Housing Benefit (Transitional Provisions) (Amendment) Regulations 2014

Debate between Lord Low of Dalston and Baroness Hollis of Heigham

Thursday 3rd April 2014 Lords Chamber

[Lord Low of Dalston (CB)]

My Lords, I realise that time is at a premium so I shall be brief and say just a few words. I remember very clearly, as will other noble Lords, the words of Lord Newton of Braintree who, to the great sadness of all, is no longer with us. In his intervention on Report during debates on what is now the Welfare Reform Act, he warned his colleagues in the Government that this would not last five minutes. Once people started realising what was happening and getting on to their MPs in droves, the Government would be forced to scrap it. It has not worked out quite like that but the bedroom tax is visibly unravelling before one’s eyes. It is not saving any money or freeing up any accommodation. My advice to the Minister would be to recognise when he is beaten. He has not a friend in the House. When you are in a hole the only sensible advice is to stop digging. I advise the Minister to recognise realities and run up the white flag.

[Baroness Hollis of Heigham (Lab)]

My Lords, in her powerful speech, my noble friend Lady Sherlock has explained our opposition to this statutory instrument. It brings more people into the bedroom tax which should be abolished. She has had support from all around the House today. The tax is disastrous. A previous Tory Government introduced and repealed the poll tax in the same Parliament. As the noble Lord, Lord Low, said, this Government should have the courage and decency to do the same.

You do, of course, need sanctions in social security to ensure, for example, that compliance with JSA work search is not voluntary. However, the bedroom tax—for the first time ever—falls on the innocent, disabled and vulnerable. They are punished when they have done no wrong: they simply occupy the house that the council allocated them. The Government have now said to them: move or pay. Most tenants can do neither. As my noble friend Lord Beecham said, tenants who want to move will be waiting three to four years. Arrears mount; single people or couples on the waiting list who want smaller accommodation will never get it; pensioners wanting to downsize cannot. As for overcrowding, outside London six times more families are underoccupying than overcrowding Just helping pensioners to move would sort it, with grace and consent. The bedroom tax destroys sound housing policy.

Will the Government, nonetheless, make their savings? No, because benefit cuts have been shunted on to tenants to become irrecoverable arrears. In Norwich, which has spent every penny of its DHPs, 60% of tenants affected by the bedroom tax are now in average arrears of £300 and mounting. Nationally, around two-thirds of affected tenants are in arrears. DHPs are utterly insufficient, short-term, and a postcode lottery, yet that is the policy on which the Minister, sadly, relies. Carers UK says that 75% of tenants trying to pay were cutting back on food, heating, medical supplies and mobility. The fragile economy of tenants collapses, as they turn to food banks, payday loans and loan sharks, with debts from which I doubt many will ever recover. The Government’s notional savings become tenants’ irreversible, irrevocable debts and, in the process, we destroy lives.

Fifteen per cent of affected tenants, nearly half of those in arrears, have already received eviction warning notices. What happens then? Do we evict tenants into the private sector—private landlords do not want them and it costs more—or into bed-and-breakfast accommodation which costs even more, or what? Should they be rough sleeping? What about children and disabled people? Through no fault of their own, there are people who cannot pay their rent because the Government have cut their benefit.

Instead, do we allow rent arrears to grow and in the process threaten the very viability of housing associations, as the noble Lord, Lord Taylor, said? We have offered the Minister three possible strategies to help because every defence of the bedroom tax is false. The first option is that the bedroom tax should not apply to disabled people, as the Work and Pensions Committee said only yesterday. Two-thirds of affected tenants are disabled. One may ask why. Adaptions, at a cost of £6,500 a property, become wasted. As regards space, the CAB has said that for disabled people that extra room for carers or equipment is,

“a lifeline as vital as a guide dog or a wheelchair”.

Finally, disabled people need the support of neighbours, as my noble friend Lady Lister said. We talk about social or community care and at the same time the Government seek to pluck disabled people out of the very communities that provide that social care.

The second option is that it should apply only to those who refuse an acceptable alternative offer. Following the remarks made by the noble Lord, Lord Taylor, I should like to know what the position of the Lib Dems is. Will they continue to support the bedroom tax in Parliament while campaigning on the doorstep simultaneously for its repeal? The third option is that the Government could treat social tenants like private tenants and apply the bedroom tax only to new tenancies. Any of those options would help.

We will go further. The Labour Party is pledged to repeal the legislation. It is the most wretched piece of social security legislation that I have known in 25 years in this House. But by then, in the summer of 2015 after the election, we will have seen hundreds of thousands of social tenants—our fellow citizens, most of them disabled and many with children—punished for occupying a house that was allocated to them. They would have been doing no wrong but are unable to pay or to move. They may be deep in debt and fearing, or perhaps experiencing, the loss of their home. How can we do this to them? It is grotesque.

Welfare Benefits Up-rating Bill

Debate between Lord Low of Dalston and Baroness Hollis of Heigham

Monday 25th February 2013 Lords Chamber

[Lord Low of Dalston]

My Lords, I am very surprised to see the need for this amendment. Usually, when benefit changes are introduced, it is standard practice not to take them away from those who are currently in receipt of them. If the Government go ahead with the provisions in the way that is currently envisaged, it is clear that they will effectively be depriving people of a benefit which they currently enjoy, because what is a Motability car if not a benefit? It is every bit as valuable as a cash benefit and I find it difficult to imagine that the Government seriously intend to strip people of benefits which they currently enjoy.

I am very sorry that I missed the first couple of minutes of the speech by the noble Lord, Lord Alton. I do not know whether he referred to the numbers but he cited the figures given by the noble Lord, Lord Freud: that in a steady state the number of disabled people with mobility difficulties in receipt of personal independence payment will reduce from about 1,000,000 to 600,000. I am given to understand that of those, it is estimated that 27% might have a Motability car. I believe this equates to about 200 Motability cars per constituency. That is a large number of people who are likely to be beating a path to their MP’s surgery with a very real grievance. I hope that the Government will take that into their calculations when considering whether to press ahead with this provision.

I remember several occasions when Lord Newton, who is sadly no longer with us, would taunt the Government when we came to debate provisions of this sort—the bedroom tax was an example and others could be thought of—with the fact that changes of this character would not survive five minutes once they had been introduced and aggrieved constituents were beating a path to their MP’s surgery. That is the situation which the Government are facing with this provision, if they press ahead with it.

I cannot believe that the Government seriously intend to proceed with a measure which will take Motability cars out of the hands of disabled people who currently rely on them for their mobility and without which they will effectively be rendered prisoners in their own house. I will be interested to see what the sense of this Committee is as we listen to the debate but I would be very surprised if there was not widespread sympathy for this amendment right across the House. I beg the Government to take this one seriously and to make a constructive response to the very full case set out by my noble friend Lord Alton and the noble Baroness, Lady Grey-Thompson.

[Baroness Hollis of Heigham]

My Lords, I also support the intention behind the amendment. I declare an interest as a vice-patron of Motability, while two members of my extended family—though not my immediate family—enjoy the use of Motability cars.

A number of us at first welcomed and were appreciative of the amount of consultation that the department engaged in concerning the new regulations for PIP, only to learn that, at the very last moment and without consultation, the Government had made two amendments, one of which was to withdraw the magic words “safely”, “reliably” and so on, while the other allegedly clarified what was meant by “virtually unable to walk” by confining it, as of right, to a territory of 20 metres, as opposed to the original territory of 20 to 50 metres that had informed previous decisions.

The Government, rightly and sensibly, moved on the first of these amendments and reinstated the test for the higher-rate DLA mobility component by introducing the key words “reliably”, “regularly”, “accessible” and so on, but failed to move on the second on the issue of 20 to 50 metres, assuring us that it made no difference in practice. When they were pressed on the statistics, however, the “no difference in practice” turned out to be a very real difference. Although the noble Lord, Lord Freud, suggested that of the 1 million, 600,000 would retain it and 400,000 would lose it, that was not the complete figure because 200,000 people who are currently on the lower-rate mobility allowance—needing psychological supervision and so on—would move up into the higher group, so there was a net loss of 400,000 but a gross loss of 600,000 people in higher-rate DLA who would now lose it, although to some extent that would be compensated for by the further 200,000 coming in from the lower group. Still, the gross figure is something like 600,000.

Like the noble Lord, Lord Alton, I am delighted to acknowledge that I am drawing on the Oxford Economics report that came out in December 2010, which is full of very valuable figures on this. We know from that report that about 28% of people on higher-rate DLA turn that mobility component into a Motability car. There are currently around 543,000 people driving a Motability car on the basis of three-year leases, and around 185,000 new cars are bought each year by Motability. It is the largest purchaser of new cars in the country, accounting for about 10% of them. This will have serious ramifications for jobs and the car industry, which Motability does so much to support.

However, I am not even going to argue about that. I am arguing on behalf of what Motability does for people’s independence. I remember being struck many years ago, back in the late 1990s when I first met the noble Baroness, Lady Campbell, by what she said about the Independent Living Foundation. She said, and for me this was a mind-changing moment, that the ILF, which gave people what we now call personal budgets—generous, or at least adequately generous, sums of money to enable them to employ their own carers and so on—put that disabled person at the centre of the care system, not as a recipient at the end of that system, so that people could determine what time they went to bed and so on. The same is true of a Motability car; it puts the person who is enabled to drive it at the centre of their mobility, not dependent on the charity, good will, altruism, convenience and so on of other people. Of those people who have a Motability car, something like 76% of them drive it themselves, so it becomes their means of movement. The result of that is that it frees not only them to be mobile but their informal carer as well, because without that transport they are totally dependent on someone else to take them to places where they need to go. As one person quoted in the Oxford Economics study said, if they are housebound—that is, without that car—it makes their informal carers housebound too. Removing the car locks two parties into immobility.

The report goes on to show us how effective the Motability car has been in enlarging the horizons of people’s lives. It shows that, for example, most of the recipients had cars in the past that they could no longer use by virtue of their arthritis or their heart problems. Whereas before their disability two-thirds of the recipients of cars were in work, subsequently only 16% were able to hold down paid employment. The Motability car helped 12,500 of them get a job and 56,000 to keep their job. It was crucial for those who needed specially adapted cars that they could not provide for themselves or for people in rural areas, such as my county of Norfolk where, frankly, public transport is non-existent and a complete myth. That car took some of them—16%—to work; it took younger ones into education and training, allowing them, in due course, to get work; it took them to their medical appointments, the shops, their children’s schools and to see their families. It allowed them, as one of them said, to access life. This is what the Government are apparently proposing to take away.

We all accept that people’s disability needs can diminish over time, or may increase over time, but for the most part, those who have reached the threshold of higher-rate DLA continue to have very real and substantial mobility problems wherever that line is to be drawn, whether at 20 metres or 50 metres. Therefore, like the noble Lord, Lord Alton, I urge the Government before Report to hold discussions with the noble Lords, Lord Sterling and Lord Alton, and the noble Baroness, Lady Grey-Thompson, and come up with a way forward on this. We have to have a transitional period—a period of grace—on this, either to the end of the lease or for a two-year period, whichever comes last, which would, at the very least, allow adequate time for the appeals procedure to go through without people losing a car in the mean time and then having to go through the routine that the noble Lord, Lord Alton, and the noble Baroness, Lady Grey-Thompson, described to regain it.

We had a similar discussion with the noble Lord, Lord Freud, about adapted houses. At one stage, if people were underoccupying a house that had had £20,000 spent on adapting it, they were to move from there, go somewhere smaller and have all the adaptation put in again, but good sense prevailed. The Minister agreed that where such money had been invested it was wise for those people to be allowed to stay. That argument makes sense for the home, and it makes sense for the agency of mobility which is the Motability car. That transitional period of grace, whether it is to the end of the lease or for a two-year period, whichever comes last, would prevent the awful situation of cars being taken back in and piled up in scrapyards because nobody would want that supply of used cars on the market when there will not be the purchasing power to buy them. We would not see Ford and the rest of them finding that they suddenly had closed order books, and we would not see people losing their cars, appealing, regaining them and having to go through all the trauma of these arrangements.

At the very least, there is a huge moral, legal, practical and economic obligation on the Government to provide a way forward to allow that transitional period—that period of grace—to allow those who feel that they should keep their car to appeal and, I hope, to retain it and to allow those whom it is deemed must lose their car time to adapt. Without it, I warn the Minister that she has seen nothing yet.

Welfare Reform Bill

Debate between Lord Low of Dalston and Baroness Hollis of Heigham

Wednesday 16th November 2011 Grand Committee

[Lord Low of Dalston]

My Lords, I have put my name to Amendment 86ZB in this group. These amendments, which would dispense with a face-to-face assessment where there is appropriate written evidence, have considerable overlap with Amendment 86ZZZV in the name of the noble Baroness, Lady Campbell, in the next group. So, if I may, I will say what I have to say on the matter now and spare the Committee the repetition when it comes up later especially since, with apologies to the Committee, I have to leave for the airport at 3.15 and may not be around when we come to the later discussion.

[Baroness Hollis of Heigham]

Lucky man.

[Lord Low of Dalston]

I particularly support the idea of a trial period before incurring huge public expenditure in reassessing 2 million disabled people, many of whom really do not need it, for example, if their circumstances are unlikely to change. Where there is written evidence of severe impairments, it is simply common sense to accept that evidence and avoid putting people through costly and potentially distressing face-to-face interviews. Setting out criteria that would signal eligibility for PIP without an interview is an administratively simple way to indentify those who have severe impairments that have already been assessed through written evidence as giving rise to a higher level care or mobility need.

The Government have said that they do not think it is right that we should judge people purely on the type of health condition or impairment they have, making blanket decisions about benefit entitlement. One can understand their desire to personalise the assessment process when the impact of an impairment may not be clear. However, it is obvious that in some cases the impact is clear from written evidence and beyond dispute in terms of its implications for the rate of PIP that should be awarded. For some groups of people it is perfectly clear from the severity of their impairment that they should be eligible for enhanced rates of PIP without further assessment. For example, if someone is deafblind, a face-to-face interview to establish that they have mobility needs of the highest level is barmy. If someone has no sight at all or no legs, no further assessment is needed to confirm that they have a high level of mobility need. In cases such as these, a face-to-face interview is simply a waste of money. In addition to avoiding unnecessary stress for severely disabled people, this amendment would save money for the taxpayer. It feels pretty much like a no-brainer to me.