Welfare Reform Bill

Lord De Mauley Excerpts

Tuesday 17th January 2012 Lords Chamber

[Baroness Hayter of Kentish Town]

My Lords, I am not sure whether the noble Lord, Lord German, is for or against the amendment, but all the other speakers have clearly supported these amendments. This is quite sensible, because the amendments all set out to ensure that vulnerable people can continue to access support once the Social Fund has been devolved, to whomsoever.

The first amendment in the group implements a recommendation of the Select Committee in another place. It would provide some reassurance about the effectiveness of the new system of helping those in need, and clearer information to local voters about whether their local authority is choosing to spend less than the allocated amount. It does nothing to restrict local discretion in how to implement the Social Fund replacement scheme; it merely places a requirement on the local authority, as has been said, to account for it. I think that all noble Lords who spoke would support that, and I feel sure that this is an aim that the Minister, similarly, will support.

The second amendment in the group, as was spelled out, would ensure that the use of local connection rules cannot prevent, for example, care leavers, the homeless, those fleeing domestic violence—the noble Lord, Lord Blair, spoke about them—and those leaving institutional residential care accessing Social Fund-type support. It is true that it ties the hands of local authorities a little, but only to ensure that groups that might be very much in need of support are not left with nowhere else to turn. As we heard, for many women fleeing domestic violence, community care grants are vital in helping them to set up a new home and perhaps buy a cot, a bed or a cooker. Given that many women need to enter refuges or other homes away from their former partners, they will often be unable to meet local connection rules.

We know that, among people who use the discretionary Social Fund, one in eight is leaving some sort of institutional care; nearly one in 10 is leaving prison; and one in five has at some time experienced homelessness. I work in Camden with people who have alcohol problems. There are a lot of train stations in Camden, so a lot of people arrive on our doorstep. At the time we help them with their drink problem, they will not be in the same area where they have lived and worked for perhaps 30 years.

Although I understand that the noble Baroness, Lady Meacher, will not press her amendment, I urge the Minister to consider it. We know that although universal credit budgeting loans could be available for rent in advance, crisis loans will be abolished before the introduction of universal credit, and it could be some time before the new system is set up and reliable. We know from our experience of many new IT systems that even the best laid plans occasionally go wrong. We have had many assurances from the noble Lord, Lord Freud, about the robust nature of the system being put in place, but it would be prudent to ensure that a national safety net remains while we wait for him—we hope—to be proved right on this occasion. I said “prudent” but it is probably vital that we continue to guarantee national access to community care loans and crisis loans until the universal credit system is set up. Once national systems have been devolved, the accountability that my noble friend spoke of, as well as the local connection rules, will be an essential part of helping these vulnerable groups. We are happy to support all three amendments in this group.

[Lord De Mauley]

My Lords, when we discussed the Social Fund last week, I hope I was able to offer reassurance in two key areas. First, I informed noble Lords that we would extend the 2014-15 review of a cross-section of local authorities to include information about the way they have used their funding for the new local provision. Perhaps I may return to that in a moment.

I was also able to assure your Lordships that the settlement letter that noble Lords referred to today that will accompany the funding will set out what the funding is to be used for and will describe the outcome that must be achieved—although, for reasons I explained, not the method that should be used to achieve the outcome. After further consideration of the issue, and following questions from noble Lords, I am able to explain what the settlement letter will contain. The letter will set out what the funding is to be used for, the underlying principles, and describe the outcome that must be achieved. It will say that the funding is to concentrate resources on those facing greatest difficulty in managing their income, and to enable a more flexible response to unavoidable need. The letter will make explicit that the funding is to provide a replacement provision for community care grants and general living expenses crisis loans.

The letter will go on to explain that community care grants were awarded for a range of expenses, including household equipment, and were intended to support vulnerable people to return to or remain in the community or to ease exceptional pressure on families. They were also intended to assist with certain travel expenses. It will also explain that crisis loans were made to meet immediate short-term needs in an emergency or as a consequence of a disaster when a person had insufficient resources to prevent a serious risk to the health and safety of themselves or their family. As I said in our discussion of Amendment 50 last week, I assure your Lordships that we are equally committed to ensuring that this funding goes to help the most vulnerable.

Amendment 50ZA would require the Secretary of State to publish information on the amount of money given annually to each local authority. I can assure your Lordships that we already plan to publish this information on the DWP website. On community care grant budgets, noble Lords might like to be aware that work has been done since Committee to make the funding distribution fairer by changing the funding allocation methodology.

It is each local authority’s responsibility to decide what type of support it provides with these funds. We have already been made aware of a variety of innovative ways in which local authorities plan to use this money, such as furniture re-use schemes, working with credit unions, investing in existing projects or joining up with other organisations in the area. For example, the fieldwork undertaken by the department shows that rural local authorities had very different ideas from those of urban authorities, and would embrace the freedom to design and establish local provision that suits the particular challenges they face.

Some benefit recipients cannot even afford the delivery of free goods from support schemes. During the fieldwork, the department was made aware of the fact that a local authority in Yorkshire is considering using some of the new funding to pay the delivery fees charged by an existing provider for the delivery of free goods to benefit recipients and other low income groups. This demonstrates the benefit of tailoring support to the local area. This initiative is particularly useful in a rural area, as it would have been far more expensive for people to arrange their own deliveries than in an urban area. This service would help people on the lowest incomes to receive free household goods that they might otherwise be simply unable to access.

Another example of innovative thinking came from a local authority in the Greater Manchester area, which said that it would use the funding to expand the local credit union, as this already provides household goods to people on low incomes. Expanding the scheme would increase access to affordable credit for those on low incomes and reduce the reliance on high-cost and illegal lenders. Yet another different approach to the new provision is that of a local authority in the south-west, which has been looking at how commissioning services would boost the local economy, providing new skills and routes back into employment and out of poverty.

As I hope is evident from these examples, giving local authorities the responsibility for deciding what the new local provision will look like allows for innovative new schemes that are tailored to the local area.

[Lord Kirkwood of Kirkhope]

These examples are very helpful, as is the further fleshing-out of the content of the letter to local authorities, but what is the arbitration process, supposing local authorities deliberately and in bad faith pay no attention to the contents of the letter that the Minister is proposing to send?

--- Later in debate ---

[Lord De Mauley]

Perhaps I might come to that as I proceed. Amendment 50ZA would also require the Secretary of State to publish an annual report accounting for the expenditure of this funding. As each local authority will be delivering different types of support, requiring the Secretary of State to report on a large number and variety of schemes—some of which, as I have explained, would be combined with existing services—would, I suggest, be impractical as well as costly. It would lead to expenditure on administration when local authorities will, in any event, be required to account to their communities for their spending and services.

There will be a large variety in the size of awards to local authorities, as the amount of funding each will receive will be based on the equivalent Social Fund spend at the point of transition. Therefore, while some local authorities will receive large amounts, others will receive less than £10,000. It would be far too onerous to require these authorities to report in detail on how the funding is spent. It would make no sense to enforce the same reporting requirements on such a wide range of local authorities receiving such differing amounts. However, as I said in the debate on Amendment 50, the department will conduct a review in 2014-15, obtaining appropriate information from a representative cross-section of local authorities, in order to help inform future funding levels. I am not talking about a small sample. An analogous exercise conducted last year covered 50 local authorities, so we are talking about quite a substantial exercise. Following the helpful contributions of noble Lords in Committee, I have made a commitment that this exercise will be extended to provide more information about the way in which local authorities have used the funding.

Amendment 50ZB seeks to ensure that certain particularly vulnerable groups of people are not rendered ineligible for support on the basis of a test of local residence or connections. We have discussed this issue with local authorities, which are, of course, as noble Lords will be well aware, already very familiar with the issue. In fact, it is not really a Social Fund-specific issue at all because local authorities already deal with boundary issues in the delivery of other services, such as housing and homelessness. Local authorities already have many duties to provide assistance to vulnerable people under existing legislation and frequently co-operate with other local authorities in doing so. We believe that local authorities should be given the freedom to set their own eligibility criteria to enable them to tailor the new provision to their local area.

Furthermore, we will encourage local authorities to link support across boundaries. Indeed, several authorities have mentioned to us in discussions that they were already planning to establish collaborative working relationships. Wandsworth, Hammersmith and Fulham and Kensington and Chelsea, for example, already work together to provide some joint services and have said that they will look to see how they can join up for this new local provision. Bristol is also looking at working with neighbouring authorities. Each of the groups referred to in Amendment 50ZB already receives assistance from local authorities and the Government. As my noble friend Lord Boswell mentioned, local authorities already have a number of existing responsibilities in relation to the provision of emergency and longer-term accommodation. They have particular responsibilities in respect of those with a priority need, such as those who are vulnerable because of age, mental illness or disability and those with dependent children.

The noble Baroness, Lady Lister, referred to Section 199 of the Housing Act 1996, which sets out what constitutes a local connection in relation to people who are homeless. There is also statutory guidance for local authorities from the Department for Communities and Local Government to which local authorities must have regard. The effect is that those with no local connection receive help from the local authority to which they apply; those with a local connection to a particular area receive help from the authority responsible for that area unless they are at risk of violence if they return there. A local authority housing a vulnerable person would be in a good position to provide help through the new local provision—for example, by providing furnishing for the accommodation it arranges. This is a more holistic approach for local authorities to adopt and such an approach would also be beneficial for local authorities delivering support to those fleeing domestic violence. Local authorities can use the new local provision alongside existing support.

The noble Baroness, Lady Lister, challenged me as to how the other groups in the amendment are covered by duties and responsibilities. Local authorities already have a duty to house someone fleeing from domestic violence. They will be able to use the new provision to continue to provide support further down the line—for example, helping to furnish new accommodation that has been provided to someone who has fled domestic violence. As regards young people leaving local authority care, local authorities have a duty to safeguard and promote the welfare of a child who has been a looked-after child, including providing maintenance, and have such duties until the child is 21. Local authorities also already have duties to support disabled people or those who are destitute. They must make arrangements for promoting the welfare of those with a disability or mental disorder, including assessing the welfare needs of a person leaving hospital having received in-patient treatment for a mental disorder.

The National Health Service and Community Care Act 1990 requires local authorities to prepare a plan for the provision of community care services in consultation with relevant bodies and to assess the needs of people who may be in need of these services. Local authorities are already required by multiple legislative duties to provide support to the most vulnerable people in their area and they have a great deal of experience of doing so. They will be able to use this experience to deliver the new local provision in a way that will best suit the people in their local area. Therefore, I suggest that there is no specific need for local connection eligibility rules to be published.

The noble Baroness, Lady Sherlock, asked about the Children’s Commissioner’s report. I have read the report, published last week, which suggests that certain changes made by the Bill could lead to breach of the UN Convention on the Rights of the Child. The Government are satisfied that the Bill is compatible with their human rights obligations, including those under the UN Convention on the Rights of the Child.

The safeguards to which I have referred will ensure that the money intended for vulnerable people goes to vulnerable people. The most discretionary support will be better tailored to people’s needs when it is delivered locally. The new local provision and the national provision of payments on account will complement each other and, taken as a whole, they will provide more effective and better targeted support. For these reasons, I urge noble Lords not to press their amendments.

[Lord Wigley]

Does the Minister intend to respond to the point raised by the noble Lord, Lord German, with regard to the interplay with devolved authorities? It is a material question that was raised in Committee. My understanding in Committee was different from the understanding of the noble Lord, Lord German. If the Minister cannot respond now, perhaps he will write to interested parties in order to provide clarity on the matter.

[Lord De Mauley]

I am grateful to the noble Lord. I will write to him.

[Baroness Meacher]

Can the Minister also respond to the point raised by the noble Lord, Lord Kirkwood, which I also raised, on the real assurance—the teeth, if you like—that the Government will need in emergencies to make sure, without specifying how it is spent, that the money is spent on those in greatest need? I would be grateful for a response from the Minister.

[Lord De Mauley]

My Lords, I hoped that I had emphasised that point. A great deal of work has been done with local authorities explaining the proposal and the intentions behind it. We have encountered considerable enthusiasm for the principle. We have put a lot of effort into helping and educating local authorities which will be making the decisions. I hoped that I had emphasised the importance of that point. I am agreeing with the noble Baroness but I do not think that I can go very much further than I have gone.

[Baroness Sherlock]

I am obviously being very slow. What will the Government do if a local authority spends the money on a swimming pool?

[Lord De Mauley]

My Lords, the local authority will not spend the money on a swimming pool.

[Baroness Lister of Burtersett]

My Lords, I thank all noble Lords who have contributed to the debate. They have added some powerful arguments and questioning. In response to the noble Lord, Lord Newton, I should say that it is better to go from zero to hero than the other way round.

I thank the Minister who, I feel, is inching gradually in the direction that we have been trying to push him. He has again reassured us that the Government share the concern across the House that the money that is allocated to local authorities should be used for the purposes intended. It was helpful to have more information about what will be in the settlement letter. However, I have heard nothing today to reassure me that the money will necessarily be spent on what is intended. We should think of the context. Local authorities are under huge pressure. Apart from anything else, they will have to be responsible for council tax benefit, with a cut of 10 per cent in the money available for it. How tempting it might be for them to say, “Oh, let us use a bit of the Social Fund money to top up council tax benefit”.

How can the noble Lord say with such assurance that the money will not be used on a swimming pool, a road or anything else? Without the information that this amendment would provide, I am afraid that the Government simply cannot give that assurance. I am very disappointed that the noble Lord has not felt able to go further in meeting the spirit of these amendments even if not the letter of them. I do not think that he has dealt adequately with the questions and comments made by noble Lords.

We have the example of the supporting people budget. When the ring-fence was removed, immediately many local authorities started spending the money on other things. That was with an existing budget. This is a new budget, which will be even more tempting for local authorities. I hope that the Government will reflect further on this issue. We will certainly reflect further but, for the moment, I beg leave to withdraw the amendment.