Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2014

Debate between Lord Wigley and Lord Freud

Monday 17th March 2014 Grand Committee

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

My Lords, in moving that the Grand Committee do report to the House that it has considered the Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2014, I will also speak to the draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2014. These two regulations increase the lump sum amounts payable under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 and the mesothelioma scheme set up by the Child Maintenance and Other Payments Act 2008. These new amounts will be paid to those who first satisfy all the conditions of entitlement on or after 1 April 2014.

These two schemes stand apart from the main social security benefits uprating procedure and there is no legislative requirement to review the level of payments each year. None the less, I am happy to increase the amounts payable for 2014 by CPI—that is, by 2.7%, which is the same rate as that applied to some social security disability benefits and the industrial injuries disablement benefit under the main social security uprating provisions which were recently debated in the House.

The Government recognise that people suffering from diseases as a result of exposure to asbestos or one of a number of other listed agents may not be able to bring a successful claim for civil damages in relation to these diseases. That is mainly due to the time lag between exposure and onset of the disease, which could be as long as 40 years. Therefore, we fulfil an important role by providing lump sum compensation payments to people suffering from certain asbestos-related diseases through these two schemes. These government schemes also aim to ensure that sufferers receive compensation while they can still benefit from it, without first having to await the outcome of civil litigation. Improved health and safety procedures have restricted the use of asbestos and provided a safer environment for its handling. However, the historic legacy of the common use of asbestos is still with us. That is why we are ensuring that financial compensation from both these schemes is available to those affected.

I will briefly summarise the specific purpose of each scheme. The Pneumoconiosis etc. (Workers’ Compensation) Act 1979—for simplicity I shall refer to it as the 1979 Act—provides a lump sum compensation payment to those who suffer from one of five dust-related respiratory diseases covered by the scheme and who are unable to claim damages from employers because those employers have gone out of business and who have not brought any action against others for damages. The five diseases covered by the 1979 Act scheme are diffuse mesothelioma, bilateral diffuse pleural thickening, pneumoconiosis, byssinosis, and primary carcinoma of the lung if accompanied by asbestosis or bilateral diffuse pleural thickening.

The 2008 mesothelioma lump sum payments scheme was introduced to provide compensation to people who contracted mesothelioma but were unable to claim compensation for that disease under the 1979 Act, perhaps because their exposure to asbestos was not due to their work. The 2008 scheme means that payments can be made quickly to mesothelioma sufferers at their time of greatest need. Under both schemes, a claim can be made by a dependant if the sufferer has died before being able to make a claim.

Payment levels under the 1979 Act scheme are based mainly on the level of the disablement assessment and the age of the sufferer at the time that the disease is diagnosed. The highest amounts are to those diagnosed at an early age and with the highest level of disablement. All payments for mesothelioma under the 1979 Act scheme are made at the 100% disablement rate—the highest rate of payment. Similarly, all payments under the 2008 scheme are made at the 100% disablement rate and are based on age, with the highest payments going to the youngest sufferers.

I would like to give some detailed figures on claims and moneys paid out under the two schemes before us today. In the last full year, April 2012 to March 2013, over 3,500 payments were made in respect of both schemes, totalling just over £53 million.

I know that the occurrences of mesothelioma are of particular concern to Members, with the number of deaths from mesothelioma in Great Britain continuing to rise. In 1968, 153 people died from mesothelioma. By contrast, over 2,000 deaths occur each year from that disease now. Mesothelioma is a fatal disease caused almost exclusively by exposure to asbestos. Those diagnosed with mesothelioma usually have a short life expectancy—generally between nine and 12 months—with the sufferer becoming severely disabled soon after diagnosis. This rise in the number of deaths reflects the long latency period of the disease, which can take decades to become apparent. Latest available information suggests that mesothelioma deaths will continue to increase to a peak of around 2,500 in 2018, and then start to fall—thus reflecting a reduction in asbestos exposures following its peak use in the 1960s and 1970s. Just under a half—47%—of payments made under the Government’s 1979 scheme are in respect of mesothelioma.

I remind noble Lords that immediately following this debate we will be debating the Diffuse Mesothelioma Payment Scheme Regulations 2014, and I would ask that any questions about that scheme, and how it interacts with these older schemes, be raised in that debate.

These regulations increase the levels of support through the government compensation schemes. I am sure that we will all agree that, while no amount of money can ever compensate individuals and families for the suffering and loss caused by mesothelioma, those who are suffering rightly deserve some form of monetary compensation. The government schemes go some way to ensuring sufferers receive it as soon as possible. It is a requirement that I confirm to the Committee that these provisions are compatible with the European Convention on Human Rights, and I am happy to do so. I commend the increase of the payment scales and ask for approval to implement them. I beg to move.

[Lord Wigley (PC)]

My Lords, I shall certainly follow the Minister’s suggestion that we leave consideration of the new mesothelioma provisions until the next debate, which makes a lot of sense. I shall want to contribute then, if I may. Perhaps I may ask a couple of questions particularly on the regulations made under the 1979 pneumoconiosis Act. In doing so, I welcome, of course, the upratings that are taking place. They should not lose their value as time goes on.

As the Minister and others may know, I have an interest in the 1979 scheme, particularly from the point of view of slate quarrymen. The issue was not, of course, related only to slate quarrymen; it also affected those working in the kiln and cotton industries, and a number of other conditions came under the purview of that Act. Over the period since 1979 there was initially a surge of applications, which reduced in 1986 to just 95. A decade later, in 1995, this had built up to 900, and was running at a level of 1,000 to 2,000 by 2002-03. I believe that some of the cases leading to that surge arose from coal-mining pneumoconiosis, which had not been covered under the coal-mining scheme—there was originally a tripartite scheme between the NUM, the NCB and the Government, in 1975, for that purpose.

I have been trying to ascertain the breakdown of the figures since 2002-03, and would be grateful if the Minister would give some undertaking on this. My colleagues in the House of Commons have been unable to get from the House of Commons Library the breakdown with regard to industry and to the regional spread of those cases. I imagine that the information must be available in the department because it was available 10 years ago. I hope that it might be possible, by letter or some other way, for this to be disclosed. It would be interesting to see how the pattern has changed from the point of view of the sustainability of the scheme itself, which is an important factor.

The second thing I want to ask the Minister is the breakdown of the figure that he has just given us for 2012-13. He mentioned 3,500 payments and £53 million. That figure covered both the 1979 scheme and the 2008 mesothelioma scheme. Presumably there is again some breakdown between those two at the very least, and perhaps the Minister is in a position to give it today, so we can see where this is going. There will be questions about the interplay of the schemes, but I am content to leave those until the subsequent debate.

Disabled People: Mobility Benefits

Debate between Lord Wigley and Lord Freud

Monday 2nd December 2013 Lords Chamber

[Lord Wigley]

To ask Her Majesty’s Government what assessment they have made of the number of disabled people who have had access to adapted cars removed as a result of changes to their entitlement to mobility benefits.

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

My Lords, no such assessment has been made. The controlled approach to the reassessment of recipients of disability living allowance began only on 28 October 2013. There is not enough information yet to assess the effect this phase will have on Motability customer numbers, including those with adapted cars. In addition, the vast majority of reassessments will not start until October 2015.

[Lord Wigley (PC)]

My Lords, does the Minister recall that exactly 12 months ago his department estimated that by 2018 there would be 428,000 fewer enhanced mobility claimants aged 16 to 64 on the new PIP system, compared with the old system? Does he appreciate the anxiety this has caused to those dependent on these payments to finance their Motability vehicles? Will he update the House on the latest position, and do everything in his power to lift the threat felt by those people whose degree of disability almost certainly will mean that they should not lose their Motability entitlement but who, until they know, will inevitably fear the worst?

[Lord Freud]

My Lords, I emphasise that we are looking to create a thorough assessment under PIP that is balanced and also looks after some of the gaps in DLA, particularly concerning people with mental health problems, who have not done as well under DLA as they should do under PIP. With regard to the concerns about the transition, we are working with Motability to put together a package of £2,000 per person for those who move off the enhanced DLA but not into PIP so that they can purchase a second-hand car at the appropriate time.

Mental Health: Cost of Living Support

Debate between Lord Wigley and Lord Freud

Thursday 7th November 2013 Lords Chamber

[Lord Freud]

My Lords, on the process of getting PIP, we have been taking advice from people with an interest, particularly the autism group, which I know the noble Lord will be interested in, and we have been adjusting our PIP application process to reflect the observations and points made by those groups.

[Lord Wigley (PC)]

My Lords, does the Minister accept that if people in those circumstances can find work, fine—but if they cannot, they need all the help they can get to access what they have a right to? Should we not therefore ensure that the citizens advice bureaux, which play a key role in these matters, have the resources they need to help such vulnerable people?

[Lord Freud]

My Lords, helping people with mental health problems and similar conditions is, clearly, not easy. The main problem is that they face a huge variety of problems. We need to help them as much as we can to negotiate their way through a complicated system. I have taken a huge interest in this issue myself, and in the most important area in this respect. We now have a study on what we are calling psychological well-being and work, to look at how we can help people negotiate their way into the workplace, with adequate health support on the way.

Mesothelioma Bill [HL]

Debate between Lord Wigley and Lord Freud

Wednesday 17th July 2013 Lords Chamber

[Lord Freud]

My Lords, I know that the noble Lord does not want me to go into detail, but I can commit to going on working with him on this issue, which is very technical. If we work out that something needs to be adjusted, we will have time to do it in the other place.

[Lord Wigley]

I express my appreciation for the increase from 70% to 75%, although a lot of us would have liked to see 100%. I would like clarification on the new matter that the noble Lord introduced with regard to the review. The mechanism for this might be introduced in another place. Will he shed some light on the means by which any changes could be implemented? Will order-making procedures be available, or will it be a matter of going back to primary legislation whenever such changes are needed in the light of developments?

Mesothelioma Bill [HL]: Impact

Debate between Lord Wigley and Lord Freud

Tuesday 25th June 2013 Lords Chamber

[Lord Freud]

My Lords, the point about research is that it is pretty complicated, one reason being that the Medical Research Council is constrained by the quality of the research proposals presented to it. There is a bit of a chicken-and-egg situation going on, as I see it, and I am working with my noble friend Lord Howe and the British Lung Foundation to break that situation. We are hosting a seminar on the importance of mesothelioma research shortly to try to stimulate the proposals for funding. As for the second aspect of the question, clearly there has been much debate on the exact level of compensation. In the end, this has been a very complicated and intricate deal to make sure that we can get good sums of money. We are getting an average of £87,000 a head to people who suffer from this terrible disease who have not been able to find any compensation whatever.

[Lord Wigley]

My Lords, those who have suffered industrial lung diseases get the full level of compensation under the 1979 pneumoconiosis Act, when they cannot identify their former employers to sue them, so by virtue of what reasoning should there be a scaling down for those who suffer from mesothelioma and cannot identify their insurance policies? They suffer equally and have great need of those funds.

[Lord Freud]

My Lords, I know that everyone in this House would agree with the proposition that we want to get as much money as we possibly can to mesothelioma sufferers, particularly those who, through no fault of their own, have not been able to trace the insurer that should be paying them the employers’ liability compensation. The reality is that we cannot trace the insurer in roughly 10% of cases. We are trying to make sure that we trace as many as possible. They will get the full amount, and then get a payment—not quite as much as I would want, but a safe, sustainable payment, for this group of people, and that is a lot better than the nothing they are getting currently.

Mesothelioma Bill [HL]

Debate between Lord Wigley and Lord Freud

Monday 10th June 2013 Grand Committee

[Lord Freud]

My Lords, I am grateful for those observations. I am sure that we will have a chance to discuss this in more detail later. I now move to—

[Lord Wigley]

Before the Minister moves on, is he not going to respond to the point made by his noble friend, who has shown that there were cases, which is totally at variance with the lead the Minister gave to the Committee?

[Lord Freud]

My Lords, we could spend all day on one point. I am just trying to get a response on the record. We will have another chance to go through this again. I was making a clarification.

I turn now to the query of the noble Baroness, Lady Sherlock. When discussing the proposed start date of eligibility for this scheme, we talked about insurers being able to reserve against that liability from that date. The noble Baroness drew attention to the fact that the levy will be an annual running cost, not a liability to reserve against. She is of course correct: the payment is not the same as a liability. However, the impact is much the same. The levy is an additional cost to insurers that needs to be factored into their business plans. To do this, they need to have confidence in the timing and amount of the cost to be incurred. Therefore, on 25 July 2012, when the intention to set up a payments scheme was announced, this provided a sufficient level of confidence for insurers to start to factor the levy into their business plans for 2014. I ask the noble Baroness’s forgiveness for my incorrect use of terms, and for her recognition that this does not change the shape of things in this case.

--- Later in debate ---

[Lord Wigley]

I am grateful for being curbed. I support the amendment. It will lead on to Amendment 32, which also addresses these issues, so I may come back to them at a later stage. It is immensely important that this body is seen and respected by those outside the industry as being at the very least impartial with regard to the way things will be conducted. It must have the confidence of the beneficiaries, their families and everyone else involved. This amendment, together with Amendment 32, which we will consider in a moment, needs to be taken on board, if not in this form of words then at least in a form of words that addresses what could be a weakness in the Bill.

[Lord Freud]

I thank the noble Lord and the noble Baroness for their amendments. I assure them that all diligence will be observed during the setting up and monitoring of the administrative body. Irrespective of the background of the scheme administrator, the body will have to administer the scheme in a way that satisfies the requirements of the legislation and apply scheme rules that will ensure that the administrator is sufficiently tied to a set of rules as determined by the Secretary of State and not by the insurance industry. What matters is not whether the body administering the scheme is formally independent of the insurance industry but whether it is controlled by the arrangements put in place by the Secretary of State and whether it is properly monitored. The arrangements will achieve that.

The insurance industry is setting up a company to meet the requirements of the scheme rules. There would be time advantages to using such a body, with it potentially being able to make payments more quickly than if the Government had to establish a body. However, any body with which the Secretary of State makes arrangements will be subject to the standard call-off contract that gives us the power to change a supplier should it fail to operate as required.

I make it clear that we will undertake due diligence in ensuring that whoever ends up delivering the scheme does so in compliance with the rules that we set out. If any body does not meet our requirements, we will not make arrangements with it, and, if it fails to deliver, we will make arrangements with another one. I will respond to Amendment 32 when the noble Lord moves it. It may be relevant, and I will make a further statement at that point.

--- Later in debate ---

[Lord Wigley]

My Lords, I will speak briefly in support of this amendment for the same reason: to try to get clarification with regard to the interplay with the 1979 scheme. I raised this matter at an earlier stage and would be very interested in some clarification from the Minister.

[Lord Freud]

I thank the noble Lord and the noble Baroness for these amendments, which I understand are probing amendments. I am hopeful that I can give complete satisfaction on the matter. The intention of these amendments is to enable a person to apply for a payment under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979, or under the corresponding legislation in Northern Ireland, after they have made an application for a scheme payment but before a scheme payment is made or where the application is unsuccessful.

One of the conditions of entitlement under the 1979 legislation is that a person has not brought any action or compromised any claim for damages in respect of a disablement, for example by issuing proceedings against a negligent employer or insurer, or by settling a potential claim out of court. The provisions of Schedule 2, which these proposals would amend, ensure that people who apply to the scheme and those who bring an action or claim for damages are treated equally under the 1979 Act. If a person is prevented from claiming under the 1979 legislation because they have made an application to the diffuse mesothelioma payments scheme, instead they may still be able to claim under the 2008 diffuse mesothelioma schemes established under Part 4 of the Child Maintenance and Other Payments Act 2008 and the corresponding Northern Ireland legislation.

Mesothelioma Bill [HL]

Debate between Lord Wigley and Lord Freud

Wednesday 5th June 2013 Grand Committee

[Lord Freud]

My Lords, clearly I speak for the whole Government generally. The specifics of this are really for the MoD to pursue. There will be lots of issues around this but we need to get this Bill through. If we start going into these areas within this Bill, we risk endangering the start times and the processes. But I hear my noble friend and I know the depth of his feeling on this.

[Lord Wigley]

Before we move on, perhaps I can pick the Minister up on the words that he used a moment ago, that the Government do not have a liability. Is there not a plethora of cases where no liability exists? In most of the cases under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979, despite the fact that there was not a liability, the Government accepted their responsibility to help these people. The Minister may not be able to do it in the context of this Bill, but can he give me an assurance that he will look at this again in the future?

[Lord Freud]

I am sorry; if I said that, I truncated some words. What I meant to say is that the Government do not take out employer’s liability insurance, so effectively they self-insure, and different departments have different arrangements to pay compensation. Clearly, my noble friend Lord James feels that the ones at the Admiralty are not adequate.

The noble Lord, Lord Howarth, asked about the self-employed. We do not have any data on that area. Again, the core reason that we are not including the self-employed here is that, for obvious reasons, they were not required to have employer’s liability insurance.

--- Later in debate ---

[Lord Wigley]

I believe I am right in interpreting that there are cases that could get compensation for diffuse mesothelioma under the 1979 Act who might equally get compensation under this Act if they had not got it under the 1979 Act. That being so, I raised the question at Second Reading as to how the scales of compensation compared between the two. Is there any information that the Minister can give on that? If he has already included it in today’s letter, which I believe has been sent to my home, I apologise as I have not yet seen it.

[Lord Freud]

The noble Lord is raising a slightly different question. What we are looking at here is the question of whether one can claim on the scheme even if one has received the 1979 payment. We will be dealing in later amendments with the offsetting issue. It may be easier to leave this question until those amendments.

I ask the noble Lord to withdraw these amendments.

Unemployment: Older Women

Debate between Lord Wigley and Lord Freud

Tuesday 16th October 2012 Lords Chamber

[Lord Freud]

Noble Lords will all be aware of our concern to reduce the level of inactivity in the economy and the level of unemployment is only one way of looking at the figures. The most important thing is how many people are employed and what is happening to the level of inactivity. I am pleased to say that the level of inactivity for this group is going down quite sharply. Since the election, 110,000 fewer people are inactive, and that is something we are continuing to drive.

[Lord Wigley]

My Lords, is there not a danger of being a little complacent in this matter? Does the Minister accept that between August 2011 and August 2012, there was, over the UK as a whole, an increase of 7% in the unemployment rate for women over 50, but in Wales the increase was 14%, which is quite worrying? Does he accept that there is cause for concern and that we should take steps to minimise those figures?

[Lord Freud]

My Lords, when you have scarce resources, you must direct them efficiently. When you look at other groups with high rates of unemployment—the rate is 16% for women in the 18 to 24 age group while in this group the rate is 3.9%—you have to consider where you can most efficiently direct support. Do not forget that in the time we are talking about pension age has been increasing. The element of the impact of the increase is very small on a figure of unemployment that across the economy as a whole is probably below the rate of frictional unemployment.

Workers’ Memorial Day

Debate between Lord Wigley and Lord Freud

Monday 23rd April 2012 Lords Chamber

[Lord Freud]

My Lords, I am pleased to say that alongside my colleague Chris Grayling I wrote to the general-secretary of the TUC on the matter of Workers’ Memorial Day. We are in regular contact with him on a large number of matters, and this is one of them.

[Lord Wigley]

My Lords, on the question of mesothelioma, to which the Minister referred a moment ago, can he indicate whether the ideas which he will be working on over the coming period will require legislation? If so, why are the Government not taking advantage of the legislation that is currently going through this House?

[Lord Freud]

My Lords, it is possible, depending on the outcome, that we will need primary legislation on mesothelioma. However these things take time and we will have to structure any solution in consultation with the various stakeholders in order to get there. There is not time at the moment to attach any relevant legislation quite as rapidly as the noble Lord suggests.

Health: Pneumoconiosis

Debate between Lord Wigley and Lord Freud

Wednesday 29th February 2012 Lords Chamber

[Lord Wigley]

To ask Her Majesty’s Government how many payments of compensation were made, in the most recent year for which figures are available, under the provisions of the Pneumoconiosis Etc. (Workers’ Compensation) Act 1979, and how many of these were made to former slate quarrymen.

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

In the year from April 2010 to March 2011, 2,820 payments were made in total under the Pneumoconiosis Etc. (Workers’ Compensation) Act 1979. We are not able to identify how many payments were made specifically in respect of former slate quarrymen.

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[Lord Wigley]

My Lords, the Minister will clearly be aware that, while the 1979 pneumoconiosis Act was primarily triggered by the plight of slate quarrymen who were unable otherwise to secure compensation for industrial lung diseases they suffered, most of the beneficiaries have, quite fairly, been from other industries. Is he aware that while some coal-miners suffering emphysema and chronic bronchitis have secured compensation under the 1979 Act, former slate quarrymen suffering emphysema and chronic bronchitis—which are equally endemic in slate quarrying as in coal-mining—cannot be compensated under the Act? Will he discuss this with fellow Ministers so that this small but long-suffering group of slate quarrymen can achieve the justice to which they are equally entitled?

[Lord Freud]

My Lords, I was not aware of this discrepancy, so I will go back and have a look at exactly what is behind it, because I just do not know.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Tuesday 14th February 2012 Lords Chamber

[Lord Freud]

It will depend on what comes out of the review. If it concerns child PIP, which it may very well be, which is a recasting of the whole structure, we may need primary legislation; but if it is an adjustment of DLA, I think we may not. It will depend on the outcome of the review, which will be serious and substantial. One issue that noble Lords are raising is that there is dissatisfaction with the way that we are applying these rates. There is general dissatisfaction about whether we are using the right criteria. We have one rather simple criterion at the moment. Building that review of how we do it will be a substantial exercise. The interesting thing about this debate is the general level of dissatisfaction about whether we are using the right definitions to get to the right children and the right families. Funnily enough, that has been one of the main things driving us to make this commitment.

We have here a commitment that either we are going with a major review of the child PIP or, if not, a fallback where there will be a review anyway, albeit within the context of the DLA. That is the commitment, and I can tell your Lordships that it has been somewhat hard fought.

[Lord Wigley]

I am grateful to the noble Lord for the clarification, which is very helpful. With such an important review, would it be reasonable to assume that, in the normal way of things, there would be opportunities to debate the outcome of the review here in the Chamber before orders were drawn up to implement any of the conclusions?

[Lord Freud]

I think that we will be discussing this a lot in the years to come—it is not a dead issue. When you set up such a review, it generates its own momentum. Noble Lords know how powerful a review in this kind of area is. Once you have a review like this and the momentum that follows from it, something happens reasonably rapidly. I do not think that you have set it in absolute terms because it becomes an irresistible force. Therefore, I do not think that that is a concern. The exact nature of what we then do begs a lot of questions that we simply do not need to ask. However, with regard to how we carry out the review, the involvement of this House will be taken very much into account.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Wednesday 25th January 2012 Lords Chamber

[Lord Freud]

My Lords, I will speak to Amendments 62G, 62H, 62J and 62L, which have been brought forward to ensure that the commission’s duty to report on child poverty in the UK does not duplicate the responsibilities of the devolved Administrations. They clarify that accountability for progress on devolved matters affecting child poverty will remain with the devolved Administrations. They have been developed in close consultation with those Administrations.

The Government have always been of the view that the new commission will be most effective if it continues to have a UK-wide remit. That is why it will continue to have a member appointed by a Minister from each of the devolved Administrations, in addition to the members appointed by UK Ministers. However, it is important that the commission does not unduly duplicate the scrutiny measures already provided by each of the devolved Administrations. We have therefore agreed that the annual reports will not present the commission’s views on the progress of the devolved strategies. The reports will only describe the child poverty measures taken by the relevant devolved Ministers. This approach will ensure that responsibility for scrutiny of the content of the devolved strategies remains with the devolved Administrations.

Secondly, these amendments also enable Northern Ireland to join the commission at a later date, if the Northern Ireland Assembly passes a Motion to that effect and a Minister of the Crown makes a corresponding order. Until then, the commission’s report is not required to comment on the Northern Ireland child poverty strategy, and the commission will not have a member appointed by the relevant Northern Ireland department. By giving the Assembly this option, this approach allows us to proceed with the commission for the rest of the UK, respects the rights of the Northern Ireland Assembly and ensures that we adhere to the principles of the devolution settlements while ensuring that the Sewel convention is not breached. These amendments ensure that we can create a commission which can sit effectively alongside existing devolved provisions and report on progress across the UK.

Amendments 62EA and 71 clarify the provisions in the Child Poverty Act 2010 that set out the requirements for UK child poverty strategies. The Act requires each UK strategy to,

“describe the progress that the Secretary of State considers need to be made”,

over the period of the strategy. The current UK child poverty strategy does this in detail. It sets out the radical package of reforms that the Government are introducing and provides a clear timeline for progress in terms of policy implementation. However, the strategy does not set interim targets for reductions in child poverty by the end of the three-year strategy period. We do not wish to incentivise the short-term income-transfer approach in which small amounts of moneys are given to families to lift them just over the poverty line. This is the easiest way to improve child poverty figures but it does not strike at the heart of the problem. This is what our reforms will do, tackling the root causes of poverty and providing a sustainable solution which will enable us to meet the 2020 targets.

This approach is absolutely in line with both the letter and the spirit of the Child Poverty Act. It is important to confirm in statute our existing understanding that the Act does not require progress in this context to be expressed in numerical terms or interim targets. These amendments will ensure that it is a matter for the Secretary of State to decide how the strategy should describe progress and make it crystal clear that a long-term approach such as that outlined above is in line with the requirements of the Act. These amendments will ensure that the commission does not duplicate the responsibilities of devolved Administrations and clarifies the requirements for child poverty strategies.

The Government see Amendments 62H, 62J and 62L as directly consequential upon Amendment 62G. However, further Divisions would be required should noble Lords wish to push the other amendments in this group to a vote. I beg to move.

[Lord Wigley]

My Lords, I rise to speak to the amendments that deal with the devolved Administrations. I wondered until almost the last sentence that the Minister spoke exactly what the game was going to be. From what I understand, it will be mainly in terms of the avoidance of duplication. I do not know whether I have got that right—and perhaps the Minister can indicate whether it is mainly the avoidance of duplication, as opposed to giving anything additional with regard to the powers.

The 2020 target has had considerable enthusiastic support in Wales, but the progress has not always been as positive as one would have hoped. Of course, definitions of child poverty can sometimes be a problem, as I am sure that the Minister will immediately acknowledge. It is not just with regard to absolute levels of poverty; it is to do with relative levels as well. Perhaps the Minister will respond to this. One challenge is to get joined-up thinking between the devolved Administrations which have responsibility for social services, education, community services and local government. Many of the other responsibilities are in Westminster, particularly the economy and taxation and the transfer of resources. That is clearly important in cracking this problem. I welcome any steps being taken here that bring greater coherence and better working together between the various parts of these islands for that purpose. But I hope that something additional will come into the equation that enables greater progress to be made to eradicate child poverty, not just in Wales but throughout the UK.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Monday 12th December 2011 Lords Chamber

[Lord Wigley]

The Minister has acknowledged that whereas some will benefit from other sources of money and that that will counteract the loss of disability benefits, there will be a category who, unless something else is done, will lose out financially. Does he have any proposals to provide a safety net for those people?

[Lord Freud]

Yes I do, and I will come back to that if I may, because a whole series of questions was raised about transitional protection, which I need to deal with comprehensively.

Our impact assessments made clear that, overall, families are more likely to be better off on universal credit. In addition, departmental modelling estimates are that the impact of the reform of disability payments on the number of disabled children living in relative poverty will be negligible. We must remember that support for families with disabled children is provided by the universal credit package as a whole.

On the absolute figures of support, under universal credit, an out-of-work family with a disabled child will receive just over £8,000 a year in benefits for their child once universal credit has been introduced. That compares to just over £4,000 for an out-of-work family with a non-disabled child and about £1,000 for a family who receive only child benefit. The figure for a child on the severely disabled level is £12,000. That is the order.

Let me now turn to the really important point raised by many noble Lords about taking money away from families who have learnt how to build their lives around it. That is exactly why we have introduced transitional protection. My noble friend Lord Boswell has referred to an assurance on no losses for years one and two. The way transitional protection works is that where circumstances remain the same, people’s payment level is protected on a cash basis. That means that families currently receiving child tax credit will not see a cash reduction at all as a result of the move to universal credit, and we will provide cash protection for as long as the universal credit award is less than the previous benefit entitlement. I hope that represents a level of ring-fencing that the noble Baroness, Lady Turner, will recognise.

Disability Benefits

Debate between Lord Wigley and Lord Freud

Monday 12th December 2011 Lords Chamber

[Lord Freud]

Yes, my Lords. I very much welcome the fact that we have made an arrangement with Crimestoppers. We already have the national benefit fraud hotline; but the good thing about Crimestoppers is that it is a very trusted brand, which carries anonymity to those who call it. That will be particularly useful when we look at organised fraud, an area about which I am particularly concerned.

[Lord Wigley]

My Lords, does the Minister accept that the campaign organised by parts of the tabloid press insinuating that disabled people drawing benefits are cheats and scroungers, is totally unacceptable; that the vast majority of disabled people dependent on benefits are absolutely straight and honest; that the level of fraud is relatively low; and that this campaign should stop?

[Lord Freud]

Well, my Lords, clearly we are very concerned by any misrepresentation in the tabloid press, which likes to simplify matters a great deal. We have a real issue in making sure that we have a very clear, coherent and consistent categorisation of who should receive these benefits, because one of the main policy thrusts of this Government is to make sure that the people who really need the money are the ones who get it.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Wednesday 23rd November 2011 Grand Committee

[Lord Freud]

My Lords, I thank the noble Lord, Lord Best, for that area of inquiry. We are looking to get early support for families in a number of ways well before the cap comes in. We are looking at a process whereby families on benefit face the same choices that low-income working families face. We are looking to achieve significant behavioural change through this measure. I assure the noble Lord that we are working hard with local authorities and other departments as well as with the devolved Administrations on the implementation of this measure.

[Lord Wigley]

I find it fairly disturbing that the Minister accepts that 200,000 people will be moving to places where low rents are charged—the noble Lord, Lord Best, referred to that—such as Wales. Is this a land clearance from central London to rural Wales?

[Lord Freud]

I wish to make it clear that I absolutely do not accept that figure. I have said that we are introducing a lot of measures in advance to make sure that that figure does not arise.

--- Later in debate ---

[Lord Freud]

There is a combination there. Those are the choices that half of the low income working families need to take, although they are not even low income families—this is pretty high income. I am not specifying any more, but we will look at hard cases. I do not want to be “loaves and fishes” about hard cases either, which I know the noble Baroness would want to accuse me of, but those are the two areas relevant to that case study.

[Lord Wigley]

We seem to be getting into a bigger hole on this. If the idea is that 200,000 people, or whatever the lower figure is—I accept that the Minister has a figure and we would be very glad to know what it is—will move to areas of low rent in order to get work there, does the Minister not realise that the reason the rents are low there is that people do not have work?

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Monday 21st November 2011 Grand Committee

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

My Lords, we think it is right that an individual’s benefit entitlement is based on the degree to which he or she is participating in society. This level of participation can vary as health conditions or impairments improve or deteriorate, their impact changes or individuals adapt to their circumstances. We want the benefit accurately to reflect relevant changes in circumstances to ensure that people receive the right level of support. The 2004-05 national benefit review found that about £630 million a year of DLA is overpaid as a result of unreported changes in circumstances. This cannot be right. However, it is equally about ensuring that, when people’s circumstances deteriorate, the benefit keeps track with them.

The same study estimated that around £190 million of DLA is underpaid each year—vital money that is not reaching the people for whom it was intended. There is no one-size-fits-all answer; our approach will involve a combination of awards that, in some cases, will be fixed for a short time and in others will be longer term, depending on the individual, the impact of their disability and the extent to which they are able to live independently. In many circumstances, this can change for better or indeed for worse during someone’s lifetime, and this will be different for different people. We think that an active management regime that involves planned reviews is the most appropriate way of responding to this.

However, it is important—and on this I feel we agree—that we do not undertake inappropriate or unnecessary assessments and interventions where there is unlikely to be a change in award. Key to this is ensuring that decisions on award duration and interventions are evidence based. Here I refer back to comments I made during the debate on the noble Lord’s previous amendments. In PIP assessment, we want to get the best mix of evidence from a variety of sources. This will be partly about what the claimants tell us about themselves, partly what can be gathered at face-to-face consultations and partly what we can obtain from relevant people who support them. Moreover, as I said, we want individuals to tell us who is best placed to advise us on these matters.

Therefore, I think we are fundamentally in the same place as the noble Lords and the noble Baroness. The one key difference is that we do not think that an individual’s type of health condition or impairment matters—for example, whether or not it is a lifelong condition; what matters is the likely impact of the condition going forwards and whether it is likely to affect benefit entitlement. Conditions and impairments—even ones that are usually degenerative—can affect people in very different ways. That is why we want decisions on award durations to be based on individual circumstances following consideration of all the evidence of the case.

[Lord Wigley]

The Minister said a moment ago that he was looking for the maximum degree of flexibility and not to have reviews where they were patently not necessary. Am I right in recalling that in the earlier debates he indicated that the first tier of any review might be with the professionals without impinging on the beneficiary so as not to cause unnecessary worry and that, if the professional—the GP or whoever—advised that there was no change, there would be no need at all for the beneficiary to be aware of this?

--- Later in debate ---

[Lord Freud]

My Lords, perhaps I may be permitted to make an early intervention here in order to offer to take this matter away and return on Report. The Government fully agree with noble Lords on the need for robust independent evaluation of how the assessment works in practice and of the value that Professor Harrington has added through his reviews of the work capability assessment. While we had not intended legislating for multiple reviews of PIP, we are not averse to them. Given the strength of opinion that I know exists on this issue, I will take it away to see what I can do before Report. Although I cannot promise here and now that I can agree to exactly the formulation in these amendments, I will do all that I can to satisfy noble Lords on this matter.

I hope that this statement also deals with my noble friend Lord German’s concern, which I believe may lie behind his Amendments 98ZA and 98ZB. Given this assurance, I urge noble Lords to withdraw their amendments.

[Lord Wigley]

My Lords, as my fire has been taken away from me by the Minister, perhaps I may at least be allowed to say thank you. In consideration of this matter—and obviously consideration can come to a positive outcome, but not necessarily—the one initial fact that I would ask the Minister to take on board is that other circumstances can change in parallel with this—the general economy and other legislation—which may make it beneficial for reviews to take place more frequently. However, I will not press an open door.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Monday 14th November 2011 Grand Committee

[Lord Freud]

My Lords, I will give a full report on Wednesday, but I have already indicated where I am pretty sure we are. We are looking at passporting in a much wider way. We are having the SSAC report in January with its recommendations. There will undoubtedly be a lot of work around that. It would indeed be foolish to look at one aspect of passporting without taking the whole of passporting together. As noble Lords know, this is a framework Bill. There will be plenty of time to consider all these elements as we go through the regulations when we will be doing things in the fullest possible way. I imagine noble Lords in this Room will be taking a very full interest in all these aspects. Let me leave it that I will come back with the timetable at our next sitting.

These amendments seek to broaden the scope of PIP—I do not know whether my noble friend’s formulation of the personal disability costs payment has found favour, but I will stick with PIP, like the noble Baroness, Lady Hayter, for the purposes of this—by introducing an additional tier to the daily living component. When we consulted on the overall framework to personal independence payment, we stated our intention to move to a structure that has two components paid at two rates. We decided on this structure for three key reasons: to simplify the overall structure by reducing possible award outcomes from 11 to eight; to make it easier to understand and administer; and to ensure that it reflects the range of individual needs and provides appropriate levels of support.

We also made it clear that the overall design of personal independence payment is intended to ensure that the benefit is fairer, more transparent and focused on the individuals who are least able to live independently. It also provides an affordable and sustainable platform of provision for the future.

In responding to our consultations, most organisations said that they supported the move to broader definitions for both components as they were a better reflection of the real experience of disabled people’s daily lives. Our view, therefore, is that a daily living component paid at one of two rates will enable us to better reflect the impact of impairment on an individual’s ability to participate. I appreciate the concerns of the noble Baroness that people will receive lower levels or no support under our reforms and that her amendments are intended to prevent that. However, that fails to deal with one of our fundamental aims, which is to give more consideration to whom we prioritise for support.

The Government have been clear here. We intend to protect those who are most in need and will prioritise support for individuals whose impairment has most impact on their ability to participate. That aim, and the way in which we intend to deliver it through the new assessment criteria, may necessarily result in shifts in provision. Some people will receive more support under our proposals; some the same; and some less. This is not an exercise in simply making arbitrary cuts to existing provision; it is about refocusing benefit provision so that it reflects disability impairments and barriers to participation in the 21st century.

[Lord Wigley]

The Minister mentioned a shift in provision. Did he look at the responsibility falling on other people? I am thinking particularly of it falling on social service departments of local authorities.

[Lord Freud]

My Lords, clearly an enormous amount of work has been done on this within both government and consumer organisations. When we refine the criteria—which is the process that we are going through—we look at all those aspects to ensure that we focus the money on where it will have most effect in supporting people to live independent lives.

On the question raised by the noble Baroness, Lady Grey-Thompson, on how we will assess people, the version of criteria that we published on Friday looked at a range of key, everyday activities. The main question is to look at what support an individual needs. It is much more holistic than the test described by my noble friend Lord Newton of how to boil a kettle. Our testing results through the summer demonstrated that our approach is both reliable and valid. On the question raised on the cost of getting evidence from GPs, we are discussing PIP plans with the Department of Health but have not yet made any estimate of the specific costs of obtaining evidence from GPs. However, evidence gathering will be a critical part of PIP and we recognise that disabled people will want to present information from a wide range of sources, not just GPs. We will ensure that they are able to do this.

Let me pick up the point made by the noble Baroness on the 652,000 so-called losers. That assumes that all the people currently receiving the lowest rate of DLA care would receive nothing under the PIP. We have not yet completed the detailed assessment of the impact of our changes on the current DLA caseload, and will do that on Report. It is likely that we will see significant movement in the new benefit. I suspect that some people will receive more support because of the improved assessment; some will receive broadly the same; some will receive less; and some will leave benefit altogether. The most important thing is that these results should accurately reflect the level of need of the individuals concerned so that the money will go where it is most needed. From what we have seen so far, the draft assessment is working to achieve this.

In the proposed criteria we have demonstrated that we have not simply removed the lowest rate of DLA. The concepts of needing assistance and how individuals prepare food, as described by the noble Baroness, Lady Hayter, are very much part of the criteria. We are aiming to ensure that passports to provisions elsewhere, such as vehicle excise duty exemption and the blue badge scheme, continue. Where necessary, we are working with other government departments and the devolved Administrations to ensure that the new PIP arrangements match closely their arrangements to ensure continued support for disabled people. It is our intention that the personal independence payment will provide part of the gateway for receipt of carer’s allowance in the way that DLA currently does. I have dealt with the timing issue.

In conclusion, let me assure the noble Baroness that our proposals to move to a two-tier daily living component is not about reducing support or cutting costs. It is a principled move that will help us deliver a benefit that will focus on those least able to participate. It will do that in a way that will make it fairer, clearer for everyone to understand, simpler to administer, and affordable and sustainable into the future. The Government have spent a considerable time developing and consulting on the provisions that the noble Baroness wishes to amend. Our view is that they are the right way to progress our aims. I therefore cannot support the amendment and I urge the noble Baroness to withdraw it.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Thursday 3rd November 2011 Grand Committee

[Lord Wigley]

May I press the Minister a little further on the position of people who might be capable of work if they have assistance? To the extent that the assistance is not available, would that be a definitive reason why they should not lose their benefits?

[Lord Freud]

It is clear that a lot of changes are going on and I am not surprised that people do not understand them all. One of the things that we have done means that claimants in the support group can volunteer to go straight on to the work programme, where there is substantial help for them to get back into work. That is one way in which we are helping people who may find themselves in the worst possible position to get into work. We have made a very straightforward mechanism.

I pick up the point of the noble Lord, Lord McKenzie. We are instigating a process whereby people, if they are in the WRAG with a prognosis, are asked by work providers whether they would like to come in at any point—I think at six months. They are then encouraged to volunteer for the process early. They do not move from the WRAG to JSA until there is another WCA. We are talking about a process here; it is a dial for these people, as the noble Lord said, but it has to be understood in the context of how the work programme operates as well as how the WCA operates.

--- Later in debate ---

[Lord Freud]

My Lords, I am also looking forward to reading the Low review but I have been listening with great intensity to everything said in this Committee today. Social security is a reserved matter, although it will clearly have a limited, tangential impact on areas of policy where the Welsh Assembly and Scottish Parliament have competence, the obvious examples being childcare and housing. It does not, however, include DLA, which was one of the issues raised by the noble Lord, Lord Wigley.

I can reassure noble Lords that we have held, and will continue to hold, regular discussions with Ministers in the devolved Administrations and their officials. We are committed to the smooth and successful implementation of universal credit. To achieve that we are working closely with devolved Administrations and relevant local authorities to help them identify and address the impact that the introduction of universal credit will have on any services that they deliver. We are doing so in line with devolution guidance. My department is continuing to work through the detailed design aspects of universal credit which will be covered in regulations. Throughout this process they will continue to have discussions with the devolved Administrations, as appropriate, on these provisions and on others in the Bill. I can assure the noble Lord, Lord Wigley, that whatever I am saying here is relevant to the whole of the Bill.

I am concerned that this amendment would introduce a new and unnecessary level of bureaucracy. My noble friend Lord German hinted at some of the problems that it would result in. In practice, that would hamper progress and potentially delay the introduction of universal credit, let alone other aspects of the Bill.

[Lord Wigley]

Can the Minister clarify how that bureaucracy comes about?

[Lord Freud]

The issue is that if there is an additional, formal process, requiring a formal level of discussion at a formal time before you can clear particular things, that is another element of delay to negotiate when we already have a huge number. We are on a very precise plan of implementation here. Those noble Lords who were able to see the presentation of how we are introducing and implementing universal credit will be aware of the importance of a smooth process. I am concerned to avoid delays due to artificial elements of bureaucracy. Our ongoing discussions with devolved Administrations are the best way to address any impact on devolved services and achieve the successful implementation of these reforms. With that reassurance, I beg the noble Lord to withdraw his amendment.

[Lord Wigley]

I am grateful to the Minister for his response. I am intrigued by the way in which this bureaucracy is going to be such an imposition. If there are meaningful, ongoing discussions with the Administrations in Cardiff and Edinburgh involving a two-way flow of discussion, after which there is either a meeting of minds or not, that is not an extra level of bureaucracy. If that is not happening and it would be an extra imposition, I would be very concerned because the reassurances we are getting would be insufficient.

[Lord Freud]

My Lords, let me make myself utterly clear. If we had a statutory duty to discuss and if a devolved Minister were, for any particular reason, unavailable—my noble friend Lord German made my point here—our progress could be slowed. That unavailability could, potentially, be deliberate. We do not want another problem to negotiate when we already have a formal set of agreements on how we relate to devolved Administrations. We are sticking to those and we are talking regularly and informally on how best to get this through.

[Lord Wigley]

I note what the Minister says. He suggests that there could be some deliberate refusal to engage in such discussions. Does he seriously have examples of that happening that he could cite to the Committee, or is it something that he is imagining?

[Lord Freud]

My Lords, I could not reveal any confidences about the discussions that I have had with Ministers in devolved Administrations. Therefore, regrettably, I cannot answer that question.

[Lord Wigley]

I understand where the Minister is coming from. However, the point is that there may well be a difference of opinion between what is perceived as good public policy in Cardiff and Edinburgh and what is perceived as good public policy in his department under his Government. After all, they are different Governments of different political complexion, which will have different priorities. That is true of the current Government in Cardiff and the coalition Government who were there before them. The whole point is that we need some understanding on this.

[Lord Wigley]

That would indeed be interesting. No doubt we will hear if that is the case. However, on this amendment I was also pressing for assurances—it may well be that the Minister was giving them in the words that he used—with regard to the application of the concordat. I assume from his words that the concordat—I quoted from paragraph 17—is fully applicable and will be in the context of these negotiations; and, likewise, that the assurances of “no surprises” that have been given to local government will also be applied. If there are any direct relationships between his department and local government in Wales, which there could be in the context of housing benefit because there is a direct relationship, will those assurances apply equally? I am sure that the Minister is about to nod that that is his understanding, but I should be grateful if that could be put in writing.

[Lord Freud]

I repeat my point: we are absolutely moving in line with devolution guidance. We have no intention of doing anything other than that.

[Lord Wigley]

I have probably got as far as I will get by rattling around this set of bones but this is clearly a matter of some concern. We will not know for certain until the Bill becomes an Act and how this works is turned into reality. However, I very much hope that if, in that reality, it transpires that significant additional costs are landing on local government in England or the devolved Administrations in Wales and Scotland, the Government will pick up the bill in the spirit of the concordat and the other devices that they have if it is their actions that are causing those additional costs. On that basis, I beg leave to withdraw the amendment.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Tuesday 1st November 2011 Grand Committee

[Lord Freud]

My Lords, universal credit is particularly well suited to that situation because it is a household income. We will have rules on the two benefit recipients in a two-person household, so we should be able to adapt to that reasonably straightforwardly. Clearly there will be circumstances when one person is in paid employment and the other is self-employed, and we need to mix that. We are working on defining all those situations so that we can make universal credit work appropriately.

[Lord Wigley]

To follow that point through a little, I understood that the intention was not to take the circumstances when one was in paid employment, but when both might be employed or self-employed in their business and both getting their income. Presumably there would need to be some attention to those rules as well.

[Lord Freud]

My Lords, I am sorry. I probably broadened the point that should have remained narrow. When two people are working on one endeavour, because universal credit is a household payment, it can accommodate that without any distortion.

--- Later in debate ---

[Lord Freud]

It is clear that we cannot use real-time information for the self-employed. It is another system. It will be much closer to the kind of reporting systems for tax credits in this area—and for that reason.

[Lord Wigley]

A disabled person might have feared going self-employed in the past because of the possibility of losing benefits and not being able to get them back at some future date. That would have been a psychological barrier. Could the Minister confirm—I am sure that he can and will be eager to—that that problem should be overcome by this system? It should be sympathetic to, and encouraging of, people becoming self-employed.

[Lord Freud]

Yes, the system is absolutely straightforward for a disabled person who goes into employment, where it is unequivocally much safer. There is a difference in self-employment in that, in cases of low earnings, we will look for an element of potential conditionality and a relationship with that person when they do not want to observe the minimum income floor. You have a choice: either have a minimum income floor and then there is not conditionality; or you come below it and there is a conditionality regime. That does not mean there is an instruction saying, “It is out to work. Stop what you are doing”. It absolutely does not mean that. It means that we know what people are doing and, after discussing it with them, can reach an assessment of what they should be doing. In many cases we will be absolutely happy for them to continue that regime. It offers us an opportunity to know what is really happening out there—I suspect in a way that we do not know now.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Wednesday 26th October 2011 Grand Committee

[Lord Wigley]

I shall speak briefly in relation to the third of the amendments that has been put forward to Clause 17—that about, on page 8,

“creating and maintaining an online profile”.

I can see the merits of having that available but it might become an imposition. Many people who may be looking for work would be scared stiff of that approach, particularly the older ones or those who have restricted abilities. To be imposing or suggesting that this is a requirement surely should not be written on to the face of a Bill. I would be glad to hear the Minister’s justification for it.

[Lord Freud]

My Lords, not all claimants will be required to carry out all or indeed any of the actions listed in these clauses. They are meant as illustrations of the type of actions that may be imposed. Taking “improving personal presentation” first, we already require this of jobseeker’s allowance claimants where their appearance is proving to be a significant barrier to work. Advisers handle such cases sensitively and directions are used sparingly and as a last resort. It is not about impinging on an individual’s basic right to express themselves with their appearance but, where a claimant is actively putting off potential employers, such as with poor personal hygiene or turning up to interviews with holes in their clothes, we need to be able to address it.

On work experience and work placements, I would like to emphasise how valuable these can be as an opportunity for claimants to experience all aspects of being in a work environment, to develop skills and confidence in preparation for future employment or further work preparation, and to improve their CV and marketability to employers. This is particularly important for jobseekers who have limited or no experience of the workplace. For many it represents the main barrier preventing them from getting a job.

For claimants who have limited capability for work, we believe that appropriate work experience and work placements can help them to understand more about their career options and skills, increase confidence and provide valuable experience that they may need to get started in a job in future. The amount, duration and timing of any work experience or placement will be tailored to the needs of the individual and will not necessarily be more demanding than other actions they might be expected to take to prepare for work.

These activities could take many forms and do not need to be full-time; for example, work shadowing could be suitable for some claimants with limited capability for work. We want to ensure that claimants in the work preparation group can access valuable support and experience that could help them move into work in the future. To do this, advisers need to have the flexibility to specify the actions that they think give a claimant the best prospects of moving towards employment and be clear that in some cases this may include work experience or a work placement.

Finally, as you know, we are developing our own online service that will enable the claimant to create and maintain a personal profile, complete job-search activity including automatic job-matching when new vacancies are registered, and apply for jobs. We intend that this information will be available for the department to monitor the claimant’s activity and assist in checking compliance with their claimant commitment. There will be robust data protection, security and privacy measures in place; for example, claimants applying for jobs would remain anonymous from employers and recruiters until they accept an invitation to interview or contact them directly themselves. Access to jobseeker records by DWP staff will continue to be audited and existing user restrictions and business needs will determine which members of staff can see customer data.

It would be a waste of investment in a quality service for claimants, and severely hamper our ability to monitor compliance, if we were not able to require claimants to use the system. However, taking out this requirement would apply not just to our system, but to other online job-search sites. Increasingly, as many employers only recruit online, it is critical that claimants engage with online services that increase their chances of finding and moving into work. Of course, if a claimant is in the minority who cannot use or be helped to use online services, or if there is another compelling reason, this requirement will not be imposed. I hope that gives the noble Lord, Lord Wigley, some small reassurance.

[Lord Wigley]

Before the Minister sits down, perhaps I may press that a little further. I am interpreting what he says as implying that there might be circumstances where someone refuses to use the online system and could lose benefits as a result. Is that the case?

--- Later in debate ---

[Lord Wigley]

Before the noble Lord withdraws the amendment, which I suspect he was about to do, I return again to the provisions in Clause 17. They really are draconian. We have not only the provision highlighted in paragraph (c) of subsection (3),

“creating and maintaining an online profile”,

but paragraph (f) states,

“any action prescribed for the purpose in subsection (1)”,

which could be anything at all. To give these powers without some strong safeguards on the way on how used fills me with absolute horror. With respect to the online profile, that states that there can be an order for the person seeking work requiring him or her to create their own online profile and to maintain it. If they are either incapable of creating it, or are not diligent in maintaining it, they could lose their benefits. This would not be a problem for my four year-old granddaughter’s generation, as they pick up this technology easily, but I know of teachers approaching retirement age or perhaps losing their jobs who would be incapable of doing this on a computer. To make that a requirement in the Bill strikes me as absolute nonsense. Surely, this measure should be looked at again.

[Lord Freud]

My Lords, let me just—

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Monday 24th October 2011 Grand Committee

[Lord Wigley]

I apologise very much to the Committee that my five-hour journey from Wales took six hours and that I was late in arriving. The Minister referred to a consultation with the devolved Administrations. Clearly, some of the criteria for passported benefits may vary within the responsibilities of those devolved Administrations. Will the report that he is referring to, and which he will be bringing forward shortly, cover that point in adequate depth to make sure that there is no falling between two stools?

[Lord Freud]

Yes. I thank the noble Lord for that question. I have specifically asked the SSAC to cover the point of working with devolved Administrations when it comes up with its recommendations so that will be incorporated in its original review, let alone in our subsequent review.

--- Later in debate ---

[Lord Wigley]

I am very grateful. Would the system that he is describing take on board the fact that the claimant may not be in a position to express, have the confidence to express, or know how to express the reasons that he or she cannot make that case? Therefore there is the need for access to professional advice.

[Lord Freud]

As I said in the previous debate, taking on board advice from a claimant’s own medical practitioner and other sources is part of the process here. To pick up the point raised by the noble Baroness, Lady Hollins, for claimants in the work preparation group, we intend to carry forward the current system of home visits to claimants with mental health problems to ensure we understand why they fail to comply. Of course, all sanction decisions can be referred to an independent tribunal, helping ensure we get it right. But equally, we intend to move away from extensive—and ultimately incomplete—lists and regulations. It is impractical for legislation to catch all the relevant matters that may arise in every single case of non-compliance, and the lengthy JSA regulations—which have matters that must and may be taken into account in determining whether a claimant has good reason—are not actually helpful for decision-makers or claimants.

To pick up the point from the noble Baronesses, Lady Meacher and Lady Hollins, on the work capability assessment, we do rely on the WCA and therefore Professor Harrington’s review is critical to help us get it right. Claimants should be placed only in a work preparation or a work-related requirements group where they are capable of meeting these very basic requirements. Once in those groups, clients will need to take account of their health condition. They are designed to take on board all the available evidence on that individual.

The noble Baroness, Lady Hollins, asked what happened with the Harrington review. As noble Lords know, we took on board the entirety of Malcolm Harrington’s first recommendations. The main thing was to empower decision makers to make the right decisions. In response to the question asked by the noble Baroness, Lady Meacher, we have introduced a mental health co-ordinator in each district who has an outward-facing role working with mental health services and an inward-facing role developing the knowledge and confidence of advisers. The other area of Professor Harrington’s advice that was taken up was on improving our communications so that claimants understand the process and the result and are able to add additional evidence if they need to. In response, we have also made improvements in mental health with mental function champions across the network at Atos. Professor Harrington is currently undertaking his second independent review. We are waiting for it, and we will then look very hard at what to do with those recommendations. We will take them very seriously.

Turning to Amendment 51E on work-focused health-related assessments, the noble Baroness, Lady Hollins, will know that these assessments have been suspended because they were not working as intended. We will re-evaluate, as I have already said. I have already offered to write to the noble Earl, Lord Listowel, on care leavers, and I will add that topic to that letter.

I do not want noble Lords to feel that I am being negative in this area, and it is over-easy to think that I am. I have valued the contributions noble Lords have made. I do not see these things as appropriate for the Bill, but I am clearly going to consider deeply the points that have been made today with the aim of applying them appropriately as we implement the system. I value what noble Lords have said. It resonates. We need to get it right. On that basis, I ask the noble Baroness to withdraw her amendment.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Tuesday 18th October 2011 Grand Committee

[Lord Freud]

By the time we get to this again, I will come back with that answer.

[Lord Wigley]

My Lords, I speak at the request of my noble friend Lord Rix, who has had to leave the Committee, because we have now been going for well over four hours. I think he anticipated that we would have finished before now, and he has had to go to a 7.30 pm engagement outside the House. He has asked me, as I have my name on the amendment that led this bank of amendments, if I could respond briefly.

In doing so, I will touch on three points. In reverse order, taking up the point made by the noble Baroness, Lady Hollis of Heigham, a moment ago, with regard to the cost implication of the discretionary payments that are to be made by local government, has an assurance been given by the devolved Administrations that they have the resources to be able to do this? We are dealing with a non-devolved subject but are looking to devolved authorities, from a devolved budget, to fund the counterbalancing money that is required. If that answer is not available now, perhaps there will be an opportunity at some later stage to deal with that. It is clearly a matter that will be of concern, not only to the devolved Administrations, but to local authorities in Wales and Scotland.

[Lord Freud]

I can answer the noble Lord pretty rapidly on that. This is not a devolved area, so the discretionary housing payments are not devolved.

[Lord Wigley]

Of course—that is the whole point. The housing benefit is not a devolved area, but local government money is, unless there is going to be payment made from Westminster sources—Whitehall sources—to the local authorities in Wales. From the indication I get, payments will be made directly to local authorities, or via the Assembly to local authorities. In which case, fair enough, if enough money is going to be there; but if it has to come from their general pools, then that is from a devolved budget and will cause them problems.

[Lord Freud]

All I can confirm is that, just as anywhere else in the country, in those Administrations, the money will go by formula to those local authorities, in the same way that it currently does.

[Lord Wigley]

I accept entirely, of course, that housing benefit is run by the local authorities as a non-devolved portfolio, coming under Whitehall. However, the general funds that they have, unless there is additional funding coming from Whitehall to those local authorities and bypassing the Assembly, it would otherwise come out of the Assembly budget. All I was asking was whether that had been agreed with either the Assembly, or in the case of Wales, the Welsh Local Government Association? The Minister might be able to confirm that.

--- Later in debate ---

[Lord Freud]

What I can confirm is that the DHPs go directly to the local authorities, not through the local Assemblies.

[Lord Wigley]

Therefore, will any additional resources for discretionary payments that will be made, in line with the numerous references to discretionary payments that we have heard over the past few days, go directly and be over and above the payments that will otherwise be made.

[Lord Freud]

My Lords, yes.

[Lord Wigley]

We can put a marker down on that clear answer, for which I am very grateful.

Secondly, on one of the banks of amendments that dealt with disability and tried to get exclusions for people in certain categories of disability, the Minister, if I recall rightly, said that it would cost far too much, possibly £180 million. If that is the cost of excluding disabled families from the provisions of the Bill, it is, equally, the additional cost being faced by disabled families as a consequence of the Bill. That is an enormous cost. If it is a large sum for the Treasury budget, how much larger a sum must it be for disabled people trying to find it from their own domestic budgets? That is something that I suspect we shall need to come back to for clarification on Report. I hope that will be possible. I do not expect the Minister to respond at this point.

My third point is in regard to Amendment 35 in my name and that of my friend, the noble Lord, Lord Rix, which concerns home ownership among people with long-term disabilities. The Minister mentioned that only 400 people were affected by this. I am sure he is not decrying the importance of the scheme for the 400 people that it has helped; every single one is important in its own right.

[Lord Freud]

My Lords, may I make that absolutely clear? There are 430 people currently on the HOLD scheme. The bulk of them have an arrangement with a mortgage provider, Kent Reliance, which means that they can continue to pay the required rate of 3.63 per cent. Therefore, only a handful of people on the HOLD scheme are affected by any change.

[Lord Wigley]

Yes indeed, those 430 may well be safeguarded but there is the question of whether other people, who might in the past have come on to that scheme, will not be able to do so in the future. More importantly, the Minister referred to having had a meeting yesterday with people from Mencap to discuss this. From having a brief word with the noble Lord, Lord Rix, before he left, I understand that the people at Mencap are hoping that the Minister will at some stage, if not today, come back with some provision that will cover the requirements of this important group of people who are being helped by the scheme. I do not know whether they misunderstood that or whether the Minister will look at it again before Report to see what can be done. However, I very much hope that he will take on board the serious points that have been made by the noble Baroness and others, including the noble Lord, Lord Rix, about this important group.

We have gone well beyond our time. I put it to noble Lords that we ought to consider whether this is the most sensible way of undertaking our responsibilities, when the Committee runs for more than four hours without a break, we have disabled colleagues here and there are disabled people who want to follow our proceedings. I beg leave to withdraw the amendment.

Welfare Reform Bill

Debate between Lord Wigley and Lord Freud

Thursday 6th October 2011 Grand Committee

[Lord McKenzie of Luton]

I thank my noble friend Lord Foulkes for picking up the baton from the noble Lord, Lord Kirkwood, so that we have the chance to have the explanation of the points that were put by my noble friend and by the noble Lord, Lord Wigley. Doubtless the Minister will be able to tell us what consultation and engagement has taken place, but I think that the request is that it is not simply done at some formal stage, perhaps when policy is being formulated, but that we consider it as an integral part of our consideration of this Bill. If we can get nothing other than that from this amendment it will have been worthwhile preserving it for our brief debate.

[Lord Freud]

My Lords, I will deal with Amendment 3, which is the one noble Lords have concentrated on. Amendment 3 would introduce a requirement to consult the devolved Administrations before the introduction of universal credit. I must point out that social security is a reserved matter in Great Britain but the implementation of universal credit will have an impact on some matters of policy which are devolved, for example, housing, skills provision and childcare. For that reason, we are working closely with the devolved Administrations on the implementation of measures in the Bill and will continue to do so to ensure that the introduction of universal credit goes smoothly.

We have been discussing aspects of the Bill since well before its introduction during the latter part of 2010. The Secretary of State and I have had a number of meetings with Ministers in the devolved Administrations. A formal role has also been established for the Scottish, Welsh and Northern Irish Governments and for the Scottish and Welsh local authority associations on the universal credit senior stakeholder board. We have a concordat between DWP and the Scottish Government that sets out the commitment on communication and consultation; indeed, the Secretary of State met Scottish Ministers most recently a fortnight ago. I therefore hope that noble Lords will be reassured with regard to the concerns they have expressed. We are addressing these issues, we are consulting thoroughly, and on that basis—

[Lord Wigley]

Before the Minister sits down—although he perhaps cannot give a reply now—would he consider at some stage during the passage of this Bill the possibility of introducing a new clause or subsection? This could perhaps come towards the end, where questions such as extent arise, and propose that there should be a duty on Ministers to consult not only with regard to the primary legislation, but with regard to the impact of the orders that will be coming from the primary legislation. If it is in the Bill, there will be no excuse for not consulting at the appropriate time.

--- Later in debate ---

[Lord Freud]

No, we had anticipated that this impact assessment would come out during Committee stage, and I think we said that. I hope I gave noble Lords a reasonable clue when I suggested the opportunities we might have to debate it because I referred to a couple of clauses that, depending on our speed of progress, we will get to soon.

I shall return to the main topic and the question of pensioners. Noble Lords will be aware that there have been persistent concerns about the low level of take-up of council tax benefit among pensioners. I know that the noble Baroness, Lady Turner, has had this as her absolute central focus. As the noble Lord, Lord McKenzie, pointed out, there was cross-party consensus on the word “rebate” a couple of years ago. Many have argued that the reasons that pensioners are reluctant to claim are because it is an income-related benefit and because they believe that the process for claiming it is complicated and intrusive. We believe that there is a strong and persuasive case that council tax support for pensioners will be better delivered through localised schemes of support. Noble Lords will have seen that DCLG’s consultation paper stresses that the position of current and future pensioners should be fully protected.

I will take the opportunity to answer the specific questions raised by my noble friend Lord Newton. The allocation of cash to local authorities will be based on existing CTB expenditure, less 10 per cent. The current cost of delivering housing benefit and CTB is £500 million per year. I am not able to say what the new system will cost, mainly because the consultation that DCLG is conducting has not been concluded.

My noble friend raised the appeal process. The consultation paper does not set out a final view on what that process might be, and it is the subject of one of the consultation questions. The nature of the appeals system will depend on the final design of the system.

To summarise, the approach the Government are taking on the aspects that this amendment raises is the right one. Therefore, I thank noble Lords—

[Lord Wigley]

Is the Minister going to respond to the point made by Lord German earlier about the application in Wales, Scotland and Northern Ireland? I am sorry to come back to that like a bad penny, and I will try not to do it all the time, but in this instance, it is of direct material consequence, particularly this week when one is aware that the money to freeze council tax, so far as England is concerned, when transferred to Wales, will not be used for that purpose. Will the resource that the Minister sees going to local government in Wales go directly to local government or via the Assembly? Has he discussed this with the Welsh Local Government Association and Assembly Ministers?

[Lord Freud]

My Lords, without being over-coy on that question, this matter is out for consultation and we expect the responses from Scotland and Wales to be incorporated as part of it. So the answer, I guess, is that it will be looked at in that context. With that, I ask the noble Baroness to withdraw the amendment. I am sure that we will return to the some of the substance later.

Autism: Personal Independence Payments

Debate between Lord Wigley and Lord Freud

Monday 12th September 2011 Lords Chamber

[Lord Freud]

My Lords, first, I must reinforce the point which I know I have made in the Chamber before; when people talk about cuts, they mean cuts on projections. The actual payments are essentially being held flat in real terms. We have looked at the initial assessments and are currently revising them in the light of our experience and after speaking to many groups, including the National Autistic Society, in order to refine the assessment. We will publish that and our findings in the next couple of months.

[Lord Wigley]

My Lords, we will all have received numerous representations in the context of the Welfare Reform Bill, which is coming up, from people who are most concerned about the loss or potential loss of the disability living allowance. Will he give an assurance that when this Bill comes into Committee, the Government will seriously consider accepting amendments in order to try to safeguard some of these most vulnerable people and not steamroller the savings that they intend to get from this Bill at the expense of the most vulnerable in our society?

[Lord Freud]

My Lords, there is no intention of steamrollering people. In fact, one of the things about the personal independence payment is that it is designed to be far more effectively focused at the people who need support, particularly those with learning disabilities and so on. I can absolutely assure noble Lords right around the House that during the process of this Bill I will listen very carefully to people and that good ideas will be gratefully received.

Disabled People: Disability Living Allowance

Debate between Lord Wigley and Lord Freud

Wednesday 11th May 2011 Lords Chamber

[Lord Freud]

My Lords, we are going through a very complex and thorough process this summer to examine what is the right test for receiving the personal independence payment. A lot of things are coming out of the early research, and one of those is that people who have done less well out of DLA are those who have various mental conditions and learning disabilities, and we are trying to recast it so that those people who need support will get it. There will be some changes; it is not going to be the same as DLA; but it is going to be a far more transparent, clear and consistent test.

[Lord Wigley]

My Lords, assuming that there are some who will not get the DLA but are, at present, entitled to passported benefits, can the Minister give an assurance that if they are to lose their DLA, an analysis of alternative criteria will be made available to them and that they will all be contacted to enable them to claim such benefits?

[Lord Freud]

My Lords, it is probably premature to say how we are going to deal with this in detail. What we are going to do is publish an impact assessment—I am committed to doing that—on exactly what happens to passporting. We shall look at these issues, which are thoroughly complicated. DLA is not the only passport into many of these other benefits—there are other ways into them. We need to look at the issue in a very wide context.

Autism: Disability Living Allowance

Debate between Lord Wigley and Lord Freud

Thursday 10th March 2011 Lords Chamber

[Lord Freud]

My Lords, there is no review. We are reviewing the position of the mobility allowance in the context of an overall look at the personal independence payment. As I have told the House in the past, we are committed to making sure that people in residential care homes maintain mobility.

[Lord Wigley]

My Lords, I first declare an interest as patron of Autism Cymru. With regard to the flexibility that will be needed in the new system, in view of the very wide range of conditions that fall within the spectrum of autism, how will he ensure that there will be sufficient sensitivity to the needs of the individual in the context of these interviews to which reference has already been made?

[Lord Freud]

My Lords, that is a key point. One of the main changes we are making to the work capability assessment is exactly about this sensitivity. Professor Paul Harrington, who is conducting the reviews, made a series of recommendations as to how we should adjust this assessment that we inherited to make it more sensitive. We will have learnt those lessons, and will ensure that we pull that over into the personal independence payment.