Yes; I thought that I had made that clear—that the intention is to focus on the people with longer-term difficulties. So, yes, the intention is that it will be those people.
This measure means that many people who make a new claim for jobseeker’s allowance and ESA will see a reduction in their first benefit payment. However, we have measures in place through exemptions and the offer of advances and signposting advice to ensure that claimants who are most in need will continue to be protected.
I hope that I can pick up all the points that have been raised. On the point raised by my noble friends Lord Kirkwood and Lady Thomas on the exemption of ESA claimants, if there had been a differentiation between the two types of claimant there would have been a perverse incentive for people to self-certify sickness for a week and claim ESA rather than JSA in
order to get an additional four days’ benefit. There is no evidence that ESA claimants are at greater risk of financial hardship than JSA claimants. Furthermore, to exempt ESA claimants to make that differentiation would be inconsistent with future proposals for universal credit, where our intention is that all ESA-type claimants will be placed in the all work-related requirements group and therefore subject to waiting days. Clearly, waiting days themselves have been a feature of ESA since its introduction in 2008. This measure has simply extended that existing provision for those who do not qualify for an exemption.
The point that my noble friend made about exempting vulnerable groups is clearly one into which we put a lot of consideration, particularly around care leavers, sufferers of domestic violence and ex-prisoners. Bluntly, they were exempted on grounds of practicability. It would have introduced an unworkable, three-tier system and these groups are already required to serve three waiting days, so the only other option would be a full exemption which would go beyond the scope of this change. Despite what my noble friend said about the UC provisions in this line, we are able to make an exemption for these groups in the UC-equivalent provisions. Perhaps that will leave my noble friend somewhat more relaxed about those.
4.30 pm
My noble friends raised the issue of hardship. Short-term benefits may be available. We are paying more first benefits on time than we used to: it is up to 92%. We can signpost to local welfare provision. We provide financial support to credit unions which are a source of relatively low-cost finance to those who might otherwise be excluded. We are, of course, putting an enormous amount of energy into getting the credit union movement enlarged. Because of the linking rules, many claimants are already exempt and they tend to be the ones in the more vulnerable positions. So 60% of ESA claimants are actually exempt because of the linking rules and the equivalent number of JSA claimants is 30%.
The noble Baroness, Lady Lister, asked about the number of people, when they had their last payments and the state of their savings. Some 70% of JSA claimants are subject to waiting days, 30% having been exempted because of linking rules. Of that 70%, it is estimated that half have been in employment within three months prior to their claim and 30% to be in a benefit with savings of greater than £100. For ESA claimants, 60% of whom are exempt, the equivalent figures are that around half of the other 40% were in paid employment immediately prior to their claim and 38% are estimated to be in a benefit with savings of greater than £100.