Welfare Reform Bill

Lord Kirkwood of Kirkhope Excerpts

Tuesday 17th January 2012 Lords Chamber

[Baroness Meacher]

My Lords, I will speak briefly to Amendment 50ZA and will refer to Amendment 50ZC. I very much applaud the aims of the noble Baroness, Lady Lister, in seeking to have publication of information about the allocations of money to local authorities for the purposes envisaged. She presented her case very powerfully as always.

I want to thank the Bill team for a most helpful conversation. I understand that the £36 million allocated for crisis loans could be spent by local authorities on grants or payments in kind as well as loans. I find that very encouraging. I for one am very suspicious of loans for people attempting to live on the breadline—they can build up even greater problems for the future—other than when provided for budgeting purposes, which I know is very much what the Minister has in mind. If, for example, households receive half their monthly income half way through the month as a loan only to be repaid at the end of the month, that would go some way to ameliorate what would otherwise, for me anyway, be a highly risky set of proposals.

Amendment 50ZA, tabled by the noble Baroness, Lady Lister, would provide information on whether the funds had been spent by local authorities on the purposes for which the Government are allocating them—we all understand that is what they are being allocated for. I have some concerns that, even if the Minister concedes this amendment, it remains true that there is no statutory requirement for local authorities to provide some form of assistance to households in crisis. Many Social Fund crisis loans are sought because mothers, often single mothers, have no cash for the electricity meter—apparently, this is really the dominant issue confronting people who seek these loans—with several days to go before getting any more benefit and, of course, the children are cold and the mother cannot even make a hot meal for them without some form of electricity. I understand that the idea of the settlement letter is to spell out the purposes for which the £36 million should be used. I applaud that. I also understand that the DWP plans to follow up a representative sample of local authorities after one year to find out how they have spent the money.

My concern is that over time the settlement letter might be redrafted—heaven forbid that Ministers even change from time to time—and, if local authorities report after one year that unfortunately the £36 million had to be spent on other matters, it seems to me that there is no way of ensuring that these households in crisis actually have funds allocated to those needs. That is actually my concern. We need to know that there will continue to be a system for dealing with these household crises, particularly for families with children. We do not want these children disadvantaged.

I understand the logic of making the £178 million for community care grants and crisis payments available to local authorities, which are no doubt closely involved with many of these families—certainly, if they are not involved, they should be. The aim, as I understand it, is that these funds need to be brought together with other forms of assistance for these families in order to generate greater value for money. At the moment, the Social Fund is a national system that operates at arm’s length from other services. I recognise that this has some disadvantages. The concern is that every local authority is likely to respond differently to this challenge. How can we be sure that households in crisis will have somewhere to go for help, as I have already said? The Government are already committed to the settlement letter and review after 12 months, again as I have already alluded to. I welcome those commitments very strongly. They are a start, but they are a weak provision in this very important area of policy.

I hope that the Minister will take seriously the need for a more robust system to underwrite what I understand to be the Government's intentions. The amendment tabled by the noble Baroness, Lady Lister, is one option, but whether or not the Minister accepts Amendment 50ZA, perhaps he will consider incorporating in regulations the requirement that the funds envisaged for resolving household crises are indeed allocated to that purpose. I understand that how local authorities want to do that is a matter for them, but I think that ensuring that the funds are focused on that issue merits a sentence in the regulations. That would certainly make a much stronger support for the provision and give an assurance to the House that we have not lost it.

I would be very grateful for the Minister's serious consideration of the amendment. I should mention that I will not move Amendment 50ZC at this stage.

[Lord Kirkwood of Kirkhope]

My Lords, I make a brief intervention to support the amendments, as I did in Committee. Clause 69 is very important for a relatively small but very vulnerable group of people. The discretionary Social Fund has been part of the furniture, if you like, of social security for a long time, and during the period that it has been deployed, people have been able to take advantage of it to save the public purse considerable sums. One of the main purposes behind the discretionary Social Fund is to prevent people being institutionalised in various ways, and it has done that very successfully. There is cross-party agreement that reform of the Social Fund is long overdue, but to abolish or decentralise it like this raises many questions, which remain unanswered. I hope that the Minister will take the opportunity to try to assuage the concerns that some of us continue to have.

First, the process that will now unfold is less than clear to me. Reading the penultimate subsection of Clause 69, I think that an affirmative resolution will be required to give effect to the power that the Government are seeking in the clause, but I should like reassurance about our ability to have ongoing discussion about how the Social Fund Commissioner’s assets and the apparatus that we have in place at the moment will be dismantled in a way that makes sense, and that the allocation formula for the disbursement of these moneys is carefully considered and consulted on, because the discretionary Social Fund spend obviously has a very spatial dimension to it because some communities need it much more than others. We need to be careful about how we make that decision in the first instance. That is another reason why Parliament, by virtue of affirmative resolution or statutory instrument, must be continuously approached for advice and reassurance. The sample of local authorities being lined up for the welcome review process needs to be carefully considered because of the point I have just made: the decentralisation process will affect some dramatically differently from others.

I still have serious misgivings about this. If we are going to do this, we need to be really careful that we are getting it correct in the first instance and that the client group who have relied on discretionary payments from the Social Fund in crisis situations are not left wanting, completely abandoned and without access to liquid cash in circumstances where they find it difficult to survive.

[Lord Boswell of Aynho]

My Lords, I wish to raise briefly the question of whether to centralise payments to people in extreme difficulty or whether to leave that to the discretion of local authorities or, as was originally suggested prior to the First World War, friendly societies, or others. That idea has subsisted for at least 100 years and I think it will continue. I am generally supportive of the localism agenda and I can see material benefits in devolving this opportunity to local authorities. However, the amendments raise two issues that need a little reflection.

The wider question, which has been touched on by a number of noble Lords, is whether this money, which was intended for people in severe difficulties, will continue, albeit with local administration, to be applied to such people in general. I think that on the whole the Government are facing in the right direction here, but I look forward to the Minister’s assurances on it.

The specific twist that I want to add was prompted by something that the noble Baroness, Lady Lister, said about whether there should be a local connection. Clearly there is the subtext that there could be some discrimination in favour of the local boy or girl against someone from outside, someone who was felt to be in some sense the architect of their own distress or someone in some way morally unworthy. I do not want to go on about that now, but we can see the argument developing.

I should like the Minister to consider—and it may be helpful to him to do so—the fact that since the passage of the Housing Act some 16 years ago, we have had all the equality duties, including the public sector equality duty. Certainly local authorities, in exercising the discretion being offered them, will have to operate within the framework of that duty. I wonder whether that is indeed helpful in obtaining the assurances that I think we want with regard to making sure not only that the money goes where it is intended to go but that it goes to the people who need it most within that category of difficulty, rather than being siphoned off to people who are more acceptable or who come more within the interest of the local authority concerned.

--- Later in debate ---

[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 Touhig]

My Lords, I do not intend to detain the House long, because Amendments 50B, 50C and 50D were debated at some length in Committee. I attempted to withdraw Amendment 50A yesterday, but the gremlins crept in and the only thing that has been withdrawn is my name—the amendment still appears on the Marshalled List.

With Amendment 50B, the noble Lord, Lord Addington, has once again made a very powerful case in support of the need for properly trained assessors. In particular, all assessors should have an understanding of and training in autism if they are to recognise and understand the complex cases they will have to deal with. It has been said a number of times—I make no apology for repeating it here, because it is important—that when you have seen one person with autism, you have seen one person with autism. This is why the training is so important. A knowledge of autism and possessing the right skills to assess the needs of an autistic person are essential in making any decision about the appropriate level of financial support that that person might need. I believe that the Minister accepts this point of view.

Following the Committee stage, a number of other noble Lords and I had a very useful meeting with the Minister and his colleague Maria Miller MP, and we are grateful for that opportunity to exchange views in a less formal situation. One point from that discussion, which was touched on today by the noble Baroness, Lady Browning, did concern me—the point about the qualifications of the person carrying out the initial assessment. One of the Minister’s officials told us at that meeting that the initial assessments would be carried out by an occupational therapist. Will this be the case? That seems a very narrow skill base from which to draw the expertise for any kind of wider assessment, and it leaves me, for one, with the impression that the assessment is aimed primarily at getting people into work and not at trying to understand and support them if they are not able to work. Such a situation would fly in the face of the well-argued case that assessors should have specific training in all mental, intellectual and cognitive disorders, as advocated by the amendment. I hope the Minister can allay my fears.

I turn to Amendments 50C and 50D, in my name and that of my noble friends Lady Healy of Primrose Hill and Lord Wigley. The amendments concern face-to-face assessment and would, if accepted, exempt certain categories of people from the process of continuous reassessment where sufficient medical and other expert evidence existed to demonstrate that their condition would not improve. I return again to my concerns about people with autism. Autism can be summed up in this way: autism is for life. Any reassessment must accept this fact before progress can be made. The Minister made it clear, at Second Reading and in Committee, that the Government did not believe that a face-to-face assessment would be the right course to follow in all cases.

At our meeting, both the Minister and his colleague, Maria Miller MP, gave a strong impression that the Government would support a tiered approach to assessment in such cases, as advocated by the National Autistic Society and others. In practice, this tiered approach would allow for written assessment from professionals to be considered and a decision to be made, on that basis, about whether a face-to-face assessment was appropriate or necessary. I will not test the patience of the House any longer. I look forward to the Minister’s response and hope he will have something positive to say about a tiered assessment.

[Lord Kirkwood of Kirkhope]

This is an important debate because existing relevant medical evidence is absolutely essential to getting this test—and the whole process—delivered as accurately and as sweetly as it possibly can be. This is true in two separate directions. First, getting access to and active consideration of existing relevant medical evidence will make the examination—if an examination is needed—much more satisfactory for all concerned. As has already been said, it will reduce appeals—and it will minimise costs for that reason if for no other.

It has a second important function which I hope the Minister will be able to spend some time on. If the Minister could help us understand better how desktop assessments can obviate face-to-face assessments, he could diminish the fear factor that clearly exists, rightly or wrongly, about what will face people who might be invited to these face-to-face tests in future, and that would be enormously helpful. I am aware, having followed this for some time, that the DLA provisions which we put in the primary legislation in 1992 were, in some respects, too prescriptive. I understand perfectly that assurances can be made and put into regulations and put into medical contracts as well.

I am in the market for voting for this amendment if we do not get the kind of response that I hope for. However, there are ways of delivering the assurances that are being sought by our correspondents and the disability community. It would be helpful if the Minister could say a word about the contract. I understand that the contract is out to tender and it is too early to say who is interested, but people are drawing conclusions from the Atos Healthcare experience. I do not think that that experience would necessarily be repeated in the future if the terms of the contract are drawn sufficiently clearly. In that contract, if not in regulations or primary legislation, we should be saying clearly that on cause shown, if there is heavyweight medical evidence that can be addressed at a desktop level, those are circumstances where it should almost be a default that people will not be subjected—if that is the right verb—to these assessments.

I share a concern about the quality and experience of the assessors. I have a capacity issue as well as a quality issue about that. It does not matter if you get the best contract in the world and the most enthusiastic prime contractors who come in and promise, hand on heart, to do the best they can. The professionals with the right qualifications and experience to do this work may not be out there. If that is the case then we need to be very careful. There is not enough emphasis in the United Kingdom on this kind of medicine, and we should be promoting with our medical colleagues a far higher degree of interest in and development of the specialist skills that medical professionals need to do these jobs in order to make this process a success.

I have here a case history that caught my imagination. A 25 year-old young man is undergoing his first major reassessment of his problems as an adult. His assessments will involve MR scans, examination by neurologists, neurogeneticists, neurophysiotherapists and a specialised occupational therapist. He has scattered neuromotor difficulties. Although I trained as a pharmacist a long time ago, I could not even find on the internet what neuromotor difficulties actually amount to, but it is clearly a serious condition that is being addressed by experts at a tertiary, if not international, level by a centre of excellence in a region in the United Kingdom. The young man has written to say that he is now fearful that he will have to address the circumstances of these tests. It would be completely daft and stone mad that we cannot say something now that is clear. There may be technicalities with the legislation, and perhaps I could be persuaded that such provisions should not be in primary legislation, but we absolutely need some clear, copper-bottomed assurances from the Minister that a person in those circumstances would not face such difficulties.

I hope that the Minister will understand that this is an important amendment and that he will take as much time as he can to tell us as much as he knows about how these processes will work and where in the legislative process—whether by regulation or primary legislation—we can be assured that we will get some protection for the kind of young person to whom I alluded.

[The Countess of Mar]

My Lords, I have difficulty with Amendment 50ZR. I fully endorse the fact that medical evidence is needed, but some people with ME have not seen a doctor in years, simply because there is no treatment for them. If the department is expected to depend a lot on medical evidence for corroboration of the illness, I do not know how people with ME are going to cope. That really disturbs me and the issue needs to be examined.

I fully support the amendment of the noble Lord, Lord Addington, on training. People with ME have cognitive difficulties as well as all their other problems, and these are not very well understood. I give him my heartfelt support, and I hope that the noble Lord will take on board the fact that some people cannot get current medical evidence to corroborate their illness.

--- Later in debate ---

The changes from DLA to PIP could cause a major upheaval in the lives of millions of people, many of them extremely vulnerable. We do not argue against change, but for a precautionary approach in introducing that change. This should include an independent report before the start of change, focused particularly on the assessment process, trials before general rollout and, above all, meaningful engagement with disabled people, because they deserve no less.

[Lord Kirkwood of Kirkhope]

The noble Lord is an experienced hand and has made a very interesting speech, but it would help the House enormously if he could be tempted to give an assessment—if he was the Minister facing Amendment 50—of how long he thinks it would take to discharge the responsibilities contained in the amendment.

[Lord McKenzie of Luton]

It is clear that the Government are going to have to do some of this anyway, but in terms of an overall time period it is clearly a matter of some months rather than weeks, but not a matter of years. It depends on the determination and effort that the Government bring to bear. They have the levers and the resources to cause this to happen quite quickly, I would suggest, but there has to be full engagement with disabled people for it to be meaningful. This does not mean endless delay in the introduction but it does mean a real level of reassurance before we embark upon this very significant change.