Select Committee on Social Security Fourth Report


II.  BACKGROUND TO THE INQUIRY

 The history and purpose of DLA

  4. After the second world war, the main provision for disability was through sickness benefits and the compensation schemes for war or industrial injury. The modern DLA has its origins in the 1970s when Attendance Allowance (AA) and Mobility Allowance (MobA) were introduced for severely disabled people.

Attendance needs

  5. The AA was introduced in 1970 for those requiring attention or supervision during both day and night. The original intention was to help people whose disability was so severe that they needed 'attendance' from another person. Originally flat rate, a lower rate was added two years after its introduction to cover cases where attendance was required during either the day or the night.

Mobility

  6. Assistance with mobility needs was provided more in kind than in cash before the 1970s, beginning with invalid tricycles ("trikes") for war pensioners in 1921 and gradually extended under NHS legislation to civilian disabled people. Initially the three-wheeler was available irrespective of employment status to drivers who either had lost both legs, or were unable to walk because of locomotion, lung or heart problems. Three-wheelers were also available to help the work prospects of those with a less severe disability but whose walking ability was seriously limited and who required transport to enable them to get to and from work. A 1974 report recommended that the dangerous trikes should be replaced by a small car, and help restricted largely to drivers.[4] The Labour government instead decided on a flat-rate, non-contributory cash allowance. In 1976, the MobA became payable. Trikes were phased out in favour of the allowance, and the Motability scheme set up.[5]

 The introduction of DLA

  7. DLA was introduced in 1992 in recognition of the limitations of AA and MobA in not meeting the needs of some groups of disabled people, e.g. people with learning disabilities and people with visual impairments. Targeted on severity categories 5 and 6, some 140,000 people were expected to claim the new lower rate of care, and 150,000 the lower rate of mobility.[6] DSS research showed that the lower rates have been well-targeted on the intended groups, but that people receiving lower rate awards were scarcely less severely disabled than people on the higher rates, and that a majority of lower rate recipients were more severely disabled than anticipated.[7] Although intended to be simpler, the new DLA comprised eleven different levels of benefit with nine different criteria. A major objective of the 1992 changes was the introduction of 'self-assessment', enabling disabled people to describe the impact of their disability rather than relying on routine medical assessments as was the case with AA and MobA.

Disability Living Allowance : brief description

  8. Disability Living Allowance (DLA) is a benefit based on care and mobility needs, payable to people who become disabled before they reach the age of 65.[8] DLA comprises two components, one for care and the other for mobility needs. Either or both components can be payable to people who satisfy the care and mobility tests, without a test of means, employment record or national insurance contributions. DLA is not taxed. Benefit can be made for an indefinite period ('life' awards) or for a fixed term. DLA may operate as a 'passport', giving automatic entitlement to other benefits.

The care component

  9. There are three levels of payment based on the frequency and amount of care or supervision required. The weekly rates from April 1998 are :

Highest rate    £51.30 —   care required during the day and night

Middle rate    £34.30 —   care during either the day or night

Lower rate    £13.60 —   people who need attention or supervision for a significant portion of the day, or are unable to prepare a cooked meal (the "main meal test").

The mobility component

  10. There are two rates of payment for the mobility component. The higher rate is payable to a range of disabled people, including those who are unable to walk or are virtually unable to walk or have no legs or feet, people who are deaf and blind or are considered to be 'severely mentally impaired' with behavioural problems. The lower rate is payable where outdoor mobility is limited without guidance or supervision from another person. The weekly rates from April 1998 are :

Higher rate    £35.85

Lower rate    £13.60.

Caseload and spending

  11. Since DLA was introduced in 1992, there has been an increase in caseload and spending on DLA, the numbers having doubled from one million to almost two million in 1997/98.[9] During the same period DLA spending has gone up from £2.2 billion to £5.0 billion at 1997/98 prices.[10] Several explanations have been put forward for this growth including the consequences of closing long-stay hospitals,[11] demographic changes, take-up and advertising campaigns.[12] Recent estimates of a greater prevalence of disability alongside a low take-up rate (discussed in paragraphs 15 and 16) suggest that there could be further increases in the numbers of disabled people claiming the benefit.


4   Mobility of Physically Disabled People, Lady Sharp, DHSS 1974. Back

5   See NAO Report on Motability, HC 552 of 1995-96, and Twentieth Report from the Committee of Public Accounts, 1997-98, Motability, HC 444. Back

6   See Appendix 10 for pen pictures indicating how the OPCS severity scale is used. Back

7   Evaluation of Disability Living Allowance and Attendance Allowance, DSS Research Report, 41, 1995. Back

8   Older people may be eligible for the Attendance Allowance (AA). Back

9   Ev.p.54 para 13 and Ev.p.70 Table G9. Back

10   Ev.p.54 para 13 and Ev.p.71 Table G10. See also Appendix 3 and Q 123. Back

11   Appendix 3. Back

12   Q 123. Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 1998
Prepared 20 May 1998