The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
The independent living fund (ILF) was created in 1988 when direct payments could not be made by local authorities and there was very limited choice and control available for disabled people within the mainstream system. Since its inception the ILF has played a valuable role in demonstrating that disabled people, including those with complex care needs, could and should be able to purchase their own support using direct cash payments. The Government wish to pay tribute to the current and previous boards of trustees as well as the ILF staff for developing a model of support based around choice and control and the principle of independent living.
However, the care system has undergone fundamental reform since the creation of the ILF. Since the mid-1990s disabled people have been able to receive direct payments and can now exercise enhanced choice and control through the mainstream system in all parts of the UK.
In December 2010, following a suspension to new applications, the Government announced that the fund would be permanently closed to new applications. The Government also committed to protecting user funding for the rest of this parliament and consulting on how users would be supported after 2015.
On 12 October 2012 the Government completed this consultation which received around 2,000 responses. The consultation asked for comments on the proposal to close the ILF in 2015 and devolve funding to local government in England and the devolved Administrations in Scotland and Wales. It also asked how this transition could be managed effectively if this proposal was adopted. The Government response to the consultation will be published later today.
It is clear from the responses to the consultation that the prospect of the ILF closing is causing current users anxiety, and that the fund has played a really important role in the lives of users and their families. But we also heard that the ILF has had its problems, that the current arrangement is unsustainable and that local authorities face challenges in supporting disabled people in a consistent and equitable manner given the complex way in which ILF funding interacts with local authority funding for each user.
We have considered all views carefully and, while I understand user concerns, I do not think the current situation is sustainable. Our commitment to maintaining current awards until 2015 remains, but on 31 March 2015 the ILF will close, and from that point local authorities in England, in line with their statutory responsibilities, will have sole responsibility for meeting the eligible care and support needs of current ILF users. The devolved Administrations in Scotland, Wales and Northern Ireland will determine how ILF users in each of those parts of the UK are supported within their distinct care and support systems. Funding will be devolved to each local authority and to the devolved Administrations on the basis of the pattern of expenditure in 2014-15.
To ensure a smooth transition the Government and the ILF will be working with the social care sector in England to produce a code of practice to guide local authorities on how ILF users can be supported through the transition. I expect that the devolved Administrations in Scotland, Wales and Northern Ireland will engage with the ILF to develop processes and guidance reflecting the distinct approaches to care and support in those parts of the UK.
The ILF will also be conducting a transfer review programme over the next two years which will ensure that the details of the care arrangements are captured and shared with their local authority and help those users not currently receiving any local authority funding to engage with the mainstream care system so they can access the services they are eligible for.
The ILF will now begin an intensive and ongoing programme of engagement with users and key stakeholders on how the transition process will work. Users can expect clear and ongoing communication throughout the next two years and through the transition process.
I would be pleased to meet Members from both sides of this House to discuss how ILF users in their area can be successfully transitioned to receiving support solely from the mainstream care and support system administered by local authorities.