Labour Market Activity

Debate between Wendy Chamberlain and Baroness Keeley

Tuesday 28th February 2023 Commons Chamber

[Barbara Keeley (Worsley and Eccles South) (Lab)]

More and more people are being pushed out of work owing to ill health: 2.5 million working-age people are now economically inactive owing to long-term sickness. Given the current stalling living standards and the cost of living crisis, it is unsurprising that many of those people want a job, but the current system is preventing them from re-entering the labour market by not providing the right support, and that is happening on multiple fronts.

The aim of the Restart scheme was to help people who were long-term unemployed as a result of the covid pandemic to get back into work, but a recent evaluation by the National Audit Office found that the programme would support fewer than half the anticipated number of people but would cost 35% more per person. Meanwhile, the work capability assessment regime has disincentivised some people with disabilities from trying to get back into employment because of the risk of losing their benefits when a reassessment of personal independence payment is triggered. I understand that there has been a revision of operational instructions to mitigate that, but the problem has not been eliminated for many people in receipt of the benefit.

As we heard from my right hon. Friend the Member for Leicester South (Jonathan Ashworth), there are also problems with the functionality of the work capability assessment process. Not only are many cases overturned on appeal, but the process itself can be drawn out and difficult. One of my constituents has been waiting for her assessment since April last year, which means that she has been receiving a lower rate of universal credit until it is completed. She has had her appointments cancelled three times, apparently because of lost paperwork. That is unacceptable.

Another constituent told me about her experience of being assessed through the work capability assessment regime for her universal credit. She is a registered nurse, who is currently unable to work owing to health problems. She told me this about one call that took place as part of that assessment process:

“I came off the call in tears and my daughter was very concerned about my state of mind after this call. I was made to feel that I was not worthy of these benefits and made to feel I was claiming something that I shouldn’t be getting. The way I was treated makes me very concerned for other people not strong enough mentally to deal with this abuse of power.”

A third constituent recently told me:

“I feel like I am being made to beg for help.”

It is critical that people are not penalised for trying to obtain paid work. Someone claiming personal independence payments who get a job that does not work out within a year should be guaranteed the ability to return to the exact benefits they were on before, with no fresh benefit assessments required, and, crucially, there must be improved targeted support for people with long-term mental and physical health problems. The current system is trapping people out of the workplace when hundreds of thousands of people are in need of a stable income, so I hope the Secretary of State will agree to reform the disability benefit assessment, as Labour is proposing to do. If not, can he explain how he can listen to the experience of my constituents and defend the current system?

Unpaid carers are another group who have become locked out of the labour market. Although the majority of carers are of working age, many carers have had to reduce their hours at work or quit their jobs entirely because of their caring responsibilities. Carers UK has estimated that nearly 2 million people in paid employment become unpaid carers every year, but a survey by Carers UK found that two thirds of unpaid carers had to give up opportunities at work because of their caring. Women were much more likely to be affected, as were people giving more hours of unpaid care. In the same survey, a quarter of unpaid carers said that they needed better support to return to, or maintain, paid work.

[Wendy Chamberlain (North East Fife) (LD)]

I know the work that the hon. Lady has done in relation to unpaid carers and the support she has given to my private Member’s Bill on carers’ leave. Does she agree that one of the ways of encouraging people back into work is changing the carer’s allowance? It creates a cliff edge that disincentivises unpaid carers from entering employment. Does she agree that it needs to be changed?

[Barbara Keeley]

That is something that Carers UK has campaigned on repeatedly. It certainly does need looking at.

The Government have failed time and again to provide the necessary support for carers. I think I am right in saying that the Secretary of State, when he was talking about his review, did not mention carers. Again, that is disappointing. The carers action plan for 2018 to 2020 was shamefully void of funding provision and ambition for support for carers, and it pales in comparison to the national strategy for carers that Labour published in 2008. The last Labour Government pledged £255 million for new commitments to support carers. That included £150 million to increase significantly the amount of money provided by central Government for breaks from caring. Such breaks can be a lifeline for carers and allow them to continue in employment. That funding for breaks appears to have disappeared.

Labour also committed funding to enable carers to combine paid employment with their caring role and to re-enter the labour market after their caring role had finished, through flexible working opportunities and increased training provision. There was a commitment to working with Jobcentre Plus to deliver improved information and establish a training programme for carers. In contrast, the Government’s carers action plan merely promised to consider dedicated employment rights for carers, and said that the Government would work to increase opportunities for carers returning to the private sector. Those measures are woefully inadequate and demonstrate a failure to support this country’s 10 million carers.

Unpaid carers are repeatedly forgotten by this Government, despite the enormous social and economic contributions they make, so will the Minister—and indeed the Secretary of State, when he is back at his place—work with colleagues across Government to ensure that the benefit system works for, rather than against, people making claims? Will he commit to improving the current regime, which sees too many unpaid carers and too many people in receipt of disability benefits being locked out of employment?