Welfare Reform Bill

Lord Low of Dalston Excerpts

Tuesday 17th January 2012 Lords Chamber

[Lord Low of Dalston]

My Lords, I have added my name to the amendment and I have here an eloquent speech in its support. However, I do not propose to deliver it because I am aware of even larger fish to fry a little way down the track, and I think it is important that we should reach those as soon as possible. However, I want to make it clear that that in no way reflects any lack of support for the amendment of the noble Baroness, Lady Thomas. I support and agree with every word that she has said, and I entirely agree with the approach that she has suggested of getting together with the Minister and his officials to see whether we can find a way through before Third Reading.

[Baroness Gardner of Parkes]

My Lords, I support the amendment. I have raised this issue with the Minister in private in the past. Many people on the existing benefit have used the money to increase their possibility of living normally by putting it towards aids or adaptations, and it would be very wrong if they were disadvantaged because of that.

--- Later in debate ---

[Baroness Grey-Thompson]

My Lords, the purpose of the amendment is to ensure that there is an independent report on the plans for both the PIP assessment and its implementation before implementation starts, and a trial period before it is implemented in full.

We have spent much time today debating why disability benefits matter so much, but perhaps I may briefly point out that nearly one-quarter of individuals in families with at least one disabled member live in relative income poverty, and over 50 per cent of working-age disabled adults are not in paid employment. One-third of working age disabled people are estimated to live in poverty.

There is huge concern about the effect of DLA reform. The thresholds for the new benefit were announced only yesterday. The modelling suggests that the second draft will produce a 2015-16 caseload of 1.7 million people receiving PIP. Without introducing the new benefit, we would expect the number of 16 to 64 year-olds claiming DLA in 2015-16 to be 2.2 million. That is a reduction of half a million people who will not receive any help with the cost of disability, who would have been receiving DLA.

Just last week an analysis of organisations’ responses to the original government consultation on DLA reform highlighted the amount of concern about the proposed changes. The extent of this concern was not clear from the DWP response to the consultation. Scope, in its report, The Future of PIP: A Social Model Based Approach, says:

“We remain very concerned that this decision is based purely on budgetary targets, rather than on robust evidence as to how the benefit is used and by whom”.

I just do not believe that there has been time to analyse who will lose out. The Disability Benefits Consortium stated:

“We are very concerned that there has not been due consideration of the impact this reform will have both on those who lose all their entitlement and those who are left with a reduced award following reassessment”.

The thresholds were published only yesterday, but without those thresholds it is impossible to look in detail at who will lose out. Without them, it is almost impossible to have an informed debate about this part of the Bill. The few examples in the consultation document, while helpful, cannot possible address this properly.

Why do we need an independent review and trial period? Some early analysis has suggested that one of the groups who might lose out are those with mental health conditions, who currently receive the lower rate of mobility. Many people with a mental health condition find it impossible to use public transport. They frequently use their DLA to pay for taxis. If they are unable to get out, it is likely to make them more socially excluded, and push them further from the job market. This is just one possible unintended consequence.

There needs to be careful scrutiny of who will be affected by these changes. Many more groups will emerge in the months and years ahead, together with some unintended consequences. I have a real concern that it could lead to a deterioration of people’s health. Will it impact on the social care budgets? There are so many more things to consider in this. For such a major change as this, it is important to be much clearer on what the changes will be.

There is concern not just about the test or the thresholds but about the way that the benefit is assessed, and this is a much greater change than the move from IB to ESA. An independent report on the plans for both the PIP assessment and its implementation, before the implementation starts, would provide an appropriate level of scrutiny, given the huge impact this reform will have on disabled people.

The trial of the IB reassessment process in Burnley and Aberdeen threw up a number of important lessons which the DWP learnt from and implemented in the full rollout. It is so important that there is a trial of PIP in a similar way before the full rollout to either new or existing claimants. I beg to move.

[Lord Low of Dalston]

My Lords, I declare my interest in these debates as a recipient of DLA. This amendment is every bit as important as those we passed last week. Noble Lords will know from their postbag that people are looking to us to ameliorate the worst excesses of this Welfare Reform Bill. Although the Bill has some very sensible and progressive things at its core, in the shape of universal credit, nevertheless it goes too far for most people’s consciences in the way that it takes vital support away from some of the most needy in our society, in ways that have been movingly illustrated—far more eloquently than I could—in earlier debates.

Let me be clear about what the amendment does and does not do. It does not entail the Bill being paused, as happened with the Health and Social Care Bill, and as it has been portrayed outside. It merely states that the new assessment regime should not be commenced until Parliament can be given the benefit of an independent review—a common enough procedure regarding the introduction of particular statutory provisions.

It may be said that it is pointless to pass such an amendment, and that the Commons will only reverse it. However, there are two reasons for passing it, notwithstanding that. First, it sends a strong signal to the Government that they cannot be too cavalier in the way that they drive the juggernaut of reform over those who are weakest and most defenceless in our community. Secondly, as we have seen in the last week, it ensures that they cannot do this below the radar of public attention.

I support the amendment from my noble friend Lady Grey-Thompson because I think that this is all being rushed through far too quickly to meet Treasury targets, before it is ready. The latest consultation draft of the assessment criteria reached us only yesterday, as we have heard, which has left little time to carry out the necessary analysis, but enough to see that it is still very much work in progress. For instance, just one day before we were due to discuss the Government’s plans for the future of DLA, the number of disabled people likely to lose help through the new assessment process was revised upwards to 500,000, as we have heard.

When the proposals were first announced in the June 2010 Budget we were told that a 20 per cent reduction in case load was likely. At that time this represented 360,000 disabled people, so the figure for the total of losers from the Government’s proposal has risen by 140,000, to which we should probably add the 80,000 care home residents who will no longer lose their mobility payments.

The Treasury’s target saving of 20 per cent was always arbitrary, being cost-driven rather than evidence-based. The Government themselves admit that the level of fraud is very low with DLA, at only 0.5 per cent. There are even suggestions that the increased figure for losers which we heard of yesterday will not achieve the Treasury’s target, either. At all events, the DWP is giving the impression of making it up as it goes along, all in an effort to satisfy its Treasury masters.

Disabled people do not have confidence in this process, which all serves to underline the fundamental unfairness of taking needed support away from the most vulnerable simply to meet Treasury targets. Confidence is not enhanced by the experience disabled people have had of the work capability assessment for out-of-work benefits. This was trialled on new claimants and regionally piloted for 18 months before national implementation, and has been the subject of two independent reviews, yet still gives rise to considerable difficulty, with 40 per cent of appeals upheld. This is a massive waste of money. We need to be sure that we have got the system right for the personal independence payment before it is introduced. So far, the DWP has tested the proposed assessment for PIP on fewer than 1,000 people. A sample of fewer than 1,000 is simply not enough to get a proper handle on the complexity of the issues that will arise when the full DLA caseload of 2.2 million people is put through the reassessment process; it is not like saying whether you vote Labour or Conservative.