PARLIAMENTARY DEBATE
Health and Disability White Paper - 16 March 2023 (Commons/Commons Chamber)
Debate Detail
We will deliver action in three ways. First, we will transform the future benefits system so that it focuses on what people can do, rather than on what they cannot, including by removing the work capability assessment. In our new system, there will be no need to be found to have limited capability for work or work-related activity in order to receive additional income-related support for a disability or health condition. We will introduce a new universal credit health element that people receiving both personal independence payment and universal credit will be entitled to, which will enable people to try work without the fear of losing their benefits. We will roll this out carefully from 2026-27, and we will ensure that no one currently on universal credit and with limited capability for work or work-related activity will lose out once they move on to the new system.
Secondly, while de-risking work is one side of the coin in supporting disabled people and people with health conditions into work, we know that we also need to provide more employment and health support for this group. The White Paper sets out how we will introduce a new personalised approach to employment support and engagement, with the aim of helping people to reach their potential and live a more independent life. We are investing in additional work coach time and tailored support. The Chancellor also set out yesterday that we will introduce a new programme called universal support, which will provide wraparound support for individuals and employers, as well as additional money to provide more mental health and musculoskeletal treatment for this group.
Finally, we will ensure that people can access the right support at the right time, and have a better overall experience, by testing new initiatives to make it easier to apply for and receive health and disability benefits. I am certain that our White Paper reforms will support more people to reach their full potential and reap the health and wellbeing advantages of work.
Although we know that most of the proposals set out in the White Paper will not be implemented until the next Parliament, a significant number of ill and disabled people will be impacted. We see the Government using a carrot-and-stick approach, which will leave many sick and disabled people with the stick and the real threat of the ramping up of sanctions, as indicated by the Chancellor during his Budget statement yesterday. Just this week the Information Commissioner’s Office ruled that the Department for Work and Pensions must release “sensitive” research into its sanctions regime following the Work and Pensions Committee report, which found that there is very little evidence that the sanctions work. Instead, it found that they have a significant impact on the health and finances of those who have been sanctioned. There are real consequences to some of the Government’s actions.
Nobody is arguing that scrapping the work capability assessment is not welcome. However, relying solely on the PIP assessment is not the solution, given the current experiences of PIP assessments, which show that they are deeply flawed; the DWP is losing or conceding in four out of five appeals. Moreover, the Institute for Fiscal Studies said yesterday that up to 1 million people currently on incapacity benefits could lose out as a result of scrapping the work capability assessment and relying on using PIP only. Also under the new proposals disabled people will not automatically be in the “no work-related requirements” conditionality group and will now be subject to the decisions of a work coach.
We also did not hear any additional investment in the Access to Work scheme, so can the Minister say how many people will be impacted and what the cost is of these new proposals? It is estimated that 1 million people will lose out. How are the Government intending to mitigate that? Will the PIP assessment framework change or stay as it currently is? Given the poor decision making on so many PIP assessments, what action is being taken to fix the flawed decision-making process and the assessment itself? How will the DWP ensure that the policy proposals do not remove vital protections against sanctions and risk pushing people further into poverty? Finally, when are the Government intending to publish the sensitive research into the sanctions regime?
It was before my time in the House, but I well remember debates in previous years about the work capability assessment. It is welcome that we are scrapping the work capability assessment through these reforms. The reforms also offer an opportunity to focus on quality when it comes to the PIP assessment and on making sure that we get the right decisions first time. The hon. Lady will note, for example, that one of the commitments we have made in the White Paper is trying to match specialist assessors with people’s conditions. That is another thing people have regularly been asking for, and we are determined to test that and see what difference it can make. Again, this is all about being responsive to the feedback we have received.
On the issue of sanctions that the hon. Lady mentioned, I know that the legal case she touched on is under consideration by Ministers elsewhere in the Department at the moment. No doubt we will come forward and say more about that in due course, but I want to be clear that it is not my intention or the Department’s intention to force anyone to do something that is not right for them. We are committed to personalised, tailored support that meets individual needs and aspirations. The Secretary of State will talk about that in more detail during the Budget debate later. A lot of that will be voluntary. I would hope that people will want to engage with universal support and will want to engage with Work Well, because this is about trying to help and support people. For people with health conditions, for example, this is a way in which we can work harder and tirelessly with them to help them get better. Work is of course an important determinant of better health outcomes. The White Paper is explicit in saying that we will move forward with this in a way that is appropriate for individuals. For those where work is not appropriate, they will not be expected to do it.
It is also important to set out for the House that there will be transitional cash protection in place. No one who currently has limited capability for work or work-related activity will lose out as they move to the new system. We are specifically protecting those with pregnancy risk or who are undergoing cancer treatment, and we are also keeping a contributory health and disability benefit. Of course, what I really want to do—this is key to all of the work I do in this role—is to work constructively with the hon. Lady and with disabled people and their representative groups to make sure that we get this reform right. This is the biggest welfare reform for over a decade, and we have to get this absolutely right.
The devil is always in the detail, so I have a few questions for the Minister. The PIP assessment is designed for a totally different purpose from the WCA; how will he reconcile those completely different systems? What will happen in future to those people who do not currently receive PIP—those on the limited capability for work and work-related activity element of universal credit, and particularly those with short-term and fluctuating conditions? Unless it is the Minister’s intention that some 750,000 people will lose £350 a year, an alternative needs to be in place; what will that alternative be?
Do the Government believe that it is fair that the hundreds of thousands of people with disabilities that prevent them from even engaging in work-related activity should receive less financial support through UC than people who are entitled to PIP, and if so what is the basis for that justification? If the intention is to allow work coaches to use discretion in all such cases, how will we ensure consistent decision making and decision making that is based on a proper understanding of serious health conditions and their impact on daily life? What provision is made within the Department to ensure that capacity for that is in place?
As transparency and openness are so essential in building confidence, will the Minister now publish the report on the operation and effectiveness of sanctions? By publishing the White Paper, the Government have started this debate; the minimum we need now is openness and clarity about how those ideas are intended to work in practice.
On the specific point about PIP, again it is important to recognise that we will look very carefully at whether those individuals who are not currently in receipt of PIP meet the PIP criteria, and we will act accordingly. Also of course, anybody who thinks they may be eligible for PIP is able to apply for it. I would always encourage people who might be eligible for any given benefit to apply for it.
On the point about the health top-up, I can confirm that the award rate for the new UC health element will be at the same level as is currently awarded to those who have LCWRA. I again make the point about the approach that we intend to take: the reform will be carried out on a staged geographical basis, beginning with new claims in 2026-27. Of course, legislative steps will need to be taken to bring this reform to fruition, but there is much to welcome and I hope we can come together. On the point about the legal case, as I said earlier, colleagues elsewhere in the Department are considering next steps and will come forward in due course.
According to a recent survey on sickness benefit, 700,000 people want to find work, but the limits to what they can do seem so difficult that they fear losing their benefit. This measure, hopefully, should change that. However, I urge the Government to do the final bit, which is to bring in the other group who are still receiving employment and support allowance and not yet receiving universal credit, so that the interventions can help them and we can have a progressive, positive way of helping people with sickness or disability to fulfil their potential and lead productive lives, because work is a health treatment.
Why was there no guidance in the White Paper on statutory timescales for reasonable adjustments to enable more disabled people and those with long-term conditions to work? The SNP and many stakeholders continue to call for urgent improvements to end the payment gap. Why is there no mention of that? Why will the Government not ensure that flexible working is a day one right by default, rather than the onus being on the worker? Why is there no uplift for legacy disability claimants who were missed out during the pandemic? PIP assessments are already failing many disabled people and forcing them into challenging decisions which are ultimately overturned. Why is more being added to PIP assessments?
Will the Minister consider using dignity, fairness and respect as the White Paper proceeds into legislation, as the Scottish Government do?
This is about a tailored approach, whereby people are helped into work when that is appropriate for them. When we can improve people’s health outcomes, we ought to be doing so in a joined-up way. No one will be forced to do anything that is not appropriate for them. As I said earlier, I want people to feel that they would want to engage with the employment support we are offering, and that is reflected in the fact that so many disabled people tell us that they wish to try these opportunities, but fear losing their support if it does not work out.
The PIP journey is now down to 14 weeks, but there is more to do in that regard. I am not complacent about it, and I want to drive forward work on digitalisation. Let me also say that I have a very constructive working relationship with the Scottish Government Minister with responsibilities in this area, and I absolutely commit myself to working with him as we deliver this reform. I know I am set to meet the hon. Lady next week, when we may be able to follow up some of these points.
“a new personalised health conditionality approach”
to assess entitlement to what the Minister just referred to as the “health top-up” in universal credit. That sounds like a new assessment of some kind. Can he tell us what it means?
The sanctions do not work. Measures to tackle disability employment gaps are way overdue, and I pay tribute to many groups across Vauxhall, including Autism Voice in Clapham, which I recently visited. They do a lot of work to try to help disabled people back into the work market but, sadly, the employment gap is still there. Many employers discriminate and are not prepared to give disabled people an opportunity, because of the widespread perception that disabled people are less capable, regardless of whether they are the best candidate. What are the Government are doing to tackle negative attitudes about disabled people, which are preventing many of them from fulfilling the opportunities that they should be taking?
There is so much that we can do, and I want to place on record my thanks to everyone who works in those initiatives—they are often charitable endeavours, as I say—for everything that they to do help to facilitate this. Working with them will be a key part of how we move this forward.
My hon. Friend knows more than many Members in this House just how valuable better health is for people. The work that he has done in his professional life means that he has a lot of experience in this area, which I am keen to pick up. I know we are due to meet, and I would be keen to hear his ideas.
As I said in relation to PIP, digitalisation is key to this. It is about making sure that processes are easy to access and navigate. When we bring those factors together, they will help us to make a meaningful difference in shifting the dial on Access to Work applications.
We need to continue to move forward, which is why the hon. Gentleman is right to also touch on the support that we have in place and our work with employers. Access to Work is an important part of that, because it supports the physical things that people need in workplaces to facilitate employment opportunities. Another area that I am passionate about and want to look at closely, and relates to what the Chancellor said yesterday about occupational health, is what more we can do to improve soft skills for employers to ensure that they have good-quality workplace conversations to best support those who are coming to work for them, and those who work for them already.
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