Universal Credit (Transitional Provisions) (Claimants previously entitled to a severe disability premium) Amendment Regulations 2021

Baroness Drake Excerpts

Thursday 11th February 2021 Lords Chamber

[Baroness Drake (Lab) [V]]

My Lords, I congratulate my noble friend Lady Sherlock on bringing clarity to the dauntingly complex in expressing her regret. We should be clear, to quote Scope, that this change affects a group with some of the highest support needs and extra costs. These are the people we are putting at risk, many of whom are shielding at home and facing spiralling energy costs. I, too, quote Marie Curie, because it is such a reputable organisation, about those living alone with lifetime illnesses and the cut in SDP. It says that without this money available, many more people are likely to struggle to afford the costs of care. That is likely to reduce social contact, increase their social isolation and have a devastating effect on many people nearing the end of their lives.

I have absolutely no doubt that the Minister is committed to enhancing the well-being of those with serious disabilities, but regrettably, as so powerfully articulated by my noble friend and reputable voices on behalf of those with disabilities, the new regulations will give rise to detriment for some severely disabled claimants. The loss of SDP under universal credit leaves new claimants worse off. Vulnerable claimants might not understand that they could suffer financially by moving from legacy benefits to universal credit. Not all existing claimants will be fully compensated for the loss of the severe disability premium when moving on to universal credit, and the transitional compensation that is made available has limitations. Claimants on those payments will not receive any annual uplift in their universal credit, so the support erodes away. The payments are insufficient to match the combined losses under universal credit. The payment could be lost through certain changes of circumstance, and the managed migration has been paused.

The Explanatory Memorandum did not initially make it clear that these transitional payments will erode over time. That is ironic, because these regulations present one of the harshest examples demonstrating why legacy benefits should be uplifted in line with universal credit throughout the pandemic and that the £20 weekly uplift should be retained after April.

In February, the Disability Benefits Consortium reported that over 2.5 million people are claiming legacy benefits, the majority of whom are disabled. Pre-pandemic, nearly half the people in poverty were disabled or living with disabled people. The pandemic has compounded their difficulties.

On 8 February, I received the letter that the Minister issued to all Peers, highlighting the great efforts made by DWP staff during the pandemic, which I completely endorse; I am full of admiration for the effort they have put in during the pandemic. However, she went on to refer to public expenditure on job protection, sustaining the welfare safety net and interventions to get people back into work. That and other public expenditure has to be assessed against the economic costs of not undertaking such state intervention. Yes, the Chancellor has challenging judgment calls to make, but the efficacy of those judgments does not hang on cutting the income of those with the severest disabilities. He has far more powerful fiscal measures in his armoury. Nothing about the saving, which targets such a vulnerable group of people, will seriously contribute to the challenges he has to deal with.

The complexity and downsides of these new provisions will make them very difficult, if not impossible, for some severely disabled claimants to understand. As Citizens Advice said:

“Everyone’s situation is different. That’s why it’s important to seek independent advice before making a voluntary move to Universal Credit from another benefit which includes a severe disability premium. You won’t be able to reverse your decision … you could end up worse off, despite the temporary uplift to Universal Credit.”


I add to the compelling questions posed by other noble Lords: where can claimants go for this advice? Where will they find the sources of this advice and will the DWP pay charities to assist with advice provision? As I said on opening, this is a sad tale.