Last week the BBC announced that James Purnell, the former Labour Secretary of State for Work and Pensions, has been appointed as director of strategy and digital on a salary of £295,000. This is not the first time that Purnell has worked for the BBC. Before entering frontline politics, he worked as head of corporate planning for the corporation between 1995-97.
Although once tipped as a future Labour Prime Minister, Purnell was remarkably gaffe prone. He often lacked political judgement and seemed to like controversy. One two separate occasions he lost both his ministerial red box as well as his wallet. He resigned from the government in June 2009 after criticising Gordon Brown's leadership and after trying to precipitate a revolt, against his leadership, by disgruntled Blairites. In 2010, just before the general election, he announced that he was standing down as the MP for the constituency of Stalybridge and Hyde, a seat that he'd inherited in 2001, from Tom Pendry (Lab) which had a 14,000 majority. He left his successor, Jonathan Reynolds (Lab), defending a marginal with a 2,744 majority.
As the Secretary of State for Work and Pensions (2006-07), he was responsible for introducing both modern-day slavery to Britain with his work-for-your-dole schemes and also the discredited Employment and Support Allowance (ESA), with its stricter work capability assessments. He also signed off a proposal to charge benefit claimants 27.8 % APR on a social fund loan which had been interest free. At the time, Purnell said that it would help the poor to budget. The proposal failed to get adopted because of cross-party opposition to it in Parliament.
The Unite sponsored MP, also became embroiled in the parliamentary expenses scandal. It was revealed in the press that while drawing a ministerial salary of over £144,000, Purnell had been claiming the maximum food allowance of £400 p.m. He also claimed from the taxpayer, expenses for flowers, fridge magnets, books, camera equipment, rates, rent, and advice from tax advisers. He also avoided paying capital gains tax by switching homes.
Since leaving Parliament, Purnell has been employed as a senior adviser with the Boston Consulting Group and he's the Chairman of the Trustees for Public Policy Research. In 2011, the unmarried former MP, applied for, but failed to get, the job as Chairman of Save the Children UK.
Some people have criticised the BBC and the incoming director general, Tony Hall, for appointing Purnell in what they see as a politically contrived appointment. Although some would argue that Purnell has been a political failure, there is no doubt, that he continues to retain influential political friends and it is this, which makes Purnell, marketable. No doubt the BBC, are also betting that the next government will be a Labour one.
An economist who helped to design the Employment and Support Allowance (ESA), which was introduced (by former Work and Pensions Secretary,James Purnell)to replace Incapacity Benefit in October 2008, has warned that the scheme is in danger of collapse unless radical reforms are implemented.
In a recent report by The Times newspaper, Professor Paul Gregg, an economist at the University of Bristol, says that the government should suspend plans to move 2.5 million Incapacity Benefit claimants on to ESA in October because serious errors need to be rectified. Professor Gregg told the paper:
"To go ahead with these problems is not just ridiculous, it is in fact scary." He added: "Introducing the ESA system for new claimants in 2008 was effectively a pilot, and all the signals from the pilot are that a lot of adjustments need to be made. There are serious problems with putting people who failed the test but still have serious health issues straight on to Jobseeker`s allowance, where there is no special help."
Since October 2008, all new claimants who suffer from ill health, have had to apply for ESA which includes a stricter medical test. More than two-thirds of applicants are failing in their claims. On average only 5% of claimants are deemed unfit for work and eligible for the ESA. A further 13% are referred for "work-related activity" but are still able to claim ESA, while 39% are judged fit for work, and the rest do not pursue their claims. Under the new rules, many claimants have been deemed fit for work while suffering from Parkinson`s Disease, Cancer and Multiple Sclerosis. In one case, which The Times referred to, a woman who could barely walk or breathe was judged fit for work just five months before she died of lung cancer.
The new medical tests (50,000 a month) are being undertaken by doctors and nurses employed by Atos Healthcare, a private company. On average it finds that only 5% of claimants are unfit to work. However, around 8,000 people a month are now appealing against these decisions at the tribunals and almost half are winning their cases.
In October 2009, a Manchester GP, Dr. Tim Greenaway, wrote to The Guardian about three of his patients who had all been refused ESA. One patient was psychotic, another patient who had been tortured in Iran suffered from post-tramatic stress disorder, and another patient was an alcoholic. In his view none of them were fit for work, but as he pointed out, the Department of Work & Pensions, no longer asks GP`s for their opinion.
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