Welfare Reform Bill

Lord Skelmersdale Excerpts

Monday 14th November 2011 Grand Committee

[Baroness Hollis of Heigham]

My Lords, in the wording in proposed new subsection (2), all that comes close is in the regulations referring to capital being deemed to be income and income being deemed to be capital. Here we have something that has to be treated as being done is though it would have been done had it not been for the fact that it was not done. As a basis of legislation in future, I wonder whether the Minister would welcome such an approach from the Opposition.

[Lord Skelmersdale]

My Lords, the members of the opposition party have been waxing lyrical in this particular case. With all the experience of his advisers behind him, can my noble friend say whether such an accident—and an accident it most certainly is—ever occurred during the course of the last Labour Government?

[Lord McKenzie of Luton]

Before the Minister responds to that, perhaps I may add to the list of questions. A moment ago he said that these were fair and targeted proposals, but can he expand on that proposition for us? The increase in the taper rate that affects some people runs to the tune of £780 million and the disability living allowance changes to the gateway amount to a withdrawal amounts to £1.4 billion from disabled people. How does he deal with that juxtaposition? How does he evaluate it? What is the basis for saying that those are fair and targeted? The Minister said it is always right to remind us about the inherited deficit. Perhaps I could say that it is always right to remind Members opposite that a financial crisis has hit every economy around the world—certainly all the major economies; when the last Government left office, the economy was growing and unemployment was going down.

--- Later in debate ---

[The Earl of Listowel]

My Lords, I support the amendment by the noble Baroness, Lady Campbell of Surbiton. I listened with particular interest to the analysis of the media representation of people who are disabled made by the noble Baroness, Lady Wilkins. What she said reminded me of the terrible force of envy. Perhaps it is not recognised enough, but envy is an enormously powerful motivator in human societies. To my mind, it seems to originate in early childhood. When new younger siblings arrive as babies into families, sometimes they are harmed by their older siblings who feel deeply envious of the intruder coming in. Envy can also arise out of feelings of competition between the love of the child for the mother and the father coming in. What I am suggesting is that these feelings of envy are laid down in us very early in our lives, and they can easily be stirred up again in adulthood. It is therefore an extremely important issue. Indeed, in an organisation one will often see those in one part of it seeking to starve those in another because they do not want to see that other part getting more than they get. In a family, the parent must send out clear signals to the child that they are still important and wanted, but that there is a new arrival to whom they have to give more attention for a while. Likewise, those in authority in society have to send out a signal to the wider society that some people need additional support and on some occasions resources, and that is the way it is. It worries me that signals appear to have been sent out indicating that a particular group is being over-favoured. That is quite wrong, and therefore this change of name might be important in that respect.

[Lord Skelmersdale]

I am sure that the eloquent and moving speeches we have heard today will cause my noble friend the Minister to think very hard indeed. I accept the need for a change in the name of the benefit. “Personal independence payment” is wrong for all the reasons that have been advocated. However, there is a problem. This is a totally new benefit for disabled people, but I believe that having “allowance” in its name is a mistake as it is too close to “disability living allowance”.

While listening to the arguments today, I came up with my own preferred formulation—“personal disability costs payment”. It is all of those things, and it is a payment. When my noble friend thinks about these issues—I am sure that he will not give us a plus or minus answer today; at least, I jolly well hope not—I hope that he will consider that suggestion.

[Lord McKenzie of Luton]

My Lords, the proposition before us today is that we change references to “personal independence payment” and replace them with “disability living costs allowance”. We have heard strong and compelling arguments to support that proposition and I am happy to give support from the opposition Front Bench. I do not propose to offer an alternative formulation, but I understand where the noble Lord, Lord Skelmersdale, was coming from. It seems that the reasons that have been articulated today are overwhelmingly right. They are about clarity; about sending out the right signals; about not conceding issues to the press; about not allowing the word “disability” to be airbrushed out of the system; and about trying to combat some of the fears about the way that the proposals have been brought forward.

The DLA has its origins in 1970 when attendance and mobility allowances were introduced for severely disabled people. It was introduced in 1992 under the guidance of the noble Lord, Lord Newton. I am delighted that he is regaining his self-confidence—I cannot imagine him without it. It was introduced because the then system was not meeting the needs of some groups of disabled people; for example, people with learning disabilities and visual impairments. The noble Lord, Lord Low, described DLA as now having iconic significance.

As the impact assessment produced for this Bill indicates, DLA is a benefit which provides a cash contribution towards the extra costs of needs arising from an impairment or health condition. Because it is not practical to measure each individual’s expenditure and therefore entitlement, entitlement has to be based on proxies for extra costs, care and mobility. These proxies were used at the time because research showed that they were the greatest sources of extra cost. So a decision about whether an award is made is not on the basis of an individual’s cost, but on the severity of their care and mobility needs.