Social Fund Funeral Payments

Gavin Robinson Excerpts

Wednesday 14th September 2016 Westminster Hall

[Gavin Robinson (Belfast East) (DUP)]

I beg to move,

That this House has considered Social Fund funeral payments.

May I say what a pleasure it is to serve under your chairmanship, Sir David? I look forward to what I hope will be another constructive debate on this topic. Before commencing, it is appropriate to place on record my appreciation to the Under-Secretary of State for Transport, the hon. Member for Blackpool North and Cleveleys (Paul Maynard), and the hon. Members for South Shields (Mrs Lewell-Buck) and for Milton Keynes South (Iain Stewart), who have all campaigned on the huge disparity between people’s profound need at a sincere time of grief and the support that Government are prepared to offer them.

I am also greatly indebted to the right hon. Member for Birkenhead (Frank Field), who as Chair of the Select Committee on Work and Pensions compiled an important report on this subject, “Support for the Bereaved”, which was published in March this year. I know that he wished to be here this morning but, due to scheduling, the Committee is taking evidence for an inquiry this morning, so its members are unable to do so. May I also welcome the Under-Secretary of State for Welfare Delivery, the hon. Member for Romsey and Southampton North (Caroline Nokes), to her place? I have not thus far engaged with her as a Minister, but I know her to be a compassionate Conservative. I know she is well placed to respond appropriately, and I trust that when she does, this debate will have a tangible outcome.

When the Select Committee’s report was published, Citizens Advice in Northern Ireland commenced its work, motivated by a desire to assist those in society who often struggle to find the right information, let alone access the help they require. I believe that its quest should be ours today. While we should always strive to provide dignity in life, we must also ensure that people have dignity in death.

The problem can be summed up as curtly as this. SunLife’s cost of dying survey puts the average cost of a funeral at £3,700. The average payment for the preceding year from the social fund was £1,347. That is a shortfall of 62%. We know that eligibility for the payment is confined to those in receipt of income support, housing benefit, tax credit, universal credit, pension credit, jobseeker’s allowance or employment and support allowance. We therefore recognise as a society that any recipient of this payment is already in need of Government support to make ends meet. Starkly, we are forcing individuals for whom every penny counts to accept a financial burden of £2,300.

[Lady Hermon (North Down) (Ind)]

I am listening very carefully indeed to the hon. Gentleman’s speech, as ever. I invite him to take this opportunity to put on the record his appreciation for the contribution made by armed services charities. In Northern Ireland, and I expect throughout the United Kingdom, those charities have been very good at helping the families of veterans when they fall on hard times and are unable to meet their funeral expenses.

[Gavin Robinson]

I am indebted to the hon. Lady. She is entirely right. At a time of grief and sorrow, pride sometimes gets in the way of people seeking the support they most earnestly need. While quietly and under the surface there are many membership organisations that, through benevolence, step in to support, they should not have to.

We are burdening those in receipt of benefits with a 62% deficit of £2,300. I know that the Government’s position—indeed, it was accepted by the Select Committee—is that in all these instances people have a choice to make. They have a choice as to what type of funeral they have, whether they engage the services of a funeral director and whether they assume additional costs. We accept that people have choices.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate my hon. Friend on securing this debate. He talks about choices. Does he agree that one of the invidious choices that some families have to make is going into considerable debt from a variety of sources in order to pay for a funeral? At a time when immediate relatives and next of kin are grieving tremendously and finding it very difficult to make ends meet, this added burden sometimes leads them to go to money lenders or other sources to get the resources.

[Gavin Robinson]

My hon. Friend is absolutely right. When the Government talk about choices, they also express a desire for the ideal situation that people make provision for their own end of life. Ideally, that is what we should do. Ideally, it should come from our estate and from our savings, but those who are most in need are recipients of benefits from this society because we recognise that they cannot pay for themselves.

I ask this question of the Minister—I do not do so glibly, but it starkly illustrates the difficulty we have. Take JSA as one example. A recipient of JSA gets £73.10 per week. How much of that £73.10 do Government believe should be set aside for funeral provision? I do not wish to be facetious: that is the serious concern of many people who struggle by themselves and do not get enough from Government. We are saying, “Really, you should be saving for after life as well.”

[David Simpson (Upper Bann) (DUP)]

I congratulate my hon. Friend on obtaining this debate. Does he agree that there is a degree of humility when it comes to folk who cannot afford to pay for a funeral? They also need more help when it comes to the form filling and the process itself.

[Gavin Robinson]

I agree with my hon. Friend, and I will come on to some of those issues later in my speech, as well as recognising the particular difficulties we have in Northern Ireland when it comes to those choices. The Select Committee did a good bit of work on the application process and the SF200 form, which I will refer to later as well.

The Minister will know that the social fund payment is broken into two categories: what is considered to be a non-discretionary award and what is considered to be a discretionary spend. The Committee has canvassed this issue. The Members I mentioned previously—the hon. Member for South Shields and others—have recognised that the £700 award, which was formulated at a time when it met discretionary spend needs, was frozen in 2003. The Bank of England’s calculator suggests that that £700 is now worth £495.68, yet the costs have not frozen; they have risen exponentially. That figure was set at a time when Government said they would meet the costs, but I am afraid this policy is now compounding the debt and the pressure on families who look to Government for support. That is 13 years of diminished spend, and the cost of discretionary items has risen exponentially, at more than three times the rate of inflation year on year since 2003.

Let us consider what is discretionary. I do not find it comfortable that the provision of a representative of the clergy or an officiant at a ceremony is a discretionary spend. I know that people have different views on faith, but for me it is not a choice. I recognise that there are many in our country who do not live a faithful life but who, when they approach the end, build that relationship for what is to come. I do not believe that that spend—whether it is a faith-based clergyman or someone who will simply officiate at an ordinary funeral—should be discretionary, nor do I believe that the hiring of a place of worship should be. We cannot expect it to be a discretionary cost for people at a time of grief and sorrow to sort out a place aside from their home to welcome family and friends who want to pay their respects to their loved one.

Discretionary cost is also associated with a cremated remains plot or storage space. Cremation is a non-discretionary spend, so its cost is covered; burial is also a non-discretionary spend and interment is covered. Burials cost substantially more than cremations and the Government will cover the cost of interment of a body in a burial, yet providing a plot for ashes or a safe place for them to be kept is non-discretionary. Given that there is a huge saving for the Government in the discretionary element of cremation, the provision of a cremated remains plot or storage space should be moved from non-discretionary to discretionary.

Embalming is a discretionary spend. The Government say a family choose whether a body will be embalmed. It is not required scientifically, but is most important, should a family choose to have an open coffin or to spend time with their deceased loved one. As part of that categorisation of non-discretionary spend, the Government are making the choice more difficult for those in receipt of benefits or who can ill afford it. They are saying, “We will pay £700”—which in no way represents the cost of the non-discretionary items added together; indeed, it has been frozen since 2003 and is now worth less than £500—“but you choose: are you going to use it to have an officiant at a ceremony, to have a place to put the ashes of your loved one, to embalm the body before disposal or to mark their final resting place with a memorial?” It is appropriate to spell out these aspects of the end of life sincerely and earnestly, to illustrate some of the choices that the policy is asking people without sufficient means to make.

In an evidence session during the Select Committee’s inquiry, an official from the Department for Work and Pensions said that, ideally, eligible claimants should know what their entitlement is before a funeral. It is sensible and plausible that people do not go to a funeral director and ask for these discretionary items, amassing a substantial cost that they can ill afford. That is sensible and, when I consider the delay in having a funeral in England and Wales, it is also practical. People may wait two, three or four weeks for a funeral. That is not so in Northern Ireland, where traditionally people are buried two or three days after death. So at a time of sorrow and grief, we not only ask people to come to terms with loss and their inability to provide for their loved one and to make arrangements, contact family and friends, but to contact DWP’s advice line to see whether support is available. Three weeks sounds practical, but three days is less so, yet the constraints are the same across the country. Colleagues from other parts of the country may wish to add their experience, but in Northern Ireland the short time frame does not allow people to do what the DWP official described as ideal.

All this—the question of discretionary or non-discretionary and the cap in 2003—has led to a crisis of funeral poverty in this country. The Local Government Association has highlighted its concern. In 2009-10, there were 2,200 public health funerals, at a cost of £1.5 million to local authorities. In 2010-11, there were 2,900, at a cost of £2.1 million. The BBC survey of all local authorities in this country had a response rate of three quarters. It is estimated that there will be 3,500 public health funerals this year.

We know what they are. Paupers’ funerals have been described as funerals for which there is simply no one to pay, no family support and no ability to give someone a send-off from a loved one, so the state steps in. The number of such funerals has risen exponentially to 3,500 this year. That has led the National Association of Funeral Directors to ask why, if funeral poverty is rising, social fund funeral payments have decreased. The social fund payments of £40 million in 2016 represent a 10.9% decrease from £44 million in the previous year. The number of public health funerals is rising and funeral poverty is rising, yet Government support is falling. With a fall of £4 million between last year and this year, we are returning to 1993 in real terms, when the Government spent £90 million on social fund funeral payments.

Last year, the social fund proudly stated that it had reduced outstanding debt and returned more than £150 million to the Treasury. The number of public health funerals is rising, spend is decreasing and the cost to local authorities and funeral poverty are rising; rather than proudly stating that they are handing £150 million back to the Treasury, the Government have the choice to use the money more appropriately and to provide the support that is needed.

To be fair, the Government gave a timely response to the Select Committee’s report. The Minister has had the chance to consider some of her narrow brief—DWP is not a narrow Department and has many considerations—and today gives her the opportunity to add some meat to the skeletal response and skeletal commitments that were offered.

The Government have talked about dialogue between funeral directors, interested third parties and stakeholders. I will be interested to hear what the Minister says to update the discussions that have been taking place since 2015. We should have an appropriate response from the Government today on how those discussions are progressing without just placing the onus on funeral directors.

There was much in the Select Committee’s report about funeral directors doing this and that. The Government could define what a simple funeral is. There are choices, as I have outlined, about what is discretionary and what is non-discretionary. I will be interested to hear not just what stakeholders, funeral directors and their association are prepared to do, but what the Government are prepared to do.

[Mr Nigel Dodds (Belfast North) (DUP)]

I congratulate my hon. Friend on initiating this debate and on how comprehensively and eloquently he has introduced it. In my experience as an MP, people do not necessarily want to talk about funerals, but as they get older the issue becomes more of a burden and a worry. We have a new Prime Minister and a new direction in a Government who are not for the privileged few but for the many. This is an opportunity for the Government to take a new approach and relieve this burden from many elderly people—often widows living alone—who are worried about passing on debt to their families. This is a real opportunity, as my hon. Friend said, to have a new, fresh start.

[Gavin Robinson]

I agree entirely. In 2004, six years before I was elected, I was assisting in one of our advice centres. A lady came in and said she had nothing, but that she had been turned down for pension credit. When we looked at the reasons why, we saw she did have something. She had very few savings, but she had a lump sum of £4,000, which brought her total savings above the threshold for pension credit.

I asked her about the £4,000 and her response was, “That’s not mine. That’s Wilton’s.” Wilton is a funeral director in my constituency. For her in 2004, the consequence of doing what the Government asked of her—to take responsibility for herself and to take pride at the end of her life knowing that no one else would have to step in—was to be ineligible for the Government’s pension credit when she needed it most.

[Ian Paisley (North Antrim) (DUP)]

I appreciate my hon. Friend’s relaying that story to the Chamber; I am sure that many of us have similar stories. Just a few weeks ago, I dealt with a constituent who, to get out of that predicament, has paid for their funeral in advance so that the money cannot be held against them in their benefit claim. That is an awful situation in which to put constituents, especially elderly and vulnerable people living alone.

[Gavin Robinson]

Absolutely right. I am grateful for that intervention. It is also important, when someone makes that choice, that they tell their family or loved ones that they have done so; if they do not, it is perfectly plausible that a family member, doing their best for their loved one, will go off and engage someone else, not knowing that that financial provision had been made. The period of three days makes that a more likely proposition in Northern Ireland than in the rest of the United Kingdom.

We are talking about simple funeral costs and simple funerals. The Select Committee report considers what a simple funeral is. I believe—I hope that the Government will listen to this earnestly—that the £700 at which the amount was capped in 2003 not only needs to be increased to reflect the cost today, but should be index-linked. It should rise with inflation so that we are today taking a decision that will not just change the situation for people in this financial year, but have a long-lasting positive impact for anyone who finds themselves in the position that we are discussing.

The Minister will know that one consideration was about the SF200 application form. Having had a chance to consider the matter following the Government response in May, can the Government say whether they will accept the recommendation and ensure that the form indicates clearly the conditions associated with who pays and who applies? That is very simple, but it means that when someone gets to the end of the process, either before or after the funeral, they do not find that Government support is not there for them and they are left with a debt.

The Government said that they were conducting their own direct research with users. I am keen to know where that is at and what it has uncovered. Additionally—I am sure that Scottish colleagues will raise this—there was a proposal that we should follow the Scottish model of indexing funeral payments with inflation. There was some criticism of that model in the Government response, but I would be keen to hear about that.

A particular issue that arose during the Committee’s consideration was the situation in Northern Ireland with bereavement benefits. The Government have considered bereavement benefits and decided that it is inappropriate for cohabiting couples with children to be eligible. That is the Government’s position. They have considered the Committee’s report and decided to stick with that position, but in Northern Ireland we cannot, because the High Court found against the Northern Ireland Executive, so in Northern Ireland there is eligibility for cohabiting couples with dependent children.

Given that we administer what is a Government scheme in Northern Ireland—it is not a Northern Ireland Executive scheme, but the wider social fund of this country—I am keen to find out from the Minister, who may need to write to me, whether the money required to meet the additional burden in relation to bereavement benefit comes out of the Northern Ireland Executive’s money or whether the Government are making up that shortfall even though they are unprepared to do so in the rest of the United Kingdom. We have found ourselves in this position because of the judiciary, and the courts may well step in in England as well.

[Mr Andrew Smith (Oxford East) (Lab)]

I congratulate the hon. Gentleman on initiating the debate and on the very effective way in which he is putting across his case. Does he agree that in the interest of compassion at a time of bereavement, that judgment is actually right and the Government ought to look at the matter again in England and throughout the United Kingdom?

[Gavin Robinson]

I do agree, although the Government flag up what I think are important associated considerations. Could we see two individuals, one a married spouse out of the home and one a cohabiting spouse in the home, applying and have the difficulty of deciding who is entitled and who is not? The Government have flagged that up. The right hon. Gentleman is right to say that the matter needs further consideration. There is the particular issue for Northern Ireland, and I think that the wider impacts are worth further reflection.

There are a number of issues on which the Government hold no information, and I will go through them quickly. The Minister may or may not get a chance to take them down, but I know that many hon. Members wish to contribute to the debate. The Government hold no data on the number of people unable to afford a funeral, on the average cost of a funeral or on the types of funeral chosen. The Government have no idea of the number of people plunged into debt. The Government hold no data on the number of local authority or public health funerals and have no proportional breakdown in their accounts as to how the £40 million paid out of the social fund breaks down into discretionary and non-discretionary payments.

I refer to all that because those are the answers that hon. Members who have doggedly pursued this issue over many years have received. Having highlighted all that has been highlighted in this opening part of the debate, and in expectation of what is to come from colleagues, I think that answers to those questions must be the starting point for a Government who wish to deal appropriately with the disparity that people face and the debt that people are plunged into.

I am grateful to have had the opportunity to introduce the debate and, as I said at the start, I commend all those who have done much more work on this issue than I have. As my right hon. Friend the Member for Belfast North (Mr Dodds) said, with a new Government, a new Minister and the stated ideal of standing for those who need it most, this is one good opportunity for the Government to deliver.

[Several hon. Members rose—]