Welfare Reform Bill

moved Amendment No. 76: 76: Clause 15 , page 12, line 39, after ““function”” insert ““, excluding sanctions,”” The noble Lord said: In moving AmendmentNo. 76 I shall speak also to Amendments Nos. 77 to 81. I am slightly surprised that this grouping exists, but I was not in a position to object to it and perhaps the noble Lord, Lord Oakeshott, will explain. I should like to add to the concerns I expressed on the previous amendments and concentrate this time on the contracting-out of sanctioning powers. This is the most controversial aspect of the clause and the one that potentially could have the most damaging effect not only on the success of the ESA in getting people back into work, but also on claimants themselves. Lobby groups have been concerned that this policy will endanger the relationship that builds up between an organisation providing support and advice and a claimant. That relationship of trust is obviously of the greatest importance. Do the Government not feel that by empowering one organisation both to provide the advice and support claimants need to move towards employment and to authorise sanctions that will reduce their benefits, they will be setting up a conflict of interest in this area? Since I prepared my notes on this amendment, I have discovered that in fact the sanctions are only to be imposed having been, as it were, authorised by a delegation of the Secretary of State and not to the individual contractors. Perhaps the noble Lord will confirm that that is correct. It is only fair to point out that we have also received representations from many non-profit organisations and so forth which welcome the inclusion of these powers in their contracts as they believe that they will be given more options to motivate claimants who might otherwise not take the necessary steps towards employment. However, there are undoubtedly still questions remaining. How will the decision to impose sanctions be taken? Will it be made in the contracted organisation? Again, as I have just said, I suspect not. Or will the contractors need to refer to a decision-maker such as in the assessment phase? If the organisations themselves have the power to apply sanctions themselves—in other words, that I am wrong in the theory I have just advanced—will there be outside assessment of the consistency and appropriateness of their decisions? We need to see quite a lot more information on this area and other issues of contracting before we can pronounce ourselves truly satisfied with the safeguards that the Government are implementing. I hope that the Minister will provide this advice before the Report stage so that the debate can move on. I beg to move.