Grayling turns spotlight back on to ‘fit to work’ claimants

The Department of Work and Pensions (DWP) has said three quarters of people who apply for the new sickness benefit have been found to be fit to work or have dropped their claim.

Of the 1,175,700 applicants for employment and support allowance (ESA), 458,500 – 39 per cent – were judged fit to work while a further 428,800 – 36 per cent – abandoned their claim before their medical assessment had been completed, according to new DWP figures.

The figures cover the period from 27 October 2008, when Labour introduced the ESA to replace the old incapacity benefit, to 31 August 2010.

Employment Minister Chris Grayling said they underlined the need to reassess people who are still on the old incapacity benefit – a process the Government began last month.

Mr Grayling said: “Once again we have clear evidence of the need for change in our welfare system.

“We now know very clearly that the vast majority of new claimants for sickness benefits are in fact able to return to work. That’s why we are turning our attention to existing claimants, who were simply abandoned on benefits.

Once again we have clear evidence of the need for change in our welfare system. Chris Grayling, Employment Minister

“That’s why we are reassessing all of those claimants, and launching the work programme to provide specialist back-to-work support.”

Channel 4 News’s FactCheck blog reported earlier this month that many people found to be ineligible for ESA after completing a controversial test called the Work Capability Assessment successfully appeal against the decision.

DWP figures from October 2008 and November 2009 show that one-third of people judged unfit for work have already taken an appeal to the Tribunals Service and 40 per cent of those initially judged to be fit for work have that assessment overturned on appeal.

The Citizens Advice Bureau told Channel 4 News the percentage is even higher when appellants have an advocate speak on their behalf.

A spokesman said: “Citizens Advice don’t hold national figures for success rates at ESA tribunals but understand from bureaux that generally success rates are between 70 and 90 per cent.

Read more - FactCheck: The Work Programme - a work in progress

“They point out that people who have not had advice may misunderstand what sort of medical evidence is needed and therefore lose, even when they have a good case.”

The DWP released the figures a day after Mr Grayling rejected Labour accusations of sleaze surrounding the awarding of welfare-to-work contracts to private suppliers.

Labour MP John Robertson has written to David Cameron and the Cabinet Secretary, Gus O’Donnell, expressing “grave doubts” about whether Mr Grayling had adhered to the ministerial code when he announced the successful bidders for the Work Programme scheme.

One of the biggest winners, Ingeus Deloitte, is part-owned by the accounting and consulting firm Deloitte, which donated £27,978 in kind to Mr Grayling through a staff secondment to his office in 2009.

People who have not had advice may misunderstand what medical evidence is needed and therefore lose, even when they have a good case. Citizens Advice Bureau spokesperson

The Department of Work and Pensions said no money had changed hands but Deloitte had provided Mr Grayling with the services of one of its management consultants when he was in opposition, and paid the staff member themselves.

Last year Deloitte analysts predicted that third-party suppliers would make up 44 per cent of total Government spending on the public sector by 2014/15 and identified “significant opportunities coming to market” thanks to “the shift to the Big Society”.

A DWP spokesman told Channel 4 News Mr Grayling was not personally involved in the decision to award 23 per cent of the Work Programme contracts to Ingeus Deloitte and there was no question of a conflict of interest.

She added that none of the civil servants who did make the decision were close to Ingeus UK’s CEO Dean James, a former senior official at the department.

She said: “None of the senior managers who signed off the procurement worked for, or were sufficiently close to, Dean James to have been of concern.

“All commercial decisions were made through a clear governance process and the evaluation was conducted in accordance with our disclosed process. Our processes our in accordance with best practice across public sector procurement.

“The procurement was undertaken by qualified (CIPS) and experienced procurement professionals. There was extensive internal and external assurance exercises undertaken throughout the procurement process.”