Welfare Reform Bill


[back to previous text]

Paul Rowen: I congratulate the hon. Member for Glasgow, North-West and the RNIB on the new clause. We can all support it, because as he says, it would right a wrong.
The key point about the proposal is that people will become eligible for, rather than have an automatic entitlement to, higher rate DLA. The discrimination at the moment is that people are ineligible for the higher rate and can qualify only for the lower rate. It should be left to the normal processes of medical assessment to decide. Why should someone who is physically handicapped be eligible for an award when someone with a sight impairment is not?
The sums of money that the DWP spends on this annually are quite small—£45 million for 22,000 people. That was the figure that was given to the RNIB. It is a comparatively small amount of money in global terms, even if all 22,000 people automatically qualify. The caveat is that people will not automatically qualify. They will have to demonstrate that their disability means that they qualify. That that does not apply is the injustice that blind people feel at the moment.
I have been given an example by my hon. Friend the Member for Twickenham (Dr. Cable). A 14-year-old boy in his constituency had had an accident when he was nine and had ended up being severely disabled, with poor eyesight. He was initially given the higher rate, which meant that his mother qualified for a Motability vehicle, which she has used to take him around. He is now able to walk but his sight has not improved, and following a reassessment he now gets the lower rate. His mother will therefore lose eligibility for the Motability vehicle.
In our view, these decisions should not depend on which rate a person is on; they should be based on a proper assessment. The fact that the boy became ineligible for the higher rate caused the mother to lose eligibility. The key point is that blind people should be eligible—we are not saying that they would all automatically qualify. A number of hon. Members back such a change—as the hon. Member for Glasgow, North-West said, more than 200 Members signed various early-day motions in the past two years—and there is a very strong feeling across the House that this is the right time for a change. The Bill would be considerably strengthened in a number of ways if the Government accepted the new clause. I am sure that people would be very pleased if the Government accepted such a positive measure.
Mr. Harper: I simply want to flesh out what the hon. Member for Glasgow, North-West said about the definitions. He referred to the phrase, “no useful sight for orientation purposes”, which the RNIB used. For the benefit of the Committee, in a written answer, the Under-Secretary of State for Work and Pensions, the hon. Member for Chatham and Aylesford, said that
“during helpful discussions with the RNIB they have suggested that...no useful sight for orientation purposes...could be interpreted as meaning that a visually impaired person would have: no perception of light; perception of light only; perception of hand movement; or...‘total’ or ‘extensive’ loss of visual field. Using these definitions of visual impairment we estimate that, if implemented in 2010-11, we would require additional annual benefit expenditure of around £45 million to extend the higher rate”.—[Official Report, 23 February 2009; Vol. 488, c. 57W.]
I await the Minister’s response.
12.30 pm
The Parliamentary Under-Secretary of State for Work and Pensions (Jonathan Shaw): I congratulate my hon. Friend the Member for Glasgow, North-West on the new clause. All members of the Committee will agree that he put forward a compelling and passionate argument for such an important change. He has a track record of campaigning for blind and visually impaired people, both in his constituency and further afield.
I thank the hon. Member for Rochdale for bringing forward a case on behalf of the hon. Member for Twickenham, and the hon. Member for Forest of Dean for setting out the information that I was able to supply. His lack of comment about whether he supported the proposal was deafening. Perhaps we will hear at a later stage whether he and the Conservative party have an opinion on this.
Mr. Harper: I am listening to you.
Jonathan Shaw: And we listened to the hon. Gentleman’s very succinct remarks, which offered no opinion. I invite him to intervene to give me an opinion. There we are, we have heard the opinion of the Conservative party.
Perhaps I can bring some context to this. Some 65,000 people who receive disability living allowance are recorded as having a sight impairment as their primary disability. Of those, around 58,000 receive the lower rate mobility component and around 4,600 the higher rate. The DLA is clearly working for a great number of visually impaired people. Having said that, the Government are sympathetic to the call for change, specifically regarding the rules on entitlement to the higher rate mobility allowance.
I have a personal commitment to this. One of the first things that I did on becoming Minister for disabled people was to review some of the correspondence that the Department had received. I found a letter to the Secretary of State dated 22 August last year that told my right hon. Friend that he should read the enclosed letter from Ms Karen Osborn, the chief executive of KAB Sight Centre, and that asked for comments on the issues raised in that letter. It also said that reassurances would be welcomed that the Department was determined to end the exclusion of blind people from this important extra cost benefit when they face some of the greatest barriers to independent mobility. The letter was signed “Jonathan Shaw MP”, the Member of Parliament for Chatham and Aylesford. That puts my activity as a constituency Member of Parliament on record. My right hon. Friend the Member for Stirling (Mrs. McGuire) subsequently wrote back because there were some discussions about costs. Hon. Members will remember that the original cost put forward by the RNIB was about £30 million per year. As we have heard, since work has been undertaken, there has been agreement that the cost would be about £45 million.
My right hon. Friend the Secretary of State has also confirmed his support by saying:
“The Government do not have any objection to it in principle. They totally understand the case that is being made.”
I am pleased to say that, in recent weeks and months, we have been able to work with the RNIB in the way mentioned by the hon. Member for Forest of Dean. I am enormously grateful for its work in engaging with us positively to find a workable solution. Although we have made huge progress in developing this measure, as my hon. Friend the Member for Glasgow, North-West knows, the issue is about finding funds within limited resources. Our priority at this time is to stabilise the economy and help people remain in or return to work. Any spending decisions in this context must be focused on a stable economy, businesses, supporting families and helping people to remain in or return to the labour market. Spending decisions at this time will clearly be difficult and must be taken in the context of continued pressure to deliver efficiency across the Government. My right hon. Friend the Secretary of State has alluded to these pressures.
Paul Rowen: I have been listening carefully to the Minister. Given that there is a process of people migrating from incapacity benefit to employment and support allowance, and that a lot of work is going on to get people who may have been on incapacity benefit back into work, does he not accept that some savings are going to be made? They could be passported over to this particular group, thus enabling this wrong to be righted.
Jonathan Shaw: There are always competing demands for the DWP budget and I shall set out carefully the context on which we need to focus.
My right hon. Friend the Secretary of State said on Second Reading:
“If we move forward with this, we will have to find the investment not only for now, but for the medium term, because a continuing commitment would be involved.”—[Official Report, 27 January 2009; Vol. 487, c. 186-87.]
As has been said, we now estimate that the additional benefit expenditure would be about £45 million per year, with a £12 million administrative spend in the first year alone. However, we estimate that the ongoing costs of administrating the change would quickly fall to around £2 million per year, although we would still need to find resources to cover at least £45 million a year and rising in the years going forward. Funding on such a scale could not be found from this Bill’s measures. While the Government fully recognise the intentions behind the new clause, accepting it without having the funding to support it would require us to withdraw funding from elsewhere in the benefit system.
Nevertheless, as the hon. Member for Rochdale suggested in terms of incapacity benefit, hon. Members will know that we are increasing Access to Work over the next few years. That is assisting many people—blind people, in particular—by enabling them to get into work. We want to continue to work with RNIB and the partner organisations to ensure we do all that we can for blind and visually impaired people. I anticipate that some of my comments will disappoint my hon. Friend the Member for Glasgow, North-West and, indeed, other members of the Committee. We cannot, at this stage, provide substantive support for the new clause. However, I assure him and the Committee that we will continue to look at the matter.
John Mason (Glasgow, East) (SNP): Will the Minister give us an indication of what time scales we are talking about?
Jonathan Shaw: I am not in a position to be able to give the Committee a time scale. When we are in a position to finance a change to the rules, we are firmly committed to make that change an urgent priority and to do so at the earliest possible time. Given that assurance, I hope my hon. Friend the Member for Glasgow, North-West will withdraw his new clause.
John Robertson: My hon. Friend started by saying that I gave a compelling and passionate argument, although it was obviously not compelling and passionate enough. He is absolutely right that I was disappointed by what he had to say. My head says I should press the new clause to a Division because I know right is on my side. However, I am going to overrule my head in this case and think about going away to fight another day. I want to ensure—and I say this to the Minister as a promise, not a threat—that such a measure goes through in this House, not the other place. I believe that if the other place considers such a measure, it will go through there. However, it is important that elected representatives make this decision. I want our House to agree to such an amendment, so with the promise that I will return to this on Report, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.

New Clause 6

Minimum income level for persons subject to sanctions
‘Regulations made by the Secretary of State shall set minimum income figures per week which no individual or family in receipt of benefits, and subject to any sanction under this Act, is permitted to fall below following the imposition of any sanctions.’.—(John Mason.)
Brought up, and read the First time.
John Mason: I beg to move, That the clause be read a Second time.
The Chairman: With this it will be convenient to discuss the following: new clause 7—Implementation of sanctions in relation to income
‘External providers and jobcentres shall not apply sanctions under this Act when the job offered to a claimant provides a lower income than that provided by unemployment benefits.’.
New clause 8—Means inquiry before sanctions imposed
‘(1) In any case where regulations made by the Secretary of State under this Act or other powers contain provisions for the imposition of sanctions resulting in the loss or reduction of any sum in benefit, the regulations shall contain a duty that before any sanction is imposed—
(a) a means inquiry is conducted as to the means of the person on the day;
(b) regard shall be had to the welfare of any person residing with him;
(c) regard shall be had to a medical report as to his/her physical and mental well-being and any person residing with him/her;
(d) any sanction resulting in loss or reduction of benefit will be reasonable in the circumstances;
(e) regard shall be had to the impact of any deduction on the ability of the person to pay costs in respect of the accommodation which he/she may occupy.
(2) Following consideration of the matters prescribed in paragraph (1) the decision maker shall then determine whether the income remaining to the person who will be subject to the sanction falls below the minimum figure for income in one week which is set by the Secretary of State.
(3) If any sanction is imposed following the inquiries in (1) above of any sanction, the decision-maker shall ensure that no person will be left either with a total income which is either below the minimum figure for income set by the Secretary of State or in any other case is no more than two thirds of the amount in benefit payable to the person in any one week during which it is proposed that the sanction shall operate, unless the relevant amount of benefit payable in any one week is £5.00 or below.
(4) Where the means inquiry establishes that a person is already subject to deductions from benefit which but for the effect of this subsection would result in the amount of benefit available to the person in any one week falling below the amount set by the Secretary of State, the imposition of any deduction shall be suspended.
(5) Any regulations made by the Secretary of State permitting or allowing any sanction resulting in loss or reduction of benefit to any person shall be subject to a right of appeal.
(6) Any person affected by a sanction imposed may appeal to the Secretary of State for a variation of the amount, provided that no variation however occasioned shall as a result leave the person with less than the sum prescribed in regulations under paragraph 2.’.
John Mason: I would like to challenge the Committee with a question: what is our starting point as we look at this Bill? Is it that the state is so generously funding people who do not really deserve it that we must cap all our expenditure and, if possible, reduce it? Some might say that is the traditional view of the main Opposition party. Alternatively, are we approaching the Bill from the point of view that every adult, family and child needs to have enough to live on so that they are able to eat, have a proper home, and be properly clothed? Anything that we do under the Bill must take account of those points, and some would say that that is the traditional view of the party in government.
One of my fundamental problems with the idea of sanctions is that some people are already living on a minimal income. If we cut that income further, where will that leave those people? In particular, where will it leave families, and especially children?
The Committee has discussed loans at some length. There has been mention of social fund loans, but people take other loans as well, and they eat into their ability to pay bills. In fact, on Friday, a constituent came to me who had got seriously into debt because of his mother’s funeral. He was unwise to pay as much as he did on the funeral, but—[Interruption.]
 
Previous Contents Continue
House of Commons 
home page Parliament home page House of 
Lords home page search page enquiries ordering index

©Parliamentary copyright 2009
Prepared 4 March 2009