Welfare Reform Bill
Baroness Wilkins Excerpts(13 years ago)
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Baroness Wilkins
My Lords, at the risk of replaying the record, this is an important amendment because it would go a long way to protect the Government from facing the same sort of vilification that they have received from their introduction of the work capacity assessment for employment and support allowance. Much more importantly, it would protect disabled people from facing the anxiety, illness and ill health they have experienced while undergoing the headlong rush to reassess the 1.5 million claimants for incapacity benefit. That reassessment has gone ahead despite the fact that the Government know that the assessment criteria are seriously flawed.
As the Minister of State at the DWP, Mr Chris Grayling, said in the other place on 24 October:
“We have received suggested descriptors for mental, cognitive and intellectual function from Professor Harrington’s working group. Given that they represent a substantial departure from how the current assessment works, we are considering what impact they will have and will come forward with proposals soon”.
That is fine. He went on:
“The challenge facing us is that the recommendations will involve a complete change of the work capability assessment, not simply for mental health issues, but for physical issues, and is therefore a multi-year project”.—[Official Report, Commons, 24/10/11; col. 8]
Let us not make the same mistake again. Or rather, please let the Government not make the same mistake again.
I was going to quote from the lady I mentioned in an earlier debate, a GP who attended a recruitment evening for Atos assessments, and who wrote in the BMJ this year. The figures that she was quoted about what a doctor could earn from the assessment process were, I found, quite shocking.
Sessional doctors work a minimum four sessions a week, and are paid per item: £51.37 for non-domiciliary disability living allowance examinations, for example. The application forms for sessional doctors state :
“10 DLA domiciliary visits cases per week would earn £40, 211.60 per annum”.
I ask the Minister—and I apologise if he has already given this answer to the noble Lord, Lord McKenzie—what is the Government’s estimate of the cost of re-examining the thousands of people whose conditions will not change, or will only worsen? And can he remind us how often he is expecting them to be reassessed ?
Lord Touhig
My Lords, like many noble Lords I am a great fan of pre-legislative scrutiny, because I think it improves the quality of the legislation we pass. I also have great faith in this Committee system, because we go through a Bill line by line in order to improve it, amend it, and make good law as a result. I certainly support this amendment, because a trial period does make sense.
I look across at my good colleague the noble Baroness, Lady Browning. She and I sat on the Public Accounts Committee in the other place. Time and again we considered reports from the National Audit Office which showed that some great government scheme, some great initiative, had gone billions of pounds over budget, or gone over time. Inevitably we found that these things had not been trialled beforehand, to see if key elements of the proposals would work effectively.
Some unfortunate Permanent Secretary would be brought before the Public Accounts Committee, and like modern-day Draculas, we drew a lot of blood in our interrogations. Inevitably, this Permanent Secretary was not responsible for what the department had got wrong, anyway; it was the previous incumbent, but that is by the by. We were seeking to learn lessons, but inevitably it was like closing the door after the horse had bolted. If only more care had been taken, or things had been trialled and piloted beforehand, then things would not have gone wrong in the way that they did.
If the Government take this amendment on board, it has the potential to save millions of pounds. If the Bill does not take account of this, then somewhere down the track the NAO will come in, in two or three years, and find that there has been some great failure, or some great cost. The Public Accounts Committee will have to investigate, and the Department for Work and Pensions will be held up again as having failed to pilot or introduce a scheme in a good or effective way, as it promised it would. The amendment makes a lot of sense, and I hope the Minister will see that.
Lord Freud
Let me take each of the noble Baroness’s amendments in turn. On the trialling of the assessment, I am sure that noble Lords are aware that it is possible to test out and evaluate the assessment process without trialling it. There is, indeed, an advantage to testing over trialling, because the former can be done without affecting an individual’s entitlement to benefit.
The noble Baroness will be aware of the testing we undertook throughout the summer with more than 900 disabled volunteers, and the informal consultation that took place alongside it. Both were very effective, and allowed us to review, revise and improve the draft assessment criteria from the draft published in May to the draft with which noble Lords have recently been provided. We are now seeking further views on that.
For our testing, using independent experts has demonstrated that our proposed approach to assessment is both reliable and valid. This testing included individuals on the autistic spectrum. This is not the end of the matter, though, as we believe the development of the benefit processes, including the assessment, should be and will be an iterative process. Therefore, in addition to testing of the assessment, we have created a specific development group to engage with a broad spectrum of disability organisations, to understand their views on a range of issues related to the delivery of the benefit. We have also created a number of customer research panels made up of groups of disabled people who share similar characteristics. We will seek to test our processes in a model office environment, allowing us to see how they work without affecting individuals. These processes will be vital in helping us gather insight first-hand from individuals on whom the process may impact.
Turning to the independent review of the trial referred to in the amendment, I first state that I do appreciate the importance of such reviews, and will talk about that in more detail later. However, undertaking this after only one year of operation would not provide adequate time for the assessment process to bed in. It would not allow enough time for sufficient data to be captured, as it requires people to go through the full claims process in this time, and there are inevitable lags in the production of statistics. Any subsequent analysis would therefore provide an unrealistic impression of how the benefit was operating.
There are, of course, other means by which we seek to evaluate and improve the operation of the new assessment. The assessment and its associated process will remain living tools, and we will continually carry out internal evaluation work to monitor their performance. We will therefore not have to wait for the outcome of the independent review to learn from and take action based on operational and individual experiences.
The second element of the noble Baroness’s amendment is the involvement of disabled people’s organisations in the assessment process. Let me assure the noble Baroness that we have involved disabled people’s organisations in the development of this policy from day one. We are trying to approach this work in a co-produced way, seeking the views of disabled people and their organisations at each stage. I have mentioned in earlier debates that our assessment development group comprises members of Equality 2025 and Radar. Both have provided critical support, direction and challenge throughout the process of developing the assessment criteria.
We also held a 16-week informal consultation on our initial draft of the assessment criteria, which sought the views and opinions of disabled people and their organisations. This process helped us to revise the initial draft assessment criteria and develop the second draft, which has lately been made available. Most of the changes that we have made have been as a direct result of the input of disability organisations. We are now seeking views on the second draft and, importantly, the proposed weightings, before we reach any firm views on the entitlement thresholds. We then intend to carry out a full consultation on the entire assessment criteria, including the weightings and thresholds.
Equally, we are involving disabled people and the organisations that represent them as we design the operational processes for personal independence payment. To achieve this, we have created a dedicated working group specifically for this purpose. The group’s membership has been drawn from a wide number of national and grass-roots, user-led organisations, and it is currently working with us on a range of operational issues. We also see disabled people’s organisations playing a key role in the delivery of the new benefit, helping to inform individuals and guide them through the process. This could include assisting them in making claims, providing evidence to help support their case and/or attending assessments with them to provide support and reassurance. We are undertaking work to strengthen and expand our partnership arrangements with local organisations that represent disabled people and ensure that they have all the relevant information about PIP.
Meanwhile, there is nothing in the legislation to prevent disabled people’s organisations being involved in the delivery of assessments. The key for us is ensuring that, regardless of which organisation or organisations deliver the assessment, they have the capacity to do so, and that individual assessors have the requisite skills and experience. Disability organisations have been free to participate in the procurement exercise for the assessment, which is now under way, either as prime contractors or as partners of such organisations. Whatever the outcome of this exercise, we will ask the assessment provider to work with disability organisations and seek their input, so that we can deliver the best possible service to claimants.
The final element of the noble Baroness’s amendment is intended to ensure that individuals whose condition is unlikely to change over five years should not have to undergo an assessment more often than once every five years. We will discuss this issue in more detail in a later group of amendments. However, we know that disabled people’s lives are varied and that health conditions and impairments affect people in many different ways. As I have said before, we therefore do not feel it would be appropriate to make blanket rules for particular groups of people.
Under personal independence payment, we want individuals’ treatment to be tailored to fit their personal circumstances. This includes our approach to award length and review date, which should also be personalised. Such an approach would be able to take into account the likelihood of the impact of an individual’s health condition or impairment changing. We know that for some people a shorter-term award might be appropriate. For others, a longer-term award might be appropriate, while, for those with the severest disabilities, an ongoing award might be right. We absolutely do not want unnecessary reviews of claims, both to reduce the impact on individuals and to ensure that we do not waste money.
The noble Baroness, Lady Wilkins, raised the question of the overall cost of delivering DLA reform over three years. This was included in the 2010 Budget Red Book at £675 million.
Baroness Wilkins
I asked about the cost of reassessing people with conditions that will not improve or where there will be no difference.
Lord Freud
My point is that we will try to minimise those costs by not having reassessments in those circumstances. I cannot put a precise figure on it but I can tell the noble Baroness that our ambition is to have as low a cost as possible in those circumstances. Assessors and decision-makers should be empowered to make these decisions based on the circumstances of the case and with the aid of departmental guidance. These matters should not be prescribed by the Government through legislation. Only by doing it that way will we achieve the personalised approach we desire.
Baroness Wilkins
My Lords, I support this amendment. The range of people who will need aids and adaptations is enormous. One of the groups who are not highlighted in the new criteria is those people who need communication aids, which can be extremely expensive and of which there is, at the moment, a very erratic supply. Whereas a child might be given a communication aid and be able to communicate with the world by using it, after the age when education finishes it becomes a very dodgy business. We are talking about a huge range of people. In the area of mobility, the cost of special shoes is £100. It is such a complicated area that the Government would be extremely wise to think again.
Baroness Campbell of Surbiton
My Lords, I am also extremely supportive of this amendment. It is a government misuse of the social model to withdraw support by saying that if you have a decent wheelchair-adapted house and car your disability goes away. That was quoted to me by a DWP civil servant as a social model assessment. That is exactly why I tabled an amendment on social model assessment—so that we can teach assessors what the social model really means.
The noble Baroness, Lady Thomas, is absolutely right. If I were assessed today, I would probably be taken off DLA. I have my wheelchair, my adapted house, my car and some personal assistance. However the cost of maintaining that is absolutely phenomenal. My disability has gone away; it is away today. I feel equal to all who are here but tonight it might be different. Therefore, I am absolutely in favour of placing this in the Bill. It is a perverse incentive to account for aids by means-testing. It means that people might stop using their electric wheelchairs and adapted cars to get the benefit. They might hide them in the garage or swimming pool. Apparently people put their cars there to hide them from the taxman. As noble Lords can see, I am very supportive of this amendment.
Welfare Reform Bill
Baroness Wilkins Excerpts(13 years ago)
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Baroness Wilkins
My Lords, I could not agree more strongly with these amendments. As ever, my noble friend Lady Campbell has nailed the issue and then hit it firmly on the head. The title of the Government’s proposed replacement benefit to disability living allowance is vague, confusing and misleading. As my noble friend Lady Campbell points out, it does not even mention disability. No doubt this is intentional, and sadly this Government have taught us to be fully justified in our cynicism. By removing any indication of PIP being a disability costs allowance the Government can manipulate entitlement to the benefit to their heart’s content.
I should declare my interest as someone who has received DLA and its predecessor benefits since the mid-1960s. Should I now expect screaming Daily Mail headlines spelling out the shocking amount this must total over the years? Of course, they will completely fail to mention that it was only this benefit that enabled me to be mobile, educated and employed, and so become a contributing taxpayer for the whole of my career. Now more than ever this week’s shocking press headlines vilifying disabled people as scroungers could not teach us more clearly that it is essential that the press and public know what this benefit is for; that they are given no excuse for the misinformation; and that the name spells out clearly what is in the tin. It is a disability living costs allowance.
The Minister has emphasised throughout this Committee stage that the Government’s whole purpose with this Bill is to change the country’s culture in people’s attitude to work. It remains to be seen whether they will succeed. I hope that they do. But sadly, what this Government have succeeded in doing is changing the public’s attitude to disabled people. It has become totally acceptable to depict disabled people as scroungers defrauding the benefits system. The Secretary of State, Iain Duncan Smith, was quoted as saying on 11 November in the Daily Mail:
“At the moment hundreds of millions of pounds are paid out in disability benefits to people who have simply filled out a form. The vast majority are getting the benefit for life without regular checks to see if they are still eligible”.
He finished that sentence by saying,
“or if their condition has worsened and they need increased support”.
Of course, concern for those who are missing out was not the lead story.
Will the Minister say when we are going to see the Government move to rebut any of these wildly inaccurate press reports which are helping to stoke disability hate crime? The Government’s acceptance of this group of amendments would be a welcome indication of their intent and I feel sure that my noble friend Lady Campbell has made the Minister very aware of the importance of this issue.
Baroness Grey-Thompson
My Lords, my noble friend Lady Campbell of Surbiton has very ably described the purpose of this amendment. I, too, declare an interest in that I am in receipt of DLA. Like my noble friend Lady Wilkins, it has helped me in terms of education and working throughout my life.
When I was doing my own research on what the title PIP meant, the most common response was, “Isn’t that something linked to pensions—a personal investment plan?”. The title should more accurately reflect what the benefit is and why support is required. Obviously, a name change on its own will not solve the issue but anything that clarifies why the benefit is necessary can only be helpful. Many disabled people are very frightened, partly by what will happen to their benefit but also about the change in the way in which they are viewed by society. It is not just in the recent media coverage over the weekend.
There has been a worrying change in how disability is reported in the media. The Strathclyde Centre for Disability Research in the media unit at Glasgow University has recently published a report, Bad News for Disabled People. It compared the coverage of five papers in 2005-06 and 2010-11 and found that there had been a decrease in stories presenting disabled people in a positive way and an increase in stories concentrating on benefit fraud. The focus groups in the same study all claimed that levels of fraud were much higher than they are in reality with some suggesting that up to 70 per cent of claimants were fraudulent. Participants justified these claims by reference to articles that they had read in newspapers. One of my concerns with the current name is that it possibly suggests that disabled people are getting a lot more money than they will actually receive. I also believe that there is an ongoing misconception over the purpose of DLA that we need to correct.
The DWP has highlighted in a press release the length of time many disabled people have received DLA as if people somehow do not need the benefit after a certain time. Again, this leads people to misunderstand the purpose of the benefit. Many people with congenital conditions, like myself, will continue to have higher costs of living throughout their lives. Of course, there need to be reviews as circumstances can change, but the fact that some people continue to qualify for these benefits in the long term is not on its own a signal that the system has gone wrong. A colleague frequently says to me that language is the dress of thought. Disability cost allowance is the right name to use.
Lord Newton of Braintree
My Lords, I hope that the Deputy Chairman will not mind if I intervene from a sedentary position, which I think has been accepted in this Committee previously. I take the Minister’s point. We are all—I certainly can hardly deny even with a big “C”—being conservative with a small “c” on some points. Picking up from what the noble Baronesses on the Front Bench here, as it were, were saying earlier, we have to acknowledge a combination of things, which is nervousness among the disabled population about what is going on, accompanied by a change of name with which it feels comfortable. If the Minister could allay the concerns more clearly, it might be easier to change the name. I ask the Minister to bear in mind that at the moment they are trying to change a name which is aggravating the worries about the actual changes that are going on. That is the political point.
Baroness Wilkins
To follow up on that, perhaps I may press the Minister on press reports. Is his department, or are Ministers, ready to undertake some counteracting of what is going on in the press? On a previous day in Committee, he said that we do not control the press. Of course, the department does not control the press but there is a strong suspicion that stories such as the one that appeared last Friday in the Daily Mail and the Daily Telegraph with the same words may have been leaked from the department to the right-wing press. If Ministers cannot control the press, it would ease the fears of disabled people immensely if they could come up with some very positive comments for the radio and television media where they have some control to counteract the appalling image that is being put across about disabled people.
Lord Freud
My Lords, I am very sympathetic to that point. The trouble is that when I and my colleagues—and, I am sure, the noble Lord, Lord McKenzie, and the opposite side of the Chamber when it was in power—try to make positive stories, it is terribly hard to get any coverage at all. That is the trouble. The press is very hard to use in this way. I could use some emollient language here. I am genuinely concerned at the difficulties that we have as a department in getting a balanced view. Journalists tend to write unbalanced stories. I am conscious of and very concerned about that. I take it and I will try to get some counterspin, if you like, working. I think you are absolutely right that we are in danger of seeing the position of disabled people undermined by the media coverage and it behoves us to try to get that rebalanced. I accept the commission, if that is what it is, and will try to do something about it.
Baroness Wilkins
My Lords, the amendment asks the Government to think again about the proposal to have only two levels of the daily living component of PIP compared with the current three levels for the care component of DLA. While changing from three to two levels may seem attractive from the point of view of simplicity, it is likely to be achieved at the cost of creating unnecessary dependency and hardship among large numbers of people. As we have heard it could also result in greater pressure on health and social services.
I am sure that the Government are aware of the Joseph Rowntree Foundation inquiry, which found that,
“that little bit of help”,
was crucial in preventing greater needs developing, enabling older people to remain in their own homes, living active lives and saving unnecessary expenditure on health and social services. The same experience applies to disabled people below retirement age. In addition, for many disabled people it is that little bit of help that makes it possible for them to seek and retain employment. Currently the lower rate of DLA care component can make a major difference and, in the long run, save unnecessary expenditure.
As the DWP has acknowledged, many of those who responded to the consultation opposed the proposal that there should be only two rates of the daily living component and expressed a fear that it would result in many people who currently receive some much-needed help no longer getting it. As the Government’s own review of research on what DLA is used for shows, there is widespread evidence that current payment levels do not cover the real costs that disabled people incur. That includes those receiving the lower rate of the care component. Not only will the removal of assistance to this group mean that some—many—will make greater demands on health and social care services, it will deprive local authorities of the funds to enable them to do so. Currently local authorities take the whole of the care component when charging for community care services. Once more, local authorities will face higher demands with fewer funds.
I shall close by quoting two people who currently receive the lower rate DLA care component and who explain the difference that it makes to their lives. The first person said:
“My medical condition means I need a special diet if I am to remain out of hospital. I use my DLA to pay for this food, and also for the extra heating I need to keep warm”.
The second person said:
“In the early stages of my wife’s illness we got this small sum of money which did make a major difference to our lives. It helped to pay for someone to sit with her while I went out shopping, and it meant that our lives could carry on that bit longer before we asked for more help”.
It is hard to believe that abolishing the lower rate will do anything more than remove much needed help from large numbers of people. This may help the Government to reduce the DLA budget but the costs will undoubtedly turn up elsewhere in public expenditure, whether it is in the costs of increased health needs or in the implications for social services budgets.
Lord Newton of Braintree
My Lords, I picked up two points in the course of this debate. First, I think the noble Baroness, Lady Grey-Thompson, indicated that she thought there were 655,000 potential losers from this. Is that right?
Lord Addington
My Lords, the social model is something that anybody who has been involved in disability for any length of time has been searching to get hold of and use more correctly. I remember that when we did the Disability Discrimination Act, we had a variety of people coming in to see the committee, and it became my role in that committee to ask for a workable definition, which I failed to get from those groups at the time. We have moved on and are getting better. This is a step forward. We are building an agreement here, and I look forward to what the Minister says about it. This is something on which we might be able to admit that there is a continuation of government policy over various Governments. There has been a continuation of agreement on this over many subjects among the parties and across all political barriers. Implementation may change slightly over the years, but growth and consensus have been built up.
It will be very interesting to know how the Minister sees this approach being built into a variety of other subjects later on in the amendments on this part of the Bill, because that will allow us to assess how deep the thinking has been. It is very easy to say, “Of course we’ll do that”, and it has been done. We have all fought many smaller battles on disability over the years because somebody has said, “Oh no, that’s the way we do it”. One of the most recent ones I have been involved in, which I hope is coming to a happy outcome, is, “Oh, you’ve got to be able to spell to an acceptable standard to become an apprentice”. I have bored many people in this House with that over the past few months. They did not quite take on board that the use of language can be through various means. The electronic devices in front of you mean that you can transfer written meaning—text to voice, voice to text and back again—in various ways and have been able to do so for well over a decade. The people who have got involved in this—the people who were writing legislation at that point—were just out of touch with the reality and the perception of those other people who do not share the mainstream. They were interacting with one aspect.
If we can get a definition of how that is coming in, not so much for this amendment but to throw into a couple of others, we will all be a little happier. If you have a wonderful, magical definition that we can put into a Bill, I will cheer.
Baroness Wilkins
My Lords, I, too, strongly support this group of amendments, which were so comprehensively introduced by the noble Baroness, Lady Campbell of Surbiton. I, too, read with great interest the Scope paper The Future of PIP, to which she referred. I strongly urge the Government to take forward the paper’s recommendations and to consider seriously the merits of this group of amendments, which would ensure that the assessment used to determine eligibility for PIP adopted the social model of disability.
I am somewhat bemused by the contribution by the noble Lord, Lord Addington. For many years there has been a very good description of a social model. I am proud to say that we first discussed the issue on “Link” in 1975. The progenitor of the social model of disability was on the very first programme. I hope that thinking has progressed since then.
Lord Addington
I did not say that there was no definition; I said that it was not presented to the committee in a way that we felt we could use in legislation. That is the process. One may have an idea that is solid and makes sense, but getting it into workable legislation is something very different.
Baroness Wilkins
I thank the noble Lord for that explanation. As the noble Baroness, Lady Campbell, said, it is the Government's stated aim that the new system should be underpinned by the social model. Ministers have insisted that the assessment process should recognise the disabling barriers that stand in the way of full and equal citizenship for people who need support to go about their daily lives. The Minister for Disabled People recently stated:
“Our vision is clear: we want to remove barriers to create opportunities for disabled people to be able to fulfil their potential and be fully participating members of society”.
I welcome the amended draft regulations that were published by the Government on Friday. They take into account some of the criticisms of the earlier draft. However, as the noble Baroness, Lady Campbell, said, this is only a start. There is still concern about whether the Government will be able to identify the needs of a broad range of people, including those who need to make greater use of utilities or who incur additional transport costs. The amendments will assist the Government's recognition of the need for the assessment process to recognise the impact of disabling barriers. They will reassure disabled people and their organisations that they have been listened to, and they will provide the clear principle on which the Government say they want the new assessment to be based.
DLA and its replacement, PIP—DCLP as we will now call it—were created in recognition of the fact that it is highly costly to live as a disabled person in today's society. It is not just impairment or illness that create costs but the environmental, economic and attitudinal barriers that often accompany such experiences. The Counting the Cost report by Scope and Demos clearly demonstrated that factors such as the suitability of housing, the accessibility of local transport links and whether an individual has already received other forms of support from friends and family will all contribute to their extra costs. Therefore, it is imperative that these factors are considered when designing the assessment for PIP or DCLP. Otherwise, as the noble Baroness, Lady Campbell, eloquently outlined, many disabled people across the country will fail to receive the most appropriate levels of support, and the new assessment process will not be fit for the Government's stated purpose.
Baroness Hollis of Heigham
My Lords, I was rather surprised to see that the amendment was felt to be needed. I had thought that the past 30 years would have made such an amendment redundant. Some time back, for just a few months and for reasons that I am ashamed to admit, I was in a wheelchair. Looking back, it is hard to say whether the difficulties I had were due to social or medical factors. What I am sure about is that an impairment easily becomes a disability if the environment is not supportive of that individual. That seems to make the difference.
What puzzled me until the noble Lord, Lord Addington, mentioned it was that we had not referred to the DDA. The whole point of the DDA was to set the medical impairment in a context which, through social, practical, emotional and moral reasons, did not serve to bar the person from full involvement in their lives. What we asked with the DDA was that employers and providers of goods and services should be required to make “reasonable” adjustments. This seemed a perfectly intelligent balance between the costs for small businesses and the rights of individuals not to face artificially induced and constructed barriers to their full social inclusion.
I remember going around the city and looking at our historic buildings, which we had been told by various people could not be made accessible for disabled people. On the contrary, the brilliant architect John Goldsmith, who was then over at the old DoE and was himself disabled, showed how we could ensure full access to buildings from museums to 18th century chapels for disabled people in wheelchairs and the like. In the process, mothers with buggies, pensioners loaded down with bags and a whole swathe of the community found that they had added access on the back of what we were doing nominally for disabled people. We opened up some of the most beautiful buildings of the City to perhaps a third of its population who had found barriers in their way. Without needing to get into a debate about social and medical because I cannot follow down those paths, I say to the Minister that I just do not see how you can separate the one from the other, because they interlock whether they be transport, housing, public access to buildings or whatever. Unless you have both sides of that equation, an impairment will continue to remain a disability—unnecessarily so—for far too many people.
Welfare Reform Bill
Baroness Wilkins Excerpts(13 years ago)
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Baroness Morgan of Drefelin
Perhaps I may make a small point before we move off this issue completely. I am also concerned about the definition of terminal. There is a question here. I cannot remember the correct terminology, and if the noble Baroness, Lady Finlay, were here she would tell me instantly, but during the six-month deadline or prognosis period, things may perhaps be moving on. Perhaps for some people we need to think about that period being longer than six months.
Baroness Wilkins
Does the Minister also accept that any recommendations made by Professor Harrington will take some time to put into effect—until 2014 at least? In this amendment, we are talking about this measure coming into effect next April.
Lord Freud
My Lords, that is a little premature. It is literally too early to look at the timetable of introducing any recommendations, whatever they may be? However, there may be elements that can be brought in sooner rather than later. I do not think that there is an impossible timeline here.
There is a real issue about these particular people who are suffering from cancers and other similar illnesses. You might look at the kind of experience that they will have in practice, because it is easy to look at the one-year ESA in isolation.
In practice, many people will first go through six months of sickness pay, whether it is occupational or statutory sick pay. That is a 28-week period in which many people will undergo much of their treatment. Then there is a one-year period if one is on the WRAG. Many people will go for a period on the support when they are going through treatment. We are seeking to precisely define which types of treatment they can go through. So there is a period on support and then a period on the WRAG. So the idea that there is an arbitrary one year, spinning down the track, from people being ill, is not the reality. There are a lot of stages to go through in our system, which people go through at different times and in different ways. I do not think it is right to think of it in a rather simple way; our system is more complicated.
Welfare Reform Bill
Baroness Wilkins Excerpts(13 years ago)
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Baroness Wilkins
My Lords, I support the amendment which has been so comprehensively introduced by the noble Baroness, Lady Thomas of Winchester. I wish to make one additional point, which is that one of the very dispiriting elements of having a long-term health condition or a disability is the fact that you are so often on the receiving end of help. It can almost get to the point where you are not expected to be able to do things for other people. For example, I very rarely get leafleted in the street by charity workers. If I go to the door to a charity worker, they apologise that they have bothered me. It is as if you are not expected to be able to contribute to society in any way. However, one very obvious way in which we can contribute is by sharing the experience of our condition, making some value out of it and aiding research in this way. That can surely only be beneficial for future generations, for medical professionals and for ourselves and our self-esteem. It seems nonsensical that red tape in the benefits system should stand in the way.
Lord McKenzie of Luton
My Lords, I support the thrust of the noble Baroness’s amendment. I do not think that there was much that I ever did as Minister which was the cause of great rejoicing, but I was grateful for at least one memory. I recall several meetings that we had together, trying to see that we ended up in a situation where amounts paid to service users did not inadvertently affect their benefits. I have been trying to recall all of the detail of that. I am not sure that I can, but I am sure that the Minister will be able to bring us up to date or remind us.
Part of what we were trying to do then was to see if a sensible application of the current rules, by way of clear guidance across Jobcentre Plus, would be a route to tackling it. It was in part, but it did not deal with the whole of the situation. There can be no doubt that engagement of those who actually use our services in shaping how they are organised and delivered can be of enormous public benefit. This particularly applies to the multiplicity of research projects which can underpin innovation and vital developments in services. Service user engagement is to be strongly encouraged. We are thoroughly supportive of this.
As the noble Baroness has said, it seems entirely reasonable, as we reflect on the introduction of universal credit, to see how far a legislative solution will cover the situation, rather than perhaps just relying upon practice and guidance, as happens in part at the moment. However, as we have heard, that does not cover all of the gaps, and there are a range of issues about whether payment just covers actual outgoings, about whether there is an excess or profit, about the frequency of activity and about whether any spreading or averaging rules would apply—we went down that avenue at one stage. There is also the issue of protecting those who decline a payment from the notional income rules. It may be that the disregard regime in universal credit could help or could be made to help. On the basis of the noble Baroness’s figure, that may not be the case.
Turning to the specifics of the amendment, I have an issue about terminology. It refers to expenses,
“wholly, exclusively and necessarily incurred in the performance of the duties of the employment”.
It is an interesting point to distinguish employment and involvement. It is certainly the case in tax legislation, and I think in benefits legislation also, that the phrase “wholly, exclusively and necessarily” precludes taking the costs of travel from home to work out of the arrangements. There has always been a distinction between the cost of undertaking travel as part of your work or involvement and putting yourself in a position to do that, which is travel from home to work. Therefore I am not sure that the formulation is necessarily the right one.
This has been going on for a number of years. Progress has been made, but it clearly has not solved the problem, as we have heard. It would not have a huge price tag, if any, to use this opportunity with universal credit to deal with it absolutely.
Lord Wigley
My Lords, I am very pleased to support this amendment. One is very aware of the tremendous work that the noble Countess, Lady Mar, has undertaken in this area and of her expertise. There is no doubt that the fluctuating condition of many people with disabilities can be a difficult factor from whichever end you look at it: from the point of view of the disabled person, who may want to work but is uncertain whether they can carry out the work, or from the point of view of the state and the way in which these regulations apply to such people.
The one element in this amendment that I am not entirely certain about is the question of “unsupported employment”. There are times when, if a disabled person is given adequate support, they can be in full-time meaningful work on a continuous basis. I would not want this amendment to undermine that dimension, which is very important.
Turning to new subsection (6B) proposed by the amendment, can the Minister comment on paragraph (b), which refers to work,
“which exists in the United Kingdom”?
This raises some interesting questions. Is it in the Government’s mind that there might be work outside the United Kingdom, the availability of which could, if it were not taken up, lead to people being debarred from their benefits? One thinks of people living in Dover: an hour’s journey puts them into the French catchment area. If one lives in Holyhead, if the fast boats are running one could quickly be in Dublin—presuming that there is any work in Dublin these days. The Government’s intention in this matter certainly needs to be probed. If paragraph (b) is necessary, I would be interested to know what the Government’s explanation is.
Baroness Wilkins
My Lords, I strongly support this amendment in the hope that it will go some way to meeting the fears of the thousands of disabled people facing their work capacity assessment, especially those who have a fluctuating condition such as multiple sclerosis or an ill understood condition such as ME. Members of the Committee will have been inundated with letters from people who have been given every reason to mistrust the assessment process as carried out by Atos, and I know that the Minister has been made very aware of the stress and anxiety this is causing.
Broadly, this amendment sets out that, in order to be deemed capable of work, the claimant should be able to work for at least 16 hours each week in meaningful work that pays the national minimum wage or above and, most importantly, that they can reliably perform their work on a sustainable basis of at least 26 weeks without requiring excessive leave or absences. This would do much to rectify the current situation. What happens now is that at the end of an Atos report on a claimant, which goes to DWP decision-makers following the completion of the work capability assessment, there is usually a prognosis which says, “This claimant should be able to return to work within x months”. However, the WCA is not currently designed to offer any concrete evidence of a person’s realistic capability to find employment. The content of the WCA is designed purely to assess a person’s physical and mental functionality, not their ability to find employment, how long this may take or what support an individual may need to do so in the light of the barriers to work that their condition presents.
The WCA test focuses largely on a claimant’s typical day. Yet there is no such thing as a typical day for someone with a fluctuating condition. For example, a woman with MS in her early 30s told the MS Society that on one day she may feel well enough to participate in voluntary work and have a busy and active lifestyle, yet during a recent lapse she was rendered completely blind for a period of weeks and found that on many days she was unable to get out of bed due to disabling fatigue.
The typical-day history taken in the WCA refers to a typical day out of work. However, a typical day out of work for someone with a long-term condition could be very different from a typical day if they had to travel and complete a full day’s work. One person with multiple sclerosis told the society, “Nothing done in the interview related to my ability or my lack of ability to work. I answered the questions as honestly as I was able, but was not able to stress the fluctuating nature of the symptoms, i.e. yes, I can read, but not for more than a few minutes and then I have to rest”. Another person said, “They have no idea what day with MS is like. They do not know how work would go if one day you can walk but the next you cannot, if one day you pee yourself continually and the next you are okay. Who would employ me? I am constantly fatigued, yet of course the WCA found me fit for work.”
I do not doubt the Minister’s sincerity when he says that his whole motivation is to support and enable people to take their place in the world of work, but how can he hope for this to succeed when the assessment for determining eligibility for universal credit is based on such a flawed, unjust and mistrusted system? As we have heard too many times, 40 per cent of those wrongly found fit for work win on appeal of the decision, and in some areas I am told that the figure increases to 90 per cent if people are represented at tribunal.
Lord Freud
My Lords, I should start by making a point about the overall attitude of the Government to people who are disabled or who have difficult medical conditions. We are committed to unequivocal support for those people, and that is what the support group is about. There is extra funding for the group and we are absolutely determined to provide that support. In the midst of the concerns about particular things, and as we try to make sure that the gateway works and that we can find the people who really need our support, that fact can be lost. However, I want noble Lords in this Committee Room to be under no illusion that we want to support the people who need our support. I have already expressed my concern about the fear factor, which I find very disturbing. I also acknowledge that the press in this country sometimes writes articles that none of us in this room find appropriate. I certainly do not find them appropriate and my colleagues in the department find them deeply disturbing. We do not control the press, regrettably, and things are written that we do not like to see. However, I am pleased to put on the record where we stand.
We debate the WCA a lot. We have debated it in this Committee and elsewhere, but, if noble Lords will forgive me, on this occasion I want to try to keep the debate in the context of the Bill.
The work capability assessment uses a number of specific, measurable criteria, covering all types of disability and health conditions, to provide an assessment of whether an individual has limited capability for work. The assessment was designed to take account of chronic and fluctuating conditions. It is not intended to be a snapshot but looks at what someone can do reliably, repeatedly and safely. It takes account of the effects of pain and fatigue. The healthcare professionals conducting the assessment are fully trained in understanding fluctuating conditions. Claimants get a full opportunity to explain how their condition varies over time.
The criteria were developed in conjunction with disability experts, medical professionals and a significant number of disability representative groups. They focus on physical and mental function. Examples of criteria include whether someone can stand or sit for periods of time, their ability to lift and reach, how they learn new tasks and whether they have problems engaging socially. The criteria fully take account of the fluctuating nature of many conditions. The training and guidance for the assessment is clear that where an individual is unable to complete an activity repeatedly or reliably, they will score points against the relevant criteria.
Baroness Wilkins
Does the Minister accept that he has not yet received the report of Professor Harrington’s working party on fluctuating conditions? There may well be recommendations that he has to make in that regard.
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Baroness Howe of Idlicote
My Lords, this has been an interesting and extremely wide-ranging—
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Lord Freud
As I said in the previous debate, taking on board advice from a claimant’s own medical practitioner and other sources is part of the process here. To pick up the point raised by the noble Baroness, Lady Hollins, for claimants in the work preparation group, we intend to carry forward the current system of home visits to claimants with mental health problems to ensure we understand why they fail to comply. Of course, all sanction decisions can be referred to an independent tribunal, helping ensure we get it right. But equally, we intend to move away from extensive—and ultimately incomplete—lists and regulations. It is impractical for legislation to catch all the relevant matters that may arise in every single case of non-compliance, and the lengthy JSA regulations—which have matters that must and may be taken into account in determining whether a claimant has good reason—are not actually helpful for decision-makers or claimants.
To pick up the point from the noble Baronesses, Lady Meacher and Lady Hollins, on the work capability assessment, we do rely on the WCA and therefore Professor Harrington’s review is critical to help us get it right. Claimants should be placed only in a work preparation or a work-related requirements group where they are capable of meeting these very basic requirements. Once in those groups, clients will need to take account of their health condition. They are designed to take on board all the available evidence on that individual.
The noble Baroness, Lady Hollins, asked what happened with the Harrington review. As noble Lords know, we took on board the entirety of Malcolm Harrington’s first recommendations. The main thing was to empower decision makers to make the right decisions. In response to the question asked by the noble Baroness, Lady Meacher, we have introduced a mental health co-ordinator in each district who has an outward-facing role working with mental health services and an inward-facing role developing the knowledge and confidence of advisers. The other area of Professor Harrington’s advice that was taken up was on improving our communications so that claimants understand the process and the result and are able to add additional evidence if they need to. In response, we have also made improvements in mental health with mental function champions across the network at Atos. Professor Harrington is currently undertaking his second independent review. We are waiting for it, and we will then look very hard at what to do with those recommendations. We will take them very seriously.
Turning to Amendment 51E on work-focused health-related assessments, the noble Baroness, Lady Hollins, will know that these assessments have been suspended because they were not working as intended. We will re-evaluate, as I have already said. I have already offered to write to the noble Earl, Lord Listowel, on care leavers, and I will add that topic to that letter.
I do not want noble Lords to feel that I am being negative in this area, and it is over-easy to think that I am. I have valued the contributions noble Lords have made. I do not see these things as appropriate for the Bill, but I am clearly going to consider deeply the points that have been made today with the aim of applying them appropriately as we implement the system. I value what noble Lords have said. It resonates. We need to get it right. On that basis, I ask the noble Baroness to withdraw her amendment.
Baroness Wilkins
I totally take the fact that the Minister is setting out a system in which claimants should be confident that they are being helped and that that is the purpose of the system. However, does he accept that existing claimants have to overcome an enormous amount of negative experience because of the Atos system so there is an enormous mountain to climb?
Lord Freud
The noble Baroness, Lady Wilkins, makes a point, which we have actually discussed in the Chamber in the past. She knows my concern about this. I think that the Atos and WCA process is genuinely improving now, with the changes that have been made. A lot of the stories that we have are of the system as it was, unreformed. It is gradually improving. That is not to say that it is now perfect—that is not my claim. We are committed to getting the process right, and we inherited that process. I know the concerns that there are, seeing them at first hand in many cases. It is a terrible balance between abandoning people and saying, “You’re out of the economic life of this country” and then trying to pull them in in a coherent way. Getting that balance right, as all noble Lords here today understand, is complicated and a path that we are moving down. But I am determined that we will get to a position where we are doing it with the right balance.
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Lord Stoneham of Droxford
My Lords, I declare an interest as chair of First Wessex Housing Group and chair-designate of Housing 21. I also appreciate the speeches of the noble Baronesses, Lady Hollis and Lady Turner, but underoccupation is a problem when there are great shortages in housing. It is fair to accept that we need to address this problem, but it would be unfair if we do not get right the details for the transition of these proposals.
I agreed particularly with what the noble Baroness, Lady Turner, said, in that we have to accept that we are dealing with people’s homes. They may be social homes or council houses, but they are people’s homes. We are not dealing simply with a marketable commodity. Some 670,000 tenants of working age are affected by these proposals and, as the noble Baroness said, many of the people in these homes are disabled. There are two fundamental problems. One is that underoccupation does not necessarily coincide with where there is the greatest housing need. The other is that the availability of supply to correct the problem is limited. I had the figures that the noble Baroness, Lady Hollis, mentioned but in a different context; I thought that there were 180,000 social tenants underoccupying two-bedroom homes and that if we wanted to move them into one-bedroom homes, in the past year only 68,000 became available. That seems to be a critical figure.
We know that the other problem is that if we drive people out of social housing in the public sector, we may well add to public spending through the higher rents and the allowances that will have to be paid in the private sector. We want to hear from the Minister, in due course if not today, on the need to get the period of transition right to allow people to adapt and for the stock to adapt as well. We should concentrate on genuine occupation that can be corrected, and we should consider leaving out certain categories: disabled people, foster carers and those in supported housing. We should also concentrate on homes with more than two bedrooms that are underoccupied, and we should, as the noble Lord, Lord Wigley, said, look at a programme of bungalows and one-bedroom homes for older people who want to downsize. I have recently been involved in a scheme where people’s pride in their new homes is remarkable. We had to encourage them to move, but when they saw what was available they were very willing and proud to do so. However, if we concentrate now on the transition as the result of all these changes, we shall dry up the number of homes and the capacity to help people who genuinely want to move. Getting the transition right is therefore key to this change.
Baroness Wilkins
My Lords, as my noble friend Lord Wigley suggested, I will leave the arguments about disabled people until our debate on the next group of amendments, and talk first about people who are not able to move because of a lack of supply. The Riverside housing association says that for those who stay put, the loss of benefit,
“will have a very significant impact on household income at a time when tenants face huge pressures from rising fuel and food prices”.
Social landlords house,
“some of the poorest households in the country … Such losses would enforce difficult choices between subsistence items such as eating well, clothing the children and, of course, paying the rent”.
Riverside points out that two-thirds of its tenants have,
“a net household income … of less than £10,200 per annum”.
This will cause devastating hardship.
Lord German
My Lords, I support my noble friend Lord Stoneham in his case for transition. My argument is that if we are going to introduce a policy of this sort, we have to ensure that the social and public housing sector is capable of meeting the changes that are being demanded by the policies of this Bill. Three policy ambitions underpin these clauses. The first relates to the inefficiencies in our social housing sector at the moment and the need to make better and more efficient use of our housing stock, bearing in mind that 7 per cent of homes in the social housing sector are overcrowded and 11 per cent are underoccupied. Already, there is a big mismatch. The second is that we want to increase mobility and strengthen the incentives to ensure that people can move within social housing in order to transfer into work. The third is the ambition to reduce the cost pressures on an ever increasing housing budget. We should remember that in today’s terms the budget has, over the past decade, increased from £14 billion to £22 billion a year, at the equivalent rate today.
My question for the Minister is: how prepared is the social housing sector to meet these changes in policy? If we follow the logic through, we see that there are only three choices that a tenant can make. The first is to pay the increased rent, which we know will on average be £13 a week for a one-bedroom overoccupier. The second is to occupy the spare room, which means either taking in a lodger or having the children back. I guess that some people would not mind having their children back but that others would not want them back at any cost. Whatever the circumstances, is that a realistic choice for many people?
The third choice that people will have is that they can move. In those three choices, what modelling has been done on how many people will make choice one, two or three? The only modelling I have seen has been from the National Housing Federation survey, which is only for part of the country, and they surveyed only 452 people. Clearly, if you are going to have a policy of this sort, the Government must be able to say that they have sought these solutions to ensure that their policy will work.
Lord Boswell of Aynho
My Lords, I rise briefly and somewhat diffidently because I did not have the privilege of hearing some of the earlier exchanges, as I had other obligations at that time. However, I have been listening to the later stages of the debate and before I add one comment to it I want to make it clear that in no sense am I derogatory of the very real problems that disabled people face—and those faced by other people of particular categories, including foster carers and others. Indeed, a good deal of my trade, time, interest and passion in my previous vocation as a Member of the other place was directed towards these issues. Of course they matter, and the people who are experiencing them matter. They have complex and difficult needs.
At the same time, it is worth putting down a marker. My remarks are prompted by those of the noble Baroness, Lady Meacher, about the cumulative effect. Of course, in a sense, I entirely agree with her point about the cumulative effect of changes, but I am afraid that the argument runs both ways. If the effect is cumulative and poses difficulties for the individual, a cumulative set of concessions or changes to the package that the Minister is presenting to us also has implications for public expenditure. In our debates last week on disabled children, I made the point that I regarded their overall position as being one of particular pressure that required the Minister’s attention and the maximum degree of flexibility. While I do not for a moment resile from the arguments that have been put with great passion by noble Lords on the range of difficulties, we will not be able to meet all those requirements within the equal requirement that the Minister and the Government have for economies in public expenditure—and with the commitments that have been undertaken to secure the prize of universal credit.
What we must do—and I will certainly want to listen to the Minister’s answer on this—is ensure that we understand the implications, and that is why debate is so important. We should be prepared to make changes where the shoe pinch is particularly hard or where the interaction that the noble Baroness referred to may have taken place. However, we will not be able to solve all the problems of all the client groups, however good our intentions are, without making it impossible for the Bill to survive and be sustainable. The Minister has to answer in that vein, and I hope that he does so.
Baroness Wilkins
My Lords, further to the comments of the noble Lord, Lord Boswell, I ask him whether it is fair that this group of people should be asked to pay for the country’s deficit. It seems to fall particularly hard on this vulnerable group of people.
I support the solution of noble Lord, Lord Best, in these amendments and, if not, I support all the exemptions that have been spoken about, particularly those in relation to disabled people. It is very hard for non-disabled people to recognise how important our homes are to us, particularly when you can get into few others. The way that our homes are configured and designed means that they either enable us to live independent, contributing lives or completely disable us. The two steps that were in my house, as they are in every other house in my street, would completely have disabled me had they not been removed. They would have meant that I needed help from someone else to wash or to provide my food. I would not even have been able to answer my front door to take in a parcel from a neighbour. They would have removed any ability for me to contribute to my community.
Lord Freud
I would be happy to circulate the information to noble Lords.
On the social sector size criteria measure that we are introducing through Clause 68, we will use the time before its introduction in April 2013, as we are already doing, to explore fully the implications for claimants and landlords. We acknowledge that the impact will not be the same across all regions; we will work with stakeholders to look at those variations as we move towards implementation.
Let me repeat: I value these debates and hope that they continue on a constructive level as we move forward.
Baroness Wilkins
Could I just return to the issue of disabled people? I am delighted to hear that he is willing to think again about fostering, but I am very disappointed by his reaction in relation to disabled people and feel that he has failed to recognise their situation. He says that the amendments have been drawn too widely. Could I press him on what he would feel was acceptable?
Lord Freud
My Lords, I hope that I am indicating that we are looking very hard at what proposition we can bring forward later on in this process of considering this Bill to deal with that particular set of problems that noble Lords have raised. So I will have something to say later on in the process.
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Lord McKenzie of Luton
My Lords, Amendment 2 seeks to attach a clear but succinct purpose to the universal credit; that is,
“to support work for those who can and provide security for those who cannot”.
Much of the focus of our discussion about the universal credit is on the former, helping people into work and closer to the labour market, but there is an obligation also to help those individuals and families for whom work is, for one reason or another, not currently reasonably practicable. We subscribe to the view of the importance of work in helping people out of poverty, in the development of their self-esteem and, as per Waddell and Burton, as being generally good for their health. This has the potential to translate at the macro level to the prospect of lower benefit costs, higher taxes and national insurance and, other things being equal, higher growth. That approach characterised the reforms, which I will call welfare reforms notwithstanding our discussion last Tuesday, of the previous Government and this Bill is a significant development of that trend. Of course, the Minister has been present in both of them.
Contrary to popular belief, it might be contended that receiving financial support from the state when unemployed and unable to work is harder now than at any time for 60 years—that is certainly the view of the Child Poverty Action Group—because the eligibility criteria for benefits have been heightened, benefits are more conditional on actively seeking work and there are tougher sanctions for non-compliance. Some of this happened on our watch as a Government and universal credit provisions go further and, in some respects, too far. We will discuss this when dealing with later clauses, but we support the concept of good and clear work incentives. We also support the requirement for those who can work to meet their obligations. There are some who need to rely on benefits and who do not lack the motivation to work, who see the benefits of work even with existing incentives. As we go through the Bill, we will seek to test that the new universal credit works for them also. These include those with caring responsibilities and health conditions, but also those who simply cannot get a job, be they from Bombardier, BAE systems, or, indeed, anywhere else.
It is worth reminding ourselves of what has gone before. If we look at the recent history of welfare reform, the Welfare Reform Act 2007 introduced the employment and support allowance and the personal capability test; the report of the noble Lord, Lord Freud, focused on the large-scale marketisation of employment services; in 2008 we saw the employment and support allowance introduced; we saw lone parents move off income support and onto jobseeker’s allowance and flexible New Deal pilots introduced to replace the New Deal 18-24 and New Deal 25+. The Welfare Reform Act 2009 established a structure for the future abolition of income support, the progression to work conditions for lone parents and partners of unemployed people, and the extension of work-related activity for employment and support allowance recipients. So hitherto an increasingly active regime has been developed. As I say, we support the concept of good and clear work incentives. We also support requirements for people to meet their obligations.
Of course, the “work first” approach is not the only model of support that countries have adopted. The “human capital development” approach would be claimed by some to be a more effective approach. The Minister often talks about universal credit as engendering a cultural change in attitudes towards work, and that is fine, but he will be aware that in some countries benefit conditionality is also being used to leverage non-employment related outcomes, such as health outcomes and child welfare outcomes. This happens in the US and Australia in particular. I understand that the Secretary of State has recently been on a trip down under. We see speculation in the press that Ministers are turning their minds to benefit sanctions, as the noble Lord, Lord Kirkwood, said on Tuesday, to address a range of other problems. Can we have some clarity on this today, and will the Minister confirm that there are no plans or intent to follow the Australian path and use conditionality for anything other than employment-related outcomes?
It would be extremely helpful when Ministers, including the Prime Minister, are discussing changes to conditionality that they do so in a measured way to avoid creating the impression that everyone on benefits is seeking to avoid work. In his speech to the Conservative Party conference, the Prime Minister said:
“For years you’ve been conned by governments. To keep the unemployment figures down, they’ve parked as many people as possible on the sick. Two and a half million, to be exact. Not officially unemployed, but claiming welfare, no questions asked”.
Nobody who has any knowledge of the benefits system could reasonably accept that as a fair representation of the situation in recent years. When we left Committee on Tuesday last week, there was a headline in the Evening Standard saying that people would have to travel for up to 90 minutes to take up work. Can the Minister say how conditionality is to be amended in this way? If everyone is to be better off in work, will this be before or after travel costs?
Of course, the universal credit is being developed in a period of rising unemployment. I do not propose to open the wider challenge to the Government on their growth strategy this afternoon, although we may drift into that, but we should use this opportunity to seek to understand how the “work first” approach of universal credit is being complemented by the work programme—the “black box approach”, which I believe is entirely appropriate.
Perhaps the Minister would take this opportunity to update us on the programme, particularly as we understand that providers are being sworn to secrecy about how it is all going. In the interests of transparency, perhaps the Minister could tell us directly how many individuals have been referred to the work programme to date, clarifying which of the eight categories they fall into. Can he also tell us a little about how the WCA and the role of Atos Healthcare are feeding into all of this? We are aware of the improvements to the WCA and Professor Harrington’s ongoing work. However, is it right that individuals are being referred to the work programme if the prognosis is that they will be fit for work in three months? Are we comfortable that the precision of “fit to work” within three months, six months or any other time period is within the competency of those making the assessment?
If this benefit is to work, it must work for all—this is very important. It must be free from stigma, and it must work in a fair yet firm way. I beg to move.
Baroness Wilkins
My Lords, I support the amendment, especially to say that it should benefit everybody. The simplification of benefits and plans to taper income to ensure disabled people who can work retain more of their income has been welcomed. However, there is very deep concern in the disability community that while some disabled people will gain under the universal credit, many will be made considerably worse off. In its current form, the Bill will dramatically increase disability poverty and leave many thousands of families lacking essential support.
At the moment, a disabled person receiving middle-rate disability living allowance who is found fit for work is eligible for the severe disability premium of £55 a week, whether they are working or not and if they live alone and do not have a carer. They may also be eligible in some circumstances for the disability premium of £29 per week as a single person and £41 per week for a couple, as well as the disability element of working tax credit, which is about £50 per week if they work for at least 16 hours per week. It is not unusual for someone to be eligible for middle-rate care, but to be found fit for work. For instance, it would apply to me because I can self-propel my manual wheelchair for 50 metres. Similarly, someone who is severely visually impaired from birth is quite likely to receive middle-rate care, but be found fit for work.
However, under the universal credit, the gateway for extra support for disability will not be through DLA—or in future PIP—it will be through the work capability assessment conducted by Atos for the employment and support allowance. Under the universal credit system, unless a disabled person is put in the work-related activity group or the support group, they will get no more extra help than someone who is not disabled. These people are still disabled. They still face all the extra costs of disability not met by DLA; for instance, the need for extra help with housework, extra heating, extra laundry, help with the garden if they are lucky enough to have one. We also know that disabled people are more likely to have lower earning power and to be unable to work full-time. Let us face it, in the current economic climate, few employers are going to choose to employ disabled people over the non-disabled, and yet those people are going to lose any extra help because the universal credit will be based on the extremely flawed Atos assessment.
Noble Lords will no doubt have been inundated with e-mails and letters about this as I have, demonstrating that Atos is routinely failing to identify disabled people’s needs. I am sure the Minister will remember from his visit last week to Hammersmith and Fulham Action on Disability a young woman with mental health difficulties. She had spent six years struggling to find help. She finally managed to get therapy about six months ago, and has been progressing well when she innocently attended her Atos assessment, not realising what she was up against. Atos found her fit for work. All her benefits were stopped as of last Friday and her mental state has been set back by months. She is now in debt for the first time and she is distraught.
I know the Minister is very concerned about disabled people’s fears. As he said on Second Reading:
“The most disturbing thing that I heard today was the concerns of many noble Lords about the anxiety of disabled people”. [Official Report, 13/09/11; col. 737.]
The noble Baronesses, Lady Murphy and Lady Gale, talked about how people were terrified or petrified, and that worries me more than anything I have heard. However, those fears are very justified unless this Bill is amended. I know we will come back to this many times during the course of the Committee, but will the Minister say what steps he is taking to ensure that disabled people’s fears are met? Is he considering the proposals by the Disability Benefits Consortium, for instance, to retain the severe disability premium? Does he recognise that the universal credit risks oversimplifying needs by providing for only one disregard which ignores some disabled people’s multiple levels of disadvantage? I hope he will reconsider.
Lord Freud
“Soon”, you can measure in weeks; “very soon”, you can measure in days. Well, let us say that noble Lords in this Committee can.
To pick up the point made by the noble Lord, Lord McKenzie, on the application of conditionality; in the Bill conditionality is linked only to employment outcomes, but any responsible Government will always want to look at options for achieving other outcomes for individuals, taxpayers and society as a whole. Indeed, I remind the noble Lord that the previous Government tried sanctions as a way to improve compliance with community sentences.
On the related point of the noble Baroness, Lady Hollis, on IB and ESA numbers, I need to point out that the numbers were pretty much the same in 2008 and 1997. I welcome her focus on reducing inactivity. That is exactly the right thing. One can get pretty historical going over who is to blame or who is not to blame. This is the situation we are in and I do not think that any Peer in this Room would disagree with the proposition that we now have a benefits system that traps people in inactivity through its structure, and certainly one that does not apply substantial help to people to get out of that trap. She asked me to acknowledge the continuity between the two Governments, and I am pleased to do that. I can absolutely confirm that the design of the work programme, for instance, is very much based on the fact that the employment zones pilot initiated by the previous Government was clearly the most successful pilot. We picked that up, effectively, in the work programme and made it a national programme.
While the aim is clearly to help as many people into work as we can, universal credit will also provide for those who cannot work. We have ensured that it is specified in the Bill that a number of groups will receive unconditional support without having to meet any labour market requirements. This will include those assessed as having limited capability for work and work-related activity; claimants with regular and substantial caring responsibilities; and lone parents or nominated carers with a child under the age of one.
In terms of benefit payments, the structure of the benefit is similar to existing provision for people who are out of work. We have announced changes where we believe change is needed, and the Committee will be looking closely at specific points, such as disability support, housing benefit and the household benefit cap, when we reach the appropriate clauses.
It is important to be clear from the outset that universal credit is overwhelmingly not about taking money away from people who are out of work. That much is very clear from the impact assessment, which shows that the majority of losers are people in work, many of whom have higher earnings. As I said on Tuesday, I hope that an updated impact assessment will be available soon, but the fact is that most workless people are not losers and the overall impact of the reform is progressive.
I shall here refer to the important matter raised in particular by the noble Baronesses, Lady Campbell and Lady Wilkins, of the work capability assessment. We continue to work with Professor Harrington to ensure that that assessment works effectively. Clearly, he is involving disability groups in that development in a very proactive way. I obviously know the concerns of disability organisations in this area and I will aim to explain that in much more detail when we get to Clause 12, if that would be acceptable to noble Lords. It is also slightly misleading to talk about losers when we have a package of transitional protection to ensure that there are no cash losers as a direct result of the migration to universal credit, where circumstances remain the same. I understand that noble Lords are concerned that any claimants should be worse off under universal credit, but the fact is that we cannot simplify the system while retaining each and every element of all the existing benefits. That would be simply unaffordable.
If I can touch on the introduction of the PIP on carers, which was raised by the noble Baroness, Lady Hollis, and my noble friend Lord Newton—
Baroness Wilkins
Does the Minister not accept that some disabled people in work are going to be significant losers as a result of the universal credit? They will be deprived of what they currently get—the £55 a week severe disability premium. That is why the organisations are so concerned. While there may be transitional arrangements, what about the people who come after the transition? The transition is only for now.
Lord Freud
As we restructure the benefits, the out-of-work benefits remain essentially the same. We are making some changes to simplify those, which we will come to in some detail, but rather than taking one aspect I would like to deal with the whole of this at the right time and take it through. I take the point and I will go through it in great detail when we come to the adjustments in the structure of disability benefits. I think it will become a bit random if I just deal with that now. I hope the noble Baroness will forgive me. I am not dodging it; I just want to put it in the proper context.
I want to pick up the point about the entitlement for carers related to PIP and how that will work. Today, all I can say is that we are looking at this issue very carefully. Again, I propose to discuss this in great detail when we get to Clause 75. It is a most important issue in this legislation.
We cannot afford not to simplify, as there is clear evidence that complexity within the existing system is acting as a barrier to work. It is also, interestingly, a barrier to take–up—again the impact assessment shows the clear gains for thousands of individuals that we expect from increased take-up. The analysis of the existing impact assessment shows that two-thirds of the reduction in poverty that we are looking at is a result of take-up rather than the structure of the Bill. We are not expecting that effect to change significantly when we have the new impact assessment soon.
In our proposals for a simpler benefit we think we have got the balance right between promoting work and providing security. I understand that noble Lords may disagree with us on specific issues, but I hope they will accept that the overall purpose is not in doubt. On that basis I would urge the noble Lord, Lord McKenzie, and the noble Baroness, Lady Hayter, to withdraw their amendment.
Welfare Reform Bill
Baroness Wilkins Excerpts(13 years, 2 months ago)
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Baroness Wilkins
My Lords, I, too, declare an interest as I have received DLA since its inception. Luckily, having reached the age of 65, I will escape the Government’s proposals for the time being. When I became disabled in the mid-1960s, just about the only disability support on offer to take part in everyday life was an invalid trike—the blue Noddy car. For me, that symbolises what was then the extent of expected integration. Little was expected of disabled people and unless your family had money and resources you led a very limited life. Disabled people had low expectations and were not much in evidence.
Over the following years, political pressure slowly increased with the rise of the disability movement and the range of support needed by disabled people to become contributing citizens began to be addressed. The Noddy trike morphed into the mobility allowance, then into DLA, which added personal care, and that developed into incorporating people with communication needs and learning difficulties, lacking arm movement and so on, until most recently when blind people became entitled to the high rate for mobility and care.
That support is what has enabled disabled people to work and contribute to their communities. It is why you see disabled people on the streets, living independent lives. We now expect to be treated as equal citizens. The lengthy DLA claim may not be simple but it represents progress. It reflects the very real complexity and diversity of the extra support needs of disabled people’s lives. Disability living allowance is a complex benefit because disability is hugely complex and any reform needs to be done with great awareness of that complexity if it is not to leave disabled people more deprived and impoverished, denying millions the hope of living the independent lives that we have come to expect.
That awareness is sadly lacking from this Bill, as we heard from the noble Baroness, Lady Campbell, just now. As all noble Lords’ post bags and mail boxes have shown, disabled people live in great fear of it being enacted. There are many issues concerning the introduction of PIP which we will need to return to in Committee. For now, I draw attention to just one, in Clause 79. That proposes to double the current qualifying period for eligibility for support from three to six months. The Disability Benefits Consortium is concerned that this will diminish the preventive impact of DLA, pushing many more people into debt as they try to manage the costs of their impairment. As the noble Baroness, Lady Morgan of Drefelin, so eloquently pointed out, Macmillan Cancer Support and other cancer organisations are particularly concerned that it will have a devastating impact on disabled people who have sudden onset, long-term conditions such as cancer, stroke and spinal cord injury.
The first six months of these conditions can be the period when extra costs, especially for travel and parking for treatment and family visits, are greatest. Specialist treatment centres are often far from patients’ homes. Macmillan Cancer Support cites a cancer patient in Devon who regularly had to travel 125 miles for radiotherapy. The Minister for Disabled People has made it clear that the proposed change in the qualifying period is not financially driven but to align the definition of long-term disability in the Equality Act. Will the Minister reconsider allowing people with certain conditions, who face the sudden onset of a disability and immediate additional financial costs, to receive an early assessment for PIP?
There are so many aspects of this Bill which will have a disproportionate impact on disabled people and I hope to take a full part in Committee in trying to alleviate them. For now I will concentrate on the proposals for housing.
The Bill’s proposal for a household cap on benefits comes in addition to the local housing allowance caps being introduced from this year. As we have heard, according to leaks from the DCLG, officials estimate that this will make 20,000 families homeless, forcing people to move away from their support networks, moving children from school and pushing families to places with lower rents—lower rents because there are fewer jobs.
This second wave of cuts to housing benefit will undermine the housing safety net for people who lose their jobs and need temporary financial help so that they do not lose their home as well. It will affect people who are working, but who are on very low incomes, as well as those unable to work, and that, of course, means that it will disproportionately affect disabled people. Shelter, among other organisations, has called for housing benefit to be removed from the housing benefit cap. What is the Minister’s response?
There are harsh new size criteria on all working-age tenants in social housing who receive housing benefit. The Bill allows the Government to reduce the amount of housing benefit to people of working age in social housing if they are considered to be underoccupying their property. The callousness of these criteria is chilling. Each person or couple living as part of a household would be allowed one bedroom, except for under-16s of the same gender and under-10s of different genders who would be expected to share bedrooms. If the household is judged to be underoccupying its home by one bedroom it would lose 13 per cent of its housing benefit, but it would lose almost a quarter— 23 per cent—for two or more bedrooms.
Think what this means for couples who are in ill-health and are having disturbed nights from severe pain, constant coughing or laboured breathing, when the only thing that keeps that relationship from breaking is the possibility of a night's sleep. Two-thirds of the people who will be affected are disabled, which is almost 500,000 people, according to the equality impact assessment. With disability come large items of vital equipment: mobile hoists, bulky wheelchairs and their spares; exercise equipment; oxygen storage; and boxes of incontinence supplies. Where are they to be put if a couple has just one bedroom? What of disabled people who need an overnight carer? Is the carer expected to sleep on the floor? It is estimated that 100,000 of the disabled people who will be affected currently live in homes that have been specially adapted for their needs. If they are forced to move, new adaptations would have to be paid for, if they are not to be homeless, so what saving would the Government be making from this measure?
I believe that disabled people have every reason to fear this Bill. Its most alarming aspect is the Government’s willingness to risk the consequences of such a massive change. With their heavy reliance on secondary legislation, they cannot know the full impact of their proposals or how they interact with each other. We know from the equality impact assessments that disabled people will bear a disproportionate amount of the cuts and that no mitigating action is proposed. I hope that we can take that action in Committee.
Disabled People: User-led Organisations
Baroness Wilkins Excerpts(13 years, 5 months ago)
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Baroness Wilkins
I, too, thank my noble friend Lady Wheeler for her kind words, and for securing this debate on a subject that, at its heart, is one reason why I became a Member of your Lordships' House. I declare an interest as vice-chair of my local borough disability user-led association—Hammersmith and Fulham Action for Disability, or HAFAD. I would like to say how delighted we are that, following the debate on 5 May, the Minister accepted our invitation to visit.
I became disabled the year the Disablement Income Group, known as DIG, was formed by two women who had developed MS and found that they, and thousands of others, had no right to any income support. That was 1966. That user-led organisation is seen by many as the start of the disability movement in Britain, a movement that has led millions of disabled people to recognise that our position in society is politically driven and that society could be changed to accommodate our needs.
Unless you have experienced disability, you cannot understand its daily living reality, and I came to it with the same ignorance as most non-disabled people. DIG, a mass movement of people over the whole range of impairments, was fighting for the extra costs of living with a disability to be recognised and for an income benefit to be given regardless of the cause of impairment. There were rallies in Trafalgar Square, petitions to Parliament and lobbying of Ministers. DIG introduced me to political campaigning, but, most importantly, it welcomed me to a world of people who had faced and were living with the same experiences as me. It was to those people whom I turned for help and information about housing, about how to get around, about places that were accessible and about how to find equipment that I could use, whether it was an accessible car or a manageable ironing board. My fellow disabled people had been there before, knew the real barriers to be overcome and had found solutions.
It is this shared lived experience that is the unique value of user-led organisations. It is a value to which policy-makers pay lip service but which is far too easily overlooked and jettisoned when it comes to the crunch, especially funding. It is very hard to convey how important this is, but it provides a quality of help and support that no one else can give. The noble Baroness, Lady Wheeler, has eloquently expressed how important it was to her. The Government need to understand and constantly reinforce its value if services are truly to meet people's needs.
This is the unique value of the small user-led local organisations for disabled people such as HAFAD, many of them centres for independent living. As the noble Baroness, Lady Campbell, said, its importance was recognised by the previous Government's Strategy Unit report, Improving the Life Chances of Disabled People, which recommended that there should be a user-led organisation, modelled on existing CILs, in every social services area by 2010. Does the Minister still see the value of that recommendation, and would he support it?
I shall concentrate on the experience of these small local organisations and on what the Government can do to support them. The local disability organisations have been the drivers in developing the independent living services throughout the country. The take-up of direct payments succeeded because user-led organisations understood what was needed in order for them to succeed. They provided the necessary assistance in recruiting and employing personal assistants, payroll services, information, advice and advocacy, but, crucially, they provided the confidence through peer support and local networks.
Since direct local authority grants dried up, HAFAD, like many borough organisations, has derived the majority of its funding from providing these services to the council through service level agreements. However, the larger profit-making providers see the market in this work and constitute a major threat to our existence. With their lower overheads, they can undercut small user-led organisations such as HAFAD.
Now, to save money, local authorities are increasingly banding together to award contracts. Currently, HAFAD's direct payment support service is faced with the prospect of tendering for a new contract to be spread over four boroughs—Hammersmith and Fulham, Kensington and Chelsea, Brent, and Hillingdon. It would be impossible for us to cover that area or for anyone to provide the essential local support.
One of the most important things that the Government can do is to ensure that the importance of local user-led support is given its proper value in competition for contracts. Perhaps I may echo my noble friend Lady Wheeler in asking the Minister what the Government will do to ensure a level playing field between the small user-led organisations and their larger, profit-making counterparts when it comes to commissioning.
HAFAD’s excellent employment project, which was succeeding in getting disabled people who had never had any prospect of work into work after long periods of unemployment, has already been lost to the big contractors that won all the Work Choice and Work Programme contracts. As a result, we had to lay off all the staff except the manager, and we are using the organisation’s reserves to fund his search for subcontracts. In west London, the Work Choice contract went to Seetec, which has subcontracted to Leonard Cheshire, among others. Leonard Cheshire has now approached HAFAD for help with its delivery in west London and has asked for training in our access-to-work expertise, as it does not have specialist knowledge. So the user-led organisation is bled dry of funds and staff, while supporting others to provide a service, when it could have been given the security of a contract in the first place. User-led organisations can provide this expertise only if it is properly recognised and valued, and the Government could have helped by making it a requirement on the winning contractor to work with specialist organisations at a local level.
The problem is that the small user-led organisations survive only by a jigsaw of funding of these projects. If one project goes to the wall, it undermines the framework of the whole organisation because it is almost impossible to get funding for the running costs of an organisation either from trusts or local authorities, so a charge has to be made on each project to cover those costs. If a major project is lost, the whole organisation becomes vulnerable. Yet the organisation has to have a director and finance officer if it is to be competently managed and have proper financial control. Can I ask the Minister whether the Government have any plans to address this problem?
Like many organisations, HAFAD has been trying to become self-sufficient through social enterprise schemes and partnerships. Not only is there the problem of the extremely stretched management framework of the organisation, which leaves little time to develop social enterprise, but small user-led organisations have no assets to provide collateral for bank loans. Major fundraising requires a massive investment of time, and these organisations can turn only to government to provide the seed money required. I hope that the Government are listening.
I add my tribute to Nasa Begum for her wonderful contribution to spreading understanding of the value of user control, and most especially for being the only wheelchair user I have known who went bungee-jumping in a wheelchair in Australia.