Welfare Reform Bill

Lord Ashdown of Norton-sub-Hamdon Excerpts

Monday 23rd January 2012 Lords Chamber

[Lord Ashdown of Norton-sub-Hamdon]

My Lords, I feel that this debate is probably drawing to a close, and I want to address particularly the last point made by my noble friend about transitional measures. I fear that I do not agree with him.

I speak as somebody who has voted consistently with this Government for every single one of the very tough benefit reform proposals. I think that Mr Duncan Smith and my good colleague Steve Webb in the other place are doing something extremely important. They are at last reforming the welfare system root and branch. I agree with the point made by my noble friend that there is a huge prize to be gained here, namely the universal credit and genuine reform. I am strongly in favour of that, as indeed I am in favour of a benefit cap, contrary to what was said in certain broadcasts yesterday which inaccurately reported comments that I had made. It is important and I strongly favour it. But I believe that, before we vote for this, it is important—for exactly the reasons that have been given earlier—to have a look, at least in outline, at some of the transitional mechanisms.

I hope that the Minister in answering this debate will address that, not least because that was what was promised by Mr Duncan Smith in the other place. I shall quote what he said:

“We recognise that there must be transitional arrangements … We will make sure”—

this is his promise—

“that families who need transitional support will receive it”.—[Official Report, Commons, 9/3/11; col. 922.]

When he answers this very important debate I hope that the Minister will tell us whether those measures have been advanced and whether any proposals have been made. If they have not, surely it would have been better to consider this with at least some outline of what those measures—to fulfil a promise made by the Secretary of State himself—will be. If he cannot do that now, will he at least tell us when he will be able to bring them forward?

Like my noble friend Lady Walmsley, who spoke from our Benches a moment ago, I believe that this should be passed. But I cannot pass it without at least some sight of the Government’s outline proposals for those transitional measures. If the Government cannot offer that to us now, let them at least say when those proposals will be published.

[Lord Lester of Herne Hill]

My Lords, may I ask the Minister a couple of questions, as a member of the Joint Committee on Human Rights? As I am sure he will have been briefed, the committee made a report on the Bill in which it raised a couple of questions which are in harmony with the points made by my noble friend Lady Walmsley about the effects on children.

The first proposal was to suggest to the Minister that instead of calculating the cap on the basis of all households, the fairer thing to do is to calculate on the basis of the income of households with children. Since we raised that in the committee, I would be grateful to know whether that idea has been pursued, and if so with what result. This proposal was in paragraph 1.59.

The second proposal that was made was to suggest that, where benefits are earmarked for children, this should be done in order to make sure that they are treated fairly. For example, it was suggested that,

“the Bill could be amended to allow payments intended for children to be labelled as such and be paid to the main carer”.

That was in paragraph 1.82. Again, I would be grateful, on behalf of the committee, to know whether that idea has been pursued.

--- Later in debate ---

When we moved into office, more than 10.6 million working age people in this country did not work and around 2.6 million people had spent at least half of the previous 10 years on some form of out-of-work benefits. We find that situation unacceptable.

[Lord Ashdown of Norton-sub-Hamdon]

I have listened to the Minister very carefully. I take it from his answer earlier on—he will forgive me for interrupting at this point; I just wanted to wait and see whether anything else was forthcoming—that the Government are not going to say anything more about transitional mechanisms at this stage. Is that correct? If it is, can he tell us when those details will be made available?

[Lord Freud]

My Lords, I was going to come on to what we were proposing with regard to temporary accommodation. That is currently out for consultation and is the particular area which this amendment looks at. We are going through the process and will come up with proposals in due course—I am not sure that I can measure the months too precisely. The general regulations will need to be in the April to May period. That is the time by which we are looking to get our arrangements for temporary accommodation sorted out so that those affected do not find themselves being double hit by going into very expensive temporary accommodation.

We are looking at the very high rental costs associated with temporary accommodation. We are looking at tackling those levels while ensuring that providers’ reasonable costs are met. Temporary accommodation rates, as your Lordships will know, are very often well above the market rate and the LHA rate due to the higher management costs. We are looking at stripping those management costs out of the temporary accommodation rates so that they do not impact within the cap. We have carried out an informal consultation with key stakeholders—local authorities, housing associations, government departments and some homelessness organisations—and their input will feed into the design of those temporary accommodation arrangements.

Perhaps I may pick up on one or two of the extra points that were made. The noble Lord, Lord Wigley, said that 200,000 people would have to move. I do not know where that figure comes from. The total number of households affected is only 67,000 and we do not expect that every household affected by the cap will need to move at all. We are aiming to get all these other options into shape.

--- Later in debate ---

[Lord Newton of Braintree]

I meant to say at the beginning, but I do not think I did, that if anyone can be held responsible for the continued existence of child benefit in this country, it is me. In the late 1980s, it had not been uprated for two or three years. I became Secretary of State for Social Security. I fought tooth and nail to reintroduce the uprating of child benefit.

I had a lot of battles with a lot of colleagues and managed to do it in the form of introducing the increased rate for the eldest child—the first child—which was laughed at at the time but appears again to have stood the test of time. I yield to no one as a defender of child benefit and I certainly do not want to abolish it. I have reservations about the Government’s proposals on taxing it—they will come up at another time—but I will not be accused of being hostile to child benefit. I am simply saying that I support it but I also support the objective of ensuring that children are in households where it pays for the people involved to work if possible.

[Lord Ashdown of Norton-sub-Hamdon]

I am most grateful to the noble Lord for making the point. Indeed, he deserves all the credit for child benefit—he does not claim it as he is not an immodest man—and millions in this country owe him a great debt. The question that puzzles me, and perhaps he can help, is: how is it right, morally or otherwise, to deny child benefit to somebody on £26,000 a year when they get it on £80,000?

[Lord Newton of Braintree]

The issue is at what level the benefit cap should be set, and whether to set a different level that automatically puts people with children, depending on the number, in a position in which fewer of them can afford to take jobs at the rates they are likely to be able to command. It is a matter of judgment not of fact. It is an issue that cannot be evaded, but it has been evaded in a lot of the discussion we have had tonight. I will not vote for the amendment but I will not dismiss the concerns, particularly those addressed by the noble and learned Baroness, Lady Butler-Sloss. They need to be addressed by Ministers in working out the detail. I repeat my phrase that I will join in on holding their feet to the fire but I will not join in on this rather hasty and ill considered amendment today.