State Pension Age

Simon Hoare Excerpts

Wednesday 2nd March 2016 Commons Chamber

[Mr Duncan Smith]

It is certainly within scope for that matter to be raised with the reviewer. He and his team have the power to review it. I recommend that the hon. Gentleman raises that concern. It is up to the reviewer to what degree he looks at it.

[Simon Hoare (North Dorset) (Con)]

Notwithstanding the antics of the Labour party, my right hon. Friend is absolutely right to underscore the national importance of this issue and I commend the approach that his Department has set out. Despite the depressing and dispiriting response from the Opposition parties, will he undertake to continue to try to build a national consensus and a consensus across the House on this issue, as it affects all our constituents and should be above party politics?

[Mr Duncan Smith]

I agree with my hon. Friend. My door is always open and I am always ready to see somebody, even if they then change their mind. I have found the tweet that the shadow Secretary of State sent this morning—strangely, not after he had seen the statement, but only after he had seen the newspapers. It states:

“Pensions Minister scraps retirement for all but the rich and those lucky enough to have a good private pension!!!”

How ridiculous is that? This is the announcement of a statutory review that his party agreed with in 2014. He really needs to apologise.

Welfare Reform and Work Bill

Simon Hoare Excerpts

Tuesday 23rd February 2016 Commons Chamber

I have discussed the effects of the measures in the Bill. I have provided evidence for my arguments, as there has been absolutely no impact assessment. We have had to find the evidence to identify the implications of the measures because, to their shame, the Government have done absolutely nothing. I remind the House that the Bill has been introduced on top of many other measures, including the Welfare Reform Act 2012, which imposes £23.8 billion-worth of cuts on 3.7 million disabled people. The independent living fund has been closed, and there is the threat of a further cut of £1.2 billion. Cuts in social care affect disabled people.

[Simon Hoare (North Dorset) (Con)]

rose—

[Debbie Abrahams]

I am sorry; I am not going to take any more interventions.

Further cuts are bound to be made as the hasty consultation on the personal independent payment earlier this year is pushed through. The Government have tried to regenerate the economy on the back of the poor and disabled. Work does not protect against poverty, and the poor and disabled have been made to pay the price. This is about cuts to our social security system.

[Simon Hoare]

Will the hon. Lady give way?

[Debbie Abrahams]

No, I will not.

Instead of denigrating claimants in our social security system, we should recognise the important role that the system plays. Like the NHS, the social security system is based on principles of inclusion, support and security for all, assuring dignity and the basics of life for all, should any one of us become ill or disabled, or fall on hard times. Many hon. Members in all parts of the House believe that the Bill is a step too far, and I urge them to support Lords amendments 1, 8 and 9.

Oral Answers to Questions

Simon Hoare Excerpts

Monday 1st February 2016 Commons Chamber

[The Minister for Employment (Priti Patel)]

No one will lose out as a result of the changes we are making to employment and support allowance. Importantly, that means that there will be no cash losers. I think it is worth my reflecting on the point that the Secretary of State made, which is that this Government are focused on supporting those on ESA in a way that the previous Labour Government did not when they introduced the work capability assessment. That is why we have kept the WCA under review. We will announce the publication of a White Paper in the spring that will look into further reforms.

[Simon Hoare (North Dorset) (Con)]

T4. As the chairman of the all-party parliamentary group on multiple sclerosis, may I ask the Minister to join me in applauding the excellent work of the Multiple Sclerosis Society in supporting people with MS? Will he tell us how his Department is supporting people with MS to get into work or to keep their jobs after a diagnosis of MS?

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

I join my hon. Friend in paying tribute to the fantastic work of the Multiple Sclerosis Society. Only two weeks ago, I was at the Swindon branch’s 50th anniversary. The society has a huge number of volunteers across the country who are making a difference. Its work toolkit stands out as an example of best practice, both for employers and employees, and I am keen for that to be highlighted and for that best practice to be shared among other organisations.

Housing Benefit and Supported Housing

Simon Hoare Excerpts

Wednesday 27th January 2016 Commons Chamber

[John Healey]

My hon. Friend characteristically puts in a couple of sentences the main point that I am making, and he does so extremely well.

[Simon Hoare (North Dorset) (Con)]

The right hon. Gentleman rightly says that we all have constituents in accommodation such as sheltered housing, and he knows that all Members, irrespective of their party, care about our constituents. Will he dissociate himself from the suggestion made by the hon. Member for Bermondsey and Old Southwark (Neil Coyle) that Conservative Members, in seeking to bring forward changes, do not care, because we do?

[John Healey]

It is down to the hon. Gentleman and his Front-Bench colleagues to demonstrate that case to those who are watching the debate, and especially to the people whose homes and lives are at risk.

As I said, every Member of the House has constituents who are threatened by the Chancellor’s crude housing benefit cut. In the Minister for Housing and Planning’s local authority area of Great Yarmouth, there are some 258 people in supported housing and at least 139 in sheltered housing. The numbers are even higher for Swindon and Tunbridge Wells. What do we say to these residents and their families? What do we say to the committed charities, churches, housing associations and other groups that provide such specialist housing and are so concerned?

--- Later in debate ---

[Simon Hoare (North Dorset) (Con)]

It is a pleasure to follow the hon. Member for Linlithgow and East Falkirk (Martyn Day).

I hope all Members agree that housing and homes are important. The security of a roof over one’s head—be it owned, or rented privately or socially—or of a place of succour and sanctuary, temporary or permanent, at a time of emergency, is important. For that reason, Labour’s position should be condemned. We have heard precisely what we are used to hearing from Labour. I have found this debate slightly annoying. I am annoyed not that the motion has been tabled—[Laughter.] If hon. Members would listen, they might hear a view that sheds some light on their prejudice. I am annoyed not that this important issue is being debated, but by the odour of smug hand wringing and crocodile tears from Labour Members.

Labour Members always purport to have a monopoly on caring. They believe that we are the nasty bunch—that we could not give a damn about anything. But we are not. As I said in an intervention on the shadow Minister, we all have constituents in sheltered housing and we all want to ensure the best provision for them. There is nothing kind or caring about trying to prop up an inflated and unsustainable welfare system.

[Dr Philippa Whitford]

Does the hon. Gentleman not agree that it is the ridiculous rents in many urban centres that are inflated? That is the private system. That is why housing benefit is out of control. It is not the social sector.

[Simon Hoare]

I am grateful to the hon. Lady for making the kernel of the argument for why a cap on housing benefit is important. The absence of a cap—of any control on housing benefit—has been the fuel to the fire of those who have sought to ramp up rents. A bottomless purse—a pit that always delivers the funding—provides the dynamic for higher rents. We believe that a cap will act as a brake on this runaway train.

Whenever a welfare reform is proposed, the default position of many Opposition Members is to say no. It is their eternal cry, the golden thread running through their political approach. As we have heard from my hon. Friends, Labour has not supported a single welfare reform. It has learned no lessons from last May’s general election.

[Marie Rimmer]

These schemes have demonstrated clear success in providing a better quality of life for residents and delivering better social care and health outcomes. Failure to provide these schemes in the future will put greater pressures on health and social care services, as housing providers will not be able to deliver good quality independent living places. That means people going back to residential settings, old folks’ homes, languishing in hospital beds—

--- Later in debate ---

[Madam Deputy Speaker (Natascha Engel)]

Order. The hon. Lady’s interventions are very long, and this is a time-limited debate.

[Simon Hoare]

The hon. Lady speaks with enormous passion, and I understand that. Of course, service providers want some certainty, and the pressing of the pause button announced by the Government today will be welcomed, but what has added precious little certainty to providers seeking to make short, medium and longer-term financial commitments has been Labour Members’ panic-stricken shroud waving. They have been trotting round the country desperately trying to stoke this up for party political advantage.

[Jess Phillips]

rose—

[Simon Hoare]

I can never resist the hon. Lady. The hon. Member for St Helens South and Whiston (Marie Rimmer) is passionate about this issue, but the hon. Lady exceeds her.

[Jess Phillips]

Will the hon. Gentleman recognise that it is not shroud waving? In this term and the last one, the Government exempted this group from every single one of their welfare reforms, having been forced to do so by alleged shroud waving. We are not saying no to the reform; we seek only an exemption for this group.

[Simon Hoare]

As the hon. Lady will have heard, as did we all, that was the point made by my hon. Friend the Minister when he referred to gathering the evidence, talking to experts and then producing a policy in due course. In all seriousness, I would hope that the hon. Lady could draw some comfort and satisfaction from that. She can put her shroud away, contain herself for a few moments and the debate can go on.

On the subject of service providers, I have spoken to all the housing associations covering my constituency. I hope I will not be misquoting them if I characterise their response as follows—things change; systems and procedures change from time to time. New policies usually present new challenges, but my housing associations are saying, “We will meet them. We will reform, change and recast what we do—but the central core of our ethos, and why we are in business, will remain intact.” I think that is an important point to make.

The right hon. Member for Wentworth and Dearne (John Healey), as shadow Minister—he is no longer in his place—had the absolute brass neck to accuse my right hon. Friend the Chancellor of putting politics before policy. If his speech did anything, it was precisely that. We heard the crocodile tears of, “We care for these people who need these sorts of homes.” We all recognise that, but it is shameful to drape the issue with the flag of party politics.

At the heart of what Her Majesty’s Government are doing is an attempt to provide fairness, equity and equality. In my judgment, it is absolutely right that social sector housing benefit should be capped to mirror that of the local authority level—the same rates as those in the private sector. The reforms seek to align those two sectors and, as I said to the hon. Member for Central Ayrshire (Dr Whitford), to prevent private social landlords from artificial rent inflation. On the Conservative side, we care about getting this right, about fairness for taxpayers and about quality provision of housing. What we do not care for is the shroud waving, the hand wringing and the crocodile tears of Labour Members.

--- Later in debate ---

[Yasmin Qureshi (Bolton South East) (Lab)]

I have listened to all the speeches that have been made by Conservative Members today, and have found myself wondering whether some of them are attending the right debate. If they consult the Order Paper, they will see that this debate is about supported housing. It is not about housing bills or taxation; it is about a very specific, vulnerable group of people.

We keep being told to wait and see what the proposals are. Would it not have been sensible for the Government to work out the costs of their proposals and establish the issues involved at the outset, and then conduct a review before making their announcement? If they had conducted the review properly, they might have established that the proposals were counter-productive in both economic and moral terms. If they had done their homework first, we might not be having this debate.

To suggest that mine are crocodile tears are very unfair. I rarely cry, but when I do, my tears are real. I assure the House that Labour Members care about people, and we care about people because it is what the Labour party was founded for. As for the suggestion made by some Conservative Members that social housing organisations have pots of money and spend millions of pounds on campaigning, that is absolute rubbish. I have been contacted by a number of housing associations and charities that look after vulnerable people in my constituency, and I assure Members that they do not have money to waste on campaigning. I have visited those places and I know what happens there.

Let me enlighten the House. At least three organisations in my constituency are doing valuable work. The main provider of social housing is Bolton at Home, whose representatives have contacted me—and I speak to them regularly in any event—to say that thousands of children will be made homeless, as well as hundreds of adults. Bolton at Home also provides supported housing, and it is important to remember what “supported housing” means. It means support for the vulnerable, the disabled, the elderly, those with mental health issues, and the young. The suggestion that turfing them out of their supported housing will enable the Government to economise and cut costs is absolute rubbish, because the state will then have to pick up an even bigger tab.

Another organisation in my constituency, St Vincent’s Housing Association, is a charity which runs a secure unit for about six adults. It relies on housing benefit to look after those people, who have mental health and drug problems. They are extremely vulnerable. If they are put on the streets, they will probably commit crimes and end up in the courts or in prison, and that will cost the state even more money.

Emmaus runs a “companions” system. It, too, looks after vulnerable people, using housing benefit to support them. I do not understand why the Government seem to think that their proposed cuts will save money. In fact, they are counter-productive.

[Simon Hoare]

In the words of the late Ronald Reagan, “There you go again.” The hon. Lady seems to be suggesting that she has a monopoly on understanding. Does she not accept that Conservative Members also talk to service providers in our constituencies, and also know what is going on?

[Yasmin Qureshi]

Sometimes I genuinely struggle with the question whether some Conservative Members either care or are bothered. If you were really concerned about disabled and vulnerable people, you would have spent your five-minute speech talking about them, rather than criticising Labour Members for raising this issue and accusing us of shedding crocodile tears. I do not know how many times you used that phrase.

Universal Credit Work Allowance

Simon Hoare Excerpts

Wednesday 6th January 2016 Commons Chamber

[Owen Smith]

I am extremely grateful, Mr Speaker.

[Simon Hoare (North Dorset) (Con)]

Will the hon. Gentleman give way?

[Owen Smith]

No.

Disabled workers will lose £2,000 a year, and as my hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) reminded the House, the worst affected group will be single mothers. A single mother working full time on the new, shiny national living wage will be £3,000 worse off. How have the Government justified that? They have made a series of attempts to defend it. The first was to refer to their manifesto and say, “We said we were going to deliver £12 billion of cuts from welfare, and here we go.” What they did not say at the election, as I recall, was that they would be stripping the money from working families. I do not recall them talking about nursery nurses, security guards or shop workers on the minimum wage as the sort of wage scroungers they now seek to vilify, yet those are the very people who will be scragged by the change.

--- Later in debate ---

[Justin Tomlinson]

I will now try to make some progress so that I can set that out.

The old approach of taking money from people’s wages and recycling it back to them in handouts was not transforming lives, it was trapping them. Why? It did not provide the right incentives or support for people to get on and realise their ambitions. Our central approach is therefore about ensuring people are better off in work and better off working more.

[Simon Hoare]

The Minister is being a little too charitable to the Opposition. I might be being a bit cynical, but did not their policy seek to create a hinterland constituency of people wedded to welfare and therefore reliant on the Labour party? The voters saw through that in May and they are not going back to that again.

[Justin Tomlinson]

There is no need for my hon. Friend to feel that he is being cynical, as the statistics make that very clear.

Through universal credit people can support their families and have the dignity and independence that comes with having a job. We have already made huge progress through our reforms. Employment is at a record high, up by more than 2 million since 2010. Unemployment is down by more than 750,000 since 2010. The claimant count rate is at its lowest level since 1975. The number of people claiming the main out-of-work benefits has fallen by 1 million since 2010. Wages are rising—for 13 months consecutively—higher than inflation. I know that the shadow Secretary of State started talking about the 1920s—an easy mistake to make, perhaps, forgetting about inflation. That is why living standards are up. Business confidence is underpinning all this progress, which the Opposition are—

Welfare Reform and Work Bill

Simon Hoare Excerpts

Monday 20th July 2015 Commons Chamber

[Stephen Timms]

I have no doubt that my right hon. Friend the Member for Birkenhead (Frank Field) will contribute to the debate, but I can tell the hon. Lady that he feels very strongly, as we all do, that this huge hit on 3 million working families—it will take more than £1,000 a year from them, with tax credit changes coming in next year—is a very bad thing to do. It will let down working families, and all Labour Members will fight hard against the iniquitous change being made by the hon. Lady and her colleagues.

Before the election, the Government promised to protect those with disabilities from welfare cuts, but that promise has been broken. As has already been discussed, Parkinson’s UK reckons that there are currently 8,000 people in the work-related activity group with progressive and incurable conditions such as Parkinson’s and multiple sclerosis. Macmillan, in opposing the provision, points out that

“thousands…will experience a significant drop in support at some point during their cancer journey.”

As my hon. Friend the Member for Easington (Grahame M. Morris) said in an intervention, that group includes people with learning disabilities and many with mental health problems.

The Bill reduces the level of support for new claimants by nearly £30 a week, from £101 to £73. That change introduces a new perverse incentive, because it increases the incentive for people with health problems to get into the support group by providing a higher payment, meaning that even more people will not get help to return to work.

The recent marked increase in the ESA case load, at a time when unemployment has come down, has been sharpest in the support group. Anyone in the support group will be seriously deterred from taking the risk of trying employment, for fear that it will result in their receiving a much lower level of support if they are then reallocated to the work-related activity group. I say to the Secretary of State that a particular worry is that young people with mental health problems, who ought to be getting help to return to work, are being abandoned in the support group at the moment. We therefore want the ESA measures removed from the Bill.

[Simon Hoare (North Dorset) (Con)]

These serious issues are arousing passions on both sides of the House. I am slightly concerned that none of the right hon. Gentleman’s colleagues who are candidates for the leadership has decided to put their name either to the amendment tabled by the hon. Member for Bishop Auckland (Helen Goodman) or to the Opposition’s reasoned amendment. Are they not prepared to give us their views?

[Stephen Timms]

I am glad to be able to reassure the hon. Gentleman that he will be pleased with what happens when the House divides at 10 o’clock tonight.

The Bill seeks to restrict support provided through tax credits and universal credit to families with more than two children. We will aim to amend the Bill in Committee, for example to protect families with multiple births or those whose claim arises because of exceptional circumstances. We do not support locking in a cash freeze for four years for tax credits and benefits. We recognise that reducing the deficit will require savings on indexation, but those decisions should be made annually so that actual inflation can be taken into account. We do not support the accompanying sharp reductions in income thresholds for tax credits and the corresponding cuts to work allowances announced in the Budget, which will be legislated for outside this Bill. They will be a huge setback to work incentives. The whole point of universal credit was supposed to be to improve work incentives; now it is being hobbled even before it has properly got started.

We want progress towards full employment. We want demanding targets for apprenticeships and help for troubled families. We want a household benefit cap, and to make sure that families are always better off in work. We want support for mortgage interest and reductions in social rents that will deliver savings to the taxpayer. We want better economic opportunities, and we want social security to be fairer and more affordable.

However, children who are growing up in poverty—as we have heard, the growing majority of them are in working households—need a Government committed to improving their position. People who because of illness and disability are found by the Government’s own tests to be not fit to work, as can happen to anybody, need social security to assure them of a decent basic standard of living. Families who are doing the right thing and going out to work, often when they are already struggling with low or stagnant wages and increasing insecurity and uncertainty about their future, need a Government who are on their side, not one who will pull the rug out from under them, as the tax credits announcements in the Budget will do.

These are not just matters of morality and social justice, although they most certainly are; this is also about how we secure our future prosperity and stability, ensuring that everybody in Britain can play their part, make the most of their talents and make the most of the ambitions of all.

--- Later in debate ---

[Hannah Bardell]

I believe we must have benefits that are suited to the situation, and the Conservative proposals will not do that.

[Simon Hoare]

Will the hon. Lady give way?

[Hannah Bardell]

I will not; I will make some progress.

I am one of those children from a single parent family. My own mother worked all the hours in the day to provide for my brother and I, at a time when single parents were demonised by the Thatcher Government.

--- Later in debate ---

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

There are many measures in this Bill, but I shall discuss just one or two aspects of it.

I am the vice-chairman of the all-party group on youth employment and I am delighted that under the chairmanship of the hon. Member for Norwich North (Chloe Smith) its name has been changed from “youth unemployment” to “youth employment”, showing a more positive outlook. Likewise, this Bill is called the Welfare Reform and Work Bill, which also shows a welcome direction of travel.

Clause 1 has the welcome ambition of reaching full employment and a reporting obligation to ensure that we here in Parliament are regularly updated on progress. Over the past two and a half years I have had the pleasure to run a jobs club in my constituency, from the Pilot pub in Canford Heath, and I pay tribute to its landlady, Lisa Ballet, for being so community spirited and permitting that jobs club to exist.

The claimant count in Mid Dorset and North Poole is down to 312. Of course I do not claim credit for that entirely, but I do welcome the ambition to lower the claimant count in my constituency. Although I would ordinarily guard against targets and a target culture, if this is simply an ambition, then I welcome it, and I look forward to the numbers in work in my constituency increasing over the coming Parliament.

[Simon Hoare]

Does my Dorset constituency neighbour agree that we have to view alongside the tax allowances measures the increase in the minimum wage with the aspiration of going to the living wage? For areas such as those in Dorset that we represent where median or average wages are quite low, those are real incentives to get back into work.

[Michael Tomlinson]

I agree with my hon. Friend and constituency neighbour.

Clause 3 sets out the reporting obligations for the troubled families programme and I pay tribute to that programme in Dorset, which is aimed at the hardest-to-reach families. There are potential long-term cost benefits because these are the families that cost the country the most, but more importantly these are the families that are most likely to benefit from this measure, and I welcome it.

Opposition Members have from the outset expressed concerns about scrapping the current child poverty measure, and they have done so again this evening. However, scrapping that measure is not the same as scrapping the route out of poverty; it is quite the opposite in fact, as that child poverty measure was flawed and did not provide a proper test of whether children’s lives were improving. For example, in the aftermath of the recent recession the number of children in poverty went down significantly under the old measure; in one year it fell by 300,000. Does that mean that those children’s lives were really altered in such a way as a result of the recession? Of course not; a shrinking economy is not the way to raise children out of poverty.

A second example, which was mentioned by my hon. Friend the Member for Hertsmere (Oliver Dowden), is the arbitrary line introduced by the last Labour Government. Does tipping a family that falls just below an arbitrary line up above it really mean poverty has been alleviated? Of course not.

I encourage Opposition Members to support this Bill, as it is aimed at the real causes of poverty. It addresses family breakdown, school attendance and attainment and levels of work within the family. It focuses on ways to make a real improvement to children’s lives rather than offering illusory measures.

As I have said, the most vulnerable must be protected. There must be a safety net but, by removing disincentives to work, introducing a living wage and reducing the benefits cap, this Bill will encourage more people away from a life on benefits and towards the real benefits of getting into work—better health, greater wellbeing and the self-esteem that comes from being in work. Work really is the best way out of poverty.

--- Later in debate ---

[Simon Hoare (North Dorset) (Con)]

When viewed alongside the recent Budget, this important Bill shows a clear determination among Conservative Members and the Government to recalibrate Britain and our society in a way that is to be welcomed for the reasons that many of my right hon. and hon. Friends have given.

I support the Bill wholeheartedly, but many Members will be looking for further detail and clarity as it progresses. In particular, I draw Ministers’ attention to carers and the need to ensure that local authorities have enough money to deliver the troubled families programme, which I welcome. Additional thinking also needs to be given to the condition regarding a woman having to prove rape. That is an enormously sensitive issue on which further work and clarity are needed.

Government Members have sat and listened to this debate in amazement. In the speeches of Opposition Members, Ministers have resembled the four horsemen of the apocalypse, riding through the town, with the firstborn having to be sold and vital organs having to be cut out to pay the bills. It has been a debate riven by ideology; not the ideology of the Government, who have approached the Bill as a pragmatic and one nation Government, but the ideology of the left—both the separatists and the Labour party—which believes that welfare is and should be a lifestyle choice. I do not know which planet some Opposition Members are living on if they do not believe that certain people in society have made a choice. Under the system that has been allowed to emerge under Governments of both colours, welfare has ceased to be a safety net and has become a way of life. Let us return to the welfare system that Beveridge envisaged: a helping hand up, and a safety net below which no fellow citizen should fall.

Some may want to wade through vomit, like the hon. Member for Hayes and Harlington (John McDonnell), but I suggest that the hon. Gentleman is wading through the primeval swamp, for the Labour party is clearly in disarray. No Labour leadership contender was prepared to put his or her name to either the Opposition or the rebel reasoned amendment.

I listened with great attention to the Scottish nationalists this afternoon, because, according to the press, they can no longer say their Rs. Well, they could certainly say their Rs today, but I am afraid that, when it comes to welfare reform and economic management, they do not know their Rs from their elbow.

The Bill will reward work, incentivise our fellow citizens, and, most importantly, deliver fairness to hard-working families and the taxpayers who have to pay the bill. My right hon. Friend the Secretary of State has worked hard on this Bill, and it deserves the full support of the House.

Scotland Bill

Simon Hoare Excerpts

Tuesday 30th June 2015 Commons Chamber

[Ian Murray]

That might be the experience in the hon. Gentleman’s constituency surgeries on a Friday and Saturday, but it is not the reality for my constituents. Many disabled people, and all the disability and voluntary sector organisations that have contributed to these parts of the Bill, have said something completely contrary to what he has just said. That might be the experience in his own backyard, but it is certainly not what I see in my constituency. The Scottish Council for Voluntary Organisations, the Child Poverty Action Group, Shelter Scotland, Enable and many other disability charities have all said that the situation is completely contrary to the one he is describing. I do not think that having the lowest level of house building since the 1920s is anything to be proud of. We should be doing something about that, across the House.

[Simon Hoare (North Dorset) (Con)]

The hon. Gentleman’s preamble was slightly depressing, because it failed to wake up to a fact that I thought Labour Front Benchers had woken up to—namely, that all his party’s intentions and warm words about welfare would come to nothing if they were not underpinned by a strong economy.

[Ian Murray]

I do not think that the hon. Gentleman was listening to my preamble, as he puts it, because I was talking about the underlying problems in the welfare system. They include: a lack of affordable social housing, which pushes people into the more expensive private rented sector, which pushes up the housing benefit bill; a lack of higher pay, which pushes up the benefit bill; and a lack of skills and opportunities to progress in the workplace and increase productivity, which also pushes up the welfare bill. Indeed, in Business, Innovation and Skills questions this morning, the Business Secretary said that the UK had a problem with productivity and that it had to be resolved. If we could resolve those three underlying problems in the welfare system, we might be in with a fighting chance of making life better for people in this country and of bringing the welfare bill down.

--- Later in debate ---

In Scotland, two thirds of the people in receipt of tax credits are in work, while most of the children living in poverty in Scotland have in-work parents, so our biggest challenge is tackling low pay. The powers in the Bill, without the veto, would enable us to tackle these long-term problems that hold back our economic growth and the development of our economy.

[Simon Hoare]

I am paying close attention to the hon. Lady’s remarks. If, as the previous Government did, we start to rein back tax credits, which were effectively a sop to employers allowing them to pay lower wages and thereby depressed the wage market, employers would be forced in the court of public opinion to pay more. In that way, could we not solve the problem, but on the employers’ side of the argument rather than the taxpayers’?

[Dr Whiteford]

If the hon. Gentleman is proposing that we start paying people a living wage and ensuring that people can actually live on the minimum wage, I could not agree with him more. Fundamentally, until we have living wages, those in low and middle-income families will always live below the breadline and struggle to make ends meet.

Those 12 organisations posed a fundamental challenge. As we begin defining the shape of Scotland’s social security system, we need to understand how high the stakes are for people who have been struggling for years and seeing their incomes reduce in real terms.

Personal Independence Payment Applications

Simon Hoare Excerpts

Wednesday 17th June 2015 Westminster Hall

[Kate Green (Stretford and Urmston) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the hon. Member for Beverley and Holderness (Graham Stuart) on securing this important debate. I am pleased to congratulate the Minister, too, and welcome him to his new position.

As we have heard, this debate is important for many of our constituents who have applied for PIP and experienced long delays, anxiety and hardship. We heard about the recent case of Ms C and Mr W, where it was found that the delays were unlawful. It is regrettable that we have not yet had any expression of apology from the Government for those delays. I hope that the Minister will take this opportunity to offer that apology.

Many MPs know of cases in our constituencies where assessments and decisions have taken a long time. In my constituency, in at least one case the waiting time, end to end, was more than a year and the Department had to pay compensation. This afternoon we have all welcomed the improvements in the time taken for assessment and processing since the benefit was first introduced, including welcome improvements to speed up assessment for special terminal illness cases including cancer. We have also welcomed today’s figures from the Department that show further improvements; it is now 15 weeks, end to end, for new claims, and 11 weeks for reassessments. However, we must recognise that these have been achieved because of a significant increase in the number of healthcare professionals and fewer face-to-face assessments than had been envisaged. In fact, this represents a significant policy change by the Department. An early criticism of DLA by the coalition Government was that it lacked face-to-face assessments; those were to be one of the marks of a new approach under PIP.

We are pleased to see the improvements. However, as hon. Members have noted, Ministers now face a significant new challenge in embarking on the mass migration of the 1.5 million DLA cases to PIP, which is due to commence in October. The independent reviewer, Paul Gray, has said that this is the most challenging phase of the roll-out of the benefit. It is not just challenging for the Department and the assessment companies; it is causing uncertainty and anxiety among many DLA recipients. It is also causing uncertainty in respect of the public purse. The Office for Budget Responsibility, which has already revised spending forecasts upwards by £1 billion per annum between 2014 and 2015, said in the welfare trends report last week that structural changes to welfare benefits, such as migration from DLA to the new benefit, PIP, mean that any spending forecasts made are

“subject to even greater uncertainty”.

It is important, as we have heard, that this mass migration is not botched or rushed. That is the lesson from the earlier phases of the roll-out of this benefit, and from the roll-out of other benefits with intrinsic assessment processes, particularly the work capability assessment.

The Minister said on 15 June, in a written answer to my question 1541, that roll-out will be “commensurate with capacity” and

“on a post code basis”.

That still causes a great deal of anxiety to claimants: they are not sure where they fit in that postcode lottery. It is not clear what it means for the overall profile of public spending on the benefit, and it is unclear when the end date of the migration will be. Will the Minister assure us that there will be sufficient capacity, both in the Department and among the independent assessors, and say what extra cost is being incurred to ensure that that capacity is sufficient? During the migration, how many face-to-face assessments does the Minister expect there to be, or what proportion of assessments would be done face to face? How many home visits will there be? What use is the Department making of the opportunity to share information with other assessment processes, as Paul Gray suggested?

The hon. Member for The Cotswolds (Geoffrey Clifton-Brown) rightly highlighted appeals. It has been assumed that 40%—a very high level—will go to appeal. I hope the Minister assures us that not just the Department, but the Courts and Tribunals Service, can handle the appeals that are expected. Can he say how many people are expected to lose benefit or receive a lower payment than under the disability living allowance? We know from Motability that 40% have already lost the higher-rate mobility award and therefore their Motability vehicles. It would be interesting to hear what further forecast the Minister makes.

Most worrying, as my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) said, is the backdrop of £12 billion of welfare cuts—“Newsnight” suggested yesterday that it could be as much as £15 billion—and what they might mean for the roll-out of the personal independence payment. In the House of Lords on 10 June, Baroness Campbell of Surbiton pointed out that the Prime Minister said during the general election campaign that PIP would be enhanced and protected. In response, Lord Freud only confirmed that disabled people would be “supported”, which is not quite the same thing. As has been pointed out, in response to a question from my right hon. Friend the Member for East Ham (Stephen Timms) on 3 June in the House of Commons, the Prime Minister failed to rule out cuts to disability benefits. Indeed, he claimed that the Government had increased the benefits paid to disabled people by introducing PIP, which he said was more generous to the most disabled. That is a startling statement, given that there has been no change in the top rate of payments as regards PIP and DLA, that 40% have already lost the higher-rate mobility award and that the Government introduced the benefit with the intention of making a 20% budget cut.

[Simon Hoare (North Dorset) (Con)]

A little patience might be useful, might it not? We have heard in this debate about the very vulnerable people who rely on this payment. Rather than shroud-waving and trying to second-guess the Chancellor and what might be announced on 8 July, might it not be better not to further worry people who might already be worried?

[Kate Green]

What would give disabled people the most reassurance is if the Minister categorically said this afternoon that PIP will not be subject to the proposed £12 billion of cuts. Perhaps he will take that opportunity.

Finally, will the Minister say what progress has been made with the independent reviewer’s recommendations? Paul Gray highlighted a disjointed claimant journey, a lack of trust in the process and a lack of transparency. He also highlighted the nonsense of so-called interventions, which mean starting a new assessment process pretty much as soon as the last one has been decided. He proposed a series of actions to address some of those concerns. We have also heard about ongoing operational problems with venues, inaccessibility, long journeys and difficulties in rural areas. Sheffield citizens advice bureau in particular has highlighted problems in that regard. Inappropriate expertise or behaviour from assessors was mentioned in a recent report from Inclusion Scotland. As one Member said this afternoon, there have been delays when circumstances have changed in the middle of a claim. I am grateful for the chance to ask the Minister questions. This issue is the major challenge facing the Department when it comes to disability benefits, and the history is not entirely encouraging. We need to know that lessons are being learned, and we look forward to his response.