Welfare Reform (Disabled People and Carers)

Nick Smith Excerpts

Tuesday 18th December 2012 Westminster Hall

[Ian Mearns]

I could not agree more. I thank my hon. Friend for making that point; it is absolutely true.

Steve Cowen, the chief officer of the Gateshead Carers Association—I cannot ignore it, because its office is next door to mine—has told me about the devastating impact that the proposals will have on carers and their families in Gateshead. Steve says that carers are the glue that holds the health and social care system together. The reforms hit them hard, and hit them again and again.

[Nick Smith (Blaenau Gwent) (Lab)]

I congratulate my hon. Friend on securing the debate. Does he agree that the bedroom tax needs to be promoted? The Government need to raise awareness of it sooner rather than later, so that families can budget and prepare for it. It will be a terrible shock for many.

[Ian Mearns]

I am grateful to my hon. Friend. He is right, but I need to make some progress, so I will move on swiftly.

A member of a couple could have a disability that means that the couple cannot sleep in the same room, for entirely appropriate reasons. A couple may need an extra room for equipment. A local authority—or a family—may have spent a considerable amount of money adapting a property for a family who are then forced to move, which not only would be distressing and disruptive to care arrangements, but could risk a greater long-term cost, because the adaptations need to be replaced in the new, smaller home. It is clearly daft.

Cuts in disability benefits imposed by the Government will, of course, affect disabled people living across the whole country, but, as with almost every other aspect of the Government’s approach to public policy, the impact is felt most keenly in areas with the greatest number of people living in relative poverty—the areas with the greatest need. Wales has the highest proportion of disabled people in the UK, with one fifth—21%—of working-age people living with a disability. It also has the highest proportion of benefit recipients for all types of benefits—20% of people of working age. Recent statistics show that just over 10% of Northern Ireland’s population are in receipt of disability living allowance.

A report prepared for the DWP by Christina Beatty, Steve Fothergill and Deborah Platts-Fowler listed the regional differences. The 20 areas with the greatest proportion of working-age people receiving DLA include Merthyr Tydfil, Neath, Blaenau Gwent, Easington, Caerphilly, Knowsley, Glasgow, and Liverpool—the list goes on. In my constituency, about 4% of people are affected. Surprise, surprise, the 10 areas with the lowest proportion of working-age people receiving DLA include Runnymede, South Northamptonshire, Kingston upon Thames, south Buckinghamshire, Windsor and Maidenhead, Surrey Heath, and Wokingham. So much for “We’re all in this together.”

The report from the Hardest Hit coalition highlighted the dismay felt by many disabled people on finding that they have become the easy target for cuts. Perhaps more shocking is the fact that the Government’s rhetoric justifying disability benefit cuts is hardening public attitudes. Many disabled people feel that the media portrayal of benefit scroungers is behind the increasing amount of disability hate crime, which is at an all-time high. That is despite the fact that estimated overpayments of DLA due to fraud make up less than 0.5% of total spending. As anyone who reads the Daily Mail will know, there are a lot of myths in the debate about welfare reform, and some are very damaging to disabled people. We need to confront those myths head-on. They are lies.

Official levels of fraud in disability and out-of-work benefits are far lower than public perceptions and polling suggest. The Office for National Statistics highlights that just 0.3% of overpayments for incapacity benefit were due to fraud. Figures on fraud for both DLA and incapacity benefit are outstripped by the figures for official error; in other words, mistakes by officials at the DWP cost the taxpayer more than fraud. Though it is true that the welfare bill grew in 10 years, disability benefits were not the main cause of that expenditure or a ballooning welfare budget.

Disabled people feel that they have been deliberately targeted, even though there is a clear alternative. Although estimates vary, tax evasion and avoidance cost the Government between £50 billion and £100 billion a year. It is estimated that a mansion tax on expensive properties, above a threshold of £2 million, would affect an estimated 74,000 people and, at face value, raise £1.7 billion. A financial transaction tax of about 0.05% on transactions such as those involving stocks, bonds, foreign currency and derivatives is possible. The bank levy introduced in January 2011 raises £2.5 billion annually, but a Robin Hood tax could raise up to 10 times that amount—£20 billion a year.

Whatever one’s view of the trade-offs, the priority should be the need to protect the poorest. In October 2010, the Prime Minister promised always to look after the sick, the vulnerable and elderly. The Chancellor said in his June 2010 emergency Budget:

“Too often, when countries undertake major consolidations…it is the poorest—those who had least to do with the cause of the economic misfortunes—who are hit hardest. Perhaps that”

has been

“a mistake that our country has made in the past. This coalition Government will be different.”—[Official Report, 22 June 2010; Vol. 512, c. 180.]

Really?

There are practical things that the Government can do over the next year. The first is to learn from the mistakes of the work capability assessments and ensure that the assessment for personal independence payments is as fair as possible. Secondly, they could review the work capability assessment, starting with the WCA descriptors, to ensure that it works consistently and fairly for all individuals with limited capability for work or work-related activity. Thirdly, they could get the fundamentals of universal credit right, ensuring that disabled people do not lose in cash terms due to the transition to universal credit from 2013. Fourthly, and most importantly, as loth as I am to implore the Government to do anything, I implore them to conduct a thorough cumulative impact assessment on the impact of all welfare reforms on disabled people, their carers and families. When the Government collect the results, they must act on them, so that no one is left floundering in unnecessarily deprived circumstances because of a welfare reform Act, the results of which were all too easy to predict.