Welfare Reform Bill - Lords Second Reading

13.9.11

Welfare Reform Bill – Lords Second Reading

This briefing focuses on Part 4 of the Bill relating to the replacement of Disability Living Allowance (DLA) with Personal Independence Payments (PIP) and the potential impact on older people in Wales.

Why is claiming disability benefits of such importance for older people in Wales

• Wales has the highest proportion of older people of all UK countries (Older People’s Wellbeing Monitor for Wales 2009)
• The proportion claiming unemployment related benefits aged 55-64 is significantly higher in Wales than the UK average (Welsh Government’s Statistical Focus on Older People 2008).
• Life limiting illnesses and conditions are more prevalent in Wales. In a survey of older people in Wales, a quarter of those interviewed claimed Disability Living Allowance. (For richer for poorer, the financial situations of older people in Wales – Age Concern/Help the Aged 2004)
• Wales has the highest proportion of Attendance Allowance claimants in the UK (Older People’s Commissioner briefing 2010)

Developments during the passage of the Bill

• The Welfare Reform Bill does nothing to address a basic anomaly in the benefit system. The proposed PIP will have both a care and mobility component as has been the case with DLA. For those people who develop difficulty with their mobility after the age of 65 at present, they will only be entitled to Attendance Allowance (AA) which has no form of mobility component. Regardless of its motivation in maintaining this policy, the Bill once again represents a missed opportunity.
• In response to initial fears (Disability Alliance March 2011), the Government has now published its draft regulations and clarified that those on DLA will continue to obtain components of the new PIP after reaching 65 or state pension age when different. The Older People’s Commissioner for Wales welcomes this clarification but has outstanding concerns

Points of clarification sought

• Continuing uncertainty  

Paragraph 10 of the Department of Work and Pensions Briefing Note on PIP (May 2011) states;-   

We have also said that we want to use the experience of reassessing the working-age caseload to inform any future decisions about the treatment of existing DLA recipients who are aged 65 and above.

Further information on the timeframe of the reassessment would be helpful together with an assurance that providing future support for older people will not be dependent on providing similar support to the working age population.

• Challenging the ‘false divide’

The DWP briefing note also states that the justification for continuing DLA payments to those aged 65 or over is that they have been unable to develop sufficient resources in advance of retirement due to the earlier onset of impairments. However, the argument holds good too for older people who had developed a mobility impairment in later life. Many older people in Wales have been employed in lower paid and part time work with others facing lengthy periods of unemployment or incapacity. Fewer older people in Wales have significant savings and an increasing number face growing debt problems as evidenced by two joint reports from the Older People’s Commissioner and CAB based on analysis of CAB enquiries from people aged over 60 in Wales. Those that experience mobility difficulties in later life could neither have predicted the onset of disability nor budget for the extra costs especially when on a fixed income and facing price hikes in the costs of food and fuel. Ofgem now confirms that combined electricity and gas prices are higher in Wales than elsewhere in the UK. Also a major study by Consumer Focus Wales (CFW) on the financial circumstances of older people shows that over 4 out of ten claims that they find it harder to make ends meet than a year previously (Paying for the future CFW 2010)

Whilst we welcome assurances given in the PIP, we are unconvinced by Government arguments for not providing PIP type mobility support for those developing impairments in later life.

• Use of secondary legislation

The Government advocates using secondary legislation to provide greater detail on PIP in order to maximise the flexibility of responding to any changes to social care legislation in England in the light of the Dilnot review into paying for long term care for older people in England. Both the content and timescale of social care changes are likely to be different across the UK as social care is a devolved function in Wales, Scotland and Northern Ireland. We would therefore look for assurances that full discussions are taking place with the Welsh Government on the intention to use secondary legislation in this way.

• Potential impact for Attendance Allowance

We appreciating that the current Bill does not address Attendance Allowance. The Commissioner and others have already received assurances that full discussion will take place with the Welsh Government if any decisions post Dilnot affecting social care in England have an impact on Attendance Allowance. However, the treatment of the PIP in this Bill could be viewed as a precedent.

We would want to secure a public acknowledgement from Government  that decisions on the provision of social care in England cannot solely determine the eligibility and continuation of benefits that apply across the UK, together with a commitment to involve the Welsh Government at all relevant stages.

Further information: Andrew Reagan 08442 640670 from 14-28 September