Disabled People: User-led Organisations

Lord Freud Excerpts

Wednesday 8th June 2011 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud)]

My Lords, I would like to thank the noble Baroness, Lady Wheeler, for the opportunity to discuss disabled people’s user-led organisations and the broader personalisation agenda. I would also like to thank those who have contributed to this short debate this afternoon. It is a crucial area of work and I know that for many noble Lords—many more than are here—it is an area of utmost importance. I also join in the tributes that have been paid to Nasa Begum.

Let me begin by agreeing with everyone who has spoken in support of disabled people’s user-led organisations and of their importance. I will use “the organisations” as shorthand, otherwise I shall use up much more time than I have available. These organisations have a unique insight and are a powerful voice for disabled people, and the Government recognise their important role in shaping future service provision. We want to secure their continued involvement by developing their skills and building on their experience. With the current need to reduce the deficit and rein in public spending, budgets everywhere are tight.

We know that many local authorities have decided to reduce grant funding for these organisations, leaving them to rely on other means of generating income, such as the supply of services. However, with a new emphasis on personalisation and localised delivery of services, there are opportunities for these organisations to develop alternative sources of income and continue to be involved on the ground in support of disabled people.

This Government have to spend wisely. We are not in a position to throw money at these organisations, and the investment we are making in cash and time must be targeted so that a little will go a long way. Working closely with these organisations, we have devised a package of support designed to get the most out of the money we have put in. I will outline the details of the package in a moment, but let me just put this approach into a wider context.

The work that organisations such as these have been doing—bringing people together, volunteering their expertise and influencing policy—is exactly the kind of thing that the Prime Minister means when he talks about the big society, a point made by the noble Baroness, Lady Campbell. For groups such as these, the big society is already a reality. We want to use the limited funding available to build on this good work and develop an even bigger society, acting professionally, delivering services and working alongside local and national government to deliver more for disabled people.

The advantages of working with organisations such as these are clear. They are the experts in their own disabilities; they are organised, knowledgeable and in many cases already provide support and services alongside those provided by the public sector. Often those services are more innovative, work better for their users and cost less to provide than the public sector alternative. Essentially, these organisations already know what works and they have clear ideas about what does not. The Government want to tap into that knowledge.

However, our experience of working with these organisations has also demonstrated that some groups are lacking the professional, business and leadership skills they need to drive their organisations forward and to weather the current economic climate. That is why we have devised a package, working closely with representative organisations, to deliver £3 million of support designed to build capability, communicate best practice and bring in voluntary expertise. In answer to the noble Lord, Lord McKenzie, the £3 million encompasses the full support package. It is doing what the noble Lord, Lord Addington, called for—making sure that we have a way of dragging in the expertise of these organisations to help disabled people.

The money will fund a national lead role shared by a civil servant and a disabled people’s representative, and link government and disabled people’s organisations at a high level. This will create a central, national focus for these organisations and cement their national presence. Beneath the national lead there will be a network of around 12 ambassadors, broadly spread out geographically. This will be complemented by a range of expert volunteers matched to organisations in their area that need their skills. All too often these organisations have told us that they lack the specific skills needed to run a successful organisation—skills ranging from accountancy and financial management to human resources support and business planning.

Finally, there will be a facilitation fund providing small grants for these organisations to address specific needs. This cash-limited fund will be managed by the national lead and a group of ambassadors, and be used to pay for things that support the sustainability of these organisations. Recruitment for these posts closed last week and we have received a great deal of interest, with around 10 applications for the lead role and 81 applications for the ambassador positions. The package will formally be launched next month, when we will announce who has been appointed. It will help these organisations to develop their skills and expertise.

Let me pick up on some of the points raised. The noble Baronesses, Lady Wheeler and Lady Wilkins, both asked how we will encourage local authorities to commission through these organisations. We are looking to the ambassadors to work with local authorities and to help local authority commissioners understand the added value that can be gained from working with these organisations. That support will allow the organisations to compete more effectively. We will emphasise through the ambassador network the added value that they can bring above and beyond what more commercial entities can offer.

The noble Baroness, Lady Campbell, asked what plans the Government had to crank up the delivery of the personalisation agenda. Our figures show that in September last year 248,000 people were receiving a personal budget. That is a good increase of 100,000 on the previous April, but it is still pretty patchy and we are determined to boost what is happening on that front.

In response to the noble Lord, Lord McKenzie, and the noble Baroness, Lady Wilkins, I can confirm that we want disabled people to have access to a good, strong organisation in their area. The noble Baroness, Lady Campbell, asked what local authorities might do to compensate for the extra costs. I shall write to the Minister at the department with that question.

The noble Lord, Lord Ramsbotham, made an interesting point about mental health. This is an enormous and very complicated area. I am extremely conscious that we have not got this right, particularly in prisons. We are talking to the MoJ. I take very seriously mental health issues in this area, but I find it very hard to find a coherent set of solutions. However, I am conscious that this is something that we need to get on with in the months and years to come. I take the noble Lord’s point.

I know that many noble Lords are champions of disabled people’s user-led organisations. I leave the Committee with the simple message that so are this Government. This is an area that we want to champion. We will continue to support and encourage those organisations’ involvement and help them develop into the professional operations that we know they can be.