Welfare Reform Bill

Baroness Hayter of Kentish Town Excerpts

Monday 12th December 2011 Lords Chamber

[Baroness Howe of Idlicote]

I hope noble Lords will forgive me; I was a few minutes late in coming in, so I missed a little bit of what the noble Baroness, Lady Bakewell, said. As I was listening I wondered to what extent more carers would or could be encouraged to be carers if in fact such a situation as she was proposing existed. Perhaps I am looking at this in a slightly disorganised way, but if there is an answer to my question, I would like to know it.

[Baroness Hayter of Kentish Town]

My Lords, I know that the whole House recognises the important contribution that carers make, and that all will endorse the case made by my noble friends Lady Bakewell and Lady Pitkeathley. Both noble Baronesses know this field intimately—the former from her involvement with an ageing population, with all its aches and pains, and the latter from her sterling work with carers over so many years. Nobody can gainsay their experience in this field. This amendment in their names is a true acknowledgment of the work of all carers, whether for the young, the old, the sick or the disabled.

We know that the Minister has considered the needs of carers, and we welcome the announcement this afternoon—just minutes before this Report stage started, so it just hit the promised timescale—that caring for people receiving both a higher and lower daily living rate under the new personal independence payment will qualify for the carer’s allowance.

However, as yet we have absolutely no idea as to the threshold of disability that will place someone into PIP, nor do we know who will take the hit of the 20 per cent cut—a cut of one-fifth of all such payments—that the Government intend to make. Will fewer people be placed in PIP than into the current two higher rats of DLA? We similarly do not know whether carers themselves are safe from cuts. Indeed, it is noticeable, as was impressed on us today by the Joint Committee on Human Right in its scrutiny of this Bill, that the Government’s impact assessment makes absolutely no mention of the impact of some of the Bill’s changes on carers, even when the impact will be very significant. That is so too for those who might lose their DLA under the new PIP thresholds. Not only would they lose that income but would become subject to the benefit cap.

We must all understand the anxiety, even fear, that some are experiencing by this uncertainty over their future. We also do not know how the Minister intends to deal with carers under the new rules to impose in-work conditionality on universal credit claimants. Although some carers will fall into the no-conditionality group, those who do not may be asked to increase either their hours or their earnings. Although flexibility has been promised, it is not clear how that will work.

Finally, many carers look set to be hit by the benefit cap. Those who are caring for a DLA and, I presume, PIP recipient who lives in the same household will be exempt from the £500 a week benefit cap. But those who care for someone who lives independently—perhaps an adult or a child, as we have heard, or an elderly relative—will see the carers’ allowance, which recognises this responsibility, hit by the cap. If the carer is single, this means that their benefit to include their rent even in London will be capped at £350 despite their reduced ability to earn by virtue of their caring responsibilities.

We will discuss the various ways in which that cap is unfair at a later stage of the Bill but in our discussions of carers today, we surely need to remember that the desire to support carers is not always translated into reality in the detail of this Bill. When we debated this amendment in Committee, the Minister said that only a few carers would be made worse off by the lack of a disregard; that is, those working between two and five hours a week. But it is exactly those short-hour jobs that universal credit was intended to enable. It is precisely carers who are most likely to need these mini-jobs as they fit in with their caring responsibilities. Many people, perhaps 50,000, will be affected if the Government reject this amendment. They are people who want to work and who care.

In another case described by Carers UK, a 45 year-old man who lives and cares for his 65 year-old father who has dementia has had to give up work because the father needs 24/7 care and he has to be there. His sister has her own family and does not live close. She travels to look after their father for an afternoon and evening a week, which enables the son to go out to work. He can earn a little to supplement his income support. At the moment, if he earns £18 his benefits are not affected because of the £20 a week disregard, as has been mentioned. But, under universal credit, without this amendment and the earnings disregard, he would have only the basic disregard of £13.50, which is for everyone. There will be no special disregard for carers. After that, his benefits will taper away. He would keep only just over £15 of his earnings, compared with £18 now. That sum is serious money for someone living on benefits. We must remind ourselves that that person is living on benefits only to save the state a fortune should it have to care for the father at home.

To make use of the more generous taper in universal credit, or to overcome the loss of this reduced disregard, the son would have to work increased hours. However, he cannot do this. His sister cannot stay any longer and there is no one else to be with his father. It is a catch 22: he is receiving no recognition that his position as a carer restricts his employment potential. The whole thrust of universal credit, which we support, is to make work pay. This amendment seeks to do just that for carers, and thus has the support of this side of the House.

--- Later in debate ---

[Baroness Hayter of Kentish Town]

If the noble Lord has no idea of how many people are involved, but thinks that the number is less than 50,000, surely he cannot know how much it would cost, and therefore this may be another small amount of money. If the number is small, it cannot cost much to give these people an extra £4 a week.

[Lord Freud]

This is not directly a money matter; it is about the structure and the simplicity of the system. When you are changing from an inchoate system, which is what we have now, there are patches where people are a little less well off than they would have been, and that is why we have transitional protection. As you move to a simple, clean structure, there are problems in doing that, and that is what we are trying to address. By definition, it is not possible to overhaul and simplify a system and keep all the existing rules. Existing claimants will not lose because of the transitional protection, so those who have built their lives around a four-hour week will not lose by this, although within the structure there will be a drive to encourage people to do a little more.

I hope that noble Lords understand what we are trying to do here. I know that there is general support for universal credit, but we must maintain something that is tangibly more simple. With that explanation of why the Government cannot support this amendment, I would urge the noble Baroness to withdraw it.