Select Committee on Social Security Minutes of Evidence


Memorandum submitted by Disability Living Allowance Advisory Board (DLAAB) (DLA 4)

The Future of Disability Living Allowance and Attendance Allowance (DLA/AA) - A DLAAB Discussion Paper (DLA 4)

FOREWORD[1]

  The Disability Living Allowance Advisory Board (DLAAB), is an independent statutory body which advises the Secretary of State on matters relating to Disability Living Allowance and Attendance Allowance.

Approximately half the Board's 20-strong membership comprises people with disabilities together with one person who is a carer. The remaining members are health professionals, whose range of expertise covers the whole spectrum of physical and psychological disability. In the latter part of 1997 the Board was invited by the Parliamentary Under Secretary of State, Baroness Hollis, to present her with its ideas concerning the current working of these two Benefits, together with suggestions as to how they might be improved.

  The resultant document, which follows, is a set of considered ideas and recommendations drawn up for ministers, by the Board, which has, over the past five and a half years, accumulated an unparalleled "warts and all" understanding of the inner workings of DLA and AA. This has been achieved by in-depth study of over 5,000 dossiers relating to individual claimants of the two Benefits. As revealed in the accompanying discussion paper, the Board has serious misgivings about the way that these Benefits are currently structured and administered. The paper does not claim, in any sense, to be a prescription for the putting to right of all the ills which currently beset disability benefits. It does, we suggest, point the way towards focusing the available resources in a more equitable fashion on those in greatest need, allowing them to lead independent and fulfilling lives. It is very much hoped the report's publication at this time will help to inform the public debate on this most important issue of current national interest.

Professor Rodney Grahame MD, FRCP, FACP
Chairman

Miss Susan Knibbs CQSW
Vice-Chair

March 1998

1. INTRODUCTION

  1.1 In the latter part of 1997 the Disability Living Allowance Advisory Board (DLAAB) was invited by the Parliamentary Under Secretary of State, Baroness Hollis, to present her with its ideas concerning the possible ways that DLA/AA and its administration might be improved, in order to ensure that the benefit is targeted to those most in need. The Board recognises that this is a critical period in the development of national policy on welfare reform, and welcomes this opportunity to contribute.

  1.2 The Board (DLAAB), established in September 1991, is an independent body charged with the statutory responsibility of advising the Secretary of State on matters relating to DLA/AA. The Board's functions in relation to DLA and AA are set out in Section 175 of the Social Security Administration Act 1992. Its membership represents a balance of people with disabilities, a carer and a range of health professionals specialising in disability matters. All Board members are appointed by the Secretary of State, following a selection process which involves advertisement, short-listing and interview in accordance with the Nolan principles. The Board's statutory duties are:

  In addition the Board assists in the further education of DLA/AA Adjudication Officers (AdjOs) by conducting Workshops, contributing to The Disability Handbook and publishing a regular "DLAAB Update", which is circulated to all AdjOs and non-medical members of Disability Appeal Tribunals.

  1.3 Since DLA/AA was introduced in 1992 the Board has in the course of 27 studies commissioned by the Secretary of State, examined in-depth over 5,000 dossiers covering a wide range of disabling conditions. This work has been undertaken in "Small Boards" comprising a Chair plus two or three other Board Members, together with members of the Secretariat and often in the presence of visiting AdjOs and/or Benefits Agency Medical Services (BAMS) doctors. The application form (the claim pack) as well as all the further evidence was examined in each case, and discussed before and after the AdjO's decision was revealed. Analysis of information gained forms the basis of this report. With this wealth of experience extending over five and a half years, and by virtue of its unique composition. The DLAAB is well placed to comment on the operation of the benefit since its inception.

2. BACKGROUND

  2.1 The introduction of DLA in 1992 broadened the distribution of the Benefit to include those with lesser degrees of disability by introducing the lower rate of the mobility component and the lowest rate of the care component, at the same time introducing self-reporting by applicants (using the "claim pack") on the one hand, and adjudication (formerly a medically-driven process) by lay officials (AdjOs), on the other.

  2.2 There is no doubt that the number of people receiving benefit is far in excess of that originally predicted.

The Board's studies clearly indicate that the following factors are responsible:

    (b)   the increased help that many applicants receive from welfare rights personnel and disability organisations;

    (c)   a significant rate of incorrect payments (Comptroller and Auditor General, 1998) and a noticeable degree of over-statement of need;

    (d)   Adjudication Officer practices: - a combination of the following:

         -    an insufficient understanding of the disabling condition;

         -    inadequate corroboration of the diagnosis by the applicants' own doctor;

         -    failure to request adequate medical evidence;

         -    failure to select the most appropriate source of medical evidence;

         -    misinterpretation of the available medical evidence;

         -    managerial pressures to achieve rigorous throughput targets and to reduce administrative costs;

         -    a widespread tendency to give life awards, which overlooks the potential for improvement in the claimant's condition from currently available treatment or the possible impact of future advances in medicine and surgery;

    (e)   a high reversal rate of disallowances either at the Benefits Agency review stage or at appeal (Disability Appeals Tribunal);

    (f)   a series of legal judgments (Commissioners, Court of Appeal, House of Lords), has progressively broadened entitlement away from the original policy intention;

    (g)   a significant degree of avoidable physical and psychological disablement resulting from the lack of investment in local clinical and rehabilitation services leading to delayed or ineffectual management of treatable diseases.

  Statistical confirmation for many of these assertions was derived from "A Study of Disability Living Allowance and Attendance Allowance Awards" commissioned by the Department, involving 1,200 customers undertaken in 1997. In this study the award in question was deemed by the Board to be "in conflict with the facts" in two thirds (63 per cent) of cases. In this situation, it is the Board's view, that the current administration of DLA and AA is seriously flawed.

  2.3 The Board acknowledges that any suggestions it makes must take account of the following requirements:

    2.3.1   Any changes must be seen to be fair and equitable to people with disabilities.

    2.3.2   A convincing case must be made for any suggested removal or extension of entitlements.

    2.3.3   Limited resources should be targeted to those in greatest need. At the same time the genuine needs of people with lesser degrees of disability should not be neglected.

  2.4 The Board is acutely aware that DLA/AA is but one of many benefits administered by the Department of Social Security for disabled people, and that the other benefits are outside the Board's sphere of influence or experience. It acknowledges that changes in DLA/AA are likely to impinge (mainly by passporting) on related benefits applicable to disabled people and their carers, notably Incapacity Benefit, Disability Working Allowance, Invalid Care Allowance, Income Support disability premiums and Severe Disablement Allowance.

  2.5 In drawing up its suggestions the Board has had in the forefront of its mind both the Government's determination to modernise the delivery of Social Security services, and the Government's overall "Welfare to Work" strategy.

3. THE DLAAB'S DISCUSSIONS

  3.1 In its considerations the Board addressed a number of fundamental questions. These included:

    (ii)   "Who is the benefit for?"

    (iii)   "How should claimants' needs be ascertained (by subjective or objective tests)?"

    (iv)   "How can the benefit be targeted to the right people?"

    (v)   "How should the benefit be administered?"

    (vi)   "What are the benefit's links to community care?"

  3.2 During the discussions the following areas were highlighted and questions raised:

    3.2.1   Status of benefit

        (a)   Taxation - should the levels be raised and the benefit then taxed; thereby granting more money to the least well off among the less well off? Originally Mobility Allowance was taxable but this was later abandoned. Blind people currently get a tax allowance, which would sit uncomfortably with a taxable benefit.

        (b)   Means-Testing - should the benefit be means-tested, and if so, on whose income: the claimants alone, or including that of their partner? This does raise questions as to the level to be set. Means-testing of care and mobility allowances would be seen to be inequitable in the absence of means-testing for say, hospital care or other benefits such as those in Industrial Injuries and War Pension schemes.

       Taxing and/or means-testing might be seen as unfair as benefits would inevitably be reduced to some. A non-taxable, non-means-tested benefit does provide a guaranteed sum of money for severely disabled people whether or not they are in work. Furthermore, being an easily calculated sum, it does assist in assessing whether a return to work is practical. Moreover, taxing or means-testing benefits intended to offset the extra costs of disability could act as a disincentive to return to work.

    3.2.2   Source of payment - should DLA be paid to local authorities (LAs) to provide services, rather than direct to the customer to pay for care costs? (especially in view of the fact that people now have to pay for meals-on-wheels, aids-to-daily-living, etc.). Against distributing disability benefits through local authorities is the wide variation between different LAs in their treatment of identically disabled people, if for no other reason than financial management. Furthermore, LAs would be inundated with demand for help from beneficiaries who currently make no demands on them. Also it would fly in the face of current trends towards direct payments. Disabled people and a number of LAs welcome direct payment schemes which have recently been the subject of legislation. Payment of nationally established benefits provide a secure and certain income that is not threatened by the variations in LAs' management efficiency and local popular demands that too easily ignore minority interests.

    3.2.3   Entry gateways - should there be a two stage process - initial eligibility dependent upon the type of severe impairment or impairments (defined in ways similar to Industrial Injury Benefit or War Pensions), then a second stage in which the degree of need generated determine the level of award? The administrative and medical pros and cons of such a scheme would need to be explored.

    3.2.4   Level of award - the present structure allows 11 different levels of award to be made, and may reward some claimants twice for the same problem, e.g. Lower Rate Mobility and Middle Rate Care awards for supervision needs indoors and outdoors. Would there be merit in grading the needs of people who passed the second stage of assessment on a single scale according to severity of overall disability (as presently happens with War Pensions, Industrial Injuries, etc.)?

    3.2.5   Targeting - the needs of certain groups of disabled people, e.g. those with impaired hearing or mental illness, which do not fit comfortably into the present framework of DLA/AA would be addressed if they met the impairment threshold, e.g. by virtue of having 80 per cent hearing loss on audiogram or a certain frequency and/or duration of hospitalisation for chronic mental illness. They would not be considered if they did not meet the impairment threshold.

    3.2.6   Method of adjudication

         -    should lay assessment be modified by the introduction of an adjudication panel comprising an Adjudication Officer (AdjO) and medical or para-medical expertise, similar in form to that of an appeal tribunal?

         -    should AdjOs be required to send every case for consideration by the Benefits Agency Medical Service (BAMS) for approval/adjudication?

         -    should all cases be sent to BAMS initially, prior to lay assessment as currently occurs with Special Rules cases?

         -    should there be greater involvement of Examining Medical Practitioners in providing more objective medical evidence?

    3.2.7   Accountability - should recipients be asked to account for their use of the payment? - if so, who would decide what was a valid use?

         -    in renewal cases, should a question concerning how the customer had benefited from an award of DLA/AA be inserted?

         -    should the benefit be linked (in part) to the take-up and successful completion of rehabilitation opportunities offered?

         -    should the benefit be linked (in part) to a return to work in those applicants deemed fit enough to do so - ("Welfare to Work")?

    3.2.8   Extension of DLA to all ages - should there be a uniform benefit for all ages, rather than the current system of having two separate benefits (DLA for those under the age of 65 and AA for those over 65)? The present arrangement is seen to be discriminatory to applicants over the age of 65, who are excluded from the mobility component under existing rules. There was considerable support for this view within the Board, despite estimates that the extra cost might be prohibitive. Some concern was expressed that the Mobility component might become an invariable entitlement that comes with ageing. The Board expressed the hope that the changes in the regulations, assessment and management proposed below could allow the present discrimination against elderly disabled people to be removed as a result of a realignment of priorities.

4. RECOMMENDATIONS

  The following suggested recommendations are put to Ministers by the Board:

  4.1 "What is the benefit for? " The purpose of benefit should be restricted to the following areas:

  4.2 "Who is the benefit for? " The benefit should be aimed at the most severely disabled. Future legislation should stipulate exclusions from the benefit as well as inclusions, in order to avoid the current situation in which the benefit entitlement has been stretched well beyond the original policy intention of the legislation by Commissioners' decisions. For example, the care element might specify dependence on the obligatory need for help from another person, equipment or statutory services; specify the means and extent to which this financial benefit could be used to offset the cost of care or equipment required; and include the circumstances in which benefit payment would continue and be terminated. It is suggested that in future legislation benefit entitlement could be detailed in secondary legislation (Statutory Instruments) thereby allowing Parliament to reimpose what is intended more easily than at present.

  4.3 "How should needs be ascertained? " Self reporting is desirable, but experience has shown that it is unreliable as a result both of over- and under-statement. As the sole source of information (or in conjunction with inadequate medical or paramedical corroborative evidence) it predisposes to poor adjudication decisions. Furthermore, the act of completing the claim pack as currently designed is, in itself, a time-consuming and onerous task even for the hardiest applicant and his or her helper. The Department of Social Security ought to play a more active role in helping applicants with form-filling and in advising them on checking entitlements in the light of changes in their condition.

    4.3.1   There was general support amongst Board members in favour of exploring a possible semi-objective quantitative "All Living Test", along the lines of the "All Work Test" developed for Incapacity Benefit.

  4.4 "How can the benefit be best targeted? " Life awards should be the exception rather than the rule. The duration of all awards should always assume that there may be advances in treatment and management in the future which may reduce the claimant's disabilities.

    4.4.1   The Board strongly believes that in any new legislation vague terms such as "significant portion of the day" and "virtually unable to walk" should be avoided with more reliance placed on the use of more specific descriptors such as "continual supervision".

    4.4.2   The Main Meal Test, which was introduced as "a theoretical test" for the Lowest Rate of the care component, has been liable to misinterpretation and abuse. The Board proposes that it should be abolished. Any future legislation or regulations should be based on practical evaluations of what the person is able to do (not what they actually do) rather than on abstract legal concepts.

    4.4.3   The Middle Rate Care (indoor day supervision) and Lower Rate Mobility (outdoor supervision) components of DLA should be combined (at a level to be determined) in order to remove the current duplication and be replaced by a unified single lower rate for outdoor and indoor supervision. A Lower Rate Mobility award might be considered for those with a physical disorder who are able to walk more than a few paces but less than, say, 100 metres, whilst retaining the Higher Rate Mobility award to those who are unable (or barely able) to walk as judged by the distance, time, speed, manner of walking and the effort involved due to a recognised abnormality of an anatomical structure which is highly significant from the medical point of view. The Board is concerned at the large number of applicants who are currently awarded the Higher Rate Mobility component inappropriately.

  4.5 "How should the benefit be administered?" The Board proposes that a simpler form of self-description of the claimant's capabilities should be retained, and that the assessment should be based on a combination of self-reporting together with mandatory professional corroboration. In many cases this need involve no more than an authorisation (a) to approach the claimant's General Practitioner for a factual medical report, including a summary of relevant hospital (and other) assessments and investigations, and (b) in the case of children, a school report. These reports would be considered by BAMS, who would decide if the applicant was potentially eligible. If so, he/she would be invited to have a disability assessment, the emphasis of which would be on what the individual can do, rather than, as currently, on what he cannot.

    4.5.1   The assessment should take a multidisciplinary approach and include a review of any rehabilitation undergone and the provision of aids to mobility and daily living, already received and the extent to which future services of this type might be a more appropriate way of helping the disabled person than a simple award of a cash benefit. The assessment should be made by doctors, nurses, physiotherapists and occupational therapists trained in all aspects of disability and rehabilitation (including mental health), preferably working as a team. The Disability Assessment Diploma currently under development by the Department's Chief Medical Adviser with the Royal College of Physicians could be extended to cover these additional health professionals through their respective professional associations. The question of the availability of these health professionals in sufficient numbers, their training and the overall feasibility of this proposal would require careful consideration. This specially trained professional team could in the longer term take over the role currently played by Adjudication Officers.

    4.5.2   Lay Adjudication - The Board proposes that lay adjudication be retained in the short term (i.e. until the multi-professional assessment teams proposed in 4.5.1 above are in place), but that AdjOs be required to request medical and other corroborative evidence and to seek BAMS advice in a more structured way. There should be far greater education, and training in the special needs of disabled people for both AdjOs and BAMS medical staff.

  4.6 "What are its links to community care?" Having considered both sides of the arguments posed in paragraph 3.2.2 above, the Board formed the majority view that on balance a cash payment is preferred to the provision of services by Local Authorities or Health Authorities, as this gives the disabled person control over his or her own destiny, and encourages independence and responsibility. Claimants can purchase care at a time and of a form suitable to their requirements, rather than having to rely on services provided at the behest of the local authorities/health services. Some of the benefit might be earmarked specifically for the purchase/lease of equipment which will minimise dependence on help from other people, or health or social services.

5. CONCLUSIONS AND FINANCIAL CONSIDERATIONS

  5.1 The Board is aware that the public purse is unable to satisfy all the mobility and care needs of all people with disabilities, and that the government is faced with a major challenge in determining priorities and in making difficult choices.

  5.2 The proposals submitted are aimed at improving the targeting of the Benefit and the stewardship of public funds. The Board believes that a correctly administered benefit is capable of channelling funds to those who need it most, and, at the same time, reducing the burden on the Exchequer.

  5.3 We appreciate that many of our proposals would need to be costed in detail, but we trust that Ministers will look favourably upon them as informed and practical suggestions which would help in meeting their overall policy objectives.

Disability Living Allowance Advisory Board
March 1998


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