Personal Independence Payments

Debate between Lord German and Baroness Stowell of Beeston

Thursday 15th January 2015 Lords Chamber

[Lord McFall of Alcluith (Lab)]

My Lords—

[The Lord Privy Seal (Baroness Stowell of Beeston) (Con)]

My Lords, we have heard from several Peers from the Labour Benches on this Question and we have not yet heard from a Liberal Democrat Member.

[Lord German]

My Lords, the loss of a Motability car can mean the loss of independence for a disabled person. Is my noble friend confident that the personal independence payment assessors are prompting claimants as to whether they can walk more than 20 metres safely to an acceptable standard repeatedly and in a reasonable time, which are the crucial criteria put into statute by this House? Unless these criteria are followed, thousands of disabled people will not be eligible for a Motability car and those being retested may lose their car and their independence.

Social Fund

Debate between Lord German and Baroness Stowell of Beeston

Tuesday 28th January 2014 Lords Chamber

[Baroness Stowell of Beeston]

My Lords, local authorities are doing a good job in providing the kind of support that is available in their local areas, which previously would have been provided through the discretionary Social Fund. From the evidence that we have seen so far, local authorities are able to do this without drawing on the full amount that has been provided until now from DWP, and which was committed to only until the end of the next financial year.

[Lord German (LD)]

My Lords, these moneys were given to local authorities in England in order to provide support for the most needy and those in the most difficult circumstances. I find it difficult to understand why Her Majesty’s Opposition are in favour of no ring-fencing in Scotland or Wales but are in favour of ring-fencing in England. Will my noble friend tell the House whether there are any indications of where local authorities are not meeting the expectations of helping those in the most distressed circumstances? Should we not trust local authorities to deliver to their local communities to meet local needs?

[Baroness Stowell of Beeston]

My noble friend makes a very important point. Indeed, there is no evidence to suggest that local authorities are not fulfilling their responsibilities. Indeed, there is evidence of new approaches from local authorities to provide support, which is having a wider and more positive effect because the way in which they are doing it also is helping to provide employment through working with the third sector.

Families: Troubled Families

Debate between Lord German and Baroness Stowell of Beeston

Tuesday 7th January 2014 Lords Chamber

[Baroness Stowell of Beeston]

My Lords, when this Government came into office they were committed to the reform of our welfare system, and are, indeed, reforming it. We are also cutting back on some of those levels of payments which we considered unfair. As the noble Lord has just heard me say, we are also helping the most desperate of families so that they, too, have a chance of getting on in life. This Government’s approach is to make sure that we leave no one behind, and that is what we are doing.

[Lord German (LD)]

My Lords, does my noble friend agree that the commitment that we have heard about benefit spend in future is a commitment for a future Government, not for this Government? Does she also agree that the Troubled Families programme, which is doing so well at the moment, acts as a suitable counterbalance to the sanctions regime, which comes from the benefits structure? But of course two separate government departments are involved there. Can she tell the House what arrangements there are for the linkages between local authorities and the DCLG and the DWP and Jobcentre Plus and all the mechanisms of government in that department?

[Baroness Stowell of Beeston]

The DCLG, the DWP and other departments across Whitehall are working together in an unprecedented manner on the Troubled Families programme. At local authority level, there is fantastic co-operation between local authorities and the DWP. We now have 152 Jobcentre Plus staff plugged in as part of the Troubled Families programme, directly concerned with securing work for the adults in these families.

Guaranteed Minimum Pensions Increase Order 2013

Debate between Lord German and Baroness Stowell of Beeston

Thursday 28th February 2013 Grand Committee

[Baroness Stowell of Beeston]

I shall also speak to the Social Security Benefits Up-rating Order 2013. These orders were laid before the House on 28 January 2013, and I am satisfied that they are compatible with the European Convention on Human Rights.

I will start by touching briefly on the Guaranteed Minimum Pensions Increase Order 2013. This order provides for contracted-out defined benefits schemes to increase their members’ guaranteed minimum pensions that accrued between 1988 and 1997 by 2.2%, in line with inflation as at September 2012.

On the Social Security Benefits Up-rating Order 2013, I shall start with the increase in the basic state pension. One of this Government’s first acts was to restore the earnings link to the basic state pension. Indeed, we went a step further and secured a triple lock for pensioners: a commitment from the Government to increase the basic state pension each year by earnings, prices or 2.5%, whichever is the highest. This year, that third element of the triple lock will have an effect for the first time. The basic state pension will be uprated by 2.5%, a level above both earnings and prices. This means that millions of pensioners will see an above-inflation cash increase of £2.70 a week, taking the new level of the basic state pension to £110.15 a week; and that from April 2013 the basic state pension is forecast to be around 18% of average earnings, a higher share of average earnings than at any time in the past 20 years. I can confirm that additional state pensions will rise in line with inflation at 2.2% in 2013-14, which means that the total state pension increase for someone with a full basic pension and an average additional pension will be around £175 a year.

On pension credit, we have taken an important decision to ensure that the poorest pensioners are able to benefit from the effects of our triple lock. That means that rather than rising in line with earnings at 1.6%, the minimum required by legislation, the standard minimum guarantee credit in pension credit will be increased by 1.9% to ensure that the poorest pensioners benefit from the full £2.70 cash increase in the basic state pension.

Consistent with our approach last year, the resources needed to pay for that above-earnings increase to the standard minimum guarantee have been found by increasing the savings credit threshold, which means that those with higher levels of income will see less of an increase. The decisions that we have taken on pensioners reflect the Government’s belief that even in exceptional economic times it is important to protect those who are less able to increase their spending power.

However, noble Lords will also be aware that this order takes forward a number of decisions that are a lot harder to make. Some tough choices are necessary if we are to restore our public finances. The working-age welfare budget, which accounts for about £1 in every £8 that government spends, cannot be immune from these tough choices. That is why, having regard to the national economic situation, we have decided that the working-age personal allowances in jobseeker’s allowance, income support, housing benefit and employment and support allowance, along with the work-related activity component of employment and support allowance, will be uprated by 1% next year. On the same basis, this 1% uprating will also apply to statutory maternity pay, statutory paternity pay, statutory adoption pay and statutory sick pay. This will save around £200 million in 2013-14, savings that are crucial as we continue to pay down the deficit.

We do not take such decisions lightly. Wherever we have been able to do so, we have sought to protect those who have the greatest difficulty increasing their spending power. The benefits that reflect the additional costs that disabled people face will be uprated in line with inflation. These include disability living allowance, attendance allowance, the disability premiums in working-age benefits, and the support component of the employment and support allowance. This is true of the carer’s allowance and the carer premium as well, both of which will be uprated in line with inflation.

In previous debates this week I have spoken of the need to strike a balance. At a time of great economic difficulty we have had to find savings, but we have sought to balance these with key protections wherever we can. This order is also about balancing our commitment to the here and now with our commitment to the long term. We have a responsibility to the next generation to secure a stable and growing economy, and I do not believe we can achieve that without taking these difficult decisions. Of course, we have a responsibility to those who will be affected by this order today, and we take that responsibility seriously.

It is worth noting that at a time when the nation’s finances remain under real pressure, through this order the Government will be spending an extra £2.8 billion in 2013-14 as part of our drive to ensure that the people who are least able to change their incomes are protected against increases in the cost of living. Of that £2.8 billion, about £2.1 billion is for the state pension, including an above-inflation increase for the basic pension. Nearly £500 million will go to disabled people and their carers, and nearly £300 million will go to people of working age. I believe that this is the right decision for families now and in the long term, and it is on that basis that I commend these orders to the House. I beg to move.

[Lord German]

My Lords, I start by saying that I hope we will not have a reprise of the Second Reading debate of the Welfare Benefits Up-rating Bill, because there would be many arguments to espouse.

I add my welcome to the triple-lock pensions increase that has been put into this measure again, and as the Minister has indicated, using 2.5% as the third trigger—the third lock that is being used for the first time—means once again that pensioners are benefiting from an increase that is above inflation.

What is interesting from the information that has been presented to us, and from my noble friend’s introductory comments, is that from April 2013 the basic state pension will be about 18% of average earnings. I have two points to make about that. First, it is a higher percentage than at any time in the past 20 years; and, secondly, it is only 18%. Recent research conducted by the pensions industry indicates that many people approaching retirement say that they need 50% of their average earnings—that is the rough figure they say they need—and they believe that they will get 50%, which in the nature of these things is obviously not true at present. It demonstrates the importance of the new flat-rate pension and that auto-enrolment will be decisive in helping people to meet their own aspirations for retirement. However, in the interim, the pension credit increase in line with the triple lock, as opposed to average earnings, goes a little way to helping Britain’s poorest pensioners.

I turn now to the uprating by 1% of all benefits apart from those protected because of disability or age. I still find that the issue of personal allowances indicates that there is an underpinning rationale, which has not yet been fully demonstrated to me, in having the personal allowance element of the employment support allowance being the same personal allowance that applies for housing benefit and anything else. Can my noble friend the Minister first outline why those personal allowances have to be the same for each allowance? It interests me to know what the rationale is behind that.