Welfare Reform Bill


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Mr. Ruffley: I pay tribute to the way in which my hon. Friend has shared a heart-warming and positive story from Tunbridge Wells. Does he recognise the statistic about tight labour markets? The Shaw Trust, among others, has suggested to me that the employment rate of disabled people in Berkshire could be eight or 10 times higher than the employment rate of disabled people in Bridgend. We must understand that and develop policies to deal with it.
Mr. Hunt: My hon. Friend makes an important point, and it underlines my point. One of the most important outcomes of the Bill, the general direction of which the whole Committee supports, must be the stepping up of involvement with employers. With the pathways to work pilots, we have the mechanism to make it happen. However, there are practical requirements of employers, which is where the amendment has some value. Employers are obliged to make reasonable adjustments through the Disability Discrimination Act 2005, but a reasonable adjustment will vary depending on the disability of the person seeking employment. The personal adviser will be aware of the disability and what the reasonable adjustment should be.
The amendment would clarify what employers were expected to do, as they form part of the bargain. Under the 2005 Act, the provision would become part of the action plan and a helpful part of the process. On that basis, I look forward to the Minister’s comments.
Mr. Murphy: I am happy to respond to the points that the amendment raises. Hon. Members are right to say that there are inspirational examples throughout the country, and they have referred to a couple of them. I, like many on the Committee, have had the opportunity to listen to people in my constituency and elsewhere describe how they have been helped by employers who have provided leadership and inspiration.
John Robertson (Glasgow, North-West) (Lab): I have listened to the hon. Member for South-West Surrey, and he has taken some matters out of context. I think I know a little bit about BT, seeing as I worked for the company for 31 years.
Mr. Murphy: You were employed by them.
John Robertson: That might be nearer the mark. BT has always employed people with disabilities, and it has always sought to help those people who become disabled during their employment.
Will my hon. Friend the Minister allay my fears about the figures we have discussed? Employment is rising all the time, and that is one reason why we are considering such people for employment. The issue has nothing to do with unemployment, because more people are employed now than at any time in the history of employment figures.
Mr. Murphy: My hon. Friend is right to say that there are now more people in work, and before the hon. Member for South-West Surrey intervenes, I do not seek to make a wider point. For the first time in our history, there are 29.02 million people in employment. For the first time since records began, the UK has more than 29 million people in work. Before the hon. Gentleman says that that is because of migrants, I shall point out that migrants make up less than 1 per cent. of our labour force. The big increase during the past year has been in the employment of people over 50 years old. As my hon. Friend the Under-Secretary said, there are 200,000 more people over 50 in work today than there were on this date one year ago. I believe that there are about 609,000 current vacancies in the labour market, for jobs that employers are trying to fill. In that context, we have the opportunity to put in statute the kind of support that people who have been out of the labour market for a considerable time are entitled to expect.
I do not have the honour of representing the city of Glasgow—the city of my hon. Friend the Member for Glasgow, North-West (John Robertson)—because my constituency is just outside it. The Silverburn centre is being built there—my old school was bulldozed as a result—and the agreements that have been entered into by employers are a model for what could happen in other parts of the United Kingdom. A series of employers have entered into agreements on the number of local people employed and on the number of people who have a history of long-term unemployment coming off IB and other benefits. If such agreements could be replicated throughout the country, it would take us a long way towards what we are discussing under the Bill.
I turn to the specific points that have been made. We have experience of listening to IB customers who have been supported into and retained in work because of the inspiration, far-sightedness and progressiveness of employers. The hon. Member for South-West Surrey mentioned some, and my hon. Friend the Member for Glasgow, North-West, who used to be a manager at British Telecom for many years, cited his own company; I know that he has declared an interest every time he has mentioned it and its trade union.
We can discuss the nature of the agreements contained in the clause in terms of action plans, because there is a degree of misunderstanding about what they would contain. The action plan is not a legal document, and the customer will not be asked to sign it. It is simply a record of the conversation between the individual, the personal adviser and the customer, and of what the customer has agreed to undertake. The customer is under no obligation, and we are not taking the power in the Bill to oblige a customer to adhere to the content of an action plan.
I understand some of the concerns, and I hope to allay them by virtue of these comments. Perhaps that might impact on hon. Members’ attitudes to some of the other amendments that have been tabled. The action plan is intended as a route map back to work. No one will have to fulfil a specific commitment contained in it. In fact, when it comes to an appeals process, if that was appropriate in terms of sanctioning at a later date, the customer would have to show that they had undertaken work-related activity in the widest sense, as outlined in the Green Paper, rather than that they had adhered to the contents of the action plan. I hope that hon. Members have a greater understanding and less confusion about the role of action plans in the context of work-related activity, and that that impacts on their attitudes to, and concerns about, an action plan.
The hon. Member for Daventry spoke about the close and important relationship between the personal adviser and the customer. The action plan is intended to be issued at the end of the first work-focused interview, after eight weeks. It can, of course, continue to be updated but, for the avoidance of any doubt, I repeat that its contents are a record of the conversation. They do not compel the customer to undertake a specific activity or fulfil the content of that action plan. The onus on the customer is to undertake work-related activity, the nature of which was outlined in the Green Paper, as that would take them closer to the labour market in between work-focused interviews. I hope that that reassures hon. Members about the nature of the action plan.
In that context, it would be inappropriate to try to place in an action plan a legal or organisational responsibility on employers in a local environment with which each customer would be expected to interact, because we are not even putting into the action plan a specific responsibility with which the customer has to interact. To put the type of responsibility on employers that we are not even asking customers to undertake would be wholly inappropriate in the context of these action plans.
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Employer engagement is absolutely crucial, which is why we take the opportunity to meet and to listen to some of our major national and local employers to see what more we can do to support them to ease the transition into work of people who have been out of work for a considerable period. As we roll out ESA, the return to work credit of £40 a week for 52 weeks will ease the customer’s pathway back to work. We can always look for ways of improving that pathway and easing the transition. Extension of the linking rules to two years is a new and important way of doing that.
Even if it were workable—there is a legitimate argument on whether it would be workable—it is not necessary to designate in an action plan, which is the note of a conversation between a customer and the adviser about what could bring the customer closer to the labour market. However, the customer has no legal responsibility to follow that advice, so designation would probably be unworkable and is certainly unnecessary.
To give the Secretary of State the additional power to place requirements on himself and external organisations that are carrying out his functions, as the hon. Member for Inverness, Nairn, Badenoch and Strathspey is seeking to do in amendments Nos. 38 and 141, could mean requiring a pathways to work provider to make available a specific type of training to customers. That can be better done through the contracting system and that is how we intend to deal with the specific point raised by the hon. Gentleman.
Amendment No. 38 would provide for regulations on the role of the customer in determining the action plan and the right of appeal against it. The action plan is best considered in the context of a route map. It is not a legal agreement or a legal document in the sense that some hon. Members have been concerned about and it is not appropriate to make it subject to appeal for that reason. Instead, subsection (4) allows for regulations to enable the customer to ask for the action plan to be reconsidered. We intend to make regulations under that power when we introduce the mandatory work-related activity to allow the customer to request an alteration to the action plan if they feel that that is appropriate. Not following the action plan is not a sanctionable offence and the action plan cannot specify a course of activity in relation to work-related activity. The amendments advocated by the hon. Member for Inverness, Nairn, Badenoch and Strathspey are therefore unnecessary. Equally, it would not be appropriate in a conversation between two individuals to place a requirement on another external organisation—that is, an employer—that we do not even expect one of the parties to the conversation to fulfil as part of the action plan.
With that general reassurance about the nature of an action plan, I hope that hon. Members will be encouraged to reflect, not to press the amendments and to consider the importance of subsequent amendments on conversations under clause 13.
Danny Alexander: This short debate has been useful, not least because of the opportunity to put on the record the importance that the Government attach to working with employers. I think everyone in the Committee attaches critical importance to that. There was almost nothing in the Green Paper about that, so it is good that the Minister’s comments have provided more information on the record than was in the Green Paper. With that in mind, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr. Hunt: I beg to move amendment No. 51, in clause 13, page 12, line 10, at end insert
‘including, in particular, circumstances where work-related activity cannot be accessed by him for a reason related to his physical or mental condition and circumstances where work-related activity is judged by a health care professional approved by the Secretary of State to be having a detrimental effect upon his physical or mental condition.’.
Secondly, there are also concerns that it should be possible to change an action plan if it is any way detrimental to the health, impairment or disability of the person concerned. I am sure that it is possible to do that, but the issue is a concern to a number of people. Part of those concerns is legitimately created by the fact that some provision has not always been adequate in some of the employment programmes that have existed under the pilots. It would be most welcome if the Minister could reassure the Committee on that point.
Mr. Murphy: May I start by repeating what I said in my earlier contribution? It is important to avoid confusion and others not understanding the full implications of what we say in this Committee. I confirmed earlier that the action plan will not attract a sanction, and the hon. Gentleman repeated that that was a concern.
Mr. Hunt indicated assent.
Mr. Murphy: I see him nodding so he accepts what I say. On the basis that action plans do not attract a sanction, I hope that the concerns that outside organisations have expressed about the nature and role of action plans, and about the relationship between action plans and any sanction in an appeals regime is reduced. The action plan is a route map. It sets out a type of activity that a customer could be expected to undertake. It will not compel anyone to undertake any specific activity, and as we roll out work-related activity, we will take the power in subsection (4) to set out
“the circumstances in which reconsideration may be requested”.
We shall, of course, consult on the regulations before we bring them before the House. With those comments, I encourage the hon. Gentleman to withdraw the amendment.
Mr. Hunt: I am grateful for the Minister’s reassurance on those points, particularly on where sanctions can and cannot be applied. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 13 ordered to stand part of the Bill.
Further consideration adjourned.—[Mr. Heppell.]
Adjourned accordingly at six minutes to Four o’clock till Tuesday 31 October at half-past Ten o’clock.
 
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