Social Security (Additional Payments) (No. 2) Bill

Earl of Dundee Excerpts

2nd reading & Committee negatived
Monday 20th March 2023 Lords Chamber

[The Earl of Dundee (Con)]

My Lords, I also welcome this measure. Very briefly, I will touch on three points: current plans for tackling anomalies arising from the Bill; the task of achieving better longer-term solutions; and finally, in that connection, taking proper note of what works best in other countries.

The Bill’s eligibility criteria are commendably simple. As my noble friend the Minister has observed, these can enable payments to tens of millions of people in a timely way, thus also reducing adverse effects from otherwise more complicated legislation such as unnecessary levels of delay, error and fraud.

Yet, as the noble Baroness, Lady Lister, indicated, there are still inconsistencies—not least that emanating from what in this case are flat payments. For here, the proposed disbursements would be the same regardless of household size, even though larger households have higher spending needs, particularly those with children. The latter stricture also reflects another mismatch between this Bill and universal credits, which are higher for couples than for single people, and children are also recognised in that system. Then there is the so-called cliff-edge problem, caused by the cost of living payment being linked to receipts of means-tested benefits, meaning that a person who earns just £1 above the limit could lose out on £900.

First, among the recommendations of the Treasury Committee is to provide a greater number of lump-sum payments than the two in 2022-23. This would help ensure that more households have support when they need it most, while reducing disincentives to work within each relevant assessment period. The second recommendation is to deploy the payment model used in the energy bill support scheme; that is a payment each month for six months, thus enabling regular help over the colder winter period. Thirdly, in advance of future adjusted methods of support, it recommends that the Government assess the work disincentive effects of different sizes and frequencies of lump-sum payments. The fourth recommendation is to judge whether a taper might better incentivise work as part of any subsequent payments from 2024-25. Does my noble friend assent that these four prescriptions for improved and adapted delivery should now be followed?

Also, further to assist better longer-term solutions, does my noble friend concur that constant and proper study must be made by this country of what works best in other countries? The United Kingdom plays an active part within the intergovernmental European Committee for Social Cohesion of the Council of Europe. That committee facilitates dialogue and the exchange of best practice. It is particularly relevant to this debate, since through Covid and the Ukrainian war all other 45 states within the human rights affiliation of the Council of Europe share with the United Kingdom the same challenge and priority within their set-back economies: the protection of vulnerable people and families.

I am grateful to my noble friend for affirming within the Explanatory Notes of this Bill that, under Section 19(1)(a) of the Human Rights Act 1998, in his view the provisions of the Social Security (Additional Payments) (No. 2) Bill are compatible with the European Convention on Human Rights of the Council of Europe.

In this connection, it should be recalled that over 60 years ago the United Kingdom ratified the European Social Charter of the Council of Europe. Your Lordships will be aware that, since then, the UK has accepted all provisions in the fields of health, social security and social protection. The only exceptions are Articles 12.2, 12.3 and 12.4 on the right to social security and Article 4 of the additional protocol on the right of elderly persons to social protection. The adoption of the Social Security (Additional Payments) (No. 2) Bill now provides us with a good opportunity also to accept Article 12 of the European Social Charter and Article 4 of its additional protocol. I hope that my noble friend may be able to agree to that.