Welfare Benefits Up-rating Bill

Lord German Excerpts

Monday 25th February 2013 Lords Chamber

[Baroness Meacher]

My Lords, I support Amendment 2, moved by the noble Lord, Lord McKenzie, to which I added my name, and Amendment 3, spoken to by the noble Lord, Lord Low. The Minister, the noble Lord, Lord Freud, consistently argued during the passage of the Welfare Reform Bill that there were two fundamental principles to the Government’s welfare reform provisions. One was to make sure that people in work had an incentive to remain in work and that those out of work had an incentive to move into work. The second principle was that the money available, however much there was available, should be focused as far as possible on those in greatest need. Throughout the debates on the previous Bill, I found myself very much in agreement with those two principles. It seemed to me that if money is short, at least one should abide by those two principles. That seemed very reasonable.

I find myself therefore confused that in this Bill those two principles appear to be breached. It does not seem that you are focusing on those in greatest need if there is an impact that reduces in real terms the living standards of people who are severely disabled. You are certainly not increasing the incentive to work if you reduce the benefit of people who have not a chance in hell of returning to work. We know that a lot of people who in any normal view of things would not really be able to work have been put into benefit categories such as jobseeker’s allowance, where they are expected to work, although they would regard this as being beyond their wildest dreams, much as they might like to. That is not the point that I wanted to make; I simply want to ask the Minister how she squares the provisions of this Bill with the principles so eloquently and consistently laid out by the noble Lord, Lord Freud.

[Lord German]

My Lords, at Second Reading I said that this Bill had some rough edges, and the amendment moved by the noble Lord, Lord McKenzie, is directed at one of those rough edges. Can my noble friend the Minister tell the House whether a deliberate step was taken to exclude the personal allowance part of the support group to meet the budgetary requirements? Was this matter overlooked in the discussion that may have taken place on the principle espoused both in this House by the noble Lord, Lord Freud, and by the Secretary of State in the other place that those who are unable to do something to help themselves should not be penalised in this way? That is why the example of DLA and PIP has been given.

It may be, though, that in the words of the noble Lord, Lord McKenzie, people are generally not able to access the labour market. Can my noble friend the Minister tell us what the actual cost would be of reinstating the non-1% cap on the personal allowance part of the support group, given that people are in the support group because they obviously need support and cannot do things for themselves? That is the nature of the word. Has the department given any thought whatever to finding ways of ensuring that what is clearly not in the spirit of the statements made about providing for people who cannot help themselves will be carried through, if perhaps in some other way than by the amendment proposed by the noble Lord, Lord McKenzie? In other words, is there another way of dealing with this apart from using the methodology provided in the noble Lord’s amendment?