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Welfare Reform Bill

I am grateful to you for that guidance, Mr. Deputy Speaker. It is remarkable how quickly we slip into the jargon of our portfolios. The only trouble is that removing all the initials will probably double the length of the debate. JSA is the jobseeker’s allowance and ESA is the employment and support allowance. If it were possible to get somebody on to the assessment stage of ESA during the statutory sick pay period, that would be sufficiently attractive to the individual for this to be an entirely voluntary programme. I simply want to float this idea to the Minister and ask whether the Department is considering that, and if not, whether he would be prepared to do so, because from all the work that we have done it seems to be the key to addressing the problem, at least for the group of people who go from work on to long-term incapacity payments. Many other issues have been raised during the course of the consultation, and they will be probed more fully in Committee. However, I have a couple of other questions to put to the Minister in relation to part 1. The DWP five-year plan refers to a further conditional payment for fulfilment of action plans. That seems to have been dropped in favour of work-related activity, which the notes explicitly say could be different from the action plans. It is difficult to understand the point of making an action plan if people will then be allowed to fulfil their obligations by doing something different from what has been written in the action plan, so perhaps the Minister could explain why that pledge has been dropped. I make no apology for having concentrated on the employment and support allowance and the pathways to work programme. The Green Paper made a clear commitment to getting 300,000 lone parents and a million older people back into work. There is nothing specific in the Bill about achieving those targets, and there may not need to be because they may not need legislation, or the legislation may exist elsewhere. We strongly support the proposals, but there is a need for employer education and a change in some employer attitudes. My point in raising that at this stage is to say that while that may not need primary legislation in a DWP Bill, I hope that the DWP is prepared to act as lead supporter for the initiative in government. I am shocked that private and voluntary sector providers of up and running programmes universally say that placing people with the public sector is much more difficult than placing people with the private sector. The Government, as the largest employer in the country, should aspire to lead from the front and be the most flexible and receptive employer to the particular needs of people coming off incapacity benefit, older workers wanting to work flexibly and part time, and lone parents with particular requirements for a particular kind of flexibility in their working life, if they are to get back into work. The changes to housing benefit fall into two parts, the first being greater tenant engagement in achieving value for money. No one could possibly disagree with that. That is a sensible and unbureaucratic way of trying to give people some real responsibility for the consequences of their decisions, and some benefit from making the most appropriate decisions. The second part is the direct payment of rent, and I have some reservations about the wisdom of going down that route. The theory that the Secretary of State outlined is unimpeachable: giving people greater responsibility must in general be a good thing. But housing benefit payments will often be a very significant part of a person’s total income, and some at least of the people who receive those direct payments will succumb, either to temptation or to pressing alternative need, and the consequence will be that they get into debt, into rent arrears, and ultimately perhaps face eviction. The Secretary of State says that the evidence from the pilots does not suggest that, and I know that the full results of the pilots will be published in due course, but what he says is so counterintuitive, and everybody involved in dealing with housing benefit tenants in the housing markets is so surprised by that outcome, that we need to do some more work on that area. On Friday, I visited a homeless drop-in centre in Chester and I asked how many of the people who were being referred on to hostel accommodation were there as a result of having got into rent arrears and having been evicted from private accommodation. The answer was about 50 per cent. one way or another. The manager of that centre gave me an unequivocal assurance that the numbers would go up if a significant number of her clients were to receive direct payment of benefits. I know that there is a provision for local housing authorities to identify people who are at risk and not to make the payments direct to them, but the Minister will know that the guidance notes suggest that local authorities should not in any way be proactive in seeking out people who may be vulnerable in that way, so there is a real problem there that needs to be considered further. It is not a dogmatic point. There is a clear consensus that if we can give people responsibility, we should, but surely to goodness, not at the expense of them getting into rent arrears and debt, and facing possible eviction. When the Minister winds up, will he confirm my understanding that it will not be possible to roll out the new local housing allowances to people who are in existing tenancies? There are practical and technical reasons for that. There is something of a double standard in not rolling out these arrangements to the social sector, and in particular to local authority tenants, where the landlord would be both the payer of the benefit and the receiver of the rent. From a basic economics point of view, there must inevitably be a reaction by landlords to the creation of greater risk for them in the marketplace. If a landlord who has been used to receiving a rent cheque reliably once a fortnight from a local authority, virtually a gilt-edged payment, is now to be invited to receive the rent from the tenant directly when and as he is able to make that payment, over time a premium will be demanded for taking on such tenants. Again, that will be to the disadvantage of the Exchequer if ultimately a two-tier market is created, and a marketplace that at the moment is regarded as attractive by landlords of housing benefit tenants because of the method of payment becomes an unattractive one with premiums and perhaps higher deposits demanded. We remain deeply sceptical about the housing benefit sanctions for antisocial behaviour. We support entirely the taking of the toughest possible stance with those who are guilty of antisocial behaviour, but we have been here before, and the question is being asked whether this is a real threat or just a headline gimmick. If the threat of eviction has failed to change someone’s behaviour, will the threat of losing their housing benefit make the difference? The suggestion that has been put to me is that it is most unlikely in those circumstances that the policy would be effective. Therefore, I am open-minded, but at this stage I am sceptical.