Universal Credit (Transitional Provisions) (Claimants previously entitled to a severe disability premium) Amendment Regulations 2021

These regulations remove that gateway and give some compensation to those who will then be moving over to universal credit. But it is not full compensation; it does not compensate for the loss of the enhanced disability premium, only the severe disability premium. Nothing is paid where the SDP is attached only to housing benefit. And it is a fixed sum, which is reduced when any part of your universal credit rises, even if that is only because your rent has gone up. So claimants will see the support they receive fall in real terms, year on year.

If someone moved on to universal credit during a managed migration, they would have transitional protection based on all their legacy benefits, not just the SDP. That managed migration process has been paused. Can the Minister tell us what the new target date is for completing it? Zacchaeus 2000 points out that Covid-19 has increased rates of redundancy and caused changes in working hours, increasing the number of people on legacy benefits experiencing a change in circumstances. More claims will therefore end up moving on to universal credit with no transitional protection or with just the transitional SDP element.

Some vulnerable people risk losing a lot of money. Marie Curie, in its excellent briefing, points out the impact on people with terminal illnesses or life-limiting conditions. It says that the loss of the two disability premiums could leave new claimants up to £84 a week worse off. Then there is the related issue of the £20 uplift to universal credit. That was not applied to legacy benefits, many recipients of which are disabled people or carers. This is incomprehensible, as well as unfair. Since there is meant to be a pandemic measure, many sick or disabled people have spent the last year shielding at home, with spiralling energy costs and lots of additional costs such as home deliveries, PPE and much more.

Astonishingly, the Secretary of State for Work and Pensions, Thérèse Coffey, suggests that claimants should simply claim universal credit if they want the £20. This is terrible advice. Some people will be worse off on universal credit than they were on legacy benefits, even with that extra £20. Others, who would be better off on universal credit because of the £20 uplift, will be worse off if it is taken away. How will they know? It is really complicated. The DWP says that it cannot advise individual claimants, so why on earth is the Secretary of State for Work and Pensions telling people to switch?

If someone applies for universal credit, there is no going back. Noble Lords may have seen cases of people in the news of people getting tax credits who then applied for universal credit and were rejected because they had savings; UC has a savings threshold, unlike tax credits. But then they were not allowed to go back to tax credits, so they got nothing. We surely cannot have that apply across all kinds of other categories of claimant.

What should be done? First, the Government should urgently address the flaws in their strategy for dealing with people in receipt of severe disability premium who are going to be forced on to universal credit. The House of Lords Economic Affairs Committee said:

“The DWP should introduce an equivalent to the Severe Disability Premium. This should be a self-care element for any disabled person who does not have someone assisting them and claiming the carer element of Universal Credit.”

Many charities agree. What is the Government’s response to this?

Secondly, the DWP should address the process of claimants moving from legacy benefits on to universal credit. We need an urgent update on managed migration. We need mass communication, and we need personalised advice for anyone thinking of moving so that they know the consequences before they make that jump.

Thirdly, the Government should extend the £20 uplift to legacy benefits. They should do the right thing and make that uplift permanent. The Economic Affairs Committee put the case simply:

“We believe that the increase shows the original rate was not adequate … The Government should commit to making the increase in the standard allowance permanent.”

That original rate is not adequate as a result of years of benefit cuts and freezes. The House of Commons Library figures show that, excluding Covid-related increases, most working-age benefits were between 9% and 17% lower last year than they would have been if the Government had simply uprated them by inflation since 2010. The OBR estimated that the 2015 Budget would cut over £9 billion from social security spending by the end of this financial year. No wonder that before that £20 uplift, unemployment support was at its lowest level in real terms since 1992.

We need action. Temporarily extending the uplift will simply temporarily extend the confusion and uncertainty. The Government should do the right thing, address the problem with SDP, extend the uplift to legacy benefits, make it permanent and announce it as soon as possible, so that people have certainty and can judge for themselves whether they will be better off on universal credit or legacy benefits. The case for taking action on this matter could not be clearer. I hope I do not have to press the Motion to a vote, because I hope the Government will realise what is at stake and do the right thing.

I am unable to support the regret Motion moved by the noble Baroness. As I have said, I welcome the Government’s efforts—and, I know, those of my noble friend the Minister and the department—to really assist those who are struggling through the pandemic.

The £20-a-week uplift is due to end in April 2021, unless the Chancellor decides to extend it. The poorest households would lose 10% of their budget. Policy in Practice says that stopping the uplift would mean that

“683,000 households, including 824,000 children, would no longer be able to afford to meet their essential needs”.

Citizens Advice has said that this

“would push those just about managing into debt.”

Even more worryingly, BASW—the British Association of Social Workers—suggests that

“low income is a driver of children being investigated as part of child protection concerns.”

Support targeted at the lower half of wealth distribution in the UK or the unemployed is two to three times more effective at increasing spending in the economy than a universal stimulus, as low-income households spend a higher proportion of their budget on essentials. A case study provided by the Zacchaeus 2000 Trust, a small charity, outlined the experience of Lee, who was incorrectly moved on to universal credit despite being in receipt of the severe disability premium on a legacy benefit and the SDP gateway still being in place. She went into serious debt and rent arrears. She was moved back on to legacy benefits and she would not want to go back on to universal credit. The overworked DWP did not always acknowledge her inquiries, or looked only at the most recent correspondence rather than at her whole history.

Seriously unwell and disabled people such as Lee do not need the added stress of UC’s failing system, especially during a pandemic. The Government must look at this again.

The noble Baroness, Lady Donaghy, referred to some personal accounts and experiences and I should like to do the same. I have an account from someone who suffered a traumatic brain injury and spent a year in hospital. It is posted on the North Staffordshire Green Party website—I will tweet out the link. This is a long story, but it is the kind of experience that many people with a severe disability premium payment would have gone through. This man received the disability living allowance in 2004, not after the original application but after being forced to go through an appeal process. The payment was awarded for life. A decade later, that was replaced by the personal independence payment and the man had to reapply. I will now quote a few of his own words because we should listen to these experts from experience. He said:

“We entered a small dimly lit room with a young male assessor. He told me he had worked in mental health for several years to which I replied—good, you’ll be able to understand my brain injury. I left the assessment extremely tired but rather dazed … It was only a few weeks later when the award letter arrived, I realised why I was feeling dazed—everything in the assessment conclusion letter was a blatant lie—I wasn’t bothered that I had been declined—I felt demoralised and degraded. I revealed to the assessor some of my most intimate moments. As I was reading the assessment I felt as though I had been contradicted with some of the information being made up. It was this moment I realised I had been interrogated not assessed. This sent my mental state of mind tumbling into an abyss of depression—you can appeal, I was told. How can you appeal blatant lies, I thought; and did not appeal.”

Many Members of your Lordships’ House will be well aware that recipients of the severe disability premium have been through experiences such as that, often again and again. Yet we are subjecting them to the level of complexity that the noble Baroness, Lady Sherlock, outlined.

The payments exist because our society is discriminatory, as it does not exist in ways that meet peoples’ needs without their requiring the special extra payments because of their disability. As I pointed out at Second Reading of the Financial Services Bill, if we make a society that works for those who are vulnerable, we make a society that works well for everybody. All of us are only one accident, one medical emergency, one crisis away from needing payments like this. Knowing that those payments are there—reliably, certainly and sufficient—is vital to us all.

I mention one thing in passing and I hope that noble Lords will not think that it is too sexist. This debate has predominantly been contributed to by women. I sometimes wonder whether that is because it is women who take the responsibility in the family for the benefits of relatives and dependants. Maybe that is why women have a more instinctive understanding—I have no doubt that people will complain about this—of the real impact of these issues on day-to-day lives.

A lot of the disability groups have made their case about the financial impact this will have, including Disability Rights UK, among others. Disability Rights UK has made very strong statements, which I am sure the Government are aware of. But on the question of managed migration, my experience is that this group, who are the most severely disadvantaged because of the level of their disability, have been subject to all sorts of changes and disadvantages. But we have not had this spelt out in debate in either House.

My noble friend will know that last year, after 30 years of experience in Parliament of personally dealing with casework—I cannot imagine how many I have dealt with—I actually struggled to engage with the Government’s website to apply for ESA for a young woman in a very difficult situation with an advancing degenerative disease. In order to apply for ESA, the computer made me keep going to universal credit. This woman was married to a man in receipt of the support level of ESA, and the only way the computer would allow me to apply for even universal credit for her was if that man agreed to forfeit the right to his ESA. I know my noble friend has taken this up, and I hope she has made some progress with it. But this is what people are facing. They deserve a lot better than this.

The Economic Affairs Committee was advised that the introduction of an equivalent to the severe disability premium would cost approximately £1 billion per annum. If 10 Downing Street can employ three times as many official photographers as the White House, surely it would agree that the sum of £1 billion to alleviate the poverty suffered by 50% of all disabled people would represent extraordinary value for money. Can the Minister give us the comfort that this will be addressed, allowing my noble friend to withdraw her Motion? In the absence of that comfort, I would have no hesitation in supporting my noble friend’s Motion if she chooses to press it.

“after transitional help is eroded after time, UC for disabled people will be significantly less generous than ESA and the other legacy benefits it has replaced.”

Marie Curie, which provides such strong support for cancer sufferers, believes that everyone nearing the end of their life should have the financial support they need for a decent quality of life. No one should spend the end of their life facing poverty or material deprivation. Marie Curie has particular concerns regarding the move to universal credit for people with terminal illness who live alone without a carer, and the impact that the loss of severe disability premium will have on that group. In that regard, will the Minister provide assurance that the disability Green Paper planned for publication this spring will review the financial support available to disabled people living alone and without a carer to look after them? What discussions have the Government had with the Ministry of Housing, Communities and Local Government to ensure that any new claimants for universal credit who would have been entitled to SDP under the legacy benefits scheme are able to afford all the care and support they need and are not left more socially isolated by the abolition of this component?

In summary, I support the regret Motion. I urge the Minister, as I urged her yesterday, to urge her colleague to undertake a root and branch policy review of the social security system to ensure that it is fit for the needs of this era, with all the accompanying problems that have been challenging us with the pandemic.