Rachel Reeves
Main Page: Rachel Reeves (Labour - Leeds West)Department Debates - View all Rachel Reeves's debates with the Department for Work and Pensions
(9 years, 10 months ago)
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Rachel Reeves (Leeds West) (Lab)
I beg to move,
That this House notes that after £612 million being spent, including £131 million written off or written down, the introduction of Universal Credit is now years behind schedule, with no clear plan for how, when, or whether full implementation will be achievable or represent value for money; further notes the admission of the Minister of State for Disabled People in oral evidence to the Work and Pensions Committee on 11 June 2014 that over 700,000 people are still waiting for a Work Capability Assessment, and the report of the Office for Budget Responsibility in March 2014 that found that projected spending on Employment and Support Allowance has risen by £800 million since December; recognises the finding of the Committee of Public Accounts in its First Report, HC 280, that Personal Independence Payment delays have created uncertainty, stress and financial costs for disabled people and additional budgetary pressures for Government; further recognises that the Work Programme has failed to meet its targets, the unfair bedroom tax risks costing more than it saves, and other DWP programmes are performing poorly or in disarray; and calls on the Government to publish (a) the risk register and other documentation relating to the delivery of Universal Credit as a Freedom of Information tribunal has ruled it should, (b) the time in which it will guarantee that disabled people will receive an assessment for PIP and (c) a full risk assessment showing the potential impact of delays, delivery problems, contract failures and underperformance on (i) people receiving or entitled to benefits, (ii) departmental budgets and spending plans and (iii) the Government’s welfare cap.
This debate is about how we as a country treat our fellow citizens. It is about the young woman diagnosed with a life-limiting illness who has waited six months for any help with her living costs. It is about the disabled man whose payments have been stopped because he did not attend an interview to which he was never invited. It is about the millions of working people in this country who pay their taxes and national insurance every week and who want to know that their money is ensuring a strong and efficient system of social security that will be there for them and their families, with rules applied fairly and promptly to ensure support goes to those who need it and not to those who do not. Instead, the Government are wasting more and more taxpayers’ money on poorly planned and disastrously managed projects, and are allowing in-work benefits to spiral because of their failure to tackle the low pay and insecurity that are adding billions of pounds to the benefits bill.
There is strong support in Britain for a social security system that helps people get by when they fall on hard times; secures dignity and a decent standard of living for those unable to work because of sickness or disability; and ensures that no child goes hungry, without essential clothing or without adequate housing because their parents are in low-paid or insecure work. Instead of a system that works, under this Government we have got chaos, waste and delay. Chaos is 7,000 people waiting for a work capability assessment, and the Government still not able to tell us which provider will replace Atos. Waste is more than £600 million spent on universal credit, including £131 million written down or written off, with no clear assurances about how, when or whether this important project will ever be fully operational or provide value for money. Delay is the desperate people, many of whom have been working and paying into the system for years or decades and are now struck by disability or illness, waiting six months or more for help from the Department for Work and Pensions.
Paul Uppal (Wolverhampton South West) (Con)
I am glad that the hon. Lady has mentioned the issue of waste. Does she feel comfortable that under the last Labour Government housing benefit bills were occasionally more than £100,000—a figure that many people in the private sector could never afford?
Rachel Reeves
Does the hon. Gentleman feel comfortable that under this Government spending on housing benefit for people who are in work has gone up by more than 60%, reflecting the fact that more people are in low-paid or insecure work and are unable to make ends meet, even though they may be working all the hours God sends?
We have a Government who are totally out of touch with the reality of life for millions of hard-working taxpayers and those in need of help. The Government are careless with the contributions that people make to the system, callous about the consequences of their incompetence for the most vulnerable, and too arrogant to admit mistakes and engage seriously with the task of sorting out their own mess.
Robert Halfon (Harlow) (Con)
Does the hon. Lady agree that the whole thrust of the Government’s reforms has been welfare into work? Since 2010, youth unemployment in Harlow has gone down by 30% and unemployment has fallen by a third.
Rachel Reeves
Of course I welcome the fact that unemployment, including youth unemployment, is now falling, but we have to face up to the fact that too many people in work are struggling to make ends meet. The hon. Gentleman will know from his constituency that some people who are in work have to rely on housing benefit and tax credits to make ends meet because they are not paid a wage they can afford to live on, they are on zero-hours contracts, or they are among the record numbers of people who are working part time but want to work full time. We need to address those challenges as well.
Charlie Elphicke (Dover) (Con)
Can the hon. Lady explain why the hon. Member for Dagenham and Rainham (Jon Cruddas) says that Labour’s welfare policies are cynical and punitive?
Rachel Reeves
It is all about ensuring that more people are in work through the compulsory jobs guarantee, ensuring that people have the skills to hold down a job with a basic skills test and a youth allowance, and doing more to ensure that people in work can earn enough to live on—through, for example, an increase in the minimum wage and ensuring that more people are paid the living wage. Those policies will make a huge difference to the hon. Gentleman’s constituents in Dover and Deal, which will be a Labour constituency after the next election.
Julie Hilling (Bolton West) (Lab)
Does my hon. Friend agree that it is an absolute scandal that the Government do not know what they are talking about? They talk about the number of jobs being created, but they do not know how many of them are on zero-hours contracts or how many are on Government schemes or how many have been transferred from the public sector. In fact, the Secretary of State knows absolutely nothing about these so-called jobs that the Government are supposed to have created.
Rachel Reeves
What we do know is that more than 5 million people—20% of the work force—are paid less than the living wage. Furthermore, 1.5 million people are on zero-hours contracts and 1.4 million people are working part time who want to work full time.
When it comes to detailing the extent of the Secretary of State’s dereliction, it is hard to know where to start. For a useful overview, we need look no further than the Department’s own annual report and accounts for 2013-14, which was released at the end of last week. It reveals the latest opinion of the DWP’s head of internal audit—that the Department has yet to take the necessary action to “address control weaknesses” and, in his words, to
“provide an improved…environment from which to manage the continuing challenges and risks faced by the Department.”
It lists no fewer than eight areas described as “significant challenges” where the Department still falls short. Universal credit, we are told,
“continues to be a significant challenge for both the Department and delivery partners”,
and it goes on to say that
“there continues to be an inherent level of risk contained in the plans.”
On fraud and error, we are told that the rate has “worsened” with respect to housing benefit and that the chance of the Government achieving their target for reduction
“remains a very substantial challenge and is unlikely to be achieved.”
The report confirms that in the area of contracted-out assessments for employment and support allowance and the new personal independence payments,
“the volume of assessments undertaken by providers…has fallen consistently below demand, with a detrimental impact on customer service and implications for forecast expenditure on sickness and disability benefits”.
In other words, it is hurting, but it certainly is not working.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
My hon. Friend is offering a stark indictment of this Government’s policies. Does she agree that another stark indictment of their policies is the massive increase in food banks across this country, another one of which I had to open in my constituency just a few weeks ago?
Rachel Reeves
I totally agree with my hon. Friend. Of course, these remarks are from the Government’s own report. In our constituencies we all see people who are so desperate that they have to queue at food banks to be able to feed themselves and their families. That is not something that should be happening in 21st century Britain.
Helen Jones (Warrington North) (Lab)
Is my hon. Friend aware that when I asked how many people in my constituency had been waiting more than six months or three months for medical assessments for personal independence payments, the Government told me that the figures were not available. In other words, they are not only incompetent; they do not know how incompetent they are!
Rachel Reeves
My hon. Friend puts it very succinctly, and I am coming on to some of the examples we have all heard about from our constituency surgeries.
What we here must take care to do and what this Government have now totally failed to do is to remember the human impact, often on people in vulnerable circumstances, of this catalogue of chaos. Behind the bureaucratic language and spreadsheets showing backlogs and overspends are people in need who are being let down and mistreated, and taxpayers who can ill afford the mismanagement and waste of their money. Let me provide just a few examples that I am sure will be familiar to Members of all parties from our constituency surgeries.
In February, a woman came to my surgery in a state of desperation. Her husband had suffered a stroke the previous year, rendering him unfit for work. He applied for the personal independence payment and employment and support allowance, but a month after making the application, they were still waiting just to get their Atos assessment. She had given up work to look after her husband, but because they had not had their decision on PIP, she could not apply for carer’s allowance. They were so short of money that I referred them to one of the food banks. Both had worked for many years and paid into the system, but when they needed support, it was not there for them. In March this year, the husband died. His Atos appointment letter had never come. His wife, now a widow, had been made unwell by all the stress of this experience. She applied for ESA, but she has heard nothing.
James Duddridge (Rochford and Southend East) (Con)
Does the hon. Lady regret the fact that it was her Government who appointed Atos in the first place?
Rachel Reeves
As the hon. Gentleman will have heard, the example that I gave involved personal independence payments, which were introduced by this Government, not the last one. We have made our position clear. Although we appointed Atos, we said last autumn that it should be sacked. However, it is not just a question of replacing Atos; it is a question of reforming the work capability assessment and introducing targets relating not just to the number of decisions, but to the correct decisions.
Another couple came to me after applying for personal independence payments last August. The husband was asked to attend an assessment on a date when he would be in hospital for a spine operation. Nursing staff at Leeds General Infirmary advised the Department for Work and Pensions that he would be unable to attend the appointment, and he was told that a home assessment would be arranged, but he then heard nothing for months. In May, I wrote to the Department on the couple’s behalf. The reply that I received said simply:
“we will respond to your query as soon as possible but due to the volumes being received and the PIP system still being in its infancy there may be delays in getting back to you”.
Meanwhile, we also referred that couple to a food bank when their money ran out. These people deserve better.
Sheila Gilmore (Edinburgh East) (Lab)
Does my hon. Friend share my surprise that, although the problems with Atos were known about—and it is now being suggested that they had been known about for some time—a contract was given to that organisation for PIP? Was due diligence carried out before the new contract was issued?
Rachel Reeves
My hon. Friend has made a very important point. The PIP contract was awarded to Atos although we knew that there were problems with the work capability assessment. It was this Government’s decision to give a contract to a provider that we already knew was failing.
Since this debate was announced at the end of last week, my office has been inundated by communications from people from all over the country with similar tragic and appalling stories to tell. This morning I spoke to Malcolm Graham from Romford, who last September was diagnosed with cancer of the oesophagus. He underwent 10 weeks of chemotherapy and a 10-hour operation. He had been unable to work, and he finds it hard to get around. He applied for a personal independence payment and employment and support allowance on 23 September last year. After phoning the Department nearly every day since then, he finally had his assessment for personal independence payment on 16 May. On 20 June—five weeks later—he received a letter from the Department saying that it now had all the information it needed in order to make a decision, but today, more than nine months after his application, he has yet to receive notification of what support, if any, he will receive. In the meantime, he has had to rely on help from family and friends. He has struggled to keep up with his bills, and has even been visited by a debt recovery firm.
Until he was struck by cancer, Mr Graham had worked all his life. For 40 years he had paid his tax and national insurance. However, he told me today “When I needed it, the help was not there. I never knew what it would be like to be on the other side of the fence.” He added: “But now that I do, I wish that the Secretary of State would imagine what it is like being on this side of the fence—what it is like being in my position.”
Mr Gordon Marsden (Blackpool South) (Lab)
My hon. Friend is making a very strong and moving speech about the impact on individuals of these horrendous fiascos, but does she agree that the issues involving PIP go beyond some of the examples that have been given today? I am thinking particularly of Motability. Many of my constituents have been caught by the double whammy of delays involving, first, the disability living allowance and now PIP. They have waited long periods for a resolution, but because a decision is being reconsidered, their Motability—the lifeline that has enabled them to get out of their homes—has been taken away before that decision has been made. Is that not a horrendous indictment of the Government? [Interruption.]
Rachel Reeves
Government Members should listen rather than heckle, because my hon. Friend has made an incredibly important point. I recently went to Ringways garage in Farnley, in my constituency, to give someone the keys to a Motability car. That person talked about the difference that Motability made, in terms of independence and family. However, as my hon. Friend has said, we also know that, as a result of some of the Government’s reforms, many people who need to be helped to obtain the car that will give them the freedom that the rest of us take for granted have had that support taken away from them. The delays and the chaos is one thing, but there is also some of the substance of those decisions.
Rachel Reeves
I have already given way to the hon. Gentleman, so, no, I will not.
I know that many hon. Members will have similar stories to tell today, and I hope the Secretary of State stays to listen, because when we write to the Department with our constituents’ problems we only ever get replies from the correspondence unit. I realise that the Secretary of State is probably deluged with letters raising problems.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
I am sorry, but I just cannot agree with that. Every letter from a member of the Privy Council gets replied to by me, and every other Minister replies to every single other Member of Parliament’s inquiry. If the hon. Lady is now insinuating that we do not, perhaps she could demonstrate why.
Rachel Reeves
Well, I will send the Secretary of State all the letters I have had from his correspondence unit, not one of them signed by him. [Interruption.] Well, letters that I have written to the Department about the challenges facing—[Interruption.] The right hon. Gentleman says he replies to these letters; he has not written a single letter to me about—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The House is discussing an important point.
Rachel Reeves
If the Secretary of State now claims that he signs his letters “The correspondence unit”, perhaps he has replied, but I would have expected the Secretary of State to sign the letters and I will be very happy to forward all the letters to him. [Interruption.] He carries on chuntering from a sedentary position; I have not had a single letter about my casework from him. I will send them all to him, and perhaps he can write to me and my constituents explaining why they have been treated so abysmally by him and his Government.
Mr Mark Harper (Forest of Dean) (Con)
All I can say is that my experience when raising cases from my excellent local citizens advice bureau is that they have been answered very well, in full and thoroughly by the Minister for disabled people, my right hon. Friend the Member for Hemel Hempstead (Mike Penning), who has listened to my concerns and answered them, largely dealing with the appalling performance of Atos, hired by the Labour party and dealt with successfully by my right hon. Friend.
Rachel Reeves
Well, maybe there is one rule for Tory Back Benchers and another rule for Labour party MPs, because I have not had a single letter signed by the Secretary of State.
Mike Penning
This one! The shadow Secretary of State should look behind her, and she will see many, many of her colleagues nodding when I say that I have written personally, and dealt with cases personally, and when there was a mistake, I admitted there was a mistake, so the generalisation she has just made about party political bias is fundamentally wrong.
Rachel Reeves
The Minister for disabled people has never replied to the letters I have sent to the Department for Work and Pensions about people in my constituency. I have given two examples today. [Interruption.] He says he has; can the right hon. Gentleman stand up and say he has ever replied to a letter from me?
Mike Penning
Letters from a Privy Counsellor, which the right hon. Lady is, will be responded to by the Secretary of State. [Interruption.] Well, if you’re not a Privy Counsellor, it would be me responding, but look around behind you—I apologise for the “yous”, Madam Deputy Speaker—and see that I have responded in depth to colleagues. They may not have liked the reply, but I have done that, and if the hon. Lady had written to me directly, I would have replied.
Rachel Reeves
Maybe the letters got lost in the post, but I have never received a letter from the Minister for disabled people.
Ian Lucas (Wrexham) (Lab)
May I just say that the Minister last week did contact my office, because I was sent a letter by an official, not him—
Ian Lucas
And he apologised. But I have to say that the Secretary of State clearly does not know what is going on in his own Department. He is not even listening to the debate, and, frankly, let me say this about the views expressed by the Conservative party about the vulnerable people who are coming to us for help: they are being disregarded and treated with contempt by the laughing cavaliers opposite. They should be ashamed of themselves.
Rachel Reeves
I thank my hon. Friend for that intervention.
I hope the Secretary of State also responds to the calls we are making today for the Government to give sick and disabled people some clarity and assurance by publishing a guaranteed time limit for the assessment of claims. For example, Macmillan Cancer Support has recommended that the personal independence payment assessment process be limited to 11 weeks. I hope the Secretary of State will tell us today that he will undertake to give that guarantee—if not, why not?
We are also calling for the Secretary of State to own up to the extent of the problems in his Department, particularly the mounting costs arising from problems with the personal independence payment, the work capability assessment and universal credit. The introduction of personal independence payments in place of disability living allowance was supposed to save £780 million in annual spending by next April, but with £200 million a year being spent on administration, including £127 million a year going to contracted-out assessment providers, this change is set to be completed not next year but, at this rate of progress, in 42 years’ time.
Kerry McCarthy (Bristol East) (Lab)
I received an e-mail today from a constituent who is in considerable distress. She first applied for her PIP on 1 November 2013, so she has now been waiting for eight months. She is in work and she has always been physically fit but she has now just been struck by misfortune. She is in such distress and Atos has told her that her referral is subject to a quality check to see whether Atos is doing its job properly. Clearly, if it has taken eight months to get to this stage, it is not doing its job properly.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Interventions must be short because a great many Members are waiting to speak and it is simply unfair if people make speeches instead of interventions.
Rachel Reeves
Eight months is far too long for anyone to have to wait and, clearly, any further delay is totally unacceptable.
On the work capability assessment, the Government spend £100 million a year on the contracted assessors, as well as tens of millions more on decisions that are appealed. Now, the process has almost reached “virtual collapse”, according to the senior judge overseeing the trials, with Atos walking away from the contract, the Government yet to identify a replacement and a backlog of more than 700,000 assessments in a queue. As a result of the disarray, we are seeing spiralling costs to the taxpayer, with the latest report from the Office for Budget Responsibility showing an £800 million increase in projected spending and leaked documents revealing that the Government now see this as one of the biggest fiscal risks, with spending on course to breach their own welfare cap.
Guy Opperman (Hexham) (Con)
This debate is also about employment, so will the hon. Lady welcome the rise in employment, not least in her constituency, where, according to the House of Commons Library, the number of jobseeker’s allowance claimants has reduced by 23% in the past year, with youth unemployment down 26% and unemployment among those who are 50 and over down by 17.6%?
Rachel Reeves
But what we have also seen in my constituency is that average wages in Yorkshire and Humber have reduced by £26 a week since the coalition came into government and employment and support allowance claims have increased by 0.9 percentage points during the same period.
Alison McGovern (Wirral South) (Lab)
On that previous intervention, does my hon. Friend share my sense of deep frustration that even after the 1980s the Conservatives have failed to learn that the important thing is not a falling claimant count, but the unemployment rate? Although that is thankfully lower, there are loads of other reasons to think that we still have problems in our economy.
Rachel Reeves
My hon. Friend is absolutely right to say that there is still an awful lot to do to reduce unemployment and ensure that everybody in work is earning enough to be able to support themselves and their families.
Let us now deal with universal credit, the Secretary of State’s pet project and the Prime Minister’s flagship welfare reform. Where are we with that? It was supposed to be the Government’s way of achieving £38 billion of savings over 10 years and £7 billion a year thereafter by reducing fraud and error and by encouraging more people into work. Today, with more than £600 million spent on set-up costs, we should be starting to see the benefits—1 million people should be claiming universal credit now, as part of a roll-out that the Government said would be completed by 2017—but instead we find that £130 million of this expenditure has already been written down or written off and only 6,000 of the simplest cases have so far received the benefit, which is less than 1% of the level it should be at now. Most worryingly of all, we now have no reliable timetable and no Treasury-approved business case to tell us how, when or whether this project will ever be fully operational or deliver value for money.
We have repeatedly called on the Government to come clean about the state of universal credit. The rescue committee, which we appointed to advise on the future of universal credit, has recommended that the books be opened for a warts-and-all review, with the National Audit Office signing off any new business case before it goes forward. But instead of moving on from the culture of secrecy and denial, which has been identified as the biggest fatal flaw besetting universal credit, the Government are instead spending yet more taxpayers’ money fighting freedom of information requests and court cases to try to stop the publication of documents setting out the risks, milestones and state of progress of this multi-billion pound project. They are hiding behind a veil of secrecy that is making universal credit harder, not easier, to deliver.
David Rutley (Macclesfield) (Con)
I respect the hon. Lady’s real world experience and the things that she has done in the business world before coming to this place. In that vein, will she not understand that it is vital to roll things out on a test-and-learn basis and not, as the previous Government did with tax credits, on a crash-and-burn basis?
Rachel Reeves
What I know from my business experience—I am sure the hon. Gentleman knows it as well—is that writing off and writing down £131 million of expenditure is not good value for money. It is good to test things, but I do not see this Government doing much learning from the mistakes they are making.
The evidence is now clear that the Secretary of State’s record has been a complete car crash.
Emily Thornberry (Islington South and Finsbury) (Lab)
On the point about learning lessons, is my hon. Friend aware that I have been making freedom of information requests to the Department in relation to mandatory reconsiderations? When people get their work capability assessment, and it has failed, before they can appeal there has to be a mandatory reconsideration. The Department does not know how many cases have been overturned, how many claimants have been left without any money and how long the longest period is for reconsideration. It cannot answer a single one of those questions under a freedom of information request.
Rachel Reeves
That links in with what I was saying earlier. If the Government do not learn from their mistakes, how can they make improvements?
Universal credit is widely off track; the work capability assessment has almost completely broken down; personal independence payments are a fiasco; the Work programme is not working; the Youth Contract is a flop; support for families with multiple problems are falling far short of its target; the jobmatch website is an absurd embarrassment; the unfair and vindictive bedroom tax is costing more money than it saves; and the Government cannot even agree on a definition of child poverty let alone take action to deal with it.
To paraphrase Oscar Wilde: to fail to deliver on one policy might be considered unfortunate; to miss one’s targets on two has to be judged careless; but to make such a complete mess of every single initiative the Secretary of State has attempted requires a special gift. It is something like a Midas touch: everything he touches turns into a total shambles.
Meanwhile, the Secretary of State will spew out dodgy statistics, rant and rave about Labour’s record, say “on time and on budget” until he is blue in the face and, in typical Tory style, blame the staff for everything that goes wrong. We have all long given up hope on the Secretary of State ever getting a grip on his Department. The real question today is when will the Prime Minister learn and take responsibility for the slow-motion car crash he has allowed to unfold? The DWP has the highest spending of any Government Department, and the responsibility for handling some of the most sensitive situations and some of the most vulnerable people in our country. We will all be paying a price for a long time to come for this Government’s failure to get a grip, and the lives of too many people, such as Malcolm Graham who is still waiting for his personal independence payment, have been irreparably damaged. It is clear that this Government will never take their responsibilities in this area with the seriousness that is needed. Let me pledge today that a Labour Government will. They will help those thousands of families who have been let down by the system and the millions of taxpayers who are seeing their money wasted. That change cannot come soon enough.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the Secretary of State, let me say that Members know perfectly well that making a long intervention instead of waiting to make a speech is simply rude and it is unacceptable. Interventions must be short. As there are so many Members waiting to speak, I will have to impose a time limit of six minutes on Back-Bench speeches, after the Secretary of State has spoken.
Mr Duncan Smith
It is the definition given by the consultants who refer the people in question to the programme. That group will be seen and dealt with within the 10 days. That is the definition.
I repeat that by the end of the year those on PIP will not be waiting for longer than 16 weeks.
I say to the hon. Member for Leeds West, who made a poor speech, that my Department has a proven track record of delivery—[Interruption.] In that case, perhaps she will answer this question, which has been raised before. A little while ago, in March, she is recorded as having said that, left to her, “all the changes that the Government has introduced” in welfare reform would be reversed “and all benefits” could be and should be “universal”. She has been asked this question before. It was a quote. I will give way to her if she wants to deny it.
Rachel Reeves
The right hon. Gentleman did not read out a quote and I deny what he said.
Mr Duncan Smith
I have to say to the hon. Lady that it is reported that she said that “all changes that the Government has introduced” in welfare could be reversed and “all benefits can be universal”. That is what she is quoted as saying. I will send her the quote if she likes. This is important.
Rachel Reeves
As I said, what the right hon. Gentleman read out is not a quote of what I said and I deny that that is my view.
Mr Duncan Smith
In that case, will she explain why she was saying—to a group called the Christian socialists, I think—that all the changes that the Government have introduced to welfare can be reversed and all benefits can be universal? That is what she said.
The Minister of State, Department for Work and Pensions (Steve Webb)
We have heard 41 speeches in a very worthwhile debate, including some particularly thoughtful contributions. We have heard from many members of the Select Committee, including its Chair, the hon. Member for Aberdeen South (Dame Anne Begg), and I will respond to her comments in a moment. Let me start, however, by discussing the clue in the title—it is the Department for Work and Pensions. From listening to the debate people would think that nobody is getting jobs these days and that pensions had been left alone in the state in which we inherited them. They would not realise that we have record levels of employment and they would not know that we have had falls in youth unemployment, female unemployment and long-term unemployment month after month after month, Even in the hardest-to-help groups, such as young people not in education, employment or training, the numbers are coming down. The Opposition motion had nothing to say about getting people back to work, yet that is the centre of our welfare reform and our strategy is working.
This is not all just about making work pay, although my hon. Friend the Member for Fareham (Mr Hoban), a former ministerial colleague, made a powerful contribution in which he mentioned sitting in a jobcentre and trying to work out whether or not someone would be better off in work. We are dealing with that situation through the universal credit reform, which will make work pay. As my hon. Friend the Member for Gloucester (Richard Graham) said, not only are we making work pay, but we are making saving pay. In the pensions space, we have seen state pension reform; effective automatic enrolment, with 3.6 million people auto-enrolled; charge caps, which are new to reform; and new models of workplace pension. Whether we are talking about work or pensions, this Department is working.
Before I move on to deal with the substance of some of the operational issues that have been rightly raised, I want to address the allegation the shadow Secretary of State made and to give her the chance to retract it. She said—I quote from the transcript—that “when we write to the Department with our constituents’ problems we only ever get replies from the correspondence unit.” She made the even more outrageous comment, “Well, maybe there is one rule for Tory Back Benchers and another rule for Labour party MPs”. So we checked our records and we found that she obviously does not read her own correspondence, as since 2010 DWP Ministers—[Interruption.] I hope I do not get in the way of her tweeting—it is #Igotitwrong. Since 2010 DWP Ministers have sent 46 letters directly to her, 33 to the hon. Member for Rhondda (Chris Bryant), 86 to the hon. Member for Stretford and Urmston (Kate Green), 93 to the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont) and 98 to the right hon. Member for East Ham (Stephen Timms). So much for not replying to their letters!
Rachel Reeves
I thank the Minister for giving me a chance to reply, as I have checked the letters I have written to the Secretary of State. I have had a reply from him to a letter regarding a constituent of mine called Latimer Saunders and the reply came from Gabriella Monk. I wrote a letter to the Secretary of State regarding a constituent called Mark Norris and I have received no response at all, despite the fact that my letter was sent last year. I have never received a letter from the Secretary of State for Work and Pensions in response to any of the letters I have sent to him.
Steve Webb
It is a good job I have the transcript of what the hon. Lady said, which was “when we write to the Department…we only ever get replies from the correspondence unit.” When the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Hemel Hempstead (Mike Penning), who has responsibility for disabled people, rose to intervene, she said “I will give way; I haven’t had any letters from this one either.” We waved a letter that she had received, so I hope she will withdraw that remark.
Moving on to the substance of reform, we talked about the record of the two Governments on reform. Let us take the case of child maintenance. I want to read out what was said about child maintenance reform by the National Audit Office, which was quoted by the hon. Member for Stretford and Urmston. It said:
“So far, the reforms had cost £539 million for a scheme that had performed no better than its predecessor”.
Unfortunately, that is not our reform; that is Labour’s reform in 2006. That is what happened when Labour reformed child maintenance. The NAO said the scheme was no better than the one that went before, despite costing half a billion pounds. That is why we have to replace it with a new scheme. The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) said that no doubt this one will go wrong. Actually, we have been running it quietly since 2012, phasing it in, learning the lessons from the other party and, as a result, the scheme is being highly effective. We already have record numbers of people being paid directly under the new scheme. Alongside major reform, we are getting more maintenance paid to more children than ever before. In other words, we are reforming, but not taking our eyes off the day job.
A number of Members mentioned the performance of Atos. As several of my hon. Friends pointed out, there is a bit of collective amnesia regarding who, in 2005, gave Atos a seven-year contract with a three-year option to renew. By last autumn, Labour was saying, “Let’s get rid of Atos; let’s sack it”, but that would have cost the taxpayer millions of pounds. Instead, we have terminated Atos’s contract in a managed way. My right hon. Friend the Minister with responsibility for disabled people has done that, as a result of which the taxpayer gets money and Atos begins to clear the backlog of the work that it has been doing.
As well as the changes that we are making to bring down the backlog on employment and support allowance—it has been said that it has come down significantly in the past couple of months—it is worth remembering that every one of the people in that backlog is getting benefit. It is sometimes made out that they are waiting for money, but they are currently receiving the assessment rate of ESA and incapacity benefit. Those figures relate to people who are getting benefit and are awaiting assessment.
Let me give the House some further examples of how we have been improving the service we deliver to the people who depend on our help. A year ago, the number of jobseeker’s allowance new claims dealt with in 10 days was 66%; now it is 90%. The number of ESA new claims dealt with in 10 days was 66%; now it is 80%. The number of appeals outstanding a year ago was 150,000; now it is 4,000. As my right hon. Friend the Secretary of State said, this is at a time when we are taking running costs out to make central Government more efficient.
A number of Members referred to the PIP. We are ensuring that the contractors, Atos and Capital, recruit more health care professionals to deal with the backlog. The number of appeals we are facing has fallen precipitously. It is an extraordinary fall in the number of people appealing against ESA decisions. Back in the first quarter of last year, we received 109,000 appeals against ESA decisions. In the first quarter of this year, it was 11,000. That is an 89% fall in the number of people claiming ESA who are appealing. The reason for that is that we, unlike Labour, are finding far more people eligible for benefit. Let me give the House the evidence for that claim. In late 2008, when Labour was undertaking work capability assessments, it was finding 64% of people fit for work. In the most recent quarter, we found not 64% but 27% fit for work. Far from it being this Government who are using the work capability assessment to throw sick people off benefit, it was the Labour party that used the WCA for that purpose.
During the debate, a number of Members said that we needed to make changes to the WCA, and that is what we have been doing as part of the Harrington review process. We have accepted about 50 recommendations. One reason why we are getting the number of people we are on to ESA and why we have a bigger proportion of people in the support group than ever before is that we have taken Labour’s failed WCA and reformed it to make it fairer. That is what a good Government does. We want to ensure that the right money goes to the right people.