Social Security (Disability Living Allowance, Attendance Allowance and Carer’s Allowance) (Amendment) Regulations 2013

Lord Alton of Liverpool Excerpts

Monday 24th June 2013 Lords Chamber

Moved by

[Lord Alton of Liverpool]

That this House regrets that the Social Security (Disability Living Allowance, Attendance Allowance and Carer’s Allowance) (Amendment) Regulations 2013, laid before the House on 4 March, will result in the loss of Motability provision for many disabled people; and that this House considers that transitional arrangements should be put in place urgently. (SI 2013/389)

[Lord Alton of Liverpool]

My Lords, the House will be aware that this Motion of Regret refers to the Social Security (Disability Living Allowance, Attendance Allowance and Carer’s Allowance) (Amendment) Regulations 2013. My three particular concerns, referred to in earlier debates, relate to: first, the way in which the changes in regulations will impact on the support which disabled people need to ensure mobility; secondly, the role of Atos Healthcare in assessing those who will be reassessed for PIP as a consequence of the changes; and, thirdly, the 20/50 metre criteria used for enhanced personal independence payment.

On the latter question, I begin at least with a welcome for the Government’s decision to consult, over the summer, on the 20/50 metre criteria for enhanced PIP. I hope that the Minister will be able to assure the House that this will be a genuine consultation and not simply a paper exercise, going through the motions, to avoid judicial review. In a Written Answer on 13 February, the Minister said:

“Once PIP legislation is in place, any consequence of a failure to meet the entitlement conditions for the enhanced mobility component would not result in a judicial review as long as the legislation was applied fairly to the claimant. We have robust dispute resolution procedures in place to ensure that this is the case”.—[Official Report, 13/2/13; col. WA 157.]

Presumably, the new consultation is a recognition that the earlier announcement was not based on fairness. If this really is to be a genuine consultation this time, and the new regulations applied fairly to each claimant, the Government will need to assure us that they will publish the responses to their consultation and explain the reason for their eventual decision. Will the Minister outline the procedure that will be followed? Until the consultation has been undertaken, how will current claims be assessed? Which rules will apply? What will happen to those claimants if the consultation determines that the rules have to be changed?

There are two other two issues which I want to explore: the impact on disabled people’s mobility and the role of Atos Healthcare. On February 25 last, with the support of my noble friend Lady Grey-Thompson, who has been unable to join us this evening because of pressing family commitments but who wishes to be associated with these remarks, I moved an amendment in Committee to the Welfare Benefits Up-rating Bill. My amendment was a plea to the Government to think about providing a transitional arrangement—perhaps at least a two or three-year period of grace—for those who already have vehicles and who risk losing them. Prior to that amendment, on 17 January, 24 January and 13 February, and in a series of Written Questions, I pressed the Government about the impact of their proposals on disabled people.

Subsequently, on 30 April, the Minister for Disabled People and Member of Parliament for Wirral West, Esther McVey, met my noble friend Lady Grey-Thompson and me, along with Jane Young, who has done a great deal of work in ensuring that this issue does not slip from sight. The Minister told us that the DWP would be announcing its own transitional arrangements this month. Can the Minister tell us what has happened to them? Since our meeting, Ms Young has been told that the department’s transitional arrangements would be reworked into joint transitional arrangements with Motability. Can the Minister can tell us whether that is so? How will that assist those who use their higher-rate mobility component on an alternative means of independent mobility other than the Motability scheme? I hope the Minister will be able to tell us.

During those discussions we made the point, which I reiterate tonight, that this is not a trivial issue. According to the noble Lord, Lord Sterling, who does such admirable work chairing Motability, there are 620,000 Motability vehicles on the road, which he says is probably the largest fleet of such vehicles in the world. That figure simply refers to Motability vehicles, not to the significantly larger number of people who rely on other forms of transport to ensure a degree of independent living. The Government have been unable to tell us, throughout these debates, how many people will have their vehicles sequestrated or repatriated and how many people who currently receive help with transport will lose access to that help. My noble and learned friend Lord Hardie has also been attempting to extract information about the numbers of people. Members of your Lordships’ House will have seen his recent Written Questions about this. I suspect that obtaining that information has been rather like drawing teeth.

I for one do not believe that Parliament has any business enacting government policies without knowing what the full effect will be of their proposals. For Parliament to be asked to walk blindfolded into decisions will undoubtedly result in some Motability users having their specially adapted vehicles repossessed. That is simply unconscionable and deeply irresponsible.

Although I am appreciative of the time that Esther McVey spent with my noble friend and me, I freely admit that I am still no wiser about the number of people who will lose their vehicles or be affected by these changes. The detail of the Government’s proposals is still inadequate; we simply do not know. The inadequate consultations match that. The transitional arrangements which are to be put in place by both Government and Motability are simply in the ether. We do not know what they are. It is for that reason that I tabled this Motion of Regret this evening and to ensure that the noble Lord, Lord Freud, who has spent a lot time on these questions, has the opportunity to come to your Lordships’ House to explain in more detail and answer some of these questions.

On 17 January I asked:

“Can the Minister confirm the Government's own prediction, made earlier this month, that 27% fewer working-age people will be eligible for the Motability scheme once PIP is fully rolled out? Disability organisations say that the new proposal means that 42% fewer disabled people of working age will be eligible—an average of 200 people in every constituency”.—[Official Report, 17/1/13; col. 818.]

I received no reply on that day but on 13 February the Minister told us:

“Yes, my Lords, there is some churn”.— [Official Report, 13/2/13; col. 742.]

He also said:

“My Lords, we know how many people will get the higher mobility component, a figure that will clearly be fewer under PIP than under DLA. I have provided those figures but, just for the record, the figure of roughly 1 million people on the DLA component in a steady state will reduce to roughly 600,000”.—[Official Report, 13/2/13; col. 741.]

How does that translate into repossessed vehicles and into the loss of Motability support?

Let us be clear. One third of disabled people live in poverty. Some claimants will lose as much as £150 per month if they fail to meet the newly tightened criteria, an annual loss of around £1,800. Their situation will be unbelievably bleak. On the other side of the coin, Oxford Economics estimates that the mobility provided for disabled people contributes to our nation’s economy by the equivalent of £1.3 billion every year, as I pointed out in an earlier debate after being referred to the document by the noble Baroness, Lady Hollis.

The Disability Benefits Consortium, which represents more than 50 disability rights groups, reminds us that it is not just about the positive contribution made by disabled people. Motability vehicles are,

“their means of independence and participation, the lifeline that enables them to get to work, to GP appointments, to the shops or to take their kids to school”.

We simply do not know what is going to happen to people, some of whom have had very expensive adaptations to their vehicles, and who will be left without an adequate method of getting around. We especially do not know what the effect will be on people living in places where public transport is not easily available or accessible. As my noble friend Lady Grey-Thompson told the House in February:

“The short timescale between notifying someone of their car being removed and it being taken away could make life extremely difficult. Without some further protection, it could lead to chaos for many disabled people”.

She continued:

“At the briefing that was held on the PIP regulations on 22 January 2013 with the Minister, the noble Lord, Lord Freud, and the Minister in another place, Esther McVey, it was my understanding that the timescale for someone having to return their car if they were no longer eligible for PIP could be relatively short, perhaps just a matter of a few weeks”.—[Official Report, 25/2/13; col. 937.]

Can we now have further clarity on the timescale? I should be grateful if the Minister would remind the House how much public money is provided to Motability each year and tell us what discussions the Government have had with Motability about transitional arrangements and a package of support.

--- Later in debate ---

[Lord Freud]

My Lords, I do not think we have time to debate what heavily adapted comprises. However, the figure for cars heavily adapted for a disabled person is 2%. Clearly, we all personalise cars to some extent. I can let the noble Baroness have some more information on that to the extent that I have it, but that is the figure that I have. I confirm that the noble Lord, Lord Sterling, is looking carefully at how Motability can help to mitigate the impact for those who may be affected by the move to PIP.

[Lord Alton of Liverpool]

Before the Minister leaves that point, will he tell us a little bit more about what he is doing to create joint transitional arrangements, if that is what they are to be, with Motability, and when they will published? When will opportunities occur for people to be consulted and to respond to the consultation?

[Lord Freud]

My Lords, we are working with Motability currently on what the arrangements might be. I have no information at this stage on where we are with those discussions between the department and Motability, but clearly we are in discussions. I am not informed as to when I can update the House on that matter.

On the judicial review, as noble Lords have seen, there is a consultation on the 20 metre/50 metre issue. I can assure my noble friend Lady Thomas that this is a genuine consultation which we are entering with an open mind and we will be looking to hear the views of individuals and organisations. Once that consultation is closed, we will publish our response, including how we intend to act.

The noble Lord, Lord Alton, referred to changes to Atos’s supply chain since the tendering stage of the PIP. I assure noble Lords that the department’s decision to award the contract was not based on the mention of any particular organisation in the bids to deliver the PIP. It is usual for there to be changes between contract award and delivery. Indeed, we expect Atos’s use of supply chain sites to rise and fall in line with referral numbers. The department made a change to the reassessment timetable after Atos submitted its tender, which means that there will be significantly fewer assessments in 2013-14 than it had originally planned. However, it is important to note that Atos has kept the department informed about changes and we are confident that Atos and its partners are able to deliver successfully.

The noble Lord asked about the £391 million that the Government are said to have given Atos over three years. I do not have that information to hand but I will write to him on that matter.

[Lord Alton of Liverpool]

I am grateful to the noble Lord. He will recall that I also asked him specifically whether the 60 minutes’ travelling distance which Atos had said would be the maximum that people would have to travel to an assessment centre will be maintained or whether it will now be extended to 90 minutes, as has been alleged. Will the total number of assessment centres be reduced from the number I cited earlier to just a handful?

[Lord Freud]

I remind noble Lords that Atos tendered for four of the contract areas and received two, so it is not surprising that the 22 sites it was looking at have been reduced, given that it has a smaller number of contract areas. My information is that the 22 figure has gone down to 14. I will add to my letter any information I have on travel times estimates.

In summary, this issue is about balance and fairness—fairness to those who have a Motability vehicle and to the substantial majority of mobility component recipients who do not. However, this is fairness tempered with appropriate mechanisms to ensure that the impact on existing and future users of the scheme is minimised. Specific transitional arrangements are in place for those directly impacted when the measure was introduced and there will remain appropriate and generous provisions in the future. I commend the hospital in-patient arrangements to the House and trust that they have reassured the noble Lord, Lord Alton, and that as a consequence he will not press the Motion.

[Lord Alton of Liverpool]

My Lords, as always, I am grateful to the Minister for the way in which he answered the questions that were put to him, although I think he would be the first to agree that a number of questions raised during the debate remain unanswered. However, he will also understand that, although the measures may be narrow, parliamentarians have to take their chances. If they can find a hook on which to hang their coat, they are obliged to do so. That is surely part of our role as scrutineers. Your Lordships will be glad to know that I do not intend to drag this out although there is no time limit. Even though this is a dinner hour debate, we could have gone on for much longer. I think those taking part in the following debate will recognise that we have been pretty disciplined in the way that we have gone about this.

The issues that we have covered range from the disproportionalilty in the way that these changes will affect rural areas and poorer areas and concerns about the statistics that have still not been shared with us. We do not know the number of people who will be impacted by these changes and the cost of the vehicles, which was a point made by the noble Baroness, Lady Wilkins. Will it cost between £8,000 and £12,000 for someone to purchase one of these vehicles—a vehicle that had been made available to them previously by an Act of Parliament? It was an Act of Parliament that laid down the criteria under which people qualified. Surely we are guilty of behaving without due concern for the effect of the changes that we have put in place.

I repeat what I said in our deliberations earlier this year. It is our duty to understand the impact of the decisions we make. The Minister has just said that we cannot reliably estimate the impact; we do not know. That is not a good position for us to be in. Decisions will affect the mobility and independence of people with disabilities. The noble Baroness, Lady Hollis, put it very well when she said that you turn a person from being independent to being dependent when you take such decisions.

Just as we found a way of encouraging the Minister to come to the House this evening, I know that I and other Members of your Lordships’ House will look for other ways of holding the Government to account to ensure that we mitigate the worst effects of these changes. On the basis of the reply that has now been given, I beg leave to withdraw the Motion.

Motion withdrawn.