Welfare Reform Bill

Debate between Lord German and Baroness Howarth of Breckland

Tuesday 31st January 2012 Lords Chamber

[Baroness Howarth of Breckland]

My Lords, I support this amendment, but in so doing I understand the position in which the noble Lord finds himself with a set of sealed envelopes. Like many other noble Lords, I encourage him to go back to the Treasury, or at least to have a look at how the available funding can be properly distributed. After all, this is a compromise. Personally, I would like us not to be in this position at all but rather to ensure that we do not make any cuts, because these are cuts—unlike some of the other reforms—to the budgets of families with disabled children.

I do not want to repeat the eloquent speeches that have already been made but to make three brief and, I hope, slightly different points. First, the Government need to take the long view as regards financial management. If we take the short-term view, we will find that many of these families will fall into even more disarray than they are in already. We should remember that, as has been said—I reinforce this point—the majority of these families are single-parent families looked after by mothers. These are not women who have had a child for some feckless reason, as is often portrayed in the newspapers, but women whose husbands cannot tolerate the pressure of having a disabled child in the household and have simply gone out of the picture—so these women are alone. Often that means that they cannot support their child’s situation, which results in many children going into care. I shall not quote more statistics, but noble Lords know that there are large numbers of disabled children in care at the moment and placing them in foster homes is very difficult; in fact, to get them adopted is almost impossible. The state’s burden of caring for such children is huge; the costs per week of caring for a disabled child can run into thousands. In taking the long view, we have to remember the number of children in care.

My last point is that, as several people have said, if we are a civilised society, we want children to grow up to be active young people and to have a proper transition into adulthood. I declare an interest as the president of Livability, a charity which looks after young people in schools, in colleges and through into adult care. I understand the need for that transition. If we are to do that and if we are to ensure that such families have a proper life, appropriate funding is crucial. Noble Lords may have disabled children but, if you are trying to bring them up on the kind of money that these families have and in the housing conditions and relationship situations of these families, funding is absolutely crucial to underpin the care, love and continuity that these children desperately need. I ask the Minister to look in his envelopes again to see whether there is not some way in which the money can be redistributed to ensure that that does not happen.

[Lord German]

My Lords, I would like to take a little further the arguments, put by the noble Lord, Lord Newton, about where we go with the concerns that have been widely expressed around the House. It is worth reminding noble Lords that the intention expressed by the Minister is not in the Bill before us; that is the subject of future regulations that are to be brought forward. I understand that the purpose behind the amendment is to lock the Minister into a pattern which will remain for many years to come. If you put something into primary legislation, it will be locked there for many years until time is found to change it. I shall return to some of those issues later.

One thing that has not been mentioned is the other cliff edge—my noble friend Lady Thomas mentioned this in her speech—relating to those who are 16 and those who are 17. The cliff edge is enormous. We also have to consider the change in the funding, although it is not the subject of this amendment, but it is the subject of the Minister’s thinking, as expressed to us. Many people see the problem of no continuity for disabled people between the ages of 15, 16 and 17. That is the issue that the Minister is concerned about.

Another related issue is not just the level of payments, but the way in which the payments will be funded over time. Perhaps this House would be better thinking about having a further debate on this or having that discussion during proceedings on regulations. I shall come back to how that might happen in a moment. There are two possible routes out of the problem of the distinct difference in the funding for those who are post-16 and those who are less than 16. I guess that one of the ways might be to create new tiers. There are already three tiers in DLA and there are two tiers for adults. At some stage in the future, a Government—this one or a future Government—might decide that it is essential to have three tiers and they might want to redesignate. Of course, that would be stopped by this amendment.

The second and more purposeful way in which the amendment would not allow change would be as regards transitioning; I do not mean the transitional measures in the Bill, but moving to rectify the enormous cliff edge that occurs at the age of 16. For that to happen, it may well be that a Government of whatever kind would want some form of progress on changing the relationship between post-16 and under-16 provision.

All those things would not be assisted by an amendment that locked into aspic a set of placements between one set of benefits and other, and missed out the other half of this equation, which is not the subject of the amendment. Of course there are concerns about the levels of payment that go into these particular directions. If you forage around the background of these particular payments—they go back to supplementary benefits, and I guess that some noble Lords here will remember how those originated—their purpose was to pay for the additional costs that were not being funded from the disability living allowance system that we now have. Those payments related mainly to items such as energy costs—the costs of extra baths, the need for more heating in the house, extra hot water and so on. Those are very much some of the issues that face the over-16s as well as the under-16s.

We need to have this debate, but need to have it in terms of the absolute flexibility that we can create in the environment between now and when the Minister brings forward his regulations. I am sure that he has listened to what has been said today, and my advice to my noble friend would be to heed the warnings that have been given. Clearly, there are very strong views about how you treat disabled children but, at the same time, I ask noble Lords to consider in the same breath the plight of those over 16 and to think about how best we might approach this issue.

A compromise situation might well be achieved by my noble friend listening to this debate and saying that he will discuss these matters when we come forward with the regulations. I know that many noble Lords will think that you cannot do anything about regulations: they are laid before you and you can either vote for them or not. We are laying markers now and there are markers that people can lay. I am sure that all the lobby groups are lined up, ready to influence the Minister in this matter. There is time—is there not?—for us to make sure that we do not put right one problem and cause another to be set in stone against it. We need that flexibility and I hope my noble friend is listening to that, will heed what he is hearing, but give a commitment that he will consider these matters when he brings forward his regulations.