UK Parliament / Open data

Welfare Reform and Work Bill

Proceeding contribution from Lord McKenzie of Luton (Labour) in the House of Lords on Wednesday, 27 January 2016. It occurred during Debate on bills on Welfare Reform and Work Bill.

My Lords, we have added our names to Amendments 41 and 44. Yet again, we have heard compelling arguments why Clauses 13 and 14 should be removed from the Bill.

I should say, compelling arguments bar one—I say to the noble Lord, Lord Lansley, that if we pass these amendments today it is not tantamount to leaving things as they are. The task from now on in is to do something the Government have genuinely started to do: to look at and tackle the barriers that disabled people face when they are trying to get into work. Surely that should continue and accelerate if the closing of the disability employment gap is to be achieved. I think the noble Lord said it was axiomatic that the bigger the gap between income in work and income out of work, the bigger the incentive. If the noble Lord thinks about it, if you took that argument to its logical conclusion, you would not have any benefits at all, and that cannot be right.

The noble Lord, Lord Low, took us through some of the detail of the report: the hardship that these changes would cause; that somehow recouping the benefit by a few hours’ work simply is not practical for people who have been assessed as not fit for work; and the need to tackle the barriers to work, which was a strong strand of that report. The noble Baroness, Lady Manzoor, made a very strong point when she said that we are doing this the wrong way round: we are cutting the benefit without addressing the issues that need to be addressed to help people into work.

The noble Baroness, Lady Meacher, reminded us that 50% of people with a mental health condition are in the WRAG. She raised the issue of people with

progressive conditions—how on earth can we expect such individuals to access work? My noble friend Lady Lister, and the noble Baronesses, Lady Grey-Thompson and Lady Thomas, focused on the impact of Clause 14 and some of the extremely disagreeable consequences that could flow for people in work under universal credit. As has been said, that simply cannot be what the Government intended.

The right reverend Prelate the Bishop of St Albans reminded us that the disability employment gap is a stubborn one and we need to address it not in a generic way but in an individual, focused way. The noble Baroness, Lady Campbell, gave us just a glimpse of what the cuts to ESA will mean for people, pointing out that the extra expenses for disabled people are rising and are not effectively covered by DLA and PIP. The noble Baroness, Lady Hollins, focused on those people whom it has been particularly difficult to help into work—those with learning disabilities. These are fundamental parts of the analysis that underpins why these amendments are so important and why we should not allow these provisions to stay in the Bill.

Of course, the arguments have come not only from noble Lords today and in Committee but from a range of organisations that work day in, day out, with the very disabled people whom these clauses will hurt. Since Committee we have had more time to absorb the report, Halving the Gap, produced by the noble Lord, Lord Low, together with the noble Baronesses, Lady Meacher and Lady Grey-Thompson, which reviewed the Government’s proposals. The report could not have been clearer in concluding that,

“there is no relevant evidence setting out a convincing case that the ESA WRAG payment acts as a financial disincentive to claimants moving towards work, or that reducing the payment would incentivise people to seek work”.

Indeed, as we have heard, there are concerns that reducing the WRAG component would have the opposite effect and push people further away from the labour market. This is why we support Amendments 41 and 44. Frankly, we do not take lightly the prospect of removing whole sections of proposed legislation, but it would be no more significant than the effect these clauses will have on hundreds and thousands of disabled people.

5.45 pm

The positive benefits of work—good work—on individuals and families is not in question but the fundamental issue is that people in the WRAG have been assessed as not fit for work. Yes, they should be expected to move closer to the job market where they can, but this requires that they be supported in a way which recognises the individual barriers they face and the help they need. This was another clear message from the report of the noble Lord, Lord Low. I thought that even the Government had accepted that current support programmes are inadequate if progress on halving the disability employment gap is to be achieved.

It seems to us that there is something inherently cruel in seeking to push disabled people into work by reducing their financial support without addressing the fundamental reasons why they are out of work in the first place, and why accessing the labour market

can be so challenging for them. The reason for extra support being given in the first place is that we recognise that they are likely to be unemployed for a longer period than those receiving JSA. We should also recognise that for many disabled people, the current strains of daily living involve extra costs—they are not all in receipt of DLA or PIP—and that the fear of losing the WRAC is creating stress and anxiety among many. The case has been overwhelmingly well made today and we will support these amendments in the Lobby, if that is where the noble Lord, Lord Low, takes us.

About this proceeding contribution

Reference

768 cc1313-5 

Session

2015-16

Chamber / Committee

House of Lords chamber
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