Employment and Support Allowance: Underpayments

Debate between Stephen Timms and Sarah Newton

Monday 25th February 2019 Commons Chamber

[Sarah Newton]

My hon. Friend makes a good point. In not only the process for claiming new benefits but this particular exercise, a lot of effort is going into ensuring that we find people and engage with them to check whether they are eligible for these additional payments. That happens through letters, telephone calls and even home visits, to ensure that we contact people in the most appropriate way possible for them.

[Stephen Timms (East Ham) (Lab)]

What is the Minister’s current estimate for how long it is going to take to complete this exercise and to correct all these very serious mistakes?

[Sarah Newton]

We anticipate completing the exercise this year.

Disability Support

Debate between Stephen Timms and Sarah Newton

Wednesday 19th December 2018 Commons Chamber

[The Minister for Disabled People, Health and Work (Sarah Newton)]

I should like to add my voice to those congratulating the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) on securing such an important debate. It is to the great credit of the House that, after what have been an emotional, long and tiring few weeks here, Members from every country of Great Britain are here tonight to speak up so well and so passionately for their constituents. This is probably our last full debate before the Adjournment debate tomorrow, and it is right that we have focused on such an important issue as the disabled people in our country and the amazing contribution that they make.

Of course, we should rightly focus all our efforts on what more we can do for those who are vulnerable and need our support, and I am sure that all hon. Members will want to ensure that we are doing everything we can to live up to the ideals of the United Nations conventions, which we helped to design, and to those of the Disability Discrimination Act 1995, which a Conservative Prime Minister introduced in this House. There is also cross-party support for the Equality Act 2010, which underpins so much of what we are doing. These are important issues that should unite the House, and I am pleased to have heard a lot of constructive comments this evening. I have very little time, and I will not be able to answer all the questions that have been raised, but I will write to hon. Members if I have not been able to address their concerns. I want to focus on the motion, as it is so important.

I want to reassure hon. Members that the Government do publish distributional analysis of the cumulative impact of Government decisions on household finances at every fiscal event. The last publication was in October, to accompany the autumn Budget, and assessed the tax, welfare and public spending changes announced from the 2016 autumn statement onwards that carry a direct and quantifiable impact on households. Her Majesty’s Treasury uses its intragovernmental tax and benefits microsimulation model to produce that analysis, and the underlying data comes from the Office for National Statistics annual living costs and food survey.

Her Majesty’s Treasury uses the LCF survey, because it is the primary source of data about what income people have, how they spend their money and what public services they have accessed. The survey is unique in capturing all that information. Only by assessing the impact of Government policy on each of these areas can an accurate and fully comprehensive assessment of the total impact of all Government policies on welfare, taxes and spending on public services be made. Looking at only one aspect, such as changes to income from benefits, does not provide a complete picture and is misleading. For example, the Government have committed to increasing spending on the NHS by £20 billion, which will have a positive and direct impact on the lives of millions of disabled people. To look only at benefits would be really misleading.

The LCF survey came into existence in 2007, but a household food consumption and expenditure survey has been run by Government since the 1940s. The primary purpose of these surveys has always been to collect detailed expenditure data for a sample of people, which is then used to assess changes in people’s spending patterns in order to adjust the basket of goods used to estimate inflation. The survey does not collect information from the sample of individuals that would allow us to assess whether a person is disabled—it has never been able to do that. As with all Government surveys, taking part is voluntary and a difficult balance has to be struck between the amount of information we are asking respondents to provide, and therefore the time it takes to complete the survey, and the proportion of the sample who are willing to take part. The survey sample is designed to be representative of the population, and the more people who do not respond, the more the estimates from the survey potentially suffer in quality.

Therefore, the lack of information about disability means that the information does not exist for the Treasury to estimate the cumulative impact of all Government policies on disabled people. However, the Office for National Statistics is currently undertaking developments to its household surveys to integrate various surveys and to link various sources of administrative data held by the Government, which means it might be possible to have the required information on disability status in future. The ONS is consulting users, and I have instructed my officials to raise the issue of disability status in the living costs and food survey. I encourage stakeholders, and all Members who care about this as much as I do, to contact the ONS, which is independent, and raise the issue. If we had that information, and if the ONS proceeds in the way I have just described by linking datasets, it would be possible for us to undertake the sorts of assessments that people have articulated so well this evening.

However, although a cumulative impact assessment is not possible now, the DWP does undertake a wide range of other research and analysis to assess and monitor the impact of policies on disabled people. The DWP runs its own household survey—the family resources survey—which collects information from a sample of households, with detailed information on sources of income, the amount of income families receive and detailed information on the characteristics of the people in those households.

[Stephen Timms]

rose—

[Sarah Newton]

I have said that I will not take interventions, in order to answer all the questions, but I will write to any Members I am unable to answer in the time available.

The family resources survey collects the information required to make an assessment of the disability status of people in a household. The information is then used to provide estimates of the amount of income that families with disabled people have. The DWP publishes estimates of the numbers and percentages of people within households with disabled people who have low incomes in the annual “Households below average income” publication.

In the 2016-17 survey, we saw that 16% of people in families with a disabled person were described as in absolute low-income poverty before housing costs, with a weekly income after tax of £280 or less for a couple with no children, compared with 19% in 2009-10. Absolute low-income poverty, on a before housing costs basis, has actually improved by three percentage points since 2010 for families with a disabled person.

Looking at all four measures of low-income poverty—before and after housing costs, and on a relative and on an absolute basis—poverty for people in families with a disabled person has improved since 2010 on three of the four measures, and there was no change in the fourth. I am not complacent. One person living in poverty in this country is one person too many, which is why we are determined to do everything we can to put more money in people’s pockets.[Official Report, 5 February 2019, Vol. 654, c. 2MC.]

[Stephen Timms]

Will the Minister give way?

[Sarah Newton]

Let me make these points. I have been asked to address a lot of issues, and I really want to do that.

As well as the poverty figures, the Department for Work and Pensions publishes impact assessments for every new policy that carefully consider the potential impact of those policies on people with protected characteristics, in line with its legal obligations and its strong commitment to promoting fairness. The DWP has a continual and broad programme of research and evaluation of policies affecting disabled people, which is often contracted to independent research bodies, and all the findings are published. A recent example of such work is the research into the experience of PIP claimants, which was published in September and provided valuable insight into how PIP is working to inform policy development.

We have had some appalling misuse of statistics tonight. Of all the people who have applied for PIP, 9% have gone to appeal and 4% have been overturned. I work with a great number of colleagues in this House, with the Select Committees, with the all-party parliamentary groups, with disabled people and with those who represent disabled people. When we hear recommendations on how we can improve the process, we implement them. The Work and Pensions Committee did an extremely valuable piece of work on assessments for ESA and PIP, and we are delivering on implementing those recommendations.

The hon. Member for High Peak (Ruth George), who is a member of the Work and Pensions Committee, spoke about the video recording of PIP assessments. I am determined to see that happen, because it will restore a lot of confidence in the process. We spent the summer carefully speaking to people with disabilities and to those who undertake the assessments—let us not forget that they are fully qualified healthcare professionals—about video recording. Putting all that information together, we started live testing the video recording of PIP assessments only a few weeks ago. That work will be completed in the new year, and we will be able to report back to the Select Committee and to the House on our progress and on how we will roll it out.

We are also undertaking a huge, large-scale test—it is actually the largest randomised control trial of its kind in the western world—as well as research into the employment and support package, to look at all the things that work to enable people with disabilities who want to work to get into work. It was interesting to listen to the personal experiences of the hon. Member for Eastbourne (Stephen Lloyd), and there are many disabled people who want to work but face unacceptable barriers to work, although we have made a lot of progress.

The latest data from the ONS shows that 900,000 more people are in work over the last five years, which is a steady increase in the employment rate from 43% to 51%, but we are very ambitious and want to see that gap close completely so that employers can draw on all the talents of the nation. We have set ourselves the goal of having 1 million more disabled people in work, on which we are making good progress.

Not only are we helping those people who can work into work, but we are always looking at what more we can do to improve our main health and disability-related benefits. Let us be absolutely clear that we are spending record sums on those benefits—over £50 billion this year, which is much larger than our defence budget. The figure has grown by more than £5.4 billion since 2010, and it is forecast to rise in every single year of this Parliament. All those benefits that are about the additional costs of disability were not frozen and were not part of the benefits cap, and include payments for carers, so it is simply not true to say, as Members have this evening, that we have been reducing the amount of money that we spend on the social security system.

[Stephen Timms]

Professor Alston produced a punchy report, and it made some telling points. He referred to

“the dramatic decline in the fortunes of the least well off in this country.”

He added:

“The Government has remained determinedly in a state of denial.”

From what the Minister is saying, it seems she is confirming Professor Alston’s point. There has, has there not, been a dramatic decline in the fortunes of the least well-off?

[Sarah Newton]

I was very pleased when the hon. Member for Oldham East and Saddleworth opened this debate by saying that she is an evidence-based policymaker, because I am too. I spent time serving on the Science and Technology Committee, where I was instrumental in having social science brought into its purview, and I was on the board of the Parliamentary Office of Science and Technology. It is very important to me to make sure we use statistics, data and research accurately, and I am quoting from independent, impartial information.

As I said, one person in poverty is one too many, but let us not forget that we have had to deal with the legacy we were left by the previous Government of “There is no money”. We have had to make difficult choices about public expenditure, but we made sure that we increased the amount of money for people with disabilities and we increased money for the NHS. That extra money going into the NHS is directly benefiting people with health conditions and disability.

I have little time to wind up, but I want to mention that we have talked about other barriers that people face to fulfilling their aspiration to play a full part in our society, on which I completely agree. Employment is really important. All of us will be going back to our constituencies. We will do some Christmas shopping, go to carol services and enjoy a panto—we will be doing things with our families—but so many disabled people in our country will not be able to do that. We are absolutely determined through what we do with our sector champions and on our inter-ministerial working groups to make sure that every disabled person in our society can play their full part. We are removing those barriers. We are absolutely committed to living up to all the UN standards that we have signed up to, which are certain to make positive differences and changes.

Employment and Support Allowance Underpayments

Debate between Stephen Timms and Sarah Newton

Thursday 18th October 2018 Commons Chamber

[Sarah Newton]

My hon. Friend is a doughty champion for the most disadvantaged people in society, so I would expect no less a question from him. To reassure him, I visited the main centre in Oldham where we are contacting people who we feel may have been affected and then beginning to collect information, so that we can ensure that we pay them what they are owed. We are being very careful to ensure that we send letters, and in the letter there is information about a helpline that people can call.

We are very happy to speak to people’s carers. As my hon. Friend says, some people with severe disabilities may not be able to engage with us, and people with mental health conditions may be anxious and not want to engage with us. I was incredibly impressed by the care, compassion and professionalism of my colleagues in the Department for Work and Pensions in Oldham who are undertaking this very important exercise.

[Stephen Timms (East Ham) (Lab)]

The National Audit Office did not find the Department to be transparent when it was raising concerns about this; it found it to be defensive. Unfortunately, that has characterised the Department for a number of years around universal credit, as the NAO has pointed out in the past. With this much bigger transfer ahead, which the Minister mentioned, are there any proposals to change the culture of the Department and to be more open when problems of this kind are raised?

[Sarah Newton]

I am grateful for the right hon. Gentleman’s question, and I deeply respect the work that he has done throughout his time in Parliament to stand up for the most vulnerable people in our society. I can reassure him that we are learning a lot of lessons from what happened when we migrated people from incapacity benefit to ESA. I think he was in the House when the Labour party created the work capability assessment and ESA. We have been working very hard to improve that benefit and to ensure that we learn lessons.

These problems arose because of the way that the migration was handled, and I am determined to ensure that when we go forward into UC, claimants are involved, to ensure that they are not missing out on any of the benefits to which they are entitled. We are working very closely with disabled people, people with health conditions, charities, citizens advice bureaux and disability rights organisations to ensure that we get that process absolutely right.

PIP Back Payments

Debate between Stephen Timms and Sarah Newton

Tuesday 30th January 2018 Commons Chamber

[Sarah Newton]

I thank my hon. Friend for her question and for the invaluable work that she and other members of the Work and Pensions Committee do. I look forward to receiving the Committee’s recommendations and will give them careful consideration.

I want to reassure my hon. Friend and other hon. Members that I believe in continuous improvement. I am very grateful for the constructive working relationship that I have with many disability rights organisations and charities that support disabled people, and for the time they give to my PIP stakeholder group. We are about to set up panels of claimants of both employment and support allowance and PIP so that we further engage with claimants themselves. Of course, we undertake proper independent customer satisfaction surveys to ensure that we take every opportunity to improve the claimant experience.

[Stephen Timms (East Ham) (Lab)]

The Minister has told the House that all 1.6 million existing claimants will have their cases reviewed. I am grateful to her for adding that those who had zero points, and therefore did not get PIP, will also be included in the review. Will she confirm that the 180,000 people who used to be on disability living allowance and are no longer receiving benefit will be included? In total, on top of the 1.6 million, how many cases does she expect to review?

[Sarah Newton]

As all Members will know, people have been going through a managed process of transferring from disability living allowance to PIP. We will be looking at people who have gone through the PIP assessment process. Just over half of people on disability living allowance have gone through the managed process to PIP. There are still people on DLA who are yet to go through the process, but we are taking on board all the findings of the appeal and improving the process to ensure that we make the right decision the first time. That is really important to us and to claimants.

Acid Attacks

Debate between Stephen Timms and Sarah Newton

Monday 17th July 2017 Commons Chamber

[Sarah Newton]

As I say, this is a wide-ranging review. We are definitely looking at the Poisons Act 1972, and I will make sure the hon. Lady’s point is taken into careful consideration. We are looking at the Crown Prosecution Service’s guidance to prosecutors, to ensure that acid and other corrosive substances can be classed as dangerous weapons. In addition, we will look again at the Poisons Act and whether more can be done to cover these harmful substances.

We will make sure that those who commit these terrible crimes feel the full force of the law. We will seek to ensure that everyone working in the criminal justice system, from police officers to prosecutors, has the powers they need severely to punish those who commit these appalling crimes. As the Home Secretary has said, life sentences must not be reserved for acid attack survivors. Further work will also take place with retailers, including online, to agree measures to restrict sales of acid and other corrosive substances. Victim support needs to be at the very heart of our response. We need to make sure that victims get the support they need, now and in the years ahead.

We are working on this with great urgency. We are about to go into recess, but I want to reassure the right hon. Member for East Ham that when Parliament gets back in September I will make sure that I update colleagues who are interested and seek an opportunity to update the House on the considerable progress that we expect to be able to make over the summer.

[Stephen Timms]

rose—

--- Later in debate ---

[Sarah Newton]

I have probably got a few seconds left, so I want to reassure the right hon. Gentleman—[Interruption.] I have obviously misjudged the amount of time I have, so I am happy to give way.

[Stephen Timms]

I am grateful to the Minister, and I look forward to the update in September, as, I am sure, do other Members. Is she able to tell us when she expects the review announced by the Home Secretary to conclude? When does she expect the final outcomes to be announced?

[Sarah Newton]

As I have said, we have already started work. We put a fair amount of it in motion last year during the build-up to last week’s meeting. I cannot commit myself tonight to a particular time by which we will complete the work. As I think everyone will understand, it is so wide ranging that, while some elements will be relatively easy to bring to fruition, others will require a longer period. Some may require changes in legislation, in which case we will seek the earliest possible legislative opportunity. I can absolutely commit myself, however, to the seriousness with which we are taking this issue, and to the urgency, the vigour, and the resources that we are bringing to bear in the Home Office to co-ordinate a whole-system response. We are working with partners both outside and inside Parliament. Different agencies need to come together.

These are horrendous crimes, and I am very much aware of the fear that is spreading, not only in London but in other parts of the country. There is simply no place in 21st-century Britain for such hate-filled, utterly devastating attacks, and we will do absolutely everything we can to prevent them.

Question put and agreed to.

Welfare Benefits Up-rating Bill

Debate between Stephen Timms and Sarah Newton

Monday 21st January 2013 Commons Chamber

[Stephen Timms]

Absolutely. That is what they have done in previous Budgets and autumn statements; in this one there was silence. I agree with my hon. Friend that the Government should absolutely return to the practice they adopted after the election.

Like the Minister in the 1980s, anybody who cares about poverty and who is looking at what is set to happen to the most vulnerable in the next few years, will be appalled. Child poverty will be growing remorselessly once again—back to the policies of the 1980s and back to their consequences, too. There is enormous public concern about the effects of clause 1 and the Bill as a whole. My hon. Friend the Member for Ayr, Carrick and Cumnock (Sandra Osborne) referred to the coalition of organisations in Scotland who have written about their concern. The Child Poverty Action Group has said:

“The Bill is a cause of great concern.”

Barnardo’s has stated:

“This policy will punish children the most by trapping them in poverty and impacting on their lives, leading to poor health, poor qualifications and unemployment.”

Citizens Advice said:

“It is imperative, particularly whilst increases to earnings from work are restricted, that support for low earners received through the welfare system is not disconnected from inflationary measures to the cost of living.”

The Children’s Society said:

“Groups which are meant to be protected (such as households with somebody with a disability) are more likely to be affected than households without protection.”

In an open letter this morning, the chief executives of Catholic charities in Liverpool, Manchester and London warned of the threat the Bill

“poses to the fundamental well-being of disabled, unemployed and low paid people, as well as their families who are already buckling under the weight of recent changes to the welfare system.”

[Sarah Newton (Truro and Falmouth) (Con)]

I ask the right hon. Gentleman to look at the facts, rather than scaremongering. The fact is that the child element of tax credit has gone up by 16% under this Government—£470. He really should look at the facts.

[Stephen Timms]

I simply ask the hon. Lady to look at all the other things the Government have done and at the Institute for Fiscal Studies assessment of the consequences for child poverty. As I have said, its assessment is that the number of children living below the poverty line will increase by 400,000 by 2015 and by 800,000 by 2020 and that there will be an additional rise of 200,000 as a direct result of the Bill.

The general secretary of USDAW, the shop workers’ union, has spoken of

“a kick in the teeth for working people that will fill many households with despair.”

Disability Rights UK has said:

“We are fearful that the Welfare Benefits UP-rating Bill will… impoverish thousands more disabled people.”

Homeless Link has said that

“the proposals contained in the Bill are grossly unfair, hitting the poorest in society the hardest.”

Pensions and Social Security

Debate between Stephen Timms and Sarah Newton

Thursday 23rd February 2012 Commons Chamber

[Stephen Timms]

The point I am making is that if the RPI method were in place for the coming year, the increase would be larger than the one in the order before us today.

[Sarah Newton (Truro and Falmouth) (Con)]

I acknowledge the right hon. Gentleman’s deep knowledge of this subject, but he is not giving the House an entirely accurate picture. For the longest period, the state pension was linked to average earnings, but it suits his argument today to make a comparison with RPI. The huge benefit of the triple lock is that it provides a choice. Average earnings could be taken into account, for example, and if they grew between 6% and 7%, so would pensions. Also, there is always the floor of 2.5%, which would prevent a repeat of the disgrace of giving pensioners 75p, as happened under the last Government.

[Stephen Timms]

I thank the hon. Lady for her generous remark. There is some merit in having an earnings underpin to the system, but I say again that, for the year ahead, RPI would give a higher increase than the triple lock has delivered. That was the case last year as well, which is why the Government set the triple lock aside in the first year it was supposed to be in place. This year, the difference is much smaller, at 0.4%, and the Government must be hoping that people will not notice that the triple lock is delivering less than an RPI uprating would have done. However, in principle, having an earnings underpin as well is entirely helpful.

[Sarah Newton]

But does the right hon. Gentleman not see the benefit for pensioners and the wider economy of the certainty provided by the triple lock? People can now plan for their retirement, and the Exchequer can plan for the economy.

[Stephen Timms]

It is not clear what the degree of certainty is. As I have said, the triple lock was overridden last year because it would have given such a low rate of uprating. This year, it has been applied because there is not much difference between RPI and the triple lock. So no, I do not think that any kind of rock-solid certainty has been introduced; the triple lock was waived the first time it was supposed to be put in place.