Welfare Reform Bill

Baroness Meacher Excerpts

Tuesday 17th January 2012 Lords Chamber

[Baroness Meacher]

My Lords, I will speak briefly to Amendment 50ZA and will refer to Amendment 50ZC. I very much applaud the aims of the noble Baroness, Lady Lister, in seeking to have publication of information about the allocations of money to local authorities for the purposes envisaged. She presented her case very powerfully as always.

I want to thank the Bill team for a most helpful conversation. I understand that the £36 million allocated for crisis loans could be spent by local authorities on grants or payments in kind as well as loans. I find that very encouraging. I for one am very suspicious of loans for people attempting to live on the breadline—they can build up even greater problems for the future—other than when provided for budgeting purposes, which I know is very much what the Minister has in mind. If, for example, households receive half their monthly income half way through the month as a loan only to be repaid at the end of the month, that would go some way to ameliorate what would otherwise, for me anyway, be a highly risky set of proposals.

Amendment 50ZA, tabled by the noble Baroness, Lady Lister, would provide information on whether the funds had been spent by local authorities on the purposes for which the Government are allocating them—we all understand that is what they are being allocated for. I have some concerns that, even if the Minister concedes this amendment, it remains true that there is no statutory requirement for local authorities to provide some form of assistance to households in crisis. Many Social Fund crisis loans are sought because mothers, often single mothers, have no cash for the electricity meter—apparently, this is really the dominant issue confronting people who seek these loans—with several days to go before getting any more benefit and, of course, the children are cold and the mother cannot even make a hot meal for them without some form of electricity. I understand that the idea of the settlement letter is to spell out the purposes for which the £36 million should be used. I applaud that. I also understand that the DWP plans to follow up a representative sample of local authorities after one year to find out how they have spent the money.

My concern is that over time the settlement letter might be redrafted—heaven forbid that Ministers even change from time to time—and, if local authorities report after one year that unfortunately the £36 million had to be spent on other matters, it seems to me that there is no way of ensuring that these households in crisis actually have funds allocated to those needs. That is actually my concern. We need to know that there will continue to be a system for dealing with these household crises, particularly for families with children. We do not want these children disadvantaged.

I understand the logic of making the £178 million for community care grants and crisis payments available to local authorities, which are no doubt closely involved with many of these families—certainly, if they are not involved, they should be. The aim, as I understand it, is that these funds need to be brought together with other forms of assistance for these families in order to generate greater value for money. At the moment, the Social Fund is a national system that operates at arm’s length from other services. I recognise that this has some disadvantages. The concern is that every local authority is likely to respond differently to this challenge. How can we be sure that households in crisis will have somewhere to go for help, as I have already said? The Government are already committed to the settlement letter and review after 12 months, again as I have already alluded to. I welcome those commitments very strongly. They are a start, but they are a weak provision in this very important area of policy.

I hope that the Minister will take seriously the need for a more robust system to underwrite what I understand to be the Government's intentions. The amendment tabled by the noble Baroness, Lady Lister, is one option, but whether or not the Minister accepts Amendment 50ZA, perhaps he will consider incorporating in regulations the requirement that the funds envisaged for resolving household crises are indeed allocated to that purpose. I understand that how local authorities want to do that is a matter for them, but I think that ensuring that the funds are focused on that issue merits a sentence in the regulations. That would certainly make a much stronger support for the provision and give an assurance to the House that we have not lost it.

I would be very grateful for the Minister's serious consideration of the amendment. I should mention that I will not move Amendment 50ZC at this stage.

[Lord Kirkwood of Kirkhope]

My Lords, I make a brief intervention to support the amendments, as I did in Committee. Clause 69 is very important for a relatively small but very vulnerable group of people. The discretionary Social Fund has been part of the furniture, if you like, of social security for a long time, and during the period that it has been deployed, people have been able to take advantage of it to save the public purse considerable sums. One of the main purposes behind the discretionary Social Fund is to prevent people being institutionalised in various ways, and it has done that very successfully. There is cross-party agreement that reform of the Social Fund is long overdue, but to abolish or decentralise it like this raises many questions, which remain unanswered. I hope that the Minister will take the opportunity to try to assuage the concerns that some of us continue to have.

First, the process that will now unfold is less than clear to me. Reading the penultimate subsection of Clause 69, I think that an affirmative resolution will be required to give effect to the power that the Government are seeking in the clause, but I should like reassurance about our ability to have ongoing discussion about how the Social Fund Commissioner’s assets and the apparatus that we have in place at the moment will be dismantled in a way that makes sense, and that the allocation formula for the disbursement of these moneys is carefully considered and consulted on, because the discretionary Social Fund spend obviously has a very spatial dimension to it because some communities need it much more than others. We need to be careful about how we make that decision in the first instance. That is another reason why Parliament, by virtue of affirmative resolution or statutory instrument, must be continuously approached for advice and reassurance. The sample of local authorities being lined up for the welcome review process needs to be carefully considered because of the point I have just made: the decentralisation process will affect some dramatically differently from others.

I still have serious misgivings about this. If we are going to do this, we need to be really careful that we are getting it correct in the first instance and that the client group who have relied on discretionary payments from the Social Fund in crisis situations are not left wanting, completely abandoned and without access to liquid cash in circumstances where they find it difficult to survive.

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[Lord De Mauley]

I am grateful to the noble Lord. I will write to him.

[Baroness Meacher]

Can the Minister also respond to the point raised by the noble Lord, Lord Kirkwood, which I also raised, on the real assurance—the teeth, if you like—that the Government will need in emergencies to make sure, without specifying how it is spent, that the money is spent on those in greatest need? I would be grateful for a response from the Minister.

[Lord De Mauley]

My Lords, I hoped that I had emphasised that point. A great deal of work has been done with local authorities explaining the proposal and the intentions behind it. We have encountered considerable enthusiasm for the principle. We have put a lot of effort into helping and educating local authorities which will be making the decisions. I hoped that I had emphasised the importance of that point. I am agreeing with the noble Baroness but I do not think that I can go very much further than I have gone.

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Moved by

[Baroness Meacher]

50ZGA: Clause 76, page 56, line 17, at end insert—
“(4) A person is not entitled to personal independence payment unless the person is aged 18 or over.”

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[Baroness Meacher]

My Lords, in moving Amendment 50ZGA, I shall speak also to Amendment 56ZC, the purpose of which is to allow disabled children aged 16 and 17 to continue to qualify for DLA for children instead of PIP until they reach the age of 18. It would mean that they would not have to go through the PIP assessment process until they reach an adult age. It would also simplify the benefits system by aligning PIP with universal credit.

I thank the Minister for sparing time to discuss this amendment at the end of a long day, which was at the end of a long week. I should offer him my apologies because last week I was jetlagged, tired and not very well, and I did not always get all my little ducks in a row. But I understand that 16 and 17 year-olds applying for PIP would not have to go through an income assessment. However, they would have to undertake a capability assessment. The point of this amendment is to sort out some issues of principle and consistency in relation to 16 and 17 year-olds. When I met the Minister, we did not touch on these issues and I should be interested to know his response today.

I understand that this amendment would bring the Bill into line with the United Nations Convention on the Rights of the Child, which defines a child as,

“every human being below the age of eighteen years”.

More particularly—in my view more importantly—this amendment would deal with the adverse consequences of these clauses for the young people affected. In other words, if disabled 16 and 17 year-olds would benefit from being treated as adults, frankly, that would be good enough for me but the fact is that they will not.

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[Lord Freud]

My Lords, I welcome these amendments tabled by the noble Baroness, Lady Meacher, and the noble Lord, Lord Patel. They allow me just to go through how the Government intend to introduce PIP successfully for young disabled people from the age of 16. Clearly, the central question is whether 16 or 18 is the right age. In one sense, all ages are a little arbitrary here. Adulthood is defined at different ages in different contexts. The key to the decision to start PIP at 16 was based around the assessment criteria and at what stage people fit in with those, in terms of the activities that they can undergo and how we can look at them. When we looked at it with a range of experts, we concluded that you would normally expect individuals without disabilities to be able to carry out these activities independently from the age of 16. For example, you would expect a 16 year-old to be able to wash and dress themselves, to communicate with others, to plan, and to follow and make a journey. It is the age at which, currently, you expect individuals to be able to be employed full-time. There is a general expectation that they have the capabilities of adults.

The group looked at whether you would expect even younger people—I had better use that word now, rather than adults or children—to fit this assessment. They concluded that children go through several developmental stages under the age of 16, and they do that at uneven speeds. So, there was a cut-off in developmental terms between the two stages, for the purposes of this test, at 16. The other way of looking at this is that it is about trying to move people into adulthood and independence. A lot of these youngsters are living in their households but need to move to independence. Having their own independent help and their own funding in PIP at that age matches their aspirations to move into adulthood, and allows them to make their own decisions about aspects of their lives.

This is an area where, as we described in our policy document, we have set out our intentions and outlined the key principles that we have debated and agreed with stakeholders. We have set up a subgroup of the PIP implementation development group specifically to help and inform the design and testing of the new system in relation to disabled young adults. Together with the focus group work and the interviews that we have held with disabled young people, their appointees and representatives, this is the process that we have under way to get the system right. One of the most important areas where we are using the development group is around the question of how we look at the process of moving people into the 16 category and how we signpost, communicate and get awareness of the changes and then join up the support for disabled young adults and their families.

Clearly, this is not the only testing that disabled youngsters undergo in this phase of their lives. There are a number of assessments as they move from childhood to adulthood. We will ensure that all young people claiming PIP or moving on to it at age 16 have the appropriate support to allow them fully to express their needs. We know it is important that they have a parent, an advocate or a friend to accompany them to that face-to-face consultation. We are not changing anything in terms of DLA in this area. We are changing a lot of things by moving DLA to PIP, and we will be discussing some of them, but in this area we are sticking with the same age as the existing DLA arrangements.

There was an anomaly that the noble Baroness, Lady Meacher, tried to pin me down on and defied me to find a good explanation for. I have been challenged and I shall do my best. On the point about the difference between the universal credit at 18 and PIP at 16, the blunt answer is that these are different benefits for different purposes. It is important that we do not think of PIP as an income supplement; that is not what it is, and nor is it for someone who is out of work. PIP is a payment to people who are disabled who will always need extra money to live because their costs of living are higher, and we will pay it regardless of whether people are in work or out of work. That is why it is a different argument. By giving PIP earlier, we are giving youngsters their independent funding to run their own lives from that point—not from the point when they are meant to be in the workforce and fully independent—when, if they do not have a job, they will need an income supplement. That is the difference. I hope that I have risen to the challenge; I am sure that the noble Baroness will say that I have not, but I have done my best.

We are working closely with the Department for Education to explore evidence gathered so that we can have a single assessment for an education, health and care plan that can be used to support a personal independence payment claim. We are trying to get rid of all the multiple assessments.

[Baroness Meacher]

Does the Minister accept that there are a lot of people who are very worried about this shift? The reality is that many of them who might have been entitled to DLA will not be entitled to PIP and will therefore lose out. They will also lose out on the disability additions. There is quite a big financial consequence here.

[Lord Freud]

I accept that there are concerns but one has to stand back. We are spending £12 billion on PIP in real terms, which is the same as the spending in 2009-10. The talk about a big cut refers to a big cut of a projection—the 20 per cent. I want to reinforce that point. In this House we should not get carried away with the simplicity of the big cut. It is not a big cut. With PIP we are trying to direct scarce resources, at a very difficult time, to the people who need them most. That is the purpose of it.

One of the other things that is happening—and is probably the biggest difference in emphasis between DLA and PIP—is that PIP is trying to take account of people with mental health problems in a way that DLA finds much harder. That is why the assessments and activities that are looked at are very different. Therefore, PIP is different and there are changes. Some people will lose out but they are the people who need the money less. That is the point of making the adjustment. However, the overall sum remains that £12 billion.

To pick up the point of the noble Lord, Lord McKenzie, we have the power and flexibility to treat 16 year-olds differently. This includes different assessment processes during the migration period. We are working actively now with children’s groups to make sure that we have the right migration strategy for youngsters and to finalise it. We will publish that approach. It is not a settled matter, which was, I think, the noble Lord’s real question. We are working very hard to get it right.

Let me deal with some of the amendments. Amendments 57, 58, 50ZGA and 56ZC would prevent our abolishing DLA for those aged 18, and potentially limit our flexibility by imposing statutory duties that would be less able to respond to change, especially as we refine and improve processes as a result of feedback and our experiences. It is very important that we have that flexibility. One of the things that we will discuss later this evening is feedback and the amount of research that we will carry out on a continuous basis. Clearly we want to incorporate that into how we apply PIP, particularly for youngsters.

This is very technical but I need to make it clear that the Government consider Amendment 56ZC to be consequential on Amendment 50ZGA; and, separately, Amendment 58 to be directly consequential on Amendment 57. I do not want any misunderstandings later, although the noble Baroness, Lady Hollis, is not in her seat at the moment to give me a piece of her mind. Given the reassurances that I have given the noble Baroness, and the technical limitations that the amendments of the noble Baroness, Lady Finlay, would impose, I hope she will withdraw her amendment.

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[Baroness Meacher]

I thank the noble Baroness, Lady Finlay, and the noble Lord, Lord McKenzie, for contributing to this short debate. This amendment was tabled very late and others have not had a chance to catch up with the thrust of the argument. I thank the Minister for his reply, although I doubt that the considerable number of people who will be losing out as a result of this provision will be very reassured by his response. I do, of course, understand—at least in general terms—the thrust of the Government’s commitment to focus resources on those most severely disabled. I beg leave to withdraw the amendment.

Amendment 50ZGA withdrawn.

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[Baroness Thomas of Winchester]

My Lords, the importance of this amendment, and of collecting evidence from a person’s healthcare professionals, cannot be overstated. Some of us are shocked that not all medical reports are looked at presently under DLA; I think only around half are.

Turning to the assessments, I, too, was very interested in the finding by Citizens Advice that welfare rights workers report that the WCAs often present a distorted picture of what a claimant has said. In case noble Lords have forgotten that report, it said that 37 clients were asked to examine their reports and establish how accurately they reflected what they had said and done in their assessments. Sixteen were found to be very inaccurate. We know from experience that if you hear two people speaking to each other and one of them tells you afterwards what they said all over again, it often does not match your recollection of what they said at all. I note that in relation to PIP we are told:

“Individuals or professionals who support the customer on a regular basis will be able to provide evidence to support their claim”.

Who will ask these people to provide evidence? Will it be written evidence? If it is not from a healthcare professional, who else might it be from? The finding of Citizens Advice in connection with the WCA alarms me a great deal about the quality of some of the Atos healthcare professionals who are currently carrying out the assessments. I fervently hope that those doing the PIP assessments will be of a higher calibre altogether.

[Baroness Meacher]

My Lords, I support Amendment 50ZR, tabled by the noble Baroness, Lady Grey-Thompson, and to which I have added my name. The noble Baroness has made the case comprehensively so I will be brief. She referred to the alarming error rate in benefits decisions. At the same time, I am aware that steps are being taken to improve the accuracy of those decisions.

Here I want to make sure that we do not forget the particular problems of people with learning difficulties and mental health problems, who may not adequately convey their limitations in a face-to-face assessment. These groups have to spend their lives concealing their symptoms. They are embarrassed by them, and the last thing they want to do is to spell them out. They are acutely aware of the stigma associated with those symptoms. The Government are ensuring that claimants can take someone along to their assessment. There is no doubt that that will help and in some cases lead to appropriate outcomes. However, for many having a companion simply will not be enough. The companion cannot conduct the interview and the pressure on these individuals to conceal their problems is very difficult to overcome in these one-off assessment interviews.

There are also people for whom the very idea of one of these assessments is completely unacceptable. The obvious example is of people with agoraphobia, for whom just going out of the house can present real problems, as can getting on a bus or whatever it is. It is a real problem for this particular group. These people would benefit massively from having a psychiatric assessment at the start of the process, which would eliminate the need for them to go through all the distress of having to do something that they find completely intolerable. It is very fashionable to knock medical assessments but, having worked in mental health for a quarter of a century, in my experience psychiatric assessments are bio-psycho-social assessments. I think that was the term that the Minister used. They do look at the biological, the social, the genetic and every other aspect of someone’s functioning.

Also, any self-respecting psychiatrist will not do an assessment in a single sitting. They expect to assess someone over a period of time. They will bring in the views of social workers, nurses and others who have seen someone over a period. There is no way that a one-to-one assessment by someone who may be a nurse but not a psychiatric nurse—even if they call in someone who might be a psychiatric nurse but does not know the patient—can meet the need to make sure that someone is properly assessed, gets the benefits to which they are entitled and does not get benefits to which they are not entitled. It works both ways. This is an important issue.

Other examples include people with a psychosis whose symptoms are not controlled by medication. Many people’s symptoms are controlled but some people’s, tragically, are not. Those people should be able to have a medical—a bio-psycho-social—assessment and, on the basis of that assessment showing that such a person may not be able to function at all, it should be sufficient. I would have thought that the Government would accept that view.

There are physical diagnoses to which the same sort of arguments would apply. For example, those undergoing treatment for cancer, who again have uncontrolled and uncontrollable symptoms, would fall into this category. I referred to this group in connection with an earlier set of amendments. An early medical certificate for those people would avoid enormous distress and the gross injustice of requiring them to do things that none of us would wish them to do if we saw them face-to-face.

I understand the issue of medical fees, which has been referred to. GPs will not tolerate an inundation of requests for medical assessments without a fee. One of my daughters is a GP. I discussed it with her and she was not impressed by the idea. I am also aware that the Government have introduced an important new element in that the claimant can seek a report from their favoured clinician, who could be anybody—it might not be a doctor. This is helpful but it raises the issue, which has already been raised, of a two-tier system. Some people may be able to afford such a thing; others may not. It is a great step forward and I wish to acknowledge that, but it does not detract from the importance of this amendment. I look forward to hearing the Minister’s response.

[Baroness Browning]

My Lords, I am sorry to come in on Asperger’s syndrome again. I know that the Government involved people on the autistic spectrum in some trials that they carried out over the summer. I just wanted to encourage my noble friend to take the feedback from some of the people who took part in that, in a mock PIP assessment. Because the spectrum, particularly at the more able end, includes people who may be very articulate, on a good day it may be quite difficult to see that this is a communication disorder. On the other hand, you could have an assessment in which, even with the benefit of someone in support in the same room, the person on the autistic spectrum may have some difficulty in answering any question themselves as they struggle to put the words together or to make eye contact with the assessor.

On this group of amendments, I would encourage my noble friend to be aware of the variation in how people can present. However confident they may appear, it will inevitably be a very stressful situation for them to be in a room, answering questions from someone they are unfamiliar with. However they present, there will be stress behind it. I just reiterate something that I asked my noble friend a little earlier. I ask him to make absolutely sure that the people doing these assessments have not just mugged up on what autism or any other disability is from some book, but really understand and have a working knowledge of the disciplines in which they are assessing people. I will leave it at that.

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[Lord Freud]

My Lords, one thing I was trying to get over about trying not to have a two-tier process so that the rich can get their evidence and the poor cannot, is that we turn the burden on to the assessors, so that when someone cannot come out, that requires a house visit if we cannot use paper evidence. There will be examples where paper evidence will do the job; where it cannot, the onus is on the assessor to do the checking, rather than the other way round. That is how we will provide that protection.

I hope I have gone through all the specific issues and given assurances on all those important matters. We are planning to meet the concerns expressed around the House. All I am asking for is that we have the flexibility to go on running the system as things change, as they inevitably do, and that we do not lock it up in primary legislation so that if we need to make changes it takes years. That is really what we are talking about.

[Baroness Meacher]

I apologise for interrupting the Minister. I just wanted to make a point about ME patients, who have the most awful time. I have direct personal experience of that—not myself but through people close to me. Does the Minister accept that Amendment 50ZR would enable someone bedridden with ME who has not seen a doctor for years to call their GP and have a proper assessment? They are bedridden; they cannot go to assessments. That would avoid getting into a benefit assessment straight off. That is the whole point of the amendment. There has been support around the House because of the many situations where tremendous distress can be avoided by an appropriate person—perhaps a nurse, perhaps a doctor—doing a full and careful assessment, rather than getting into the benefits system.