HC Deb 08 June 1998 vol 313 cc704-6
16. Mr. John McAllion (Dundee, East)

How many claimants in receipt of disability living allowance have been subject to the benefit integrity project, to date. [42943]

The Parliamentary Under-Secretary of State for Social Security (Mr. John Denham)

As at 31 March 1998, a total of 72,470 cases, including 14,815 renewal cases, had been examined under the benefit integrity project. A more detailed monthly statistical report can be found in the House of Commons Library.

Mr. McAllion

A few months ago, figures supplied to me by a Government official showed that for every claimant who had benefits increased as a result of the benefit integrity project, 10 had their benefits reduced or stopped. Will my hon. Friend tell me whether the situation has improved since then, by which I mean that fewer claimants are having their benefits cut or stopped? If it has not improved, will he tell the House whether the Government share the view of the Social Security Committee, which in its recent report called for the project to be put on six months' probation, with a view to closing it down if it does not stop putting people with disabilities at an even greater disadvantage?

Mr. Denham

First, no one who is entitled to disability living allowance should have anything to fear from the benefit integrity project. It is important that we make the right decisions about benefit entitlement, which is why my right hon. Friend the Secretary of State introduced new procedures into the project in February, and further improvements have subsequently been made. The report of the Social Security Committee is important. We are considering it and we shall respond to the House in the normal way in due course.

Mr. Edward Leigh (Gainsborough)

As a member of the Social Security Committee, I ask the Minister whether he has managed to improve control mechanisms in his Department. We must never again see the sort of anguish that was caused by the introduction of this project. The Minister responsible heard about it only a month after its introduction, by way of a telephone call on Preston railway station.

Mr. Denham

The report raises several important issues that we shall address in future. The benefit integrity project was designed under the previous Administration. The Government have taken a series of steps that aim to improve the operation of the benefit integrity project and to ensure that the correct decisions are taken. I hope that the hon. Gentleman recognises that it was necessary for us to take that action and will commend us for doing so.

Dr. Brian Iddon (Bolton, South-East)

A few months ago, I raised concerns in this place about the way in which seriously mentally ill people were being treated by the benefit integrity project. At that time, the Secretary of State kindly informed me that she was involved in discussions with Mencap. In view of the fact that seriously mentally ill people in my constituency continue to lose disability living allowance, will the Minister say whether those discussions have concluded and, if so, whether any special treatment will be given to the seriously mentally ill who are losing DLA contrary to medical advice?

Mr. Denham

At this stage I can confirm that we have agreed to exclude some further categories of people—particularly those aged over 65 who will not be contacted—from the benefit integrity project. My right hon. Friend has agreed to consider the possibility of extending the groups exempt from the project, but I cannot give my hon. Friend the direct response that he seeks this afternoon.

18. Mr. Damian Green (Ashford)

What discussions she has had with representatives of disability groups concerning the taxation of disability living allowance. [42945]

The Parliamentary Under-Secretary of State for Social Security (Mr. John Denham)

Any discussions have been of a general, rather than specific, nature—for example, in the recent meetings arranged by Mencap. We have made it clear in our Green Paper that DLA will remain a national and universal benefit and, as such, will not be subject to a means test. Taxation is a matter for my right hon. Friend the Chancellor of the Exchequer, but we have no current plans to tax DLA.

Mr. Green

I must press the Minister a little further. Will he rule out definitively, once and for all, any prospect of the Government taxing disability living allowance?

Mr. Denham

I must repeat the reply that I have given. Taxation is always a matter for the Chancellor of the Exchequer, but I can confirm that we have no current plans to tax DLA—and nor was there any suggestion of taxing it in the welfare reform Green Paper.

Mr. David Winnick (Walsall, North)

Is the Minister aware that all hon. Members will welcome his comment that there is absolutely no justification for taxing disability benefits, which are not taxed at present? One trusts that that will remain the Government's position now and upon their re-election.

Mr. Denham

I thank my hon. Friend for his comments.