great Britain and Northern Ireland. When we took office in 2010 nearly 1 in 5 households had no one working, the number of households in which no one had ever worked had nearly doubled, and nearly 1.5 million people had been on benefits for most of the previous decade. The welfare system, with its byzantine complexity and perverse incentives, had allowed people to become detached from the rest of society, trapped in worklessness and dependency.

Over the past five years, we have stuck to our economic plan, delivered welfare reform and seen great progress: employment is up over 2 million; there are over 680,000 fewer workless households; and the number of people claiming the main out-of-work benefits has fallen by 1 million. In Northern Ireland, too, there have been improvements in the labour market, with 33,000 more people in employment than in 2010 and the claimant count down nearly 30% over the same period, but there is still much more to do. Northern Ireland has a lower proportion of its working age population in work than any other country or region of the UK; 130,000 households have no one in work; and 5% of those claiming the main out-of-work benefits across the UK as a whole are in Northern Ireland, which is well above its share of the UK working-age population.

In rebalancing Northern Ireland’s economy to meet the challenges of today’s global economy, we are tackling these challenges and creating jobs. Economic reforms, such as the proposed corporation tax reduction, will be vital, but economic reforms alone will not create a more prosperous society or improve the life chances of people trapped in dependency. As my right hon. Friend the Secretary of State for Work and Pensions has said many times in this House, economic reform must be complemented by social reform. We must ensure that people are supported and incentivised to take advantage of the opportunities that economic growth can create, and that is what the order does.

Improved incentives are at the heart of universal credit. The single taper rate ensures that work will always pay, and the stronger conditionality framework encourages claimants to do everything they reasonably can to find or prepare for work.

[Lady Hermon (North Down) (Ind)]

The Minister will know that the Belfast agreement created two statutory organisations: the Northern Ireland Human Rights Commission and the Equality Commission for Northern Ireland. What consultation have the Government conducted with them on these welfare reforms?

[Priti Patel]

Full and public consultation has taken place, and all the information has been made available repeatedly.

Early evidence suggests that universal credit is making a difference. Compared to current jobseeker’s allowance claimants, universal credit claimants look for work more, enter work faster and earn more. The benefit cap is also having a positive impact in Great Britain, with capped households 41% more likely to go into work than similar uncapped households. It must be right that the people of Northern Ireland benefit from these reforms, so the order provides the legislative framework to implement them in Northern Ireland, as well as replacing disability living allowance with the personal independence payment, which helps towards additional living costs associated with a long-term health condition or disability and is based on how a person’s condition affects them, not on the condition they have; reforming contributory benefits so that they align with universal credit conditionality, including through the introduction of a claimant commitment as a condition of entitlement; time limiting employment support allowance to underline the principle that with the right support claimants are expected to return to work; and introducing tougher penalties for benefit fraud.

The transitional provisions in the order allow the Secretary of State to exercise the vast majority of regulation-making powers in the first instance, and our intention is to introduce the regulations in the early new year, working with colleagues in Northern Ireland. It will be for the Northern Ireland Executive, however, to implement the changes, and regulations relating to the top-ups outlined in the Stormont House and fresh start agreements will be taken forward by the relevant Northern Ireland Department in the Assembly.

It is important to remember what the order is about and what it is not about. It is not intended to diminish Northern Ireland’s devolution settlement. As my right hon. Friend the Secretary of State for Northern Ireland has made clear, the legislative approach we are taking has arisen at the request of the Northern Ireland parties, and the Assembly has given its consent. The order also reflects the draft Northern Ireland Welfare Reform Bill, which has been debated at great length in the Assembly over the past three years. Accordingly, the order includes a number of amendments that reflect the will of the Assembly, including an 18-month limit for higher level sanctions and discretionary payments.

This order is about building and delivering the fresh start agreement. It is about supporting hard work and aspiration, and creating the right incentives for people to fulfil their potential and create a safe, secure and self-sufficient life, supported by, but independent from, the state. It is about making sure that spending on welfare is sustainable and fair to the taxpayer, while at the same time protecting the most vulnerable. Building an economy based on higher pay, lower taxes and lower welfare is both right for the UK and right for Northern Ireland. I commend the order to the House.

Universal Credit (Work Allowance) Amendment Regulations 2015

Priti Patel Excerpts

Thursday 19th November 2015 General Committees

[The Minister for Employment (Priti Patel)]

It is a pleasure to serve under your chairmanship, Sir Edward. Before I address the points that have been raised, I should say that it is important to remember the fundamental principle of the design of universal credit. It has been designed to transform people’s lives by taking on the highly ambitious task of reforming the welfare system and the labour market, so as ultimately to generate wider economic benefits in excess of £7 billion every year.

The welfare system we inherited from Labour was not working. Welfare spending on people in work rose from £6 billion in 1998 to almost £28 billion in 2010; yet during that time, in-work poverty increased by approximately 20%—that figure is from the statistics on households on below-average income. The Government are quite rightly changing that situation by moving from a low-wage, high-tax society to a high-wage, low-tax one. As a result, more people will be supported by the wages they earn and the benefits they receive. That is better for them as individuals and for the country and the economy as a whole.

Universal credit will remove the barriers that prevent people from finding work by increasing their hours and earnings. The system we inherited made welfare more attractive than work for millions of people. By contrast, universal credit incentivises work, renews personal responsibility and, importantly, rewards positive work choices.

Removing the current requirement in the tax credits system to work 16 hours per week and having a single taper rate of 65% are at the heart of that approach. Those changes will ensure that universal credit reduces gradually as a claimant’s earnings increase, so that they will not lose their benefit all at once if they are on a low income. In addition, universal credit stays with claimants as they move into and progress in work, and increase their earnings. That gives them greater confidence and freedom to take up more work without the worry of additional bureaucracy and form filling that might have occurred if they lost their job or their circumstances changed.

We should make no mistake here: universal credit will make a huge difference in its own right to families up and down the country. Creating those greater incentives to find a job will mean that up to 300,000 more households will be in work and around 3 million households will gain, on average, around £180 per month. The removal of the 16 hour a week threshold is expected to help up to 100,000 additional families, with improved incentives for 700,000 out-of-work lone parents to take their first supported steps into work, something that we should all welcome.

[Margaret Greenwood (Wirral West) (Lab)]

Will the Minister comment on the impact on the under-25s, who do not gain from the new living wage and will be severely affected by these measures?

[Priti Patel]

There is no doubt at all that universal credit will have a powerful and positive effect on labour market participation. The under-25s will benefit in due course from the increase in the personal allowance, which will mean that they keep more of the money that they earn. Those aged 18 to 21 will benefit from the new schemes that the Government are bringing in to support more work and training, and give help in getting on apprenticeship schemes. The positive choices will be out there for them to gain skills and get their foot closer to the labour market through the support of universal credit as a structure and through our work coaches, who will support them in work and will be of great benefit to them.

We can already see that universal credit is working and is changing lives across the country. It is now available in more than 500 jobcentres nationwide, covering more than 270 local authorities across England, Scotland and Wales, including the constituencies of many hon. Members on the Committee—Dudley North, Glasgow South West, Alyn and Deeside, and Islington South and Finsbury. Opposition Members will welcome the fact that universal credit is helping their constituents to look for work, to enter work more quickly and to earn more money in work.

Universal credit is a transformational system in the way it provides support, breaking down the barriers that prevent people from gaining work. Our network of trained and dedicated work coaches is transforming the relationship that we have with claimants and, importantly, that they, in turn, have with the labour market. We are supporting people from various backgrounds—including, importantly, people with disabilities and health conditions —into work by forging strong partnerships with key employers, ranging from National Grid to Barclays. We also have the Government’s Disability Confident campaign, which puts people at the heart of securing employment opportunities.

Many parents have previously cited, and currently cite, childcare costs as a specific barrier to entering the labour market. Universal credit currently covers up to 70% of eligible childcare costs, but, from April next year, we will increase that to 85%. That will make an enormous difference to people’s lives, with an increase of up to £1,368 per year for every child.

[Emily Thornberry]

I applaud the right hon. Lady’s cheerful rhetoric in the face of my questions to her. However, is it not right that single parents’ work allowance will be cut? Is it not also right that people without children will have no work allowance at all?

--- Later in debate ---

[Priti Patel]

As I said—I will restate this for the benefit of the Committee—universal credit will support people with no children and others in increasing their working hours. Of course, that is the purpose of universal credit; it is not about having a system that supports people endlessly in receiving allowances. The point is that work incentives have been improved in universal credit, and they are much better and clearer than those in the legacy system. That applies to people of all ages who are on universal credit.

I should emphasise for the Committee that, in looking at not only universal credit, but welfare reforms on the whole, we should be clear that the Government have faced difficult choices in addressing the fiscal position we inherited, and I touched on the welfare legacy we inherited in 2010. The changes to the work allowance should be considered as part of the wider package of support for claimants. Universal credit still provides better support than the current system, including by providing dedicated work coaches who can give advice on job applications and interviews. I would like to think that all Members in the House would welcome that.

Universal credit also supports flexible working by reducing or removing the administrative burdens that existed previously when an individual in or out of work claimed different benefits. I emphasise again that the removal of the 16 hours worked per week threshold allows people to take up jobs for any hours. That, in itself, incentivises people to work more hours.

[Margaret Greenwood]

The Select Committee report on tax credit cuts also raised concerns about cuts to universal credit and urged the Government to pause before continuing. Why are they pushing ahead with the cuts to universal credit before responding to that report?

[Priti Patel]

The hon. Lady touched on tax credits, and she will, rightly, have to wait until next week’s spending review to hear what else will happen in that particular space. However, I emphasise again for everybody on the Committee, including the hon. Lady, that the incentives to move into work and to increase hours will be strong in universal credit. They are far better than the system of benefits and tax credits that they replace. Moreover, universal credit ensures that those on very low incomes are protected. The Budget changes will also need to be considered as part of the wider Government support that we have put in place for working families, much of which I have touched on. Help can be targeted much more effectively at those who face the biggest barriers to work than through a blanket work allowance for all claimants, and I am sure all Members will agree with that.

Beyond universal credit, the Government have set out a vision for a higher-wage, lower-tax and lower-welfare society. As a first step, we have raised the personal allowance to £11,000 for the next tax year, and we have pledged to increase it again to £12,500 by the end of this Parliament. We have introduced the new national living wage, which will come in next year. As we have stated previously, that is forecast to reach more than £9 by 2020, based on the recommendation from the Low Pay Commission.

We expect many universal credit claimants to respond to these changes by actively seeking more work. We will rightly support them in that. I remind the Committee that in the current welfare system more than 500,000 people would lose more than 80p for every extra £1 they earned. Virtually no one will face that level of withdrawal rate under universal credit.

[Emily Thornberry]

I am listening carefully to the hon. Lady but she is just not right. People without children will not have any work allowance at all. They will therefore be losing 65%. When tax and national insurance are added to that, they will be losing more than 70%. Some will work for £1 and get only 30p of it.

[Priti Patel]

With respect to the hon. Lady, she is wrong, because universal credit will offer real support to people in work. I have touched on the wider package of measures, many of which were announced in the Budget this year by my right hon. Friend the Chancellor. Importantly, not only will universal credit offer support into work, but it will continue to be a vital safety net for the most vulnerable in society.

The package of measures announced in the Budget ensure that welfare will be put on a sustainable footing. We acknowledge that these are wider and difficult decisions but they are the right ones that put work first, restore fairness to the welfare system and the taxpayer, and importantly will continue to provide a safety net for the most vulnerable in society.

European Union (Approvals) Bill [Lords]

Priti Patel Excerpts

Tuesday 3rd November 2015 Commons Chamber

[The Minister for Employment (Priti Patel)]

I beg to move, That the Bill be now read a Second time.

The purpose of the Bill is to approve two draft decisions of the Council of the European Union. For the UK to agree the draft decisions at Council, Parliament must first give its approval, as the decisions rely on article 352 of the treaty on the functioning of the European Union. Article 352 allows the Union to take action to attain one of the objectives set out in the treaties but for which there is no specific power given. However, the European Parliament must give its approval, and unanimous support must be given by all other member states.

Section 8 of the European Union Act 2011 provides that a Minister may vote in favour of an article 352 decision only where a draft decision is approved by an Act of Parliament. I am setting out the draft Council decisions and will provide Members with the opportunity to debate and decide whether to approve the measures.

The first decision will enable the former Yugoslav Republic of Macedonia to be granted observer status in the European Union Agency for Fundamental Rights. The agency is the EU body with the objective of providing assistance and advice on fundamental rights issues to the EU institutions and to member states when implementing Union law. It carries out the same role for EU accession states with observer status. This measure does not extend the competence of the agency.

The proposal has been in existence since 2010 and it cleared the UK parliamentary scrutiny process in place at that time. The Greek presidency lifted its block on the decision in April 2014 and the decision re-emerged last year with all other member states ready to vote in favour of the decision. However, the UK had to enter the scrutiny reserve for the decision pending approval by an Act of Parliament due to the requirements of the EU Act.

The former Yugoslav Republic of Macedonia has been an EU candidate country since 2005, but in recent years there has been serious backsliding on the reforms. A political crisis has been unfolding in the country in the past year, which has raised concerns about the rule of law and adherence to democratic principles. A European Commission report issued in June set out a series of recommendations needed to return the country to the path to EU accession. This included reforms related to freedom of expression and the rule of law. Observer status at the agency could allow the country to have access to advice and assistance on fundamental rights issues to help to tackle its reform challenges, and provide assistance and help to the country on human rights issues.

The second measure gives effect to a decision by the Council enabling the EU tripartite social summit to continue to operate. The summit is a meeting of representatives of European social partner organisations, the Commission and the Council, and it meets on the eve of the European Council in the spring and autumn for high-level discussions between the three parties on aspects of the European agenda for growth and jobs. The summit was established by a Council decision in 2003, but, under the Lisbon treaty, agreed in 2007, the legal basis for the summit—article 202 of the treaty of Rome—was repealed. The decision in the Bill re-establishes the legal basis of the summit.

The decision takes account of formal changes in the EU institutions since the last decision and name changes among the employer organisations. The Government can support the continuation of the summit because discussion of the need for jobs and growth can support the labour market reforms needed in other member states. In the intervening decade, during the existence of the summit, no apparent risk to the UK has emerged. The final agreed text of the summit measure has been published by the Council and has received consent from the European Parliament.

[John Redwood (Wokingham) (Con)]

Are there any financial consequences from these decisions?

[Priti Patel]

I can assure my right hon. Friend that neither decision has any financial implications for the UK.

Finally, I do not consider that any of the Bill’s provisions engage the rights set out in the European convention on human rights, so no issues arise about the Bill’s compatibility with those rights. It is intended that the Bill will come into force on the day of Royal Assent. I look forward to hearing the views of the House.

--- Later in debate ---

[Priti Patel]

I thank all Members for their contributions to the debate.

The Bill will approve two draft Council decisions, the first of which, as has been discussed, relates to the participation of the former Yugoslav Republic of Macedonia as an observer in the work of the European Union Agency for Fundamental Rights. The former Yugoslav Republic of Macedonia’s objective is to become a member of the European Union, but it needs to implement key reform priorities, as set out by the Commission. The Government want to encourage it on the path of reform, and granting observer status in the agency is consistent with that approach. The decision will allow the agency to collect, analyse and disseminate data on the human rights situation in the country. It will also allow the former Yugoslav Republic of Macedonia to participate in the agency’s activities. The former Yugoslav Republic of Macedonia should be supported to increase its human rights awareness and the promotion of fundamental rights within the country.

The second measure relates to the tripartite social summit. The summit has met for a number of years, and the draft decision will re-establish the legal basis for it. Just to be clear, it does not confer any new rights or competence on the EU. I want to restate that there are no financial implications, as my right hon. Friend the Member for Wokingham (John Redwood) highlighted.

[Bob Stewart]

But there must be financial implications, because EU civil servants will be working and someone will probably be appointed to supervise this activity. That is a financial implication.

[Priti Patel]

There are no new financial implications, as I said clearly in my opening remarks. On that basis, I commend the Bill to the House.

Question put and agreed to.

Bill accordingly read a Second time.

European Union (Approvals) Bill [Lords] (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the European Union (Approvals) Bill [Lords]:

Committal

(1) The Bill shall be committed to a Committee of the whole House.

Proceedings in Committee, on Consideration and up to and including Third Reading

(2) Proceedings in Committee, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings in Committee of the whole House.

(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.

Programming committee

(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.

Other proceedings

(5) Any other proceedings on the Bill (including any proceedings on consideration of any message from the Lords) may be programmed. —(Guy Opperman.)

Question agreed to.