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Session 2008 - 09
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General Committee Debates
Welfare Reform Bill

Welfare Reform Bill



The Committee consisted of the following Members:

Chairmen: Mr. Jim Hood, Mr. David Amess
Banks, Gordon (Ochil and South Perthshire) (Lab)
Baron, Mr. John (Billericay) (Con)
Clappison, Mr. James (Hertsmere) (Con)
Harper, Mr. Mark (Forest of Dean) (Con)
Howell, John (Henley) (Con)
Jones, Helen (Warrington, North) (Lab)
Lilley, Mr. Peter (Hitchin and Harpenden) (Con)
McKechin, Ann (Parliamentary Under-Secretary of State for Scotland)
McNulty, Mr. Tony (Minister for Employment and Welfare Reform)
Mason, John (Glasgow, East) (SNP)
Munn, Meg (Sheffield, Heeley) (Lab/Co-op)
Plaskitt, Mr. James (Warwick and Leamington) (Lab)
Robertson, John (Glasgow, North-West) (Lab)
Rowen, Paul (Rochdale) (LD)
Shaw, Jonathan (Parliamentary Under-Secretary of State for Work and Pensions)
Ussher, Kitty (Parliamentary Under-Secretary of State for Work and Pensions)
Liam Laurence Smyth, Committee Clerk
† attended the Committee

Witnesses

Mr. Tony McNulty, Minister for Employment and Welfare Reform, Department for Work and Pensions
Jonathan Shaw, Parliamentary Under-Secretary of State (Minister for Disabled People), Department for Work and Pensions
Kitty Ussher, Parliamentary Under-Secretary of State, Department for Work and Pensions
Sharon White, Director, Welfare to Work, Department for Work and Pensions
Mary Helson, Deputy Director in the Office for Disability Issues, Department for Work and Pensions

Public Bill Committee

Thursday 12 February 2009

[Mr. Jim Hood in the Chair]

Welfare Reform Bill

Written evidence to be reported to the House
WR 03 Families Need Fathers, Resolution, The Centre for Separated Families, Jewish Unity for Multiple Parenting, Mothers Apart from their Children
9 am
The Committee deliberated in private.
9.2 am
On resuming—
The Chairman: Good morning. It is a pleasure to have everybody here. I do not know whether this is a first for the House but it is certainly unusual to have three Ministers giving evidence and a Minister on the Committee available to ask questions. Because we need to finish at 10.25 am, we need to get on with the business. I will ask the Minister whether he needs to introduce his two colleagues.
Mr. McNulty: No, I think they can introduce themselves.
Sharon White: I am Sharon White, director of welfare to work at the Department for Work and Pensions.
Mary Helson: I am Mary Helson, deputy director at the office for disability issues, working on right to control.
Q 116Mr. Mark Harper (Forest of Dean) (Con): I would like to start with the right to control area of the Bill. This question is probably best directed at Mr. Shaw and then perhaps Ms Helson.
Clause 29(2) starts well by being drawn widely across a range of areas affecting somebody’s whole life. Unfortunately, it gets rather narrower in subsection (5) where it excludes social care services and a number of other things. I have read the reasons for that—that those areas are already controlled under other legislation—but it seems to me that we run the danger, with a number of Government Departments moving in this direction, of ending up with individuals having a number of individual budgets and a number of different funding streams and not being able to draw all those things together. Why not be braver and encompass a range of funding streams across Government Departments to give individuals a genuine right to control, so that they do not have to fit their lives round departmental boundaries but Departments try to fit their service delivery around individual lives?
Jonathan Shaw: Good morning. One could say that if we were very prescriptive we would be in danger of constraining the possibilities under right to control. That is why we have said that we want to have the trailblazers, which I know you asked the chief executive of RADAR about. We want to have them so that we can look at all the possibilities. If we are too prescriptive at this stage, we might need to come back and have further legislation. In addition social care is there, so there will be a danger of duplicating that legislation. I believe there is sufficient legislation; we should not create confusion by being prescriptive in the Bill.
We have provided the Committee with a helpful paper which includes all the various parts of the legislation. It is right to have as wide a scope as possible. We have set out our stall to ensure that local authorities can act in partnership with ourselves and other public bodies. Most importantly, that has to be underpinned by working with disabled people and their organisations to find out what works.
Q 117Mr. Harper: May I hear from Ms Helson and then come back to the Minister?
Mary Helson: The intention is that it should be as seamless as possible for an individual disabled person. There is an absolute desire to avoid confusion and duplication of the primary powers. The alignment at local authority level will ensure that it is possible to join all those different pots of money together. We are starting that through the project steering group. It will involve the Department of Health and the Department for Communities and Local Government. That will ensure that we join up at all the different levels where necessary. In the pilots we will need to ensure that the transformation of adult social care, which is already very advanced, is integrated sensibly with the personalisation on the disability employment programmes, where we need to make further progress.
Q 118Mr. Harper: I am still not entirely convinced, and we will have more debate on this when we get to the detailed consideration of the Bill. First, the legislative framework for adult social care is in place, but it is not very advanced in the sense of the number of people in the country who have an individual budget. One of the witnesses on Tuesday was Paul Davies, the director of adult social care at Oldham. His authority has a fifth of the national total of people on adult social care who have an individual budget. The number of people with an individual budget in adult social care is very disappointing. Picking up the point that you both made about pilots or trailblazers, he said in his evidence that he understood why people wanted a pilot but, having rolled this out to everybody in his authority, he was convinced that there was sufficient evidence about what works and how to proceed, and he said unequivocally that he would like the Government to press forward with this. That is broadly my view.
Have you considered the alternative to a piloting system, which is putting the legislation in place and being very clear with authorities about the direction that you want to go? Obviously some local authorities, and possibly even some parts of the DWP and its delivery organisations such as Jobcentre Plus, would move faster. You could then use those leading organisations to learn the lessons—to see what worked—and then roll out to those that were slower. That would set a clearer direction and would be more likely to lead to this concept taking hold than running pilots for three years, during which a lot of authorities will be tempted to sit back and wait and not engage with the process because they are not sure that it is inevitable.
Jonathan Shaw: It is not just social care that we are talking about in terms of the possibilities. We have also referred to disabled facilities grants. One can envisage a number of education grants. There is also Supporting People. We can also see this in the context of care and support. We will be producing a Green Paper on what, one could argue, will be one of the most important pieces of social policy and change that we need, in terms of delivery and affordability. It would be wrong to constrain ourselves at this stage and cut off possibilities.
Of course, local authorities are at different stages. I think there is generally a consensus belief in the devolution of power and in local authorities making those decisions for themselves. Your prescription would fly in the face of that. We need to strike that balance. We have set out our stall and have been clear that that is the direction of travel that we want, but we cannot see this in the context of social care alone. We need to pull together other aspects and other funding streams. We know where we want to be and we need to provide the flexibility to bring people with us, and, importantly, involve disabled people.
Disabled people say to me—and I am sure that they say it to you, Mark—“Nothing about us without us.” That is absolutely right, hence the need for the trailblazing and piloting. In the previous evidence session rural matters were discussed, so we need to pilot in different areas to find out what works. We cannot limit this to social care. If we did, we could find ourselves having to come back for further legislation. The flexibility is built in and we need to establish what works in conjunction with disabled people and bring people with us.
Mr. Harper: I have a final two-part question on this clause. First, I am saying the opposite about constraining. When I read through the Bill I was encouraged that clause 29(2) was all-encompassing, covering a range of areas. It is later narrowed by excluding some other funding areas. If you left those bits out, you would enable individuals to start from looking at how their life works, pulling in the funding streams from across Government. You would be able to give yourselves the powers to do that.
My second concern about the piloting is the opportunity cost of not doing this fast enough. You will know from your visits that when you talk to people who have managed to get an individual budget for social care, they say that their lives have been transformed and enhanced and that a huge difference has been made. There may be snags along the way that need to be sorted out, but I would like to be able to bring help faster to all those people who will not get the opportunity to get control of their lives in the next three years or more. In the legislation, you have powers to run a further set of pilots after that; it seems that we are in danger of not making this happen fast enough for all those people for whom it would be a life-enhancing experience.
Jonathan Shaw: The legislation exists for local authorities to provide individual budgets to social care. If you say that we should put that in legislation and make them do it, I would say that that flies in the face of working in partnership and the devolution agenda. That legislation already exists. To repeat my previous point, this is not only about social care. At the moment the legislation allows social care as the gateway to individualised budgets. I have referred to disabled facilities grants and education grants, and we are also looking at making supported employment available. We need to understand how that will work. Of course, there are implications for services of devolving to the individual the allowance of money for their supported employment and there may be implications for the ability of wider parts of the service to continue.
We are clear that the need to pilot is not born out of a desire to hold up people’s ability to have individual budgets to live their life; rather, having read the transcript endorsed by RADAR and other leading organisations that I have spoken to, it is more about finding out what works and involving disabled people themselves.
Q 119Mr. Harper: Does Ms Helson have anything to add to the Minister’s comments?
Mary Helson: I wish to raise one point of clarification about the low number of people who have individual budgets. Part of the Bill is setting out a framework for people who do not want to control the cash themselves. So although it may not appear like an individual budget, people will have choice and control over the services that they are using.
Two strong messages came through in our discussions on the Green Paper. One was from the local authorities involved in the individual budgets pilots, which provided a contrast with that of Paul Davies, who was very enthusiastic and clearly at the cutting edge of what can be achieved. Local authorities that had had experience of the individual budgets pilots advised us to test this process further.
The other message came through in our discussions with disabled people and with the advisory groups, which are as keen as anybody to see this transformation applied more widely; they emphasised how important it was to get this right. Those people are conscious that the structure of user-led organisations and the availability of advocacy throughout the country—Liz Sayce touched on this in her evidence on Tuesday—is simply not embedded enough to deliver a sustained programme of personalisation. Although the Government are completely committed, disabled people want us to move as swiftly as possible and public authorities are lined up to move in this direction, we want to make this a sustainable change that really makes an improvement to people’s lives.
Q 120Mr. James Plaskitt (Warwick and Leamington) (Lab): Could the Minister explain the thinking behind the proposal in the clauses dealing with the social fund to bring in external providers to assist with the process?
Kitty Ussher: Certainly. We want to move towards a type of social fund—this is really only the beginning of the journey—that does not simply ask people precisely what they want to spend the money on, but instead puts the resources into supporting people to manage all their budgets more effectively. However, by saying that I am not implying in any way that when people get themselves into real difficulty that is always their own fault: all sorts of things happen that might cause them to need a loan. However, let us face it: some organisations have as their core function the type of budgeting and debt advice that the DWP does not routinely provide.
We wanted to be able to have the legal ability to work with outside organisations if—it is a big “if”—we thought that might help us, in the future, achieve our vision of a reformed social fund that provides financial advice as well as finance. We wanted to take the opportunity in this Bill to take that power to give us a broader spectrum of policy options in future.
 
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Prepared 13 February 2009