Welfare Reform Bill


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Mr. Boswell: Now that we have had the privilege, I welcome the Under-Secretary to the Committee, as we have not had the chance to do so. She is a good friend and has collaborated with me on many disability issues. The quality of her initial contributions suggests very good things for the future. She has made some entirely sensible and helpful comments. If she requires, I can of course attack her politically if it will make things easier, but I do not intend to do so. Having had a good start, let us carry on as we began.
Question put and agreed to.
Clause 5 ordered to stand part of the Bill.
9.45 am

Clause 6

Amount payable where claimant entitled to both forms of allowance
Question proposed, That the clause stand part of the Bill.
Mr. Boswell: I shall be even briefer. The provision is entirely sensible. I have looked at the explanatory notes and the helpful graphs, and my feeble mind concludes that the Government intend—I hope—to give people the best outcome from the income-related and contribution-related allowances. The better sum will come out on top, and if necessary, one will be made up to the other, as the graphs indicate. If the Under-Secretary will confirm that conclusion, we need detain the Committee no longer.
Mrs. McGuire: I am happy to confirm that.
Question put and agreed to.
Clause 6 ordered to stand part of the Bill.

Clause 7

Exclusion of payments below prescribed minimum
Question proposed, That the clause stand part of the Bill.
I wonder whether it is a de minimis provision that will need sensible revisiting in due course. If the payment were 50p a week, would it make the slightest difference? I would not rush to put my head on the block by saying that we should change it now because the value of money and the cost of postage have changed. We should not reopen the whole benefit payment issue, but will the Under-Secretary share her thoughts?
Mrs. McGuire: The hon. Gentleman has raised an interesting issue. It is about getting the balance right. The de minimis level of 10p is appropriate, but I hear his comments, and I am sure that we will reflect on them. However, we see no reason why we should increase the de minimis amount from 10p. He has been around longer than I have in some respects, and he may have seen the value of money decrease or increase over the years. The point is well made, but we will hold to 10p.
Question put and agreed to.
Clause 7 ordered to stand part of the Bill.

Clause 8

Limited capability for work
The Chairman: I have looked at the wide-ranging amendments to clause 8, and at the moment, I do not intend to call a stand part debate.
Mr. Jeremy Hunt (South-West Surrey) (Con): I beg to move amendment No. 255, in clause 8, page 6, line 7, after ‘work’ insert ‘or work-related activity’.
The Chairman: With this it will be convenient to discuss the following amendments: No. 256, in clause 8, page 6, line 9, after ‘determined’ insert ‘by a single assessment’.
No. 251, in clause 8, page 6, line 24, after ‘work’ insert ‘or work-related activity’.
No. 252, in clause 8, page 6, line 27, after ‘work’ insert ‘or work-related activity’.
Mr. Hunt: On the face of it, the amendments are relatively simple. They are based on the question of whether it would be possible to combine the assessment for limited capability for work, as described in the clause, with the assessment for limited capability for work-related activity in clause 9. The amendments would make possible not only one single assessment, but the removal of clause 9.
Mr. Hood, I wonder whether you will allow me some latitude in my explanation of why we tabled the amendments. They touch on one of the two most important themes that I wish to draw to the Committee’s attention in all our 16 sittings. It concerns the fundamental thinking behind the Bill, which is that if we are going to make it easy for disabled people to re-engage in the world of work, two things have to be considered.
The first is the welcome provision in the Bill that gives people additional help to deal with their health conditions and to deal with the challenges that they may face in entering or re-entering the labour market. There are lots of excellent things in the Bill, which have been presaged by the successfully piloted pathways programme. I commend the Government not only on presenting the Bill to the House but on the pathways programme, which has given Opposition Members a great deal of confidence that roll-out can occur practically and successfully.
There is a challenge, however, and it is the complexity of the system. The current benefits system for disabled people is extraordinarily complex, and these amendments attempt represent a small step towards simplifying the processes—not just the complexity of different available benefits, but the assessment processes as well. The report that was published last year—“Improving the life chances of disabled people”—gives an example of a hypothetical person called, I think, Kelly, who becomes disabled in her twenties. It lists all the benefit applications that she would have to make. They include applications to the wheelchair service, to the local council for a disabled facilities grant, and to Access to Work for help in modifying her computer and her desk. There would also be applications for help with housing allowance, to social services for help with a personal assistant, and to the independent living fund, if the PA were going to cost more than a certain amount. The report does not mention that, on top of that, she would have to apply for the disability living allowance, or—if she were not in work—incapacity benefit.
Mr. Boswell: Could my hon. Friend not add to his list the question of passported entitlements—for example, to free prescription charges—that might apply on receipt of certain benefits but that would not be automatic?
Mr. Hunt: Yes, indeed—that is an excellent point. There are so many applicable benefits. I have read that the Minister is apparently the only member of the Government who can name all five members of the Spice Girls—I think that that appeared in The Guardian.
Mr. Murphy: It was nine years ago.
Mr. Hunt: All I would say on that—
The Chairman: Order. The hon. Gentleman asked for some leeway, but I am looking for a reference to the Spice Girls in the amendment paper and I cannot find it.
Mr. Hunt: I am grateful, Mr. Hood. I was merely pointing out that it was considered to be a great feat of memory that the Minister could remember five Spice Girls, but there are many more than five disability benefits.
Why is that a challenge? The reason is something that the Government often talk about, and which—to their credit—they understand. It is the link between disability and poverty. We know that the proportion of disabled people in poverty—nearly a third of them are of working age—are in income poverty, and the level has risen during the last 10 years, which is of great concern on both sides of the House. It is poverty of that nature that makes the benefits system so vital to some of the most vulnerable and disadvantaged people in society.
The problem with the current system is that it is like an onion with many different layers. If one is disabled, one is completely dependent on it, and one is likely to be dependent on it in one form or another for the rest of one’s life, so one does not wish to risk one’s entitlement to some or all of the benefits. That is why it is dangerous to countenance making the system even more complex.
Mr. Boswell: My intervention is supportive, and it will be the last that I shall make, because I agree with my hon. Friend’s line of argument. Does he agree that the Department’s report entitled “Opportunity for all”, which was published this week, indicates not merely the coincidence between disability and lack of employment and poverty, but the knock-on effects on families and children? Typically, children growing up in families where one of the parents is disabled suffer directly in the face of poverty and are most difficult to help.
Mr. Hunt: As ever, my hon. Friend makes an important point. One of the advances that the Government could make to be more successful in meeting their child poverty targets would be looking at the link between child poverty and disability issues. We should like there to be a specific strategy to make that happen.
Returning to the poverty issue, because it is important, the Minister and the Under-Secretary will know that the Joseph Rowntree Foundation has tried to quantify the additional costs of being disabled netted out from the additional benefits that people receive. Disabled people face an additional £200 per week in costs, ranging from the fact that if they are in a wheelchair, they will not be able to shop around as easily to get the best deals in the shops, as other people can, to the additional costs of laundry, adaptations and so on. Because of those extra costs and the link with poverty, the complexity of the benefit system makes many disabled people fearful of risking the package that is so vital for them.
We have to be careful with this Bill, because although the extra help that it is providing is to be welcomed, it also makes the benefits system even more complicated by replacing incapacity benefit with a new benefit with two elements—a support element and a work-related activity element. I should like the Minister to consider whether anything can be done to simplify the assessment processes.
I should have preferred to debate a much bolder Bill dealing with the transfer to a single working-age benefit, because that would be a huge step towards simplicity. However, the measures that we are talking about have much to commend them, which is why we support the Bill in principle. However, the Minister should consider not just the complexity of the benefits system, but the complexity of the assessment procedures and whether it would be possible to move towards a single assessment process that would be passportable across different benefits so that disabled people did not have continually to go for different assessments for various benefits.
Natascha Engel (North-East Derbyshire) (Lab): We considered the simplification of benefits in Select Committee and came across the big problem of complexity in disability itself. It is not just a matter of disability being physical or mental; if the benefits system were simplified too much, it would not capture people’s disabilities and people with different disabilities would be disadvantaged.
Mr. Hunt: The hon. Lady makes an important point. It is important that any simplification of the benefits system—the purpose of which, as in this Bill, is to make it easy for people to transfer in and out of work of work depending on their personal situation—reduces the barriers that make them concerned about transferring into work, particularly if they are out of work. She is right; nothing that we do must make it more difficult for us to react appropriately in the benefits system to the extraordinary range of complexity of disabled people’s conditions. If there were a thorough single assessment process considering every aspect of someone’s disability, it would lead to a definitive report that would, in my ideal world, be used by all organs of the state without that person being required to go through the process time and again.
A Mencap report says that 37 per cent. of severely disabled children have to deal with eight or more different professionals from different services, often asking the same questions. Although simplification would not be a quick win for the Government—it is rather complicated to get Departments to talk to each other—it would be an easy win in the sense that it should be a measure that saves money, rather than costs more. The assessment processes are expensive and there would be, on the face of it, an enormous saving to the Government if it were possible to have one single assessment that could be transferred across.
10 am
Mr. Hood, you have given me some latitude, for which I am most grateful, but let me return to the specific amendment. I hope that the Minister might consider it. He might have some good reasons as to why it is not possible to combine those two assessments and we will listen carefully to those reasons.
Would it not be possible to have one assessment that—as I understand it—is an assessment of the level of someone’s disability and if that disability is above a certain level so that they have limited capability for work, they are entitled to ESA and if it is above a higher level, they are entitled to the support element under the Bill? Would it not be possible to do that in one assessment, therefore simplifying the process for disabled people, saving the Government money and speeding up the process for everyone concerned?
Danny Alexander: I have considerable sympathy with the hon. Gentleman’s remarks in support of his amendments and want to press the Minister to explore a number of issues on those points. I agree that the benefit system facing disabled people is complex. The hon. Member for North-East Derbyshire (Natascha Engel) is right to point out that disability is complicated and many faceted. Nevertheless the complexity of both the benefit system and the assessment process can create considerable hurdles for many disabled people.
For example, one of my constituents, having had an injury at work, was faced with going to the same medical testing centre in Inverness on three separate occasions over eight weeks to be asked slightly different questions by the same doctor—one visit for incapacity benefit, one for disability living allowance and one for industrial injuries disablement benefit. Such repeated exposure to what—no matter how hard those people who are doing the assessment attempt to make it an easy process and one that people feel comfortable with—can feel like an intimidating and intrusive experience. That is something that, if we can in the course of this Bill, we should try and make simpler if possible. That is not to decry the point about the complexity of disabilities that people face and that one is trying to understand and assess, but to look at whether the assessment process can be made more simple.
That captures the point made by the hon. Member for South-West Surrey (Mr. Hunt) about poverty faced by disabled people, particularly disabled children and their families. In his earlier remarks in Committee, the Minister referred to how he wishes to see the provisions of this Bill used to help address the question of child poverty. That is something that should be in our minds throughout our proceedings—both the complexity of the system and the assessment process and whether that may or may not act as a disincentive to people to take part. Therefore, we need to look at the justification for having separate assessments for limited capability for work and limited capability for work-related activity.
The draft regulations for clause 9 set out the descriptors for the assessment of limited capability for work-related activity—which we will no doubt come to when we debate clause 9 in more detail. They have many common factors with the list of descriptors set out in the “Transformation of the Personal Capability Assessment - Report of the Physical Function and Mental Health Technical Groups” document published by the Department for Work and Pensions about a week ago. The list of descriptors are different in some respects, but similar in many respects.
Therefore, even if it is not possible to consolidate all the assessments, it must be possible to create some type of core assessment that would not just inform limited capability for work-related activity but disability living allowance and industrial injuries disablement benefit assessments. It could also inform assessments for assess-to-work funding. The Bill could be improved if the assessment that people get when they are applying for benefit carried with it an understanding of what level of access-to-work funding someone might be entitled to or what type of adjustments they might be entitled to funding to support.
 
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