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Session 2005 - 06
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Standing Committee Debates
Welfare Reform Bill

Welfare Reform Bill



The Committee consisted of the following Members:

Chairmen: Mr. David Amess, Mr. Jimmy Hood
Afriyie, Adam (Windsor) (Con)
Alexander, Danny (Inverness, Nairn, Badenoch and Strathspey) (LD)
Banks, Gordon (Ochil and South Perthshire) (Lab)
Boswell, Mr. Tim (Daventry) (Con)
Brown, Mr. Russell (Dumfries and Galloway) (Lab)
David, Mr. Wayne (Caerphilly) (Lab)
Engel, Natascha (North-East Derbyshire) (Lab)
Heppell, Mr. John (Vice-Chamberlain of Her Majesty's Household)
Hunt, Mr. Jeremy (South-West Surrey) (Con)
Laws, Mr. David (Yeovil) (LD)
McGuire, Mrs. Anne (Parliamentary Under-Secretary of State for Work and Pensions)
Mountford, Kali (Colne Valley) (Lab)
Murphy, Mr. Jim (Minister for Employment and Welfare Reform)
Penrose, John (Weston-super-Mare) (Con)
Robertson, John (Glasgow, North-West) (Lab)
Ruffley, Mr. David (Bury St. Edmunds) (Con)
Seabeck, Alison (Plymouth, Devonport) (Lab)
John Benger, Chris Shaw, Committee Clerks
† attended the Committee

Standing Committee A

Thursday 26 October 2006

(Afternoon)

[Mr. David Amess in the Chair]

Welfare Reform Bill

Clause 11

Work-focused interviews
Question proposed [this day], That the clause stand part of the Bill.
1.30 pm
Question again proposed.
The Minister for Employment and Welfare Reform (Mr. Jim Murphy): Welcome back, Mr. Amess. I am delighted to see that you have returned after our break that seemed to last twice as long as our sitting, which is an unusual way in which to run things. Nevertheless, I am delighted to see you here.
I was in the middle of what I hope will be a short contribution because, as I was saying, many of the questions were about the details of the regulations, but there will be opportunities to shape them when they come out of draft and are taken through the formal process before being agreed by Parliament. Where I can, I shall respond to specifics without going into the detail of every draft regulation.
I shall return to the points made by the hon. Member for Daventry (Mr. Boswell).
In response to the debate on why a substantial number of people do not participate in the first work-focused interview, I said that I could not imagine him in a saloon bar. I think that that was the gist of the point that he made before the break.
Mr. Tim Boswell (Daventry) (Con): Exactly.
Mr. Murphy: I have not sought to question or second-guess the hon. Gentleman’s statistic of 23 per cent. so the Committee will of course take it at face value, and on the basis of that figure, I accept his point entirely.
Mr. Boswell: For the avoidance of doubt, the piece of paper from which I was reading has the imprimatur of Jobcentre Plus on it, so I think that the Minister had better agree with it.
Mr. David Ruffley (Bury St. Edmunds) (Con): It must be true, then.
Mr. Murphy: It must be true, but the fact that the hon. Member for Daventry said it gives it additional credibility in Committee.
A variety of scenarios—we cannot rehearse them all now—could lead to the deferral of a work-focused interview. For instance, someone might be close to the labour market already, or be recovering from an ailment or injury, such as a broken leg or an accident at work, or be taking up work. Those are the types of circumstances that could reasonably lead to a deferral.
The hon. Member for Daventry asked reasonably about the timing of future work-focused interviews. Our intention is that the first work-focused interview should continue to take place in week eight of the 13-week assessment phase and provide advice about the labour market and the gateway to any benefits that an individual is entitled to, either out of work or as they get close to and eventually into the labour market. That would be an opportunity to offer wider benefit advice in a way that nearly always happens really effectively in pathways at the moment—although, as is always the case, we can do more there as well.
The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Danny Alexander) asked about sanctions—I think that I responded to the question about what taking part means.
I share the concern of the hon. Member for BurySt. Edmunds (Mr. Ruffley) about not complicating the system with too many intricacies and thus creating what he noticed in other clauses—complexity and confusion—and which we discussed how to avoid. We tested analysis and thinking and concluded that the50 per cent. reduction over that four-week period will be about the right level of sanction necessary to encourage people to participate again in the conditionality. If the conditionality is not adhered to there is of course the second element of benefit reduction. As the hon. Gentleman knows, the total reduction can be only for the total amount of work-related activity. As the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Stirling (Mrs. McGuire), said, we would never impose sanctions during the 13-week assessment phase because that would take it below the current jobseeker’s allowance—we would not seek sanctions beyond that level.
Without testing every scenario, which we will do in discussions on regulations, reinstatement would take place if the person were to comply with the conditionality—in other words, attended work-focused interviews—or if on appeal they showed good cause and that the sanction was inappropriate. Of course, we have set out what would be interpreted as good cause.
I do not want to lengthen the debate, but I remind the Committee of parts of the draft regulations that have been provided on clause 11, “Work-focused interviews”. Page 26 does not contain an exhaustive list of examples of good cause, but the sanctions and safeguards provided for are on page 6. Issues about deferrals are on page 7.
I offer the hon. Member for Bury St. Edmunds the caveat, which I know he will accept, that of course the forms must contain a certain amount of legalese. They will be stipulated by regulations and must thereforeset out the legal rights and responsibilities. Notwithstanding that, there is unanimity that we can find a better way to simplify communication. There is a difficult balancing act to be performed, but it is important that we convey as sensitively as possible the responsibilities and sanctions that there will be if the activity requirement is not adhered to. We therefore have absolute unanimity on the point made by the hon. Gentleman.
Question put and agreed to.
Clause 11 ordered to stand part of the Bill.

Clause 12

Work-related activity
Danny Alexander (Inverness, Nairn, Badenoch and Strathspey) (LD): I beg to move amendment No. 194, in page 10, line 41, after ‘regulations’, insert—
‘(aa) prescribing circumstances in which such a person is not subject to a requirement to undertake work-related activity in accordance with regulations;’.
With this amendment I seek to probe the Government’s intentions on directions to carry out work-related activity. It would provide that regulations could be made to prescribe circumstances in which such a person as described in the clause is not subject to a requirement to undertake such activity. The intention is to elicit more detail from the Minister on the Government’s thinking about the circumstances in which members of the work-related activity group, if one could call them that, rather than of the support group, might not be required to undertake such activity. An individual could be affected by a range of circumstances to do with their impairment, disability or health condition. That concern might particularly apply to those with fluctuating conditions. It might well be possible for such people to engage in work-related activity when their condition is less severe, but as it fluctuates there may be periods when that is not possible. Unless exceptions are described so that the conditionality on work-related activity would not apply, someone in such circumstances could be caught out by the conditionality regime. I am keen to hear more from the Minister about how those issues would apply to such cases.
It is also worth saying that the clause and the Bill seek to make obligatory taking part in work-related activity, as well as attending a work-related interview or a work-focused health-related assessment—matters of responsibility subject to reductions in benefit if not complied with. When we come to later amendments, we will have a wider debate on what work-related activity is and is not; that is not the subject of this amendment.
Owing to their disability, impairment or health condition, there may well be people for whom support or adjustments may be needed, to enable them to undertake the work-related activity required of them. If such support or adjustments cannot be provided for whatever reason, it may be inappropriate to require that person to carry out work-related activity. I hope that the Minister will agree and that the Government do not intend to sanction someone’s benefit in such cases. I look forward to the Minister’s response.
Mr. Boswell: I shall speak briefly, Mr. Amess. If I may say so, this probing amendment is well conceived. We need to know something about this issue. The Government are undertaking a fairly major step, although in pathways pilots they have done a little to require work-related activity over and above the relatively easily described and scoped work-related interview. A whole variety of circumstances in which that might not be possible might apply.
I suppose that unless we assume a grave deficiency in the local or national labour market—we shall not go into that wider issue this afternoon—it would normally be self-evident that somebody with limited capacity for work who is not in work although there is work to be had would need to move towards some work-related activity. That is not objectionable in principle.
In our debate on the last clause, the Minister flagged up the fact that we are trying to emphasise that there is an approach of mutuality and partnership so that officialdom works with the claimant to try to get them through. All the surveys of disabled people show that that is what many of them would like to do if they had the support. We need to scope what they can do and what will get them closer to working. At this stage, at any rate, nobody wishes to prescribe that there should be a penalty for not working. I certainly do not, but there is clearly a need to prepare for work.
The explanatory notes, which we sometimes criticise, are quite helpful on this issue. They discuss work tasters, programmes to manage health and work, job search assistance and programmes to assist in stabilising a person’s life. The latter programme may be a little less clear than the others but it is fairly clear, even from those short words, roughly what the Minister is driving at. No doubt he will wish to respond to the amendment.
In conclusion, all I need say in support of the amendment is that we clearly need to know more about what is intended and to have in mind at all times the possible constraints on the ability to carry that out—in particular when those constraints are not in the claimant’s control. Take work tasters, which are analogous to people going on work experience from their school or college. There may be health and safety considerations.
Arguably, those considerations could be more intense if a person has been out of the labour market because of some illness or disability and then wishes to go and try something out, rather than take part in a settled arrangement in which they are in a contract of employment, having succeeded in getting work. Clearly, it is important that the matter of constraints is addressed, and that there is such a reasonable opportunity.
The Minister may wish to say something about the fact that, theoretically, it may be necessary to provide access to work arrangements in order for a work-related activity to take place, let alone the work itself.
1.45 pm
The hon. Member for Inverness, Nairn, Badenoch and Strathspey has reinforced my inquiry on that matter. The whole import of the clause is that people will not have an easy transition from being limited in capacity to work and out of work to getting into work. We all want to bridge that gap, but we must do so in a reasonable way. Above all, we do not have to attach blame to the individual who, for reasons that may be beyond their control, is unable to make the transition. If there is a constraint, it needs to be met by a waiver or appropriate action. Therefore, we ask the Minister to explain what he has in mind and urge him not to be too literal-minded. We want some indication of how such a delicate gap is to be bridged, particularly at the point where there is an implied threat of sanctions, which is an innovation.
 
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Prepared 27 October 2006