HC Deb 22 July 1991 vol 195 cc738-40
5. Mr. Watts

To ask the Secretary of State for Social Security what assessment has been made of the effect on incentives to work for disabled people of the introduction of the disability working allowance.

6. Mr. Gerald Bowden

To ask the Secretary of State for Social Security what assessment he has made of the effect on incentives to work for disabled people of the introduction of the disability working allowance.

Mr. Scott

The introduction of disability working allowance will provide a real opportunity to work for up to 50,000 disabled people who would like to do so, but whose earnings capacity is limited.

Mr. Watts

Does my right hon. Friend agree that the disability working allowance will provide an effective bridge for disabled people between total dependence on benefits and the world of work in a way that is rather similar to the job that family credit has done for families on low incomes?

Mr. Scott

I very much agree with my hon. Friend. Disability working allowance will remove a rigid distinction in the present benefit structure between ability and inability to work. As people become increasingly aware of the opportunities that are available to them, many will take those opportunities. One of the most important aspects of the allowance is that people who avail themselves of the opportunity to go into work will for two years retain underlying entitlement to whatever disability benefit they were drawing beforehand. That should give them confidence to try out work.

Mr. Gerald Bowden

I congratulate my right hon. Friend on this new and radical initiative, which offers the opportunity for independence and promotes integration of the disabled. Does he agree that it is far better to target resources on those who are in most need, in this case low-income families, than to make uncosted and fanciful promises, as the Opposition have done, which can never be fulfilled?

Mr. Scott

I certainly agree with my hon. Friend. The Government have a good record on incremental improvements in the benefits that are available to the long-term sick and disabled. We have made an increase in real terms of more than £7 billion a year to meet the needs of those groups and we have concentrated on those who need most help. I am sure that that is the right approach.

Mr. Tony Banks

Since we are talking about people with disabilities, may I raise a case that came my way this morning? It relates to a claim for attendance allowance in leaflet DS2(1990), which is straightforward. It is a good attendance allowance, but when trying to get hold of a DS1500 report from the local GP and from the hospital, my constituent encountered complete ignorance of DS1500 report writing. Has everyone been advised of the procedures, particularly those who will be approached by people asking for attendance allowance and for a DS1500 report?

Mr. Scott

I am surprised by what the hon. Gentleman has said and I should be grateful if he would send me details of the case so that I can follow it up. We are anxious that those who have to produce such reports are fully aware of the necessary forms and how to complete them. We are conscious that there have been some difficulties and that is why, when we introduce disability living allowance next year, we shall, to a considerable extent, rely on the claimant's assessment of the effect of the disability on his life, supported by a carer, a general practitioner or some other professional so that we can substantially demedicalise the way in which we process a claim for benefit.

Mr. Bellotti

Will the Minister consider the following? He will be aware that fewer people—[HON. MEMBERS: "Reading."] I can do it perfectly well without reading. He will be aware, as the House is, that over the past 12 months, fewer people with disabilities have gone into real jobs and that training and enterprise councils have recruited fewer people with disabilities for training courses than ever before. Will he now consider extending allowances to those who go on training courses so that eventually they can be encouraged to go into real jobs?

Mr. Scott

I believe that the allowances that are paid —[HON. MEMBERS: "Reading."] Certainly not. The allowances should be attractive to disabled people. We are anxious that they take part in training schemes and avail themselves of opportunities for employment. I am also conscious that new technology will make it possible for more disabled people either to take jobs in places of work, or, increasingly, to work from home.

Mr. Dunn

Will my right hon. Friend confirm that it is the aim of the Government's policy to improve work incentives, to get people into work and to eliminate poverty? Bearing in mind those three points, would not it be extraordinarily stupid to introduce a minimum wage?

Mr. Scott

That matter has been dealt with effectively in the House on a number of occasions in recent days. I understand why those who analyse these matters are convinced that the introduction of a minimum wage would destroy, not create, jobs. Our approach is much better. When I meet disability organisations or disabled people, I find that the vast majority are keen to take the opportunity of employment. The Government have, for the first time, moved to a proper partial capacity benefit.

Mr. Alfred Morris

Has the Minister seen the all-party disablement group's briefing on these questions, with its strong criticism of the punitively high marginal tax rates that DWA involves for disabled people, leaving them with as little as 6p in the £1 of increased earnings? Is this not a fierce new poverty trap? The Government plan to save millions of pounds, as they have told me, by introducing the new allowance. Instead, why cannot they allow disabled people to keep more of their own earnings?

Mr. Scott

The right hon. Gentleman knows very well that when one introduces benefits that relate to people's earnings, there is a balance to be struck between having too steep or too shallow a rate of withdrawal of benefits as earnings increase. Under the system for DWA, if earnings increase, the income of disabled people will also increase. We have moved away from the over 100 per cent. withdrawal of benefit that operated under the Labour Government.