Welfare Reform and Work Bill
Second Reading
House of Lords
17th November 2015
For more information please contact:
Parliamentary lead: Rebecca Thomas 020 7832 7853
rebecca.thomas@equalityhumanrights.com
Legal lead: Joanna Owen 020 7832 7811
joanna.owen@equalityhumanrights.com
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The Equality and Human Rights Commission welcomes the aim of the Welfare
Reform and Work Bill to encourage and help more people in to work (where they
can, and are able to), in the context of the Government's commitment to reduce the
deficit and reform the welfare system. However, we have concerns that some of the
measures in the Bill could exacerbate, rather than reduce, existing inequalities.
The scope of the Bill is broad, but the Commission is particularly concerned about
the following areas:
1. Assessing the effect of changes on equality and human rights
The Bill has significant relevance to the UK's obligations under national and
international human rights law. The Commission is concerned that the impact
assessments and human rights memorandum which accompany the Bill do not fully
assess the effect of the Bill on equality and human rights. This may make it difficult
for Parliamentarians to properly consider the implications of the measures in the Bill.
We supported an amendment during the Commons Committee Stage debates which
would require the Government to undertake a full cumulative assessment of the
impact on equality of changes to tax credits and welfare reform. We also
recommend that measures in the Bill relating to welfare benefit reform should be
reviewed to assess how they comply with the Government's international obligations
under the UN treaties that it has ratified, in particular Article 3(1) of the Convention
on the Rights of the Child, the Convention on the Elimination of Discrimination
Against Women, the Convention on the Rights of People with Disabilities, and the
International Covenant on Economic, Social, and Cultural Rights.
This applies in particular to the welfare reform proposals which will lower the benefit
cap (Clause 7), impose a four year freeze on certain benefits (Clause 9), limit child
tax credits (Clause 11), limit the child element of Universal Credit to two children
(Clause 12), and Clause 13 which will lower the level of Employment Support
Allowance (ESA) available to future claimants placed in the Work-Related Activity
Group (WRAG) to that of Job Seekers Allowance.
2. Disability employment gap
We welcome the Government’s manifesto commitment to halving the disability
employment gap and encourage the Government to use Clause 1 of the Bill to
measure progress against this commendable aim. Our recent review of equality and
human rights Is Britain Fairer? revealed a significant difference in unemployment
rates between disabled people and non-disabled people1, and that between 2008
and 2013, unemployment rates increased more for disabled people than nondisabled people2.
3. Life chances
We welcome measures that aim to reduce child poverty and the Bill’s proposals to
use indicators that take into account causal risks that contribute to the perpetuation
1
11.1% of disabled people were unemployed compared to 6.4% of non-disabled people in 2013
2http://www.equalityhumanrights.com/sites/default/files/uploads/IBF/Final-
reports/revised/EHRC_IBF_MainReport_acc.pdf p37
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of poverty. However, we consider that, as well as measures of material deprivation,
the measures of relative and absolute income poverty currently contained in the
Child Poverty Act 2010, are necessary to give a clear picture of child poverty in the
UK, and therefore should be included in any new set of measures. This would
require Clause 6 to be amended.
4. Loans for mortgage interest
Clause 16 of the Bill would replace the Support for Mortgage Interest Scheme with
interest bearing loans. Currently, of the 156,000 recipients of this scheme, 33% are
in receipt of Employment Support Allowance (ESA). We are concerned that requiring
ESA claimants to pay interest and administrative fees on top of loan payments, when
they have already been assessed as unwell and unable to work, will cause undue
hardship and anxiety.
5. Devolved context
Parliament is considering major changes to reserved welfare powers at the same
time as it considers significant devolution of legislative and executive competence on
welfare to the devolved institutions in Scotland in the Scotland Bill. We encourage
the UK Government to maintain a close dialogue with its Scottish and Welsh
counterparts to ensure that equality and human rights considerations are addressed
consistently across Britain.
About the Equality and Human Right Commission
The Equality and Human Rights Commission is a statutory body established under
the Equality Act 2006. It operates independently to encourage equality and diversity,
eliminate unlawful discrimination, and protect and promote human rights. It
contributes to making and keeping Britain a fair society in which everyone,
regardless of background, has an equal opportunity to fulfil their potential. The
Commission enforces equality legislation on age, disability, gender reassignment,
marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex
and sexual orientation. It encourages compliance with the Human Rights Act 1998
and is accredited by the UN as an ‘A status’ National Human Rights Institution.
Find out more about the Commission’s work at: www.equalityhumanrights.com
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