Care Bill [HL]

Baroness Deech Excerpts

Monday 29th July 2013 Lords Chamber

Moved by

[Baroness Deech]

105SA: Before Clause 107, insert the following new Clause—
“Unpaid carers and co-dependants: financial rights and obligations
(1) The Secretary of State must arrange for a review of the legal and financial rights and obligations of—
(a) unpaid carers and those they care for, and (b) co-dependant family members who share a house,and who in the case of paragraphs (a) and (b) are adults within the prohibited degrees of marriage and who have lived together in the same household for a period of at least five years.(2) The review referred to in subsection (1) shall be for the purpose of considering the creation of a legal status that is non discriminatory and the review shall include rights and obligations arising on the death of one of the adults included in subsection (1)(a) and (b).
(3) The Secretary of State shall report to Parliament on the outcome of the review and the arrangements made by the Secretary of State must provide for the review to begin as soon as practicable and include a full public consultation.”

[Baroness Deech]

My Lords, I return once again to the treatment, during life and at death, of elderly siblings or close family members who have lived together for years but whose position vis-à-vis each other and the state is fragile. Noble Lords may recall that I addressed this issue twice during the passage of the Marriage (Same Sex Couples) Act and that I have spoken about it on several occasions in debates. You wait for years for the right Bill to turn up and then two come along together.

In 2004, the House agreed to an amendment that would have extended civil partnerships to family members in view of the financial disadvantage they suffer under inheritance tax, but not only inheritance tax. Civil partnership structures may have been overkill, yet the Government acknowledged the importance of the issue even though the amendment was overturned in the other place. Still nothing has been done. I have tried to persuade the House more than once to take heed of the unfair way in which carers and siblings are treated in our law—indeed, they perceive themselves as being treated unfairly—compared with those in a sexual relationship.

In the course of the Civil Partnership Bill 2004, some Members of this House said that it was not the Bill through which to right an injustice. During the passage of the Marriage (Same Sex Couples) Bill the same argument was made. However, where there is a wrong we should hasten to take the opportunity to remedy it without resorting to technical or process arguments.

The unfairness has increased. Every adult in this country can now marry or enter a civil partnership, for whatever reason, with concomitant legal advantages. Only family members cannot benefit. Today I received a letter from two such people. They live together in their family home—one is divorced, the other never married—and when the surviving parent died six years ago they paid a great deal of inheritance tax. They feel that the current law treats them unfairly and fear that the son, who will inherit from both of them, will again have to pay a vast amount of tax. They say there is nothing they can do about this. Cohabiting couples can choose to marry and thus benefit; and same-sex couples can marry or enter a civil partnership. However, because they are blood relations there is nothing that they can do.

--- Later in debate ---

I respect the wish of the noble Baroness to care for those who care for others. However, I hope she can see that she was in fact right when she said that the Care Bill was not the vehicle that she was seeking. I hope that she will accept that what she proposes would require a root-and-branch review of the whole tax and welfare system and that the Government and society show no sign of being persuaded that this is the right route to go down. Although the noble Baroness will be disappointed, I hope that noble Lords will accept that the Care Bill offers much in support of carers and that the noble Baroness will be content to withdraw her amendment.

[Baroness Deech]

My Lords, we start from the position that the European Court of Human Rights found that the situation was discriminatory. As far as I am concerned, it has nothing to do with the Christian Institute or attacks on civil partnership. I have nothing to do with the Christian Institute. I got interested in the Burden sisters’ case because two of my former students were their barristers and the two ladies wrote to me. I then remembered all the other situations that I knew about.

This is not a question of forcing a relationship on anyone. We all know of situations where two people choose to live together: no one has forced them to and either of them could have moved out years ago. There are many of these situations around the country. Two family members have lived together voluntarily and feel slighted when death and other difficult legal situations pop up and there is no proper law for them. That is why I said in my amendment that I was referring to adults who have lived together for five years—I could easily have said 20 years and it would have come to the same thing. I am no longer pushing for a relationship because that has been seen by many in the House to be inappropriate. However, I think it would be heart-warming to those who have written to me and taken an interest in this if the House were to be a bit more generous-spirited towards people who find themselves in this situation. It is a question of equality in a situation where the European court did find that there was discrimination.

People are not tied to each other in such a way that one might take advantage of inheritance tax relief—they have chosen to live together and would expect a hand of equality to be offered to them. The noble Baroness, Lady Northover, pointed out that only a very small number of people pay inheritance tax. The other side of the coin is that, if there were some generosity, for example towards siblings in this situation, a very small number would be affected. As far as I understand it, avoiding inheritance tax is rather more complicated than the noble Baroness has indicated. It takes quite some confidence to start making gifts when you think that you only have seven years to go. As far as I know, if you carry on living in the house, it could hardly be regarded as a gift that you have handed over to someone else; you would have to move out to make it plain that it was a gift.

I hope that between now and Report, the Government would at least give some indication that they will look at inheritance tax in the situation that I have described. Otherwise I might well choose to come back to this in the interests of those who have written to me and who feel that they do not get the same generous treatment on death as others. In the mean time, I beg leave to withdraw my amendment.

[Baroness Barker]

Before the noble Baroness does that, I would just make a point of fact. If people make arrangements in respect of their property for the purposes of minimising their inheritance tax, they do not have to move out. That is a matter of fact—they can continue to live in the property. I would not like people watching our debate to take what the noble Baroness has said as fact. I believe that she is wrong.