HC Deb 04 February 1991 vol 185 cc5-6
6. Mr. Couchman

To ask the Secretary of State for Social Security how many people will benefit from the introduction of the new disability working allowance.

The Minister for Social Security and Disabled People (Mr. Nicholas Scott)

Once the new benefit is established we expect about 50,000 people to be receiving disability working allowance at any one time.

Mr. Couchman

I am grateful to my right hon. Friend for his reply. Does he agree that the new disability working allowance will promote the employment of disabled people and will encourage employers to employ them where, hitherto, they have been somewhat remiss in fulfilling the quotas assigned to them?

Mr. Scott

I believe that the new allowance will play a significant part. I can reinforce what my right hon. Friend the Secretary of State said—that demographic trends will be important in encouraging employers to look beyond the disability that first confronts them to the abilities that often lie behind.

Mrs. Margaret Ewing

Is the Minister satisfied that employers will ensure that disabled people are offered equality of opportunity and wages in jobs? Surely, one of the most ridiculous aspects of current legislation is that disabled people are offered very low-paid jobs with little incentive for further training. Will he assure us that there will be no repercussions for those who receive housing benefit if they take up the disability working allowance?

Mr. Scott

I wish to encourage to the greatest possible extent absolute equality of employment opportunity for people with disabilities. I urge employers and other agencies to ensure that that is possible. I suspect that there will always remain a group of people with disabilities who will be at a disadvantage one way or another. The benefit is being introduced so that the earnings that they have, which may be lower than those of able-bodied people in certain circumstances, can be topped up so that they can enjoy a proper job at a proper level of income.

Mr. Dickens

Does my right hon. Friend accept that spending in real terms has risen by 100 per cent. since 1978–79 and that that is a remarkable achievement by the Government?

Mr. Scott

I reckon that it must be 100 per cent. by now as it was 98 per cent. several months ago. That shows the Government's commitment to the interests of the long-term sick and disabled.

Mr. Alfred Morris

If the DWA is so good, why are the national organisations that speak for disabled people so united in their strong criticism of proposals for the allowance which, as the Minister knows, they see as family credits without the families? How can the Minister justify marginal tax rates as high as 94 per cent. for disabled recipients when any such imposition would be described as confiscation by non-disabled people? Will he also confirm that the allowance will ultimately be a cost saving to the Government?

Mr. Scott

I am surprised that the right hon. Gentleman is so grudging about a radical and innovatory effort to ensure that those people with disabilities who want to work and are able to work can get into work. Many of them may come into work for the first time with earnings topped up by DWA. They will eventually be able to improve their position so that they work to the fullest extent possible. Although organisations for the disabled might like the benefit to be more generous than it is at the moment, the majority of the people to whom I have talked welcome its concept warmly.