Oral Answers to Questions
Alan Brown Excerpts(8 years, 5 months ago)
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Mr Vara
I find it deeply regrettable that Opposition parties seek to make capital at the Dispatch Box, and indeed from the Back Benches, when they do not have a solid proposal. They cannot provide a proper, credible solution that will ensure that the financial position of the country is taken into account. I might add that if the Opposition parties are so keen on this issue, they should bear in mind that although the Pensions Act came into being in 2011, the issue was not raised in any of their manifestos.
Alan Brown (Kilmarnock and Loudoun) (SNP)
5. What assessment he has made of the potential policy implications for his Department of the UK leaving the EU.
Patricia Gibson (North Ayrshire and Arran) (SNP)
12. What assessment he has made of the potential policy implications for his Department of the UK leaving the EU.
The Secretary of State for Work and Pensions (Stephen Crabb)
The British people have voted to leave the European Union, and the referendum decision must be respected and delivered. My Department is working closely with the EU unit that has been set up in the Cabinet Office, and we will be working with the next Prime Minister and the rest of the Cabinet as we forge a new path for the country.
Alan Brown
The European Union has provided a number of legal protections involving equality and human rights for disabled people. Given the delay in the publication of the Green Paper on the Work and Health programme, what plans has the Department to protect those rights following Brexit?
Stephen Crabb
No one with a disability or a long-term health condition should have any fear whatsoever about what will happen in the coming months and years as we negotiate Britain’s exit from the European Union. We are absolutely committed to protecting rights for disabled people in this country, and the Green Paper, which we will publish in the autumn, will outline our proposals for reforming systems in order to give better support to people with disabilities and long-term health conditions.
Oral Answers to Questions
Alan Brown Excerpts(8 years, 7 months ago)
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Stephen Crabb
The hon. Gentleman is wrong to try to focus on divisions between the Treasury and the DWP. When a Department such as the DWP spends between a quarter and a third of all taxpayers’ money, we need to make sure that it is working closely aligned with the Treasury to achieve the things we want to achieve as a Government.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I have a constituent, Lisa, who has spina bifida; she suffers constant pain and balance problems, and she needs a walking stick. She was forced to struggle 25 metres from the reception area to an assessment room for PIP. Surprise, surprise, she was then classed as mobile enough to walk more than 20 metres. How can the Minister convince us that that was a fair and just assessment? When will he end this ridiculous 20-metre rule?
Justin Tomlinson
First, any claimant who has difficulty attending an assessment centre can request a face-to-face assessment in their own home. Secondly, with regard to how far somebody can travel in an assessment, this is not just a black-and-white issue of 20 metres; it is about whether they can do that safely, repeatedly, to an assessable standard and in a reasonable time. If a claimant is unhappy with a decision, they can ask for a mandatory reconsideration or an independent appeal.
Motability Car Scheme
Alan Brown Excerpts(8 years, 9 months ago)
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Alan Brown (Kilmarnock and Loudoun) (SNP)
It is a pleasure to serve under your chairmanship for the first time, Mr Hollobone. I am glad to be able to bring this motion forward and to have secured the debate, but—
Mr Philip Hollobone (in the Chair)
Order. Would the hon. Gentleman be kind enough to move the motion and then do his speech?
Alan Brown
Apologies. I beg to move,
That this House has considered the Motability car scheme.
I am glad to bring the motion before the House today, but in truth it would be much better if this topic did not require consideration at all. The origins of this stem back to the previous Parliament and the change from the disability living allowance to the personal independence payment in April 2013. At the time, some of the changes were dressed up as fairness and giving people more control, but there is no doubt that there were concerns that DLA self-assessment, the automatic qualification process and, sometimes, the fact that there was no follow-up could possibly be abused.
That was the thought process that definitely drove the Tory ideology, and that has overshadowed how best to manage the system to help people with disabilities. Throw in a projected £2.5 billion saving and the fact that an estimated 600,000 fewer people would end up on PIP compared with DLA and we can see that this was just another assault on the disadvantaged. For me, the key change in assessing enhanced mobility was the reduction in the distance of the walking assessment from 50 metres down to 20 metres. Imagine it: somebody can go into an assessment centre and sit down and possibly be at risk of already meeting the walking test.
The enhanced rate is critical. The Motability scheme allows those receiving the highest rate of DLA or PIP to lease a suitable adapted vehicle, powered wheelchair or mobility scooter, in return for their weekly award. The Motability scheme is particularly important for enabling disabled people to be independent and to manage their condition. It allows users to participate in social activities and do the things that many of us take for granted, such as being able to continue to care for their children.
If we look back at the history, the Motability scheme was founded in 1977. It started out with a single car and has grown into a scheme that operates on a completely UK-wide basis, with nearly 650,000 users at present, which includes 15,000 using electric scooters and wheelchairs. It is a massively respected scheme, it is a charitable body and it has been praised by the National Audit Office for providing good value for money.
The Motability scheme plays a vital role for many disabled people across the country. Restricting access to Motability vehicles for those who have relied on them will undoubtedly increase the isolation that many disabled people feel.
Mr Mark Williams (Ceredigion) (LD)
I congratulate the hon. Gentleman on securing this very important debate. As he develops his speech, will he reflect on the particularly bad impact that the loss of Motability vehicles has had on people living in rural areas, to the extent that when constituents are waiting for an appeal to a tribunal decision, they cannot get to the meetings because there is no alternative transport? There is no public transport and they do not have a vehicle any more.
Alan Brown
That is a fine intervention, and I agree with the point the hon. Gentleman makes. I was not going to focus particularly on rural issues, but he is absolutely right. I live in a rural area and I know that, particularly in England and Wales, the cuts to public transport and dial-a-bus services have compounded the problem of people being unable to manage when they lose their Motability vehicle, so I agree wholeheartedly with that sentiment.
Stuart Blair Donaldson (West Aberdeenshire and Kincardine) (SNP)
I congratulate my hon. Friend on securing the debate. My constituent, Claire Ross, is 15 years old. She lives in a rural area and has a brain tumour, meaning that she becomes tired easily. Her Motability vehicle was used to take her to school and to hospital appointments. A recent reassessment removed the component from Claire and now the vehicle sits, unable to be used, at her parents’ house. Does my hon. Friend share my concern for Claire now that the Motability component has been taken away from her, and does he agree that it is shameful of the Government not to respond to my numerous representations on her behalf?
Alan Brown
I wholeheartedly agree, and I find it incredible that nobody has responded following my hon. Friend’s inquiries. I think most hon. Members here will have very similar examples from their constituencies, which highlights how unfair the measures are. I will come back to that, which is something the Government really need to take stock of. They should be working tirelessly to support the independence and inclusion of disabled people, using all means possible through Government channels.
An example of the concerns we have heard is highlighted in a briefing paper from Muscular Dystrophy UK. Trailblazers, which comes under the umbrella of that organisation, is a group of young disabled campaigners aiming to tackle the social issues affecting young disabled people, such as their access to higher education, employment, and social and leisure opportunities. These are young people who fully understand the difficulties they face in life. They are campaigning to raise awareness of this issue and to support others. They also know the possible consequences of the new PIP assessment.
One trailblazer commented:
“I suffer from muscular dystrophy and I am still able to walk, although it is difficult. I frequently push myself to live my life as much as I can, despite fatigue and anxiety that comes with it. I am absolutely terrified that one day, be it tomorrow or in a year, I will receive the letter that tells me I need to be reassessed for PIP. As someone who can stand and does not ‘look’ disabled at times, I believe I will have no chance of retaining my car.”
They added:
“If I don’t have my car, I simply would not go out.”
This is a young person who knows how independent they have become since being able to access a car through the Motability scheme. Imagine being aware of the life transformation that they went through and the absolute dread of being forced to return to the pre-car state.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
I thank my hon. Friend for giving way and for bringing this extremely important debate to the Chamber today. Does he agree that, given the impact on people’s mental health, including depression and anxiety—at some points, due to social exclusion—as well as the fact that people feel very isolated and the possible risk of suicide, we are at risk of creating an increased call on the NHS through co-morbid mental health problems, as well as physical disability in this case?
Alan Brown
I recognise my hon. Friend’s expertise and agree with her point, which touches on what I was saying. In some cases, it is not even about the stress of losing the Motability vehicle; it is about the stress and panic about getting to that stage, so we are talking about an ongoing mental condition.
Siobhain McDonagh (Mitcham and Morden) (Lab)
On the point about increased cost, I would like to make the Chamber aware of my constituent, Lorna George. She lost her higher rate mobility component of DLA when she transferred to PIP and, as a result, lost her vehicle. Because she is in full-time employment, she was entitled to the Access to Work scheme, which meant that she received £150 a week from the public purse to get to and from work, as a result of losing her DLA mobility component of £54 a week. How is that saving anybody money?
Alan Brown
That was another fine intervention. These examples are what make it real for everybody, and I will touch on what I think is the madness of the financials later.
To be clear, we have heard some personal examples, but the statistics back up the concerns that I highlighted from the young person with muscular dystrophy. To date, of the 31,200 people on the Motability scheme via the higher rate DLA who have subsequently been reassessed for PIP, some 14,000 have lost the higher PIP mobility rate and, therefore, their car as well.
Going back to the stress and trauma of losing a car, we are lucky that Motability takes its duties seriously and goes above and beyond to support people in that position. It supports them with financial assistance—for example, through a transitional lump sum that might aid in the purchase of a car. Motability also provides advice packs for customers and advises on insurance, maintenance, adaptation services and even local transport options. We should be clear that Motability should not be filling in these gaps for people who are effectively left stranded.
It is no wonder that 91% of those who left the scheme were satisfied with the support that they had received from Motability. I commend the organisation, but that does not mask the fact that we are still only at the early stages of the PIP reassessment, with the reality that nearly one in two people lose their higher mobility access. I put this to the Minister: are we really to believe that almost half the people on enhanced DLA either exaggerated or fabricated their conditions to access Motability or, at best, suddenly no longer need that support?
In Scotland, 70,000 people are using the Motability scheme, so, using statistical analysis, we know that up to 31,500 people could lose out—I accept that some people beyond working age will not be reassessed. If we take that down to the level of my constituency, 1,500 people are using the Motability scheme at present, so up to 670 people are possibly at risk.
I will give the example of one of my constituents. Lynne Paton has written to me to say:
“I am due a new car in July. I haven’t been assessed for 2 years. I have the higher rate at present and I have”
had it
“since my 2 strokes. I have been in the hospital 3 times lately with chest infections. I am now struggling to get up and down my stairs because of the difficulties trying to get a breath. I am now using my electric Scooter again because I now can’t walk very far because of my breathing. The car we have just now was picked because the scooter can go in the car. I don’t know if I will get assessed again in the near future but if we were to lose the car I wouldn’t be able to get out and about. Also John is due to retire so our income will drop and we won’t be able to buy a new car suitable…I hope you can fight for people like me who need their cars. I know you will do your best for disabled people”.
That should be a clear case. If Lynne goes to be reassessed, there should not be a problem, but we all know that there are problems. She could go through a wee bout of better health and suddenly be deemed not to meet the requirements for the higher mobility rate. I should also say that I know Lynne as a fantastic community volunteer, who understandably has had to scale back recently, but with what she has put into the community over the years, there is no way she should have this worry hanging over her head. I dread having to go back to her and say, “You know what? I raised this in a debate at Westminster, but as usual the Government didn’t listen.”
I have already touched on the fact that this is not about giving disabled people greater flexibility and control over their budgets and lifestyle choices; it is part of the austerity agenda. The original suggested saving of £2.5 billion by 2018 confirms that, but it is also worth noting that the Government were willing to give assessment contracts worth some half a billion pounds to be able to get those savings. That is not value for money, and by the way, it can be no coincidence that the previous Minister for the disabled was one of the few Tories who lost their seat last year.
When it comes to the overall PIP strategy, the money has been so well spent and the strategy so well managed that the timescales have been a disaster, with the High Court ruling in June 2015 that the delays were unacceptable and unlawful. At the same time, the Office for Budget Responsibility noted that
“costings associated with structural changes to the welfare system…are subject to even greater uncertainty.”
It highlighted that its previous “Welfare trends report” had
“noted that our latest forecasts suggested higher than expected success rates for new claims to PIP across the forecast, which had in effect reduced the savings originally expected for this reform”.
It is not achieving the savings that were anticipated and, worryingly, with 45% of people who have been reassessed losing access to the Motability scheme, we have to wonder what the real purpose of the original target was. Let us consider the irony of the Tories’ manifesto pledge to halve the disability employment gap and support disabled people. Perhaps it is just me, but I simply cannot connect the dots. How does the Conservative party strip the freedom that a Motability vehicle brings to a disabled person from them and still aim to break down the barriers to work?
The Multiple Sclerosis Society, for example, has said that the Motability scheme can have positive impacts in terms of employment for users and their families. It claims that use of a Motability vehicle has enabled many of its members to gain employment, enabling disabled people to have a much more rounded, independent life. The recent Mencap review, “Halving The Gap?”, proved that the Tory policies are driving disabled people away from work rather than into work. That is why access to Motability vehicles is so important.
On a more positive note, the disability charity Scope undertook a report to assess the economic impact of getting more disabled people into employment, which was published in April 2015. It found that the impact on the economy of a rise in the disability employment rate would be significant. Indeed, a 10 percentage point rise would result in a £12 billion gain for the Exchequer by 2030. When we hear Tories in the main Chamber announcing that unemployment in their constituency is down by 50%, we should compare and contrast those statistics with the benefits of small increases in the employment rate for disabled adults. My hon. Friend the Member for Banff and Buchan (Dr Whiteford) has written to the Secretary of State for Work and Pensions to express concern that a lack of access to the Motability scheme will prevent disabled people from getting to work. It is clear that the Government should focus on that, rather than on savings.
Not content with one failure, the Government also have a proposal to cut the employment and support allowance work-related activity group payment, taking £30 of benefit a week from those in need and taking sick people even further away from getting back into work.
We in the Scottish National party are committed to supporting disabled people, which means opposing the regressive and punitive measures deployed by the Tories, not just for those eligible for DLA or PIP, but for the disabled people who rely on ESA and have been subjected to the unfair and failing work capability assessments. The SNP in Scotland are doing all we can, within the resources and powers that we have, to help disabled people, who are disproportionately affected by welfare reform. New powers over disability benefits in the Scotland Bill will provide opportunities to develop different policies for Scotland. In the Scottish Government, the Cabinet Secretary for Social Justice, Communities and Pensioners’ Rights, Alex Neil, wants policies that are
“fairer and ensure people are treated with dignity and respect.”
We must remember that this comes against the backdrop of the UK trying to cut the Scottish budget through the fiscal framework agreement and the fact that, due to the Tory austerity agenda and ideological cuts, the Scottish Government are currently spending £104 million to mitigate the worst aspects of welfare reform.
It is my contention that the Government should think again. All of us here, as lawmakers, owe it to those we represent to protect the most disadvantaged. The SNP has already demonstrated our commitment in that regard and will do so again with new powers over disability benefits, but I repeat: I urge the UK Government to think again.
The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)
It is a pleasure to serve under your chairmanship, Mr Hollobone. I pay tribute to the hon. Member for Kilmarnock and Loudoun (Alan Brown); he is clearly passionate about this important subject and gave a well thought-out and well delivered speech. I also pay tribute to all the other Members who contributed, particularly those who raised concerns on behalf of their constituents, showing that they will always champion the people they represent.
I will pick up on a few of the questions raised before going into my speech, which will cover the rest of them. There are a few points that are slightly away from the subject of Motability. First, we are committed to halving the disability employment gap. We all welcome the fact that, in the last 12 months, 152,000 more disabled people were in work, and the number is 292,000 over the last two years. There is still a long way to go, but we are making considerable progress in that area.
Numerous speakers mentioned a 50-metre rule becoming a 20-metre rule. There never was a 50-metre rule. It is not that if someone can walk 20 metres and 1 cm, they get no benefit, but if they can walk only 19 metres, then they get the full benefit; it is about moving safely to an acceptable standard repeatedly and in a reasonable time period. The rule is a bit of an urban myth, and I wanted to flag that up.
Justin Tomlinson
I will make some progress, and then we will see how much time is left.
On the wider issue of the money that we spend on disability support, we are increasing it year on year, all the way to 2020, compared with 2010. It is about £50 billion a year. We are also spending 14.6% more on supporting disabled people and people with long-term health conditions than those out of work for more than two years who are trying to find work.
The hon. Member for Mitcham and Morden (Siobhain McDonagh) mentioned a specific case involving three Departments. I have never heard of that before, which suggests that it is an isolated case. We will talk further on that and try to get to the bottom of it. Also, the hon. Member for North Ayrshire and Arran (Patricia Gibson) said that a decision was reversed on the back of a petition. That had no bearing on the reversal. I will discuss how the appeals process works later, but a petition would have no bearing on it. A decision is either right or it is wrong, and it will go through appeal. Individuals do not need to secure a petition. They may feel that it is an important part of their campaign, but it does not influence how things are done.
Motability is a fantastic scheme that was founded in 1977, following the introduction of mobility allowance in 1976. The scheme was founded by Lord Sterling, who I have had the great pleasure of meeting on a number of occasions, and the late Lord Goodman, with cross-party support that still continues today. Before Motability, there was the invalid carriage, which was a small, blue, motorised trike. It had a poor safety record and was unable to carry passengers, so it was of no use for the most severely disabled, who needed carers to drive them, or for those with children. As well as being unsociable, it was—frankly—awful-looking.
Today the Motability scheme helps about 600,000 people and they can choose from 2,600 vehicles. It comes as a “worry-free” package, with insurance and repairs included, and its average cost is more than 40% less than that of the equivalent commercial lease. I have had the pleasure of handing the keys to a Motability vehicle to one of my constituents, so, like many Members who have spoken today, I have seen what a difference the scheme makes to people’s everyday lives.
Most Motability users qualify through enhanced-rate personal independence payment mobility or higher-rate disability living allowance. A small number of people qualify through the armed forces independence payment and the war pensioners’ mobility supplement schemes, which are run by the Ministry of Defence.
DLA was inconsistent, subjective and out of step with the needs of a 21st century welfare system. The reality was that more than 70% of people on DLA had received a lifetime award, yet the conditions of one in three people on DLA significantly changed every year. Because people were on lifetime awards, time and time again those people who might not have been on the highest rate and whose conditions had worsened were not being reassessed, and so were missing out on benefits. It is no surprise that under PIP the percentage of those people who qualify for the highest rate of benefit is about 22.5%, whereas under DLA the figure was only 16%. Therefore, it is wrong to try to convey the impression that DLA was the utopian benefit; there was widespread support for its reform.
There are still things that need to be done and those things are part of our ongoing work. PIP is designed to determine awards consistently and objectively, with most people having a face-to-face consultation with an independent health professional to help them to build their case. Members should remember that the assessors are not awarding benefit; that is done by us in the Department and we set the rules and the levels of benefit. The assessors are there to help people to build their cases. So, rather than being presented under DLA with a complex 50-page self-assessment form, which many people could not do justice to, PIP is there. I have sat through PIP assessments and I have seen how the assessors help to support people, particularly when individuals have a mental health condition or a learning disability and therefore need to be guided through the process, to ensure that their case is as strong as possible.
The Government are committed to delivering PIP in a safe and secure way. Full roll-out of PIP started in July in a controlled way, allowing us to test and improve the service before scaling it up. From October, and in line with previously published plans, we began the full national roll-out of PIP. I look at the statistics twice a week. We control PIP and it has been in a settled state for about nine months now, which is widely reflected among all the stakeholder groups that I engage with. That process and the claimant journey will continue to improve. We continue to work with stakeholder groups and claimants, looking at ways to improve communication and the process. Nevertheless, it is widely recognised that the process is now in a settled state. Claims are now taking an average of 11 weeks from start to finish, which is much quicker than we anticipated when we produced PIP. As of October 2015, 611,000 are receiving PIP and new applicants to Motability are now split 50:50 between PIP and DLA.
The hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) talked about mental health. Unlike DLA, PIP considers the impact of someone’s condition on them and not just what condition they have, and it treats all impairment types equally. So, 21% of PIP claimants with a mental health condition get an enhanced rate of mobility, compared with just 10% of such DLA claimants, and 68% of PIP claimants with a mental health condition get enhanced-rate daily living, compared with just 22% of such DLA claimants. That is an example of how the improved assessment process is getting people to the right level of benefit—the level they should be receiving. We considered mental health at every stage of the design process, and that awareness has been built in to the activities that are examined.
A number of hon. Members have highlighted individual cases. Without all the evidence, it would be inappropriate for me to comment on a specific case. However, it is important to point something out. Many people have talked about a figure of 14,000 people; actually, there are now 24,000 more people using the Motability scheme than there were at the start of 2013, when we began introducing PIP. So, there are many, many more winners now, which is an important point to remember.
If people in individual cases, like those set out today, believe that an assessment is wrong, they have the option of a mandatory reconsideration, which looks at evidence afresh and allows for a late submission of evidence—
Alan Brown
Thank you, Mr Hollobone, for calling me to speak again.
I started out by saying that it would be ideal if this debate did not need to happen. Unfortunately, it needs to happen and the convincing testimonies from all around Westminster Hall today show us that we have a long way to go.
There have been some excellent contributions. I thought that the Minister gave an excellent response, and was very genuine. However, his response still seemed to ignore the fact that the system is wrong; it is not working, and he must reflect on that. I believe that he is much more genuine than his predecessor was, but, as I say, the testimonies given here today prove that the system is not working.
The Minister also said there were more winners than losers. Again, when we consider the testimonies that we have heard, it does not feel like that at all. I go back to the 20 metres/50 metres argument. I accept that there is not an absolute rule, but I will quote the Library briefing paper on the Motability scheme:
“Under the final PIP Regulations, individuals who do not need a wheelchair only qualify for the enhanced rate mobility component if they can only move short distances of no more than 20 metres, rather than 50 metres as in the previous draft.”
I am reading that from the Library briefing paper. It is possible that the Library is wrong, but can the Minister confirm that? And if the 20-metre distance is not part of the guidance, even though there might be a repeat test, can he ensure that every assessment centre in this country knows that and does not use it to remove enhanced mobility from people?
I finish with those remarks and I thank all hon. Members for their contributions.
Question put and agreed to.
Resolved,
That this House has considered the Motability car scheme.
Under-occupancy Penalty
Alan Brown Excerpts(8 years, 10 months ago)
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Justin Tomlinson
In the development of this policy there was full and wide consultation.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Let me first say to the Minister that the SNP is building record numbers of council houses in Scotland. In contrast, since the new right to buy was introduced in 2013, there have been 33,000 house sales in England and Wales and fewer than 3,000 new starts, so he cannot dare say that new house building will solve the problem. The High Court ruling stated quite clearly that, because DHP cannot be guaranteed, this policy is discriminatory. While we are against the bedroom tax altogether, is it not time the Government thought again? They cannot hide behind the fact that they cannot give an exhaustive list; they can and must think again.
Justin Tomlinson
With all due respect, I have met families who are on those waiting lists and want to see those properties become available.
Housing Benefit and Supported Housing
Alan Brown Excerpts(8 years, 10 months ago)
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Chris Stephens (Glasgow South West) (SNP)
I rise to support the motion in the name of the shadow Front Bench.
The starting point on issues surrounding housing benefit was the decision made a couple of months ago in a Delegated Legislation Committee to freeze housing benefit for four years. Once again, a decision was made in a Delegated Legislation Committee that should have been made through debate in this House. I am glad that the Independent newspaper, among others, has started to highlight this mechanism that the Government are using to bring in their most damaging policies affecting the country. I represent a constituency where 40% of homes are in the social rented sector and 10% in the private rented sector, so any changes in housing benefit will have an impact.
What has been most startling about these proposed changes, and the key thing to note, is that the Government have not produced any statistics on the number of housing benefit claimants who receive the benefit to pay for supported accommodation. In other words, the UK Government are proposing to cap lower LHA—local housing allowance—with no knowledge of how that impacts on women’s refuges and sheltered and supported complexes for pensioners, among other types of accommodation. No statistics are available on the number of residents in supported housing who are in receipt of full or partial housing benefit. On 17 November 2015, the Government were asked for the latest figures on the number of supported housing schemes in England that participate in such a scheme. Baroness Williams of Trafford answered for the Government:
“We do not hold this information. More information on the scale, shape and cost of the supported accommodation sector should be available through the evidence review jointly commissioned by the Department for Communities and Local Government and the Department for Work and Pensions.”
If the Government do not know the impact of the change, why make it?
This Tory Government must halt their continued assault on housing benefit so as to ensure that those who need supported housing are not literally left out in the cold. Supported housing provides vital help to tens of thousands of people. It plays a crucial role in securing a safe home and supports people to live independently. Supported housing provides the support for older people to maintain independent lives. It provides emergency refuge and support for victims of domestic violence, helping them to stabilise their lives and to engage with other services that they require. Supported housing providers work with homeless people with complex and multiple needs and help them to make the transition from life on the street to a settled home, education, training and employment. In my constituency, I know the work of a charity called Soldiers Off The Street that supports military veterans who are homeless and struggle to meet the challenge of civilian life, having served in our armed forces.
Supported housing assists people with mental health needs to stabilise their lives, recover and live more independently. It supports people with learning disabilities in the longer term to maximise independent living and exercise more choice and control over their lives. The stark reality is that any change to housing benefit can undermine the ability of such tenants to pay their rent, thereby putting their home at risk and threatening their physical and mental wellbeing, as well as posing a threat to the financial stability of housing associations. Single people under 35 will lose out, as well as those who need supported housing. Analysis by the Institute for Fiscal Studies concluded that the savings arising out of this measure would be small in the short run, cutting housing benefit expenditure by £255 million in 2020-21.
The longer-term impact of the change is expected to be more significant. If applied to all social tenants now, housing benefit would be cut by £1.1 billion from a base of about £25 billion, with 800,000 households losing an average of £1,300 per year across the UK. An Inside Housing article from 21 January 2016 claims that 95% of supported housing providers would be forced to close their schemes. The Scottish Federation of Housing Associations has arrived at figures that point to the potential cash impact of the policy, as it stands, in Scotland, based on a small-scale piece of research that it conducted with its members in the weeks since the autumn statement.
The proposed changes could have a devastating effect on the future provision of refuge accommodation in Scotland, because that accommodation is in the ownership of either housing associations or local authorities. LHA rates do not take into account the additional cost to refuge providers of leasing accommodation from social landlords and the associated service charge costs. A range of additional costs are involved in providing and managing refuge accommodation for women and children fleeing domestic violence. These costs derive from the more intensive housing management due to the crisis nature of admission, the special vulnerability of the women and children concerned, and the variable lengths of stay and rapid turnover. Other requirements include the need for increased safety and security measures, and the provision of furniture, bedding and equipment. Many refuges also include additional facilities such as communal rooms for counselling and therapeutic playrooms for children.
An analysis by the Angus branch of Scottish Women’s Aid found that in all cases, refuge rent and service charge costs are significantly higher than the LHA rate. It provides the example of a rural area where introducing a cap linked to the LHA rate would result in an annual loss of £5,800 for a two-bedroom refuge flat. In other examples, the annual loss on a one-bedroom refuge flat in an urban area is £7,100 per year, while the loss on a three-bedroom refuge in a semi-urban area is £11,600 per year. In each case, the financial cost will be multiplied by the number of refuge spaces provided. Without the existing level of housing benefit to cover costs, refuges may be forced to close. It is estimated that 62% of housing association tenants rely on housing benefit to help them to pay their rent.
Alan Brown (Kilmarnock and Loudoun) (SNP)
My hon. Friend is making a powerful speech. His point about the protection of refuges is important. In addition to our opposition to the Government measures, is it not quite clear that in Scotland, where housing is devolving—leaving the Scottish Government to protect the general stock, end the right to buy and fund new build housing and new supported accommodation—we need the full devolution of housing benefit to square the circle and to allow us to protect the most vulnerable and our general housing?
Chris Stephens
I agree with my hon. Friend. The SNP has been pursuing the full devolution of housing benefit.
The proposed introduction of the under-35s shared accommodation rate in social rented housing means that younger people will struggle to meet their rents, and it places women under the age of 35 at much greater risk of further abuse. The Scottish Federation of Housing Associations has found, based on its own analysis of the figures, that a single person aged under 35 who is reliant on housing benefit would face a weekly shortfall of £6.22, which is £323.44 per year. That translates into a rental loss of £2.8 million per year for housing associations in Scotland. The SFHA comments that that is likely to be a conservative estimate, given that, in August 2015, there were already 67,462 housing benefit claimants in social housing tenancies with housing associations in Scotland under the age of 35.
If women under the age of 35 are unable to access refuge accommodation or move into their own tenancy because of a restriction on their entitlement to housing benefit, that will in effect prevent them from leaving an abusive partner. In 2014-15, the 26 to 30-year-old age group had the highest incident rate of domestic abuse recorded by the police in Scotland. Women in that age group clearly have a significant need for domestic abuse support services, including refuge accommodation.
Chris Stephens
That factor would compound the original error. My hon. Friend is absolutely correct to raise that issue.
Discretionary housing payment to top up the gap between LHA rates and the actual costs of providing supported accommodation is simply not secure enough in these uncertain financial times. The autumn statement indicated that additional discretionary housing payment would be made available to local authorities to protect the most vulnerable. This type of discretionary funding for the social sector is far too insecure and uncertain a funding mechanism to allow providers to continue to provide specialised accommodation, such as refuge accommodation. It would mean local authorities deciding at an individual level whose support needs would or would not be met. That would create a postcode lottery, as well as distressing tenants, worrying about whether they would be successful.
The Angus branch of Scottish Women’s Aid claims that that would create additional barriers, not to mention risk, particularly for those women and children experiencing domestic abuse who are seeking refuge. In April 2013, Lord Freud responded to Scottish Women’s Aid with his commitment to protect refuge accommodation from any unintended consequences of the welfare reforms. In order to ensure that such vital supported accommodation is protected, the UK Government must commit to at least exempting refuge providers from further squeezes. The Department for Work and Pensions has stated that the extent to which supported accommodation, including refuges, will be included within the cap is still to be decided. The DHP fund is a cash-limited annual allocation and the future of the payment is not secure, particularly if the pot is stretched to meet growing numbers. The DHP fund should not be used to top up benefit; instead, the changes—leaving gaping holes in the support for those that need it most to keep a roof over their heads—should not go ahead.
The proposed capping will lock out those who need support from seeking it or being able to afford it. The gap between the LHA paid and the price of supported housing could mean that many at-risk individuals will not receive the support they need from a residential tenancy. The Scottish Federation of Housing Associations argues that uncertainty about the allocation of DHP could leave potential tenants reluctant to take up supported accommodation that better suits their needs. Furthermore, it argues that the uncertainty and distress about access to appropriate support could create a vicious cycle of tenants not accessing support and associations being left with empty properties.
Alan Brown
Is it not absolutely contrary of the Government to say that they will protect the most vulnerable by providing additional DHP? The only way in which they can actually protect vulnerable people is by completely exempting them from the proposals for such types of accommodation, rather than by providing additional DHP.
Chris Stephens
I agree with my hon. Friend. It was interesting that the Minister, in his response to the Labour spokesman, made no mention of the additional cost of the proposals to the health service and other social services across the board. In some respects, these are penny-pinching proposals, given the higher costs that will arise in future.
The proposed cuts come in the context of additional Tory planned restrictions on housing benefit for some of the most disadvantaged people in society. As part of summer Budget 2015, the Chancellor announced the removal of entitlement to the housing element of universal credit from young people aged 18 to 21, with some exceptions, from April 2017. The regressive rationale is to
“ensure young people in the benefits system face the same choices as young people who work and who may not be able to afford to leave home.”
The measure is forecast to save £40 million by 2020-21. Certain categories of young people will be exempt from the removal of housing benefit, including vulnerable young people, those who may not be able to return home to live with their parents, parents themselves, and those who have been in work for six months prior to making a claim. Organisations such as Shelter, Crisis and Centrepoint have welcomed the limitation of the impact to 18 to 21-year-olds, as opposed to the wider age group of 16 to 24-year-olds, but are actively lobbying against the removal of what they describe as an “essential safety net”, which can offer a lifeline to young people faced with homelessness.
Only with full power over social security can we fully protect individuals in Scotland from future housing benefit cuts. The Smith commission recommended that powers over discretionary housing payment be devolved to the Scottish Parliament. Clause 23 of the Scotland Bill allows for DHP to be paid in exceptional circumstances, where applicants would not normally be eligible. The Smith commission also recommended that the Scottish Parliament have the power to vary the housing costs element of universal credit. Clause 27 gives Scottish Ministers powers to vary the calculation of the housing costs element of universal credit, subject to consultation with the Secretary of State about the practicability of implementation. The Scottish Government are already protecting low-income families from the impact of the bedroom tax, with total funding of £90 million in mitigation of this draconian measure.
I am proud to represent a constituency rich in the history of helping and championing the less fortunate, and of standing up to those guilty of exploitation. In Glasgow South West only a few months ago, we commemorated the centenary of the Glasgow rent strikes, which were led by the great Mary Barbour. As is explained in early-day motion 684, which I commend to all hon. Members, that fight against unscrupulous landlords who increased rents on the home front took place during a time of sacrifice on the western front. It may have been a century ago, but we have come full circle, as exploitation of one of the most basic human needs—shelter and a place to raise a family—is once more a key issue in Parliament. That is why my right hon. and hon. Friends and I will vote for the motion.
Graham Evans (Weaver Vale) (Con)
I would like to put it on record that I, too, welcome the announcement on the 1%.
We spend more on family benefits in Britain than they do in Germany, France or Sweden. There is no doubt that social housing is invaluable for hundreds of thousands of people in this country who need help in getting accommodation, but it cannot be right to continue to subsidise people to live in houses that are bigger than they need while there are 375,000 families living in overcrowded conditions. Nor can it be right to subsidise people to live in houses that are out of reach or unaffordable for hard-working taxpayers.
Page 97 of Labour’s 2009 Budget summarised the problem:
“Indications…are that some claimants may be able to afford accommodation that is out of reach of working families on low incomes. Furthermore, costs of Housing Benefit have been rising above inflation despite static caseloads.”
In fact, between 1999 and 2010, the cost of housing benefit rose by 46% in real terms, reaching £21 billion. Housing benefit was truly out of control, with the maximum housing benefit award reaching over £100,000 a year. Even after the benefit cap, people can seek support for housing up to a rate of £20,000 a year. What would a working family paying tax have to be earning to afford rent of £20,000 a year? They would have to be earning £60,000, £70,000 or £80,000 a year.
Rents in the social sector increased by 20% over the three years from 2010-11 and were markedly higher on average than for like-for-like properties in the private sector. That is clearly unsustainable and helped to fuel the something-for-nothing culture that Labour presided over for 13 years. Some 1.4 million people spent most of the previous decade trapped on out-of-work benefits, while the number of households where no member had ever worked nearly doubled under Labour.
The announcements in the autumn statement followed on from reforms in the last Parliament to better align the rules between social and private landlords, ensuring fairness between those receiving housing benefit and the hard-working taxpayers who have to pay for it.
Oral Answers to Questions
Alan Brown Excerpts(9 years, 1 month ago)
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Mr Duncan Smith
The Prime Minister has given the country a referendum on that matter, which is a huge step forward for the hon. Member for Bolsover (Mr Skinner) and everyone else—they will all have a vote. My hon. Friend the Member for Shipley (Philip Davies) will, at that moment, be able to make that powerful argument. I am sure, with his rhetoric, he may yet carry the day.
Alan Brown (Kilmarnock and Loudoun) (SNP)
9. What recent assessment he has made of trends in the level of in-work poverty; and if he will make a statement.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Work is, as my hon. Friends have said, the best route out of poverty, and that is why we are focused on getting people into employment. We have made significant progress and have the highest employment rate on record with over 2 million more people in work since 2010. The number of people in in-work poverty is 200,000 lower than at its peak under Labour in 2008-09.
Alan Brown
As always, the Secretary of State refers back to statistics relating to the previous Labour Government, but the way to solve in-work poverty is not to cut tax credits. Is he aware of analysis by the Institute for Fiscal Studies suggesting that for the 8.4 million working households currently eligible for benefits or tax credits, the new proposed increase in the minimum wage will, on average, offset the cuts by only 26%? That will lead to an increase in in-work poverty. What will he do about that?
Oral Answers to Questions
Alan Brown Excerpts(9 years, 6 months ago)
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Justin Tomlinson
That is why we launched the Disability Confident campaign and why we will continue to drive it forward. I met Liz Sayce of Disability Rights UK. She made it very clear to me: she said that, too often, disabled people are seen as recipients when they want to be net contributors. Local initiatives, sharing best practice, busting the myths and ensuring that people see what a huge amount of talent is available will continue to help to drive up disability employment rates.
Alan Brown (Kilmarnock and Loudoun) (SNP)
5. What assessment he has made of the implications for his Department of the High Court ruling in June 2015 on delays in personal independence payments.
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
We have taken decisive action to speed up waiting times for personal independence payment claims and are pleased that the Court has recognised the huge progress made. The average new PIP claimant now waits only five weeks for an assessment.
Alan Brown
Currently, delays to people receiving PIP causes problems, but the impact of delays on other benefits such as the carer’s allowance and blue badges is hugely significant. Although the Government have made progress, will the Minister advise us as to what the backlog is in terms of numbers, and how many people wait more than seven weeks?