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Incapacity Benefit

The Minister for Employment and Welfare Reform (Margaret Hodge): Our successful pathways to work pilots have shown that many people on incapacity benefit can move back into work with the right help and support, which has reinforced our view that labelling people on incapacity benefits as "incapable of work" is wrong and damaging. Our reforms will focus as much on how we can help people back into work as ensuring their entitlement to benefit.

Mr. Goodwill: In the Yorkshire region, there are three times as many people out of work and claiming incapacity benefit as there are people claiming unemployment benefit. In the borough of Scarborough alone, more than 5,600 people are on the sick, which is more than 9 per cent. of the work force. Why does the Minister think that, despite record health spending, there are record levels of incapacity in Yorkshire?

Margaret Hodge: I think that I know the answer to that one: the numbers started rocketing upwards when the hon. Gentleman's party was in government, and the unemployment figures appear to have been massaged during that period. In the nine years in which we have been in government, the number of people starting to claim incapacity benefit has decreased by one third, and, for the first time ever, the total number of people on incapacity benefit has started to fall—the total has decreased by 58,000 in the past year, which is a move in the right direction. Our further reform proposals will provide many people in the hon. Gentleman's constituency with the opportunity to work, which is an opportunity that they did not have under the Conservative Government.
15. Mr. Graham Allen (Nottingham, North) (Lab): whether he plans to permit those on incapacity benefit to undertake voluntary work; and if he will make a statement. The Minister for Employment and Welfare Reform

(Margaret Hodge): People receiving incapacity benefit are already able to undertake voluntary work without affecting their entitlement to benefits, and we do not intend to change the situation when we introduce the new employment and support allowance.

Mr. Allen: As the Minister knows, the city of Nottingham is keen to pursue a city strategy on invalidity and incapacity benefit to get some of the 18,000 people on incapacity benefit back into work. Many people who have been provided with cognitive behaviour therapy, which gives people the morale boost that they need to try to get into work, find their first bridge into work through voluntary work. Will the Minister ensure that people continue not to lose benefit for engaging in voluntary work? Will she also consider giving people who engage in voluntary work a small amount of extra money to encourage them to take the first step on the long road to getting full-time work?

Margaret Hodge: I congratulate my hon. Friend on his work as chair of One Nottingham in tackling some of the issues raised by worklessness in his constituency. My right hon. Friend the Secretary of State, who gets around the country, visited Nottingham on a previous Thursday and Friday, when he was impressed by the ongoing work. My hon. Friend the Member for Nottingham, North (Mr. Allen) is right to stress that undertaking voluntary work is central to building the confidence of people who are locked into dependency on incapacity benefit. The rules are flexible, which enables incapacity benefit claimants to earn some money—for one year, they can earn up to £81 a week—and we constantly reflect on how we can build people's confidence.

Mr. Henry Bellingham (North-West Norfolk) (Con): As the Minister is probably aware, because she knows my constituency quite well, many voluntary groups there rely on volunteers who are on incapacity benefit. Is not there an argument that some of those volunteers should be paid expenses for the work that they do?

Margaret Hodge: I am slightly puzzled by the hon. Gentleman's question. If there is a problem with expenses being paid, he should write to me about it. As I understand it, under the current rules there is no cap at all on the number of hours of voluntary work that those on incapacity benefit can undertake. Clearly, they need to be covered for the expenses that they incur in undertaking that valuable work in their communities.