Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Decisions and Appeals) (Amendment) Regulations 2026 (SI, 2026, No.457) Debate
Full Debate: Read Full DebateStephen Timms
Main Page: Stephen Timms (Labour - East Ham)Department Debates - View all Stephen Timms's debates with the Department for Work and Pensions
(1 month, 1 week ago)
General CommitteesI am delighted to serve under your chairmanship, Mrs Hobhouse. Thank you for permitting us to take our jackets off. I thank hon. Members who have spoken in the debate.
As we have heard—my hon. Friend the Member for Burnley made the point absolutely correctly—this statutory instrument amends regulations to enable the best use of the assessment resources that we have available. It will help us to repair the broken system that we inherited, which needs to be repaired, and provides a much-needed safeguard against potential future challenges, in order to protect payments to vulnerable people.
As mentioned by my hon. Friend, under the contracts with assessment providers that were negotiated by the last Government, we can call on only a finite volume of assessment capacity. We could, as the last Government did, use a large chunk of that capacity for frequent reassessments of PIP claimants whose circumstances most likely have not changed at all, or we can use that resource in a more productive way. That is what we have chosen to do.
We want to do two new things. First, we want to recommence, properly, reassessments for the work capability assessment, which provides a gateway to the health premium in universal credit. The situation we inherited is that work capability assessments are carried out when somebody makes a new application, and after a period that person is due a reassessment. The number of reassessments that it has been possible to carry out has been lamentably low. The hon. Member for South West Devon commended PIP reassessments—if only the Conservatives had carried out the work capability reassessments. We want to switch some of the assessment capacity that was being used ineffectively by the last Government, so that it will be used effectively in future.
The second thing we want to do, as my hon. Friend the Member for Burnley referred to, is to increase substantially the proportion of assessments that are carried out face to face. Almost all of them used to be face to face, then came the pandemic, and for reasons that we all understand, they switched to being phone-based or occasionally video-based assessments instead. But once the needs of the pandemic had passed, face-to-face assessments were never properly switched back on. Telephony was retained as the main channel, with just a small number of face-to-face assessments restarting in 2021. In our view, that is not good enough.
John Milne
As the Minister knows, I sit on the Work and Pensions Committee. About a year ago, we heard evidence that in fact there was little statistical difference between the approval rates for face-to-face interviews and for remote interviews. The figures may have been updated since, but that is the evidence we heard then. I am in favour of face-to-face interviews—they seem intuitively better—but there may not be quite the difference that everyone might reasonably expect; that is what the figures show.
There certainly has been data along those lines; I think it was data along those lines that made the previous Government think that they need not start face-to-face assessments again. I agree with the hon. Gentleman: to build confidence in the system, not least on the part of the people being assessed—I was speaking to somebody yesterday who said, “I wish that I’d had a face-to-face assessment”—and to make sure that the correct decisions are being made, we do need face-to-face assessments.
By the time of the general election, only about 7% of work capability assessments and PIP assessments were being carried out face to face. We want to do a great deal better than that. It was not just that the resources for face-to-face assessments were not provided in the assessment contracts, although that was certainly part of the issue; the other factor was that the previous Government walked away from large amounts of the assessment estate so there were no longer enough places where face-to-face assessments could be carried out. That is a pretty fundamental problem. The hon. Member for South West Devon spoke about la-la land, but frankly, that is where the Government who she supported left us.
We are therefore mounting a major rebuilding task to regain the capacity for face-to-face assessments that the last Government threw away, because our view is that these assessments should be done properly. We have started to rebuild the capacity that the previous Government threw away. We have increased the proportion of work capability assessments and PIP assessments carried out face to face, and we are on our way to achieving our target that at least 30% of both will be face to face. To achieve that, we need additional assessment resource; this measure is a key step in enabling us to obtain that.
Oliver Ryan
As the Minister is reading out his list of achievements, may I add to it? Does he think it is a good thing that we have put nearly £1 billion into support for the sick and disabled? That will partly come from savings from this and other measures, which we hope will save £1.9 billion by the end of the Parliament. As he says, the act of government is about making these difficult decisions and trade-offs in order to provide people with more support in the long run.
My hon. Friend is absolutely right. I have not yet got to that bit in my list, but I am coming to it—I am looking forward to that part of my speech.
The Conservative party is telling us that it would maintain its failed approach, with hardly any assessments being carried out face to face. That does at least have the benefit of consistency, I suppose, but we do not think it is good enough, and we will make the changes necessary to do far better. As my hon. Friend correctly highlighted, according to the Office for Budget Responsibility, this change that we have announced will reduce benefits spending by almost £2 billion—£1.9 billion—over five years.
We inherited an assessment system that was not equipped to do the job. The previous Government agreed contractual limits that meant at most 20% of assessments would be face to face. That was written into the contracts they signed, but there was not nearly enough capacity even to meet that level. We are having to fix a broken system, and we are making good progress, with the measure we are debating being an important step.
The purpose of this straightforward change is to provide the Secretary of State the power to extend personal independence payment awards in a limited set of circumstances, where it is deemed necessary to do so to safeguard the efficient administration of benefits. Before the amendment, a decision to extend an award of PIP required either a new claim for PIP, evidence of an error or mistake in the first decision, evidence that the claimant’s circumstances had changed, or the completion of a report by a healthcare professional appointed by the Secretary of State. In many cases, that would involve a claimant undergoing an assessment. Where such a decision could not be taken before an award expired, claimants would cease to be entitled to PIP until a further decision was completed. They would remain so until a further decision on entitlement could be made.
The amendment grants a specific discretion, making it possible to extend only the length of an award, and only where doing so is necessary for the administration of the benefit. As well as allowing the more efficient use of assessment resources, the discretion protects vulnerable claimants who would risk losing entitlement to PIP if, as in the pandemic, circumstances threatened to limit the state’s capacity to administer it. We are ensuring that the Department can lawfully maintain benefits payments to the most vulnerable people.
The new power will be used initially to increase the length of existing awards in line with the policy on award lengths for new awards, for which the Secretary of State already has the power. Existing claimants’ awards will be extended so that most first-time awards for those over 25 will be reviewed after three years, and most subsequent awards will be reviewed after five. Only awards deemed to be appropriate for those durations will be extended. The Committee may well be interested to know that the average annual increase in the PIP caseload has slowed under this Government: it fell from an increase of about 13% a year in 2019-20 to 2024-25, to a forecast average of about 7% a year over the subsequent five years.
The hon. Member for Horsham made a point about the Social Security Advisory Committee. I think he said that the committee had not looked at this; that is not correct—the committee has looked at it. It looks at all the regulatory changes that we propose, and it does a very good job. It plays an important role, and we welcome its scrutiny. As the hon. Gentleman said, the committee asked questions, and we were happy to set out the purpose of the regulations and the reasons for them. The committee accepted the information that we provided, and it chose to take the regulations on formal reference. I think the hon. Gentleman can be reassured about the committee’s view of this change.
I am grateful for the points that have been made and the opportunity for scrutiny that the debate has provided. The changes we are making enable the Department to make more efficient use of limited assessment capacity, to reduce assessments where they are not needed in order to focus on where they are needed, and to allow PIP awards to be extended in an emergency or crisis, as emerged during the pandemic, thereby protecting some vulnerable people from unnecessary hardship.
This is a measured amendment to ensure the effective administration of the benefits system. I hope that the hon. Member for South West Devon will not press the motion to a Division, but I fear she probably will—her party issued a press release before this Committee to say that Conservative Members would vote to annul the amendment, possibly before they realised what exactly was going on. If that is the case, I urge the Committee not to vote against the amendment.
Rebecca Smith
I assure the Minister that we did know what was going to happen. We will not change our minds on the position that has already been set out.
We believe that this instrument moves us in the wrong direction. I appreciate the points that were made by the Minister and, indeed, by the hon. Member for Horsham, who highlighted that there was apparently little difference between in-person and online reviews. That highlights that the issues that we have raised have not really been addressed—the Minister certainly has not.
The hon. Lady makes an important point. Will she clarify her party’s position? Does the Conservative party think that more than 7% of assessments ought to be carried out face to face, or is it not really bothered about whether they are carried out face to face or over the phone?
Rebecca Smith
Clearly, face to face is good, where possible. The 7% figure that you commented on was from the pandemic and from when you picked up. We know that we had a huge backlog to deal with—