Northern Ireland (Welfare Reform) Bill — House of Commons, 2015-11-23
Topic: Social Welfare
Vernon Coaker (Labour, Centre-left): I thank the Minister for opening the Second Reading debate. Let us remind ourselves that the last few months in Northern Ireland have been very difficult. The murders in the summer and the budgetary stalemate on the issue of welfare led to a political crisis with potentially massive consequences for future governance. Months of talks throughout the year, culminating in the last 11 weeks, seemed at times to be going nowhere. So notwithstanding the failure to come to a conclusion on how to deal with the past—to the huge disappointment of all of us, not least the victims —there is huge relief that an agreement has been reached. All those involved— the Secretary of State, the parties, the Irish Government and many, in fact all, Members here—deserve credit for getting us to this point Without an agreement there was the real risk of the collapse of devolution or indeed the return to direct rule, either of which would have been unthinkable. However, that has been avoided and that is why I think the agreement is significant. As part of the agreement on welfare, a consent motion was agreed by the Northern Ireland Assembly to allow us to legislate for welfare reform here at Westminster, with a measure designed to ensure that the reform can take place as soon as possible without further financial penalties to allow stability to return and normal government arrangements to proceed. Of course, welfare reform is devolved to Northern Ireland, but the Assembly has consented to our legislating in this instance We should not forget that the agreement reached has also allowed other very significant measures, aside from welfare reform, to be adopted and other moneys released for the benefit of the people of Northern Ireland: measures such as additional funding to the Police Service of Northern Ireland to combat the continuing terrorist threat, and money and increased efforts to tackle paramilitarism and cross-border crime. I want to highlight the funds for community initiatives such as bringing down the peace walls Today we are being asked to agree primary legislation that will enable the Secretary of State to reform the welfare system to apply the Welfare Reform Act 2012 and welfare aspects of the 2015 Bill to Northern Ireland. We will not oppose this legislation, but let us be clear: we have over recent years opposed much of the Tories’ welfare reform agenda and we will continue to do so. We accept, however, that the agreement does allow Northern Ireland certain welcome exemptions and the ability to mitigate the impact of these cuts. For example, there is the exemption from the bedroom tax and the £585 million to be made available over four years from the block grant to help with that; and to lessen the impact on the working poor, £240 million will be used to relieve the impact of the tax credit cut on the 120,000 families affected by it. That demonstrates clearly that the Tory Government’s welfare cuts, and indeed their austerity programme, are as much a problem for Northern Ireland as they are for any other part of the UK. However, as I said, we support the welfare mitigation measures as they recognise something I believe the rest of the UK understands as well, namely the special and particular circumstances that exist in Northern Ireland. Preserving the principle of parity in social security between Northern Ireland and Britain is more than just a convention. The Good Friday agreement specifically cited social security as an area where parity is normally maintained, and that principle remains important Many of the problems of significant mental illness, long-term worklessness and dependency on sickness and incapacity benefits exist in many parts of England, Wales and Scotland, but we know that Northern Ireland is a society coming out of conflict, so these welfare problems and issues are more complex and must be handled with greater sensitivity. Poverty remains a feature of life for a variety of groups, with a significant number of people in Northern Ireland still living in absolute poverty. Northern Ireland still has the highest disability living allowance claimant rate among working adults at 10.1%, according to the latest figures, whereas the average across Britain is 4.9%. Mental health remains a huge issue, with one in six people affected, and the suicide rate is 70% higher than the UK average. That is why we will not oppose the flexibility in the implementation of the welfare changes that this legislation and subsequent orders will allow Alongside any welfare reform programme there must be a jobs and growth programme. I urge the Secretary of State and the Government to work much more rigorously with the Northern Ireland Executive and business to give such a programme greater urgency. Reforming welfare is more than cutting benefits; it is about training, skills, opportunity and tackling low aspiration and educational underachievement. This has to be recognised, and new programmes are needed as part of increased efforts by the Treasury in regard to how the new National Infrastructure Commission, for example, affects Northern Ireland, the potential consequences of the EU referendum and the impact of poor broadband access. Welfare reform coupled with attention to such aspects would make a much greater difference I will ask the Minister some questions, which may help in his summing up and in future deliberations. First, he set out the timetable for one of the orders, but can he spell out the timetable for the Orders in Council which will follow from this paving legislation and the process that will apply to them in view of the consultation that was asked for and the meetings that he referred to? Secondly, what scope is there for that consultation with respect to these orders? In the Assembly debate on the legislative consent motion, the Minister for Social Development spoke of agreement in principle to the change to the welfare system in Northern Ireland being introduced at Westminster. Will the Minister explain what that agreement in principle means? Thirdly, so that we can all be clear, will he outline which welfare parts of the Welfare Reform and Work Bill this legislative process covers? Fourthly, can he confirm that the plan is that any regulations necessary to implement the Evason group’s recommendations for mitigation will be subject to Assembly scrutiny and approval before they are made in this House This has been a tough road and nobody doubts that, with such a high level of welfare need in Northern Ireland and huge reliance on incapacity benefits, change is needed. As I have said, we will therefore not oppose these measures, but change in Northern Ireland has to reflect its special circumstances. All the parties have sought to convince the Government of this, some would say with much success. However, in Northern Ireland as well as in the rest of the UK, a different Government programme of jobs, growth and investment alongside reform would be of greater benefit This legislation falls at the end of 2016. Will the Minister explain why that date was chosen? Given that sunset clause, let us hope we can all build a secure future in Northern Ireland so that we do not find ourselves in yet another crisis in a year’s time. We will not oppose the Bill as the dangers of an agreement not being reached were huge, with potential restoration of direct rule. This has been averted. Northern Ireland’s political institutions are stabilised, notwithstanding the continuing debate, so let us ensure that as the UK Government work with the Irish Government and all the parties, we continue to support the building of a peaceful Northern Ireland where there is prosperity, fairness and opportunity for all. That has to be our continuing task.