Welfare

Debate between Lord Lansley and Lord Freud

Monday 21st March 2016 Lords Chamber

[Lord Freud]

Supported accommodation is a vital issue and I am grateful for the noble Lord’s question as it gives me a chance to offer the industry as much reassurance as possible. We have delayed two of the changes—the rent reductions and the LHA cap on supported accommodation—for a year because that will give us time to really understand the sector. In the short term, I expect to get a report on how the sector works so that we can look at how to support it most efficiently with funding and finance. The noble Lord will probably not remember how it is financed, as I do not think that anyone knew at that time. It has been quite a complicated issue. As for his question about the commitment and pensions, the pension element is growing rather rapidly, so, far from cuts, that becomes an irrelevant consideration.

[Lord Lansley (Con)]

My Lords, those of us who know Stephen Crabb well are very hopeful about the approach that he will bring to this very important and challenging task. From these Benches we should pay tribute to Iain Duncan Smith for what he achieved as Secretary of State and indeed even before he became Secretary of State in his ambition to help the poorest and most vulnerable in society. Coming back to the questions that arise today, will my noble friend confirm that the OBR forecast published alongside the Budget now appears to indicate that the anticipated disability benefit budget, having risen by about £4 billion since 2010, will rise over the next four years by about another £2 billion? That highlights that, if we are to achieve meaningful reform in the future, it is not about, as my noble friend said, changing the amount of money paid to people with specific needs but about helping people back into work. The focus of welfare reform should be not diminished but refocused on the work and health programme and halving the disability employment gap.

[Lord Freud]

I am grateful to have the opportunity to pay tribute to Iain Duncan Smith. He was a remarkable champion for reform in the welfare state. I say with feeling that there is a reason why no one has transformed the system in the last 70 or 80 years and that is that it is very difficult to do. He had the political guts to get on and do it, and I am very proud to have supported him in getting the programme as far as it is. I think that he will go down in history for that achievement.

As my noble friend said, the OBR forecast shows that we gave more money to the disabled in the last Parliament, and the same is projected for this Parliament. In particular, a real-terms increase in the area of PIP/DLA is now baked in. My noble friend is of course right that the next step in the process is the need to find the right way to help disabled people back into the workplace and to achieve our objective of halving the disability gap.