Welfare Reform Bill

There has been a great deal of interest from noble Lords and those in another place on the possibility that we will contract out decision-making that could lead to sanctions. It is important that we do not dismiss the possible benefits of such an approach. Contracting-out of decision-making could reduce hand-offs between two organisations, which in turn would speed up the process and reduce the potential for miscommunication. We should also bear in mind that the decision on whether to contract out decision-making has genuinely not yet been taken. The fact that it has not yet been taken is not a reason for not having the provision in the legislation should we decide to do so in due course. We need to ensure that the basic ESA and Pathways structures are in place and working before we embark on further change, and there are still a number of issues to be explored around the process involved. For example, we envisage that there would need to be a separation of roles between the decision-maker in an organisation and the personal adviser—the noble Lord, Lord Skelmersdale, raised that point—and we need to discuss with providers and stakeholders how we could make this and other processes work in practice. We do not accept that providers will use their own decision-makers to sanction inappropriately in order to get better results. The same decision-making standards, regulations, safeguards and rights of appeal would apply regardless of whether a decision-maker is located in Jobcentre Plus or in a contracted organisation. We would also ensure that decision-makers receive the training they need to enable them to make decisions properly and with consistency. We have accepted the Delegated Powers Committee recommendation on Clause 15(2) and tabled amendments accordingly. We have already debated these yesterday and, as noble Lords will be aware, this means that regulations made under Clause 15(2) relating to decision-making that could lead to sanctions will be subject to agreement by both Houses of Parliament. There will be a chance for Parliament to scrutinise. I turn now to Amendment No. 77, which would remove the ability of the Secretary of State to authorise providers to supersede decisions. This would mean that while providers could be authorised to take decisions and revise those decisions, they could not supersede those decisions. The effect of that would be that the removal of a sanction would be a slower process requiring additional hand-offs to Jobcentre Plus, and this would clearly not be in the interest of the customer. I turn Amendments Nos. 78 and 80. I fully understand the concerns that noble Lords have raised regarding the training and skills of potential providers. I again hope that I can reassure them as to our intentions. There will already be a need to demonstrate a certain level of skill and experience. One of the criteria on which we will assess a contractor's bid in provider-led Pathways areas will be that they have the experience and skills needed to deliver services properly. I dealt with that in the preceding amendment. In addition, contractors will be assessed in respect of training arrangements for both new and existing staff and on their approach to ensuring year-on-year improvement in performance. We must recognise that in many cases providers actually have greater expertise in these areas than government, particularly when a customer has specialist or complex needs. This is precisely why we want to engage with providers in this way. Providers will also need to put in place diversity training plans, equality and harassment policies—a point particularly focused on by the noble Baroness, Lady Meacher—and, as part of the contract, will need to comply with these policies. In addition, all providers will need to be accredited before any contract is awarded. This accreditation is done by an independent organisation. Momenta will do that for the current Pathways to Work procurement. The accreditation ensures that the provider is compliant with all statutory requirements—for example, health and safety, equal opportunities policy, the Sex Discrimination Act and the Disability Discrimination Act. Amendment No. 80 also includes a power to prescribe that specialist support for customers with specific impairments must be secured before a provider can be authorised to undertake functions under Clause 15. A key principle underpinning provider-led Pathways to Work, on which support under ESA is to be based, is that providers should be flexible in the provision that they deliver and be free to take account of local needs and priorities. Prescribing what support must be available is in direct opposition to this principle. Again, we have dealt with this in the earlier amendment. It would be unreasonable to ask providers to ignore the highest priorities in their local areas to concentrate on those with specific conditions that we prescribe nationally. We would also be in danger of creating a league table of health conditions where, however good our intentions, priority will be given to some customers before others. That would simply create the cherry-picking that we are all keen to avoid. As regards Amendment No. 79, Clause 15(7) provides that in most cases any act or omission of contractors in carrying out functions is to be treated for all purposes as an act done or omitted by the Secretary of State. That means that the Secretary of State remains responsible for ensuring that these functions are carried out in a way that is compatible with the Disability Discrimination Act and disability equality duty. For example, Pathways contracts will have clauses that prohibit discrimination and harassment on grounds of disability, among others. The Pathways specification will also require providers to provide reasonable adjustments, to ensure customers can participate fully, and to promote equality of opportunity. We are currently reviewing and updating the Pathways contracts to ensure that providers are specifically bound to have regard to the individual strands within the disability equality duty in providing their services. Amendment No. 81 seeks to ensure that providers give us management information broken down by impairment. The amendment is unnecessary. We would already collect information about job entries, sustained outcomes and who has started work-related activity. That will be done as a part of the funding and payment arrangements. Jobcentre Plus will also hold data on the medical condition of customers and, as part of the evaluation and monitoring of provider-led Pathways to Work, we will be able to break down outcome information by condition.