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

Baroness Primarolo Excerpts

Thursday 11th February 2021 Lords Chamber

[Baroness Primarolo (Lab) [V]]

My Lords, I support the regret Motion that my noble friend Lady Sherlock has tabled. I congratulate her on a brilliant introduction to what is a very complex area.

The brutal consequences of the pandemic, added to the trend of increasing levels of poverty under benefit cuts and the growth of inequality, have left families trapped, with no prospect of improving their situation. Millions of people on legacy and related benefits did not receive the £20 uplift applied to universal credit and working tax credits. As many speakers have said in this debate, this is particularly important, as most people on legacy and related benefits are disabled, carers or have a long-term illness. The majority of these fall within the poorest 10% of the population and are the very people who are likely to have been unable to work for an extended period and are less likely to have any savings to fall back on. As the Disability Benefits Consortium has said, they still face higher costs as a result of the pandemic, due to increased food, fuel and phone costs and needing extra support from paid carers.

Into this situation, the Government now intend that people on legacy and related benefits should move to universal credit. Therein lies a very big problem, so eloquently explained by my noble friend Lady Sherlock. I am grateful, as other speakers were, to the briefing from Marie Curie, which makes a compelling case, outlining the difficulties for people living with terminal illness who are living alone and do not have a carer in receipt of carer’s allowance to look after them. They will face terrible consequences from the change that is being proposed. As has been said, under universal credit the severe disability premium and the employment support allowance are both being scrapped. That leaves many of those who would otherwise have been entitled to severe disability premium much worse off.

Although the Government try to make compensation arrangements, Marie Curie provides the example of a gentleman who is 55, who has applied for ESA and has a life-threatening illness. As a result of these changes, if he were moved to universal credit he would be more than £44 a week worse off, on an income that is already very small indeed. It cannot possibly be the Government’s intention to severely undermine the financial position of those in receipt of these benefits, particularly at a time of pandemic. As has already been made clear, claimants in receipt of transitional payments will not receive the annual uplift in universal credit; their support will therefore fall, in real terms, year on year. As the Explanatory Memorandum on transitional protection puts very clearly, the Government’s policy is to gradually eradicate the additional income received by former severe disability premium recipients—in other words, to cut their benefits.

The noble Baroness, Lady Ritchie, asked two very important questions to add to the questions asked by my noble friend Lady Sherlock. The Minister must tell us how, in discussion with other departments, the Government will ensure that those affected by this change will still get the care and support they need and will not be left socially isolated as a result of these changes. She also needs to tell your Lordships’ House when the Government will bring forward the special rules for people living with terminal illnesses. Better still, she should tell the House today that these poorly timed changes, which will only increase anxiety and uncertainty for disabled people, will be withdrawn and that the Government will think again.