Disability Discrimination Act: Exemptions (Hansard, 13 April 1999)

§ The Minister of State, Department for Education and Employment (Baroness Blackstone)
My Lords, we estimate that 1.1 million employers in the UK, or 89 per cent. of the total, are exempt from the employment provisions of the Disability Discrimination Act 1995. As most employees are actually employed by larger organisations, this means that over 75 percent. of disabled employees are protected by the Act. This follows the Government's decision to lower the exemption threshold! from 20 to 15 employees, bringing more employers into coverage.

§ Lord Ashley of Stoke
My Lords, I am grateful for that reply, but can my noble friend tell us whether any disasters have occurred or any unreasonable burdens have been imposed on those small employers which the Government recently brought within the scope of the Act? If not, can she tell the House what credence she attaches to the claims of those small firms which are outside the scope of the Act at present that they should be excluded from the Act because they fear that unreasonable burdens will be imposed on them? Is that not nonsense when the Act specifically says that only reasonable provision shall be made? All the Act says is, "Don't discriminate against disabled people". Why are these employers excluded?

§ Baroness Blackstone
My Lords, it is a little early to know what the impact of lowering the threshold has been on small employers. However, we are monitoring 621 it and a major research project is examining the matter. I would not want to claim that any disasters have taken place but I think it is a little soon to be absolutely certain of its impact. It is right, as my noble friend said, that employers have to do only reasonable things under the legislation, but small firms need to know what that means in practice in particular instances. Otherwise they might try to avoid performing their duties under the Act. They need information, advice and assurance. It is important that before we lower the threshold further we have confidence that they and others believe that this can be done without too much difficulty.

Lord Campbell of Croy
My Lords, as the first review—a mandatory review—of Section 7 of the Act, the section dealing with small firms, has presumably taken place leading to the reduction from 20 employees to 15, what plans are there for future reviews and their timing?

§ Baroness Blackstone
My Lords, the Government have made a commitment to consult the disability rights commission, when it has been established, on this matter. We hope it will be set up by April 2000. Once it is established we will ask it to consider the possibility of a further threshold reduction and take its advice.

§ Lord Addington
My Lords, is the Minister aware of an RNID survey which shows that with the lowering of the threshold marginal costs fall with it? Should not the Government confirm these findings? If there is a much lower cost, surely there are no grounds for denying certain people the protection of the law in this area of discrimination.

§ Baroness Blackstone
My Lords, there is nothing in what I said earlier which suggests that the Government's wish to stage this further protection has anything to do with cost. I hope that answers the noble Lord's question.

§ Baroness Blatch
My Lords, can the Minister tell the House how many companies have 14 or fewer workers, how many single self-employed workers are registered as companies, and how many companies have 10 or fewer workers, so that we can have some idea of what percentage will be taken in each phase?

§ Baroness Blackstone
My Lords, I cannot give all those statistics but I would be very happy to write to the noble Baroness. What I can say is that 45,000 extra employers are now covered by the new provisions lowering the threshold from 20 to 15. More than 75 per cent. of all disabled employees are now covered. I do not think it would be reasonable to ask me to give all those statistics while there is no commitment by the Government to lower the threshold to any particular number of employees. When the Government have made such a commitment, of course I should have those figures at my fingertips. But I will write to the noble Baroness.

§ Lord Ashley of Stoke
My Lords, I am puzzled. If no special preparations were made before the Government 622 reduced the number from 20 employees to 15, what is to prevent the Government from going ahead now with the remaining 25 per cent. without all this preparation and information, advice and guidance? They did not give that to the other firms. Why now?

§ Baroness Blackstone
My Lords, the Government believe it right to move towards a lower threshold on a gradual basis. We want to take employers with us rather than leaving them worried and concerned about these kinds of changes. I wish to try to convince my noble friend that that is the right approach. The Government accept that it is important to try to bring more disabled employees within the protection of the Act. However, the right way to do that is in stages.