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Mr. O'Brien: I think that in reading that out, Mr. O’Hara, it is the first time that you have had to make a speech in this Committee.
This is a large bunch of amendments, and it will obviously detain us for a while. They try to press on a number of points to get complete clarity, and to explore the nature of the pilots of direct payments. There is a general question why it is necessary to frame the legislation in pilot terms. We have heard the Minister pray for a degree of caution, but that might need to be contrasted with the phrases that have been used by his former ministerial colleagues.
Section 7 of the regulatory impact assessment notes:
“Some benefits of increased contestability may arise during piloting; however, the full benefits are unlikely to arise unless the policy is introduced nationally.”
It will be neater to make the legislation underpin the provision of direct payments, with the Secretary of State retaining powers of guidance over when those powers might be used for, say, the first three years. Removing such legislation from the statute book would be no greater palaver than removing this, if Parliament rejects direct payments after piloting. If direct payments were accepted, no legislative changes would be made. As I think that I have already indicated, it may be of some interest, or even comfort, that the official Opposition are committed to the direct payments anyway.
The question of timelines might be something in people’s minds, in giving the options for the future. A couple of questions arise from the impact assessment regarding that. The first is a quick aside as to which Minister signed the RIA. For the first time, none of us can work out which signature has been used. It is an odd RIA, because words rather than figures predominate next to the pound signs. Will the Minister explain how the net benefit of pilots is higher than the net benefit of straight introduction, and how the cost of straight introduction can be uncertain when the costs of pilots is established as a rather precise £23 million? I am interested that the RIA also mentions a notional health budget, which is currently legal. The patient would not have the money—we have almost discussed that already—but would be able to see the pot, rather like the indicative budgets in practice-based commissioning. The Committee may be aware that, when he was a Health Minister, the Secretary of State for Health proposed giving people an indicative bill at the end of their NHS treatment. I am therefore interested to find out whether that is something the Minister would support, because it is patently relevant to the process of pilots and the particular arrangements on direct payments.
Before we debate the amendments, it is appropriate to remind the Committee that, under the Bill as currently drafted, regulations made under this section will be introduced according to the negative resolution procedure. That means that the House will not have the chance to debate the substance of the pilots. It is unlikely that we would want to vote down the regulations supporting the pilots, but it is likely that we would want to amend them, depending on whether the Government act on the debates we are about to have.
The Committee will be aware of amendment 140, the purpose of which is to bring the regulations under the affirmative resolution. These debates will, no doubt, condition our approach and treatment of that. I would also be interested if the Minister could explain the Executive provenance of this section of the Bill. Lord Warner told the Committee that he thought
“the regulations about direct payments in new Section 12B were drafted by the Treasury.”—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC212.]
Lord Darzi said that the PowerPoint presentations that he was using came from the policy strategy unit. I hope that the Minister will confirm whether the No. 10 strategy unit is calling the shots or whether the measure originated in his Department, although that might be a moot question.
Amendment 187 goes to the heart of the issue that we, as politicians, face in this and similar policy areas—the balance of risk. The amendment would ensure that regulations are published on the balance of risk that is acceptable to the Government after consultation. I submit that broadly, as a class, politicians are not the best and most practised at handling risk. I inevitably speak from personal experience, but that is partly because it is not usual for politicians to have had hard-line commercial experience, which is obviously almost completely predicated on the calculation of risk, and partly because the single event can be catastrophic for politicians in media terms when, in fact, it may mark only a small deviation from the norm.
The two major risks with direct payments are that the patient commissions the wrong care and suffers as a result, or that the patient commissions, to put it pejoratively, a holiday in Spain. There is also the more subtle risk that the patient commissions something that delivers a better health outcome for them, but that it is seen as a holiday-in-Spain option by the media. Obviously such risks will be mitigated by the presence of an agreed care plan. I argue that the patient should be constrained as little as possible, but—I put this in estimated terms—it is right that, in this day and age, we should seek to legislate not for the 2 per cent. who will do the wrong thing, but for the 98 per cent. who are the experts in their care and will do the right thing.
If we get the understanding of risk right, we are more likely to get the pilots and the direct payments right. What is clear is that every possible permutation should be piloted. Baroness Barker, who speaks for the Liberal Democrats in the other place, said:
“one of the great benefits of direct payments is that they enable people to take risks if they choose to do so.”—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC228-229.]
Individual budget pilots have shown that it is the empowerment that comes from being allowed to take the risk almost as much as the care that is commissioned that contributes to the individual’s health and improving well-being. That ties in strongly with another common agenda across the House: that the sense of dignity of independence should be an overwhelming driver of well-being and, indeed, community and family-based care.
That covers amendment 187. I will reserve my position on amendment 170 until the hon. Member for Romsey has made her case. I shall move straight on to amendment 15. On 13 January 2008, the Government trialled something called a carer’s wage, which was mentioned in the newspapers. It was reported in The Sunday Times under the headline, “Cash reward plan for forgotten army of carers”, and in the Daily Mail on 14 January under, “Brown promises a decent wage for family carers”. Reports said the proposal was at an early stage and that it could form a key element of the carers strategy. Needless to say, there was nothing to that effect at all in the carers strategy when it was published. I hope that the Minister will therefore take the opportunity to clarify whether a patient will be able to pay their carer with money from a direct payment, and if not, will he state whether the Government will deliver on the promise of a carers wage?
The amendment also touches on the question of budget pooling. In the other place, Lord Warner expressed the hope that
“we will not get into a situation where this innovative change that the Minister and the Government are introducing is stymied by very restrictive regulations in the inevitably blurred boundary area between health and social services.”—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. 213.]
I dare say that that is something with which we are all familiar from countless constituency cases. Budget pooling, meaning a single direct payment funded by NHS and social care, which the Opposition support and have argued for, while fully recognising that it carries with it some complexities and complications, would enable the patient to negotiate that blurred boundary and close the gap between the two. It would also prevent direct payments from being chipped away by PCTs keen to cost-shunt their responsibilities on to local authorities. I am therefore keen to hear what plans the Minister has to pilot pooled budgets. Will the legislation allow pooled budgets to be piloted under this Government or, indeed, a future Government?
Amendment 188 can be dispatched quickly, as I am just looking for an assurance from the Minister that patients with direct payments will not find them stopped suddenly for PCT budgetary reasons, and particularly not without notice. What circumstances is that section intended to cover, and what is the notice period likely to be?
As the old joke goes, all of us have been touched by a midwife at some stage in our lives, and amendment 189 is looking for the assurance from the Minister that midwifery services can being procured through direct payments. In the other place, Lord Darzi said:
“I would certainly be very interested in proposals for maternity services”.—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. 222.]
That gives the Minister the opening. However, how does he propose to cater for unpredictability, such as the need to transfer from a home birth to a consultant-led obstetric unit in the event of unforeseen difficulties?
That also bears on the question of independent midwives. Will the patient be able to commission an independent midwife, particularly where a local service is not available from the NHS? On that, Lord Darzi said:
“There is plenty of evidence, not only in this country but elsewhere, where we have seen independent midwives working very well, such as in New Zealand and certain parts of England where such a service exists.”—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. 222.]
Will there be a requirement that patients must buy an indemnity for that, or indeed for any service that they buy? I hope that the Minister will be able to give us a view on the question of indemnity.
Amendment 124 is framed to reassure PCTs that they will, with regard to subsection (1), not face a clawback of any savings that they make through piloting direct payments. Under proposed new paragraph (m), they will be able to supplement their budgets if they lose money at that stage. I do not for one second underestimate the complexity of that area. The amendments might seen rather counterintuitive in a sense, as surely either the Department should keep the savings and sub the deficit, or the PCTs should do so. However, such a system would create perverse incentives in the pilot phase, and I dare say that the Minster and his officials have been thinking about that.
Will the Minister clarify whether PCTs will be able to keep any savings and whether they will be subsidised for any loss? That is linked to a point made in the other place by Lord Darzi, who said that
“where PCTs do not wish or are unable to apply to be pilot sites, I do not want to force them to do so. We are looking to harness existing enthusiasm in the NHS for personalisation, rather than to impose pilots on PCTs by selection by the Department of Health.”—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC247.]
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I admire the commitment to local choice, but I would be very concerned if direct payments were limited to PCTs with effective visionary leadership. Is there a case for pilots to assess how unenthusiastic bureaucrats—let us not pretend that there are not some—can also be encouraged to roll this out? Western Cheshire PCT in my constituency is set to pilot a range of continuing and end-of-life care services, but I note—perhaps it has moved on rapidly since I last checked—that the Minister’s PCT in Warwickshire is yet to do so. We need to compare and contrast areas to find out why there are such differences.
On amendment 125, will the Minister explain why he is not piloting the commissioning of urgent care with a direct payment? On amendment 126, what sort of end-of-life and palliative care commissioning pilots will he be running? As I am sure he is aware, that question has been asked by many outside this place who take a grave and well-informed interest in such things.
On amendment 127, Lord Darzi said:
“Will patients be employers? The answer is yes; they could become employers, as I said earlier, with all the employment regulation that comes with that.”—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC239.]
The Government should set out clearly the nature of this employment status. Administering direct payments can be very difficult for patients or their delegates. Baroness Barker recounted the comments of someone who said that the direct payment
“is brilliant, because it enables me to go on working...However,”
the local authority
“doesn’t tell you anything about insurance or national insurance. It doesn’t tell you anything about what to do if it does not work out with the person whom you’re working with. It doesn’t tell you whether it’s up to you as the employer to deal with it and, if you are, how you do that. There was an organisation that helped us a lot, but unfortunately it’s packed in and there’s nothing now.”—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC204.]
I can also report—this is the reason for the amendment—that we had an hour at the end of the health debate at the last Conservative party conference on caring for our elderly population, which I accept the Minister did not attend. I am told that that is the first such debate at any party conference. We were privileged that Sir Terry Pratchett came to make one of his first big speeches about the early onset of Alzheimer’s.
During the course of a conversation, which a former newscaster mediated, a wonderful woman called Marianne Talbot gave testimony from her experience. She is known for her punchy contributions to Saga blog and is also a lecturer at Oxford university. She has looked after her father and, most recently, her mother, who have gone through dementia and Alzheimer’s respectively. She looked after her mother, who only recently went into a home, as her carer for two years. With all her intelligence and capabilities, she said that she hit the brick wall when one of the package of six carers wanted to go on maternity leave. She felt that she did not have the capacity, knowledge, expertise or confidence to deal with that.
If we are going to make the direct payments really work, we have to recognise that support and advice services have to continue to be provided and ensure that such services are still available and operating properly. That is what the amendment deals with. Local authorities are immediately in the frame to support such a service. By doing that, one can expect to see direct payments come through better.
On amendment 128, the 2008 Budget announced the extension of the tariff to community services in mental health. When will that work be done and how much is it predicted to save? The Minister may choose to write to us about that. Will direct payments be extended to community services as they are currently? If not, will they be extended to direct payments when the tariff is introduced?
Amendment 129 raises the question of direct payments and prisoners. The Government have completely failed to get to grips with prison health—we have had quite a lot of contentious discussion on that—and they have let down our prison population as a result. We might have liked to have a debate on that today, but I suspect that that is not quite appropriate. If public and mental health issues were addressed in relation to prisoners, that would go a long way towards reducing reoffending rates. There is a lot of common ground across the House, particularly among those who are concerned that many prisoners might, had they had mental health and drug treatment as a priority, not have found themselves so much on the wrong side of the criminal justice system.
In the other place, Baroness Masham of Ilton asked:
“Will drug and alcohol services be included in direct payments? So many people are sitting in prison now and not getting the right treatment, because it comes from another budget and health or social services simply do not want to pay for it.” —[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC219.]
The noble Lord Darzi, somewhat unusually, failed to give an answer on that point, so I hope that the Minister will take the opportunity to do so.
With amendment 130, I wish to probe the Minister as to whether direct payments will be used to fund complementary therapies. There was some discussion about this in the other place, and not necessarily because many of their lordships are of a different generation. Lord Darzi confirmed:
“Any intervention that will improve the health and well-being of the patient that is signed off by the care manager within the care plan would be implemented.” —[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC223.]
The big “if” in that statement is that it will be allowed if it is signed off by the care manager—so it is not whether the therapy will improve the health and well-being of the patient, but whether it will do so in the opinion of the care manager. Lord Campbell-Savours said:
“I can imagine circumstances in which the patient might say, ‘I want a £200 mattress’. The manager might say, ‘It is in your care package, but we think you should have this mattress’,” —[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC231.]
not that one. Whom does the Minister’s team envisage will be the care manager? Will it be the GP or a PCT worker? What are the perverse incentives of having budget holders signing off care plans? Will the care manager be someone open-minded who supports the patient’s choice, and will they be constructive?
Baroness Cumberlege made the helpful point:
“I remember when we had GP fund-holding. It was very interesting to see the enormous difference that that made to complementary therapies and the number of people who went to their GP. We should remember that it was the last time that patients really had some power over their care. The GPs wanted to respond to patient choice because it affected their income. A number of people—the figures are quite startling—chose to have complementary therapies, and, so far as I know, no damage was done. As soon as GP fund-holding was done away with, those figures fell.”—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC216.]
As the Minister is aware, we certainly pledge to return to real budgets for GPs.
Some complementary therapies, such as acupuncture and hydrotherapy, have brought benefits to many people, whereas most of us would regard some other therapies as being a touch more wacky. Even if some of them are regarded as being a bit off-norm, if they deliver improvements in health and well-being, and in doing so make a saving to the NHS, the question will arise whether they are likely to be included in a care package. Any clarification that the Minister can give on that would be helpful.
To some degree, this issue ties in with the long-running campaign, with which many Members have been strongly engaged, about supplements as a matter of patient choice, particularly because it seems that what appears to be the norm across the rest of Europe could damage access to supplements and in certain concentrations in this country.
Amendment 131 addresses the purchase of care across national borders. I shall not take long over this, but I want to make sure that it is not overlooked as the last amendment in this group. This issue is particularly relevant to those of us who have constituencies that abut a national border, as I do with Wales, which is a completely different nation for health purposes. Many issues are daily of great stress to the Countess of Chester hospital, which receives lots of blue-light admissions from Wales, partly because it is in the interests of those people to benefit from the shorter waiting times. Many of my constituents who live in Farndon wish to cross the River Dee by the old Roman bridge to get to a pharmacy in Wales to get free prescriptions, but it is not quite as simple as that because the GP with whom one is registered has an effect. Those issues are causing considerable worry, and we are worried, particularly in relation to this clause, that the Government are dragging their feet over putting in place guidance on health care at the European level. Presumably, individuals could request that their PCT commissions care from within the EU through the direct payment. I am talking about care that, if commissioned abroad, could be topped up. Will anything prevent them from commissioning care outside the UK? That will probably be a tough question for the Minister to answer off the top of his head, but perhaps he has the answer to hand.
I conclude my remarks on a very long group of amendments covering a very broad range of necessary questions, although I have not touched on the Liberal Democrat amendments.
 
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