Welfare Reform Bill

My Lords, I thank everyone who has contributed to our mini-discussion at the end of the Bill’s progress. The noble Lord, Lord Kirkwood, referred to the David Freud report. As we have put on the record previously, we see that as a substantial piece of work, and the Government are committed to responding to it before the summer. The noble Baroness, Lady Meacher, talkedabout flexibility after 12 months with regard to the permitted work rules. It is an interesting point and we will take it away. There are always judgments to be made about work incentives as well as truing to encourage people closer to the workplace. We will certainly reflect on that. The noble Lord, Lord Oakeshott, reminded us of the arithmetic at this end of Parliament. One other feature is that we tend not to shout at each other too much at this end, which is a very constructive approach. The noble Baroness, Lady Thomas, spoke about housing benefit and council tax benefit in relation to alignment of the permitted work rules. The extension of the permitted work rules means that people on income-related ESA will be able to earn up to £86 a week without their housing benefit being affected. That means that customers in receipt of housing benefit and council tax benefit will continue to receive their full eligible benefit rather than it being reduced if their income-related benefit stops, as happens under the current rules. The position of people receiving contributory ESA will be no different from that of those claiming incapacity benefit now; we have not changed that. Where their earnings exceed £20 a week, housing benefit is reduced by 65p in the pound and council benefit by 20p in the pound. We believe it is reasonable that people who receive contributory benefits should be treated in the same way as any other person claiming housing benefit who is in work. Income levels are the key: people on contributory benefit who also meet low income tests will also be eligible for housing benefit. We have made no final decisions yet on the amount of the ESA benefit rate. As in other areas, we will consult key stakeholders about the implications for ESA customers of the changes in the permitted work rules. I should like to take this opportunity of thanking noble Lords for the courtesy they have shown me and my noble friend Lady Morgan; this has been our first DWP Bill, and the first of several this Session. I hope that we will continue to have a constructive debate on future Bills. I acknowledge that the constructive and positive debate we have had on these reforms will make a real difference to the lives of millions of people. The process has had significant commitment from Opposition Front-Bench Members, for which I thank them, as well as the passionate and knowledgeable engagement of Cross-Bench Members. I look forward to an equally constructive arrangement on the Pensions Bill. It was believed that reforming incapacity benefits would always be contentious and hard fought, so it is important to recognise the work that has been done in building proposals that are right for the nation and that we can all support. Through the passage of this Bill the Government have listened to the concerns of the House and of the many organisations that have made representations to them. We have taken many of these concerns on board and can feel proud that the reforms now meet our shared aims and represent real progress in an important area. I thank all noble Lords for that. On Question, amendment agreed to. Clause 62 [Northern Ireland]: