Welfare Reform and Work Bill

Baroness Thomas of Winchester Excerpts

Wednesday 27th January 2016 Lords Chamber

I ask the Minister just one question: is it really the intention of the Bill to make it so hard for hundreds of thousands of disabled people to get into work? Frankly, I cannot see where the incentive is: far from there being an incentive, I see a huge disincentive.

[Baroness Thomas of Winchester (LD)]

My Lords, cutting the benefit of those who are fit for work but unemployed might act as an incentive but it will really not work for those who are found not fit for work. It is likely to have the opposite effect, pushing some in the WRAG further from employment. One fact that has not come out is that it will surely increase enormously the number of work capability assessment appeals—it will probably overload the system.

Muscular Dystrophy UK has found that the extra £30 a week is invaluable to fund those disabled people in the WRAG who, for example, need to get to interviews or to volunteering work, perhaps with a support worker, or to work experience for which Access to Work is not available. Often, suitable work, volunteering or work experience is some way away from where the disabled person lives, so the cost of transport has to be taken into consideration. As for their DLA or PIP taking up the slack, that is not, unlike ESA, an income replacement. It pays for the extra costs of being disabled, and is all too often spent on topping up a disabled person’s direct payment. Another expense common to many disabled people is the need for extra heating because of their condition. Putting an extra sweater on simply is not the answer.

I am sure the Minister will tell us that this is all about trade-offs, and that for all those people made poorer by this cut, there are other things that mitigate their situation, such as increases in the personal tax allowance and the national living wage, and better support in finding a job. But none of these things will help those disabled people who are nowhere near paying tax now, and who want to volunteer or try work experience in order to build up their CV.

Turning to Clause 14 and the impact on universal credit, we have heard extensively from the noble Baronesses, Lady Grey-Thompson and Lady Lister, about how this particular cut is not well enough understood. It is also not well enough understood that universal credit has taken a huge hit from the Treasury since its inception several years ago. We ought to hear more about that and I think we will when we come on to the work allowances, which reflect this, in the next amendment.

Currently, disabled people working more than 16 hours a week are entitled to the disabled workers element of working tax credit. It is currently payable to those who have a disability or condition that makes it more difficult for them to find and sustain employment and can be claimed, not by taking the work capability assessment, but by being passported from DLA/PIP. Under the changes in the Bill, anyone who requires additional support because of a health condition will have to take the WCA, even if they are working more than 16 hours a week. It really does not make sense. If they are found to have limited capability for work, after 2017 any new claimant will not receive this additional support. No wonder it is commonly agreed that disabled people, many of whom are living in poverty, are yet again being hit hard by the Government.