Briefing for MPs attending and speaking in the Backbench debate on disability and the economy
Where and when
1.30 pm to 4.30 pm on Thursday February 22nd 2018 in the main chamber of Parliament.
Significance of the debate
This is the first debate focusing on how our economy may become inclusive to the fullest participation of disabled people instead of simply debating their entitlement to health-related benefits. There may not be a vote but the MPs will not be whipped to vote along party lines so the motion debated will allow for the whole house to express its view on this important matter.
The motion to be debated
ThatthisHousehas recognises the potential talent pool within the disabled community; notesthatthere will be an employment gap after the United Kingdom leave the European Union andthatthere is ample opportunity to include disabled workers in economic growth;thismotion therefore calls on the Government to act immediately on its commitment to get one million more disabled people into employment by 2027; and further calls on the Government to increase awareness within the business community of the benefits of employing an inclusive workforce.
Key imperatives for new policy interventions
The DWP Command Paper “Improving Lives” of November 30th 2017referred to there being 3.7 million economically inactive disabled people. The Government set itself a target of moving one million of these people into work by 2027. According to the Command Paper, ill-health among working-age people costs the UK economy £100 billion each year, and getting just 1% of ESA customers into work would save the Exchequer £240 million, with an even bigger boost to the economy of £260 million.
As of October 2017 the Tier 2 occupation list produced by the UK Government indicated a skills shortage in 32 areas of the economy.The uncertainties following the referendum to leave the European union are leaving to more people either opting not to come to the UK or to return home.Research by KPMG found the around half of EU nationals with Masters degrees or PhDs were planning to leave after Brexit or were actively considering it. The Head of Brexit at KPMG went on to say that the “survey reveals a serious situation for employers relying on EU staff, particularly those who employ independent, in-demand, educated and younger workers.”
Crucially disabled people are statistically more likely to be in poverty than non-disabled. The Joseph Rowntree Report of 2016 focusing on UK poverty found that half of all households in poverty had a disabled person living within them. Work is obviously an important step in escaping poverty and being able to provide for oneself.
Disabled people and those with long term health conditions require the safety net of an adequate income when disability or long term health condition prevents them from working, accessible environments, transport and workplaces in which to work, a framework of enforceable rights for them to argue for their position in life and challenge discrimination and an inclusive economy open to their talents and attributes.
The history of labour market activation policies has been characterised by tackling perceived disincentives in the benefits system rather than the lack of incentives in back to work support or in government support to industry, commerce or the creation of new markets.
The tendency has been for disabled people to face conditionality and sanctions and for employers to be offered voluntary schemes such as the “Two ticks” or “Disability Confident” schemes.Disability Confident was launched by the then Prime Minister David Cameron in the summer of 2012 and there has been no evaluation of the scheme. DWP’s own media releases document few if any job outcomes and this has been confirmed in answers to parliamentary questions. The poor performance of Disability Confident can be attributed in the main to the fact that it measures the process of recruitment and not outcomes and there are almost no incentives in the scheme e.g. more points in the scoring of tenders. At present, it is even possible to be accredited as being disability confident to the highest level without employing a single disabled person.
Key research recommendations
In December 2016 the All Party Parliamentary Group on Disability produced a report called “Ahead of the Arc” which examined the elements of an inclusive economy. The report can be read via the following weblink:
The report called for the co-creation and achievement of the one million target through:
Tailored and targeted support to self-employed disabled people e.g. from the Business Bank
Funding for reasonable adjustments for disabled recipients of tech start up support from Innovate UK
Government to use its support for trade association to require them to bring forward plans for recruiting disabled people in their sectors
Government use its support to growth sectors of the economy e.g. its manifesto stated tax breaks for the creative industry sector to require them to increase the proportions of disabled people within their work forces
Government to use its leverage, as the main procurer of goods and services in the economy, to drive accessibility and inclusive recruitment and retention as standard contract clauses for successful tenderers and as an ongoing requirement in supply chain management
Government to use its support for business support organisations such as the Confederation of British Industry or the Federation of Small Businesses to require them to improve business support to their existing or potential disabled members
These policy interventions offer the benefit of the Government obtaining a social dividend from its existing spend and also offer a route by which disabled people’s led organisations could become involved in supporting stakeholders to make adjustments to their current practices.
Permissive legislative landscape
The Equality Act of 2010 (s149) permits positive action address the der- representation of certain groups in the labour market. The Social Value Act of 2012 permits factors other than value for money in the delivery of the contract to be taken into account in deciding the award of the contract. The Treasury Green Book of 2013 sets rules on procurement and permits socio-economic factors such as disability to be taken into account when devising or awarding public sector contracts. Though there is a permissive legislative framework there appear to be few instances of it being used successfully in support of closing the disability employment gap suggesting a need for greater leadership.
The DWP command paper
The DWP Command paper “Improving Lives” restates the overall target but this is not broken down by year, sector or initiative. The white paper dwells upon quandaries it doesn’t resolve: 1) the lack of incentives to employers and 2) the current uneven and often absent provision of occupational health. A consequence of this is that almost everything in the white paper in contingent upon establishing an evidence base, piloting or further research.
There is reference to baseline auditing of their workforce, to determine the proportion with a disability, by businesses with over 500 staff but this is a voluntary option.
Conclusion
We call upon disabled people and those with a long term health condition to ask their MPs to attend and speak in this debate. Ending disabled people’s exclusion requires ensuring their inclusion. The Government has within its means and existing budgets the leverage on the private sector that can influence not just the creation of jobs but who will get them too.
Contact
Philip J Connolly: Policy and Development Manager, Disability Rights UK,
Telephone number: 07706 643667