Welfare Reform Bill

Debate between Stephen Timms and David Nuttall

Wednesday 1st February 2012 Commons Chamber

[Stephen Timms]

The hon. Gentleman is absolutely right: 12 months is simply not long enough for a very large number of cancer patients—or other patients, in fact—to get back to work.

Lords amendment 18 was moved in the other place by Lord Patel, the Cross-Bench peer who was formerly president of the Royal College of Obstetricians and Gynaecologists. He quoted a man with renal cancer who had had a kidney removed and who started claiming ESA in March last year. His partner earns £160 per week, but if the Government win, that man will lose all his contributory benefit in April. He says:

“We have used up virtually all our savings already. I have worked all my life and paid into the system but this doesn't seem to mean anything”.

Is that really how the Government want their system to work? Of course, it is not just cancer patients who will be affected.

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

Does the shadow Minister agree that it is completely illogical to single out cancer as a separate disease when, in fact, there are many illnesses and conditions that may result in someone being unfit for work and when, under these provisions, they would be provided for by being put in the support group?

[Stephen Timms]

The hon. Gentleman is absolutely right—indeed, I am just going on to make that very point. It is not just cancer patients who will be affected; there are many other people in exactly the same position. That is why we have argued for a two-year limit instead of a one-year limit, because with a two-year limit there is a chance for people to get back into work. The National Aids Trust makes the point:

“Many people living with HIV who are found eligible will face significant barriers to work that cannot be overcome within 12 months.”

--- Later in debate ---

[Stephen Timms]

The Minister talks about people getting £1 million, but people who have £16,000 will get absolutely nothing. That is the system that he is putting in place, and I am not surprised that he is ashamed of it.

[Mr Nuttall]

As a matter of general principle, does the shadow Minister agree that there has to be a rule about the amount of capital that people hold? Should not a cut-off apply? It was the Labour Government’s rule: there has to be a cut-off.

[Stephen Timms]

We are being taken into a slightly broader argument, but I will answer the point directly. The capital limit has always been a feature of means-tested out-of-work benefits. It was never a feature of the tax credit system because the previous Government wanted to encourage people in work to save. That incentive to save is being destroyed by the application of this capital limit—exactly the same capital limit—in future to people in work as well as out of work. That is another terrible feature of this Bill.