Welfare Reform Bill


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Danny Alexander: I shall speak briefly in support of amendment No. 195 and new clause 12. The amendments concern the public interest and the way in which the operation of the Bill and various aspects of it are monitored. They are not so much about the convenience of Members of Parliament, although that is significant, as about making information much more widely accessible to the general public. The publication of reports by the Department will provide an opportunity for members of the public to scrutinise the operation of the Bill much more carefully.
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Amendment No. 195 requests a report to Parliament by the Secretary of State on the operation of the powers to make regulations under the Bill. It has been noted that there are a huge number of regulation-making powers in the Bill, covering a wide range of matters. We shall turn in a later clause to which of them will be subject to the affirmative resolution and which to the negative resolution procedure. Considering their vast range, an annual report to Parliament on their use would be a useful addition to the body of information available to Parliament and to the general public on the Bill’s important provisions. Draft regulations have not been available to the Committee in relation to many of the powers, so it has been hard to consider all of them in detail, although the Under-Secretary will agree that we have considered a number of them in considerable detail.
The hon. Member for Bury St. Edmunds made an important point on new clause 12 about reports on the scheme’s impact on older workers. Age Concern’s work is valuable in that respect and suggests that older workers have not benefited as much as other categories from pathways to work. The point has been made that a substantial part of the Government’s target of getting 1 million people off incapacity benefit in a 10-year period could be met simply by waiting for recipients of incapacity benefit and who are over 55 for men or 50 for women to reach retirement age. There are 1 million people in that category and when they reach retirement age, they will come off the benefit. The Department is therefore a long way towards meeting its target. It is not an onerous target, but thanks to the body of people on benefit, the Department is a lot closer to it than might be suggested. As the hon. Gentleman said, that should not lead to people over 50 being given less good access or less preferential treatment in pathways to work. Reporting to Parliament on that would be a useful way to ensure that the Government are regularly held to account.
A specific annual report to Parliament on how welfare to work help is operating for people with mental health conditions would be a useful way to hold the Government to account for how the scheme is working for those for whom it has not been seen to be so successful. The point about longer-term claimants is relevant in that regard. I hope that the Under-Secretary will address the matter in her response, to which I look forward.
Mr. Hunt: I see in front of me a sea of weary faces, so I shall make my comments brief. I wish to make one comment on new clause 5. There is a huge opportunity—[Interruption.]
The Chairman: Order.
Mr. Hunt: There is a huge opportunity for the Government if we are trying in the Bill to change employers’ attitudes to employing disabled people. The Government are the biggest employer with 1.3 million employees in the NHS alone. Not only that, but they issue contracts worth £120 billion every year to private and voluntary sector providers. They have a real opportunity for an easy win by ensuring that they transform their recruitment policies. Their record has got better, but it is still not as good as it should be overall: 4.5 per cent. of civil servants are disabled, compared with 19 per cent. of the working-age population. That is an average figure and, in some Departments, the percentage is lower than that. In the Department of Health, for example, which one would think would understand such issues, the figure is only 3.3 per cent. In the Scotland Office, it is zero, but I do not know whether that is because it has a small number of employees and that the sample size is very small. The point is that there are some low percentages. Presenting a report annually to Parliament, as new clause 5 would require, would put pressure on Governments of all colours to ensure that they make progress in this important area.
I conclude by reminding the Under-Secretary of a response that I received from the Financial Secretary to the Treasury in reply to a parliamentary question on25 July. He said:
“Public procurement law includes a provision enabling contracting authorities to reserve contracts for supported businesses and factories employing more than 50 per cent. disabled people.”—[Official Report, 25 July 2006; Vol. 449,c. 1352W.]
There is an opportunity even under existing legislation for the Government to do a lot more and the proposal in new clause 5 that an annual report should be presented to Parliament would be the catalyst to make that happen. I commend the new clause to the Government.
Mrs. McGuire: Many questions have been raised and I will go through them, but first I want to pick up some general issues that have been alluded to.
I want to make it clear that when we are talking about the number of disabled workers in any organisation, we must recognise that disability is a voluntary declaration. Hon. Members will recognise that when we publish figures in response to parliamentary questions on the number of disabled members of staff, we always make it clear that that declaration is voluntary. For all sorts of reasons, we must recognise that people may not wish to declare themselves disabled. That is a particular issue, as the hon. Member for Daventry will recognise, for those with mental health conditions. I make that caveat at the beginning of my comments.
On access to work, I am glad that the hon. Member for Bury St. Edmunds gave me the opportunity to address some of the issues concerning access to work. The letter that he read out clarifies the position, but perhaps not quite in the way that he might have expected.
When the Prime Minister’s strategy unit reported in January 2005, it made a series of recommendations, one of which was that if disabled people are to be truly considered part of mainstream employment, we should look at opportunities and options for their employment cost to be part of mainstream employment costs. The DWP, as the hon. Gentleman graciously highlighted, has blazed a trail with that because we have absorbed the cost that would previously have been met bythe access-to-work scheme. We seriously think that Departments should assume the responsibility for access-to-work provision in their employment budgets. Saying that disabled people may have specific support requirements and that they should be considered as part of employment costs is a beacon to other parts of the employment market. It is to be applauded, not to be criticised.
Having said that, I recognise that concerns were raised about the recruitment and retention of disabled workers in the Government estate. The Office for Disability Issues has given a commitment to the major charities and players in the lobby to monitor and evaluate the impact that the withdrawal of access to work will have on employment and retention. We do that in the context of another element of Government legislation, which I know the Opposition support: disability equality schemes. We are not talking about something that has come from nowhere, but about something that was part of a well regarded and well respected Prime Minister’s strategy unit report that clearly highlighted the way to equality.
It is justifiable to expect an enormous Government employer across the board to take in some of those employment costs, because if we are truly to get disabled people recognised for what they can do and not for what they cannot do, we must start to think about how we support them in employment. Government can lead the way on that.
The other part of the equation is also important. Opposition Members and, indeed, some of my hon. Friends have made it clear that some of the challenging work in the employment of disabled people must be undertaken with small and medium-sized enterprises, where the majority of new jobs are. That is why we are clear that the access-to-work budget will be recycled into the system to support disabled people in SMEs— we are talking about £2.5 million or thereabouts—because that is where we need to make the breakthrough.
Mr. Boswell rose—
Mrs. McGuire: Before the hon. Member for Daventry comes in, may I clearly indicate to the Committee that since 1997 the access-to-work budget has quadrupled? It was £15 million in 1997 and is now £60 million.
Mr. Boswell: Can the Under-Secretary simply confirm that the evaluation of the performance of public sector schemes by the Office for Disability Issues will be published?
Mrs. McGuire: I can give the hon. Gentleman that assurance. The Office for Disability Issues publishes an annual report, and a first annual report has been published. The information will be in the public domain. I cannot say whether we will do an all-singing, all-dancing report, but it will be in the public domain, not least because part of my role as Minister with responsibility for disabled people is to meet regularly with representatives of the lobby. These are the very issues that came up as part of those discussions.
Danny Alexander: I want to obtain a brief point of clarification. The Under-Secretary made sensible remarks about pushing access to work out, particularly to SMEs. What steps do the Government plan to take to promote access to work to businesses in that category, given the relatively low level of awareness among many small businesses about access to work?
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Mrs. McGuire: There is a bit of an urban myth that we somehow hide access to work under a DWP bushel somewhere. We do not, and it is well used. I think that about 35,000 people use access to work on a regular basis. That includes what might appear to be quite minimal support in the form of equipment through to support staff and all sorts of fairly sophisticated adaptations. If I had a pound for every time that access to work was mentioned at enormous gatherings, I would be quite a rich woman. It is not hidden away and we are pleased to be able to announce that access to work is in place.
The hon. Member for Bury St. Edmunds made great play of accountability and spoke passionately about ensuring that the figures are in the public domain. My hon. Friend the Minister looks forward to the third Wednesday of every month when the Office for National Statistics publishes exactly the sort of figures that the hon. Gentleman is looking for. There is no need for parliamentary questions on some of those figures because the ONS publishes them every month—both the off-flows and on-flows to incapacity benefits. The figures are not hidden; they are in the public domain. There might still be a need for parliamentary questions to tease out some background information, if that is what he wishes, but the ONS does that job and it does it with robust independence, as he will be aware from his days as an adviser in the Treasury. The figures are not ours. They are independently scrutinised and put in the public domain.
The hon. Gentleman made an important pointabout older workers. Earlier in October we introduced a new legislative framework aimed at ending age discrimination. It has opened up opportunities for older people and will progressively open up more. My hon. Friend said that over the last year, some 200,000 over-50-year-olds have moved into jobs. That is a significant change.
On disabled people moving into employment, I think that the figures show that we are on the right track. There is still a lot to do, hence we are keen to promote pathways to work with the voluntary sector. However, the inactivity rates for disabled people have reduced dramatically since 1998—they have come down by about 10 per cent. We are seeing the same trend again. Of course, there are areas in which we have a significant amount to do, not least among people with learning disabilities who fall way behind in employment opportunities.
I want to give a detailed rebuttal—I hope—of some of the points raised. By removing subsection (7) of clause 18, as proposed in amendment No. 245, we would prevent the extending of a pilot beyond the original 24-month period and replace it with a duty to report to Parliament. Although I understand the desire for scrutiny, as I have said, Standing Committees do not sit in isolation and there are various ways in which information and the activity of any Department can be scrutinised.
I am not convinced by the arguments of the hon. Member for Bury St. Edmunds about needing the Secretary of State to submit a separate annual report to Parliament. We have a Select Committee process and the Social Security Advisory Committee—also independent—which reports annually. Those arrangements work very well and I think that there would be a danger of over-reporting to no apparent end when we already have pretty good procedures in place. We often talk about over-regulation and overburdening the private sector, but dare I suggest that there is a danger that new clause 5 would increase the burdens on the public sector by asking for additional reports? I should highlight the fact that Departments will have to report annually on their progress under the disability equality schemes.
New clause 12 relates to the over-50s, those with a mental health condition and those who have been receiving benefit for more than three years. I repeat yet again that the Government are determined to ensure that the support on offer alongside ESA is relevant and useful to every individual, whatever their personal circumstances. We are clear that that is the philosophy underpinning the pathways-to-work approach; it is about looking at individuals as individuals, not as part of a group or a selection of statistics, as we did in the past. The results from pathways have vindicated that approach.
I ask Opposition Members to reconsider their provisions. All our regulations, all our work and all our statistics will be in the public domain. We have nothing to hide in terms of our approach and we welcome constructive criticisms about how we can improve. Indeed, we welcome the discussion in this Committee, which has been constructive not just for the most part, but almost exclusively.
We have reporting means in place, which have served us well. They are independent, and involve everyone from the ONS to the Social Security Advisory Committee. I therefore ask the hon. Gentleman not to press his provisions to a vote.
 
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