Welfare Reform Bill Debate
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Lord Freud
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Welfare Reform Bill
Lord Freud Excerpts(12 years, 4 months ago)
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Baroness Thomas of Winchester
My Lords, never have I minded less about changing my original speech so extensively, because the Government have conceded on the qualifying period for PIP being brought back to three months from six months. I am grateful to the Minister for listening to the concerns expressed by many disabled people and the organisations that support them about the hardship that such a long qualifying period could cause. The reasons for changing the time back to three months are compelling, particularly in relation to those who have sudden onset conditions or a serious accident, and there is now no need to rehearse the arguments yet again. I beg to move.
Lord McKenzie of Luton
My Lords, I, too, shall be brief because, as the noble Baroness, Lady Thomas, has said, the Minister has flagged his acceptance of the amendments in this group.
The debate in Committee led by the noble Baroness, Lady Thomas, centred in particular on the importance of keeping a qualifying period for PIP at three months, but obviously the concept of increasing the prospective period from six to nine months to align PIP with the definition of “long-term disability” in the Equality Act has been helpful to the process. However, the arguments for a three-month qualifying period are strong, and it is commendable that the Government have accepted the case. We have not heard them today but those arguments concerned conditions of a long-term nature having a sudden onset, conditions which are not diagnosable immediately after the onset of symptoms, and conditions which have an immediate devastating impact.
I have just one question for the Minister on the required period condition. This has been touched on before but is not the subject of an amendment today. On the basis of what is before us as an amendment, to be eligible for PIP it has to be determined whether, as respects every time in the previous three months,
“it is likely that if the relevant ability had been assessed at that time that ability would have been determined to be limited or … severely limited by the person’s physical or mental condition”.
The issue is how this requirement is to be interpreted for those with fluctuating conditions. At a recent meeting to consider how things should work for those on the autistic spectrum, we were assured that, although the wording was a bit clumsy, it covered the situation. It would be helpful if the Minister could confirm that or, as we are at one on this issue, commit to tidying it up at Third Reading.
However, all in all, the Government are to be commended for doing the right thing on this, as indeed is the noble Baroness, Lady Thomas, for having led the charge and continued to press the matter.
Lord Freud
My Lords, I tried to rise to speak earlier because my name is added to this group of amendments tabled by my noble friend Lady Thomas, and I am very pleased that I have been able to support them. We have had a lot of responses from people whom we respect and whose advice we find very useful, including Macmillan and CLIC Sargent, and I thank them for the time that they have given.
When we looked at this issue in Committee, I think it was generally agreed that an overall 12-month required period condition was right, but there was a lot of concern that the six-month period in question here was too long. Bluntly, we were trying to balance two factors: payments being made sooner against the potential for more assessments to ensure that ongoing payments were correct. That is why we ended up with periods of six months plus six months. However, we have been listening to the arguments and have been persuaded that the balance should shift. There was a clear consensus that a three-month qualifying period and a nine-month prospective test offered the fairest solution, and that is why we are able to support the amendments.
On the point raise by the noble Lord, Lord McKenzie, I think it is easier if I write to him, as this is a fairly technical matter. On that basis I am very happy to support the amendment tabled by my noble friend.
Lord McKenzie of Luton
My Lords, I will speak briefly in support of the amendment. The case has been very clearly made. The amendment is seeking the assurance of something written in primary legislation rather than the comfort that was given that this could be dealt with in regulations.
Perhaps I may take the opportunity to clarify a part of the debate we had in Committee. The Minister said:
“Turning to the current rules, broadly speaking, current DLA provisions have a one-year linking rule. This allows individuals over 65 to renew an award within one year of their previous award without losing DLA entitlement. Similarly, we intend to allow a linking period for PIP. This will support those individuals who reach the upper age limit and have a break in their claim through temporary improvement, provided the individual makes a claim within a defined period and continues to fulfil the eligibility criteria for PIP”.
I understand all of that. The next sentence says:
“As with DLA, there will be restrictions on new and existing claims for those over the age of 65”.—[Official Report, 16/11/11; col. GC 305.]
Can the Minister expand on what particular restrictions on existing claims for those over the age of 65 he is intending to implement?
Lord Freud
My Lords, I should like to take the opportunity to set out our position in relation to people who are approaching 65 and over the age of 65 and, I hope, give a degree of reassurance as to what we are aiming to do and, if people could accept our firm stated intention, explain why that would be a better and more flexible way of proceeding. I hope that some of the things I said in Grand Committee and what was in our policy briefing document in May will have reassured the noble Baroness, Lady Wilkins, at least to some extent, although I am not absolutely confident of that, given the slightly questioning tenor of her remarks.
People in receipt of DLA who are aged 65 or over when PIP is introduced will not be reassessed for the new benefit from 2013. These reforms will initially be focused on people of working age. This will enable us to ensure that learning from the reassessment of working-age recipients is properly considered before any further changes are developed and implemented.
I understand that the purpose of this amendment is to ensure that financial support continues into pension age for individuals who may have had less opportunity to work and save during their working life due to their condition. I can reassure noble Lords that this is also our objective and can be achieved without amendment to the Bill, but instead through regulations, much as the detail for DLA pensioners is provided for in regulations. We intend to make regulations for the personal independence payment that will allow people who have reached the upper age limit to continue to receive it for as long as they continue to meet the entitlement conditions. Our priority is to support those individuals with established, long-term health conditions or impairments that would put them at a financial disadvantage over a long period. As we indicated in our entitlement thresholds and consultation document, we expect to consult formally on a range of issues to help inform the regulations. This is such an area and we expect to begin consultation in the spring.
It is also our intention that the rules for people over the age of 65 should be broadly similar to those that currently apply to DLA. For example, DLA provisions allow a one-year linking rule which lets those aged 65 or over renew an award within one year of their previous award expiring without losing DLA entitlement or having to satisfy a qualifying period. This provision is intended to allow for those on a fixed-term award to renew their award on a new claim or to reclaim where their condition previously improved and subsequently deteriorated.
I turn to the link question raised by the noble Lord, Lord McKenzie. Under DLA, claimants over the age of 65 cannot move up or down the mobility component rates or move to the lowest rate care component. In the main, these rules match up with attendance allowance and that is an example of the kind of restrictions currently in DLA, which we will look to and consult on maintaining in PIP. Our commitment is to maintain support for those individuals who have relied on DLA or PIP for their working lives into retirement. People who develop care needs during retirement as part of the natural ageing process, for example, and who are not receiving PIP, will be able to claim attendance allowance.
The effects of this amendment are important. It could allow an individual aged over 65 who had previously, at any point in the past, received PIP to make a new claim for the benefit. This could have the effect of allowing people over 65 to receive PIP if they have previously been awarded it, even if there was a very long break in the claim—a break of decades. We would not want that to be the case.
Under the powers we have in Clause 82, we can ensure that the regulations can be flexible to respond to future changes. The changes in the social care system were raised as an example by the noble Baroness, Lady Wilkins. Clearly, if there is a rebuild of the entire support system, that is one thing that we might want to take account of. It could, of course, go both ways: it might affect pensioners.
In terms of developing the rules and how we implement them, I would like to assure the House that we will continue to work closely with the PIP implementation development group to ensure that policy design and delivery in respect of people aged 65 and over are informed by disabled people and their representatives. We intend to consult fully on our proposals during the spring as part of that commitment to involve disabled people. Given these assurances on our approach, I urge the noble Lord to withdraw the amendment.
Lord Low of Dalston
My Lords, I declared my interest as a DLA recipient when I first entered the debate on PIP before dinner. However, in view of the particular relevance of this amendment to my own situation, I ought to have made it clear, like the noble Baroness, Lady Wilkins, that I have received DLA from its inception and continue to receive it now that I am past pension age.
Obviously, at this time of night, I am not going to press the amendment and will seek leave to withdraw it. However, I have to confess that I am not entirely convinced by the Minister’s answer. The strongest point he made was that, in the way it is drafted, the amendment could override linking rules and enable somebody who had received DLA a considerable length of time before he reached pension age successfully to resuscitate a claim to PIP after he reached pension age. That would not be our intention and, as I said in moving the amendment, if we could resolve that and any other matters of mis-wording to which the Minister could draw my attention by Third Reading, I would be very happy to have discussions with him and his officials.
Lord Freud
Perhaps I may make the position clear. The difference between us is that we would not want this in the Bill but the substance of what we are trying to do matches what the noble Lord is looking for. I am not in a position to offer anything further for Third Reading. I am, however, very willing to see him personally—and any groups he wants as well—to discuss this matter when we move into the spring period to make sure that we get it absolutely right. We are anyway having full consultation, but I am absolutely prepared to commit to looking at this so that the detailed regulations are acceptable.
Baroness Hayter of Kentish Town
My Lords, my name is also on this amendment and it is clear that we support it. The amendments are, I hope, welcomed by the Minister as an opportunity to firm up what, as the noble Baroness, Lady Hollins, has said, he said before Christmas: that carers of claimants of both rates of the daily living component will retain eligibility for the carer’s allowance, and to make that undertaking concrete by placing it in primary legislation.
The Minister and the House know well that the changes to disability benefits are causing considerable concern to disabled people and to their carers. This amendment is about providing some clarity. It cannot provide full reassurance because carers do not yet know how they will be affected by the 20 per cent proposed cuts or the exact way that the new thresholds will work. We know that half a million people will lose benefit, but we do not know how many of that half a million qualify for carer’s allowance at present. I am afraid we must assume that there will be a large number of current recipients who will no longer qualify for support.
There has not yet been any impact assessment—it is not simply that the noble Baroness, Lady Hollins, cannot find it. We hope—indeed, we expect—that there will be as part of the response to the consultation announced yesterday. However, for today, we would simply ask the noble Lord to solidify his commitment to those who qualify under the new assessment process that their carers will be able to receive carer’s allowance. At the moment, the Bill does not repeat what is there for DLA. It does not even appear to do it in regulations.
A move from warm words to an undertaking in the Bill to maintain the status of carers’ rights would be very welcome. It would be a sign that the Minister is listening to disabled people and understands their need for clarity. In Committee the Minister spoke very warmly of our 6 million carers. Along with those warm words, can we have something in legislation?
Lord Freud
My Lords, I welcome the opportunity to place on record the value that this Government place on carers and their work. Although times are difficult, I have managed to redesign the universal credit so that we are ameliorating the £100 cliff edge, as carers do some earning, that they dislike so much. I hope that that is a token, even in these difficult times, of how much we value carers.
The second thing I would like to mention is more than a token. I was really pleased to be able to announce before Report that both elements of PIP will be a gateway for the receipt of carer’s allowance. I am grateful for the very detailed and knowledgeable debate that we had on this matter. We have had a lot of very thoughtful and clever representations from groups such as Carers UK, which we have taken very seriously indeed. I know that our announcement has been very warmly welcomed by various groups.
There is some concern about how the decision is to be enacted. That is clearly what is driving the amendments from the noble Baroness, Lady Hollins. I want to give an absolute assurance on this. We will use the powers under Clause 90 of the Bill to make the necessary change. We will bring forward, in due course, the appropriate secondary legislation to amend Section 70 of the Social Security Contributions and Benefits Act 1992 and put the position beyond doubt by making clear that people will be able to access carer’s allowance from both rates of the daily living component of the PIP. That is how we are planning to lock that position down, and it is a commitment that I make here and now to carers in this country. We have listened to the concerns from Peers and the carers’ lobby.
The noble Baroness asked how many carers would be affected. We expect to undertake an impact analysis as we get to regulations. The noble Baroness, Lady Hayter, spoke about large numbers being affected. That is a slightly brusque assumption given that carers currently on the lowest rate would not anyway be passported. We are talking about the top two rates. The assumption of a 20 per cent cut in that budget does not marry up. It is not a cut on where we are today; it is a cut on where we would be at the end of this Parliament. We have to await the impact analysis before we can know the real figures.
On the basis of the reassurances that I have provided, I hope that the noble Baroness will not press her amendments.
Baroness Hollins
My Lords, I am indeed reassured to hear the Minister’s response, in particular that an impact analysis will be done as the regulations are prepared. I accept the Minister’s assurance that the passporting arrangements will be locked down. I beg leave to withdraw the amendment.
Lord Freud
Lord Freud
My Lords, I am happy finally to place in the Bill the Government’s intention to continue to enable disabled people who live in care homes to be mobile. I am equally pleased to have the noble Lord, Lord McKenzie, joining me on this amendment.
The amendments in this group put our position beyond doubt by removing from the Bill the power to make regulations to stop payment of the mobility component of PIP to people who live in residential care homes and whose costs are borne from public funds.
As noble Lords will know, we examined the evidence base, sought contributions to the debate from many disabled people and disability groups, and considered in detail the excellent report produced by the noble Lord, Lord Low, which was published in November. We established, as did the noble Lord, Lord Low, that while there was some duplication, the overall picture meant that in order to access mobility provisions within a care home environment, which we have steadfastly said we are committed to protect, the fairest outcome was to retain payability of the mobility component in those settings.
I am pleased to be able today to act upon these findings and to introduce a new, separate clause for people undergoing treatment in hospitals or similar institutions. I hope that noble Lords will feel that this reflects the fact that we do listen—sometimes, especially when people shout very loud—and that we try to get things right in this area.
I can go through each provision in turn, but I hope that noble Lords will trust my assurance that the overall effect of the amendments is that the mobility component of PIP for people in care homes will remain on the same basis as it currently is for DLA, including for those in residential schools and colleges. I commend the amendments to the House and urge noble Lords not to press theirs.
Lord McKenzie of Luton
My Lords, as the Minister said, we have an amendment in this group that I do not propose to move as I accept it has been superseded by the Government’s formulation—this listening Government that we have on this issue.
It is to be welcomed that the Government have accepted the arguments that have been put forward over many months and from many quarters. As the Minister indicated, we should be particularly thankful to the noble Lord, Lord Low, for his leading on the independent—I would stress the importance of independent—review of personal mobility in state-funded residential care. The report does not just focus on the narrow issue of the availability of the mobility component of DLA—soon to be PIP—but on wider issues of the mobility needs of disabled people, the role of local authorities and care home providers, and the importance of mobility to disabled people’s rights. The clear conclusion in that review found no significant evidence of overlap in the support offered by the mobility complement of DLA and that offered by local authorities and providers. If the rights of disabled people are to be preserved, it is vital that DLA mobility and its successor under PIP are retained for people living in residential care. The report offered a very clear analysis, which I would suggest the Government, frankly, had no option but to accept. Perhaps we should leave unanswered the question of what the position today might have been if the initiative by Mencap and Leonard Cheshire had not been undertaken and the noble Lord, Lord Low, had not assembled such a knowledgeable team to produce this report.
We always give voice to the proposition that disabled people are the experts in their own affairs. It is just a pity that it took so long for their voices to be heard on this occasion, but we should welcome the fact that that has now happened.
Lord Low of Dalston
My Lords, I promised the Minister earlier on that if he just waited long enough, sweetness and light would break out. The fact that the noble Lord, Lord McKenzie, and I have our names on another amendment in this group enables me to tell him that we have now reached that point.
There is more joy in heaven over one sinner that repenteth than over 99 just persons who need no repentance. For that reason, I greatly welcome the Government’s decision to drop their proposal to withdraw the mobility component from those living in residential care. I have been given some credit for bringing this about with the review that I was asked to lead by Leonard Cheshire Disability and Mencap, but I think, in all honesty, I must disclaim this. Half of that is because I had a very good team working with me, supported by an extremely able and hard-working secretariat from both organisations; and half because I think Ministers, to their considerable credit, largely came to their decision of their own accord. Perhaps I may have provided a little cover for a U-turn—if so, I am glad to have been of service.
It would be tedious if I were to start recycling all the water that has now flowed under the bridge by rehearsing the considerations that led both the Government and my review to come to the conclusion that it would not be appropriate to withdraw the mobility component from those living in residential care. Probably the most significant of them, as has been mentioned, was that we could not detect any evidence of the double funding that was thought to exist and the Government could not either.
The Government can be proud of the fact that on this occasion, when faced with the evidence that did not support their initial conclusion, they had the grace to acknowledge the fact and reverse that initial conclusion. This is very much to be welcomed and a matter for congratulation.
Lord Freud
My Lords, I should take the opportunity to say thank you. It is lovely to have some sweetness and light after a few days where there has not been very much.
Baroness Hollis of Heigham
Has the Minister learnt from this that the best way to encourage more sweetness and light is to agree with the amendments from all around the House?
Lord Freud
There are some other constraints that I do not think I need to spell out. On the point made by the noble Lord, Lord Rix, we are picking up the same arrangements for DLA including those for residential schools and colleges. On that basis, I beg to move.
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“Hospital in-patients
(1) Regulations may provide as mentioned in either or both of the following paragraphs—
(a) that no amount in respect of personal independence payment which is attributable to entitlement to the daily living component is payable in respect of a person for a period when the person meets the condition in subsection (2); and(b) that no amount in respect of personal independence payment which is attributable to entitlement to the mobility component is payable in respect of a person for a period when the person meets the condition in subsection (2).(2) The condition is that the person is undergoing medical or other treatment as an in-patient at a hospital or similar institution in circumstances in which any of the costs of the treatment, accommodation and any related services provided for the person are borne out of public funds.
(3) For the purposes of subsection (2) the question of whether any of the costs of medical or other treatment, accommodation and related services provided for a person are borne out of public funds is to be determined in accordance with the regulations.”
Lord McKenzie of Luton
My Lords, I simply say that some compelling and moving personal circumstances have been advanced in support of the amendment and I hope that the noble Lord will feel able to accept it, or a version of it.
Lord Freud
My Lords, I first want to put absolutely on the record that we are not talking about the constant assessment of everyone. That is simply not how it is going to work. To the extent that there is concern about people being dragged in to face assessors every year, that is simply not how it is going to work.
When we talk about having another assessment for some people who have deteriorating conditions, noble Lords have to remember that they might have started on the lower rate of PIP and that in practice the assessment will move them to the higher rate at that time. DLA is an understudied phenomenon. It was studied by the previous Government in 2004-05 and it was found that £630 million was overpaid. That was not as a result of fraud; it was just that people no longer fitted the rather easier criteria of DLA that were in place when they applied, although we do not know where they fitted when they did apply. Just as worrying was the finding in that year that £190 million was underpaid. We want to make sure that the money goes to people in the right way in both ways.
Baroness Hollis of Heigham
My Lords, I was the Minister responsible for those reports at that time, and I have to say to him that they did not apply to people with lifetime conditions. People with lifetime conditions should get lifetime awards. Clearly, if someone deteriorates, they or their carer may apply further, but the information on DLA that the Minister referred to was either about people with fluctuating conditions or about people who had become better but had not realised that they might no longer qualify as a result, and so on. We had no argument with the need to continue to review DLA for people whose conditions may change quite rapidly over a period of time, particularly if they have been recovering from an accident, and so on. We are talking here about lifetime conditions in which it is therefore decent to give lifetime awards. I can assure the noble Lord that the statistics to which he referred do not refer to that group.
Lord Freud
As I understand the statistics, they refer to the whole group and we clearly need a system that we can apply to everyone, within which there will be groups with lifetime conditions. Let me come back to my main point, which was my concern about the underpayments. People with lifetime conditions deteriorate, and they need to be caught at the point of deterioration in order to be paid the extra funds they need to cope with the higher level of disability or higher inability to do things.
Lord Rix
I apologise for interrupting yet again. The point is that if, as I said, the annual health checks are taken for these people it can be reported medically. Certainly the carers can report on this. There is no question that if your son or daughter or your friend is obviously not receiving the amount they should be, it is up to you to get hold of the necessary officials and to inform them. Equally, the annual health checks should certainly—for people with a learning disability anyway, although I do not know about other disabilities —take care of any deterioration in condition.
Lord Freud
My Lords, let me go through the approach we are planning to take in PIP. It will involve a personalised approach and, in some cases, awards will be fixed for a short period—maybe one or two years—but in others they will be much longer and we are looking at awards that could be five or 10 years. That will depend on the circumstances of the individual, the impact of their health condition or their impairment and the extent to which they are able to live independently and participate in society. In many circumstances, this can change for better or for worse during someone’s lifetime and that will be different for different people. Therefore flexibility in award durations is key and will allow decision-makers to tailor awards appropriately. Again, we will be working with disability organisations and disabled people to develop the necessary guidance to support these decisions over the next 12 months. There will be many chances to get this absolutely right in the months to come.
I must quote the noble Lord, Lord Touhig—who is not in his place—who quoted Lorna Wing, one of the founders of the National Autistic Society, who said, “When you have seen one person with autism, you have seen one person with autism”, which is a phrase that will remain with quite a few of us in the years to come. Our flexible approach should allow us to provide the support to meet the variable needs people have. We also recognise that the system needs to deal with fluctuating conditions and that is one of the things we need to really lock down in consultation in the next 12 months.
Even where awards of PIP are made for a fixed term and periodic reassessment is required, it will be proportionate. Some assessments may only involve scrutiny of paper evidence and will not require face-to-face consultation. That will particularly be the case where there is considerable supporting evidence on which to base decisions. Conditions or impairments that are lifelong or degenerative will have such supporting evidence. Clearly, we are going to provide guidance on the duration of an award, including when an ongoing award would be appropriate and with what frequency that award would be reviewed. That will be evidence-based and we are committed to coproducing it with the appropriate experts in the field. I assure noble Lords that we are keen to involve disabled people and their representatives in this process. We are determined to get it right.
I have to make the point that lifetime awards were abolished in 2001 and only in very rare circumstances would they be reviewed. At the moment in DLA, we have indefinite awards that can be reviewed at any time. On the other point raised by the noble Baroness, Lady Hollis, on the national benefit review, the only group excluded from that is the awards made to the terminally ill.
I hope that I have reassured noble Lords on the issue. There is still a lot of work to be done in this area. We will look to organisations that help us, including those with which the noble Lord, Lord Rix, is associated. However, before I ask him to withdraw his amendment, I must make clear the technicality that the Government do not consider that Amendment 56 is directly consequential on Amendment 55, so they are separate matters. I ask the noble Lord to withdraw his amendment.
Lord Freud
I can certainly write to the noble Lord on this matter and see what we can do with the paperwork.
Lord Freud
(a) within 2 years beginning with the date on which the first regulations under that section come into force; and(b) within 4 years beginning with that date.”
Lord Freud
My Lords, the government amendments are intended to support our plans for a sensible, achievable and measured approach to the introduction of PIP and to report on the effectiveness of the assessment. I went into detail on what we are planning earlier this evening, so I do not need to dwell on it too long.
The first amendment will allow us to test the processes in a truly live environment and gives us the ability to control where those early new claims will come from. We are looking at which sites to use and developing the detail.
The second is designed to support our programme of examining how PIP works against the assessment. In summary, as I said, I propose to put into the Bill a statutory duty to publish two reports to Parliament—the first within two years from the time that PIP starts, the second within four years of that date. I also made the commitment earlier this evening, which I repeat, that if there is a need for a third review and report because of ongoing issues identified in the second review, we undertake to do that. That is a commitment to ensure that the assessment and its processes are working. We have slightly adapted the idea of doing that annually, which is what happens under WCA, because that has led to a slightly piecemeal approach. We think that two-year reviews will be better and we have learnt from that.
These are sensible and practical amendments. They are of course inspired by noble Lords in Committee, whose arguments convinced me. I have already put it on record that I think that Committee Members did a fantastic job and went through the Bill in an organised, diligent manner with astonishing energy. I have tried to take all the good ideas possible—some of them are not, but I am really pleased to be able to take this one.
The Government consider Amendment 56ZB to be directly consequential on Amendment 56ZA, but do not consider Amendment 70 in this group to be directly consequential on Amendment 56ZA. Despite that, I beg to move.
Lord Rix
My Lords, the Minister gave the shortest reply in Committee, interrupting my amendments, and I sat down within about three seconds of standing up. The noble Baroness, Lady Hollis—I have the name right this time—said that if the rest of the amendments could be taken at that speed, we would have got through the Committee stage much faster. I am absolutely delighted that the amendments have been modified but certainly accepted by the Government. I am very grateful.
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