Welfare Reform Bill

Baroness Butler-Sloss Excerpts

Tuesday 14th February 2012 Lords Chamber

[Lord Kirkwood of Kirkhope]

My Lords, I would like to intervene briefly in this debate. I think that a household benefit cap is a wholly reprehensible policy device. I am absolutely and implacably opposed to it. However, I know when I am licked and I think that the Government have come a huge way in easing the path of the 67,000 families, although I still have fear and concerns for them. My purpose in intervening is to ask my noble friend to assist me by reassuring me that, with the extra spending envelope, he now has the capability—working closely with local authorities and Jobcentre Plus—to track the destinations of these families over the next few years. Colleagues who have been following debates on social security internationally know that, in America, the changes made in 1996 by President Clinton meant that people fell off the lists in droves and no one could find out where they went. The social security system then spent years trying to pick them up.

The fact is that 67,000 is 1 per cent of the case load; it is not a big number of people. I am reasonably assured now that, with the finances available to local authorities and Jobcentre Plus, it should be possible to get a report. When we get this important report—and I, too, agree that that is an important concession—the House will be able to be confident that none of these families has disappeared. I do not want any of these families to be “disappeared”. I hope that my noble friend can give me that assurance.

I do not want this benefit cap to be anything like an accepted part of the landscape in future. I think that it is a sticking plaster and that an entitlement override is wholly wrong. However, I have enough confidence in my noble friend to know that if we get universal credit up and established and running well, and if he switches his attention—as I hope he will—to housing benefit in the context of a proper housing policy, and I would support him in doing that, we can trade our way out of needing a benefit cap. That is the way forward. I accept, however, that in the short term we are stuck with this. I hate it and will be pursuing it in regulations as aggressively as I can. However, as I said at the beginning, I know when I am licked and I hope that the Government will get on and do this properly.

I hope that the noble Lord, Lord McKenzie, will not press this idea of having an independent body on the benefit cap. I want nothing to do with independent bodies or anything else of any kind that has to do with the household benefit cap. Therefore, if he presses his amendment, he will find me—unusually, perhaps, in this case—in the opposite Lobby.

[Baroness Butler-Sloss]

My Lords, I would like briefly to take up a point made by the right reverend Prelate the Bishop of Ripon and Leeds in relation to kinship carers. I spoke previously on this and I remember that the Minister was sympathetic. I would be very glad to get some reassurance as to where his sympathy lies and how he proposes to endorse it.

[Lord Newton of Braintree]

My Lords, I am intervening only briefly, partly because I do not want to attack the right reverend Prelate, who seemed to be in a much less militant mood than he was on the previous occasion. I will, therefore, not repeat the remarks that I made then, when I made the point that what he was asking for was an increase in the benefit cap. I refrained from saying at that time—and the House ought to bear this in mind when thinking about all of this—that child benefit for the first child is now worth about £1,000 a year tax-free. For every other child it is a bit less than that. Bearing in mind that it is tax-free and that we are talking about a benefit cap of £26,000 net, which is said to equate to £36,000 gross, if you put child benefit on top you are looking at a position in which you would have to be a higher-rate taxpayer in order to hit the benefit cap, in terms of what you would have to earn. People ought to bear that in mind.

My main point is to express some reservations about the amendments tabled by the noble Lord, Lord McKenzie. What do we mean by “local area”? He really needs to answer that. My noble friend Lord Fowler and I—and I have already referred to some of our travails over housing benefit in 1986 to 1988—looked at this question of localisation and regionalisation. It is intractable, because housing costs do not vary on a regional basis or even on a district or city or borough basis; they vary on a street-by-street basis. Is that what the noble Lord has in mind? If so, it would become a complete administrative nightmare. He needs to think very carefully before pressing this particular line, whatever its intellectual attractions.

--- Later in debate ---

I should like to put on record how much I have appreciated the discussions I have had with the Minister on this issue and how much I have appreciated the general progress of the Welfare Reform Bill. We have been very well served by the dialogue that we had. We have also had the promise of a review in 30 months’ time of how the system is operating. I say to the Minister, with an emphasis on the regulations, which will have to be approved by both Houses, so we are not up against the privilege issue again—this is a free-standing chance to get it right—that I do not want us just to look at this in 30 months’ time and see whether we have it right; I want us to use the process and the time that we now have for intensive discussions and consultations in the run-up to the regulations, in the hope that we can produce, as we have done in other cases, a broad consensus or agreement on how to balance the interests of the various parties. That kind of approach, taken outside the Chamber and at slightly more leisure, will be the best way to serve the interests of innocent parties and the paramount interests of children. Frankly, that is where most of us involved with the amendment started—and it is the clear view of the House. In that spirit, I beg to move.

[Baroness Butler-Sloss]

My Lords, I put my name to Motion H2—which is linked to Motion H1—and will speak to it now. The amendment was drafted by the noble and learned Lord, Lord Mackay of Clashfern, who is, as I am sure noble Lords will know, away on a well deserved holiday. He is very sad that he cannot be here today; I am literally standing in for him.

The noble Lord, Lord Boswell, has reminded us of 25 January on Report when there was overwhelming support for the amendment put forward by the noble and learned Lord, Lord Mackay of Clashfern, demonstrated by the very large vote in this House. Of course, that has been reversed by the Commons. This amendment is, quite properly, not a replica of the earlier one. The earlier amendment referred to the payment of fees to the CSA by a single parent claiming maintenance from the other parent for children living generally with her rather than with him. I welcome the Government listening about the cost of the initial charge, and the very substantial reduction of the charge to £20. They are very much to be congratulated on that.

This amendment has a much more limited function and deals with a much more limited situation in which all efforts have been made to obtain payments by the other parent and it is necessary for the single parent to use the CSA statutory mechanism. If money is received from the other parent by that method, there is a collection charge, which provides a deduction to be made from the maintenance received. As the noble Lord, Lord Boswell, has already said, that seems to be a levy of between 7 per cent and 12 per cent of the money collected from the parent with care of the children.

I take on board the points made by the Minister, and what Frank Field said, as well as the help given to single parents by state aid and the fact that a review of this charging regime is promised. However, I make no apology for repeating the quotation made by the noble Lord, Boswell, of the noble and learned Lord, Lord Mackay, who said:

“I do not believe that it is fair to require them to pay charges when they are not responsible for creating the need for the use of the service”.—[Official Report, 25/1/12; col. 1090.]

I would like very briefly to make a few more points. The money is to help in the upkeep of the children and not for the parent. Many highly regarded charities support this limited amendment—time does not permit me to say which they are but there is a considerable number of them. We are looking at parents in the poorest section of society who may receive a very small amount of money from the other parent and upon whom the major financial burden of the care of children rests.

I understand that—unlike the Government’s view—most cases are not very expensive, costing £350 a case if managed through the main computer system and £600 a case if managed off the main computer system. Of course, there are cases that cost significantly more, and sums of up to £25,000 have been mentioned, but I am informed that they are the exception, not the rule. According to the Government’s own impact assessment, the future average cost of processing an application is expected to be about £220.

This amendment, if accepted, would have limited financial impact on the CSA for the majority of applications but would make a significant difference to this deserving group of single parents. I urge the Minister to think again.

[Lord Newton of Braintree]

My Lords, I am intervening—as usual, you might think—for two reasons. First, on the previous occasion I sat down there and declared that I was standing shoulder to shoulder with my noble and learned friend Lord Mackay of Clashfern, which indeed I was, and I was therefore part of the vote that has caused us to be having this debate this evening. I will say something about that in a moment. Secondly, when this got to the Commons, a person who I do not know, described as Mrs McGuire, who I take from the context is a Labour Member of Parliament, read out the list of Conservative former Cabinet Ministers who had voted, including my name, and went on to say:

“I do not think that any of these people were fully paid up members of the liberal tendency”.—[Official Report, Commons, 1/2/12; col. 926.]

If it were not for parliamentary privilege, I would sue her! I just wanted to get that off my chest.