Welfare Reform Bill


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Mr. Ruffley: I do not wish to interrupt the hon. Gentleman’s flow, but again in a spirit of consensus, would he agree that there are issues about sanctioning, for instance, about which outside bodies and disability groups are concerned? I am sure that the Minister will want to debate that in a spirit of co-operation.
Danny Alexander: I think that we could take this spirit of co-operation and consensus thing too far. However, I agree with the hon. Gentleman and I hope that the Minister will, too, because there are important issues involved, including whether the people who will have sanctions and conditions placed on them will have genuine access to the support and help that they need.
This has rightly been described by the Government as a something-for-something arrangement. We support that approach, but we have to ensure that the something that is on offer to support people back into work—the pathways to work programme—is rolled out properly. I hope that the Minister will be able to offer some assurances about the level of funding that will be available for that package. I am concerned that there is a big shortfall in the funding that will offer people outside the pilot areas a “pathways to work lite programme”, which will mean that the responsibilities that they are being asked to take on under the Bill are not balanced by the opportunities and support that is on offer. That is my first caveat.
The hon. Member for Bury St. Edmunds made the important point that, over the years, we have seen an increasing proportion of incapacity benefit claimants claiming for reasons of mental health. One Government evaluation of the pathways to work programme has suggested that incapacity benefit was not as effective for people whose first reason for claiming benefit was mental health. We need to return to that issue, particularly when we are discussing the personal capability assessment. We will need to ensure that there are protections and assurances for the people involved. Likewise, there are important questions to be asked about how quickly existing claimants will be migrated on to the new benefit and to what extent both the conditions and benefits of pathways to work will be available to them.
An important issue regarding the amendments that we want to discuss is the extent to which the Government’s approach offers any sense of support to, or engagement with, employers. This is not just a supply-side issue about getting people ready for work; it is also about ensuring that employers are encouraged to keep their side of the bargain.
I am happy to support the programme motion. The approach that has been suggested—not having knives, but allowing the Committee to find its own way—should command support from all Committee members. I hope that we have a mature and sensible discussion, and I am sure that that will be so. I dare say that we will find consensus on some issues, but also that there will be disagreements and I am sure that they will be discussed on both sides in the constructive spirit that has governed the Bill’s proceedings so far.
Question put and agreed to.

Clause 1

Employment and support allowance
Mr. Ruffley: I beg to move amendment No. 52, in clause 1, page 1, line 15, leave out ‘limited’ and insert ‘restricted’.
The Chairman: With this it will be convenient to discuss the following amendments: No. 183, in clause 1, page 1, line 15, leave out ‘limited capability for work’ and insert
‘labour market disadvantage related to physical or mental condition’.
No. 1, in clause 1, page 2, line 1, leave out ‘limited capability for work’ and insert ‘a labour market disadvantage’.
No. 205, in clause 1, page 2, line 1, leave out ‘limited’ and insert ‘restricted’.
No. 2, in clause 1, page 2, line 2, leave out paragraphs (a) and (b) and insert—
‘(a) the labour market disadvantage affecting such a person is related to his physical or mental condition, and
(b) the disadvantage is such that it is not reasonable to expect him to work.’.
No. 206, in clause 1, page 2, line 4, leave out ‘limitation’ and insert ‘restriction’.
No. 150, in clause 1, page 2, line 4, after second ‘to’, insert
‘be available for or actively seek work’.
No. 9, in clause 8, page 6, line 7, leave out from ‘whether’ to ‘him’ in line 9 and insert
‘the labour market disadvantage affecting a person, and related to his physical or mental condition, is such that it is not reasonable to expect.’.
No. 207, in clause 8, page 6, line 7, leave out ‘limited’ and insert ‘restricted’.
No. 208, in clause 8, page 6, line 8, leave out ‘limitation’ and insert ‘restriction’.
No. 14, in clause 8, page 6, line 24, leave out ‘limited capability for work’ and insert ‘a labour market disadvantage’.
No. 209, in clause 8, page 6, line 24, leave out ‘limited’ and insert ‘restricted’.
No. 15, in clause 8, page 6, line 25, after ‘examination’, insert ‘necessary to determine labour market disadvantage’.
No. 16, in clause 8, page 6, line 27, leave out ‘limited capability for work’, and insert ‘a labour market disadvantage’.
No. 210, in clause 8, page 6, line 27, leave out ‘limited’ and insert ‘restricted’.
No. 17, in clause 8, page 6, line 42, leave out ‘limited capability for work’, and insert ‘a labour market disadvantage’.
No. 211, in clause 8, page 6, line 42, leave out ‘limited’ and insert ‘restricted’.
No. 18, in clause 8, page 6, line 43, leave out ‘limited capability for work’, and insert ‘a labour market disadvantage’.
No. 212, in clause 8, page 6, line 43, leave out ‘limited’ and insert ‘restricted’.
No. 19, in clause 8, page 6, line 45, leave out ‘limited capability for work’, and insert ‘a labour market disadvantage’.
No. 213, in clause 8, page 6, line 45, leave out ‘limited’ and insert ‘restricted’.
No. 20, in clause 8, page 7, line 2, leave out ‘limited capability for work’, and insert ‘a labour market disadvantage’.
No. 214, in clause 8, page 7, line 2, leave out ‘limited’ and insert ‘restricted’.
No. 21, in clause 8, page 7, line 6, leave out ‘limited capability for work’, and insert ‘a labour market disadvantage’.
No. 215, in clause 8, page 7, line 6, leave out ‘limited’ and insert ‘restricted’.
No. 29, in clause 10, page 9, line 8, leave out ‘capability for work’ and insert ‘a labour market disadvantage’.
No. 30, in clause 10, page 9, line 9, leave out ‘capability for work’ and insert ‘a labour market disadvantage’.
No. 42, in clause 17, page 14, line 31, leave out ‘limited capability for work’ and insert ‘labour market disadvantage’.
No. 216, in clause 17, page 14, line 31, leave out ‘limited’ and insert ‘restricted’.
No. 43, in clause 17, page 14, line 32, leave out ‘limited capability for work’ and insert ‘labour market disadvantage’.
No. 217, in clause 17, page 14, line 32, leave out ‘limited’ and insert ‘restricted’.
No. 44, in clause 17, page 14, line 34, leave out ‘limited capability for work’ and insert ‘labour market disadvantage’.
No. 218, in clause 17, page 14, line 34, leave out ‘limited’ and insert ‘restricted’.
No. 46, in clause 21, page 16, leave out lines 38 and 39 and insert—
‘ “labour market disadvantage” shall be construed in accordance with section 2(5);’.
No. 219, in clause 21, page 16, line 38, leave out ‘limited’ and insert ‘restricted’.
No. 220, in clause 21, page 16, line 40, leave out ‘limited’ and insert ‘restricted’.
No. 47, in clause 21, page 16, line 42, leave out ‘limited capability for work’ and insert ‘labour market disadvantage’.
No. 221, in clause 21, page 16, line 42, leave out ‘limited’ and insert ‘restricted’.
Mr. Ruffley: Thank you, Mr. Amess. That must be some kind of record.
The amendment relates to an important piece of language, on which the Government should be congratulated, as their approach is to get away from the notion of incapacity. In the 1990s, invalidity benefit was changed to incapacity benefit. In those days, which are not that long ago, it was seen as an advance; but to me, and to most of us in the 21st century, it seems a rather unfortunate phrase, which is not in tune with the times.
The question, however, is whether the phrase “limited capability for work”, which is an improvement, is necessarily the right one. In the spirit of probing, I wonder whether the word “restricted” might be better. I do not want to stray into semantics, nor do I want to take up the Committee’s time, but in the longer version of the Oxford English dictionary, “limited” is described as
“appointed; fixed; confined within definite limits”.
“Restricted” might therefore be an improvement, as it is described in the same volume as
“of a person; not allowed freedom of movement”.
There is a sense in which, if “restricted” is used, people are being limited, and not free to move. The reality is that if someone has a limited capability for work, they are not being written off, because the Bill makes it clear that if a person has a limited capability for work and draws the support element of the allowance, it is not the end of the story. It is explicit in the Bill and in what the Secretary of State said that there will be movement within the elements of the allowance.
We must be clear about the language: when I was considering amendments to the Bill, “limited capability” struck me as being not quite right. The concept is fine, and the emphasis on capability is tremendous; I am not talking about what people cannot do, but about what they can do.
What about the demand side? If the employees are not up for—to put it colloquially—employing those with limited capability or even severe disability, it does not matter how well they make themselves, what training they get, rehabilitation they do or support they get from Jobcentre Plus or third sector bodies. Therefore, the words “labour market disadvantage” in the amendment lead me inexorably, and I hope validly, for the purposes of this clause, to explore employment attitudes. One can have a limited capability if the employer does not take on disabled people even though they are work ready.
The Bill has great aims and ambitions and we want to try and ensure that the clauses work to deliver those policy objectives. However, has enough attention been given in the clause and elsewhere to encouraging employers to employ people with disabilities in the workplace? I am not suggesting for one second that this is an issue that Ministers have not thought about. They have; I have spoken to them. I know that this is a big issue. However, there does not yet appear to be enough on that in the Bill. That is why the “labour market disadvantage” amendment that we are speaking to is important.
There are some interesting statistics that I would like to share with the Committee. In 2005, the Chartered Institute of Personnel and Development took a large sample of employers drawn from all sectors. One in three employers responded that they deliberately excluded people with a history of long-term sickness or incapacity when recruiting staff. On the face of it, we all know that that looks like straightforward unlawful discrimination that would be covered in other Acts of Parliament and that deservedly should be stamped on. However, when it comes to people who have been on incapacity benefit—and, should it go through, the logic would apply to the new employment and support allowance—the picture is more complicated. Rather than being concerned about prospective employees’ health per se, many employers are concerned about the possibility that long-term claimants may lack up-to-date skills. They may have been on incapacity benefit for five years or even longer and lost the habit of working in a socialised work environment. Those were the findings of the CIPD, and 43 per cent. of the employers surveyed thought that long-term IB claimants would be less productive at work.
Recruitment conveys risk for any employer. They have the bottom line to worry about and they say—we know what the employers’ arguments are—that if the wrong person is hired, it can be costly to the whole enterprise. However, when we are looking at labour market disadvantage, it is not good enough in this day and age to say that employers’ attitudes do not matter or that we will just try and exhort them generally. We know that employers prefer to play safe, but that is not good enough.
The Royal National Institute of the Blind has also done research on this subject which shows that nine out of 10 employers thought that a blind or partially sighted person was either difficult or impossible to employ. It has said that the
“DWP needs to address evidence highlighted in Report no. 202 ‘Employers’ and service providers’ responses to the Disability Discrimination Act in 2003 and preparation for 2004 changes’ highlighting that nine out of ten employers think blind and partially sighted people are ‘difficult’ or ‘impossible’ to employ.”
The Department for Work and Pensions research report No. 139 on employers’ attitudes said that 37 per cent. of employers would take on people with mental health conditions, whereas 62 per cent. would take on physically disabled people. A poll commissioned by the Disability Rights Commission indicated that 25 per cent. of non-disabled people would not tell their employer if they acquired a disability or long-term health problem, for fear of dismissal—partly because of such attitudes, which will restrict a proper labour market for those with limited capabilities.
11 am
I support those findings—one goes out there, so one knows that that kind of thing goes on. Nevertheless, the CBI produced a survey that showed that 84 per cent. of firms now offer rehabilitation schemes to assist staff to return to work. However, the CBI also acknowledged that 35 per cent. of employers feel that they need more support from employees’ GPs, and/or want assistance with costs.
John Robertson (Glasgow, North-West) (Lab): I have listened to the hon. Gentleman’s comments on rehabilitation. I tried to introduce a ten-minute Bill on that subject. Does he agree that the Government need to consider people who become disabled through their work, rather than just considering disabled people in general, and that they have to legislate for that?
 
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