Welfare Reform Bill

Lord McKenzie of Luton Excerpts

Tuesday 17th January 2012 Lords Chamber

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

My Lords—

[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.

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[Baroness Wilkins]

My Lords, I, too, put my name to the amendment. I declare an interest as someone who was awarded mobility allowance for life and was then moved to DLA at its inception. I have continued to receive this past pension age. I strongly support the amendment, which would put in the Bill the assurance that awards of PIP will be retained after retirement age, as is the case with DLA. When the amendment was discussed in Grand Committee the Minister tried to sound reassuring, but unfortunately the Government are not trusted.

We know that all Governments prefer to use regulations, which give them more scope and power. However, to quote Sir Bert Massie, the chair of the much lamented Disability Rights Commission, the difference between now and 1992, when the DLA was introduced, is that this Government are playing with false cards. If the Government are sincere in their assurance that PIP will be retained after retirement age, why will they not behave transparently and place the commitment in the Bill? Clause 82 only grants a power. The amendment of the noble Lord, Lord Low, imposes a duty. There is a massive difference.

Sir Bert fears, as I do, that the Government are planning to use the payment of post-retirement PIP awards as part of the Dilnot package for social care. On the argument about cutting the DLA mobility component for people in residential care, they will discover what they regard as double provision, and PIP will be lost to pensioners. In his response in Grand Committee, the Minister almost said as much when he stated:

“By setting out these provisions in regulations we can ensure that the legislation can be adapted in response to any future changes in the social care system which might affect pensioners”.—[Official Report, 16/11/11; col. GC 305.]

Given the demands of responding to the Dilnot commission report, would your Lordships trust the Government not to use the flexibility of regulations to devote the entire PIP budget for over-retirement age to social care?

DLA is an essential contribution to so much more than our social needs. Throughout the passage of the Bill I have tried to convey the enormous complexity of disability and the very wide range of extra costs with which we are faced. DLA gives the lie to the false dichotomy that the Minister always draws between benefit recipients and taxpayers. My DLA has enabled me to be mobile and be employed. It has enabled me to be a taxpayer all my life. As I have aged, my mobility needs have become considerably more expensive. I could not have contemplated buying that “nice bit of kit”, as the policemen outside the Peers’ entrance term the considerably adapted car that I can drive from my electric chair, without the assurance that my DLA is for life. Future PIP recipients should have the same reassurance and I ask noble Lords to support the amendment.

[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.

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[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 Rix]

My Lords, as Mencap has just been mentioned, I would very much like, as president of Mencap, to thank the Minister and his colleagues for accepting this situation and the Low report. I congratulate my noble friend Lord Low on his splendid research into this problem. It is wonderful to hear the Government’s change of tack. I notice that the Minister mentioned hospitals, but I was busy chatting to the noble Baroness, Lady Hollins, at that moment. Did he mention children? I was not quite sure what the position was going to be regarding children—over 16 and under 16—in regard to this mobility component. However, apart from that, we are very satisfied in Mencap. I would like to thank, both personally and on behalf of Mencap, the Minister and his colleagues for this change of heart.

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[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.