Welfare Reform Bill


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Mr. Hunt: On that note, no doubt the hon. Gentleman will have heard yesterday’s announcement that the Conservative party has asked Scope to undertake an audit of the party’s employment procedures in respect of disability. Scope is also in discussions with the Liberal Democrats about carrying out a similar audit for that party. However, it has not yet heard back from the Labour party about whether it will be willing to have an audit undertaken of its practices. Perhaps the hon. Member for Inverness, Nairn, Badenoch and Strathspey will ask the Minister to use his good offices to ensure that the Labour party could set an example.
12.45 pm
Danny Alexander: I do not wish to try your patience, Mr. Amess, too much on the issue, but I noted that announcement yesterday. The hon. Gentleman will be aware that I announced a month ago that the Liberal Democrats had reached a similar agreement with Scope to carry out an audit of our candidate selection procedures. I was pleased to see the Conservative party follow suit, and I hope that the Minister will use his good offices to ensure that the Labour party does likewise. Encouraging the participation of disabled people in public life is as much a part of the philosophy behind the Bill as many of the other points that we debated earlier.
One change that could be made to promote the better engagement of employers with this issue is the introduction of rehabilitation leave, which the hon. Member for Glasgow, North-West has proposed in a Bill. The Liberal Democrats will be more than happy to support his proposal when it is debated in this Committee.
Mr. Murphy: As is the case in Committee, some very talented officials have drafted an excellent speaking note. With your permission, however, Mr. Amess, I will answer some of the specific points rather than simply repeat the note. For the record, it explains the structure of clause 1. By reading the clause, hon. Members will read what is in my speaking note, anyway, but if they wish me to place a copy of it in the Library or to read it anyway, I will be happy to do so.
I have known my hon. Friend the Member for Glasgow, North-West for many years. I would like to thank him for giving me advance notice of his detailed question, but he did not, so I cannot. I reassure him that my answer will be shorter than his question, and I encourage him to look at the draft regulations and the supporting material, including page 4 on the new structure of the benefit, which the Department published earlier this month. It was sent to everyone on the day of their selection to the Committee.
Basically, we are restructuring the architecture of the benefits. There will be an assessment phase, and then a basic allowance on top of which there will be two separate levels. The first will be paid to those with work-related activity, expectations and conditionality; and any higher amount will be paid to more severely disabled people for whom there is no requirement to undertake any conditionality or work-focused interviews. Additionally, all the benefit levels that 2.7 million people currently enjoy will be protected during their transferral to the employment support allowance.
My hon. Friend asked specifically about lone parents. When the ESA is introduced, they can make their own choice. If they claim income support because they are a lone parent, they can stay on it and keep the disability premium. Alternatively, they can claim ESA because they are sick and disabled, and obtain the new structure and support. I hope that that clarifies the point for him.
Mr. Hunt: Will the Minister explain that point, because the Bill seems to say the precise opposite? Subsection (3) says:
“The basic conditions are that the claimant...
(e) is not entitled to income support”.
Does not that mean that the lone parent of whom he talks would not have that choice?
Mr. Murphy: I am sorry if the hon. Gentleman misunderstood me. The provision is based on the principle that someone cannot access two contributory benefits at once. We would not pay it, and they would not be entitled to employment support allowance if in receipt of—
Mr. Hunt: The Bill does not say “in receipt of”; it says “entitled to”.
Mr. Murphy: That person would not be entitled to ESA, based on the condition set out in subsection (3)(e), which is on entitlement to income support. The individual will choose, based on the explanation that I gave to my hon. Friend the Member for Glasgow, North-West.
Danny Alexander: For the sake of clarity, the clause says that the individual
“is not entitled to income support”.
The Minister has just described a circumstance in which the individual would be entitled to income support and ESA and would have the right to choose between them. The Bill would specifically prohibit that circumstance by making not having entitlement a condition. If the Minister is saying that subsection (3)(e) should read, “is not claiming income support”, that is quite different from what the Bill says.
Mr. Boswell rose—
The Chairman: Order. We cannot have an intervention on an intervention.
Mr. Murphy: I feel that it will be a similar point so I will give way.
Mr. Boswell: I am grateful to the Minister for giving way. As I understood it, he effectively said that there would be a no-detriment provision whereby if somebody chose—and Ministers are nodding at that—to maintain their existing patterns of benefit because they were more advantageous or they preferred to do so, they would be permitted to do so.
My concern relates to schedule 4. In paragraph 6, regulations make provision for converting existing awards into awards of ESA. Now if they can do that, will the Minister give the assurance that nobody will be required so to convert if it would be to their loss, even if the conversion period would be compulsory and that there would therefore have to be special provision under the new ESA?
Mr. Murphy: To return to the point about clause 1(3)(e), entitlement specifically means receiving rather than someone having some type of underlying entitlement. I hope that that clarifies the point for the hon. Gentleman. In terms of additional points raised by the hon. Member for Daventry—
Mr. Hunt rose—
Mr. Murphy: I would like to make some progress on this point. In terms of ensuring that there is a greater understanding of the new benefit architecture and the means of entitlement to it particularly by those with different circumstances and fluctuating mental and other health conditions, the first work-focused interview, regardless of whether pathways to work is rolled out through the public or private and voluntary sectors—and as we have said publicly, our future roll-out would be based in the private and voluntary sectors—will be done through Jobcentre Plus. It is at that point that the explanation of the different benefit opportunities will take place.
In terms of the new benefit entitlements—whether it is ESA, JSA or another benefit that might be available to the individual—advice will be given on a face-to-face basis in the first work-focused interview with Jobcentre Plus staff, regardless of whether the pathway area is in the private, voluntary or public sector.
The hon. Member for Daventry also raised the point about engagement with pathways. For all types of reasons, it is important that there is local engagement between Members of Parliament and those who are providing pathways at a local level, even if it is to emphasise the cross-party nature of support for the roll-out of pathways. Although there was not cross-party support for the money that made pathways possible—with many people on this Committee voting against it—the cross-party consensus is that pathways is now the right way to go.
In the most recent roll-out of Jobcentre Plus-based pathways, I have asked Jobcentre Plus district and local managers to make contact with local Members of Parliament, regardless of which party, so that there can be conversation at a local level about the ways in which support can be provided to hon. Members’ constituents. I will ensure that that takes place because it is important that it does so.
On the additional points raised by the hon. Member for South-West Surrey, it is important—although he says that this is not the only piece of legislation—to emphasise the sheer change and nature of the Disability Discrimination Act 1995. There are 7 million employees and 1 million employers who can help drive change and as my hon. Friend the Under-Secretary has said, all public authorities have to undertake the disability equality duty review by December of this year. Although the review is not exclusively about employment, it will focus on it. It makes an important point regarding the local implementation of enlightened and progressive national policies in the public sector. We have to make sure that that is happening in as many interactions as possible in the public sector in terms of our worthy goals and progressive policies.
However, the hon. Gentleman was being unduly kind—perhaps in the good-cop bad-cop arrangement that he has with his hon. Friend the Member for Bury St. Edmunds—
Mr. Ruffley: Which is which?
Mr. Murphy: I am not going to be drawn on that.
Mrs. McGuire: It is the new Tories; they are both good cops.
Mr. Murphy: My hon. Friend offers an honest assessment, but I will leave it there.
There has been pretty fair criticism of the public sector for what does not happen at the moment, and an implicit suggestion that the position is much stronger in the private sector. Last week, I met some major national companies to talk about our agenda, and they admitted to having structural weaknesses in how they implement the policies. I am not criticising them but making an observation which they themselves offered about their inability, on occasion, to have that face-to-face intervention at the point of sifting job applications, at job interviews, or in relation to supporting employees at work. They are looking for ways to ensure that their well intentioned and progressive national policies can be rooted in as many interactions in local branches and outlets across the United Kingdom. This issue presents challenges in both the public and private sectors.
I move to the points raised by the hon. Member for Inverness—I hope that he accepts that title for the rest of the Committee and does not take it as an insult to anywhere else. I am looking forward to an official visit to his constituency soon, and am glad that he invited me to visit, so I know that he will not take it as an insult if I refer to his constituency simply as “Inverness”.
We are still committed to a single working age benefit; that is one of our goals with simplification. The Bill simplifies matters in an important way, despite the reasonable point made by the hon. Member for Daventry about ensuring that there is no complication as agreed on understanding among customers and claimants about the new architecture. We are replacing incapacity benefit and income support that is allocated on the basis of disability with ESA. That is an important change to the way in which benefits are structured. I reiterate that we are committed in the long term to a single working age benefit.
Mr. Hunt: I apologise to the Minister for going back to his earlier comments, but I just looked at the clock and wanted to make some comments now. I welcome his comments about the single working age benefit, but we have not quite resolved the matter of subsection (3)(e) and the difference between people who are entitled to income support and people who are claiming income support. Will he undertake that his officials will reconsider the wording of that measure before the Bill makes further progress through the House, because disability groups are concerned that it seems to exclude a number of people from entitlement to ESA?
Mr. Murphy: I will, of course, return to the point that the hon. Gentleman reasonably raises. I also want to deal with the issue of employer engagement, which has been raised again by hon. Members. We work in close co-operation with the Disability Employment Advisory Committee, which offers a fantastic, frank analysis of some of the emerging challenges with the agenda in a way that improves the quality of our work on disability and how we offer support to people entering the workplace.
The hon. Member for Inverness asked about migration, which is important as it concerns 2.7 million people, although if current trends continue that number will be marginally lower in 2008-09. He probed our better intentions about migration. Of course, this issue is partly affected by resources and their availability, but our genuine intention, which is based on the current analysis of IB, is that those who are most recent to the benefit should be those most likely to have the opportunity to get back to work. As the hon. Member for Bury St. Edmunds said, thus confirming what the Government suggested, someone who is on incapacity benefit for two years or longer is more likely to die, retire or never work again. We have used that analysis for a migration strategy and looked for ways in which to migrate the newest IB claimants on to the new ESA.
It being One o’clock, the Chairman adjourned the Committee without Question put, pursuant to the Standing Order.
Adjourned till this day at Four o’clock.
 
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