New Clause 14
Welfare Reform Bill
Public Bill Committees, 31 October 2006, 9:45 pm

Jim Murphy (Minister of State (Work), Department for Work and Pensions; Renfrewshire East, Labour)
Remarkable progress is being made. I shall respond, hopefully in a similar tone to that of the hon. Gentleman when he raised his genuine point. As he knows, there is a greater propensity and likelihood of continued poverty among those who are assessed to be in the support group. That is the major reason why we anticipate having two tiers of benefit payment on the basis that it would provide a degree of financial support to those in the support group that otherwise would be missing.
Customers in receipt of incapacity benefit can undertake part-time work up to a maximum of16 hours a week and earnings must not exceed £86 a week. We intend to carry forward similar permitted work provisions for the employment and support allowance. I recognise that there may be people in the support group who are able to work in excess of the 16-hour limit. The fact that someone on the support group is able to work is not of itself a reason why he or she should be removed from the support group. A PCA would assess whether someone should still be in the support group. It is important to get that across when we try to encourage those in the support group who wish to work to have the chance to do so.
The 16-hour limit is there for two reasons. First, it is there to make a distinction between allowing part-time work while on benefit as a stepping stone to independence and to top up earnings. Secondly, 16 hours is the recognised boundary between the out-of-work benefits system and the in-work tax credits system. We do not need the power in the Bill to do what the hon. Gentleman wishes to do. We have the powers to be flexible in this sort of area already. We are looking at ways to continue to be flexible and to improve the permitted work rules.
