Welfare Reform Bill

Baroness Howe of Idlicote Excerpts

Tuesday 13th September 2011 Lords Chamber

[Baroness Howe of Idlicote]

My Lords, I join the noble Lord, Lord Kirkwood, in his concern that the traditional practice of reasonably sized contributions from noble Lords has once again been put aside and a meagre seven minutes advisory per speaker suggested in its place. I notice that he has gone well over that time limit, which gives us plenty of opportunity to follow his example. There will clearly be a great deal to do in Committee and at other stages of the Bill in your Lordships’ House—not least as much of the Bill was apparently not discussed at all during its passage in the other place.

Perhaps the most remarkable thing about this Bill, with its principal aim of simplifying benefits and making work more attractive and much more worth while than living on benefits, is that practically all welfare rights pressure groups, think tanks and involved charities and many individuals are theoretically in favour of such an approach. Rightly so, as who would want a system which continues to encourage family dependency if jobs are genuinely available and wanted?

The snags emerge when we begin to look at the detail, particularly when families and children—even more important, when disabled adults and children and those with mental health learning difficulties—are involved. The closer one examines the huge volume of evidence, including many individual histories written in fairly despairing terms, the more obvious it becomes that the most vulnerable and least able to cope will be hardest hit. Even though there may have been some unnecessary scaremongering, the concern of many third-sector organisations and others working with such families will be to hear reassurance from Ministers as to how clearly essential and necessary support will be maintained. There is also the problem that unless the local authority finance for these essential services is to be ring-fenced, a localism approach may indeed be creating a postcode lottery.

I shall mention one or two issues. On housing for example, the plan to require those in receipt of public support to move to different accommodation if they have an unused bedroom is one concern. The noble Baroness, Lady Wilkins, overwhelmingly made the case here. Reassurance from Ministers will be needed that special arrangements will be possible or extra funding available for more expensive accommodation, if the private sector is the only alternative to a compulsory move. One worry is the understanding that the severe disability premium is to be scrapped, yet surely that kind of situation is exactly where extra help is essential. This may be one of the areas being looked at, but the Children's Society’s view is that it could mean a loss of up to £2,876 per annum for such families.

There is also a need to look at other issues that will affect the likelihood of those with caring responsibilities obtaining a job and at the effect of recent positive measures. It is good news indeed, for example, that the Government are actively involving and encouraging third-sector participation, not least by ensuring that when both sectors are competing for caring contracts, the system does not allow the public sector a tax advantage.

The change in the retirement and pension age will also have a huge impact. As we know, Ministers are eager to raise the retirement age even earlier, but closing the gap between men’s and women’s retirement age also means that women must work longer and therefore will have less time for any caring role. Finding jobs that will allow time for disabled caring responsibilities will become increasingly difficult unless more positive action is taken. Have the Government, for example, thought about a scheme that would reward businesses that make special efforts to provide flexible working opportunities for such families? I would be glad of an answer from the Minister.

Again, frankly, the likelihood of older women, whether carers or not, being able to find jobs, full or part-time, into the intermediate economic future will be minimal, and that situation needs facing. Barnardo’s and its associates, which have sent your Lordships detailed briefings, are also concerned about a number of problems. Family and friend carers, for example, who are bringing up a child who would otherwise be in local authority care, should, they think, be exempted from conditionality requirements under universal credit for a year. Also, from October 2011 carers will have to be available to work when the child is five rather than seven years old, with all that that means for extra childcare costs. Childcare costs, as the Minister knows, are seen as a major obstacle to women working. So, as the Bill progresses, it will be increasingly important for the Government to convince voluntary organisations and family and friend carers that the combination of their proposed changes will not result in even higher numbers of children in care and higher overall costs for the state.

I make one final point: there will be a great need to ensure that it is the main carer of the child, the vast majority of whom will be women, who will continue to receive whatever allowance is due to the family. This is an issue of particular concern for Platform 51 and other such organisations and is vitally important when one looks back to the past and realises that this sum has often been the only money the carer has had in order to ensure that the family is fed.