Welfare Reform Bill

My Lords, we support this amendment, moved so comprehensively by the noble Baroness, Lady Grey-Thompson, and spoken to so effectively by the noble Lord, Lord Low. I would say to the noble Lord, Lord Newton, that in doing so we are not motivated by a belief that this is all some dastardly plot, but a belief that we need to be assured that the system does not just need to be tweaked but that it is fit for purpose before this major change is introduced. This amendment is aimed at helping the Government get right the process of transfer from DLA to the personal independence payment. It calls for an added layer of safeguards within the process of reform, with an independent review of the plans for operation of the assessments before they start and a trial period when the assessment process first comes into effect. Crucially, it calls for the full involvement of disabled people and their organisations in this process, ensuring that they have confidence that the assessment process for the new benefit will be fair. The need for safeguards in this area has been all too fully revealed with the experience of the employment and support allowance. The noble Lord, Lord Newton, told us that he was responsible for introducing DLA—which in Committee the noble Lord, Lord Low, called an ““iconic”” benefit—and he should be proud of that achievement. I have some responsibility for having introduced the employment and support allowance so I cannot claim any such accolade. It is clear that the assessment process has not been working and has caused not only distress to too many disabled people but considerable headaches for the Government. We all know that 39 per cent of appeals have led to a decision about ESA being overturned in favour of the claimant, and the unreliability of the assessment procedure has also made it difficult for the Government accurately to budget for the cost of these reforms. The Office for Budget Responsibility’s November economic and fiscal outlook states: "““ESA changes have resulted in an increase in expenditure of £1 billion by 2015-16””," and the latest administrative data suggest that fewer people than previously assumed will be judged fit for work as a result of the initial ESA work capability assessment and the reassessment of incapacity benefit cases, and more will be placed in the support group. This accounts for around four-fifths of the increase. Other changes arise from a change in assumptions about the composition of the ESA caseload, which results in higher average benefit payments per person and higher inflows. The costs of getting this process wrong can therefore be high, and we know that the Government have benefited from the independent review of the ESA assessment process undertaken by Professor Harrington. As other noble Lords have said, we received just yesterday the document providing further information about the second draft of the PIP assessment criteria, together with proposals on entitlement thresholds, impact modelling and case studies. While this technically fulfils the Minister’s commitment that we should get it before the Report day, as we have previously noted, there has hardly been time for detailed study and analysis—although it is hard to miss the startling figure that some half a million disabled people will be excluded from the new benefit in comparison to existing DLA arrangements. Before causing this to happen, the Government should be called to account for the impact that this may have on the disabled people who are missing out. The January document launches a 15-week formal consultation on the assessment criteria and this is welcomed as another opportunity for disabled people to input their views. However, this is no substitute for what this amendment calls for: that before these provisions are implemented, there is an independent review focused on implementation, with trial periods before the full rollout. There can be little doubt that proposals to abolish DLA for working-age claimants and substitute the personal independence payment have caused genuine consternation among disabled people. The representations we have received reflect that. What we have heard from our own colleagues, noble Lords in particular, who are powerful advocates for disabled people, in Committee and again today reinforces this. We accept, as do many people, that DLA in its current form needs updating but the huge difference the benefit has made to the lives of millions requires the absolute maximum assurance to be provided before any replacement is implemented. That reassurance is made more difficult by the 20 per cent cut in the budget provision and in the context of some £18 billion of cuts from the coalition Government, which the IFS and others confirm are careless of the circumstances of the poor and disadvantaged. Whatever the Government’s protestations, there is a strong belief that the changes are about securing cuts. The Minister will argue that the proposed assessment process will be assessing different things in a different manner, but the parallels with the work capability assessment are clear. Most would accept the concept of the WCA, but implementation has been chaotic and the assessment process flawed. Improvements are under way but these were driven by the independent report of Professor Harrington. Indeed, it was the independent report of the noble Lord, Lord Low, which brought about the Government’s change of heart, which we appreciate, on the mobility component and care homes. The changes from DLA to PIP could cause a major upheaval in the lives of millions of people, many of them extremely vulnerable. We do not argue against change, but for a precautionary approach in introducing that change. This should include an independent report before the start of change, focused particularly on the assessment process, trials before general rollout and, above all, meaningful engagement with disabled people, because they deserve no less.