| Previous Section | Index | Home Page |
The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond): I congratulate the hon. Member for Twickenham (Dr. Cable) on securing this debate and on his diligence in pursuing this issue on behalf of his constituents. I am grateful to have the opportunity to explain the basis both of entitlement to disability living allowance for disabled people who move into care homes, and of recovery of benefit when overpayments occur. I assure him that the Department attributes the utmost importance to ensuring that people receive the amount of benefit to which they are entitled. This case provides a stark illustration of why we need to do so.
Towards the end of his remarks, the hon. Gentleman asked me to reconsider waiving recovery of the outstanding balance, and I want to make it clear at the outset that I have done so. We do not intend to make further recovery of that outstanding balance from Mrs. Redman. As he rightly points out, this is due to the exceptional circumstances of the case. I shall say something more about that in a few moments.
I further reassure the hon. Gentleman, the family and the citizens advice bureau that there has been no dragging of feet on this issue. I note that he does not put his name to that suggestion, but I would not wish the family to consider it to be the case.
18 May 2004 : Column 958
It is a fundamental principle that those in receipt of benefit or their appointed representatives ensure that they continue to meet the entitlement criteria for that benefit and report any changes in their circumstances to the appropriate benefit-paying body. Any overpayment of benefit that arises owing to those criteria changing and that change not being reported in a timely way will normally be recovered. We have a duty to the taxpayer to ensure that overpaid benefit is recovered.
In pursuing such recovery, the Department seeks to do so as quickly and effectively as possible but, as the hon. Gentleman acknowledged, without causing undue hardship. When representations are made that recovery will cause hardship, regard is had to an individual's circumstances in determining the rate and method of recovery. Again, as he acknowledged, that was the tone in which I wrote to him in January on this issue.
There are certain exceptional circumstances in which recovery of an overpayment may not be pursued. That would normally be when recovery would be seriously detrimental to the health or welfare of the individual or a member of their household. Each case is looked at on its individual merits. In this case, the initial decision not to waive recovery was based on the fact that there was sufficient capital available to enable recovery without apparently causing undue hardship. On reflection, it is accepted—and I accept this—that due regard was not had to the exceptional circumstances of the case.
Those circumstances involve, in particular, the great personal sacrifice that Mr. and Mrs. Redman have made to support their son over many years; the fact that the overpayment arose in good faith; the fact that they have not personally gained financially; and the fact that they appear not to have been correctly advised by those bodies supporting them. If the correct course had been taken and the appropriate benefit claimed, the loss to public funds would have been significantly reduced. I have therefore agreed that the Department will not seek recovery of any of the remaining overpaid benefits. Mrs. Redman has made a part-repayment, in view of which I will arrange for officials to consider a compensation payment. I hope that the hon. Gentleman agrees that this is quite an exceptional case and is worthy of such an exceptional decision.
In more general terms, disability living allowance is a tax-free, non-contributory and non-means-tested benefit that is paid as a contribution towards the extra costs faced by severely disabled people as a result of their disabilities. Entitlement to the allowance is linked not to specific disabling conditions but to the level of someone's need for help with personal care or with getting around. It therefore has a care component and a mobility component. In broad terms, entitlement to the care component depends on the effect that physical and/or mental disability has on someone's need for personal care from someone else, while entitlement to the higher rate mobility component depends on whether physical disability means that they are unable, or virtually unable, to walk. Entitlement to the lower rate mobility component depends on whether a physically and/or mentally disabled person needs supervision or guidance from another person when walking outdoors on unfamiliar routes.
When someone goes into a care home, as in John's case, their needs for personal care should be met in the home. The cost of meeting those needs is included in the
18 May 2004 : Column 959
cost of their place in the home. Local authorities, rather than the Department for Work and Pensions, are responsible for providing help with those costs. That makes sense, because local authority social services departments provide care home accommodation and have the necessary skills to arrange suitable placements in private care homes. When local authorities assess how much help a person needs with their care home costs, they ensure that they are left with a standard amount for their personal expenditure. To pay disability living allowance for someone's personal care needs when account has already been taken of those needs would amount to duplicate provision. Payment of the care component therefore stops after 28 days' residence in a care home.
Different considerations apply to the mobility component of disability living allowance. Care homes are not funded to provide for residents' mobility needs, so payment of that component is not affected by residence in a care home, and local authorities cannot take account of it when assessing someone's need for help with the cost of their placement. Disability living allowance has the advantage of providing flexible help for disabled people, whose needs can vary greatly and change significantly over time. There must therefore be
18 May 2004 : Column 960
ongoing discussion of who should be entitled to it. The rules have changed over the years to reflect the discussion, but the discussion itself will continue. That dynamic process helps to ensure that disability living allowance can continue to provide relevant help for disabled people who face costs over and above those of their normal daily living needs, for which other benefits are available. At the same time, it will always produce differences of opinion about the qualifying criteria for receipt of the benefit.
In conclusion, I offer my apologies for any distress caused to Mr. and Mrs. Redman and, indeed, John. They will accept that when an overpayment is made, even when it is the result of an honest error by the person receiving payment, we have a responsibility to recover it. In this case, however, there were exceptional circumstances, which I am pleased we can now acknowledge. I congratulate the hon. Gentleman on bringing the case to the attention of the House, and I hope that he is satisfied that we have reached a suitable conclusion for the family and especially for John.
Question put and agreed to.
- Adjourned accordingly at twenty-three minutes past Seven o'clock.
| Index | Home Page |