Universal Credit: Benefit Cap and Two Child Limit

Baroness Finlay of Llandaff Excerpts

Tuesday 24th January 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

I will need to write to my noble friend about that issue. I am certain that this system allows for payback whenever possible, but I will certainly look into that.

[Baroness Finlay of Llandaff (CB)]

Can the Minister tell us when the special rules, which have passed through Parliament, will come into force for people caring for a terminally ill person at home, given that the cost of care has gone up quite significantly and that if it is a young parent, some people can find themselves in such poverty that they have to go bankrupt?

[Viscount Younger of Leckie (Con)]

I do not have any information to hand on the future of any legislation, but I will certainly follow up with the noble Baroness and let her know whatever I have.

Financial Guidance and Claims Bill [HL]

Baroness Finlay of Llandaff Excerpts

3rd reading (Minutes of Proceedings): House of Lords
Tuesday 21st November 2017 Lords Chamber

[Baroness Coussins (CB)]

My Lords, I welcome Amendment 1 and remind noble Lords of my interest as president of the Money Advice Trust. The amendment, in clarifying the single financial guidance body’s objectives, will ensure that its services are available to those most in need of them, specifically with the inclusion of the words in proposed new subsection (1)(d), “bearing in mind”, the particular,

“needs of people in vulnerable circumstances”.

As noble Lords heard during our debate on this on Report, there has been a great deal of progress in this area in the financial services industry in recent years, including through the work of the Financial Services Vulnerability Taskforce. It is very good to see that the SFGB should give similar prominence to vulnerability in its work. The explicit inclusion of “vulnerable circumstances” in Amendment 1 is an excellent example of this approach.

I offer my sincere thanks to the Minister for listening so carefully to what I and my noble friends Lady Finlay and Lady Hollins said on this matter at an earlier stage, and for agreeing to reflect this in the Bill. I am very pleased to support Amendment 1.

[Baroness Finlay of Llandaff (CB)]

My Lords, I add my most sincere thanks to those of my noble friend Lady Coussins. This new clause is incredibly important. Yesterday, this was unanimously welcomed at the National Mental Capacity Forum leadership group, including by all those from the financial sector represented in the group, as being a very important way forward to make sure that our society is increasingly integrated and recognises the needs of those with permanent and transient impairments and incapacity, and those who may temporarily have been put in extremely vulnerable circumstances.

I also thank the Minister for the way she has listened and stayed in communication with us as the wording has been developed. It really was a very positive and constructive dialogue.

[Baroness Kramer (LD)]

My Lords, as well as congratulating the Minister on bringing the language of “vulnerable circumstances” to the Bill, I want to congratulate the others who have made this issue so clear during our very positive and engaged debates; namely, the noble Baronesses, Lady Coussins, Lady Finlay and Lady Hollins. When the Minister first put down a slightly earlier draft of the amendment, which reordered some of the opening sections of Clause 2, because I am a naturally suspicious person, I tried to see whether there was some bear trap in there or something that I should be afraid of. I could find no such bear trap—and nor could my colleague, my noble friend Lord Sharkey, who I think now has a reputation for the most incisive examination of language in a Bill. I fully understand the desire of the Government to be clear and transparent—they seem very positive. I shall have more to say about the Bill in later stages—but, with this first grouping, we start off on a rather good note for the opening of Third Reading.

Financial Guidance and Claims Bill [HL]

Baroness Finlay of Llandaff Excerpts

Report: 1st sitting: House of Lords
Tuesday 24th October 2017 Lords Chamber

[Baroness Kramer]

Obviously, we support these amendments. The Government’s argument has always been that this issue will act as a constraint. However, we think it draws attention to the problem and empowers people. One of our great dissatisfactions historically with the provision of financial education and financial capability is that it does not seem to create people who are more financially capable when they need to be. Amendment 10 raises once again the issue of timing and relevance. We are all human beings and we can go through various forms of training but if we then never use those skills or that information but require it 10, 15 or 20 years later, that is the point at which it needs to be recalled rather than having a tick-box exercise to show that at the age of 16 we took a class on those issues. We want this education to be relevant and to underscore the direction that I hope very much the single financial guidance body will want to take, but is by no means required to take, of looking for relevance and at situations where there is critical need, care leavers being one of the most obvious examples of that. We have known for years that care leavers get themselves into enormous trouble because of their lack of awareness of these issues but no body has felt it necessary to step into the breach. Here we have the perfect body to step into the breach. That would be entirely consistent with what it is doing. That is the mood and spirit of these amendments. I hope very much that the Government take the issues on board because were we not to see results that responded to the spirit and meaning behind these amendments, we would have a body that was very suboptimal. I think the House would agree with that.

[Baroness Finlay of Llandaff (CB)]

My Lords, I thank the noble Lord, Lord Stevenson, for his very important comments in introducing these amendments. He has covered some issues that I was going to cover in relation to my amendment, which is next. I wonder whether he feels my amendment covers some of the things he is concerned about, because care leavers are just one group in vulnerable circumstances—we all know that—but there are other groups as well. I have a slight concern that once we start to put lots of different lists in the Bill, somebody will be left out. I will explain why our amendment is worded as it is and I am very grateful for the support from his Benches, but I raise that as a question.

[Lord Young of Cookham]

My Lords, in response to the comments of the noble Lord, Lord Stevenson, about the propulsion available to the co-pilot, it remains the same: the journey may be a little shorter and therefore the destination may be reached more quickly.

Amendments 9 and 10 tabled by the noble Lord, Lord Stevenson, would alter the strategic functional matters relating to financial education. I thank all those who have contributed to this debate for highlighting once again the important issue of financial education. We had a good debate on this issue in Committee and I believe we agreed on both sides that financial education is extremely important at all stages of life—a point made by the noble Baroness, Lady Kramer. A key role of the new body will be to improve people’s financial capability and help them make better financial decisions, and to identify any gaps that there may be at the moment in the provision of such advice and guidance.

The financial education element of the strategic function is targeting a specific area of need, which is to ensure that children and young people are supported at an early age on how to manage their finances, for example, by learning the benefits of budgeting and saving. More specifically, the new body will have a co-ordinating role to match funders with providers of financial education projects and initiatives aimed at children, and will ensure that these are targeted where evidence has shown them to be more effective. This falls within the wider strategic financial capability work of the body and should form part of the national strategy, which we expect it to deliver.

As I explained in Committee, the Money Advice Service has been undertaking that role. It is one aspect that respondents to the Government’s consultations have overwhelmingly agreed it is important for the new body to continue working on. MAS’s work under the financial capability strategy focuses specifically on improving people’s capability, which they need to make key decisions, such as those presented in this amendment. We expect the new body will carry forward and improve the work under the umbrella of the new SFGB. I stress that this does not mean that the new body will not be providing financial education for adults. As I have explained, this is a key role of the body in improving financial capability, as it is for MAS now. For example, MAS currently runs a pilot on adult numeracy with National Numeracy through the What Works Fund. Also, through the work with the Financial Advice Working Group, it is creating a simple portal for employers linking to the MAS website and exploring partnerships for helping employees with money management. Finally, through the financial capability strategy, MAS works with the National Association of Student Money Advisers to test and improve the model for financial education for younger adults. We expect the body to continue and build on work in this space.

Moving to the specific amendments, Amendment 9 would alter this function so that a strategy for the provision of financial education is extended to care leavers. I thank the noble Lord for raising this point. It was also an issue raised by the noble Earl, Lord Listowel, in Committee. As I highlighted to the noble Earl at that point, the Government agree and we expect the new body to consider further initiatives to support care leavers as well as other young people from marginalised backgrounds—for example, those leaving youth detention or those with learning difficulties.

As we heard from the noble Baroness, Lady Finlay, Amendment 11 refers to vulnerable people and I absolutely agree with her: care leavers are vulnerable people. I hope my noble friend will say a little more about how we plan to help vulnerable people, including care leavers, when we debate Amendment 11.

Amendment 10 would make provision specifically for adults contemplating difficult financial decisions, such as mortgages, pensions and vehicle finance plans. As I said in Committee in response to the amendment tabled by the noble Baroness, Lady Kramer, and the noble Lord, Lord Sharkey, this is the role of the SFGB as a whole as it delivers money and pension guidance and debt advice. Also, the strategic function under Clause 2(7)(a) already gives the body a specific responsibility to work to improve the,

“financial capability of members of the public”,

including in these areas. To give the new body a requirement to advise the Secretary of State on explicit issues, worthy as these may be, is unwise. The noble Lord, Lord Stevenson, said that one could either agree or disagree with the point I have just made. I happen to agree with it—he may disagree with it—but there are problems in focusing on specific issues. There are several topics that the body may wish to look into as part of its strategic function and choosing a few could risk limiting its ability to look more widely at the sector and have regard to emerging issues in the future. For those reasons, I hope the noble Lord will withdraw his amendment.

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Moved by

[Baroness Finlay of Llandaff]

11: Clause 2, page 2, line 32, at end insert—
“( ) access to financial services for people in vulnerable circumstances,”

[Baroness Finlay of Llandaff]

My Lords, I am grateful to those who have put their names to Amendment 11: my noble friends Lady Coussins and Lady Hollins, as well as the noble Lord, Lord McKenzie, who addressed these issues in Committee and has been trying to move things forward. I also thank the Minister for meeting me and my noble friend Lady Coussins, for giving so much of her time and paying so much attention to every detail of the arguments that we put to her in that meeting, and for making great efforts to address the points we were making.

I turn specifically to this amendment and the way it is worded. We have used the wording “people in vulnerable circumstances” because people may be permanently deemed vulnerable—such as people with learning difficulties, people who have a permanent speech disorder or those who have difficulty communicating. There are, however, an awful lot more people who have a fluctuating impairment of capacity, either through illness or medication. There are also people who have been coping really well but have something happen to them, such as an acquired brain injury. All find themselves in vulnerable circumstances. To comment again on care leavers’ situation, there is powerful, researched evidence that children who have had four or more adverse childhood experiences are extremely vulnerable to lots of other factors in life, but they, having been in care, are not the only children who are vulnerable. There are a whole lot who were not in care but have had similar adverse childhood experiences and then have a great deal of difficulty handling their adult life and independence, and in responding to things.

Another difficulty now being faced is the closure of some bank branches and the rise of internet banking. People who have a tremor, for example, need assistance, and they may then find that they do not have the privacy they want. The list could go on and on but, one way or another, we would end up including over half the population, to whom things can happen at different times. Everyone in this Chamber must have found that when they are acutely bereaved they are vulnerable for a time. Their thinking is impaired and they cannot cope with some of the decisions they make but they come out of it, and I do not think anyone would label any of your Lordships as having impaired capacity during this debate.

Therefore, our thinking was that improving access to and awareness of financial services for people who find themselves in vulnerable circumstances, whatever those might be, should run right through the core functions. A little like the lettering in Brighton rock, it should go right the way through.

I must declare an interest as chair of the National Mental Capacity Forum. I have been working with banks, building societies and the Equity Release Council, and some of them—I should like to single out the Nationwide Building Society—have done fantastically good work, but there is a need for the whole sector to be taken along. Laws send social messages too. Therefore, I hope the Government will be able to look favourably on the amendment, which is worded to create not a list but a whole philosophy compatible with other legislation, particularly the provisions of the Mental Capacity Act. I beg to move.

[Baroness Coussins (CB)]

My Lords, I have added my name to Amendment 11. I remind noble Lords of my interest as president of the Money Advice Trust, the charity that runs National Debtline and Business Debtline. I echo my noble friend’s thanks to the Minister for meeting us yesterday to discuss the intentions behind the amendment.

My noble friend has laid out the need to address access to financial services for people in vulnerable circumstances. It is also important to acknowledge the work that is already under way in this area—in particular since the FCA’s paper on vulnerability in 2015. Since then, the British Bankers’ Association’s Vulnerability Taskforce has produced a report challenging the industry to improve, and the issue of vulnerability has remained high on the agenda.

All that is of course very welcome but, as my noble friend indicated, the term “vulnerable people” does not necessarily mean the same as “people in vulnerable circumstances”. Very often in the past, “vulnerability” was used interchangeably with mental health issues, yet there is a growing recognition of the need for financial services and other organisations to consider a much wider range of vulnerable circumstances.

As an illustration of that need, the Money Advice Trust provides training for the sector in supporting customers in vulnerable circumstances, and demand has been growing significantly over recent years. The charity has now trained more than 11,000 staff working in more than 160 firms. Increasingly, this training covers areas way beyond mental health, such as supporting customers with addictions or a serious illness, those suffering a bereavement or redundancy, and people contemplating suicide, to give a few examples. Yet many people in vulnerable circumstances are still excluded from financial services and are unable to access the support they need.

The SFGB provides an ideal opportunity to increase the focus on vulnerability through its national strategy. As I said in Committee, the Department for Work and Pensions, as the sponsoring department, could also provide a very useful link between the body’s work and the broader financial inclusion policy agenda.

This amendment seeks to take the good work on vulnerability that is being done by the industry and the voluntary sector and give it an explicit focus on the face of the Bill. I hope that it will receive careful consideration by the Minister or that something very similar that captures the intention of the amendment but is perhaps better worded can be brought forward by the Government at Third Reading.

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I have listened to noble Lords but I want to review, because I do not believe in any event the wording is quite right, nor the way in which it has been placed in the Bill. The body already has an objective to prioritise people most in need. Let us take this issue away, and review and consider it further. On that basis, I very much hope the noble Baroness will feel able to withdraw her amendment.

[Baroness Finlay of Llandaff]

I am most grateful to the Minister, particularly for those final phrases in her speech, and to all noble Lords who have spoken and contributed to an extremely rich debate. It has become evident that this is not just about vulnerable people, but about everybody who can find themselves in a vulnerable circumstance. There should be no stigmatisation of any sort; this could happen to anybody.

The Bill seems to be a good one, aiming to look after the whole population. Of course, it needs to look after people in bad times as well as good. That is the purpose of the amendment: to have better public outcomes, not just when capability can be increased, but when it cannot be, with services then adapting to meet the needs of the people they are there for. That is what a community is all about.

We can go away and look at the wording again, to think about whether it can go somewhere else or be adjusted slightly in the Bill, then come back at Third Reading.

[Lord McKenzie of Luton]

I just want to press the point made by the noble Baroness about Third Reading. If we could come back to it at Third Reading, that would be good.

[Baroness Finlay of Llandaff]

Through being able to come back at Third Reading, we have the assurance that we can tailor the Bill to try to get it absolutely right and to meet all the needs that have been outlined during this rich debate. Because of that, I beg leave to withdraw the amendment.

Amendment 11 withdrawn.

Financial Guidance and Claims Bill [HL]

Baroness Finlay of Llandaff Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Wednesday 6th September 2017 Lords Chamber

[The Earl of Listowel (CB)]

My Lords, I offer my support for these amendments in considering the particular needs of young people in care and leaving care. Most young people leaving care do so by the age of 18—many are still under that age—and they have to run their financial lives. There is a duty on the local authority to provide support but many of them are plunged, too early in their lives, into the sorts of responsibilities that such education would help them to deal with more effectively. Half of children from run-of-the-mill families are still with their parents up to the age of 20, so I can see particular benefit from these amendments for vulnerable young people who may have to look after themselves very early in their lives.

[Baroness Finlay of Llandaff (CB)]

My Lords, first, I declare my interest as chair of the National Mental Capacity Forum. I join in the comments of my noble friends Lady Coussins and Lord Listowel in welcoming the spirit of these amendments. Perhaps I may flag up, as I would be glad to have it on the record, that these amendments may not go far enough for those who have difficulty with financial issues.

Capacity impairments are related not only to mental ill-health. They may be related to frailty and there may be fluctuating mental capacity. For a group of people with communication difficulties, since banks are closing and local branches are no longer there, there is no one with whom they can communicate. If they have speech difficulties, they certainly cannot communicate well over the phone. They may have a mobility tremor, for example, which makes it difficult for them to use the internet without assistance, yet they may want to manage their affairs with a degree of privacy, which they can do in a face-to-face consultation with somebody in a bank.

In addition to impaired capacity and disability issues, there is another difficulty we increasingly see, particularly among the older population: coercion, which may be from other family members and a form of elder abuse. It can be very subtle indeed. I had a meeting this morning with Building Societies Association representatives, who are certainly detecting coercion in face-to-face encounters. But I also asked them whether there is any evidence of detecting coercion in the online systems that are in place. There is none, which becomes worrying. Although this group is right on the borderline of impaired capacity, they are inhibited from exercising their capacity because they are frightened of being intimidated by others.

Another group of concern is those with addictive behaviours such as the hypomania the noble Lord, Lord McKenzie, referred to in his opening remarks. For example, people may have a gambling addiction—a very defined addiction—and be increasingly enticed into spending more or doing a great deal of shopping during the night, when they are hypomanic. The control options on accounts should really be strengthened, so that someone can put them on but not have the ability to take them off themselves without a consultative delay period. The problem is that when they are hypomanic, they think it very reasonable to spend or gamble massively, but later they realise they did not have the capacity to do so. I hope the Government will look very favourably on these amendments and that when we come back on Report, they might even consider extending them a bit further.

[Baroness Kramer (LD)]

My Lords, if I may join in the general chorus, the concern that these amendments express—that the single financial guidance body is not directed to look at the issue of financial exclusion—is a serious lost opportunity. This body primarily directs channels of communication to all kinds of people about how to manage their money, whether that is in time of crisis or to maximise the opportunity for a good pension in old age, for example. As a result, it is in contact with people and is therefore aware of them in a way that, for example, a formal regulator such as the FCA can never be. Not to try to tackle the very individual and human complexities of financial exclusion seems a lost opportunity, given the palette of opportunity being created by the structure of the body. Financial exclusion matters greatly. We all know about growing inequality within our society and how it undermines the progress we wish to make. The contribution this body could make in this arena could help tip the balance in the direction in which we all hope to go.

Poverty

Baroness Finlay of Llandaff Excerpts

Thursday 14th July 2016 Lords Chamber

[Baroness Finlay of Llandaff (CB)]

My Lords, I, too, want to congratulate my noble friend Lord Bird on having secured this important debate and on the passion that he has brought to it. I say to the noble Baroness, Lady Sharp, that I was struck during her speech by her wisdom, her ability to have an overview and her knowledge of detail, for it is in the detail that the devil lies and where things unravel. I add my thanks to those offered to her for her constant kindness to everybody across the House and her willingness at all times to share that wisdom and give advice. She has often saved us from falling into bear traps, as we would have done had we not sought her advice.

I want to address poverty of opportunity and of aspiration, particularly aspiration destroyed when bereavement pushes children into the vicious circle of poverty. We know that about 3.9 million children are in poverty in this country, which means about nine children in every school classroom or 28% of our school population. Two-thirds of them are in homes where at least one parent is in work.

Children are denied by financial poverty the opportunity to expand their horizons by participating fully in society; but much more importantly, they are denied such an opportunity when bereavement hits. They have an even higher incidence of mental health problems. Children bereaved through suicide are more likely to attempt suicide. Those who have experienced a sudden and traumatic death demonstrate a threefold incidence of developing a psychosis in childhood or in young age. When they are in a home in financial poverty, they develop anxiety about the basic needs for their home being met. When their parent has mental health problems and is workless, possibly self-medicating with drugs or alcohol, it is the child who bears the responsibility of trying to hold the home together. When one parent has died, that can become particularly difficult. Many such children suffer from a sense of low esteem—about one in five feels a failure—but they often also feel guilty and somehow responsible for the death of that parent.

Children in poverty are significantly less likely to achieve five GCSEs at those good grades of A* to C, but that is knocked even further if they are also bereaved. Girls who are bereaved of a sibling fall behind by at least one grade across the board. Such children find it much harder to concentrate and to learn, and feel mistrustful of the future. They are often anxious that, while they are at school, the other surviving parent may suddenly die or be killed—relating to their previous experience.

The Marmot review, about which my noble friend Lord Crisp has already spoken, relates the evidence of poor physical health and increased risk of life-limiting illnesses in children born into poverty, with significantly shorter life expectancy. A boy born in Kensington has a life expectancy of 84 years, but a boy born in Islington has one of 75 years. The BMA has produced a report on growing up in the UK that looks at these issues. The problem in bereavement is often that one parent has had to give up work anyway to look after the person who was dying or to take on childcare responsibilities, and their ability to provide care is eroded if they are poor. Funeral costs present a major problem. Forty-seven per cent of claims for the Social Fund funeral payment are turned down. I ask the Government to work with undertakers to make sure that they offer the lowest-cost option and inform families of the risk of not receiving benefits, because the average funeral debt among those struggling to pay is £1,318.

Unmarried parents face other problems when their partner dies. Sadly, almost half of young people under the age of 35 believe that cohabiting couples have the same rights as married couples, but they do not. When a young parent is bereaved of a partner through a sudden cause and is unprepared, there is strong evidence that their outcomes are far worse in both financial and mental impacts. The loss of income is of course significant. A parent may have been included in their partner’s benefit claim, so there may be delays in activating it.

I know that the Minister has taken seriously the problems of bereaved children and taken steps to ensure that requirements in relation to seeking work can be relaxed for the first six months following the death of a spouse and up to three subsequent periods of a month. I know that he is aware that forcing people into work can increase parental stress levels and have an adverse knock-on effect on bereaved children, and therefore on their life chances. However, I hope the Government will address a specific problem relating to the widowed parent’s allowance. It will be affected by universal credit because it is treated as income other than earnings and is therefore taxable. It means that some people receiving universal credit and the widowed parent’s allowance could end up paying out £12.48 a week rather than receiving benefits. It is an anomaly which I hope the Government will address.

Children are resilient; 10% are very resilient, but 15% are highly vulnerable. Bereavement pushes them into the trap of poverty. I hope that every time an adult is dying we will all think: think patient, think child.

Universal Credit

Baroness Finlay of Llandaff Excerpts

Wednesday 4th February 2015 Lords Chamber

[Baroness Finlay of Llandaff (CB)]

I am most grateful to the noble Lord, Lord German, for having secured this very important debate. About a year ago we debated at length the difficulties of children who are in distress. I give credit to the Minister for having listened and taken seriously the issues that were raised, and for having consulted widely and tried hard to come up with a solution. Of course, everybody knows that no solution will ever be perfect, but in the last year we have become better than we were a year ago. That is a tribute to all noble Lords in this House who have argued long and hard.

The right reverend Prelate the Bishop of Portsmouth and the noble Baroness, Lady Miller of Chilthorne Domer, have laid out very clearly how incredibly difficult it is to be bereaved. There is no formula and no straightforward way ahead. Indeed, life will never be the same again. Nothing will ever feel normal again. It is a different life, and you carry that with you always, as do the children. Of course, the children’s grief will manifest itself in all sorts of different ways. As has already been said, children who are very distressed often appear at first to behave very well, and their grief explodes at different times and in different ways, because they really do not want to cause more distress to others. I have even come across family members who have said, “How can you go out and play? Your mum’s just died”. That child is trying desperately to find something normal left in their life—and that is going out to play with other kids in the playground at school and so on, and not feeling as excluded as they usually do.

I also pay tribute briefly to the organisation The Compassionate Friends, with which many years ago I carried out a study of bereaved parents with a bereaved mum. It was published in the British Medical Journal, and we called it “Your Child is Dead”. That was how people had been told that their child was dead. It is the only paper I have ever published that was translated into French and published in a French journal. We managed to raise awareness in medicine at that time, when people were really not taking much notice of children’s needs facing bereavement.

There are of course voluntary sector bodies which now provide guidance to organisations. Employers receive guidance; ACAS has produced some very good guidance on dealing with a bereaved employee. The National Council for Palliative Care has produced a range of booklets and support materials for people supporting others in bereavement. Hopefully, the world is slightly better than it was those years ago when we actually had to flag up the fact that there were bereaved children and bereaved parents out there, and people should not run away from that.

The issue of timing is of course difficult. From having meetings with the Minister I know that the timing and the right cut-off point have been difficult to determine. I appreciate the time the Minister has given to those of us who have really wanted to bend his ear on this issue. I do not have the anxieties that some others have about the fixed time of one month. This is because I am glad that it is non-negotiable, so that whoever is bereaved does not have to justify that they need a few more days or another week. They get their block of a month, with no questions asked.

I hope that the Minister will be able to reassure us that the work coaches will be appropriately trained to have a light touch. They should be instructed that the first time round their request for evidence should be very, very light. Possibly the second time they can prompt someone and say, “Look, I will need something to justify this—a little bit more than you provided last time.” But it should not be punitive. The bereaved person should not have difficulty making appointments. Work coaches should know that bereaved parents should be able to jump the queue to get an appointment if they need it. They should not have to wait and go through some slow process, as others might have to.

I also hope that the voluntary sector organisations will wake up to the need to be rapidly responsive. I fear that some of them have waiting lists for bereavement support or children’s bereavement support, and they need to speed up as well. When you are distressed you cannot wait, and you need somebody to acknowledge that distress there and then and provide you with the support that you need. So it behoves those of us who work with voluntary sector organisations to be aware of this.

I declare that I work with these organisations—and there are a lot of them—which help people who are facing death and bereavement. I have also carried out work with the Childhood Bereavement Network, which provided information to the Minister. All of these organisations need to step up to the plate and become rapidly responsive, because if they do not and there is no joined-up system, people’s distress will be greater. We have to provide support within society and not have people locked away in aliquots of grief. That is a danger whenever you put down something with timeframes around it.

There have also been concerns that for a bereaved parent, getting the evidence that they need for the work coach might feel difficult and stigmatising. Again, I hope that the work coaches will be specifically instructed that they must not ask questions that the person is embarrassed to answer. They might appear to be embarrassed, but it may be that it is just too painful for them to utter what is going on—or perhaps they have not yet come to terms themselves with the behavioural difficulties and internal turmoil of the child that they are left supporting.

I also hope that the work coaches will be taught—because they may need to have it spelt out to them—that the bereaved parent may have never worked previously. They may have been a stay-at-home parent or somebody who has left work to provide care for their relative during the dying phase or because their employer was unhelpful in supporting them and they took a decision to do that. Then they suddenly feel that they have nothing left, and they have lost their job and career opportunities.

There are also those who feel forced to not carry on with their job because of problems with childcare, and because what has happened to the child has meant that they feel mistrustful of others and of strangers, so they make the choice that they have to stop working to provide support to the distressed child. The work coaches may well not have the life experiences that others have had. I hope that the Minister will be able to provide us with that reassurance.

In closing, I thank the Minister, who has shown humanity, compassion and the ability to listen. He has really tried to make the review better and to understand the difficulties for children in distress and for the bereaved parent—or the guardian who is left trying to support them, if both parents have died.

Pensions Bill

Baroness Finlay of Llandaff Excerpts

Monday 24th February 2014 Lords Chamber

[Lord Freud]

My Lords, the House may find it helpful to know that, although I do not agree that a change to conditionality in respect of only this specific group of amendments is appropriate, I am proposing to conduct a wider review into the circumstances where children could be in considerable distress and where it is clear that conditionality should not be applied. I am not attempting to curtail debate but it may be of advantage to the House to have that information in order that we may have a more informed debate on this group of amendments.

[Baroness Finlay of Llandaff (CB)]

My Lords, I have Amendments 18, 19 and 20 in this group. I am grateful to the Minister for informing us of his proposal to hold a review of the level at which conditionality is set in relation to considerable distress in bereaved children. I appreciate his concern and the time that he has spent with me and others in looking at the problems of bereaved children.

However, I must point out that bereaved children express emotions differently from adults. Indeed, the most distressed children often appear almost blunted to the death of the parent and are simply quiet, withdrawn and can even appear disinterested. I hope that there will be no attempt to assess an individual child’s distress because I can foresee the problem of some families blaming that child for not caring enough, and therefore blaming that child for somehow not falling into a group that could have had more benefit. Sadly, transference occurs in bereavement and sometimes bereaved parents project their anger at the death on to the way in which the bereaved child is behaving and are on a very short fuse with the child, which compounds that child’s isolation. These are complex situations and there are serious long-term sequelae.

When a parent dies the support that the state offers must be easy to understand. It must support the widowed parent in providing support to their grieving children. Noble Lords are well aware that the death of a parent places enormous pressure on the rest of the family. The surviving parent has to both provide stability to children and adjust to life as the sole carer and earner while dealing with their own grief as well as that of their children. Quite often they have had no time to begin to adjust to impending widowhood—for example, in any sudden death, whether it is through a road accident, manslaughter, murder, suicide or whatever—and yet their children’s need for stability following the death of a parent makes it vital that the surviving parent is available to them, is present and is able to respond to their needs, which may change almost from minute to minute, hour to hour.

Stopping payments after only one year will have a significant impact on family finances but the major disruptions include the widowed parent often having to increase their working hours to replace lost income, thereby being less available to the children at the time when they are most in need of support. Amendment 18 seeks to increase the period of time that the bereavement support payment is payable to at least three years or until the youngest child has reached the age of seven, whichever is the longest period.

Can the Minister clarify the cost analysis that underpins the decision to end bereavement support payment after only one year, because one year is much too short to address a family’s needs? Removing the payment at the first anniversary of the death adds an additional pressure on the family at a time that is already very emotionally difficult when they often relive the acute episode surrounding the bereavement. Many families report that the second and subsequent years following bereavement are even harder than the first because support from friends and family tends to disappear and children can experience late effects of dealing with grief and bereavement.

The current allowance is paid until the youngest child leaves full-time education. The proposal to reduce this to a period of just one year is a dramatic change. Data provided by the Childhood Bereavement Network suggest that only one family in 28—that is, 4%—claims for less than one year. Most families would therefore receive payments under this Bill for a much, much shorter time than they would under current arrangements, especially if the children are younger. In Committee I described the shortening of this period of time as cruel. A year is a very short time in the life of those bereaved, whether adult or child.

The current benefit is paid until children leave full-time education in recognition partly of the complex emotional needs of young children. Removing the payment when the dependent children are very young is particularly worrying. Pre-school children become very clingy when they realise that one parent is no longer around. They require stability and security. The grief of losing a parent is challenging enough without compounding the disruption caused by the stress of worsened financial hardship for the surviving parent with the premature ending of a bereavement support payment.

Amendment 19 seeks to clarify that the bereavement support payment will be payable to a widow who is pregnant at the time of her spouse’s death. Can the Minister confirm that when the spouse of a pregnant woman dies the allowance would be payable to her? Amendment 20 seeks to clarify what support would be offered in the tragic event of both parents dying. Can the Minister confirm that in the event that both parents die, the guardian of the surviving children under the age of 18 will be eligible for any bereavement support payment which would have been paid to a surviving parent had that parent not died, and that the guardian has six months in which to lodge the claim? Can the Minister also confirm that the changes to the bereavement support payment do not affect the guardian’s allowance? Finally, can the Minister confirm that changes to the bereavement support payment do not affect child benefit?

[Lord Rix (CB)]

My Lords, I cannot claim to be either a young widow or to have young children. My children are actually middle-aged but my wife died a year ago last week and I know perfectly well that a year is really not sufficient time to put to one side all the problems which arise from the death of a partner. I was married for 64 years and, both for my children—middle-aged as they may be—and for me, the grief continues. I know perfectly well that if you are a young widow with young children, to be asked to change your life or to look at the possibility of going into work after six months is absolutely absurd. I support both these amendments with all my heart.

Pensions Bill

Baroness Finlay of Llandaff Excerpts

Wednesday 15th January 2014 Grand Committee

[Baroness Meacher]

My Lords, I will speak to Amendment 62ZA, but before doing so I must apologise to your Lordships—I have already apologised to the Minister—because I am running against a very tight deadline. I tabled this amendment assuming it would come up on Monday. Before addressing the amendment, I give my very strong support to Amendment 59, moved brilliantly by the noble Baroness, Lady Hollis. I have no doubt at all that the replacement of the widowed parent’s allowance by the bereavement support payment has positive features, but the limitation of that benefit to one year is absolutely cruel. The noble Baroness, Lady Hollis, really got across the point that bereavement is not just a short-term problem. It brings several years of very considerable distress and discomfort for the children, as well as for the parent left behind.

The aim of Amendment 62ZA is to remove the widowed parent’s allowance and its predecessor, WMA, from the list of benefits treated as income other than earnings for the purposes of universal credit entitlement. I realise that that would be a very big step for the Government, but the result would be that claimants with no other income or earnings would keep the value of the WPA in full. Those with earnings in excess of the personal allowance would of course pay tax on it, but they would at least receive the majority of the benefit.

This is a probing amendment. The Children’s Society has calculated that, without the amendment, those entitled to widowed parent’s allowance could find themselves worse off by about £400 per year compared to those with no entitlement and no national insurance contributions. An important point is that WPA is a contributory benefit. It is only payable when the deceased parent has paid sufficient national insurance contributions. The clear assumption behind the benefit is that a surviving parent with all those contributions should surely benefit over and above surviving parents with no contributions. We regard it as an anomaly that under the universal credit rules this advantage from having national insurance contributions would be stripped away. Do the Government really intend that outcome? I do not think so. The proposed bereavement support payment, which will of course replace a number of benefits including the WPA, clearly identifies bereaved parents with national insurance contributions as being entitled to benefits which are not available to others. There is therefore a real discrepancy between the two basic assumptions behind the two benefits.

Although the bereavement support payment will be limited in time—hopefully it will be provided for at least three years, which seems to be an absolutely basic requirement—nevertheless it will be of greater value to most of those entitled to it than the widowed parent’s benefit. The contributory principle is well and truly recognised by this new benefit. At the same time, as I understand it, those receiving the widowed parent’s allowance will continue to do so when bereavement support payment takes over for new claimants. The WPA will continue to be treated as income other than earnings, which again is a different principle. This means that the benefit will continue to be deducted pound for pound from the claimant’s universal credit entitlement. The result is that a widowed parent with no other income will experience zero benefit from his or her national insurance contributions, thereby entitling them to the WPA.

The situation is, of course, even worse for widowed parents who continue to work. The gross sum of the widowed parent’s benefit will be subject to income tax. I find that absolutely extraordinary. Working claimants may have their WPA deducted in full from their universal credit entitlement, but will also pay tax on the gross income that they have not received. Those are the parents who could end up £400 per year worse off. I would be grateful if the Minister could confirm that that is a correct reading of the situation.

Can the Minister confirm whether the Government really intend that those bereaved parents with a national insurance contribution record should be no better off than those with no such record and that those in work should really find themselves even worse off? Will the Minister confirm that many current recipients of the widowed parent’s allowance will continue to be disadvantaged in this way even after the introduction of the bereavement support payment? Finally, does the Minister accept that only relatively well-off bereaved parents, whose earnings take them above the ceiling for universal credit, will actually benefit from having a national insurance contribution record? Can that be right?

[Baroness Finlay of Llandaff (CB)]

My Lords, I support these amendments very strongly. The points about bereavement have been made most eloquently. However, I would like to add the scenario where one parent dies suddenly rather than as a result of a protracted illness, where the shock of the death may be absolutely overwhelming. That could be suicide, murder or a sudden death. There is another scenario, too, which is where the surviving parent was involved in a road accident and does not even start to grieve until much later. The children who are bereaved know that one parent is already dead and, for many months, they may not know whether the other parent will survive or not. The shortening of time is quite cruel, and I use that word advisedly. A year is a very short time in the life of anyone bereaved, and the anniversary of the death often marks a major step change in the way that they live their lives. That applies to children as well as the bereaved parent.

The government proposal to increase the lump sum is most welcome because the current lump sum gets nowhere near the immediate expenses incurred. However, it is essential that the Government consider this proposed three-year period, or until the child is seven, if that would be longer than three years, because pre-school children certainly need that security and will become very clingy when they realise that one parent has gone. A scenario might arise with an accident where not only has the parent died but another sibling. It is not uncommon, sadly, for a family of five or six to be suddenly left as a family of two—multiple losses all in one go in a horrendous road accident.

We know that the outcomes for children who are not well supported in bereavement are much worse. When we think about the cost of bereavement support, it must be put in context of the cost to society of young people who have been bereaved who have not had adequate support and have experienced excessive strain and mental health problems. That increases their risk of suffering from depression, attempting suicide and experiencing drug addiction, alcoholism, underage sex, unplanned pregnancies and so on. That cost must be offset against what appears, at face value, to be a demand for an increase in the amount that the Government will put there for bereaved parents. The long-term continuity becomes really important.

The only other point I will make, which was made to me by a young lady doing work experience with me, is that these days not that many parents are married. The issues highlighted in Amendment 62ZB are therefore really pertinent to the way that youngsters live today. I can see that administratively, if the parents are not married, it can become more complicated for government, but I do not believe that that is beyond the scope of being worked out. It is important to realise that the person who the child has lost and needs support to grieve over may not be their biological parent.

--- Later in debate ---

[Lord Freud]

Yes, I did. There is an element of push-pull and expectation, and the expectation here is that people would engage with the labour market after six months except where there would be difficulties in doing so. That is exactly why we want to develop a good guidance package, which we shall do in consultation with the key stakeholder.

[Baroness Finlay of Llandaff]

I apologise if I am interrupting the Minister when he is about to clarify something further, but I have a question about those situations where things are even more complicated. For example, one parent may have been driving the car, the other parent killed and one of the other siblings killed, so that the bereaved child feels anger towards the surviving parent as the person who was in control of the vehicle when the accident happened, as well as being bereaved of another sibling. Are those the sort of situations that the guidance will address, and will it allow a more flexible interpretation and some flexibility, particularly, over the six-month type of requirement? It is incredibly likely that the surviving child will have an extremely difficult time, including in establishing a relationship with the surviving parent.

Occupational Health Services

Baroness Finlay of Llandaff Excerpts

Thursday 1st March 2012 Lords Chamber

[Lord Freud]

I will not talk about the prodding too much, my Lords, although we get plenty of that here. One of the most valuable developments has been the self-referral process. There has been a lot of experimentation and piloting in relation to self-referral to physiotherapy and it has all been found to be very valuable. Patients have been empowered and highly satisfied with the results, with a lower level of work absence. The service provision has reduced costs and has substantially reduced the quantity of medicines prescribed as a direct result.

[Baroness Finlay of Llandaff]

Do the Government recognise that, given that on average 17 days’ sickness absence can be related to musculoskeletal disorders, the placement of physiotherapy in the workplace, as has happened in Rhyl in North Wales, can result in a decrease in sickness and the maintenance of people in work? Rhyl’s experience is of 82 per cent of people being able to remain in work, but that requires joined-up thinking between employers, health services and the benefits system.

[Lord Freud]

My Lords, that is absolutely smack on what the sickness absence review is looking at and whose recommendations we will be examining. The noble Baroness mentioned Rhyl. There have indeed been some quite remarkable improvements in this area. The project with which I was most impressed was in Lincolnshire, where triage was available on the same day. Advice, triage and signposting dramatically reduced the level of absence from work and, indeed, reduced the number of sessions of prodding that were required.

Welfare Reform Bill

Baroness Finlay of Llandaff Excerpts

Tuesday 31st January 2012 Lords Chamber

[Baroness Howe of Idlicote]

My Lords, a Division on a similar amendment was lost by two votes. We must all remember that we have here a compromise that would mean that at least some of the huge number of children would not be as severely deprived of the many things that they need in their lives as otherwise. It is also a question, as we have heard graphically spelt out, of many single parents, mainly young mothers, coping on their own with all these additional burdens and the need to stretch the money in ways that your Lordships have read about day after day in the pleadings that come through to us all. I ask the Minister to give serious consideration to whether a compromise of some sort would do. Personally, I would prefer the amendment as it is to be passed in full; it is about the maximum that any reasonable, fair-minded person would be happy to receive.

The amendment tabled earlier by the noble and learned Lord, Lord Mackay of Clashfern, was passed. If the Minister cannot give us sufficient reassurance and this amendment is voted on and passed, the other place will have an opportunity to see just how widespread is the support for it across all Benches, as we saw with the noble and learned Lord’s amendment. Therefore, I hope that the Minister will think very hard about accepting this amendment, which was so brilliantly moved by my noble friend Lady Meacher.

[Baroness Finlay of Llandaff]

My Lords, it has been said that the mark of a civilised society is the way that it cares for its most vulnerable. I remind the Minister that the speech of the noble Baroness, Lady Browning, encapsulated the societal burden of a failure to demonstrate that we are a civilised society.

I wish to put some figures on the table which have not been mentioned in the debate to date. The Family Fund is a charity that provides grants to low-income families caring for severely disabled children. In 2010, it had to pay out to a range of families, 64 per cent of whom had a child who was not receiving the higher rate of DLA. Recent figures from the Social Fund found that 69 per cent of families with disabled children are worried about their financial situation, with 61 per cent of those struggling to pay monthly bills and three-quarters believing that the high costs of caring for a disabled child are the cause of their financial situation. Other children in the family will suffer as a result of that, probably disproportionately greatly, because the psychology of a parent caring for a disabled child often dictates that that child becomes a focus of disproportionate attention.

Research by CLIC Sargent found that on average parents spend about £367 on extra expenses a month following a child’s cancer diagnosis and treatment, resulting in an annual spend of about £4,400 for parents of a child with cancer. When these families, whether suddenly or gradually devastated by illness, do not have the money they need with which to pay not for luxuries but very basic things to enable them to provide care for the disabled child, the other children in the family, the health service and society as a whole end up paying a higher price in many domains.

The amendment was eloquently introduced by my noble friend Lady Meacher. I urge the Minister to accept it, thereby removing the need to test the opinion of the House.

[Baroness Howarth of Breckland]

My Lords, I support this amendment, but in so doing I understand the position in which the noble Lord finds himself with a set of sealed envelopes. Like many other noble Lords, I encourage him to go back to the Treasury, or at least to have a look at how the available funding can be properly distributed. After all, this is a compromise. Personally, I would like us not to be in this position at all but rather to ensure that we do not make any cuts, because these are cuts—unlike some of the other reforms—to the budgets of families with disabled children.

I do not want to repeat the eloquent speeches that have already been made but to make three brief and, I hope, slightly different points. First, the Government need to take the long view as regards financial management. If we take the short-term view, we will find that many of these families will fall into even more disarray than they are in already. We should remember that, as has been said—I reinforce this point—the majority of these families are single-parent families looked after by mothers. These are not women who have had a child for some feckless reason, as is often portrayed in the newspapers, but women whose husbands cannot tolerate the pressure of having a disabled child in the household and have simply gone out of the picture—so these women are alone. Often that means that they cannot support their child’s situation, which results in many children going into care. I shall not quote more statistics, but noble Lords know that there are large numbers of disabled children in care at the moment and placing them in foster homes is very difficult; in fact, to get them adopted is almost impossible. The state’s burden of caring for such children is huge; the costs per week of caring for a disabled child can run into thousands. In taking the long view, we have to remember the number of children in care.

My last point is that, as several people have said, if we are a civilised society, we want children to grow up to be active young people and to have a proper transition into adulthood. I declare an interest as the president of Livability, a charity which looks after young people in schools, in colleges and through into adult care. I understand the need for that transition. If we are to do that and if we are to ensure that such families have a proper life, appropriate funding is crucial. Noble Lords may have disabled children but, if you are trying to bring them up on the kind of money that these families have and in the housing conditions and relationship situations of these families, funding is absolutely crucial to underpin the care, love and continuity that these children desperately need. I ask the Minister to look in his envelopes again to see whether there is not some way in which the money can be redistributed to ensure that that does not happen.