Severe Disability Premium: Transfer to Universal Credit

Baroness Lister of Burtersett Excerpts

Tuesday 7th May 2019 Lords Chamber

[Baroness Buscombe]

My Lords, I make it clear that current severe disability premium claimants will receive transitional protection as part of the managed migration process. We now have transitional payments in place for severe disability premium claimants who have moved on to universal credit. As the noble Baroness well knows, we are now spending over £50 billion a year on benefits to support disabled people and those with health conditions, which is over £4 billion more than in 2010. We continue to evaluate the impact of our policies on this system. As the lead Minister for research at the Department for Work and Pensions, I am very clear that we make it our business to evaluate all the policies that we put in place.

[Baroness Lister of Burtersett (Lab)]

My Lords, the Minister said that transitional protection will be available for people moved on to universal credit from other benefits, provided their circumstances stay the same. However, surely natural migration occurs only where circumstances change—sometimes very trivially. As a result, many people are a lot worse off, because they have been transferred on to universal credit, despite the Government’s original claim that nobody would be worse off under universal credit. Will the Government look again at natural migration and pause it to see what can be done to provide transitional protection for this group, who are just being forgotten about?

[Baroness Buscombe]

As the noble Baroness knows, the focus of this Urgent Question is the court case and severe disability payments. We put that block—if I can call it that—in place on 16 January to stop those with a severe disability migrating, and to prevent any more people who are on severe disability premium naturally migrating to universal credit, because we recognise that there is an issue here.

However, to deal with the stock of SDP claimants who have already moved to UC following a change of circumstances, it has been agreed that claimants will be eligible for a transitional SDP payment if they meet the following criteria: that they were eligible for SDP before they claimed UC; that their UC award has not subsequently terminated; that they have not ceased to be entitled to one of the qualifying benefits for the SDP—the middle or higher-rate care component of DLA, the PIP daily living component, the armed forces independence payment or AA; and that no one has become a carer for them. This is focused on that bespoke cohort of individuals the judgment relates to: those who live alone, without a carer.

[Baroness Lister of Burtersett]

Perhaps I might come back, because the Statement talks about people being moved on to universal credit generally. The terrible position of those on SDP is the worst tip of an iceberg, but there are a lot of people underneath it who are losing out because they are being naturally migrated to universal credit—often because of the most trivial changes in circumstances, such as moving house.

[Baroness Buscombe]

My Lords, I am sticking to the Urgent Question—which is about the severe disability premium. However, the reality is that we are looking at that judgment and considering with care the way in which we support those who are transferring naturally to universal credit. It is important that we have the legislation in place as soon as possible, so that in future everybody is manage-migrated, as it were, rather than naturally migrating, which, as the noble Baroness has said, some are at the moment.