Welfare Reform Bill

Bill Esterson Excerpts

Wednesday 15th June 2011 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

As we have heard, the discretionary social fund currently consists of budgeting loans for managed expenditure, crisis loans for emergencies and community care grants for essential household items such as cookers and beds for certain groups—for example, vulnerable people who are moving into new accommodation. The provision is national and acts as a safety net for benefit recipients facing essential expenditure they cannot meet.

It bears repeating that in 2009-10, there were 640,000 applications for community care grants and 3.64 million applications for crisis loans. That demonstrates the scale of the activity we are asking local authorities to take on. It is no small task, but it is absolutely vital to the financial well-being of many of the poorest and most vulnerable people in our society. Although an alignment scheme will be introduced—in effect, allowing advance payment of benefit—I have seen from experience how important it is that people can claim a community care grant, which does not have to be paid back, for their living expenses. It does not put people on the lowest possible income into debt. Without that, people will be driven into the arms of the high-cost lenders, which will reduce their chances of managing their debts successfully. That will put more strain on other services—for example, the health service—due to the increase of stress and depression caused by the cycle of low income and debt.

Proposals were outlined in 2011 to transfer to local authorities, with guidance, the funds currently used, but there will be no new statutory duty for how the money is to be used. It will not be ring-fenced. Local authorities have numerous calls on their expenditure at present, and without ring-fencing we cannot guarantee that the provision will go to those who are most in need. I envisage a number of different policies and that some vulnerable people will lose the right to apply for emergency support. They may be trapped between two local authorities with differing policies.

[Bill Esterson (Sefton Central) (Lab)]

My hon. Friend talks about the involvement of local authorities. Several of my constituents have contacted me about a situation that arose when the computer system in Sefton council’s housing office was down for six weeks. The staff advised my constituents to get crisis loans until the problem was fixed. I cannot understand how the Government’s proposals will make it possible for those staff to provide any kind of crisis support. Does my hon. Friend agree?

[Yvonne Fovargue]

I do. It is difficult for local authorities to provide a consistent service. As we have heard, people who are fleeing domestic violence will have an especially difficult time as they move from one local authority to another overnight. How will they be treated?

--- Later in debate ---

[Bill Esterson]

The hon. Gentleman makes a strong case for his concerns about the loan system. What worries me, reading the clause, are the references to discretion and appropriate decisions by the Treasury about what does or does not constitute grounds for payment on account. A constituent who came to me was denied employment support allowance and was told that he was fit for work. When he went to the jobcentre, he did not qualify. That person needed three separate crisis loans. The point about managing debt is well made. The issue of appropriateness will cause huge problems.

[Jim Shannon]

I thank the hon. Gentleman for his comments. Many Members in all parts of the House know how the system works and the importance of a crisis loan system operating through the social fund.

My final point relates to the appeals system. The proposed changes will do away with the independent appeals system or at least make it unnecessary. I fought a number of appeals for people who had applied for crisis loans through the social fund. Having the appeals system in place is critical. If they are turned down the first time, it may be because they provided the wrong information, or because all the necessary information was not available. An appeals system allows a review to take place. It is crucial that the independent appeals system is retained.

The system of crisis loans through the social fund is a crucial aspect of life in Britain today for the people who come to my office and for those I meet. It gives people hope and an opportunity to get out of sometimes dire financial circumstances. The Government, the House and we as elected representatives have a duty to make sure that the social fund and the crisis loan are retained.

--- Later in debate ---

[Margaret Curran]

This is getting embarrassing because, again, I could not agree with the hon. Gentleman more. He made the point perfectly. I commend him because he too takes a strong interest in this matter and has argued passionately for his constituents.

Unlike the Government’s position on DLA mobility for those in residential care homes, Labour’s position is crystal clear, as are our amendments. The Government must not remove DLA mobility for those in residential care and must delete the part of clause 83 that sets out to do just that. When I say “DLA mobility” throughout my remarks, I also mean as it applies to PIP mobility.

There have been many warm words from the Minister on the Government’s plans on DLA mobility, but they come as little reassurance to disabled people when they realise that absolutely nothing has changed since the cut was announced. The clause remains unamended and the cut remains in the Budget book. Some 80,000 disabled people continue to be under threat of losing out at the hands of this Government. Warm words, yes; a change in policy, no.

When justifying this cut, the Minister explains that it is about removing the overlap in provision. She has described a situation of chaos in the residential care sector in relation to this benefit, but hon. Members and charities have heard little or no evidence to substantiate that claim. Furthermore, she knows as well as we do that she does not need clause 83 to remove any overlap there might be in the provision of services to support the mobility and transport needs of care home residents. She already has the power to set new eligibility criteria. Such criteria could remove any overlap in funding or inconsistency in practice and ensure that the mobility component of DLA is used appropriately—I presume that that is the reason for her concerns about overlap. If care homes or local authorities are using the mobility component in a way that is not appropriate, she should address it head-on with the care homes and local authorities.

[Bill Esterson]

My hon. Friend is making an extremely good case. One of my constituents has said that if the mobility component of DLA is taken away, it

“will make a prison of my son’s care home”.

A wider issue that has been raised by many constituents is that people may be in care for many years with considerable mobility needs and that the care home needs the extra resources to get them beyond the front door.

[Margaret Curran]

I thank my hon. Friend for drawing our attention to his constituents’ concerns. I am sure that he, and all Members, will bear that experience in mind when we vote this afternoon. I appeal to Members to consider the significant needs of people who live in care homes. That should direct us in how we vote.