Cost of Living: Financial Support for Disabled People

Baroness Keeley Excerpts

Monday 22nd May 2023 Westminster Hall

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It is a pleasure to speak with you in the Chair, Sir Robert. I congratulate my hon. Friend the Member for Battersea (Marsha De Cordova) on leading this important debate. We know that the serious implications of rising prices for fuel, transport and food have fallen much harder on some people. People with disabilities face a higher risk of poverty. The poverty rate for individuals who live in families where someone is disabled is 28%—nine percentage points more than those who live in families where no one is disabled. They are also less likely to be able to make savings on their bills for reasons related to their disability. We have heard a great deal about how the size of bills impacts many people.

I will talk about one of the petitioners: Katy Styles, who is here today. She is an unpaid carer for her husband who has motor neurone disease, and she is a campaigner for improved support for carers. She put it like this:

“It’s not a question of putting on an extra jumper for us. When someone has a muscle wasting disease their ability to stay warm is compromised, so homes need to be heated for longer and at higher temperatures. Not heating your home can lead to chest infections and in turn this can lead to a stay in hospital”.

We are focusing an awful lot on households with someone with a disability, but the extra costs for heating are borne by not only the person with a disability but their unpaid carers. Well over a quarter of all unpaid carers are living in poverty, and research from Carers UK found that more than three quarters of carers said that the rising cost of living is one of the main challenges that they would face in 2023, which is hardly surprising.

[Rosie Duffield (Canterbury) (Lab)]

I thank my hon. Friend for mentioning my fantastic constituent Katy Styles. Does my hon. Friend agree that campaigns such as We Care and people such as Katy make a real difference to us because they talk about the impact on real lives, and how the decisions that we make here affect them on a daily basis? It is not just statistics that we receive from charities and others: we know how each decision that we make here impacts on people’s real lives.

[Barbara Keeley]

I very much agree. It is good that Katy Styles is here today, because I have learned a lot from her about the role of carers. It is something that I care deeply about. Like her, I would like to see improved support for carers.

Returning to the point about maintaining higher temperatures in the home, people with disabilities, as we have heard, are also being hit with the increased costs of vital high-energy equipment, additional laundry and bathing needs, and transport for visits to medical appointments, which can be very costly. As my hon. Friend the Member for Battersea said, the charity Scope has found that, on average, households with at least one disabled adult or child need an additional £975 a month to have the same standard of living as households without somebody with a disability. In fact, those extra costs—she gave this figure too—rise to £1,122 a month after accounting for inflation. In this debate, we are throwing around the amounts of £150 and £650, but we should think about those figures, because £150 is nowhere near the increased costs.

The petition asked for disabled people and unpaid carers to be included in the one-off £650 cost of living support payment. We should reflect on the fact that unpaid carers are more likely to live in poverty than those without caring responsibilities: 29% compared with 20%. The Government responded to both petitions for today’s debate stating that 6 million people in receipt of a qualifying disability benefit would receive a £150 payment last September, but only those in receipt of a qualifying benefit would receive the £650 payment. I understand that that excluded 568,000 personal independence payment and disability living allowance claimants and 523,000 carer’s allowance claimants. Carers such as Katy Styles and the We Care Campaign argue that although the one-off £150 payment was welcome—as discussed earlier, any extra amount is welcome—given the additional energy costs that disabled people and their families are bearing, it was completely inadequate in the context of the ongoing cost of living crisis. We have all seen our bills: £150 hardly goes anywhere. The We Care Campaign recommends that the Government introduce a social tariff for energy that discounts energy bills for those most in need, automatically enrols eligible households and is mandatory for all suppliers, as advocated by the charities Age UK and Scope.

I am afraid I will not be able to get into all the ins and outs of the argument we heard earlier from the hon. Member for Blackpool North and Cleveleys (Paul Maynard). To a certain extent, I disagree with him: it does not matter how many hours Ofgem spends on this issue. Ofgem should be spending time on it, because it is vital that we have a solution.

I want to talk a little about the work by Age UK. Research by Age UK found that cost of living pressures this winter led to more than half of older people cutting back on heat and power, and more than a quarter feeling too cold at home most or all of the time. Around 800,000 older people had left their home to seek warmth in a public space, such as a shopping centre or library. I heard from older constituents who were using their free bus passes to ride around in buses during the day, just to keep warm. That is a scandal. It is also not an option for some people, because people with disabilities and their carers will not be hopping on and off different buses just to try to keep and warm.

I turn to eligibility for the warm home discount, which is important. The We Care Campaign recommends that the Government extend eligibility for the warm home discount to include people with disabilities and unpaid carers. The warm home discount was changed by the Government this winter, but it was not extended to include people with disabilities and unpaid carers; in fact, quite the opposite. Money-saving expert Martin Lewis estimated that 290,000 existing claimants who have disabilities and who claim only personal independence payment, attendance allowance or disability living allowance, which are not means-tested, will no longer get the warm home discount.

As a constituency MP, my experience of the changes made by the Government is of being contacted by constituents who formerly received the warm home discount but found that they were no longer eligible. In most cases, the reason given by the Government was that the discount is now targeted on properties that have a high energy cost score based on their characteristics. In my experience, however, some newer properties can be cold and difficult to heat, so we cannot just base it on the age of a property. I understand that the procedure involved using Valuation Agency-set characteristics and then pushing them through an algorithm, but Martin Lewis has shown that that is mistaken.

I say to the Minister that I know from my experience that some people on very low incomes have been denied the warm home discount this winter. I feel that the changes are wrong, and I urge the Government to look at this issue again. It is time that there was extra support for people with a disability and their unpaid carers to help them cope with the unprecedented financial pressures due to the energy bill crisis and the cost of living crisis, and I hope the Government will think again after this debate.

--- Later in debate ---

[Tom Pursglove]

The Secretary of State and I, and other Ministers in the Department, have been very willing to try to provide more information to the House. The hon. Lady shakes her head, but that is not right: we have come forward, for example, around the structural reforms in the White Paper. The decision that I have made within the Department, because I think that it is important for Parliament to have this information, is to provide a significant statistical release around it so that colleagues on both sides can look at the reforms and reach informed decisions when it comes to votes on the specifics of the policy. There are good reasons for the policies that we intend to pursue, and that statistical release will allow colleagues to form their judgments. I will happily take away her specific request around publication.

We provide significant statistical releases as a Department, as well as reports that are put into the public domain at their conclusion. We are in the early stages of that work, but I am happy to look at it through that lens. We provide information to support parliamentary debate and to support those we work with to get packages of support right, and it is not unhelpful, wherever possible, to provide that information in a way that is accessible beyond the Department.

The disability unit is also seeking to understand and evidence the full impact of the current cost of living on disabled people across a range of sectors. That work is ongoing. There is good dialogue and engagement with disabled people and their representative groups about it, so that we can look at the situation in its totality, understand the interventions that we have made to date and understand the needs that exist. That is relevant to some of what I will go on to say about the other points that were raised in the debate.

Let me turn to energy costs specifically. It was helpful that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Derby North (Amanda Solloway), was here, albeit for a short time. She heard some of the debate, and I will happily relay to her the contributions that were made, because of course the Department for Energy Security and Net Zero leads on energy policy. Many hon. Members understandably referenced energy costs, particularly in relation to the cost of equipment. The Government supported families across the UK last winter through the energy price guarantee, which places a limit on the price that households pay per unit of gas or electricity. As announced at the spring Budget, households continue to be supported throughout the spring with the extension of EPG at £2,500 per year for the average household until June 2023. That will give the average British family an average saving of £160 per household throughout this period. Support is also provided through cold weather payments and the warm home discount.

I want to touch, as I did last week, on the priority services register, which is run by energy suppliers. It offers additional free services to people who are of pensionable age, are registered disabled, have a hearing or visual impairment, or have long-term ill health. The register helps to ensure that people in vulnerable situations can access extra help when needed, such as when there is a power cut.

[Barbara Keeley]

I wonder whether the Minister will say more about the warm home discount, which many of us raised on behalf of people who found that they could not get it, including people who had the discount before: I felt that that was very harsh this winter. It is unacceptable that people were excluded from it because of assumed characteristics of their bills. We had quite a long exposé of various ideas about how to calculate it, but I hope that the Minister will admit that the scheme that he adopted is pretty crude. I know that it has left people on very low incomes in cold homes, and it should be looked at again.

[Tom Pursglove]

Again, I am happy to deal directly with that point, but I want to touch on the longer-term thinking around energy costs, which is led by the Department for Energy Security and Net Zero.

--- Later in debate ---

[Tom Pursglove]

I entirely accept that, and I do not think that I have suggested otherwise, but of course where we can help with people’s energy costs in the whole, we should do that. It is right that as a Government we do our bit to try to help, through those schemes, to provide that insulation support, which inevitably assists with some of those challenging costs that we are dealing with through the wider support that I have described.

We plan to lay legislation by the summer to take forward those measures that I have just set out. Energy efficiency measures in the fabric of our buildings, such as loft and cavity wall insulation, will lead to less demand on the electricity and gas grids, which in turn could help us to mitigate the impact of high and volatile international gas prices. This could also reduce energy bills for consumers, as well as helping vulnerable households out of fuel poverty.

Finally, I wanted to say something about the White Paper reforms that the Government proposed six weeks or so ago. It is absolutely right that we unlock the potential of those who wish to work and to do that with the right support. I mention this issue because there have been a few comments about it and I was able to say that we will be providing that statistical release, which I think will give colour to those reforms and allow people to make judgments about them and understand the rationale behind the direction of our proposals.

However, I regularly hear from disabled people who would like the opportunity to work, but that structural barrier within the system—that worry, or jeopardy, about trying work and it not working out, and then having to go through reapplication and reassessment processes—just cannot be right. Undoubtedly, though, that is getting in the way of so many people unlocking their potential and taking on work, if that is something they want to do.

The hon. Member for Strangford (Jim Shannon) touched on opportunities for part-time work. Those are exactly the sort of opportunities that we want to unlock for people. Getting rid of the jeopardy that people feel is in the system and, undoubtedly, that work opportunity will help with households’ resilience when it comes to the costs that they experience more generally.

The hon. Gentleman asked specifically what sort of support we are putting in place around that. For example, there was the announcement that the Chancellor made around universal support. The pioneers for that are the individual placement and support in primary care. We know that works; it has a 68% success rate with the supported employment model of identifying an employment opportunity that is right for someone, supporting them into that role and then helping them to retain it.

Schemes such as Access to Work Plus are also exciting and provide great opportunities. We are currently evaluating some of our initial testing of that scheme, but it is about crafting a job role and working with an employer that is keen to take on a disabled person, ensuring they are able to unlock that opportunity in a way that is right for that individual. It is about working with them on a tailored, personalised basis, which is exactly the basis that I am determined we will progress the White Paper reforms on. The overarching sentiment, and the fundamental safety net, is that we would never ask anyone to do something that is inappropriate for them.

Alongside those measures, we also want a better journey through the benefits system for people who need support. I am not complacent about that. There have been contributions today that touched on PIP journey times, and I can confirm that they are down to 14 weeks. That is where we wanted to get to. Previously, people were experiencing unacceptable waits. I am also asking officials to stretch and see what more we can do to take that further and get certainty for people as early in that journey as possible.

Some of the measures we talked about in the White Paper speak to the wider effort we want to make to improve experiences of the benefits system. With the severe disability group, for example, I hope to be able to say more about the work we will do to kick that on and test that model. We think the model is right, because it reduces the assessment burden on people, particularly where their conditions are unlikely to improve. I would argue that scrapping the work capability assessment provides a good opportunity. We have many debates in this House on that over the years. I am also thinking back to debates before my time here—that was a very controversial issue. Scrapping that assessment is the right thing to do, and it allows us an opportunity to focus on quality decision making over and above the current picture.

We want to better gauge fluctuating conditions in the benefits systems, and we want to test that to see what we could do to provide better-quality support and help for people navigating the benefit system with fluctuating conditions. That is as well as the feedback that came through loud and clear in the responses to the Green Paper: they said that they wanted to see the Department matching expert assessors with their particular conditions, because they think that greater understanding will lead to better outcomes. I am looking forward to the opportunity to debate those issues in the weeks and months ahead.

[Barbara Keeley]

It seemed like the Minister was winding towards his last few sentences, so I did not want us to end the debate without once again thanking carers and the We Care Campaign, who have done such a wonderful job. The Minister has not mentioned carers much, which is disappointing given that carers were mentioned such a lot previously. The Minister talked about people with disabilities wanting to get back into work, which is admirable, but we ought to be constantly thankful for the hundreds of thousands of people who have given up work so that they can care. We owe them a massive debt.

I think I am right in saying that his Government have not done anything like as much work as previous Governments have for carers. They do not have a national carers strategy any more, which we did under previous Governments. It is a pity that, it having been raised so many times in this debate, he has not mentioned carers more.

[Tom Pursglove]

I have not finished my remarks yet. It is important to thank carers, who do a remarkable job and provide incredible support, often to loved ones, family members, and friends. I recognise that is often very challenging, which is why we provide support through the carer’s allowance. The hon. Lady was not in last week’s debate, but I committed to look at carer’s allowances and the thresholds. It is an issue that is being raised fairly regularly in the context of these debates, and I repeat that commitment today. I want to see if the balance relating to carer’s allowance is right, and whether there is more that we can do.