Welfare Reform Bill

Bridget Phillipson Excerpts

Wednesday 15th June 2011 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

May I draw the Minister’s attention to one group of people who might fall into that category? Victims of domestic violence might not be on the electoral register because they are forced out of one area and into another and they therefore do not have the democratic accountability that comes through the ballot box.

[Maria Miller]

The hon. Lady is obviously a mind reader, because I was just about to talk about whether the changes we are discussing will be a problem for victims of domestic violence—a group whom we all want to ensure get that support and are able to move to a place of safety, as is absolutely right. We do not believe that the new localised service will be a barrier to people in genuine need, particularly victims of domestic violence. It will provide an opportunity for more joined-up services on the ground while continuing to give individuals in that situation access to national payments on account through advances or alignment payments. The hon. Lady will be aware that under the current scheme victims of domestic violence must have fled the family home to qualify for support to set up home from the discretionary social fund.

A third and very important reason why keeping the status quo is not a sensible option is the need to align support with the wider changes that are happening in the welfare system. To continue running the current administratively burdensome system is no longer financially sustainable. Community care grants and crisis loans for general living expenses will be replaced by locally based support, which will be the responsibility of local authorities in England and the devolved Administrations in Scotland and Wales. That will deliver on the coalition’s commitment to implement the Calman commission’s recommendations and will tie in with the wider Government agenda on localism, as has been mentioned. Local authorities are better placed to understand the issues that people in their area face and to dovetail existing and needed services. Different areas face different issues and local authorities will be free to come up with the sort of innovative ideas that will address these issues and make sure that the money that is available is targeted at the right purposes so that we move away from a situation that allows the sort of abuse I have mentioned.

--- Later in debate ---

[Jim Shannon]

I thank the hon. Gentleman for his comments. Many Members in all parts of the House know how the system works and the importance of a crisis loan system operating through the social fund.

My final point relates to the appeals system. The proposed changes will do away with the independent appeals system or at least make it unnecessary. I fought a number of appeals for people who had applied for crisis loans through the social fund. Having the appeals system in place is critical. If they are turned down the first time, it may be because they provided the wrong information, or because all the necessary information was not available. An appeals system allows a review to take place. It is crucial that the independent appeals system is retained.

The system of crisis loans through the social fund is a crucial aspect of life in Britain today for the people who come to my office and for those I meet. It gives people hope and an opportunity to get out of sometimes dire financial circumstances. The Government, the House and we as elected representatives have a duty to make sure that the social fund and the crisis loan are retained.

[Bridget Phillipson]

I am grateful for the opportunity to speak to this important group of amendments concerning the discretionary social fund, particularly amendment 39, which calls on the Government to bring forward detailed proposals for the replacement scheme.

Discretionary social fund payments, such as crisis loans and community care grants, provide an essential safety net for some of the most vulnerable people in our communities who, at times of extreme hardship or disadvantage, need financial support. One such group I wish to talk about in detail are women fleeing domestic violence who, through no fault of their own, are forced out of their own homes and have to seek shelter elsewhere. It is because of my experience working with women affected by domestic violence and their families that I am so concerned about the Government’s proposals and what they could mean for those women.

A woman fleeing domestic violence often must leave her home with nothing more that the clothes she is standing in, without money or access to money, but she still needs access to vital items for herself and her children, from food and nappies to children’s clothing. The social fund provides a vital lifeline for those women. Although far from perfect—I admit its shortcomings—it gives reassurance to the woman that help is available should she need it so that she does not feel pressured to return home to violence simple because she has no access to money. Community care grants allow women to start afresh, with a new life and a new home, by covering some of the costs attached, such as a washing machine or a cooker.

--- Later in debate ---

[Ian Paisley]

The point that the hon. Lady is making is critical. A local authority might lay down a policy on this matter that is very good, but if another authority then does something slightly different that appears to be better, automatically all the good work that the first local authority has done will be seen as of no use as it will be held to another standard. We must have a single national standard so that people who require this fund, whether in Bushmills or Birmingham, know that they will see the same standard, with the same requirements, the same grant and the same opportunity to avail themselves of that assistance.

[Bridget Phillipson]

I agree entirely. It is vital that people feel that appropriate safeguards are in place with a national scheme and a national appeals system so that when things go wrong, as they sometimes do, there is an appropriate means of redress and decisions can be looked at again.

My concern with the Government’s proposals is that we will end up with massive variation between councils and between different parts of the United Kingdom, which will disadvantage people in certain areas. Some councils might choose a system that works very effectively and addresses the needs of vulnerable groups, but others might not do that so well. That is why the Government must be very clear about the standards that they will demand of local authorities, but they are not being clear.

Women fleeing domestic violence are often forced out of their local area in order to seek safety, so what safeguards can we expect when a woman is forced to move to an area where the local council might decide that she is ineligible for support? In the urban areas of the north-east, where large local authorities cover small geographical areas, it is not a great distance from Gateshead to Sunderland, but might the local authority in Sunderland, for example, take the view that the woman should seek support from her local authority in Gateshead? I sincerely hope that it would not take such a view, as that could hold up the process when the woman desperately needs financial help. This is not a factor at present because the scheme is a national one, but devolving responsibility to local councils will create a raft of potential problems for those councils and risk placing some very vulnerable people at risk of harm.

It is simply not good enough for the Government to hope that local councils will be able to manage this complex change. With a budget that is not ring-fenced and the potential for a reduced level of funding from recovered grants, it is inevitable that some local councils will not want to take people without a clear and established local connection, which I believe will be particularly damaging for women fleeing domestic violence if this is not done properly. That is why it is imperative that the Government set out detailed proposals, as amendment 39 makes clear, including eligibility criteria and an independent appeals mechanism. Without further clarity and detail, there is a real likelihood that some of the most vulnerable people in our communities will be unable to access financial support when they need it most.

[John McDonnell]

I will not delay the House any further because I think that colleagues from all Opposition parties have demonstrated why they are not convinced by the Government’s proposals, and why every charity and housing group in the country is not convinced either. Members’ surgeries will fill up as people can no longer receive grants and loans, so it is inevitable that we will return to the issue at a later date to reform the Government’s reforms. I will not push for two Divisions on this group and, on the basis of supporting amendment 39, beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 39, page 52, line 22, leave out subsection (1) and insert—

‘(1) Section 138(1)(b) of the Social Security Contributions and Benefits Act 1992 (discretionary payments out of Social Fund) may be repealed, if the Secretary of State—

(a) publishes a detailed proposal for a replacement scheme, or schemes, based on wide consultation with relevant stakeholders;

(b) ensures that such a scheme, or schemes, will provide financial protection for applicants in an emergency or crisis, with the eligibility criteria for applicants specified in regulations;

(c) demonstrates the feasibility of such a scheme, or schemes, through a pilot or pathfinder process; and

(d) demonstrates how an independent appeals mechanism will be implemented.’.—(Ms Buck.)

Question put, That the amendment be made.