Welfare Cap

Debate between Stephen Timms and Justin Tomlinson

Monday 12th December 2016 Commons Chamber

[Justin Tomlinson]

I thank the hon. Gentleman for making that very important point. Large employers, with their well-resourced HR and highly educated personnel teams, are very good at making such changes—they are often small changes—to take full advantage of the disabled people who are looking to work and have the great skills and abilities needed to fill the existing skills gaps. Small and medium-sized businesses often do not have the necessary confidence and skills, and may not even be aware of the talent that is available.

The small employer pilot is so important because it is about going around industrial parks, business parks and shops to ask, “Where are your skills gaps? We will match them to the people who are looking for work.” We have had some really encouraging results from the pilots. I had a Disability Confident event in my constituency, and the Shaw Trust managed to place a further 22 people. We got small and medium-sized employers who had never thought about doing this to come forward and say, “These are our skills gaps. Please help find people for us.”

[Stephen Timms (East Ham) (Lab)]

The hon. Gentleman rightly makes the point that the rate of employment among disabled people has risen, but the overall employment rate has risen as well, so the disability employment gap has not been reduced. Why has there not been any progress on that issue?

[Justin Tomlinson]

The right hon. Gentleman has been very diligent on this issue, and he is determined to be proactive in supporting disabled people to have such an opportunity. The reality is that the growing economy is benefiting everyone, but perversely, the last time we had a recession, the disability gap actually shrank because non-disabled people came out of work at a quicker rate than the disabled people. If we had a recession, we would not celebrate the closing of the gap if people were also coming out of work.

Greater minds than mine will now have to decide what way to go. For what it is worth, I think the only thing that matters is that, as quickly as possible, more disabled people should have an opportunity for work year on year. We should be looking at ways to do that. When we came to office, the then Prime Minister said that we wanted to halve the disability employment gap, which meant employing about 1 million more disabled people. We should be trying to get to that target as quickly as possible, by looking at it annually. Stakeholders and charities are keen that we can demonstrate on an annual basis that we are making real, tangible progress. So far, with 590,000 more disabled people in work in the past three years, progress has been good, but there is still much more that needs to be done.

The final area I want to mention is disability benefits. As a Government, we now spend £3 billion more a year, which is welcome. That recognises the fact that under the old system of disability living allowance, only 16.5% of claimants accessed the highest rate of benefit, while under PIP, the figure is about 22.5%, because the system recognises hidden impairments better, particularly mental health ones. It is right that we are getting support to the most vulnerable people in society as quickly as we can.

However, I have an ask. Everybody in Parliament recognises that we have a growing challenge with mental health conditions in this country. Whether in relation to people in work, people trying to get into work or people in their everyday lives, about one in four people will have a mental health condition at some point. I suspect whoever was in government would, like our Government, look to committing additional funding to support people with mental health conditions. One of the challenges is that no one has quite resolved the best way to direct and provide such support. There are lots of different pilots, but we have a real opportunity in that the one way in which we are identifying people with mental health conditions is through the PIP benefit. However, we do not do anything with that information: we do not signpost people who have gone through the system and been identified as having a mental health condition to the traditional support offered by the NHS, local charities, support groups and so on. I am not looking to get people off PIP.

Employment and Support Allowance and Universal Credit

Debate between Stephen Timms and Justin Tomlinson

Thursday 17th November 2016 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

It is a pleasure to speak in this debate, although I have a feeling of déjà vu, as I was talking about this subject only yesterday—no wonder “Groundhog Day” is one of my favourite films. I pay tribute to the hon. Member for Airdrie and Shotts (Neil Gray) for his proactive work in this area. When I was a Minister, I enjoyed engaging with him on a number of occasions. He always brought forward real experience and practical suggestions to challenge the Government and hold them to account in this important area. It is also good to see so many Members in the Chamber, on both sides of the House, to engage in this debate—it is a credit to them. That is important, because the Department has excellent Ministers who genuinely do listen, engage, act and influence the direction of policy.

I wish briefly to talk about the background to the current position. Yesterday I talked a lot about universal credit and less about the ESA WRAG, but today I will flip that around. The Government have introduced the national living wage, which has helped 2.75 million of our lowest earners, and we hope that it will rise to more than £9 an hour by 2020. We have increased the personal allowance from £6,495 to £11,000, taking the lowest 3.2 million earners out of paying any income tax. This country has the strongest economic growth of any developed economy, which is delivering record employment, with yesterday’s figures showing another 461,000 people entering work. We have also seen 590,000 more disabled people in work in the past three years—an increase of about 4%—although there is still much further to go.

[Stephen Timms]

I mentioned this yesterday, but let me remind the hon. Gentleman of the press release issued in his name by the Department for Work and Pensions on 29 June last year, which stated:

“The Government…aims to halve the gap between the disabled employment rate and the overall employment rate by 2020.”

Is he dismayed, as I am, that that commitment—he made the promise in good faith, I am sure—to a 2020 deadline has been abandoned by his successor?

[Justin Tomlinson]

I predicted that that intervention was coming, and it is an important point. The pledge was incredibly popular with stakeholders and focused officials’ minds. When I was a Minister, a lot of my work involved lobbying other Departments, so it was helpful when I was able to namecheck the then Prime Minister, as this was his personal pledge. I do not actually recall that press release, as my understanding was that we had not set the date because that was going to be determined in the Green Paper. Personally, I wanted to see significant progress year on year.

One problem with just adopting the approach in the pledge is that the number of disabled people in work could remain static yet in a recession the overall number of people in work could fall, meaning that the gap would close without any more disabled people benefiting. I wanted to set a target such as having 1 million more people in work by a certain date, which would mean that we would know that 1 million more disabled people had benefited. We were due to consult on that as part of the Green Paper process when I was in my ministerial role.

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[Justin Tomlinson]

When I was a Minister, I was challenged on a whole host of issues, and that is what the charities are there to do. I feel that the extra support makes this approach worthwhile because only 1% of people are coming off that benefit. When people on ESA are surveyed, and when we talk to them in our constituencies, we find that the overwhelming majority are desperate to be given an opportunity to work.

[Stephen Timms]

rose—

[Justin Tomlinson]

I am running out of time, so I will try to wrap up. I have only two minutes left.

The Green Paper includes proposals for more personalised and tailored support, as well as quicker assessments. That is particularly important because 50% of people on ESA have a mental health condition, but typically wait nine months for an assessment. The Green Paper will address that by making sure that people are assessed quickly and given support before they navigate often difficult personal challenges when they take the step back into work.

There will be a place on the work and health programme or Work Choice for those who wish to take it—it is a voluntary opportunity. There will be additional places on the very popular specialist employment support programme. There will be job clubs run by peers—people with disabilities who have gone through the system and overcome their fear at the thought of going back into the process. That is often a big fear for people who have been out of work for a long time. There will be 200 new community partners; again, this is about utilising disability expertise. There will be increased access to work for young people with mental health conditions. There are further opportunities through the Disability Confident campaign.

My personal favourite, which I continue to champion, is the small employer offer. Time and time again, employers say to us, “We have skills gaps and we are struggling to find people to fill these roles,” but they have never thought to take on somebody with a disability because they lack the confidence to do so and do not realise that a huge amount of support is provided to help people to come into the workplace. Businesses that take that step benefit, more often than not, and I say that as a former employer who employed disabled people and benefited from doing so. I hope that the current small employer pilot will be expanded and will become a nationwide offer. It is making a significant difference.

The Chancellor was right to increase significantly the funding for Access to Work. On the fit for work scheme, we need to ensure that we provide advice at the beginning of a potential problem for people in work, not just at four weeks, because it is so much easier to keep people in work with suitable support than it is to get them back into work after they have dropped out. We have a fantastic ministerial team who are engaging with charities, with all their experience and knowledge, and the Green Paper represents a real opportunity.

Universal Credit Work Allowance

Debate between Stephen Timms and Justin Tomlinson

Wednesday 6th January 2016 Commons Chamber

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

I join the shadow Secretary of State in wishing everybody a happy new year. I am sorry that I am not the person with whom he wished to have this exchange, but this is a real area of passion for me. My background, my school, my work and starting my own business mean that I understand opportunity, which all too often is not a given in society. The changes that have helped shape my journey into politics are integral to why we need to reform the welfare state. That is absolutely key.

[Stephen Timms (East Ham) (Lab)]

Given the background that the Minister has set out, he will well understand why it would have been a mistake to go ahead with the tax credit cuts that were U-turned before Christmas. Why then are the Government going ahead with precisely those cuts for people whose only mistake is to have the misfortune of receiving universal credit instead of tax credits?

[Justin Tomlinson]

That was a very early intervention and, to be fair, I need a little time to expand my argument, which will address those points. An element of patience is needed; I know that we all needed it last night with the late sitting and the reshuffle news. A key point about tax credits was that people argued that all the changes needed to be phased in, and I will set that out.

The welfare system we inherited was simply not working. It was not supporting people to get into work, to stay in work and to progress in work. People were left with unfulfilled potential, languishing on benefits, with little or no incentive to work or to progress in work, and opportunity was stifled. Opportunity should be a given; it should not be stifled.

The truth is that our welfare system had become distorted and complex, as we all know from our casework with residents. Too often, residents were missing out on the benefits they were entitled to because they could not navigate something so complex. All too often, the system firmly shut the door on opportunity, because it paid more to be on benefits than to be in work. We all know that, and the electorate—hard-working families—were quick to remind us of it.

Let me be clear that I say that with no disapproval for those who claim benefits. The system itself was to blame, which is why we undertook to reform it. Our aim was and continues to be to create a system that extends opportunity and ensures that work always pays, moving Britain from a low wage, high welfare, high tax society to a higher wage, lower welfare, lower tax society. It is a common-sense approach, creating a system that is fairer to the taxpayers who face an ever-increasing bill and delivering a welfare system that is sustainable for our country but that, crucially, protects the most vulnerable.

Let me remind the House that welfare spending on people in work rose from £6 billion in 1998 to almost £28 billion in 2010.

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[Stephen Timms]

The Minister said in response to my earlier intervention that there were to be transitional arrangements, but the trouble is that people receiving universal credit will get the full cut in April this year. They are going to be clobbered.

[Justin Tomlinson]

I gently remind the right hon. Gentleman that I shall be going into those details later, so he needs to have just a little more patience.

Crucially and uniquely, universal credit stays with claimants when they enter work until their earnings reach a certain level or until they can support themselves. That gives them the confidence to start a job without having to go through the bureaucracy of changing their benefit claim. Universal credit is not just about IT or streamlining bureaucracy, as it is often portrayed. It is about people having a single point of contact with a work coach who provides personalised support, advice and guidance. This is where universal credit comes into its own, and this is the bit that I am really passionate about.

In life, we are all confident individuals and when we are faced with challenges it is a given that we can normally take them on, but that is not the case for everybody. We are now giving people a named personal contact to help them to deal with their individual case when they are navigating complicated benefit systems. That work coach will be by their side helping them to develop their role when they first get their foot in the door. They will not simply say, “We wish you all the best now you’ve got a job”. They will help them to make progress and develop their role. They will help them to seek and secure more hours, and to develop the skills and confidence to progress through the grades. In other words, universal credit will not only support people to move into a job; it will also help them to build a career. It will break the cycle of dependency and create opportunities.

--- Later in debate ---

[Stephen Timms]

rose—

[Justin Tomlinson]

The hon. Member for Pontypridd has had his turn. I give way to the right hon. Gentleman.

[Stephen Timms]

I think we have now got to the appropriate point in the Minister’s speech. Does he acknowledge that the 50,000-plus working people who are today receiving universal credit will see their benefits sharply cut in April?

[Justin Tomlinson]

I will come on to those specific people—[Interruption.] In the overall numbers, it is the vast majority—[Interruption.] I am going to make some progress.

We have to see the bigger picture. A lot of the analysis that has gone on is static. Even the Institute for Fiscal Studies, which I know a lot of hon. Members will refer to, acknowledges that it is a static analysis. Universal credit is not a stand-alone measure. It is part of our wider, dynamic package of reforms to support families in work and to make sure work pays. We are raising the personal allowance to £11,000 for the next tax year, saving the typical taxpayer over £900 a year, and we have pledged to raise it to £12,500 by the end of this Parliament. The national living wage will come into effect from April. That will directly benefit 2.75 million people and it is forecast to reach over £9 an hour by 2020. That might upset Opposition Members who campaigned for £8 an hour, but we felt that that did not go far enough.

Draft Health and Safety at Work etc. act 1974 (General duties of self-employed persons) (Prescribed Undertakings) Regulations 2015

Debate between Stephen Timms and Justin Tomlinson

Tuesday 21st July 2015 General Committees

[Justin Tomlinson]

I thank the shadow Minister for his characteristically thoughtful and assured speech, in which he raised important points. I am delighted to hear about Barbara Castle’s involvement. She was my mother’s MP, so that bodes well.

The right hon. Gentleman is absolutely right to highlight the importance of the long-term fall in injuries. The driver for that is not the £4.7 million, but ensuring that the perception of health and safety exists so that the workplace is made safer and businesses engage. As a former self-employed person in a relatively small office, I know that things are a lot harder for a small business than for companies with big human resources departments that are skilled and well-trained in such areas.

On why the list is not more exhaustive, those occupations listed were the ones that were deemed to involve high risk, and that therefore were high profile, but the crucial catch-all proviso remains. It is vital that we encourage wider engagement, and I have already done a huge amount of work with the HSE board. If we look at all the statistics over recent years, there has been good progress in how much businesses are engaging and their seeing that it is beneficial to do so, but the change will clarify where there is no risk and no duty, thus helping to reduce the perception that health and safety law is inappropriately applied, which was turning businesses off from engaging and helping to maintain a safe workplace.

As I said, it is not the £4.7 million that, in the grand scheme of things, will make a huge difference, but 1.7 million self-employed people. The Government consider that the proposal will encourage an increase in self-employment and boost economic growth by removing negative perceptions about health and safety law in circumstances in which there is a low risk of harm, which we would all welcome.

The shadow Minister rightly highlighted the need to ensure that people are aware of the changes and guidelines. Once the changes have been agreed by Parliament, the Health and Safety Executive will implement an extensive communications plan to publicise them. Every effort will be made to ensure that self-employed workers are aware of the changes and that they can easily understand how those changes affect them. That is especially the case for those to whom the law will continue to apply. As I have said, in recent years there has been a complete transformation in the documents and communications provided by the HSE, which has been well received by the business community, but the self-employed will not be exempt from the Health and Safety at Work etc. Act 1974, only from section 3(2). Other sections will still apply even if someone is exempt from section 3(2), so this is not a complete wipe-away of any responsibility.

The right hon. Gentleman asked who is responsible if the wrong conclusion is reached. It is the duty of the self-employed person to understand that the law applies to them, and liability will not be based on a subjective understanding.

[Stephen Timms]

That is the point that troubles me most and I do not really understand that answer. The old position was that one was subject to the law, so the position was clear. Under the regulations, a person will be subject to the law if they pose a risk to someone else. I do not understand how somebody can make a sound assessment of whether, as a self-employed person, they pose a risk to somebody else.

[Justin Tomlinson]

Businesses have to make such decisions day after day. For example, they have to decide if they are subject to VAT conditions if they are in an industry in which certain products are VAT-able and others are not. A self-employed bookkeeper working at home who does not invite the public into their home would clearly be exempt according to the guidelines. If someone is coming into contact with the public and doing work that might pose a risk, they will be covered. That is why the guidelines will be produced, and self-employed people will make a judgment. It is estimated that approximately 1 million people will still be subject to health and safety law as they fall into those high-risk activities listed on the schedule.

Question put and agreed to.