Social Security

Lord Elliott of Ballinamallard Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Nigel Dodds (Belfast North) (DUP)]

I shall contribute briefly to the debate. I welcome what the hon. Member for South Down (Ms Ritchie) said about wanting to move Northern Ireland forward, building the economy and creating peace and stability in Northern Ireland. We have common cause in that. That is precisely why we believe that the fresh start agreement, including this welfare element, is so important. Without it, Northern Ireland would have gone backwards. We would, in effect, have gone back to direct rule. It would have taken many years once again to get devolution up and running, with all that would result from that.

There is no point adopting the self-indulgent, luxurious position of wishing that circumstances were different. That is the fact of the matter. We had to address a very difficult situation. The rule of parity was implemented by Ministers when I first because Social Development Minister back in 1999. I remember that the first thing we discussed with the civil servants was the issue of parity. Revisiting this point, it is interesting to note that it is cited specifically in the Belfast agreement, which the SDLP was instrumental in agreeing. That principle is enshrined in section 87 of the Northern Ireland Act 1998. Parity is important. Without maintaining parity, the Northern Ireland Executive can make changes. The Northern Ireland Assembly can depart from legislation and provisions passed here, but on the principle that any additional costs would fall to be met by the Northern Ireland Executive out of the block grant. To close our eyes to that reality and pretend that things are otherwise and wish them so is simply not sensible, rational politics.

We faced up to the issue. As my hon. Friend the Member for East Antrim (Sammy Wilson) eloquently set out, we voted against but we also clearly supported some elements because we believed that they were best for the Government’s welfare agenda. We opposed others and then made a strong effort in the Assembly and in direct negotiation. I pay tribute to Nelson McCausland, the previous Department for Social Development Minister, for getting mitigations, which the Government accepted. We then put those forward in the Assembly. The Bill was first introduced in October 2012 and reached its final stage in May 2015. It still did not get through because of SDLP, Sinn Fein and Green party opposition.

The process is not undemocratic; remember that the Northern Ireland Assembly passed a legislative consent motion on 18 November by 70 votes to 22. The principle of devolution has been observed and the integrity of the Northern Ireland Assembly’s right to legislate has been specifically preserved. The Assembly has given its consent through that motion.

Finally, I want to put on the record the improvements and additions that Northern Ireland now has compared with elsewhere. There are the top-ups, which amount to many hundreds of millions of pounds, and the exclusion of the so-called bedroom tax. As has been outlined, we have seen the end of fines. I will not go into the figures, but those fines were having a detrimental effect on ordinary people and services in Northern Ireland and we have put a stop to them. Given their previous attitude, if the SDLP and Sinn Fein had had their way, they would continue.

We are also getting £25 million of new ring-fenced funding per year for five years to address welfare error and fraud in Northern Ireland. The UK Government have agreed that half of any savings generated in the next five years can be reinvested by the Northern Ireland Executive. Those are just some of the improvements on the welfare side as well as all the other advantages from the fresh start agreement, building on the Stormont House agreement.

We would prefer the legislation to have gone through the Assembly—of course we would. However, we faced up to the reality: if we had gone on the way we were, we would have ended up making suffer those we most wanted to protect.

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

I am not arguing against the legislation by any means, but I seek clarification. The top-ups available under the disability living allowance and the personal independence payment through the Stormont House agreement are not available under these proposals—instead, they are down to the three-person panel. This is just a matter of clarity. Obviously, Sinn Fein has a different perspective from that of Stormont House.

[Mr Dodds]

As I understand it, the Executive are establishing a small working group under the leadership of Professor Eileen Evason to bring forward proposals within the financial envelope set out by the Executive, including administrative costs, to maximise the use of additional resources. The issue will be for the Executive to determine following Professor Evason’s recommendations.

I thank the Government for the expeditious way in which they have brought this matter through the House of Commons at the request of the Northern Ireland Assembly. This is a good day for Northern Ireland, and I certainly support this legislation.

--- Later in debate ---

[Tom Elliott]

As I understand it, last December’s Stormont House proposals were accepted by the SDLP as well as Sinn Féin. Is the hon. Gentleman now saying that this is a worse deal or a better deal than the Stormont House proposal?

[Mark Durkan]

I will answer the right hon. Gentleman’s question: I think it is a worse deal. We not only have this order to transpose the 2012 Act—all the parties in Northern Ireland said they had difficulties with that legislation—but the way in which this is being taken forward means that the Government in Whitehall now have the power, by order, to transpose the Welfare Reform and Work Bill currently going through Parliament. That needs to be understood, because the legislative consent motion passed by the Assembly endorsed all the welfare clauses of the current Bill, as originally tabled. DUP MLAs voted to endorse all the clauses, even though they had voted for amendments to delete some of them or to insert additional clauses. Within a period of weeks, they voted with an entirely different attitude in relation to the Welfare Reform and Work Bill, hiding behind direct rule. I therefore think that the deal is worse.

We must remember that the order will not only have the immediate effect of transposing most of the 2012 Act as implemented in Great Britain, but also provides a power, simply by virtue of regulations, to change a lot of the terms and conditions of the benefits, and can almost disappear some categories of benefits in the 2012 Act. In essence, we are being signed up to that without so much as a provision stating that when this direct-rule power is exercised, there must still be a legislative consent motion in the Assembly. We have been treated to the fiction that while we have direct rule, we have not lost any devolution because all the powers still exist on paper in the Assembly. That means it will supposedly be entirely in order for MLAs to table motions in the Assembly to amend such areas or to come up with their own private Members’ Bills, so we will have the nonsense of parallel, competing legislative strands. That is the sort of fiction and nonsense to which we are being treated.

Let us be very clear that the problem does not relate to the political or legislative processes; the real problem is the potential impact on people whose benefits and living standards will be affected as a result. Let us remember that when the Welfare Reform and Work Bill goes through—it has now been endorsed by a legislative consent motion—it will change the limited work capability element of universal credit for new claimants from April 2017. It is quite clear that although the decision-making power, which the Secretary of State has under the enabling legislation that went through over a week ago, will end in 2016, the effect of the decisions made under that power will not die with the power. The changes in relation to the limited work capability element of universal credit for new claimants will come in, meaning a reduction in the value of current payments of almost £30 a week—from £102.15 to £73.10. That is why all the health charities and disability campaign groups are so opposed to clauses 13 and 14 of the Welfare Reform and Work Bill. Unfortunately, Northern Ireland is now sealed into that by virtue of the legislative consent motion and the measure previously passed by Parliament.

There will be a similar reduction in the amount paid to those in the employment and support allowance work-related activity group. We know from hon. Members representing constituencies in Great Britain that that is one of the notorious vexations. We have heard about just how the work-related activity group has been treated in practice, and about some of the bizarre interpretations, decisions and procedures that people have had to go through. We are now locked into a lot of that courtesy of both the legislative consent motion and this order. We do not have reason to be happy if we take seriously what our friends in all parties across the House are saying in raising their valid concerns. That also goes for some aspects of the sanctions. The time limit on the sanctions is different, courtesy of the efforts that we all made in relation to Stormont House.

I want to make it quite clear that we were signed up for Stormont House in December 2014, because the terms of the agreement stated that the proposals would be developed and brought to the Assembly. When the Bill was brought to the Assembly, however, nothing in it had changed. That is why we tabled a series of modest amendments, which would not have shattered the Stormont House agreement in any way, and which the British Government confirmed would not have stretched or undermined their understanding of what was operable under the agreement. But no, the DUP decided to veto the proposals and, on top of that, Sinn Féin decided to vote down the amendments even though the Tories had voted down similar amendments here in the original 2012 legislation. So those were the people who decided that we were not going to take Stormont House forward on an all-party basis, as had been agreed. I want to put this on record, because I do not think that enough people have understood what happened.

I will make one concession to the Government. A lot of the wriggle room that we had in the Stormont House agreement came about as a result not only of the top-up mitigations from the Executive’s own budget but of the understanding that the Department for Work and Pensions and the Treasury were going to allow the Social Security Agency in Northern Ireland a certain amount of leeway in the interpretation and operation of some of the measures. That is one reason why the big money that it was thought would be needed to make good some of Sinn Féin’s demands was not actually needed after all. The funds did not need to come out of the Executive’s budget because of that leeway being allowed.

However, some of us recognised that the arrangement was time-limited. We were worried that the effects of the welfare cap—which is not to be confused with the benefit cap—would, over time, squeeze and reduce that comfort. We said that we had to be honest about that. The SDLP was also very clear about saying at Stormont House that we had to be up front and public about the fact that, when the next wave of cuts came, we would not be in a position to say that they could be sustained out of the Executive’s budget and that we could not make a claim on the block grant to try to make good those claims. We said that we had to say that up front so that people understood it. Sinn Féin did not want to acknowledge that fact because it was still locked into the pretence that it could say it was protecting all existing claimants and all future claimants for ever more, amen. We never joined in that pretence, but no other party joined us in making that candid declaration that we could not constantly find more and more hard shoulder to run on.

That brings me to the points that were made earlier about the fines. We were asked whether we regretted the fines. We resented those fines, those penalties, those levies, those savings forgone. We have been told by the Secretary of State that they are not fines but savings forgone. I notice that the right hon. Lady did not contradict DUP Members when they were calling them fines; it is only me who gets contradicted. Whatever they are called, we resented them because they were an exercise in budget bullying. The DUP never objected to that budget bullying; indeed, one might think that they were actually in on the tactic, and in on the threat about not renewing the computer system.

The fact is that the Assembly was being bullied. I have said before that I do not believe that the Treasury will treat the new suite of devolved capacities for Scotland in relation to welfare reform in this way. I know that Scotland’s deal on welfare is not perfect. Its operation will be problematic, but I am pretty sure that the Treasury will not resort to the kind of tactics that it used against the Northern Ireland Assembly when it comes to dealing with clear differences of view between the Scottish Parliament and the Westminster Government. I believe that it will take a different course.

If we are to be honest about this issue, we must be clear that there is a need to consider whether we need to realign the devolution of welfare in future so that the situation is sustainable. When the sunset clause in this legislation kicks in, and if there is some other mid-term welfare reform package in this Parliament, we do not want the Assembly to spasm into crisis for exactly the same reason.

We said at Stormont House and elsewhere that perhaps we should realign towards something more akin to the Scottish model of devolution. In Scotland, the burden is to take an interest in the benefits that people rely on if they have disabilities and long-term conditions. That points towards a way that we could go that would allow us to be more complete in the protections that we say we are offering people and perhaps provide a more sustainable course for the future.

That answers the point that the hon. Member for East Antrim (Sammy Wilson) made about the architecture of the Good Friday agreement and devolution in the first place. There might be a need to look at realignment, as we have declared. Indeed, I declared that a number of years ago. However, we have not had any takers at any of the talks. If people want to do that, they will find that it could go ahead.

The way in which the implications of this order and the orders to follow are being sold is wrong. Remember that this is only the first of a number of orders that we will get, courtesy of direct rule. Indeed, it is more direct direct rule than we had before, because when a lot of the Northern Ireland social security legislation was passed under the old style of direct rule, it was taken through the House by Northern Ireland Office Ministers. Now, we have direct rule by the DWP, thanks to the way in which Sinn Féin and the DUP have decided it will happen.

It is wrong for parties that oppose these changes to benefits and sanctions to say in respect of making sure that these cuts and changes will happen by direct fiat and by the hand of a direct-rule Minister in the DWP, “Well, that was a good deal because we saved devolution.” Who was threatening devolution? The only parties that were threatening devolution and the institutions were Sinn Féin and the DUP. They contrived the brink and we all had to teeter on it. When they were saved from themselves in the end, they said that they had done a good job by getting concessions that were available anyway—they were not concessions at all.

That is the nonsense and dishonesty that lies at the centre of the politics of this. We are not one bit happy or content. We are not thankful to the Government for this at all. There were ways of dealing with these issues. They should have been taken in a mature way by devolution—