Welfare Reform Bill

Debate between Baroness Lister of Burtersett and Baroness Turner of Camden

Wednesday 11th January 2012 Lords Chamber

[Baroness Lister of Burtersett]

My Lords, I hope that this debate will be a bit more straightforward than what we have just been discussing. The amendment aims to protect the ultimate safety net in our social security system by ring-fencing the money devoted to it when responsibility is devolved to local authorities without any statutory duties attached.

Clause 69 abolishes the discretionary Social Fund, described by Barnardo’s as a lifeline for some of the poorest and most marginalised people in our society. Together with Family Action, to which I am indebted for its assistance, it is among many voluntary organisations looking to your Lordships' House to safeguard that lifeline. Indeed, 20 have this week written an open letter to the Minister. This is not the place to make the case against the abolition of the discretionary Social Fund; we rehearsed that in Grand Committee. Instead, it is up to us to ensure that when the discretionary Social Fund is abolished, the money allocated to local authorities and the devolved Administrations is used for the purpose intended.

The Social Fund was introduced in the late 1980s in place of a system of statutory payments to help some of the poorest members of society with one-off needs. At that time, the noble Lord, Lord Kirkwood of Kirkhope, and I were ranged against the noble Lord, Lord Newton of Braintree, who unfortunately cannot be with us this evening for health reasons. Today, we are trying to salvage something from the forthcoming wreckage of what we now acknowledge that the noble Lord, Lord Newton, achieved—one of life's ironies.

Through a system of community care grants and crisis loans, the discretionary Social Fund provides vital cash assistance to some of the most vulnerable members of the community. CCGs help people on out-of-work benefits to remain in or set up their own home, to retain their independence. We are talking, for instance, about young people leaving a children's home or foster care, people with chronic health conditions or disabilities who need aids and adaptations to allow them to live in the community—about one-third of recipients are estimated to be disabled—and women who have fled domestic violence. As one such woman said:

“The community care grant meant such a lot. I had been in a refuge. I had very few possessions as I had to leave them all behind ...The CCG helped me make my flat into a home”.

Crisis loans are interest-free loans payable where there is an immediate threat to health or safety—for instance fares when a child has to be taken to hospital or money to cover the cost of replacements following a flood or fire.

We accept that the discretionary Social Fund needs reform, but this is not reform, it is abolition with no guarantee that local authorities will pick up the pieces using the money allocated to them. The aim of the amendment is to write into the Bill just such a guarantee and thereby achieve the Government's aim of protecting the most vulnerable.

Experience suggests that without some form of statutory ring-fencing, there is no way to ensure that the money allocated to local authorities and devolved Administrations will be spent in the way that the Government and Parliament intend. That is not a criticism of local authorities but simple realism. Local authorities are already hard-pressed to meet all their statutory functions in the face of budget cuts. This pot of money could be very tempting.

In Grand Committee, the noble Lord, Lord Brooke of Sutton Mandeville, held us spellbound with a cautionary tale of what happened when he was a junior Minister of higher education, and money intended for Liverpool Polytechnic was purloined by Liverpool council for housing. It clearly impressed the Minister. More recent experience is that of Supporting People—a fund designed to help vulnerable groups. Since the ring-fence was removed from that, overall spending on Supporting People has been cut by more than 10 percentage points more than the settlement received by local authorities for the purpose. That is an existing budget; the pressure to cut a wholly new budget will surely be greater.

We should listen to what local authorities themselves have to say. Recently published DWP research with authorities addressed this issue. While admittedly some authorities were unenthusiastic about ring-fencing—perhaps seeing tying their hands in that way as being like turkeys voting for Christmas—a number were,

“concerned that without a ringfence ... funding would quickly become amalgamated into existing budgets and as a result its identity, visibility and purpose would be lost. A second concern was that Councillors or Directorate heads would redirect the funding to plug gaps in other budgets”.

It is just such fears that this amendment is designed to allay.

Both the present and previous Social Fund Commissioners have expressed similar anxieties. What will happen to the woman who has fled domestic violence and who needs to turn a house into a home for her family, or the disabled person anxious to remain in her home but without the means to do so, or the ex-prisoner who needs to set up home? The potential consequences have been spelt out by organisations such as Citizens Advice and Family Action: greater reliance on overstretched charities, on food banks and on high-cost lenders, as the Joint Committee on Human Rights also warned in its report on the Bill, or simply going without, with a potential risk to health or safety.

A child rights impact assessment of the Bill, just published by the office of the Children’s Commissioner, suggests that such consequences mean that the clauses in the Bill abolishing the Social Fund could be in breach of the UN Convention on the Rights of the Child on a number of counts. Can the Minister—wherever he is—please tell the House what account has been taken of the convention and what the Government’s response is to this advice? I am sure that your Lordships’ House would not want to agree to a breach of obligations under the convention.

The case for ring-fencing was made from all Benches in Grand Committee. In response, the Minister acknowledged the strength of feeling and indeed accepted the spirit of the amendment when he said:

“It is quite clear that we need to make sure, if we are putting money out for vulnerable people, that it goes to vulnerable people and is not diverted elsewhere”.—[Official Report, 10/11/11; col. GC 140.]

I could not have put it better myself.

On the other hand, he argued against ring-fencing. He contended that ring-fencing would restrict innovative thinking and limit local authorities’ ability to devise schemes that best address the specific needs in their respective areas. However, ring-fencing does not prevent innovative schemes; it simply prevents local authorities using the money for some other purpose entirely.

The Minister promised to reflect on the arguments put in Committee. I am sure that all noble Lords will be delighted if he has come up with a solution to the dilemma in which he found himself—that of accepting the spirit of ring-fencing but not the legislative means of achieving it. If your Lordships’ House should pass this amendment, it would not cost the Government an additional penny, which should be music to the ears of the government Benches. On the contrary, it would help to ensure that the money voted by Parliament was spent on safeguarding the health and well-being of the vulnerable people for whom it was intended. I beg to move.

[Baroness Turner of Camden]

My Lords, I support the amendment. When I first read the Bill, it had been my intention to put down an amendment to try to remove the clauses dealing with the Social Fund. Clauses 69 to 72 outline the abolition of the discretionary Social Fund, including community care grants and crisis loans. As we have heard from my noble friend Lady Lister, the Government expect these responsibilities to be undertaken by local authorities.

We are dealing here with quite desperate people. The funds provide assistance for people at the very end of their tether. They have no one to turn to and nowhere else to go. The problem is that local authorities are now under considerable pressure themselves. They are having to economise and there is no guarantee that the very poor people for whom the funds provided some form of immediate support will figure very high in the list of requirements so far as local authorities are concerned.

I did not process my amendment earlier but my fears are very well met in the amendment now before the House. As my noble friend indicated, it provides for ring-fencing to ensure that a local authority makes provision for the people already provided for by the Social Fund arrangements. There are many instances, as we are aware, of women facing domestic violence, which is rather horrifying. Much of it takes place within families, sometimes within immigrant families, and the women have absolutely nowhere to go. Some of the violence is unbelievably cruel and sometimes it surfaces in cases that eventually reach the courts. We have an obligation to ensure that people in such desperation have somewhere to turn.

There are other levels of deprivation and concern that have already been referred to, involving children, homeless people and those who have just been released from institutional care. They are people who have nowhere else to go and we have to provide that support for them. I very much hope that the Government will be persuaded to accept this amendment.