Welfare Reform Bill

My Lords, we learn more every Sitting. We learn that the mother of the noble Baroness, Lady Hayter, is really a Conservative, and therefore that she is. We had the admission the other day from the noble Baroness, Lady Lister, that she actually was a Conservative. I can only say: ““You are very welcome back any time; I would prefer you to come back very soon””. I know that the noble Baroness was mathematically challenged over the past week. I can offer only my noble friend Lord German, whose ability to sort out the sums of Labour politicians is now famous; I am sure that he will help her sort everything out. I have to be absolutely clear about the date when October happens. October happens when the Committee gets towards the PIP clauses. That is the definition. The fact that that has moved is due only to the extraordinary assiduity of Members of the Committee, for which I know that we are all grateful. I should just deal with the council tax, which strayed into this. It is not possible to analyse how different tapers will work because we do not know how the council tax will work. We will find that out. One issue behind any restructuring is that we are determined that it will not undermine work incentives; in the universal credit, we are dealing with that by enlarging the disregards. I must pay tribute to carers. I want to put on the record that they do a terrific job. We know that, and we have been very conscious of it as we develop the universal credit. Taking Amendment 52B first, we have looked at how we support carers. Rather than going through the complexity of the separate disregard route, we have provided an additional element that is included in the gross amount of the universal credit for carers. That is a change from carer’s allowance. This additional element will not be withdrawn when the claimant’s working hours pass a particular threshold, which is what happens now. Instead, the claimant’s award will reduce gradually as earnings increase due to the effect of the single earnings taper. The structure of earnings disregards in universal credit is not the same as that in current out-of-work benefits. We do not propose to carry forward the weekly £20 disregard that applies to carers in income support currently. In practice, many carers will receive an earnings disregard that is higher than £20 because they are lone parents or members of couples or if they or their partner are disabled. All carers will have the earnings taper applied to earnings beyond the relevant disregard. These measures will significantly enhance work incentives for carers in the vast majority of circumstances. We have taken the decision to standardise the provision for single non-disabled people in universal credit so that all claimants in this group will have £700 of their annual earnings disregarded. Simplifying measures such as this are essential if universal credit is not to replicate the complications of the current system, which breeds confusion and error for both claimants and administrators.