Welfare Reform Bill

Debate between Lord McKenzie of Luton and Baroness Healy of Primrose Hill

Wednesday 23rd November 2011 Grand Committee

[Baroness Healy of Primrose Hill]

My Lords, I will also speak to Amendment 103ZA. I will be brief. It may appear overly generous on the part of a cash-strapped Government already making severe cuts in benefits and public services not to demand repayments. However, in the interests of natural and administrative justice it cannot be right to request repayment when every penny is already allocated to get a family through the week—and now to be the month. Benefits are about to be cut and will no longer keep pace with inflation. Housing, energy, food and travel costs are all rising at frightening speed. With the best will in the world, I cannot comprehend how a family which is already struggling can be asked to pay back more than its members are currently being paid either in wages or benefits or both. Many charities and churches have raised the alarm over this element of the Bill. I strongly urge the Government to reconsider such a course. It may seem small in the overall picture of state spending but would be enormous for a family on an already modest income.

[Lord McKenzie of Luton]

My Lords, my noble friend Lady Hayter is going to do Front-Bench duty on this group of amendments. I want to speak briefly to Clause 105, where a probing amendment has been put down, to make sure that we have understood what is happening in respect of the statute of limitations.

My understanding is that, at the moment, to take action to recover sums which are outstanding, you cannot go back more than six years: they are statute-barred at six years. The issue is what an action is for these purposes. The clause clarifies that, other than proceedings in a court of law, recoveries of sums due are not actions. The consequence, as I understand it, is that they are not statute-barred, so unless you need to take action through court proceedings, as a result of this clause there is no statute of limitations applying to debts arising under the Social Security Act or the provisions that are set down in the clause. That seems to be a departure from the existing position.

Moreover, the clause says that the amendment is regarded as having always formed part of the 1980 Act, so that it is retrospective, and does not just operate from the date this clause comes into existence, except in respect of proceedings. I have a question as to what, for these purposes, the proceedings are which would still remain outside the retrospection of this clause. But more importantly, what assessment has been made of the additional amounts that might be brought in scope for recovery as a result of these changes to the law?