Welfare Reform Bill

Lord Fowler Excerpts

Wednesday 25th January 2012 Lords Chamber

[Lord Skelmersdale]

My Lords, the key to this amendment—I go a long way with my noble friend Lord Newton on what he has just said—is the settlement letter. What I think the House will need to know is what happens when the local government organisation in question does not abide by the settlement letter. On the answer to that, I suspect, will depend the decision of the noble Baroness on whether or not to call a Division.

[Lord Fowler]

My Lords, there is an amazing coincidence here. I remember back in 1985-86 being strongly opposed on the introduction of the Social Fund by someone with the same name as the noble Baroness, Lady Lister, who proposed this amendment. I have to say that she was not alone. It was one of the most controversial changes that we made at that time. We were strongly opposed by the welfare groups and the party opposite. From memory, we were strongly opposed by the noble Lord, Lord Kirkwood, as well—I do not think that he is in his place. Another group who strongly opposed us—I am not sure that even my noble friend knows this—comprised my social security successors at DHSS who also did not want to introduce the measure. They said that it was far too radical. They put it to a meeting held after the 1987 election and around the table at No. 10, with Margaret Thatcher in the chair, that it should be dropped. Happily, they were defeated. Now I see that 20 voluntary organisations have signed up to it being retained.

The Public and Commercial Services Union, with more than 80,000 members in the Department for Work and Pensions, also regrets its passing. Therefore, I hope that it will be of some comfort to the Minister when he is attacked from the other side that sometimes you find after 10 or 20 years that positions change, as has the attitude taken on this measure. It is not altogether surprising that I have a lot of sympathy with the view taken on the Social Fund. I think it is common ground that we need a system for dealing with emergency payments of one kind or another. I think it is also common ground that some of the 67,000 families who will be affected by the cap will need such help. I think that is common ground all round.

As regards the mechanism, I have to say that I still rather support the Social Fund. That is not surprising as my noble friend Lord Newton and I invented it in the first place. It did have, and does have, a number of advantages. The department has experience of how such a scheme works and has local offices with local knowledge which are, however, kept within a national programme with a national budget. Therefore, I should have thought that from the Government’s point of view as well as from the claimant’s point of view it had substantial advantages. There is a risk that different local authorities will pursue different policies with regard to it.

My view is slightly unlike that of my noble friend, to whom I pay the usual tribute. We worked together for a long time. I made the popular announcements and he did the unpopular ones. I see that he agrees with that. The Government have decided to go this particular way and, as I said on Monday, I do not intend to trample over my successors’ proposals. However, I give just one warning, which is the warning of the noble Baroness, Lady Lister, who knows so much. I pay tribute to her for all the work that she has done on social security over the years. If money is to be made available to local authorities for what I shall call Social Fund purposes, we must do everything that we can to ensure that that money reaches the proper destination—otherwise the exercise is all slightly pointless.

We have seen in the health service where this has not happened. Money intended by the previous Government for prevention of ill-health was siphoned off and used for other more general purposes. Whether my noble friend accepts this amendment —it seems unlikely that he will accept it—the House will wish to be assured that we have some way of checking that the money reaches its proper destination. That seems to me to be the crucial point and that is the assurance that the House seeks.