Disabled People

Lord Low of Dalston Excerpts

Thursday 5th May 2011 Lords Chamber

Moved by

[Lord Low of Dalston]

To call attention to the impact of government policies on disabled people; and to move for papers.

[Lord Low of Dalston]

My Lords, I begin by saying how sorry I am that the noble Lord, Lord Taylor of Holbeach, will be answering the debate. I say that not because I am sorry to see the noble Lord, but because the noble Lord, Lord Freud, cannot be here as planned because he has been involved in a motoring accident and has had to be taken to hospital. However, I am happy to say that he is all right and, I believe, will soon be back with us. I am sure that I speak for everybody when I say that we send him our very best wishes for a speedy return to the House.

I thank all noble Lords who have put their names down to speak. I am sure that I speak for all noble Lords when I say that I am particularly looking forward to the maiden speech of the noble Lord, Lord Fellowes of West Stafford. The noble Lord, Lord Morris of Manchester, very much wanted to be here, but he has asked me to say how sorry he is that he cannot be present owing to a long-standing commitment elsewhere. It is indeed an irony that, in the 40th anniversary year of the coming into force of his historic Act, we should be discussing the possible rolling back of so many of the gains for disabled people that it set in train.

It is a cliché that the civilisation of a society is measured by the way it treats its most vulnerable members. That is a test that the Government certainly acknowledge, as they have made many statements to the effect that they intend to introduce their austerity measures in such a way as to ensure that the most vulnerable are protected. However, there is a real risk that the Government are failing their own test, for next Wednesday we will see the largest ever lobby of Parliament by disabled people—more than 10,000 of them, angry at the prospect that, far from being protected, they are being hardest hit of all by the Government’s measures. They are angry and fearful. There is a sense that Ministers are not listening, so I hope that they will see today’s debate as a welcome opportunity to improve the dialogue.

The coalition’s programme for government states that the Government will ensure that,

“fairness is at the heart”

of decision-making so that,

“those most in need are protected”.

Let us look at the baseline from which such a pledge should be judged. In fact, the link between disability and poverty through lower incomes and higher costs is well established. On almost any indicator of poverty or disadvantage, disabled people are significantly overrepresented, with research by the Joseph Rowntree Foundation and the New Policy Institute finding that disabled people are around twice as likely to live in relative poverty as non-disabled people. Disabled people are also more likely to rely on state benefits as a significant source of their income and face extra costs directly related to their impairment, such as increased fuel bills, medical costs or a contribution to the cost of their social care. Official poverty figures do not take account of these additional costs. However, if they were factored in, they would suggest that well over half of disabled people in the United Kingdom live below the poverty line.

The impression is often given that the welfare budget is out of control as a result of unfounded claims of sickness and disability, but in reality the greater part of the growth in the welfare bill seen in the past 10 years has been on pensions as a result of demographic factors, families with children and low-income workers. Sir Bert Massie, former chair of the Disability Rights Commission, has also referred to the rhetoric around welfare, which paints disabled people as welfare cheats. In fact, most of the stories in the press about disabled scroungers are not about disabled people at all but are about non-disabled people pretending to be disabled.

The Government’s flagship policy for addressing the poverty of disabled people is their programme to get disabled people off welfare and into work. This aspiration, in particular the simplification of welfare through the universal credit, is welcome. As always, however, the devil is in the detail. The Welfare Reform Bill currently makes no provision within the universal credit for the enhanced disability premium or severe disability premium, worth £13.65 and £53.65 a week respectively for a single person. Without these premiums thousands of disabled people with the greatest needs will be left without the support they need to meet the extra costs of disability. Nor do we know whether the system of disregards will replicate the disability element of working tax credit or enable couples who both have an impairment to retain its equivalent to which they have each been entitled individually up to now. Can the Minister assure us that the move to universal credit will not have these untoward and no doubt unintended but certainly self-defeating consequences? However, the development of the universal credit is going in broadly the right direction. The same cannot be said of the Government’s other measures designed to support their welfare to work agenda.

I say at the outset that the agenda remains correct. Disabled people want to work and do not want to be written off on welfare. We had a debate in the RNIB—here I declare my interest both as a vice-president and a disabled person—about whether we wanted to hang on to incapacity benefit and we came down firmly against sending a signal that blind people were not able to work. However, we said that conditionality applied as much to government as to disabled people. If disabled people were to be expected to undertake work-related activity to get them close to the labour market and ideally into work, they should be entitled to expect that there will be a job at the end of the road and that the Government will be held to account for providing the necessary support while they got there and for removing the barriers to the employment of disabled people.

The Government have a massive programme to reassess more than 1.5 million people on incapacity benefit by 2013 to see whether they qualify for employment and support allowance. However, the assessment process is deeply flawed. Forty per cent of appeals are successful, and there is widespread dissatisfaction with Atos Healthcare, the company carrying out the assessments. There are also serious concerns with the way that the process is being handled. The descriptors in the work capability assessment have been repeatedly revised over recent years so as to raise the bar for claimants. Further changes are now being rushed through before Professor Harrington has concluded the all-important second stage of his review, against the advice of the Social Security Advisory Committee. In particular, the committee felt that the work capability assessment measured theoretical work capability and took insufficient account of the realities of the work environment and the labour market, which has not enabled significant numbers to move into employment, even in relatively favourable pre-recession conditions. Some 92 per cent of employers say that they would find it difficult or impossible to employ someone who is blind or partially sighted, for instance. Now we learn that increasing numbers of disabled people are experiencing rigorous reassessments of their access-to-work support packages, which is hardly going to ameliorate the situation.

The vast majority of incapacity benefit claimants have been on benefit for at least five years, which puts them a very long way indeed from the labour market. Yet, following the changes to the work capability assessment, the Government estimate that around a quarter of these claimants will fail to qualify for ESA, which will mean that they have to make a claim for jobseeker’s allowance or some other benefit or lose their benefit altogether. Can the Minister say what support will be available for disabled people who fail the work capability assessment but nevertheless face significant barriers in finding work?

Even if you qualify for ESA—employment and support allowance—you may be no better off, because anyone receiving contributory ESA from next April who is in the work-related activity group will have payment of their benefit means tested after 12 months. This change is to be made retrospective. People will still be able to apply for income-related ESA after their contributory ESA ends, but if their partner is earning as little as £150 or working 24 hours or more a week, they will no longer be eligible for ESA. These are particularly savage policies going far beyond anything contemplated in the Thatcher era. They will cause great hardship and have a devastating effect on the lives of hundreds of thousands of disabled people. It is estimated that by 2015-16, 700,000 people will be affected by limiting contributory ESA to one year: 203,000 will lose on average £11 a week; 217,000 will lose £22 a week; and 280,000, a good 40 per cent, will lose as much as £89 a week. To people forced to live on benefit, these figures are mind-boggling.

Disabled people see this as a betrayal of the citizen by the state. People have paid in through tax and national insurance contributions in the belief that if they became sick or disabled the benefits system would support them as they came to terms with their impairment, retrained and moved towards work again. The Minister may say that disabled people with a partner in work or with savings of more than £16,000 have other means of support and should use them, as people on contributory JSA have to after only six months. However, this totally fails to appreciate the difference between someone who is work-ready on JSA and a disabled person who may need some years of support to enter work. Most important of all, there simply are not the jobs to enable someone on ESA to get a job within 12 months. The number of long-term unemployed far outstrips the number of job vacancies. DWP figures show that only 13 per cent of people on the Pathways to Work programme in 2008-09 returned to work within one year. How is one to account for this, other than in terms of coalition heartlessness—picking on disabled people, to cut the deficit, by returning us to the hard-faced days of the means test? That is certainly how it is seen by those marching next Wednesday and engaging the week after in a week of action against Atos Healthcare.

I prefer to think of it differently. I know the Minister; he is not a hard man. I believe that he genuinely wants to reform a welfare system that has kept disabled people in a state of dependency and out of work for too long, by making it pay to be in work. However, Ministers have become mesmerised by this rhetoric to the point where they fail to see the consequences of the policies they are pursuing. Making work pay is not the same as seeing to it that it does not pay to be out of work. Using the threat of loss of benefit in an attempt to force people who are not work-ready to work, or for whom there is no work, is plain sadistic.

The Government should freeze their plans to migrate more than a million and a half incapacity benefit claimants on to ESA from April this year until they can implement the recommendations of the Harrington review, and they should reconsider their approach to contributory ESA. At the very least, I ask the Minister to undertake—as the noble Lord, Lord Freud, did recently with respect to the changes to housing benefit—to carry out a review of what happens to people who are found to be fit for work and therefore unable to claim ESA.

I have concentrated on welfare to work because it is the Government’s flagship policy and represents their strategic approach to dealing with the poverty of disabled people. However, there is more—much, much more—that I can only touch on, and I leave it to others to say more on those points if they wish to.

Expenditure on disability living allowance, which helps people with the extra costs that disability brings, is to be cut by a fifth. The Government have said that they will review the withdrawal of the mobility component from state-funded claimants living in residential care, which was planned to take effect in 2012 and has caused particular anger. However, Clause 83 of the Welfare Reform Bill still denies entitlement to personal independence payment for anyone living in a care home, and the impact assessment suggests that 78,000 disabled people will still lose out. Closure of the Independent Living Fund will hit some of the most severely disabled.

Most astonishingly of all, the Government have recently included the entire Equality Act that we passed in this House just last year within their red tape challenge, which invites members of the public to comment on regulations with a view to their being simplified or scrapped. Not surprisingly, this has caused huge concern among disabled people; if carried through, it would sweep away at a stroke all the provisions that flow from the Disability Discrimination Act, which has been such a potent vehicle for protecting and advancing the interests of disabled people. I invite the Minister to disavow any such intention on the part of the Government.

As support from central government is withdrawn, so it is from local government. This represents a double whammy. Eighty per cent of councils in England expect by the end of this financial year to help only disabled people whose needs are assessed as being critical, substantial or—in the case of Birmingham City Council—super-critical. “Critical” effectively means life-threatening. How is one to account for this except in terms of crude cost-cutting? Time-limiting contributory ESA will save £2 billion, and DLA a further £2.17 billion. The disability contribution, as we might call it, to reducing the deficit is therefore larger than that sought from the banks through the banking levy, which is to be only £2.5 billion. This therefore represents a clear choice on the part of the Government to go for welfare rather than the parts of the economy that caused the problem in the first place. It is a clear choice, but is it fair and is it necessary?

When we were in a much worse position at the end of the Second World War, we were able to found the National Health Service and introduce a Disabled Persons (Employment) Act. We have to ask, have our Government got their priorities right?

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[The Deputy Speaker (Baroness Pitkeathley)]

My Lords, the time allotted for this debate has now elapsed. Does the noble Lord wish to withdraw his Motion?

[Lord Low of Dalston]

I beg leave to withdraw the Motion.

Motion withdrawn.