Proceeding contribution from David Laws (Liberal Democrat) in the House of Commons on Tuesday, 22 November 2005. It occurred during Opposition day on Welfare Reform and Incapacity Benefit.
Welfare Reform and Incapacity Benefit
I agree precisely on that point. One of the challenges for the Government, and for all political parties, is to simplify the tax and benefits system. A couple of weeks ago, a person came to one of my advice centres from whom a total of between £4,000 and £5,000 in tax credits was being reclaimed. He had learning difficulties, and had been put in a work placement. He had no understanding of how the tax credits system worked, and was therefore facing a very unfair recovery process. Moreover, Government policy is very ambiguous about whether he would be required to repay that money. Finally, I turn to the question of incapacity benefit reform. We welcome the Government’s intention to look at the matter seriously. Over the past 20 years, there has been a turnaround in the number of people on unemployment benefit and incapacity benefit. In the early 1980s, between 2 million and 3 million people claimed unemployment benefit, and very many fewer claimed incapacity benefit. The change since then has been enormous, and the number of people on incapacity benefit is now between 2.6 million and 2.7 million. Clearly, that is extremely wasteful for the economy, but it is often very undesirable for the people involved as well. As the right hon. and learned Member for Kensington and Chelsea noted, the Government have said for eight years that a million people on incapacity benefit want to get back into employment. The fact that that figure of a million people has been used year after year underlines the lack of an effective policy so far to change the system. We believe that the Pathways process helps people to get back into employment. I have visited the Pathways centre in my Yeovil constituency and it seems to be working well so far, although relevant statistics are fairly modest, as the system has been in operation for only a limited period. However, we hope that the Secretary of State will be willing to fund the Pathways process across the country, and that he will not come under pressure to deliver savings in a way that could damage incapacity benefit reform. Such savings might be achieved by time limiting payments or by turning a portion of the payments into vouchers, but they would hit a very vulnerable group of people. Although some people on incapacity benefit would like to work, are capable of doing so and would be helped by the Pathways process, I hope that the Secretary of State has got the message that some very vulnerable people—whose conditions are often difficult to detect—are very worried about the proposals that the Government might bring forward. They are keen to get an assurance that their position and vulnerability will not be threatened by a precipitate attempt to secure savings to fund the Pathways process. By the time that we next have the opportunity to debate welfare reform, I hope that the Government will have given us policies of more substance than has been the case over the past six months.
Secondary information
- Type
- Proceeding contribution
- Reference
- 439 c1417-8
- Session
- 2005-06
- Chamber / Committee
- House of Commons chamber
- Subjects
- Benefits rules Eligibility Incapacity benefit Social security Social security benefits Reform Pathways to work programme
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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