Welfare — House of Lords, 2016-03-21
Topic: Social Welfare
Maeve Christina Mary Sherlock (Labour, Centre-left): My Lords, I thank the Minister for repeating that Statement and for advance sight of it, and I welcome unreservedly the Government’s dramatic change of heart on this matter. However, I would like to know how we got to this point. Last Thursday, at Questions, I asked the Minister specifically about the fact that the single biggest revenue raiser in the Budget Red Book was a £4.4 billion cut over five years in personal independence payments awarded to people who need aids and appliances to get dressed or manage their continence. The Minister defended it, claiming that those people did not in fact have extra costs and, anyway, it was not really a cut because the total cost of PIP was rising, even though 370,000 people would have lost up to £3,500 each per year as a result of the change. Of course, the total cost of any benefit is a combination of case load, value and running costs. If the total cost starts to rise but a Minister then decides to change the rules so that some people will not be eligible any more, thereby saving £1.2 billion a year on the anticipated bill, that is undeniably still a cut, not least for the 370,000 disabled people affected However, everything has changed since our debate last Thursday. What a difference a weekend makes. Since then, the boss of the noble Lord, Lord Freud, Iain Duncan Smith, has resigned as Secretary of State for Work and Pensions, saying that repeated cuts to working-age benefits, "just looks like we see this as a pot of money, that it doesn’t matter because they don't vote for us" I will not even start on what his junior Ministers said about him, or indeed about each other, with the notable exception of the noble Lord, Lord Freud, who has behaved with considerable propriety in this. The House should commend him for that. However, to offer him one small piece of advice, it might be wise to stay indoors during break time over the next week—just until the storm passes. I hope that he is having an entertaining time in the DWP at the moment, if not an easy one. Joking apart, caught in the middle of all this chaos are some confused and worried disabled people, in work and out of work, who depend on PIP, so I hope that we will be able to get some clear answers to questions today First, does the Minister now accept that it was wrong to propose taking £4.4 billion from disabled people to fund tax cuts that mostly benefit those on higher incomes and those with much greater wealth? Secondly, disabled people will be relieved to hear that the cut in PIP announced by the Government has been cancelled, but I think we all want to know where the money will come from to plug the £4 billion hole in the budget that it leaves. Can the Minister assure us that it will not be taken from anywhere else in the DWP budget? I am very glad to hear that it will not come from benefits, but will he assure us that it will not come from the department’s budget elsewhere—for example, from the Work Programme, or other important activities the department will undertake? Also, the Minister has been trailing for a long time a major White Paper on disability. Can he confirm that this Statement means that no changes to benefits payable to disabled people will be considered in that White Paper The Statement says that support for disabled people rose in the last Parliament. It does not say that spending on disabled people is falling in this Parliament. The IFS says that it has fallen by 3% in real terms, and House of Commons Library research shows that, taking all disability benefits into account, the fall is over 6% Disabled people have suffered greatly at the hands of this Government. They remain among the poorest and most disadvantaged people in the country. If the new Secretary of State is indeed a one-nation Conservative and committed to helping disabled people to thrive, should he not start by reconsidering the repeated cuts that his predecessor made to their benefits? Perhaps he could help those who have lost their Motability cars, those suffering because of the closure of the Independent Living Fund, the two-thirds of bedroom-tax victims who are disabled, or those who will get £30 a week less in ESA in future because of legislation that we recently passed. I welcome this change unreservedly, but until those questions are addressed, it is very hard indeed to believe that we really are all in it together.