Welfare Reform Bill

My Lords, the proposition before us today is that we change references to ““personal independence payment”” and replace them with ““disability living costs allowance””. We have heard strong and compelling arguments to support that proposition and I am happy to give support from the opposition Front Bench. I do not propose to offer an alternative formulation, but I understand where the noble Lord, Lord Skelmersdale, was coming from. It seems that the reasons that have been articulated today are overwhelmingly right. They are about clarity; about sending out the right signals; about not conceding issues to the press; about not allowing the word ““disability”” to be airbrushed out of the system; and about trying to combat some of the fears about the way that the proposals have been brought forward. The DLA has its origins in 1970 when attendance and mobility allowances were introduced for severely disabled people. It was introduced in 1992 under the guidance of the noble Lord, Lord Newton. I am delighted that he is regaining his self confidence—I cannot imagine him without it. It was introduced because the then system was not meeting the needs of some groups of disabled people; for example, people with learning disabilities and visual impairments. The noble Lord, Lord Low, described DLA as now having iconic significance. As the impact assessment produced for this Bill indicates, DLA is a benefit which provides a cash contribution towards the extra costs of needs arising from an impairment or health condition. Because it is not practical to measure each individual’s expenditure and therefore entitlement, entitlement has to be based on proxies for extra costs, care and mobility. These proxies were used at the time because research showed that they were the greatest sources of extra cost. So a decision about whether an award is made is not on the basis of an individual’s cost, but on the severity of their care and mobility needs. Whether the proxies and the assessment process have delivered the appropriate outcomes might be the subject of a debate that we will have shortly on other amendments. The clear intent of the policy is to make a cash contribution to the extra costs faced by disabled people. It does this for some 3.2 million people of whom presently over 1 million are over state pension age. Contrary to popular myths that everyone gets an indefinite award, analysis shows that in the 12 months up to November 2006, only 29 per cent had that outcome. The rights payment programme at the DWP routinely checks samples of awards for appropriateness. We support the proposition that the aim of the benefit should be to provide support to help offset the costs in the widest sense for disabled people. What is the replacement of the DLA supposed to deliver? According to the June 2010 Budget Red Book, the purpose of reform is to ensure that support is targeted on those with the highest medical needs, although there has been some rowing back from this position. The introduction to the hot-off-the-press publication on November 11 of the second draft of the assessment criteria for Personal Independence Payment refers to all the impressively extensive—work that has gone into developing proposals for the assessment criteria. It states that the assessment will be on an individual’s ability to participate in society as a proxy for the impact of disability and the extra costs disabled people can face. As a statement of intent, this seems entirely reasonable and indeed consistent with what the supporters of the amendment are seeking. To make an award on the basis of extra costs disabled people can face, assessed by reference to their individual circumstances, is something to be supported. But, of course, whether the stated desired outcome is achieved or achievable is something we will discuss—whether the descriptors and the weight given to them are appropriate, whether they are too medicalised, whether the process of face-to-face engagement is right, issues around use of aids—in essence, whether they truly capture the barriers that disabled people face in their everyday lives. The process has not been helped by the introduction of the PIP or whatever else it might eventually be called, proceeding in the context of a 20 per cent cut in spending up to 2015-16. This is in addition to a raft of other benefit cuts to which people are being subjected. Although the formulation seems to be that this is simply a reduction in forecast working age DLA expenditure and is not a real cut, the impact assessment undermines that. It says very clearly that the, "““net costs to individuals from reductions in benefit expenditure from focussing support on those with greatest needs””," will amount to something like £1.4 billion a year by 2015-16. Perhaps the Minister can take this opportunity to describe for us, in dealing with the title of this benefit, the circumstances of those who will fall outside of the definition of those with the greatest need. The need for clarity on this should also be seen in the context of other assessments that will be going on at this time. The WCA will run on. There will be people who will be subjected to a WCA assessment as well as an assessment for this replacement of DLA. Having clarity about what the benefit is for is absolutely crucial, and making sure that the title is entirely appropriate and conveys that message is something for which a powerful case has been made, and which we support.