Northern Ireland Welfare Reform Group
The Welfare Reform Bill:
Briefing on the key issues for people with disabilities and carers
October 2012
About the Welfare Reform Group
The Welfare Reform Group is an umbrella grouping of organisations that
campaign for positive changes to policy, service provision and legislation for
those in receipt of social security while also providing advice and support to
other advice giving organisations and disadvantaged persons in their capacity
as individual members of the Group.
The Group supports an equality and human rights-based approach to the
provision of social security which demonstrates an understanding of and
focus on the needs and choices of all in receipt of benefits. In this briefing we
outline significant issues likely to be presented by implementation of the
Welfare Reform Bill in Northern Ireland and consequently the need for full
parliamentary scrutiny of the Bill.
This briefing has been developed and endorsed by the following
organisations:
Abbreviations
DLA
PIP
ESA
EQIA
DSD
SSA
NISALD
UC
NICCY
WRAG
Disability Living Allowance
Personal Independence Payment
Employment Support Allowance
Equality Impact Assessment
Department for Social Development
Social Security Agency
Northern Ireland Survey of Activity Limitation and
Disability
Universal Credit
Northern Ireland Commissioner for Children and
Young People
Work Related Activity Group
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Welfare Reform Bill – Key Issues
The Welfare Reform Group has identified five key areas of concern in relation
to the forthcoming Welfare Reform Bill. Under each of the areas we have
highlighted what we believe are the changes that should be made to ensure
the full protection of the rights of people with disabilities, their families and
carers.
Protecting the Most Vulnerable?
When the Chancellor, George Osborne presented his budget to the House of
Commons in June 2010 he stated that the budget “aims to tackle the deficit,
transform the economy through private sector led growth and ensure that the
most vulnerable are protected”.
The budget outlined the Coalition Government’s plans to reduce spending on
social security benefits by £11 billion and the aim is to ‘reduce dependency
and promote work’.
Many disabled people are already trapped in poverty and tend to be furthest
from the labour market, but to date none of the measures outlined by the
government has looked at the fundamental social and economic factors
which exclude disabled people from the work place. By focussing on the
individual responsibility the government is ignoring the societal barriers which
many disabled people face everyday.
Where work is not an option for disabled people they need to be supported to
live independently in their own community. Changes to DLA/PIP, Social
Fund Reform, ESA and the introduction of Universal Credit risk disabled
people becoming less independent and at greater risk of being excluded from
our communities.
1)
Measuring and Mitigating Impact
The completed Equality Impact Assessment (EQIA)1 relating to the new
Welfare Reform Bill was published by DSD in April 2012. The EQIA does
not give sufficient information to monitor the impact on disabled people and
carers. The report states that “the Analytical Services Unit will continue to
work with DWP to develop a Policy Simulation Model which will better equip
them to analyse the impact of policies across various section 75 groups”.
1
http://www.dsdni.gov.uk/index/publications/other_reports/equality.htm
The Welfare Reform Group understands that this work has not yet been
completed, therefore we believe that the DSD has not fulfilled its duties in
relation to monitoring the impact of the proposed reforms on disabled people
and putting in place mitigating actions. It should also be noted that the EQIA
did not consider any data from the NISALD2 survey, a major omission.
In the EQIA in relation to persons with dependants and persons without there
has been little or no consideration to the impact on people with caring
responsibilities. For example, in relation to the time-limiting of Contributory
ESA for claimants in the WRAG it states that the proposed changes “that no
adverse differential impact will arise as a direct consequence of this
measure”. However, if as person is to lose ESA as a result of this measure
the person with caring responsibilities may be impacted due to the
requirement to financially support individuals if they do not qualify for incomebased ESA.
Further consideration needs to be given in all of the areas of reform to the
impact on those with caring responsibilities.
What is needed?
 The Department for Social Development must complete and publicise
the findings from the Policy Simulation Model and clearly state how it
will mitigate any negative impacts on people with disabilities, their
families and carers.
2)
Disability Living Allowance and Personal Independence
Payment
Disability Living Allowance is being changed to a new benefit called Personal
Independence Payment. The changes will mean that everyone in the 16-65
year old age group will be re-assessed from October 2013. There will be new
assessment process which will include (for most people) a face-to-face
assessment with a health care professional.
There will still be two components of PIP, these will be called the ‘Daily Living
Component’ and the ‘Mobility Component’. There will only be two rates under
each of these components, the ‘standard rate’ and the ‘enhanced rate’.
The Welfare Reform Group has a number of key concerns in relation to the
introduction of PIP.
2
Northern Ireland Survey of Activity Limitation and Disability, NISRA, 2007
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 There has been a lack of modelling to ascertain how many people will
be affected by the changes in Northern Ireland.
 The proposed descriptors and thresholds for PIP have not yet been
finalised. The Group highlighted our key concerns in a response to the
initial consultation (available on request).
 The face-to-face assessment will cause considerable stress to disabled
people, their families and carers.
 “Life-time” or “indefinite” awards will no longer be available, even for
those with progressive conditions. There may be 5-10 year awards but
review periods will be set.
 Linking rules: these are rules which currently allow people who have
come off DLA to reclaim the benefit within 2 years if they need it again,
without having to ‘requalify.’ The Government plans to limit this to one
year for PIP. Inevitably this will hit people with fluctuating conditions,
for example, mental health conditions or multiple sclerosis, who might
have reduced symptoms for twelve months but then need DLA again
and have to go through the needlessly bureaucratic and stressful
process of making a whole new claim.
 Motability: Under PIP, families will lose the right to retain Motability
vehicles if they spend 28 days or more as a hospital in-patient in any
365 day period. This fails to recognise just how families depend on
these vehicles, often as their only vehicle in the family, and just how
often many disabled people with complex needs have to stay in
hospital. Losing their Motability vehicle could be devastating for
families.
 As the responsibility will be on the individual, once they receive
correspondence from SSA, to make a claim to PIP there may be
implications for people with learning and communication disabilities. If
people do not realise that they have been asked to apply for PIP they
may not realise the impact of not engaging in the process. The level
of support needed for these people must be recognised and resourced
by SSA.
 Neither the knock-on impact on carers’ finances or the likely increase
in caring responsibilities has been assessed in the existing impact
assessments.
 Carers currently depend on the person they look after receiving DLA
to be eligible for receipt of Carers Allowance. Therefore the loss of
PIP/DLA will directly impact on carers’ income. As disabled people
become less able to remain independent because of a loss of income
from DLA/PIP they will require more support from family members,
increasing the pressure on carers with risks to their health, social
inclusion and ability to juggle work and care.
 For families already struggling to make ends meet, often in debt and
where caring is already taking a serious toll on their health there is the
real risk that the loss of disability benefits could push them to breaking
point, and making caring financially and physically impossible.
What is needed?
 Publish policy simulation modelling results and clearly state mitigating
actions where the impact on disabled people and carers is required.
 Ensure that the descriptors and thresholds are amended to reflect the
true context in which people with disabilities live. Activities must be
located in the context and environmental (both physical and attitudinal)
in which the individual with a disability exists.
 Retain the current time limit of 2 years that exists with DLA.
 Remove the 28 day restriction in relation to hospital inpatient and
Motability Scheme.
 Allow for people to avoid unnecessary face-to-face assessments when
sufficient written evidence exists and ensure that people are not
financially penalised when sourcing additional medical evidence.
 The customer journey must be based on a rights based approach and
ensure that people are given the support that they require to complete
the process including, where necessary advocacy and advice from
externally organisations.
 Put in place protections for those people who may not meet the criteria
for PIP and their carers in relation to poverty and social exclusion.
 For those people with progressive conditions it is essential that ongoing
assessments do not have a negative effect on the person’s health due
to stress and anxiety.
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Case Study
Tracey is 43, she is currently in employment and in receipt of middle rate care
and high rate mobility components of DLA.
Tracey is concerned about the proposed changes to DLA and the medical
assessment.
“If I was to lose my DLA it would seriously impinge on my day-to-day
requirements. It would obviously put me in financial difficulties and I wouldn’t
be as independent as I currently am. I would be less active which would
impact on my health and wellbeing.
I live alone in a one bedroom NIHE flat and pay two carers for housework, to
buy groceries and pay the bills. Although not by choice I have Economy 7
heating and it costs me a fortune especially in winter. To cut costs last winter
I lived in the bedroom as I could only heat one room. Due to my condition I
fall a lot and destroy my clothes that I have to replace regularly. I also have
to buy a certain type of shoe which is hard wearing and more expensive.
I have concerns over the proposed medical assessment which will be carried
out by health professionals who may or in fact may not understand the impact
of living with my disability on a day-to-day basis.
If I lost my DLA I would socialise less. DLA has social consequences as well
as economic.”
3)
Universal Credit
Universal Credit will replace a range of current benefits and will be single
benefit for people aged 18 to 64 years old paid to each household. Some 16
and 17 year olds will be able to claim Universal Credit depending on their
circumstances.
The removal of the Severe Disability Premium (SDP) under Universal Credit
is a key concern. Extra support for disabled adults is built into the Universal
Credit differently to the current system of premiums and tax credits. In some
instances the loss of the SDP will lead to some people being less well off
under the Universal Credit.
The Welfare Reform Bill EQIA illustrates the entitlement changes for
household in the population pool segmented by disability. It is summarised
as follows:
 Households with a disabled person are substantially less likely to see a
change in their entitlement compared to non-disabled households (41%
compared with 27%), as they are more likely to be out of work
 For those who see an increase in their entitlement, the average gain is
higher for households with a disabled person (£38 per week) than
households without a disabled person (£21)
 For households who will experience lower entitlement than the current
system, the average change is also larger for disabled households (£39) than for non-disabled households (-£24).
The EQIA produced does not consider the impact on disabled children and
only reflects households.
Children with disabilities may also be impacted by Universal Credit. Under
the new benefit there will be a ‘disability addition’ and a ‘higher addition’ for
disabled children. Children who are in receipt of higher rate DLA (Care
component) will get the ‘higher addition’, which will be paid at a similar level
as now. However, those children who are currently receiving the lower level
of support through the ‘disability element’ (because they receive low or
middle rate DLA care component) will now receive the new ‘disability addition’
which will be worth only £27 instead of the current £54.
The NICCY report3 found that “Large families where there is a severely
disabled child are at risk of being affected by the benefit cap and this could
potentially impact on the lives of 6,500 children in Northern Ireland”.
In Northern Ireland we have the additional impact in relation to childcare
costs and the availability of childcare for children with disabilities. Without the
existence of a child care strategy which specifically considers the needs of
disabled children and their parents then mitigating measures will need to be
considered.
It has already been announced that the main application route for UC will be
online. Whilst there have been assurances that other methods will be
available to those who cannot access the online system, the WRG would
seek assurances that no-one is worse off due to not being able to access the
A child’s rights impact assessment of the impact of welfare reform on children in Northern Ireland, April
2012, G Horgan and M Monteith (NICCY)
3
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online service. There has been extensive research which has demonstrated
that disabled people face significant barriers in accessing online resources for
a wide range of issues.
Under UC, the work related requirement will be extended, where appropriate
and dependent on the particular circumstances of the individual claimant. For
example, people with regular and substantive caring responsibilities, limited
capability for work and work-related activity will not have any work related
conditions placed upon them. All claimants will be required to accept a
‘claimant commitment’. The regulations must ensure that conditionality
requirements are clearly set out for carers and disabled people and that
individual circumstances are considered at all times.
However, the regulations don’t appear to recognise that disabled people can
themselves be carers. For example, under Universal Credit claimants will
only be able to receive either the LCW/LCWRA element or the carer element
which is overly restrictive. This means that claimants will have to choose
between their disability and their caring responsibility to establish their
eligibility for UC.
In fact, analysis of the 2001 census shows that people caring 50 or more
hours per week in Northern Ireland are twice as likely to suffer from poor
health as non-carers (20 % against 9%). In addition, those providing 50
hours or more care per week are more than twice as likely to be ‘permanently
sick or disabled’ as those not caring (11% against 5%).
The draft regulations in relation to Universal Credit have already highlighted
issues in relation to the relationship between ESA/UC and PIP. Further
details can be provided on this area.
It is clear that if a disabled person is to be adversely impacted by any of the
changes under UC then there will be an impact on people with caring
responsibilities.
Government has stated that under the transitional protection arrangements
that “there will be no cash losers as a direct result of the move to UC where
circumstances remain the same”.
What is needed?
 Transitional protection is only in place ‘where circumstances remain the
same’ and measures need to be put in place to mitigate the negative
impact on overall income levels where a persons circumstances do
change.
 Children with disabilities and their families will be impacted by UC.
Mitigating measures need to be put in place to ensure that disabled
children are not worse off due to the implementation of UC, including
the consideration of changes in circumstances which mean the
transitional protections will no longer be applicable.
 Pay a higher percentage of childcare costs of disabled children.
 Ensure that people receive the appropriate support when making their
claims, including routes other than online, which will not have a
detrimental impact on the persons claim.
 Ensure that the regulations protect disabled people and carers in
relation to conditionality
 Ensure that benefit office staff are trained to recognise carers in the
claim process .This is vital, because the Government plans to introduce
much tougher measures for people on Universal Credit who are forced
to look for work – including the removal of their benefits if they are not
considered to be trying hard enough.
4)
Changes to Contributory Employment Support Allowance (ESA)
The Welfare Reform Bill will make changes to ESA. For people who are in
the Work Related Activity Group (WRAG) for Contributory ESA then there will
be a 365 day time limit on claiming for this group. This will come into affect
straight away. So if you are in this group and have already received this
benefit for 365 days then you will lose this benefit and will have to apply for
other benefits. ESA Youth will also no longer be available when the Bill
becomes law.
The time limiting of Contributory ESA for those in the Work Related Activity
Group will have significant impact, particularly because the time limiting is
effective straight away. There is little evidence to show what support has
been given to those on the WRAG group in the time period and how effective
support has been in people gaining and retaining employment. Evidence
needs to be provided to demonstrate that effective support will be available
for those people in the WRAG group.
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The average loss in net income for Contributory ESA cases subject to timelimiting is £30.50 per week for men and £32 per week for women 4.
It is expected that 53% of those losing their contributory ESA will be wholly or
partially compensated by income-related ESA5.
The mitigating measures proposed by the Department in its EQIA6 are:
 Individuals with low or no other income may apply for income-related
ESA. This will in effect act as a safety net to support those who have
no means for supporting themselves.
 In addition individuals who do not qualify for income-related ESA will
still be able to access the support offered by the Work Programme to
help them continue to move towards work.
 The proposal move towards alignment with contributory JSA but with a
longer ‘time-limit’ to recognise some disability-related barriers to work.
Currently there is no ‘Work Programme’ in Northern Ireland. The Steps 2
Success Programme is currently out for consultation by DEL. Furthermore,
the Steps to Work evaluation found that “Consultation findings suggest that
not all Employment Service Advisors are using the more flexible and tailored
support needed by those with significant barriers to employment”. The report
notes that less than one third (31%) of respondents with a disability indicated
that they had been asked about their additional needs. It further states that
the issue of having a disability is important as “results from the StW Leavers’
Survey suggest that those with a disability are less likely to be in employment
than those without a disability (14% compared to 26%)”.
Under the current proposals the only option available to those receiving
Contributory ESA an in the WRAG after the 365 day time limit will be to apply
for Income Based ESA or JSA. If the case is that JSA is to be applied for
then when that person presents to apply for JSA and the details of their
health condition or disability are made known that they are deemed not
available for work and therefore not entitled to apply for JSA. This will lead to
many people being in a situation where they cannot apply for with ESA or
JSA (or the equivalent under Universal Credit).
Furthermore the EQIA states “Removing the youth provisions will affect
young disabled people. The Executive is committed to promoting
employment prospects for younger people, with and without health
conditions, by investing in employment support, apprentices and further
education.”
4
Welfare Reform Bill (Northern Ireland) 2011, Completed Equality Impact Assessment, April 2012,
Department for Social Development, (Page 66)
5 Ibid
6 Welfare Reform Bill (Northern Ireland) 2011, EQIA, (Page 68)
Case Study
David is 30, single and was recently placed in the WRAG and receives
Contributory ESA. David is currently appealing the outcome of his work
capability assessment as he recently had to give up work and feels he should
qualify for the support group.
“The change in my circumstances for work to benefits was very difficult to
adjust to. I could not work part-time never mind full time now. It I was forced
into work my health would deteriorate. One of the benefits of not working is
that it keeps you well. It is more cost effective in the long run because I would
probably end up in hospital.
I agree that many people with disabilities can and would like to work, however,
the threat that I may be forced into work, that I couldn’t do has me really
worried.
I have heard on the radio and television about so many people failing the
WCA, subsequently failing the appeals process and then having to move on to
Job Seekers. If my appeal is not successful and I stay on Contributory ESA
then when it comes up to a year I might lose my benefit if I haven’t found work.
My old employer couldn’t support my disability in work so what chance will I
have of finding a new employer, even if I could. I don’t think I would get
income based ESA so I would have to move onto Job Seekers, if that happens
I know that I then have to sign up to look for work. I just know that I couldn’t
cope with all that and the fear and stress is already impacting on my mental
and physical health.”
What is needed?
 Remove the time-limiting of Contributory ESA for those in the WRAG
Group
 Exclude the time spent on the assessment phase (should time-limiting
go ahead)
 The Executive must demonstrate that those who receive contributory
ESA and are in the WCAG group have been given effective support to
move into work. Evidence must be provided on how many people
having gained and sustained employment in the WRAG.
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 For the 47% that will not be eligible for income-related ESA then
additional supports must be made available to ensure that these people
are not pushed further into poverty by these measures (should timelimiting go ahead). This includes making provision to ensure that
claimants are not in limbo between ESA and JSA or their equivalent
under Universal Credit.
 The Executive must provide more detail on what mechanisms are to be
put into place to support young people with disabilities impacted by the
end of ESA Youth.
5)
Social Fund Reform
When the new Welfare Reform Bill for Northern Ireland becomes law the
current payments from the Social Fund will change. Some payments will be
part of a new type of support scheme which is being planned from April 2013,
and some payments will become part of the new Universal Credit benefit
system being introduced from October 2013.
The Department for Social Development recently consulted on a new
Discretionary Support Policy for Northern Ireland.
The EQIA on the Welfare Reform Bill states that “figures for disability are not
available from the social fund data scans”. However, given the nature of
Community Care Grants a significant proportion will be people with
disabilities, their families and carers.
What is needed?
 Further work needs to be undertaken to measure the impact on people
with disabilities, their families and carers.
 The new policy must be informed by research and ensure that the rights
of people with disabilities to independent living are not impacted.
 The fund must be ring-fenced to ensure that people have access to
support in living in the community and in crisis.
6)
New housing criteria
From April 2013 it is intended to introduce size criteria for new and existing
working age housing benefit claimants living in the social rented sector. The
size criteria will replicate the size criteria that apply to claimants in the private
rented sector and whose claims are assessed using the Local Housing
Allowance Rules.
A bedroom for a non-resident carer will be taken into account in determining
the size criteria, where that carer provides necessary overnight care for the
claimant or their partner.
In England and Wales there has already been a successful legal challenge7
over the amount of local housing allowance where extra bedroom required
due to needs of disabled person. This has led to guidance been issued by the
Department of Work and Pensions8.
The EQIA states that “the impact of the measure on households containing a
disabled claimant or partner suggests that a higher proportion of households
containing a disabled person would be more likely to be affected by the
introduction of the size criteria”.
It further states that “households containing a disabled adult and with a nonresidential carer will be assessed as having a reasonable requirement for an
additional room. This will have the effect of reducing the number of disabled
claimants affected by the measure”.
The mitigating measure only takes into account the need for an overnight
carer and does not take into account the extra space that may be needed for
aids and equipment, medical equipment or to provide therapies in the home.
It also does not take into account other factors in living in a particular area, for
example, being close to family or friends that provide support, accessing
community service, transport and being part of the community. The provision
of accessible housing options may already significantly reduce the choice a
disabled person has over where to live. By implementing the housing criteria
as it currently stands disabled people may not have the opportunity to live
independently in their own community.
The impact of the housing criteria will have an impact on those living in social
and the private rented sectors.
7
8
Burnip v Birmingham City Council & Anor - http://www.bailii.org/ew/cases/EWCA/Civ/2011/629.html
DWP HB/CTB Circular A6/2012
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What is needed?
 Exemptions should be made for people with disabilities living in adapted
homes and those in receipt of DLA and/or ESA
 There needs to be provision to ensure that factors such as access to
community support, services, transport are also taken into
consideration when applying the new housing criteria.
Case Study
J is 43 years old and has Downs Syndrome. He now lives in his own flat but it
has taken him over twenty five years to get a home of his own. J has now been
living independently for just over two years in a social housing two-bedroom
flat. He did not request the two-bedroom flat, but it was the only one that was
offered to him. He has now finally settled in and to him it is his "home". Since
moving in, he has adopted the extra bedroom as his "office" complete with a
computer. The room also has a spare fold-out bed for family and friends to visit
and stay.
J and his parents are now very concerned that he may have to move as a
result of this new policy, taking him away from his local community and support
networks. They feel that it would be very disruptive and affect his mental wellbeing. Since moving to his flat, J has for the first time felt that he also has
some rights, as well as some choice over his own life. Having to move would
destroy his aspiration to live more independently and would most likely have a
negative knock-on effect on the many new skills he has acquired, as well as
undermining his confidence.
J currently lives a relatively short distance from his parents, who support him
as much as they can. He also gets 17 ½ hours support from a support worker.
If J was forced to move further away from his parents and support network as
a result of the changes to the Housing Benefit regime, this would most likely
lead to J needing more support paid for by the State.
Getting the Message Right
Mind your Language
As organisations working for and with disabled people, their families and
carers we are only too aware of the effect of ‘the scrounger’ message is
having. Disabled people, families and carers already face negative attitudes
on a daily basis. There is evidence that the language being used to gain
public support for these welfare reforms is adding the stigma people face in
their lives.
It is therefore essential that everyone when talking about welfare reform
remembers that they have a social responsibility to ensure that they are not
adding to the negative perceptions of disabled people. Public authorities are
reminded of their duties under the DDO to promote positive attitudes to
disability.
Communicating the Changes
It is essential that people are made aware of the significant changes that will
impact on their lives. It is imperative that communication strategies are
developed and resourced to ensure that everyone is made aware of the
changes that will impact them. All communication strategies must ensure
that they are accessible to people with disabilities. For example, provision
must be made to communicate using Easy Read, audio, Braille and large
print.
Key asks
When considering the impact of welfare reform on disabled people and carers
in Northern Ireland the Welfare Reform Group has three key asks:
1. Ensure that specific actions are put in place to mitigate the
disproportionate affects that the Welfare Reform Bill will have on people
with disabilities, their families and carers.
2. To put mechanisms in place to monitor over time the impact of the
Welfare Reform Bill on people with disabilities and indirectly on their
families and carers. Where significant negative impacts are established
then ensure mechanisms are put in place to amend the Bill as required.
3. To put in place actions that are not just about ‘individual responsibility’
but address the significant barriers that disabled people face in living
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independently, gaining and retaining employment and being part of their
community.
Further Information
If you would like further clarification or information on any element of
this briefing please contact:
Karen Hall
Disability Action
Telephone: 028 9029 7880
Email: karenhall@disabilityaction.org
Jenny Ruddy
Mencap Northern Ireland
Telephone: 028 9069 0152
Email: Jenny.Ruddy@mencap.org.uk
John McCormick
Carers Northern Ireland
Telephone: 028 9043 9843
Email: John.McCormick@carersni.org
Brenda Maguire
MS Society Northern Ireland
Telephone: 028 9080 2802
Email: BMaguire@mssociety.org.uk