Welfare Reform Bill

Debate between Baroness Meacher and Baroness Garden of Frognal

Tuesday 31st January 2012 Lords Chamber

[Baroness Meacher]

My Lords, Amendment 1 seeks to ensure that the gap between the higher and normal-rate additions for disabled children is not too great. The Government’s proposals for these additions, according to the Minister, are designed to be revenue neutral. The money saved is to be used to raise the level of income for adults in the support group.

[Baroness Garden of Frognal]

My Lords, I apologise to the noble Baroness, but might I just suggest that people leave the Chamber quietly, because it is very difficult to hear what she is saying?

[Baroness Meacher]

The amendment proposes that Ministers revisit the relationship between the new levels of disability addition for children and allocate resources to adults in the support group when new money allows. I know that we must move on from arguments made on Report, but I must make just a few points to help my argument here to be coherent.

Very briefly, under the new provision for a disability addition and a higher addition, families who have a child who is eligible for the higher addition will receive £1.50 per week more than current claimants do, but families with disabled children who do not meet the stiff criteria for the higher addition will receive £27 per week less. Most families with a disabled child will therefore lose about £1,400 a year.

This amendment would peg the normal addition for disabled children at two-thirds the level of the higher disability addition for children. The House voted on a more radical amendment on this issue on Report and the Division was lost by two votes. We are seeking to eliminate the cliff-edge between the two levels of disability addition for children because all such families are far less likely, for example, to be able to rely on relatives or other informal carers. Their childcare costs will be far higher than those with a non-disabled child. Of course, families will have to pay 30 per cent of their childcare costs whereas today they pay, I think, 5 per cent. There really is an issue of work incentives for those parents, although I understand that the Minister will have a go at me on that issue.

On another terribly important matter, the need for high childcare costs will continue until the child is very much older, if not indefinitely. That applies to children who would not qualify for the higher rate addition yet who may be very severely disabled. That is the point. This amendment would go a long way to creating a much fairer system, which is what we are all about.

One might ask whether it really matters. It does matter because 100,000 or so disabled children affected by this loss of benefit are very likely to live in poverty. Recent research by the Children’s Society indicates that once the additional costs of disability are accounted for, four in every 10 disabled children are living in poverty and a loss of income would really matter. Therefore, disabled children would not only live in poverty but would have vastly greater costs.

The Government argue that their new additions align the levels of support for disabled children with those for disabled adults, but the levels of support are based on completely different tests. For children the test is based on eligibility for DLA, and for adults it is based on their fitness for work. So I am not quite sure how the Government are arguing that these have been aligned.

The Government argue that the changes will ease the transition to adulthood for disabled children. On Report, the Minister said:

“We want to smooth the transition from childhood to adulthood by removing that artificial divide”.—[Official Report, 12/12/11; col. 1054.]

In fact, the restructuring will reduce the support for most disabled children. It will not reduce the support for the very most disabled children who require night-time care, but it will reduce it for others. Therefore, I do not accept the argument.

There are good reasons for proposing a disability addition at two-thirds of the higher rate for children. This addition is needed to contribute to the costs of special clothing, repairing damage, safety measures and special food, and to contribute to the costs of giving disabled children access to the opportunities that other children have. We know that simple things like swimming lessons cost something like £270 for 12 lessons for a disabled child as opposed to £80 for a normal child. Where will that money come from? A summer club costs £450 per week for a disabled child compared with £100 a week for a non-disabled child. Yet these are the things that would give a parent a break and really help a child to socialise and benefit from development opportunities.

The Government’s proposed child additions go nowhere near covering these extra costs. I fear that their proposed reforms to disability additions are short-term fixes. I understand the position of the Minister, who is under huge pressure from the Treasury. One of the troubles for this House and noble Lords is that this reform, much of which we support in principle, is being tangled up with swingeing cuts to benefits which are having unacceptable impacts. Therefore, we are trying at the edge to ameliorate some of those unacceptable impacts. That is what we are about. The Government’s proposed reforms to disability additions therefore need another look by Ministers.

I turn to the particular problems of single parents with a disabled child. Many years ago I ran a group for parents of severely disabled children. I expected lots of mums and dads to turn up, and I was faced with what I thought was an absolute tragedy: the room was full of mothers who told me that the fathers had gone. Many of them had left home within months of the birth of the disabled child. It is these mothers and a great deal of others whom we need to have in our minds today.

Many parents of disabled children will be doing something very valuable for society by staying at home to develop their children’s full potential. They should not be under pressure, even in these stringent times, to go out and stack shelves. By devoting themselves full-time to therapy, play exercises and other learning activities, they are reducing the dependency levels of their children that, with luck, will last throughout their lives—some cannot make progress, of course, but many can—and increasing the possibility that their children can develop a degree of independence, and maybe even financial independence, in adulthood. It would be wise for the Government to take this issue very seriously.

I would ask the Minister to revisit the two levels of disability additions to consider whether the balance is right. Is there not merit in leaving the higher rate at £76 and retaining the basic level at two-thirds of that sum, which is something like £50? That really would make an enormous difference to these families. I would be grateful if the Minister would agree to take this matter away for further consideration, even at this very late stage, in the light of what I think are very powerful arguments for some change in their approach. Finally, will he agree to review the impact of the disability benefits changes in the universal credit system one year after its introduction—although I know that the system is to be introduced over time, so a year may not be terribly realistic? While doing that, will the Minister consider taking a look at reviewing the entire welfare reform package? I beg to move.

Welfare Reform Bill

Debate between Baroness Meacher and Baroness Garden of Frognal

Wednesday 11th January 2012 Lords Chamber

[Baroness Garden of Frognal]

With great respect to the noble Baroness, that is in the next group. We are going to stop on this group.

[Baroness Meacher]

I accept that agreement—excellent.