My Lords, my turn has come—rather sooner than I thought it would. In moving Amendment 50, I will speak to Amendment 53 in my name. I am very grateful to all the noble Lords who have put their names down supporting my amendments.
These amendments would prevent Clauses 13 and 14 coming into place unless the Government can demonstrate to Parliament’s satisfaction that they will achieve what they state—namely, supporting people into work—without having a detrimental impact on people’s financial situation or health. At Second Reading I raised significant concerns about the proposals that I know were shared by many in this House and by Members in the other place, too, including Members in the Minister’s own party. They tabled amendments that were not moved.
What do I see as the problem? Many organisations, including Macmillan Cancer Support, Rethink Mental Illness and Parkinson’s UK, oppose these clauses because of the detrimental impact the changes will have on people who are ill or debilitated by their condition. The changes will mean that from 2017 new claimants will receive the same amount as those on jobseeker’s allowance, meaning they will be £30 a week worse off than under the current system. Those claimants, such as people recovering from cancer, will no longer be entitled to additional financial support in recognition of their illness or disability.
In his response at Second Reading, the Minister pointed out that many people with cancer are, at least initially, placed in the support group and suggested that they will not be affected. I agree; those in the support group will not be affected. However, my concern is not that people will not be supported while they undergo treatment for illness. My concern is for those people who either have moved into the WRAG from the support group once their treatment has finished or do not meet the stricter criteria of the support group and are placed straight into the WRAG. The suggestion that the number of such people is small is not true; the Government’s own estimates suggest that it could be above 5,000. Given the transient nature of the benefit, with people moving in and out of the WRAG, the number of people who will be affected is likely to be much higher. My amendments seek more accurate figures as part of the evidence.
What is also not clear, and which is particularly important for people with cancer, is whether those who are in the support group before April 2017 but then move into the WRAG after April 2017 would be classified as new claimants or whether they would be subject to the cut and be put on to the lower rate of £73.10. I hope the Minister will be able to clarify that. I am sure that he will.
The impact of having cancer does not necessarily end once someone finishes treatment and recovers from its immediate side-effects. Common consequences of treatment include: chronic fatigue; extreme pain; mental health problems, including moderate to severe anxiety or depression and post-traumatic stress disorder; urinary and gastrointestinal problems; speech difficulties; and much more. Many of these problems may emerge some time after treatment and last for months or years. I give the true example of Jim, who was successfully treated for prostate cancer. He said, “I suffer lots of problems with my bladder and colon. Being caught short is a constant worry so I have to live my life aware of this constantly”.
It cannot be right to suggest that people like Jim should be treated in the same was as jobseekers who
are fit and able to work. If the proposals go ahead, people such as those with cancer who may initially go into the support group, but then move into the WRAG when their treatment finishes, will drop from £109 to £73.10 when they move from one group to the other. For many, this is a huge drop, leaving them in a particularly vulnerable situation, and could compromise the progress of their recovery. I urge the Minister to look carefully at this group of people and the impact that the change will have on them before making any changes to the legislation.
Ahead of the election, the Government made a very welcome commitment that their welfare reform programme would be underpinned by a commitment to protect the most vulnerable and the disabled. People recovering from cancers are vulnerable. Some face side-effects, live with the knowledge that their cancer may return and are in need of support. They are not fit to work. The reason that people receive ESA WRAG or the limited capability for work element of universal credit is because they have been judged as having limited capability to work—in other words, they are too ill to work. Cutting someone’s money will do nothing to address this. It will not improve their health. Indeed, if anything, it is likely to make it worse by causing additional stress and anxiety, with added worries about making ends meet financially.
The Minister made a particular effort at Second Reading to highlight the fact that having limited capability to work is not the same as being unable to work. It is my understanding that someone is placed in the WRAG because their capability for work is deemed to be so limited that they cannot reasonably be expected to look for, or engage in, work. That is why they have been deemed eligible for ESA rather than JSA. People on ESA WRAG are simply too ill to work at this point in time. These people need time to recover and a degree of financial support to help their recovery. Cutting people’s benefit levels will not help to support them back to work.
At Second Reading, the Minister referred to an OECD report as evidence for the change. The report stated:
“Financial incentives to work can be improved by either cutting welfare benefit levels, or introducing in-work benefits while leaving benefit levels unchanged”.
However, the report to which the Minister referred looked only at unemployed and inactive individuals, not people who are unable to work due to illness. Indeed, if you were to look at the research on people who have limited capability for work due to illness—as people in the WRAG do—the evidence is very different. For example, a study by researchers at Sheffield Hallam University in 2011 found that cutting benefit levels for those who are unable to work due to illness, or recovering from illness, does not result in more people returning to work. Many people with illnesses and disabilities are significantly worse off as a result. Research by Macmillan, for example, found that people with cancer were, on average, £570 a month worse off because of the financial impact of their diagnosis. Many cancer sufferers struggle to cope financially. There has been recent media coverage of Macmillan research which showed that almost 170,000 people with cancer in the UK cannot celebrate events such as Christmas or a family birthday due to lack of money.
It should be a key principle of the welfare system that those who have worked hard but who find themselves, through no fault of their own, unwell and unable to work for a period—not permanently—will be provided with an adequate safety net. We should not do anything to undermine that principle. It is important to have an assessment of the impact that the changes will have on people’s financial situation and their physical and mental health. Financial pressure will force people to return to work before they are physically and mentally fit enough. I have heard of people affected by cancer who, even on the current amount of money that the WRAG pays, have felt pressured to return to work before they were well enough. This has led to them returning to work too soon, and their health suffering as a result, to the extent that they now need to be in the support group. If this is happening on the current payment rate of £102, I can only imagine what will happen when the payment drops to £73.
Much has been said about the role that work can play in keeping people healthy. I do not doubt for one minute that that is the case. For many people who have been ill, returning to work represents a return to normality and a sign that they are reclaiming their life. Many people talk about the importance of becoming an employee again and being defined by their work status, not their cancer. However—and this is important —that only holds true if the work they return to is right and appropriate for them. It has to be “good work” for them, by which we mean work that is suitable, appropriate and meets the needs of people returning from illness.
Amendments similar to mine were tabled by Conservative Members in the other place and sought to highlight the significant impact that the changes will have. The proposed changes are neither sensible nor morally right. While my amendments seek the evidence to support Clauses 13 and 14, the important point is that people who are recovering from serious illnesses and are not considered fit to work should not be further financially penalised. There is an opportunity here for the Government to demonstrate their commitment to the vulnerable and disabled by rethinking the proposed changes.
As I said at Second Reading, when, in 2012, the Government lost several consecutive votes, the then Bill was converted into a financial privilege measure. I hope that that will not occur now but in 2012, despite the fact that the Bill was converted into a financial privilege measure, the Minister—the noble Lord, Lord Freud—came up trumps and agreed to put people who are vulnerable into the support group. I hope he is minded to do the same this time—that is, help those who are vulnerable and ill. I am sure he will do that and demonstrate that the Government support the vulnerable. I beg to move.
6.15 pm