Welfare reform, disabled people and poverty

Commons debate – Thursday27th February 2014

Importance of this debate

RNIB thanks John McDonnell and Grahame Morris for securing this debate. We also thank the thousands of individual disabled people, including blind and partially sighted people, who have campaigned for MPs to recognise the severe impact of the welfare reform agenda on disadvantaged groups across the country.

Blind and partially sighted people contact RNIB in desperate circumstances. Some of the issues raised include:

-the level of change in the welfare system and the need for information in accessible formats (egbraille or audio);

-enforced debt, foodbank use and bank charges as a result of delays incurred due to changes and inaccessible DWP information;

-significant concern that, despite the severity of existing measures and the pending implementation of other cuts, the Government has proposed a further £12 billion reduction in social security spending without clarifying who will be affected in detail.

RNIB role

RNIB is particularly concerned about the impact of welfare reforms on blind and partially sighted people.

We are a member of the Hardest Hit and of the Disability Benefits Consortium (DBC) and we have jointly called for the Government to ensure the cumulative impact of its welfare cuts since 2010.

We hear from blind and partially sighted people every week who are experiencing difficulties with the Department for Work and Pensions (DWP).

We have about 50 cases pending against DWP for failing to provide information in accessible formats to blind and partially sighted people (eg Braille or audio).

Many blind and partially sighted people are affected by the range of cuts and changes being implemented by the Government, including:

-the rollout of Employment and Support Allowance (ESA);

-time-limiting some benefit payments (eg contributions-based ESA);

-the abolition of Disability Living Allowance (DLA) and introduction of Personal Independence Payments (PIP);

-the bedroom tax deduction in housing benefit; and

-reduced council tax benefit.

Impact of changes on blind and partially sighted people

RNIB provides a Hardship Fund for blind and partially sighted people. The Fund has experienced a rise in users as welfare reform has taken effect. September 2013 was the highest month for applications that RNIB has experienced.

The DBC reported in December 2013 that the bedroom tax and other welfare cuts have caused a 10-15% rise in foodbank use by disabled people. Foodbanks have seen a dramatic increase in use as welfare spending has been cut.

RNIB has also heard from individual blind and partially sighted people about the impact of cuts in support leading to delays and cuts in financial support which have caused debts to be incurred – including through payday loans being taken out to cover shortfalls and bank charges for missed direct debits for example. This includes blind and partially sighted people incurring debt through being unable to comply with new benefit processes as a result of DWP not providing accessible information (eg in braille) about new requirements or demands on the individual.

There were 230,000 applications for PIP in eight months in 2013 but only 44,000 decisions were made by DWP. This compares very unfavourably with 348,000 applications and decisions made for DLA in 2010. The Government stated 'simplification' was a motivation for PIP reform in 2010 but the changes in the system appear to be causing a significant backlog for DWP and the Tribunals Service handling rising numbers of benefits appeals. The Tribunals Service has a backlog of cases and it is estimated that reconsiderations and appeals are costing millions of pounds that RNIB would prefer to see invested in support for blind, partially sighted and other disabled people that saves money over time.

With significant delays experienced by people applying for PIP further hardship, debt and potential foodbank use seems likely.

Uprating help below inflation

At the same time food, energy and transport bills have risen well beyond inflation, even disabled people accessing ESA have experienced a 1.4% increase in payments.

There are over 12,500 blind and partially sighted people receiving ESA. Many heard Ministers claim that they were ‘protected’ from this reduction in the value of their support but have lost out.

DWP research shows that a majority of ESA recipients worked for most of their adult life and made national insurance contributions. The latest available DWP statistics shows 4,000 blind and partially sighted people receiving contributions-based ESA. Many will have worked for years but are now only entitled to 365 days of this support as it was time-limited under changes introduced under the Welfare Reform Act.

Alternative help

If the cuts were matched with alternative help to remain independent and in control many disabled people would not feel so aggrieved and let down by Government cut backs on out of work support.

However, the Independent Living Fund was closed to even the disabled people with the highest needs who would previously have qualified and the Government has not set out resources for councils to receive Social Fund grants from 2015 in a further cut to alternative help, worth over £1million a year for some local authorities to provide emergency support (including to fund foodbanks).

The Access to Work scheme that helps blind, partially sighted and other disabled people to get or keep employment has also experienced changes. Government departments and larger businesses no longer qualify to use the scheme and there was a drop in new users of this innovative support after the changes were made. This must be tackled as Access to Work makes a net contribution to the Treasury (raising over £1.40 for every £1 spent) as it reduces benefit expenditure and generates income tax and national insurance contributions.

Fully assessing future proposals

RNIB urge the Government to ensure all further welfare and social security policies and proposals are assessed fully, in advance, for their potential impact on blind, partially sighted and other disabled people.

DWP holds primary responsibility for ensuring proposals are assessed. DWP is home of the Office for Disability Issues (ODI) and its leadership team includes a Minister for Disabled People (currently Mike Penning MP).

Had the Government met its duties towards disabled people under the Equality Act, some legal action the DWP has faced could have been avoided. But DWP failed to meet its obligations to meet a timeframe and agenda of change that prevented adequate consideration of the impact. Blind, partially sighted and other disabled people have lost out as a direct result.

DWP, in particular, also failed to acknowledge warnings by disabled people of the potential impact of drastic changes in support. About 1,750 respondents to a consultation on DLA reform highlighted the potential costs to councils and the NHS for example, as well as raising the fear of tragic personal costs in an alarming number of respondents suggesting suicide as a possible outcome of losing critical help. Sadly, some tragic consequences have arisen as a direct result of changes to the benefit system.

RNIB is urgently seeking:

- Clarity on future cuts. The Chancellor has announced £12 billion further cuts in benefit expenditure from 2015 that have not been published in detail. The policies announced so far (including ending housing benefit for people under 25) would make a third of this published figure. The Government has suggested that the state pension will not be cut which leaves limited other options in DWP expenditure. RNIB seeks clarification on the future of DLA for children under 16, people over 65 and the future of Attendance Allowance (paid to older disabled people including 59,000 blind and partially sighted people). These three benefits cost over £10 billion in spending per year but cutting just £2 billion from this budget could result in 557,000 disabled children and older people losing crucial help;

- Assurance that all information on current and future changes in support for blind and partially sighted people will be available in accessible formats.

- A renewed timeframe for implementing PIP from DWP (necessary given the delays in the current decision-making process);

- Clarification on Atos' position and how any replacement provider will meet and improve the standards of assessments and revised‘customer journey’ information for people going through Work Capability Assessments; and

- A commitment to ensure reduced stigma in debating welfare and social security issues. Only one in five blind and partially sighted people receive DLA and only one in ten access social care services funded by councils. The welfare state is failing blind and partially sighted people and the solution is not to demonise or stigmatise people who need support, but the climate created in the drive to reduce spending has contributed to a rise in the level of harassment and abuse reported by disabled people.

Further information

Neil Coyle, RNIB UK Parliamentary Manager: