Independent Living Fund

Sarah Newton Excerpts

Tuesday 9th January 2018 Westminster Hall

[The Minister for Disabled People, Health and Work (Sarah Newton)]

It is a pleasure to serve under your chairmanship, Mrs Main, and I appreciate that reminder.

I welcome the debate secured this afternoon by the hon. Member for Wrexham (Ian C. Lucas). It is important, and I agree with him: although I have been in the House seven years, and obviously we legislate for a lot of changes, we do not spend enough time going back over them to see whether they delivered on our good intentions. It is important to scrutinise, debate and revisit what we have done. There are of course always lessons to be learned, and we should do that—learn the lessons as we go forward. I welcome the contributions made by the hon. Members for North Ayrshire and Arran (Patricia Gibson), for Battersea (Marsha De Cordova) and for Strangford (Jim Shannon). I can clearly see that they and other Members who intervened in the debate deeply share my commitment to disabled people, and that they want to ensure they can play as full as possible a part in society. They spoke passionately about their constituents and people who have benefitted from the independent living fund.

From the outset I want to assure everyone present for the debate that the Government are absolutely committing to provide the right support for disabled people so that they can live independently. I want to address the detailed points that were raised, but it is important to take up the challenge set by the hon. Member for Wrexham to look back and explain the reasons for deciding to close the fund in the first place. It is clear to me, looking back at what my predecessors aimed to do, that the decision was driven by a clear case for reform, rather than any desire to cut costs. The way disabled people are supported to live independent lives has changed significantly in the past 20 years, so the ILF model was becoming increasingly outdated. There have been significant changes to the social care landscape over the period, which have meant that mainstream provision now offers the type of control and choice that we have heard about this afternoon. That is far more available in mainstream provision than it was at the time when people thought we needed an independent living fund because those services, and that support, were not available.

I do not think it was right that the ILF was a discretionary fund. As with any discretionary fund, that inevitably led to quite a lot of inequity; people with similar disabilities did not get equal access to services. I was proud to be a member of the Bill Committee on the Care Act 2014, which I remind hon. Members secured all-party support. It was recognised as a huge, significant reform to social care—probably the most significant for 60 years. It was clear that the Act was intended to promote greater independence as well as to increase disabled people’s control over their care and support. It incorporated and built on many of the features of the ILF. Of course, importantly, the Act introduced national eligibility criteria for access to adult social care. That was no longer discretionary, with people having to apply to a fund and others deciding how it should be spent. Criteria were nationally set. Local authorities have a statutory responsibility to deliver on it, but of course they have discretion to do more. We have heard examples from Scotland. Wales takes a different approach, and local authorities throughout the country can innovate. They can join up with other services, such as supported housing, and there are huge opportunities to innovate and join up services.

The Care Act 2014 established not only eligibility criteria but standards. Like any hon. Member present this afternoon, when I work with my constituents we are interested in the quality of care. It is important to focus on that, and not always just on the amount of money, although funding is of course important. The Act brought in consistency in eligibility and in quality of care, and that was a huge step in the right direction.

When responsibility for the ILF was transferred to local authorities and devolved Administrations, of course it was very much part of the Government’s thinking on supporting the principles of localism. Local bodies are accountable to local people in their areas, and are best placed to make the decisions about how to support people. Just like other Members, I get frustrated and even angry with the local authority in my area when it does not prioritise the most vulnerable people. I do not shrink from the fact that because of the financial situation that we inherited in 2010 there have had to be cuts to local authority budgets, but they still have substantial amounts of money. They have to make choices, and when anyone asks me I am clear that they should prioritise the most vulnerable.

We have heard comments this afternoon about the legality of what the Government are doing, and that in some way we are in breach of our obligations under the Equalities Act 2010. I wish to respond to that and emphasise that the Government’s decision to close the independent living fund was challenged in a judicial review, and throughout the process the DWP won on all points. It was judged that the consultation was fair and that it had paid due regard and proper attention to the public sector equality duty. At appeal we were directed to prepare a new equality analysis, which we did, and that informed the decision to transfer funding and responsibility to local authorities in England and the devolved Administrations in Scotland and Wales. That was announced in March 2014, and it was all put in place at the time of the transfer.

At that time, a huge amount of support was given to local authorities and the devolved Administrations, which people very much welcomed. The ILF was fully funded when it was transferred to local authorities, and the Government guaranteed funding for former ILF users until at least 2020. The funding forecasts used to calculate local authority grants were based on the ILF’s own models. That was an independent body—a charity—and the forecasts were based on its models. The budget for the final year of the ILF was £262 million, and in England £363 million was transferred in two years following the closure of the scheme. A further £498 million will be transferred to local authorities between now and 2020, to cover ongoing local authority payments to former ILF recipients. Funding per person has been maintained, and that is what matters to individuals.

As has been said, the funding was not ring-fenced, because I firmly believe that local councils are better placed than central Government to take decisions about their own area, including how they spend their budget. Any attempt to dictate the terms of the transfer would have frustrated the aim of enabling local authorities to join up services that they often already provide to disabled people in their communities.

[Ian C. Lucas]

The Minister said that funding to individuals has been maintained. How does she know that when she does not keep records of the amounts paid by local authorities to individual recipients?

[Sarah Newton]

The hon. Gentleman raises a good point. We transferred the money for that purpose—I was going to come to this point later in my speech, but I will say it now. The hon. Gentleman gave various numbers for losses, cuts, and people not receiving money that came from the research that he has done, including work with third-party organisations. Before this debate I asked him to come and see me so that we could talk the issue through, because the fund was certainly transferred in the full expectation that its recipients would have their funding maintained. If there is evidence to the contrary I would like to sit down with him and go through that.

I appreciate the hon. Gentleman’s welcome for the independent review of the impact of the fund. That was carried out by leading social scientists and showed that the majority of people interviewed during the research were seeing the same level of expenditure, or more, and that the level and quality of support were going up. However, there was variability in that research, and I would be delighted to sit down with the hon. Gentleman and make sure that the money is being spent in the way that was intended.

Through the devolution of the fund, the vast majority of recipients of ILF—94%—were also recipients of care and financial support from local authorities. There was a lot of duplication, and that has enabled local authorities to have the person-centred approach that the Care Act 2014 was always about. We need to join up services around the individual because no two people are the same. No two families have the same circumstances, so we must ensure that support meets the needs of the individual and enables them to live as independently as possible. As the hon. Gentleman recognised, these are devolved matters, and it is for the Welsh Assembly to make these decisions. The Welsh Minister for Social Services and Public Health said that funding of the ILF will continue in Wales, as that will equalise support and “make it more sustainable”. That is certainly a point that the hon. Gentleman’s colleagues in Wales recognise.

We have a clear commitment to ensure that disabled people have the support to lead independent lives, and that is demonstrated in the fact that the Department spends well over £50 billion a year. This year, £52 billion will be spent on benefits to support disabled people and those with health conditions. That is around 2.5% of our GDP, and more than 6% of Government spending, and it is up by £7 billion in real terms since 2010. It is simply wrong when colleagues stand up in the House and say that the Government are cutting benefits for people with disabilities. These are indisputable facts, and when hon. Members stand up in the Chamber, and elsewhere, and wonder why there is a perception that the Government are being cruel and heartless to disabled people, I think they should look at themselves in the mirror. When Members constantly misrepresent the facts, of course people will be worried and scared. Like any other constituency MP I hold weekly surgeries, and I am frankly dismayed when people come along holding their Labour leaflets and showing me what they are being told. They are scared about cuts that are not happening.

[Marsha De Cordova]

It is not right to say that we are not being truthful because there have been severe cuts to support for disabled people. The introduction of the personal independence payment and the abolition of disability living allowance means that fewer people will receive additional support to help meet the extra costs of living with a disability. The time limiting of contributory employment and support allowance has also led to a reduction in the number of recipients who are eligible for support—

[Mrs Anne Main (in the Chair)]

Order. This is an intervention, not a speech. The Minister is replying to the debate.

[Sarah Newton]

As I said, we are spending more than £7 billion more than in 2010, and the changes we have made to the personal independence payment mean that more people are now eligible for support. People with conditions such as multiple sclerosis and those with variable conditions are now eligible, as are people with mental health problems. We have widened the range of people with health conditions and disabilities who can apply for the personal independence payment.

[Ross Thomson (Aberdeen South) (Con)]

Does the Minister agree that there is a stark difference between perception and reality, and that while some may use that perception for partisan reasons and to play politics, the reality on the ground is that the Government are supporting those who are disabled to live fulfilled and full lives, and helping them to gain choice and control over how their support is delivered?

[Sarah Newton]

I am grateful to my hon. Friend for pointing that out. The numbers clearly show a significant contribution to helping people live independently, but these things are not the only things we are doing. He is completely right to talk about enabling people to play their full part in society, including in work, and I am delighted that so many more disabled people are in work. The vast majority of disabled people want to play their full part in society and to be able to work, and we have set up very ambitious plans to ensure that more people have more support.

Let us look at some of that support. Not only do we have ESA and the personal independence payment, but enhanced and tailor-made support is available through the work coaches in Jobcentre Plus—that is more than £330 million. The marvellous Access to Work programme enables people to receive support of up to and over £40,000 a year so that they can go to work and stay in work. The subject of the newly launched Work and Health programme brings me on to the point raised by the hon. Member for North Ayrshire and Arran about working collaboratively with Scotland. I am delighted that in Scotland people are working so constructively on some of that innovation, and testing new ways that we can support people to get into and stay in work. We have a constructive working relationship with Scotland, and Scotland is benefiting from some of the considerable investment we are putting into that programme. Just this year we have two funds, one of nearly £80 million and another of about £35 million. I will, of course, always look to work with colleagues in any part of the country where we can work collaboratively and constructively to learn from each other, so that we can enable more people to play as full a part in society as they possibly can.

We have also talked about other parts of the funding. Adult social care is incredibly important for disabled people, and we have committed to publishing a Green Paper by the summer, setting out how we will reform the system and have a longer-term settlement on social care. An inter-ministerial group has been set up to do that, because it is an essential reform that we need to achieve. It is also important to have a cross-party, whole nation approach to doing that, because various Governments have tried to get it right, but we have yet to come up with a settled view we can all support. I think that is long overdue, and I will work hard to support that inter-ministerial group in coming up with a set of proposals that will aim to command the support of the whole House. Any hon. Members here who would like to join would be welcome.

[Marsha De Cordova]

I am really pleased that there will be a cross-ministerial group. Can the Minister confirm that working-age disabled people will also be considered in the Green Paper and in the reform of adult social care?

[Sarah Newton]

We definitely have two pieces of work under way. One is part of adult social care and is about the care of elderly people, and one is for working-age disabled people. That is incredibly important. We are always looking to see what more we can do to support disabled people to live as independent a life as possible, and I also want to ensure that, as we look ahead, we draw on the lessons we will learn through the considerable investment in innovation that we are putting in through the Work and Health programme. I want to ensure that we have an evidence base for the reforms we want to put in place.

In the meantime, we know we need to put more money into the system. We have put in an additional £2 billion over the next three years. That money was committed in March last year, and will mean that local authorities have the funds they need to support disabled people in living as independent a life as they can and to meet their social care needs. Councils have access to £9.25 billion more in dedicated funding for social care over the next three years. I think that, with this additional funding, local authorities have the ability to meet the needs that have been clearly set out there and to meet the responsibilities set out in the Care Act. It is important to analyse the impact of the closure of the independent living fund and I am happy to meet the hon. Member for Wrexham, because what I really want to do is focus on what more we can do in the future.

I hope that hon. Members who have been present for today’s debate will see that we have a big ambition, through a whole range of programmes, to enable disabled people to live independently and play their full part in society, helping them into work. I believe that the challenge we face as a nation is above party politics; it should be above party politics. Those colleagues who want to work with me to improve, learn and move forward to realise that bold ambition are very welcome to join me in a meeting and in that great challenge.