Welfare Reform Bill

Lord Stoneham of Droxford Excerpts

Monday 23rd January 2012 Lords Chamber

[Baroness Drake]

The Bill sets the welfare rules for people who do not have a record of benefit dependency. In the national insurance contribution system, one is trying to design something that gives people a cushion. Sometimes it will be because they will be earning higher than the cap; on other occasions it is because of the nature of their accommodation. Either way, instead of having a cushion so that they can concentrate on getting back into work as quickly as possible, which it is clear most of them want to do, there is a danger that the immediate way in which the cap will operate means that they will have to take defensive measures to bring down their level of expenditure rather than putting all their efforts into finding a job.

[Lord Stoneham of Droxford]

My Lords, I have a lot of sympathy for the amendment of the noble Lord, Lord Best. It is largely about the transitional arrangements, on which we are still working towards having more information. It would be helpful if the Government could spell out exactly how they are going to deal with the problem of the flow after April 2013—because everyone will have a year’s transition. If they become unemployed after April 2013, they will in certain circumstances be hit by the cap. I think that there is some sympathy in the House for people who have not had a history of benefit dependency. We are not trying to achieve behavioural change with them. How are we going to help them back into work when they are suddenly faced with high housing costs and a cap being imposed on them?

In our debate on children, insufficient attention was given to the fact that one of the biggest problems is the differential in housing costs between certain areas. Fortunately, those who have the highest housing costs will normally be in areas where they are likely to get a job quickly, rather than in areas where housing costs are lower. Even so, it takes much longer to get a job these days, particularly in this market, than it has in the past. People need some help with that transition.

We need more information from the Government on the transitional arrangements, which we on our Benches are concerned remain imprecise. This particular issue highlights that.

[Baroness Hollins]

My Lords, I shall speak to Amendment 60A, which is perhaps slightly oddly grouped with the amendments proposed by my noble friend Lord Best. The amendment would prevent carer’s benefit claimants being subject to the proposed household benefit cap by exempting households including a carer’s allowance claimant and carers in receipt of the carer premium in universal credit.

There can be no doubt about the contribution made by carers in unpaid care—indeed, there was considerable discussion about this at a previous stage of the Bill and last week. Their contribution has been valued at some £119 billion by Carers UK and is of immeasurable value to the people they care for. Peers from all sides of the House have recognised this contribution with personal accounts of experiences of caring and moving stories from families struggling in what are often very difficult circumstances.

Carers’ contribution and the challenges they face set them apart as particularly deserving of support from the benefits system and as clear candidates for exemption from a cap which the Government have said is designed to penalise individuals who are failing to play a full part in society.