The Work and Pensions Committee, of which I am a member, has today published our report into benefit sanctions. I have been asking the Government to hold an independent review into sanctions policy for nearly two years and after they refused, I persuaded colleagues on the Select Committee to instigate our own Inquiry.
Our report calls for a full independent review to be established in the new Parliament, to investigate whether benefit sanctions are being applied appropriately, fairly and proportionately, across the Jobcentre Plus network. Labour’s Shadow Work and Pensions Secretary, Rachel Reeves, has today stated that Labour accept in full all the Committee’s recommendations.
In the report we have reiterated our recommendation for a full review, originally made in January 2014 but rejected by the Government, in the light of new evidence which raises concerns about the approach being adopted in a number of individual Jobcentres, and more broadly, including concerns about whether targets for sanctions exist.
The report calls for the independent review also to examine the legislative framework for benefit sanctions policy, to ensure that the basis for sanctioning is well-defined, and that safeguards to protect the vulnerable are clearly set out.
I believe that this report is a step forward in ending the current punitive sanctions regime. Benefit sanctions withhold subsistence-level benefits from people who may have little or no other income.
I am particularly please that the Committee has recommended that hardship payments should be available from day one of a sanction period; that sanctions should be applied fairly and proportionately; that financial sanctions are inappropriate for vulnerable ESA claimants and should stop; that in-work sanctions should not be rolled out; and that there should be an independent body to investigate deaths of claimants.
The report can be read here and more information on some of the specific recommendations is below:-
A system of discretionary hardship payments exists to mitigate the risk of sanctions causing severe financial hardship. However, the Report concludes that changes are required to the system, to ensure that it is more effective in achieving this. In particular, the report emphasises widespread concern that standard JSA hardship payments are not available until the 15th day of a sanction period.
No claimant should have their benefit payment reduced to zero where they are at risk of severe financial hardship, to the extent of not being able to feed themselves or their families, or pay their rent.
DWP’s discretionary hardship payment system is intended to prevent this happening, but it does not always do so. This is often because JSA hardship payments are not available until the 15th day of a sanction period. It is not reasonable to expect people to live without any source of income for 2 weeks. DWP should make all hardship payments available from day one of a sanction period.
Problems also arise because the claimant is not aware of the application process for a hardship payment or because they are put off applying because of the difficulty in understanding and navigating the system. This needs to change. DWP should not wait for the claimant to apply for a hardship payment. It should initiate the process itself, and then coordinate the decision on hardship payments with decision-making on the sanction itself, particularly where the claimant has dependent children or is vulnerable.
INVESTIGATING THE DEATHS OF VULNERABLE BENEFIT CLAIMANTS
The report notes that DWP currently investigates all deaths of benefit claimants “where suicide is associated with DWP activity”, and in other cases where the death of a vulnerable benefit claimant is brought to its attention, through a system of internal “peer reviews”. Since February 2012, DWP has carried out 49 peer reviews following the death of a benefit claimant.
DWP has stated that 33 of the 49 cases have resulted in recommendations for change at either local or national level. However, it was unable to confirm in how many cases the claimant was subject to a benefit sanction, or provide any details about how its policies or procedures had been altered in response to the death of a claimant.
The Committee has asked DWP to confirm the number of internal peer reviews in which the claimant was subject to a benefit sanction at the time of death, and the result of these reviews in terms of changes to DWP policy.
It is important that all agencies involved in the provision of public services are scrutinised, to ensure that lessons are learned after members of the public are let down by the system, particularly where the failures of a public body may have contributed to a death. We believe that a new independent body should be established to fulfil this role.
INCREASING THE EVIDENCE BASE ON FINANCIAL SANCTIONS
The Committee finds that more “active” regimes, in which unemployed claimants are required to do more to find work, have been shown to be relatively effective; however, evidence on the specific part by played by financial sanctions within successful active regimes is limited and far from clear-cut. The report calls for a series of evaluations to increase the evidence base, particularly around the efficacy and impacts of the new sanctions regime introduced by the Welfare Reform Act 2012.
The Government introduced longer minimum sanction periods without first testing their likely impacts on claimants. The minimum sanction period is now four weeks, rather than one week. It is important that the impacts of the new sanctions regime are properly evaluated.
There is currently no evidence on whether the application, or deterrent threat, of a four-week sanction makes it more, or less, likely that a claimant will engage with employment support or gain work.
This is an area of policy which must be based on robust evidence. The Department needs to demonstrate that the application of the new sanctions regime is not intended to be purely punitive.
FULL IMPLEMENTATION OF THE OAKLEY REVIEW
The Oakley Review of Jobseekers Allowance (JSA) sanctions in relation to Back to Work Schemes, published in July 2014, made a number of recommendations aimed at improving some aspects of the sanctions system. This has already led to welcome changes, including improvements to DWP’s information to claimants about the sanctioning process, and the clarity of its claimant letters.
However, a number of the Oakley recommendations are yet to be fully implemented, in part due to the requirement for legislative change and/or contractual negotiations with Work Programme providers. The Committee believes that DWP should take more urgent steps to fully implement the outstanding recommendations.
DWP must take a more common-sense approach to mandatory Work Programme activity and sanction referrals. For example, it makes no sense, and is a considerable waste of administrative resources, for Work Programme providers to have to refer a claimant back to DWP for a sanction decision, even where they know that the claimant had a perfectly good reason for not meeting a particular requirement.
In the negotiations to re-let the Work Programme contracts in 2017, DWP should prioritise the development of a more flexible approach to the setting of mandatory conditions.
There is also widespread support for pre-sanction written warnings and non-financial sanctions. The Department should get on with piloting this approach. If it requires legislation, the Department should bring it forward as soon as possible in the new Parliament.”
The report makes a number of further recommendations, including that DWP should:
• Not proceed with in-work sanctions beyond the existing pilot areas until robust evidence is available from the pilots to demonstrate that in-work conditionality can be effectively applied. [para 56]
• Establish a small-scale pilot to test the efficacy of a more targeted approach to sanctions based on segmentation of claimants by their attitudes and motivations. [para 93]
• Develop new and more effective systems to monitor the destinations of claimants leaving benefit in general and, in particular, those leaving benefit following a sanction. [para 66]
• Expedite the evaluation of the Claimant Commitment, including a review of the appropriate use of Jobseeker Directions. [paras 74 and 84]
• Develop guidance which is specifically intended to assist JCP staff to identify vulnerable claimants and tailor conditionality according to the claimant’s individual circumstances. [para 80]
• Improve JCP staff training on the statutory single parent flexibilities designed to protect single parent JSA claimants from inappropriate benefit conditionality; and produce a simple, plain English guide to the flexibilities for all single parent claimants. [para 88]
• Review Employment and Support Allowance (ESA) sanctioning within the Work Programme, and continue to develop alternative approaches to employment support for this group, including voluntary models, such as Individual Placement with Support, for some groups. [paras 134–35]