Independent Living Fund

Ian C. Lucas Excerpts

Tuesday 9th January 2018 Westminster Hall

[Ian C. Lucas (Wrexham) (Lab)]

I beg to move,

That this House has considered changes to the Independent Living Fund.

It is a real pleasure to have you chair the debate this afternoon, Mrs Main, on the extremely important subject of the independent living fund. The subject is perhaps not discussed as much as it ought to be. It is a very complex area, relating to a fund where there have been profound changes in recent years, affecting some of the most vulnerable members of our community. Fundamental changes have occurred that we need to assess, as one of the things that this House does least well is to revisit changes that have taken place to see whether they are having a positive or negative impact on those affected.

I am grateful to the House of Commons Library for its excellent debate pack and for helping to clarify some of the complex issues in this policy area. At the outset, I would also like to say thank you to my constituent, Nathan Davies, an independent living fund recipient whose circumstances I will talk about during the context of the debate. I have great admiration for him. He is very concerned about the current state of the independent living fund in Wales and its future development.

It is important at the beginning to set the scene and to set out the background to the recent changes to the independent living fund. The fund was first set up in 1988 with the express and very worthy purpose of helping disabled people to continue to live out in the community and to contribute to society generally.

[Jessica Morden (Newport East) (Lab)]

My hon. Friend is quite right to talk about the importance of the independent living fund to his constituent. My constituent Richard, who is also a recipient, told me, “Words cannot really do justice to what the ILF means to me. It is like oxygen. It allows me to get out and about and not to be isolated—to live the best life I can.” Does my hon. Friend agree that gets to the crux—

[Jessica Morden]

Does my hon. Friend agree that that gets to the crux of just how important this debate is?

[Ian C. Lucas]

My hon. Friend and her constituent eloquently set out the importance of the fund. It gives freedom to individuals in receipt of funds to carry out what they want to do in their lives and to contribute broadly to their community.

The fund stayed open to new applicants until 2010 and was then closed. It operated across the UK until June 2015, when it was formally closed. Funding was devolved to English local councils and to the Scottish, Northern Ireland and Welsh Governments. The devolved Governments have pursued different policies on the fund. The Scottish Government set up Independent Living Fund Scotland, and my understanding is that the Northern Irish Government’s funds are also administered through that Scottish body.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Would the hon. Gentleman agree with me, and many disability rights groups, that when the decision was made in 2010 to close the fund to new applicants and restrict it to people working 16 hours or more, that signalled the signing of its death-warrant?

[Ian C. Lucas]

What it did was create a situation that was not sustainable in the long term. Clearly, individuals who ought to have been entitled to support from the fund were not able to access it simply because of when they were applying. So we needed to put in place a different set of circumstances after 2010.

This is a difficult issue, particularly in cash-straitened times. For that reason, the can was kicked down the road from 2010 through to 2015. The decision made in 2015 was, in my view, a hospital pass from the UK Government to other institutions, whether they were devolved Governments or local councils. Budgets were transferred, but they were closed budgets, which had been restricted since 2010. A group of people who became entitled after 2010 were not gaining access to funds. That was not sustainable and had to be addressed by those bodies now responsible—the devolved Governments and the local authorities. Those difficult issues were not dealt with by the UK Government. They were passed on to local councils and to devolved Governments at a time of difficult, straitened and reducing budgets. The very difficult decisions being made on the funding were having to be made by local councils, Members of the Scottish Parliament, Assembly Members, Welsh Government Ministers and Members in the devolved Assembly in Northern Ireland. It is a very difficult issue and we need to be frank in saying that the complexity does not lend itself to easy solutions.

My constituency is in Wales, where the devolved ILF funding was used to set up the Welsh independent living grant. The Welsh Government have said that in 2018 they intend to devolve funding to Welsh local authorities to administer the fund. In that context, it is helpful to consider the experience in England, where funding was devolved to local authorities back in 2015, and very helpful in that regard is the recent qualitative analysis of the closure of the independent living fund in England and the post-closure review carried out by the Government. I make it clear that that is very helpful, but it does not go far enough, and that is an important point on behalf of all recipients of the independent living fund. In order to understand the real impact of the closure of the fund and the devolution of funding, we need to know the quantitative aspects of the results of the Government’s actions. We need to know how much individuals who were previously receiving funding from the independent living fund are now receiving.

In one sense, that is self-evident. Individuals who were in receipt of funding before 2015 used that money to do the things that they wanted to do with their lives, for example, for care support, or to work or to get to work—all those things that those of us who do not have disabilities take for granted. The great value of the fund was that it helped people who had disabilities to do the things that those of us who do not have disabilities can do every day. When some of that money was taken away from them, that caused real anguish; the prospect of dealing with whether that money is going to be taken away also causes a great deal of worry.

In Wales, that is what happening at the moment. It is proposed that later this year, the funding will be devolved to local government bodies within Wales without ring-fencing. There is a great element of uncertainty in the minds of individuals currently in receipt of the independent living fund grant about whether they will have sufficient money to continue to do what they want to do.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Given in particular the competing priorities of local authorities, does the hon. Gentleman agree that there is potential for the lack of ring-fencing to result in a very negative impact on those most vulnerable in our society?

[Ian C. Lucas]

That is absolutely the case. I will be pointing out that that is exactly what has happened in some cases.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate my hon. Friend on securing this debate, which is very timely in considering some of the hardships involved. The problem with devolving such funds to local authorities is, as the hon. Member for East Londonderry (Mr Campbell) mentioned, the background of a lack of resources. Local authorities are placed in the situation of having to prioritise things, and that could inflict further hardship on people who rely on the fund. I have heard about many such cases.

[Ian C. Lucas]

Absolutely. It is about those difficult decisions that local authorities have to make to balance their budgets. If they are given a budget, the temptation is to do the best they can with their money but to trim, which can have a real and adverse impact on the individuals concerned.

My own efforts to get to the bottom of the financial position of disabled people who previously received money from the independent living fund have, I am afraid, met with little success to date. I tabled some parliamentary questions and the Department for Work and Pensions blandly said in response that there was no central record of the amounts received by individuals following the closure of the fund in England. If one was cynical, one could say that that was convenient but anyway, frankly, it is just not good enough.

My concern, to pick up on the point made by my hon. Friend the Member for Coventry South (Mr Cunningham), is that we are in an era of declining local government budgets and are dealing with some of the most vulnerable people in our society, who were previously in receipt of funding from the independent living fund that enabled them to live their lives in the community. In many cases, however, they now receive less money than they did previously.

[Susan Elan Jones (Clwyd South) (Lab)]

Does my hon. Friend and parliamentary neighbour agree that two debates are happening? One is about devolution, localism and the like—a lot of which is very creative—and the other about everything happening in the background with an agenda for cuts. That is where the problem lies and that is how people with grave disabilities could be greatly affected.

[Ian C. Lucas]

That is absolutely the case, and I want to talk about one of the people affected: the constituent I mentioned earlier, Nathan Davies.

Nathan is a proud resident of Wrexham and 40 years old. Aged 15, he was diagnosed with a degenerative condition, Friedreich’s ataxia, which I had never heard of until Nathan told me about it. In broad terms, it is a rare, progressive genetic condition and, in most cases, a person with the disease will be confined to a wheelchair, as Nathan is, within 10 to 20 years of diagnosis. It causes people to tire easily.

Despite his diagnosis, Nathan worked as a journalist for many years until his medical condition meant that he could no longer continue to do so, although that did not mean he stopped being active. Since 2010 he has received funding from the independent living fund, enabling him to live independently with the help of his family and carers. He continues to write and has published an authoritative study of football grounds in Wales—available from all good book stores—and he now campaigns on disability issues. He is not a man to be trifled with, he campaigns hard in elections and he is known as an important local character in the Wrexham area. He is also a big supporter of Wrexham association football club, which will of course return to its rightful place in the Football League next year—promotion permitting.

Last year Nathan’s contribution was recognised by his local Wrexham Glyndŵr University with the award of a richly deserved honorary degree. Today, pretty typically, Nathan is on the front page of The Leader local newspaper in Wrexham, campaigning against a council proposal to charge disabled people for car parking. His resilience and determination are admirable qualities, in particular in the face of the condition he suffers from. We should be helping, not hindering, people like Nathan.

Nathan has pointed out to me that in the past he received specialist advice from the independent living fund, the staff of which he found very helpful in discussion and for assessments. That is something I have heard from other recipients when I have attended recent consultation events on the ILF. As a result of support from the fund, Nathan has been able not only to live in the community but, as the independent living fund intended, to contribute in a really positive way to the community in which he lives, notwithstanding his disability and the challenges that he faces.

The difficulty is that doubt about the future of the fund in Wales is now causing Nathan great worry. Devolution of funding to local councils when their budgets are under great pressure means that there is no guarantee that the levels of funding will be maintained, even if an individual recipient’s condition deteriorates—for example, I mentioned Wrexham County Borough Council’s proposal to introduce car parking charges, which will be an additional expense for someone such as Nathan. The limited research available from England indicates that, as a result of the changes following 2015, more recipients have seen their income fall than increase and 22% of recipients have said that their income has “decreased a lot”; 19% of recipients have said that their day-to-day support has got “a lot worse”; and, in addition, local councils have informed 34% of the recipients of extra restrictions on how they may use their money for support.

In October 2016 the UN Committee on the Rights of Persons with Disabilities reported on the fund:

“The Committee finds that former Fund claimants have seen the support they received from local authorities substantially reduced, to the extent that their essential needs in areas such as daily personal care are not sufficiently covered.”

My own experience is that local authorities are under great financial pressure, and their staff are subject to increasing stress as they make the budgeting decisions.

The UK-wide consistency that characterised the independent living fund funding is no more. Different national systems, as well as devolved budgets within some of those systems, mean that there is likely to be an increasing disparity in provision for individuals in different parts of the country. I struggle to understand the rationale for that approach. It seems to diminish the support given by the previous administration of the independent living fund and to create great uncertainty in the minds of recipients of the fund.

In our constituency surgeries, we all see the great complexity of payments made to disabled people—direct payments, the independent living fund and personal independence payments—and it is difficult for professional advisers to find their way around the system, let alone individual claimants. My key plea to the Minister, who I am very pleased to hear was confirmed in her post earlier this afternoon—that is hot news for everyone—is that, at the very least, the Government should be collecting the detail of the impact of the ILF changes on previous recipients.

We should know and be obtaining from local authorities details of the financial impact of the closure of the fund on individuals. The suspicion is that the transfer of the funds to local authorities is a way of shifting difficult decisions on assessments to councils with diminishing funds, and that the failure to ring-fence budgets will reduce payments. This is the worry in the minds of disabled recipients. If the Government want to assuage those worries, they need to produce real evidence that that is not happening.

In Wales, there is real concern about the Welsh Government’s intention to devolve ILF budgets to local councils. Nathan Davies has arranged an exhibition, characteristically, at Theatr Clwyd in Mold, to highlight his concerns and to put his campaign out there. I will raise those concerns directly with the Welsh Government and I will rely on the evidence from the all too limited research in England to show the adverse impact of the changes in ILF on the income of previous recipients. The lives and experiences of some of those vulnerable individuals have been adversely affected by the changes in recent years. In order to address those concerns, we need more information from all the local authorities in England, to find out the real impact on the individuals concerned, and to take action to improve the situation for those people.

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[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I thank the hon. Member for Wrexham (Ian C. Lucas) for bringing forward this debate and for his considered and thoughtful approach.

A number of Members expressed concerns about changes to the independent living fund. The hon. Gentleman set out clearly and poignantly the case of his constituent, Nathan Davies, and reminded us why the fund is so important. The fund is worthy of our attention because it is vital to people who live with disabilities. It is specifically designed to help people with a disability to live independently in our communities, and provides additional financial assistance to those already in receipt of support from social services to enable them to access essential support. We should all be able to support that without equivocation. Threats to the fund, or threats to reduce it, make it harder for people with disabilities to live independent lives. Who on earth would support that?

By the DWP’s own admission, the UK Government’s closure and transfer of the scheme to local authorities in 2015 caused many recipients severe hardship. We have heard repeated examples of that happening in constituencies throughout the United Kingdom. I say to the Minister with utter sincerity that that feeds into the perception held by a number of people that this Government are cruel and callous when it comes to supporting the sick and the disabled. I know that the Minister will reject that analysis—I would expect her to—but that perception exists, and that is a problem for the UK Government. I hope she is mindful of that and does her best to address it. The closure of the independent living fund does not help to counter that perception but feeds it. I am sure the Minister wants to seek to address that, and I know that she will take the point on board carefully.

Many Members mentioned the UK Government’s short-sighted and hugely concerning decision not to ring-fence the fund when devolving it to local authorities. Lord Freud, who was then Under-Secretary of State at the DWP, told the House of Lords in 2014 that

“local authorities need to be allowed to meet their statutory responsibilities in a flexible and responsive way and the ring-fencing of funding prevents this.”

I am sure that the intentions were honourable, but we have heard repeatedly that there can be no doubt that that created, by accident or design—it does not really matter to people suffering from the policy—a postcode lottery. We heard that from the hon. Members for East Londonderry (Mr Campbell), for Strangford (Jim Shannon) and for Wrexham. That is because local authorities now determine their own eligibility criteria, and they often do not provide the same funding as the independent living fund did. Considering that the fund is about vital support, that cannot be acceptable, and that decision needs in all good conscience to be revisited. I urge the Minister to do so, and I hope that she is minded to.

[Ian C. Lucas]

I very much take the hon. Lady’s point. Is that not made worse by the fact that budgets are broadly decreasing at the same time? Local government bodies have the unenviable task of somehow maintaining funding to individuals at a time when their income is falling.

[Patricia Gibson]

I very much agree. Local authorities across the United Kingdom face difficult choices, but many people, particularly in England, believe that they face unprecedented funding crises. In Scotland, we have tried hard to protect local funding as far as possible—it is not always possible—under budgetary constraints, but Welsh and particularly English local authorities have faced deep, biting cuts. Thankfully, we are working hard to avoid the worst excesses of those cuts in Scotland, but devolving something and not ring-fencing it when there are so many budgetary pressures creates a difficulty with regard to what is prioritised and what it is possible to do.

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[Ian C. Lucas]

Can the hon. Lady tell me whether the Scottish fund is open to new applicants?

[Patricia Gibson]

I can: it opened at the end of 2017, and I will make a few remarks about it. In 2015, the Scottish National party Government created the public body, the Independent Living Fund Scotland, on the back of the UK Government closing the UK scheme. There was £47.2 million of the former independent living fund to be administered to support 2,600 people in Scotland, with 99% of recipients stating that the fund helped them to live their lives more independently. In addition, the Scottish Government injected an additional £5 million to support those aged between 16 and 21—a transitional fund to help them into adulthood. From the end of last year, it is open to new applications.

We must not lose sight of what the fund is for: to help recipients of all ages to contribute to and participate in their communities, which we can all support and get behind. We want all people—people living with a disability or not—to live as independently and productively as they possibly can. The Scottish Government have worked with those living with a disability to develop the fund to ensure they have choices and are treated with dignity, respect and fairness.

The Scottish Transitions Forum, a national network of more than 850 professionals, young people, parents and carers, funded by the Scottish Government, has helped to inform the progress of policies. It is essential and should go without saying that the voices of the people directly affected by the policy should help to shape it from the bottom up. I urge the Minister to ensure that, across the United Kingdom, policies and initiatives, particularly with regard to those living with a disability, heed their voices and put them at the heart of the process to help improve the situation.

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[The Minister for Disabled People, Health and Work (Sarah Newton)]

It is a pleasure to serve under your chairmanship, Mrs Main, and I appreciate that reminder.

I welcome the debate secured this afternoon by the hon. Member for Wrexham (Ian C. Lucas). It is important, and I agree with him: although I have been in the House seven years, and obviously we legislate for a lot of changes, we do not spend enough time going back over them to see whether they delivered on our good intentions. It is important to scrutinise, debate and revisit what we have done. There are of course always lessons to be learned, and we should do that—learn the lessons as we go forward. I welcome the contributions made by the hon. Members for North Ayrshire and Arran (Patricia Gibson), for Battersea (Marsha De Cordova) and for Strangford (Jim Shannon). I can clearly see that they and other Members who intervened in the debate deeply share my commitment to disabled people, and that they want to ensure they can play as full as possible a part in society. They spoke passionately about their constituents and people who have benefitted from the independent living fund.

From the outset I want to assure everyone present for the debate that the Government are absolutely committing to provide the right support for disabled people so that they can live independently. I want to address the detailed points that were raised, but it is important to take up the challenge set by the hon. Member for Wrexham to look back and explain the reasons for deciding to close the fund in the first place. It is clear to me, looking back at what my predecessors aimed to do, that the decision was driven by a clear case for reform, rather than any desire to cut costs. The way disabled people are supported to live independent lives has changed significantly in the past 20 years, so the ILF model was becoming increasingly outdated. There have been significant changes to the social care landscape over the period, which have meant that mainstream provision now offers the type of control and choice that we have heard about this afternoon. That is far more available in mainstream provision than it was at the time when people thought we needed an independent living fund because those services, and that support, were not available.

I do not think it was right that the ILF was a discretionary fund. As with any discretionary fund, that inevitably led to quite a lot of inequity; people with similar disabilities did not get equal access to services. I was proud to be a member of the Bill Committee on the Care Act 2014, which I remind hon. Members secured all-party support. It was recognised as a huge, significant reform to social care—probably the most significant for 60 years. It was clear that the Act was intended to promote greater independence as well as to increase disabled people’s control over their care and support. It incorporated and built on many of the features of the ILF. Of course, importantly, the Act introduced national eligibility criteria for access to adult social care. That was no longer discretionary, with people having to apply to a fund and others deciding how it should be spent. Criteria were nationally set. Local authorities have a statutory responsibility to deliver on it, but of course they have discretion to do more. We have heard examples from Scotland. Wales takes a different approach, and local authorities throughout the country can innovate. They can join up with other services, such as supported housing, and there are huge opportunities to innovate and join up services.

The Care Act 2014 established not only eligibility criteria but standards. Like any hon. Member present this afternoon, when I work with my constituents we are interested in the quality of care. It is important to focus on that, and not always just on the amount of money, although funding is of course important. The Act brought in consistency in eligibility and in quality of care, and that was a huge step in the right direction.

When responsibility for the ILF was transferred to local authorities and devolved Administrations, of course it was very much part of the Government’s thinking on supporting the principles of localism. Local bodies are accountable to local people in their areas, and are best placed to make the decisions about how to support people. Just like other Members, I get frustrated and even angry with the local authority in my area when it does not prioritise the most vulnerable people. I do not shrink from the fact that because of the financial situation that we inherited in 2010 there have had to be cuts to local authority budgets, but they still have substantial amounts of money. They have to make choices, and when anyone asks me I am clear that they should prioritise the most vulnerable.

We have heard comments this afternoon about the legality of what the Government are doing, and that in some way we are in breach of our obligations under the Equalities Act 2010. I wish to respond to that and emphasise that the Government’s decision to close the independent living fund was challenged in a judicial review, and throughout the process the DWP won on all points. It was judged that the consultation was fair and that it had paid due regard and proper attention to the public sector equality duty. At appeal we were directed to prepare a new equality analysis, which we did, and that informed the decision to transfer funding and responsibility to local authorities in England and the devolved Administrations in Scotland and Wales. That was announced in March 2014, and it was all put in place at the time of the transfer.

At that time, a huge amount of support was given to local authorities and the devolved Administrations, which people very much welcomed. The ILF was fully funded when it was transferred to local authorities, and the Government guaranteed funding for former ILF users until at least 2020. The funding forecasts used to calculate local authority grants were based on the ILF’s own models. That was an independent body—a charity—and the forecasts were based on its models. The budget for the final year of the ILF was £262 million, and in England £363 million was transferred in two years following the closure of the scheme. A further £498 million will be transferred to local authorities between now and 2020, to cover ongoing local authority payments to former ILF recipients. Funding per person has been maintained, and that is what matters to individuals.

As has been said, the funding was not ring-fenced, because I firmly believe that local councils are better placed than central Government to take decisions about their own area, including how they spend their budget. Any attempt to dictate the terms of the transfer would have frustrated the aim of enabling local authorities to join up services that they often already provide to disabled people in their communities.

[Ian C. Lucas]

The Minister said that funding to individuals has been maintained. How does she know that when she does not keep records of the amounts paid by local authorities to individual recipients?

[Sarah Newton]

The hon. Gentleman raises a good point. We transferred the money for that purpose—I was going to come to this point later in my speech, but I will say it now. The hon. Gentleman gave various numbers for losses, cuts, and people not receiving money that came from the research that he has done, including work with third-party organisations. Before this debate I asked him to come and see me so that we could talk the issue through, because the fund was certainly transferred in the full expectation that its recipients would have their funding maintained. If there is evidence to the contrary I would like to sit down with him and go through that.

I appreciate the hon. Gentleman’s welcome for the independent review of the impact of the fund. That was carried out by leading social scientists and showed that the majority of people interviewed during the research were seeing the same level of expenditure, or more, and that the level and quality of support were going up. However, there was variability in that research, and I would be delighted to sit down with the hon. Gentleman and make sure that the money is being spent in the way that was intended.

Through the devolution of the fund, the vast majority of recipients of ILF—94%—were also recipients of care and financial support from local authorities. There was a lot of duplication, and that has enabled local authorities to have the person-centred approach that the Care Act 2014 was always about. We need to join up services around the individual because no two people are the same. No two families have the same circumstances, so we must ensure that support meets the needs of the individual and enables them to live as independently as possible. As the hon. Gentleman recognised, these are devolved matters, and it is for the Welsh Assembly to make these decisions. The Welsh Minister for Social Services and Public Health said that funding of the ILF will continue in Wales, as that will equalise support and “make it more sustainable”. That is certainly a point that the hon. Gentleman’s colleagues in Wales recognise.

We have a clear commitment to ensure that disabled people have the support to lead independent lives, and that is demonstrated in the fact that the Department spends well over £50 billion a year. This year, £52 billion will be spent on benefits to support disabled people and those with health conditions. That is around 2.5% of our GDP, and more than 6% of Government spending, and it is up by £7 billion in real terms since 2010. It is simply wrong when colleagues stand up in the House and say that the Government are cutting benefits for people with disabilities. These are indisputable facts, and when hon. Members stand up in the Chamber, and elsewhere, and wonder why there is a perception that the Government are being cruel and heartless to disabled people, I think they should look at themselves in the mirror. When Members constantly misrepresent the facts, of course people will be worried and scared. Like any other constituency MP I hold weekly surgeries, and I am frankly dismayed when people come along holding their Labour leaflets and showing me what they are being told. They are scared about cuts that are not happening.

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[Ian C. Lucas]

I thank the Minister for her response. The first step I would like to see is for the Government to begin collecting the information from local authorities on the real impact of the closure of the fund on individuals within each local authority area in England, so that we are informed about that situation and can hopefully put at rest the minds of those individuals who face the closure of the fund, such as my constituent Nathan Davies. As a matter of policy, it should always be the case that the Government collect information arising from their own policy decisions. I am amazed that that has not happened to date.

On the issue of the impact of cuts to individuals in receipt of disability benefits, the reality is that, as constituency MPs, we see individual people whose income has been reduced because of political decisions made by the Government. Whether or not the Government have paid an extra £7 billion into the Department for Work and Pensions fund, those individuals have had a reduction in their income. That is what we are campaigning on, and why we are arguing in favour of supporting those people and making political cases.

The Minister is a politician, as I am. We take different views, but I do not doubt her integrity and she should not doubt ours. We campaign because we are representing those individuals who have had their incomes reduced as a result of the political choices the Government have made. We will continue to make that political point, because we see a different vision from the one she sees. That is what our democracy is about. For the most part, this has been a non-partisan debate, and I am rather surprised that the most partisan element was introduced by the Minister, because it is a hugely important issue. We all want to support disabled people. I would be happy to meet the Minister to discuss matters. I will have discussions with members of my own party about the future of the fund in Wales, because I am not convinced that the evidence from what has happened in England supports devolution to local authorities as a good way forward. If the Minister can convince me otherwise, so be it. I will meet Welsh Ministers to discuss the issue with them too.

I am grateful for the debate, which has been helpful and has clarified a number of issues, and I am grateful for the manner in which you have chaired it, Mrs Main.

Question put and agreed to.

Resolved,

That this House has considered changes to the Independent Living Fund.