Disability Allowance

Margaret Curran Excerpts

Tuesday 30th November 2010 Westminster Hall

[Margaret Curran (Glasgow East) (Lab)]

I am very pleased to be here to respond to this debate. Of course I want to begin by thanking my right hon. Friend the Member for Coatbridge, Chryston and Bellshill (Mr Clarke)—I think that I have got the geography right there, but I am very bad at geography so please forgive me if I make mistakes along the way—for securing this debate. I have been in this particular “garden” for many years, as has my right hon. Friend, and I know very well his work on disability. He is an outstanding figure in that field. As my hon. Friend the Member for Glasgow North East (Mr Bain) said, when he speaks he commands respect, and I counsel the Government to listen to him.

Of course this has been a very important debate on a vital issue. It has been said that, at first glance, this change appears to affect only a very small number of people. However, as my hon. Friend from Northern Ireland, if I may say that—

[Ian Paisley]

North Antrim.

[Margaret Curran]

Thank you. As my hon. Friend the Member for North Antrim (Ian Paisley) has said, actually this measure has an impact on thousands of lives and it could radically alter thousands of lives. He put it well. However, although £135 million is a huge amount of money, it none the less represents a small percentage of the cuts being proposed by this Government.

As we have heard, there are concerns about the impact of the cut. We have heard dramatic examples of how real-life circumstances have been altered. I have observed in the past few months that the issue has energised many in the disability, voluntary and charitable sector who are deeply concerned. To quote Mencap:

“Without this vital lifeline, many disabled people in care will lose much of their independence, be unable to take part in many community activities they enjoy and have fewer opportunities to meet with friends and family.”

Fear of the cuts’ implications has become widespread and has now captured a wider audience for this debate.

I should make my party’s position clear, although it has been mentioned. Labour supports welfare reform; I quote the Government as saying that they are continuing our work of welfare reform. However, we cannot support these crude cuts. They are ill thought out and, as has been said, they go against the central principle of personalised support for disabled people by actively undermining their empowerment to choose how they live their lives.

[Fiona O'Donnell]

Does my hon. Friend agree that it is absolutely ridiculous to expect local authorities to fill the gap? Will buses run around care homes? Will people be stuck on buses for hours, waiting to be dropped off? How far in advance will they have to book their transport? The issue is about independence and choice, and the cuts will adversely affect some of the most vulnerable people in our society.

[Margaret Curran]

I will come to that central argument of the Government’s, as we must address it head-on, but I will do so later in my comments if that is okay. I am grateful to have this opportunity to correct on the record the view put forward by the Prime Minister about Labour’s position on the issue, because it is important to clarify it.

I repeat that Labour does not support the cut proposed by this Government; the Prime Minister implied that it did. Perhaps I am not as honourable as my right hon. Friend the Member for Coatbridge, Chryston and Bellshill, but I am obliged to say that it is not the first time that the Prime Minister has made a mistake after listening to a whisper from the Chancellor. I think that that explains what happened last week. It is deeply troubling that the Government are about to cut a vital lifeline affecting about 60,000 people living in residential care. They will be £2,500 worse off as a result, and the Prime Minister is not being exactly clear about the details of the proposal, which is of concern.

The issue of double funding lies at the heart of the Government’s case; we have been told that that is their argument. The logic seems to be that transport costs are currently funded by local authorities and therefore should not be funded again by Government. However, as many charities have rightly pointed out, local authorities’ assessments of care needs cover only what they consider core or essential needs. They do not always cover aspects of an individual’s life and social interactions, so social trips such as those to friends and family are unlikely to be included within the current service arrangements.

Furthermore, if that is funded already, why is there so little mention of it in existing community care plans? Surely we should be able to track and identify such funding. If it is funded already, why do so many people use their mobility payments to buy scooters, to take children out of residential homes at weekends and to use adapted taxis to go to the shops? Why do they pool payments to buy or lease an adapted car? Those services are important. The change represents a cut.

We are also told that the £2 billion that the Government are investing in social care could provide the resources to make up that loss. Some hon. Members have argued that the Government should be made to make up the loss. However, the claim of an extra £2 billion for social care has been rejected by the Conservative-led Local Government Association in England, which warns of a 4% increase in the need for social care in coming years and expects that even with the most optimistic efficiency savings, the shortfall will be at least £4 billion by the end of the comprehensive spending review. Even with the so-called extra £2 billion, there will still be a shortfall of £2 billion. As my hon. Friend the Member for East Lothian (Fiona O'Donnell) said, local authorities cannot reasonably be expected to make up that extra gap.

There is no guarantee that the money will be effective in meeting existing demands, let alone in filling future gaps. I know that some people have said that the Minister should direct local authorities to make up the gap, but that runs completely counter to the decision not to ring-fence. If services are not ring-fenced, the Government cannot direct what they should do.

The Government’s approach, I argue with great sincerity, does not address the fundamental issues. How will it address the individual difficulties cited in this debate? It will fall on local authorities to find the resources to replace what the mobility component pays for, but the argument is that local authorities already fund the mobility component. Does the Minister think that it is realistic or likely that local authorities, which are set to lose one third of their funding, will step in to provide those essential services? I repeat the question I asked her last week at the Dispatch Box: do the Government believe, and can they guarantee, that there will be no losers as a result of the policy?

This has been an important and good debate. I call on the Government to listen to the strength of feeling involved and the range of issues selected. I note a degree of sympathy on the coalition Benches with the argument made by my right hon. Friend the Member for Coatbridge, Chryston and Bellshill. This is an opportunity for the Government to think again.

In my kinder moments, I honestly think the Government have made a mistake and that the plan was dreamt up by some young spark in the Treasury who had a quick look at the tables and thought, “There’s a quick saving. It looks as if it’s already double-funded.” However, they were not in the secret garden and did not think through the consequences. At worst, it is a callous cut for which the Government will be held to account for many years if they proceed without thinking it through. I leave it to the Minister to tell us which is true.

As it stands, it is a crude, cruel cut that undermines moves towards personalisation, the Minister’s own efforts at welfare reform, quality of life and opportunity. For such a small saving, it will have an enormous impact on the quality of life of the people in greatest need. It cannot be accepted. This is the anniversary of the passage of legislation empowering disabled people, and Friday is the international day of disabled people throughout the world. I call on the Government to take this opportunity to show solidarity with disabled people and announce that they will not proceed with the cuts.

--- Later in debate ---

[Maria Miller]

We are absolutely committed to ensuring that the independence of disabled people living in care homes is maintained, and that is our prime responsibility. I will give more details on how we intend to do that later, but I am conscious of the fact that other Members have raised points and that I should make progress in answering them.

At a time when we are spending £120 million a day in interest payment on the debt we inherited from the previous Government, the unbridled expansion of DLA is unsustainable. We need to be certain that public money is focused where it can have the most impact in an affordable manner, helping people to lead independent lives. That is why we propose an objective assessment, which we are developing with the help of medical experts and disabled people.

[Margaret Curran]

I appreciate that time is short and so thank the Minister for giving way. Would she address the issue at hand? The debate is not about the general reform of DLA, but about the specific cut. We should focus on that, as there are many answers that people are looking for.

Oral Answers to Questions

Margaret Curran Excerpts

Monday 22nd November 2010 Commons Chamber

[Maria Miller]

I thank my hon. Friend for his question, and I am very happy to meet him to discuss this matter further. I would draw hon. Members’ attention to the fact that colleagues in the Department of Health have put £2 billion into social care, which will be available to ensure that local authorities and social care providers are able to meet people’s needs.

[Margaret Curran (Glasgow East) (Lab)]

The spending review said that this measure would apply only

“where such costs are already met from public funds.”

Perhaps the Minister will take the opportunity to reassert that this afternoon. However, Scope and other leading disability organisations have established that removing the mobility component will hit thousands of disabled people. They have described the change as “callous”, and called on the Government to think again. Will the Government listen to those organisations, or do they believe—and can they guarantee—that there will be “no losers” as a result of this policy?

[Maria Miller]

I thank the hon. Lady for her question. She will obviously realise that one reason for having to look at these sorts of measures is that we were left an immense fiscal deficit by the previous Administration. I can confirm to her today that we will, of course, listen to the concerns and thoughts of voluntary organisations and disabled people—indeed, I am already doing so—and that the measure we are putting in place will ensure that the existing duties of care homes and local authorities, which are to ensure that disabled people are able to live independent lives, will be fully enforced so that the correct level of support can be delivered locally.

Work and Pensions (CSR)

Margaret Curran Excerpts

Thursday 4th November 2010 Westminster Hall

[Margaret Curran (Glasgow East) (Lab)]

Like the hon. Member for Stroud (Neil Carmichael), I am a new Member and might struggle with constituency names, so any help will be gratefully received—please feel free to help me out.

I congratulate the Backbench Business Committee on securing this terribly important debate about the impact of the comprehensive spending review on the Department for Work and Pensions. Of course, the changes announced will shape the levels of poverty and employment in this country for years to come and it is right that we have the opportunity today to examine them in detail and to understand the impact that they will have on our welfare system and, as has been said, on communities throughout the country.

This has been an interesting debate and later I will rise to the challenge of some of the political temptations put before me, but first I want to say that welfare reform and the work undertaken in this area in the DWP has been centre-stage in the work of the new Government, so the debate on how we reform welfare and get more people into work will continue for the immediate and foreseeable future. I am sure that we shall have many discussions. Of course, that is as it should be, as the proposals announced so far will impact on the lives of so many people in great need. What may appear to be a technical point in our consideration represents in many cases a major shift in the living circumstances of a family or an individual. That should always be at the forefront of our minds and any of our discussions.

Whatever our disagreements—I will come to them—there are some starting points, as the hon. Member for Stroud said, on which we can agree. On behalf of the Opposition, I make that clear. It has been said before that we are prepared to work alongside the Government to consider the challenge of welfare reform, because we do need to reform the welfare state to face the challenges of the 21st century: an ageing population, more people in need of care and the need for a stronger work force, less dependent on benefits. As the hon. Member for Bermondsey and Old Southwark (Simon Hughes) said, if we could create a more equal society, of course we would all be up for that.

The Secretary of State has made strong commitments and promised to deliver a welfare system that will make work pay. He has acknowledged, in doing so, that he is continuing the work of the previous, Labour Government—some hon. Members referred to that—particularly by moving people from incapacity benefit to the new employment and support allowance, but there have been many other dimensions to that, too. As I understand it, there is a history of our working together when we have recognised challenges in the past. I think that the previous Government worked closely with the Opposition on pensions reform. I hope we can build on that.

The Secretary of State is familiar with Easterhouse, in my constituency. I think that visits to that area persuaded him of the need for reform. He is on record as saying that his aim in the reform is to improve the lives of others and not to reduce standards of living—that test will be centre stage as we progress with our discussions.

I pay tribute to my hon. Friend the Member for Aberdeen South (Miss Begg), the distinguished Chair of the Select Committee. I have known my hon. Friend for many years and pay tribute to her authority in this field and the respect that she commands. In her contribution, she gave a strategic outline of some of the challenges that we are facing. Unfortunately, I cannot cover all the points made in the debate, but I will refer to a few of them in my brief contribution.

One point highlighted by my hon. Friend was the depth of concern about the change in the rating, which will take place when we shift from RPI to CPI. I listened to the arguments in favour, but it is incumbent on us to understand the real impact that the change will have on the standards of living of the people that we seem to care most about. I am not terribly sure that the impact is appreciated yet, but the shift does not rest easily with a commitment to let no one’s living standards change as a result of the acts of the Government and to protect everyone. If we look at the evidence from a number of organisations, they would say, “Actually, this reflects an effective and a real cut in benefits.”

Not surprisingly, the universal credit has been mentioned by just about everyone contributing to the debate—my hon. Friend the Member for Stretford and Urmston (Kate Green) made some telling reflections. It is important that we recognise that of course there is a move to support universal credit and to simplify the benefits system, and we would support anything possible that would make work pay and encourage and incentivise people to work. However, the theme that seems to be emerging in the debate is that, while the Government genuinely seem to be driving reform in that way—I have to say that of the Minister and her colleagues—that is undercut by their other actions. I ask the Government to think about that seriously.

The hon. Member for Bermondsey and Old Southwark mentioned the changes in the council tax benefit—apart from reducing it by 10%, which alone could cause some difficulty, the very nature of devolving its decision making immediately cuts across the drive to simplicity. The change will have an impact on housing benefit, income support and jobseeker’s allowance. I am told by those involved that it is, by all definitions, very complicated—on the one hand, we have a drive to simplicity, on the other an action that complicates it.

Not surprisingly, housing benefit has concentrated a lot of minds this afternoon. There are many detailed discussions to be had. My hon. Friend the Member for Stretford and Urmston, with a notable and highly acclaimed record on child poverty, as she amply demonstrated this afternoon, spoke about some of those complications, as did my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck), when she was present.

We can have our debates about the impact on different parts of the country—I willingly acknowledge that the impact might be slightly different in my part of the country from what it would be in London—but we have to listen to the outside organisations, such as Shelter and Crisis, which are telling us that we need to think about it in great depth. Perhaps most tellingly, they are asking, “Do we need to rush at this?” There might be a principle that we need to discuss and grapple with, but let us not do it with undue haste—there might be implications that the Government do not intend. Thinking about that is important.

I wish to highlight one issue that has particular resonance for me and my constituency, to which reference has been made—the intention to reduce housing benefit by 10% for those on jobseeker’s allowance for more than one year. The Government need to acknowledge that this is one of the most contentious proposals, and one that is causing deep concern throughout the country.

Anyone with a knowledge of Easterhouse or an understanding of the regeneration within such communities will realise that housing associations are often the drivers of change. If we reduce the benefit for many people who, genuinely, cannot find work because it is not readily available, we give the housing agencies two choices—to give just one example of the problems with the proposal. Either the housing agencies can evict people, which would cause enormous difficulties and create cost in other ways, or their business plans are undercut because they cannot reap the necessary benefits, so undermining our efforts.

That illustrates, again, that what I think are genuine attempts by the Government to reform welfare are being undercut by other actions—actions by the Treasury, undercutting actions by the DWP.

I do not have much time to go into the reform of disability benefits, but I make one request of the Minister. She has indicated that she will work with disability organisations on the disability living allowance and other changes. Will she acknowledge that it is vital that we engage with the disability movement in tackling any such changes?

I want to refer to child poverty, which was mentioned by a number of hon. Members in the debate. I am so tempted to roll up my sleeves and fight for the record of the previous Labour Government, but we could continue like that for some time. Let me just say that, according to the statistics and briefings mentioned, from Barnardo’s and Save the Children, the Labour Government lifted 600,000 children out of relative poverty and made substantial progress on absolute poverty. Those organisations recognised that as a substantial achievement, which made significant progress in improving the lives of so many people.

There are real challenges in what the Government are doing across the board to tackle child poverty—that was well articulated in the debate—in particular when looking at the child care element of the working tax credit, which will now only cover 70% of child care costs rather than the previous 80%. We know that child care presents an important barrier to people returning to work, so the change again seems to contradict efforts to reform and improve the move to get people back to work.

The Institute for Fiscal Studies report, produced after the Budget, outlined how many of the measures disproportionately affected the poorest families. A number of organisations are now saying to the Government, “When you look at the impact you are having on the poorest families and at the timing of when some of your commitments will come through, particularly two, three or four years down the line, how can you possibly say that child poverty figures will be protected?”

Added to that is recent research by the House of Commons Library on the impact of the Budget on women—to which, again, reference has been made. The fact is that the cuts announced in the comprehensive spending review will hit women twice as hard as they hit men. There are big cuts in support paid directly to mothers, including cuts in child care, child benefit and tax credits. Also, the significant cuts to the public sector will, disproportionately, hit women hard—in employment and in the services they need to support families, which are vital in tackling poverty. There is much concern about that.

The Minister has already put on the record that her Department will issue an equality impact assessment of the cuts on women and, indeed, disabled people. Can she indicate when we might get that report?

That brings me to the fundamental concern about the Government’s approach. Not only will they undermine their own efforts to reform welfare, but they will destabilise growth and increase unemployment across the country. The extent of the cuts to the welfare budget announced in the June Budget and in last month’s CSR seems to reflect the political ambitions of the Chancellor rather more than those of the Secretary of State for Work and Pensions. In both those announcements, we have heard too much about cuts and not enough about reform—I acknowledge that reform was the tenor of the debate today, but it is not always like that with the Government.

I have said that we will work with the Government as they intend to progress with reform, but there is a fundamental flaw in their approach so far. Their welfare reform is based on the premise that it is best to get people back to work and that work pays—so far, so good. However, it falls down with what happens when there is no work to go to.

It cannot make sense to have people on the dole. We all know that longer dole queues mean a higher benefits bill, which cuts across the very principles of what the Government are doing. So, the Government are only continuing in part what we were doing. There are significant differences. Yes, we introduced conditionality, but the sanctions were backed up by guarantees, the youth guarantee and the future jobs fund. Yet one of the first actions of the Government in power was to abolish them. That is a colossal error for anyone committed to welfare reform. As I said earlier, it would appear that the Secretary of State is persuaded of the case for meaningful reform. However, it seems that he has not persuaded his Cabinet colleagues that such reform needs to be supported more systematically.

We were told earlier this afternoon—I am sure that I shall be told again in a moment—that the level of unemployment is unavoidable, and that what is happening in the economy is the result of our actions. Like my hon. Friend the Member for Aberdeen South, I am old enough to remember the last Tory Government. They said then that unemployment was unavoidable, but they were wrong then and I believe that they are wrong now.

For the record, between 2007 and 2009, and before the global crisis, the UK had the second lowest level of debt among the G7 countries at 36.5%. Labour reduced the debt that we inherited from the previous Tory Government, when it stood at 42.5%. It was the global economic crisis of 2008 and the resultant need to bail out the banks that caused the deficit that we have today.

[Damian Hinds]

Does the hon. Lady accept the existence of a structural deficit, quite separate from the cyclical part, and will she accept some responsibility on behalf of her party for that?

[Margaret Curran]

When looking back at the Budgets of Labour Governments, the hon. Gentleman’s own Prime Minister said that we were not bold enough with our spending plans. The hon. Gentleman cannot get away with his argument, and I hope not to hear it again. It was a global crisis that created the problems that we faced, and we had to respond to it.

[Damian Hinds]

Will the hon. Lady give way?

[Margaret Curran]

No. I hope that the Minister does not repeat that argument, because in tackling the crisis we decided not to do what had been done during previous recessions, when the unemployed paid the price. We kept people in their homes and in jobs. That was the right thing to do. If we were still in Government, we would not be making our children and our families pay more than we would make the banks pay. Even the Government’s own Office for Budget Responsibility declares that there will be substantial job losses as a direct result of the Government’s decision to slash the deficit as quickly and as steeply as they can. I repeat—this goes to the core of what we are trying to tackle—that we all know that high unemployment will mean a higher welfare bill and a bigger deficit in the long run, and will defeat genuine and well-meant efforts at reform.

I am sure that the debate may change emphasis with the publication of the White Paper. However, the benchmarks of fairness, proportionality and effectiveness in getting people back to work will be the test that we use. When the Government meet that test, we will happily work with them.

Oral Answers to Questions

Margaret Curran Excerpts

Monday 18th October 2010 Commons Chamber

[Maria Miller]

I join my hon. Friend in paying tribute to the Newlife Foundation, particularly the work of Sheila Brown in setting up that important local charity. My hon. Friend is right to identify the complexities of the benefit system, particularly the way it can affect children and families. He will know that, in the emergency Budget, the Chancellor announced a review, and I would like to offer to meet the Newlife Foundation and Sheila Brown with my hon. Friend to discuss that matter further.

[Margaret Curran (Glasgow East) (Lab)]

Will the Under-Secretary confirm that an equality impact assessment will be published following the comprehensive spending review? Are the Government prepared to publish all the analysis that was undertaken of the implications of the spending review, particularly its impact on disabled people? In the light of that, are the Government willing to make a statement to the House on the full implications for disabled people?

[Maria Miller]

I welcome the hon. Lady to her position—I believe that this is her first time at the Dispatch Box. I would like to reassure her that we already have the processes in place to undertake an equality impact assessment of all the measures that affect disabled people. We have said that we will make it publicly available.

Oral Answers to Questions

Margaret Curran Excerpts

Monday 19th July 2010 Commons Chamber

[Maria Miller]

I thank my hon. Friend for his question, and I know the amount of work that he has done in this area. Helping people who are trapped on benefits through drug and alcohol addiction is, as he knows, a top priority for the Government. It is estimated that in England there are 270,000 problem drug users on working-age benefits; information is not currently available on the number with alcohol dependency, but I am sure that if it were, the figures would be pushed up even further. The new Work programme will recognise the cost of helping someone with multiple barriers and will allow the flexibility to tailor the support that people need.

[Margaret Curran (Glasgow East) (Lab)]

Given the Secretary of State’s commitment to my constituency, which includes Greater Easterhouse, and to children there, may I ask him directly to take the opportunity today to rule out the means-testing of child benefit?

[Mr Duncan Smith]

I am enormously fond of the hon. Lady’s constituency, but as she knows, that is not an area for my Department; it comes under the Treasury brief. I can give her a guarantee that I have had no discussions with the Treasury about that matter.