Welfare Reform Bill

Fiona O'Donnell Excerpts

Wednesday 9th March 2011 Commons Chamber

[Mr David Evennett (Bexleyheath and Crayford) (Con)]

I welcome the opportunity to contribute to this debate on a Bill that will radically reform our welfare system, and I congratulate my right hon. Friend the Secretary of State on proposing these much-needed and long overdue reforms to our benefits system. He is well known and respected for his work on social justice, and the Bill marks a genuine step forward. I also commend him on the thoughtful, moderate and constructive speech he gave this afternoon.

This measure is to be supported as it places individual responsibility at the heart of the benefits system. That approach will, in general, be welcomed across the country and certainly by the vast majority in my constituency.

The welfare system under the previous Labour Government became a welfare culture in which people claimed everything they could. People not only acted irresponsibly but were encouraged to do so; as a result, some people were better off claiming state handouts than their neighbours who were working. To have 5 million people living on out-of-work benefits and 2 million children growing up in households where no one works is a disgrace, and the Opposition ought to be ashamed of that record after 13 years in power.

There are many problems with the welfare system that the Government inherited. It is complex, bureaucratic and contains perverse incentives to keep claiming rather than work. We have heard the interventions—a 45% increase in housing benefit since 1999 is an incredible figure and such problems cost the taxpayer a fortune. The Labour party had 13 years to simplify the benefits system and to increase the incentive to work and it did nothing but make the problems worse. The Opposition amendment is merely a prescription for doing nothing.

Those who can work should work; that is the responsible thing to do and the best route out of poverty. Our aim should be to encourage people to take jobs, and I believe that most people want to work and to find a job. The Government’s role should be to help match people to the vacancies on offer, to ensure that they have the skills they need to take on jobs, and to provide individual support in the meantime to help people to get there. The Bill offers opportunities for change to enable people to do that.

It is right to place a 12-month limit on contributions-based employment and support allowance claims. That ensures that those who need support when they lose their job receive payment, and underlines the principle that they cannot claim for as long as they want. I hope that the introduction of a claimant contract will increase individual responsibility by ensuring that people turn up for their appointments and interviews. The inclusion of a personal pledge to take up reasonable offers of work, with financial penalties for those who do not keep their obligations, is also a necessary reform.

Placing a fixed limit on the maximum amount that any one household can claim in benefits, together with the new housing benefit cap, will mean that the financial barriers to employment will be removed, and that will be fairer for the taxpayer, who will no longer subsidise high rents for others. A regular complaint from my constituents is that, as workers and taxpayers, they pay for some people to have a better life than they do when they are in full-time work. I therefore welcome the introduction of the universal credit, which will mean that once the Government’s reforms have taken effect, people will be able to see for the first time that they are better off for each hour they spend working rather than being on benefits. The reforms will ensure that work pays.

Benefit fraud has also been a problem, costing the taxpayer about £1.5 billion every year. That is simply not acceptable. I hope that the measures in the Bill will send a clear signal that fraud and the abuse of the benefit system will not be tolerated.

Issues have been raised this afternoon that we will need to consider carefully, including the point about the disabled. I recognise—and I know that the Government recognise—the important role that cash benefits play in supporting the disabled in overcoming the daily problems that they face. Life is often more difficult and more expensive for those with a disability. I hope that the personal independence payment system that the Government plan to introduce will be fairer and simpler, allowing vulnerable people to lead active and independent lives. Changes must be made to ensure that those who do not need personal independence payments do not receive them. It is important that the assessment system is right and fair and takes into account genuine needs. Change over time should be noted to prevent abuse, as well as to help to ensure that those with growing and additional needs caused by disability get what they need and genuinely deserve. I am pleased that the payments will not be means-tested and will provide people with support when they are both in and out of work.

The disabled issue is emotive and I have received a considerable amount of correspondence from constituents about it. Some of the information that they have been given has unfortunately not been accurate, which is to be regretted.

[Fiona O'Donnell (East Lothian) (Lab)]

On the subject of inaccurate information, a duty press officer from the Department for Work and Pensions told the BBC last night that the Government were not going to reduce the qualifying period from three to six months. Can we have clarity on that issue?

[Mr Evennett]

I understand the hon. Lady’s point and we have had some clarity from the Secretary of State already this afternoon. It is important that we urge those on the Front Bench to take into account the needs of the disabled, and I believe that they will do that in the policies that they seek to implement.

I strongly commend the work done in the Bill and the further consultation that will be undertaken by Ministers to ensure that all the needs of the disabled are considered when we bring in the new annual assessment. I welcome the fact that there will be an annual assessment for those who are disabled so that their real needs can be reassessed if necessary to ensure that they get what they need and what they deserve.

I am running out of time and, as other hon. Members have said, it is very difficult to cover all the aspects of such a complex Bill in such a short time, but I want to commend the work being done in further education by my hon. Friend the Minister for Further Education, Skills and Lifelong Learning to ensure that people get the necessary training to take up the jobs on offer.

I believe that the Bill will deliver real progress from a coalition Government who are determined to reform a system that is unwieldy, unfair and unacceptable. The Bill should be commended and supported this evening.

Disability Allowance

Fiona O'Donnell Excerpts

Tuesday 30th November 2010 Westminster Hall

[Robert Halfon (Harlow) (Con)]

May I begin by apologising that I will have to leave soon to attend a Select Committee sitting? I congratulate the right hon. Member for Coatbridge, Chryston and Bellshill (Mr Clarke) on his thoughtful speech and on securing the debate. Although we might not agree on everything, I understand his intentions.

I want to start by acknowledging the need for welfare reform, which is one of the single most important things that the Government are doing. I know that many Opposition Members, such as the right hon. Member for Birkenhead (Mr Field), have wanted to reform welfare during the past 13 years. Like me, they will welcome the fact that the Government are committed to a universal credit.

Many of my constituents will welcome this chance to escape the poverty trap. However, on the specific issue of the mobility element of disability allowance, many constituents have contacted me with genuine family concerns. Only a small number are affected but, as has been noted, they are deeply anxious, and they do not have a political axe to grind. I have already spoken to the Minister about this and written to her about specific cases in my constituency. Ms Jacqueline Hobbs is concerned about the low residual income that will be left for people in care homes. Mr Kevin McGrath is worried that the cut will apply also to younger adults, who prize their independence and need mobility services to have a decent quality of life. Ms Jean Plumridge is anxious that disabled people must not become prisoners in their own homes, but must retain access to the outside world.

It is important to be clear about what the new Government are proposing. They inherited the largest deficit in our peacetime history, and we now spend £120 million a day on debt interest alone. In June, as part of the emergency Budget, the Government announced that they would save £11 billion a year from welfare spending by 2014-15.

[Fiona O'Donnell (East Lothian) (Lab)]

As the hon. Gentleman is so concerned about debt, will he tell us how people in residential homes who have taken out loans to buy electric wheelchairs to use outside will repay that debt? What do the Government have to say to them?

[Robert Halfon]

If the hon. Lady is patient, she will hear the answer later in my remarks.

To preserve spending on other front-line services, the Government then announced that they would have to go even further in tackling the extremely large welfare bill. One way in which they are doing that is by ending the mobility component of DLA from 2012-13 to claimants who have been in a residential care home for more than 28 days, which will affect about 58,000 claimants. The Treasury says that that will save £60 million in 2012 and that the figure will rise to £135 million by the end of the Parliament. I appreciate, however, that the Government have confirmed that affected residents will retain an underlying entitlement to the benefit, and that payments will start again if they leave the care home. I also understand that the measure will not be introduced until October 2012. Local authorities will have a legal obligation to provide mobility services for residents from their social care funding.

--- Later in debate ---

[Margaret Curran]

Thank you. As my hon. Friend the Member for North Antrim (Ian Paisley) has said, actually this measure has an impact on thousands of lives and it could radically alter thousands of lives. He put it well. However, although £135 million is a huge amount of money, it none the less represents a small percentage of the cuts being proposed by this Government.

As we have heard, there are concerns about the impact of the cut. We have heard dramatic examples of how real-life circumstances have been altered. I have observed in the past few months that the issue has energised many in the disability, voluntary and charitable sector who are deeply concerned. To quote Mencap:

“Without this vital lifeline, many disabled people in care will lose much of their independence, be unable to take part in many community activities they enjoy and have fewer opportunities to meet with friends and family.”

Fear of the cuts’ implications has become widespread and has now captured a wider audience for this debate.

I should make my party’s position clear, although it has been mentioned. Labour supports welfare reform; I quote the Government as saying that they are continuing our work of welfare reform. However, we cannot support these crude cuts. They are ill thought out and, as has been said, they go against the central principle of personalised support for disabled people by actively undermining their empowerment to choose how they live their lives.

[Fiona O'Donnell]

Does my hon. Friend agree that it is absolutely ridiculous to expect local authorities to fill the gap? Will buses run around care homes? Will people be stuck on buses for hours, waiting to be dropped off? How far in advance will they have to book their transport? The issue is about independence and choice, and the cuts will adversely affect some of the most vulnerable people in our society.

[Margaret Curran]

I will come to that central argument of the Government’s, as we must address it head-on, but I will do so later in my comments if that is okay. I am grateful to have this opportunity to correct on the record the view put forward by the Prime Minister about Labour’s position on the issue, because it is important to clarify it.

I repeat that Labour does not support the cut proposed by this Government; the Prime Minister implied that it did. Perhaps I am not as honourable as my right hon. Friend the Member for Coatbridge, Chryston and Bellshill, but I am obliged to say that it is not the first time that the Prime Minister has made a mistake after listening to a whisper from the Chancellor. I think that that explains what happened last week. It is deeply troubling that the Government are about to cut a vital lifeline affecting about 60,000 people living in residential care. They will be £2,500 worse off as a result, and the Prime Minister is not being exactly clear about the details of the proposal, which is of concern.

The issue of double funding lies at the heart of the Government’s case; we have been told that that is their argument. The logic seems to be that transport costs are currently funded by local authorities and therefore should not be funded again by Government. However, as many charities have rightly pointed out, local authorities’ assessments of care needs cover only what they consider core or essential needs. They do not always cover aspects of an individual’s life and social interactions, so social trips such as those to friends and family are unlikely to be included within the current service arrangements.

Furthermore, if that is funded already, why is there so little mention of it in existing community care plans? Surely we should be able to track and identify such funding. If it is funded already, why do so many people use their mobility payments to buy scooters, to take children out of residential homes at weekends and to use adapted taxis to go to the shops? Why do they pool payments to buy or lease an adapted car? Those services are important. The change represents a cut.

We are also told that the £2 billion that the Government are investing in social care could provide the resources to make up that loss. Some hon. Members have argued that the Government should be made to make up the loss. However, the claim of an extra £2 billion for social care has been rejected by the Conservative-led Local Government Association in England, which warns of a 4% increase in the need for social care in coming years and expects that even with the most optimistic efficiency savings, the shortfall will be at least £4 billion by the end of the comprehensive spending review. Even with the so-called extra £2 billion, there will still be a shortfall of £2 billion. As my hon. Friend the Member for East Lothian (Fiona O'Donnell) said, local authorities cannot reasonably be expected to make up that extra gap.

There is no guarantee that the money will be effective in meeting existing demands, let alone in filling future gaps. I know that some people have said that the Minister should direct local authorities to make up the gap, but that runs completely counter to the decision not to ring-fence. If services are not ring-fenced, the Government cannot direct what they should do.

The Government’s approach, I argue with great sincerity, does not address the fundamental issues. How will it address the individual difficulties cited in this debate? It will fall on local authorities to find the resources to replace what the mobility component pays for, but the argument is that local authorities already fund the mobility component. Does the Minister think that it is realistic or likely that local authorities, which are set to lose one third of their funding, will step in to provide those essential services? I repeat the question I asked her last week at the Dispatch Box: do the Government believe, and can they guarantee, that there will be no losers as a result of the policy?

This has been an important and good debate. I call on the Government to listen to the strength of feeling involved and the range of issues selected. I note a degree of sympathy on the coalition Benches with the argument made by my right hon. Friend the Member for Coatbridge, Chryston and Bellshill. This is an opportunity for the Government to think again.

In my kinder moments, I honestly think the Government have made a mistake and that the plan was dreamt up by some young spark in the Treasury who had a quick look at the tables and thought, “There’s a quick saving. It looks as if it’s already double-funded.” However, they were not in the secret garden and did not think through the consequences. At worst, it is a callous cut for which the Government will be held to account for many years if they proceed without thinking it through. I leave it to the Minister to tell us which is true.

As it stands, it is a crude, cruel cut that undermines moves towards personalisation, the Minister’s own efforts at welfare reform, quality of life and opportunity. For such a small saving, it will have an enormous impact on the quality of life of the people in greatest need. It cannot be accepted. This is the anniversary of the passage of legislation empowering disabled people, and Friday is the international day of disabled people throughout the world. I call on the Government to take this opportunity to show solidarity with disabled people and announce that they will not proceed with the cuts.

--- Later in debate ---

[Maria Miller]

Hon. Members must forgive me, but I want to address more of the issues that have been raised directly, and there have been many contributions throughout the debate.

The arrangements are further confused by different funding streams, as Members have pointed out. For example, NHS-funded individuals in residential care do not receive the DLA mobility component, while those funded by local authorities do. If we want to be fair—not only to disabled people, but to taxpayers—we have to tackle the gaps and overlaps and ensure that everyone gets access to the mobility they need, without the taxpayer having to pay again for needs that have already been met. In the current fiscal climate, that is exactly what Members would expect the Government to do.

[Fiona O'Donnell]

Will the Minister give way?

[Maria Miller]

The hon. Lady must forgive me, but I have taken a number of interventions already.

We simply cannot continue to accept that lack of clarity. We currently have mismatched systems for assessing the needs of disabled people: one for DLA, which assesses mobility and need in terms of cash; and another that provides, via local authorities, a more generic needs assessment reflected in services contracted with care homes. Those mismatched systems produce huge potential for duplication, uneven expectations and varying provision. We have to change that and target the right funding on the right people.

I will answer some of the direct issues that Members have raised. There has been a broad question on what consultation there has been with the Scottish Government and Scottish local authorities. I would like to reassure Members that the forthcoming DLA reform consultation document and the legislative process will allow disabled people and other affected groups ample opportunity to provide their views on the measure. My hon. Friend the Member for Worthing West (Peter Bottomley), who has had to leave the debate to attend a meeting, made several important points. I would be happy to meet representatives from Leonard Cheshire homes to discuss the matter further.

My hon. Friend the Member for Harlow (Robert Halfon) made an important contribution to the debate and asked a number of specific questions. He, too, has had to leave, to attend a Select Committee meeting. I can clarify that the measure was designed to remove overlaps in the payment of mobility support, as I have outlined. It is not intended to lead to a loss of independence and we remain committed to promoting greater personalisation for disabled people. I reiterate that milestones have been agreed with the Association of Directors of Adult Social Services, including the growth in personal budgets, and that we are absolutely committed to the implementation of personalisation across the board.

The hon. Member for Glasgow North East (Mr Bain) talked about the ability of people living in residential care homes to get into work. I would like to be clear that the ability of individuals in care homes to take advantage of access to work, which can cover their travel costs, makes an enormous difference to them. The hon. Member for Stretford and Urmston talked about DLA being paid for social and medical needs. To be absolutely clear on that point, we will shortly be consulting on the wider reform of DLA and are absolutely committed to a social model for it, not a medical model. She mentioned article 20 of the UN convention on the rights of persons with disabilities, which sets out the right to personal mobility and promotes the greatest possible independence. The Government’s measure is designed not to reduce the mobility of disabled people, but to address the current complexities in the system.

Oral Answers to Questions

Fiona O'Donnell Excerpts

Monday 22nd November 2010 Commons Chamber

[Chris Grayling]

One of the benefits of working with smaller organisations as well as the larger prime contractors is that we can get the input of specialist organisations with expert knowledge of the rural community and the rural jobs market. I believe that the contracting structure we have set up maximises the likelihood of prime contractors identifying the right organisations to deliver support in rural areas.

[Fiona O'Donnell (East Lothian) (Lab)]

My constituent, Mr Edwards, is in receipt of the independent living fund, which empowers him to buy services to meet his needs. Uncertainty over the future of the fund is causing him and his family great concern. When will the Government end that uncertainty?

[Maria Miller]

As the hon. Lady knows, the uncertainty is a result of the previous Administration not having correctly financed the independent living fund. That led to the trustees of the fund having to close it to new applicants. We have already undertaken an informal consultation about the future of the fund, and will shortly come forward with a formal consultation. My overwhelming requirement will be to make sure that existing recipients continue to be well supported.

Housing Benefit

Fiona O'Donnell Excerpts

Tuesday 9th November 2010 Commons Chamber

[Glenda Jackson (Hampstead and Kilburn) (Lab)]

I was interested by what the hon. Member for High Peak (Andrew Bingham) said. I think that it had something to do with hard-working families and the impact of the present housing benefit system on people who wish to work hard. I was reminded of the first Thatcherite regime, when the hon. Gentleman’s party deemed a living wage to be 75p an hour. I also remember that during our term in government, his party voted against every single move to take people out of poverty, including the national minimum wage.

The most interesting thing to emerge from today’s debate is the fact that Government Members have swallowed hook, line and sinker the myths that were originally used in the proselytising of their Prime Minister, who stood on the Floor of the House and castigated housing benefit for paying people £1,000 and £2,000 a week. He attempted to present that as the median for people claiming the benefit, and I was so intrigued that I tabled a question on the issue. There are, in fact, no claimants receiving £2,000 a week, and there are precisely 90 families, in London exclusively, whose housing benefit pays them rent of £1,000 a week, because those are extremely large families.

The myth with which the Government have been successful in their proselytising is that most people on housing benefit live in four-bedroom properties. Nothing could be further from the truth. Most people on housing benefit live in shared accommodation or in one or two-bedroom properties. In my constituency, the amounts that those claimants will lose range from £21 a week for those in shared rooms to £246 a week for those who are fortunate enough to live in four-bedroom properties.

[Fiona O'Donnell (East Lothian) (Lab)]

The 10 families in my constituency who live in five-bedroom properties do so not because they have dressing rooms or extra en suites, but because of the nature of families nowadays. A mother and a father may bring in children from previous relationships. Government Members do not seem to be able to grasp that.

[Glenda Jackson]

That is a salient point, which can be replicated in my constituency. I know of a family with two children who are severely disabled and in wheelchairs, and two who are not so severely disabled. There are also a mother, a father and a grandmother, and they are all attempting to live in a four-bedroom property.

The other myth that has been propounded by Government Members today is that these changes are essentially fair. I distinctly remember the Prime Minister and the Deputy Prime Minister—who has proved himself to be the Maréchal Pétain of his generation—saying that the changes were not only fair, but made at a time when the Government were having to make extremely difficult choices to protect the most vulnerable members of our society. Throughout the afternoon, it has been clear that Government Members do not regard pensioners as vulnerable. Nor, apparently, do they regard them as being taxpayers. They do not regard people with disabilities as being vulnerable, and they do not regard people on low pay as actually working.

What I say about my constituency and my city of London is not scaremongering. We have been here before. As I said, some of us remember the Thatcherite regime, when people were forced out of their homes and some were sleeping on the streets because they could not afford to find anywhere to live. The bills for bed-and-breakfast accommodation were astronomical. I am sure that Government Members are smiling at that memory, because that, essentially, is what they wish to do.

--- Later in debate ---

[Bob Blackman]

I thank the hon. Gentleman for his intervention, which leads on to the other key issue in this debate: the supply of housing in this country. That point is not really being answered by the Opposition. The Labour party had every opportunity to build houses over the past 13 years, but it failed to do so. At the same time, it failed to take account of the fact that this country’s population is increasing, so the need for housing increases all the time. We have a market for housing and housing benefit distorts it directly, which is why it is a bad benefit in desperate need of reform. One of the reforms that must take place is a change to the way in which housing benefit is withdrawn from people as they get work. At the moment that is a direct disincentive for people at a certain level to work, because they lose benefit pound for pound. Why should someone work if that is the position?

[Fiona O'Donnell]

Does the hon. Gentleman not realise that what this means for housing associations, on which we are going to rely to build homes, is that their cash flow will be interrupted, they will have debts and there will be an adverse impact on their ability to borrow to build those homes?

[Bob Blackman]

I thank the hon. Lady for her intervention. The housing associations throughout this country seek changes of tenure, changes of regime and an encouragement to develop the housing that this country desperately needs in every local authority area. I trust that that is what will happen. The coalition Government have set out their stall: we will build 150,000 new homes during the life of this Government. We agree that that is not enough, and we would like to see more. What we want to see is young people getting a foot on the housing ladder, moving out of rented accommodation and purchasing their own property. What has to change is that the applicable lending regimes of the banks, building societies and suchlike must enable people to get on the property ladder.