government support towards the additional living costs of working–age disabled people: government...

7/31/2019 Government support towards the additional living costs of workingage disabled people: Government Response t

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HC 105Published on 18 May 2012

by authority of the House of CommonsLondon: The Stationery Office Limited

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House of CommonsWork and Pensions Committee

Government support

towards the additionalliving costs ofworkingage disabledpeople: GovernmentResponse to theCommittee's SeventhReport of Session201012

First Special Report of Session 201213

Ordered by the House of Commons

to be printed 16 May 2012


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The Work and Pensions Committee

The Work and Pensions Committee is appointed by the House of Commons to

examine the expenditure, administration, and policy of the Department for

Work and Pensions and its associated public bodies.

Current membership

Dame Anne Begg MP (Labour, Aberdeen South) (Chair)

Debbie Abrahams MP (Labour, Oldham East and Saddleworth)

Harriett Baldwin MP (Conservative,West Worcestershire)

Andrew Bingham MP (Conservative, High Peak)

Karen Bradley MP (Conservative, Staffordshire Moorlands)

Sheila Gilmore MP (Labour, Edinburgh East)

Mr Oliver Heald MP (Conservative, North East Hertfordshire)

Glenda Jackson MP (Labour, Hampstead and Kilburn)

Brandon Lewis MP (Conservative, Great Yarmouth)

Stephen Lloyd MP (Liberal Democrat, Eastbourne)

Teresa Pearce MP (Labour, Erith and Thamesmead)

The following Members were also members of the Committee during the

Parliament:

Ms Karen Buck MP (Labour, Westminster North), Alex Cunningham MP (Labour,

Stockton North), Margaret Curran MP (Labour, Glasgow East), Richard Graham

MP (Conservative, Gloucester), Kate Green MP (Labour, Stretford and Urmston),

Sajid Javid MP (Conservative, Bromsgrove) and Shabana Mahmood MP (Labour,

Birmingham, Ladywood)

Powers

The Committee is one of the departmental select committees, the powers of

which are set out in House of Commons Standing Orders, principally in SO No152. These are available on the internet via www.parliament.uk

Publications

The Reports and evidence of the Committee are published by The Stationery

Office by Order of the House. All publications of the Committee (including press

notices) are on the internet at www.parliament.uk/workpencom

The Reports of the Committee, the formal minutes relating to that report, oral

evidence taken and some or all written evidence are available in a printed

volume.

Committee staff

The current staff of the Committee are Carol Oxborough (Clerk), Catherine Tyack

(Second Clerk), James Abbott (Committee Media Adviser), James Clarke (Inquiry

Manager), Emma Sawyer (Senior Committee Assistant), Hannah Beattie

(Committee Assistant).

Contacts

All correspondence should be addressed to the Clerk of the Work and Pensions

Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone

number for general enquiries is 020 7219 2839; the Committee's email address is

[email protected]


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First Special Report

On 19 February 2012 the Work and Pensions Committee published its Seventh Report of

Session 201012, Government support towards the additional living costs of working-agedisabled people, HC 1493. On 10 May 2012 we received the Governments Response to theReport. It is reproduced as an Appendix to this Special Report.

In the Government Response, the Committees conclusions and recommendations are inbold text. The Governments response is in plain text.

Appendix: Government response

Introduction1.The Government welcomes the Seventh Report of the Work and Pensions SelectCommittee on support towards the additional living costs of working-age disabled peopleand in particular the Committees endorsement of the need for reform of Disability LivingAllowance (DLA).1

2.As the Committee recognise, DLA is a benefit that is based on unclear criteria, is not wellunderstood and with no proper system of reviewing awards. The 2004/2005 NationalBenefit Review found that around 630m of DLA a year is overpaid as a result ofunreported changes in circumstances, whilst 190m is underpaid.

2

3.The new Personal Independence Payment assessment has been developed inconjunction with a group of independent health, social care and disability experts and willbe fairer, more objective and consistent. There will be a more responsive and individualisedprocess for ensuring that claimants continue to receive the right level of support and theDepartment will work to ensure that public awareness of the benefit and the process formaking a claim are improved.

This is vital support

that is not reaching the people to which it was intended. The introduction of PersonalIndependence Payment will ensure that the Government can continue to support thoseindividuals experiencing the greatest barriers to living an independent life, while ensuringthat the benefit continues to remain affordable and sustainable in the future.

4.The Government recognises that further work is required before Personal IndependencePayment is introduced in April 2013 and is grateful to the Committee and witnesses fortheir insight during the evidence sessions, as well as the conclusions and recommendationscontained in their report. The Department is continuing to work with stakeholders andexperts in developing the way in which the new benefit is delivered and administered. A 15week consultation on the assessment thresholds recently closed on 30 April.3

1 Work and Pensions Select Committee, Government support towards the additional living costs of working-age

disabled people HC (2010 12) 1493

In addition,on 26 March, the Department published the consultation document Personal

2 Fraud, error and other incorrectness in Disability Living Allowance: The results of the Benefit Review of DisabilityLiving Allowance, 2005

3 http://www.dwp.gov.uk/docs/pip-assessment-thresholds-and-consultation.pdf


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Independence Payment: completing the detailed design on the proposed rules intended tounderpin the new benefit.4

Conclusions and Recommendations

This consultation will close on 30 June. The Department willconsider the feedback received and plan to publish formal responses to both consultationslater in the year. The Government will continue to provide further information on

processes as it is developed and when appropriate.

[Paragraph 8] As we have taken the relatively unusual step of conducting our inquiry

while parliamentary scrutiny of the relevant Bill was under way, we trust that the

Government will take our conclusions and recommendations into account in its formal

consultation on the revised assessment criteria announced in January and then in

drafting the relevant Regulations, which will set out the detailed structure and rules for

PIP.

The Department can assure the Committee that all conclusions and recommendationsmade in the report will be carefully considered alongside all other responses receivedduring the consultation on the assessment criteria and the consultation on completing thedetailed design.

There has been significant interest in the consultation on the assessment criteria andvarious meetings were arranged with stakeholders to discuss the consultation document,seek views, answer questions and gather feedback. The consultation closed on 30 April.The Government is considering the responses received and aims to publish its formalresponse later in year in line with normal consultation guidance.

The Department has published a consultation on the detailed rules that will underpinPersonal Independence Payment which will run until 30 June. Officials will meet anddiscuss the proposals with stakeholders throughout the consultation period. This willinclude engagement with the Personal Independence Payment ImplementationDevelopment Group.

Policy objectives

[Paragraph 42] We accept the argument that DLA requires reform. There is some

evidence that the benefit has insufficiently clear criteria and is not always well

understood. The complex claim form can also make it difficult for people to make aclaim. We therefore support the Government's intention to address these issues.

[Paragraph 43] There is not a proper system for reviewing DLA awards: 24% of

working-age DLA claimants have either had no change in or no review of their award

for over a decade. While official fraud and error levels are comparatively low, there is

evidence that around 11% of awards may be overpaid due to changes so gradual over

time that claimants could not be expected to report a change in circumstances. We

accept that there needs to be an appropriate, consistent and clear system for reviewing

awards.

4 http://www.dwp.gov.uk/docs/pip-detailed-design-consultation.pdf


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[Paragraph 44] Some witnesses believed that the necessary changes could have been

made within the existing DLA structure. The Government's view is that this would have

required changes to primary legislation and that there are advantages to a "fresh start".

We agree that introducing a new benefit under a new legislative framework could offer

the opportunity to improve support for disabled people while addressing the problemswith DLA which the Government has identified. However, we believe the starting-point

for reform should be to design a new benefit which meets its objectives in recognising

the additional costs which disabled people incur. It is unfortunate that a background of

budget cuts has created unnecessarily high levels of anxiety about this reform amongst

DLA recipients.

Following the publication of the Committees report, the Welfare Reform Bill receivedRoyal Assent on 8 March. The Government welcomes the acknowledgment from all sidesof the House and the Committee that Disability Living Allowance (DLA) is a benefit that is

in need of reform and that introducing a new benefit is the right approach.Reform of the welfare system has traditionally been piecemeal, resulting in a confusingarray of additions and exceptions bolted on to an outmoded system. Currently, theentitlement criteria for DLA are set out in primary legislation, have restrictive definitionsand provide insufficient flexibility to make change. This inflexibility was demonstratedwhen the mobility component of DLA was extended to severely visually impaired people -the change only coming about as a result of amendments made to both primary andsecondary legislation.

The systems of administration behind DLA are outdated. The IT system is outdated, claims

involve large amounts of paper and administrative processes are labour intensive. Thereare also no systematic processes in place for ensuring that awards remain correct.Improving the processes for delivering the benefit will help drive efficiencies as well asimprove accessibility and claimant experience. These reforms present an ideal opportunityto start afresh, keeping the best elements of DLA that disabled people value, but bringingthe benefit up-to-date in order to better reflect 21st century society.

The Department would like to assure Committee members that the starting-point forreforms has always been to design a benefit which meets its objectives in recognising theadditional costs arising from the impact of a health condition or disability. Like DLA,Personal Independence Payment is designed to make a contribution towards the extra

costs that disabled people face. However, it would not be feasible to measure the actualcosts that individual disabled people incur. Such an approach would result in a subjective,inconsistent, complicated and lengthy assessment. Instead the Department intends toconsider a proxy for these extra costs. DLA uses individuals care and mobility needs as thisproxy. With Personal Independence Payment the Department is considering anindividuals ability to participate in society. It believes that this is a reasonable proxy for theextra costs caused by disability and the impact of impairments, allowing it to focusresources on those with the greatest need.

[Paragraph 45] We are also concerned that the Government is basing its assumptions

for the scope for reducing working-age caseload on the fact that there was growth of29% in total DLA expenditure between 2002-03 and 2010-11. It is important to bear in

mind that a substantial part of this growth arises from demographic change, including


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the increase in the number of people over state pension age who retain their DLA. PIP

will only apply to working-age claimants, where growth is closer to 16% after taking

account of demographic changes. We would welcome clarification from the

Government on how these statistics can be reconciled with the savings assumption, in

response to this Report.

The Department has acknowledged the role of demographics in the growth of the DLAcaseload in its statistical publications.5

The assumption of 20% expenditure savings from the working-age part of the DLAcaseload was set as a high level assumption in 2010, when the reform was first announced.Since then the Department has undertaken further design work and is currently consultingon its assessment criteria and the detailed policy that will underpin primary legislation.

More detailed and updated expenditure savings figures will be provided when benefit ratesare announced in due course and the design of Personal Independence Payment is moreadvanced.

As the evidence presented to the Committee madeclear, around one third of the caseload growth can be directly attributed to demographics.The remainder is driven by growth in receipt per head.

Media coverage

[Paragraph 53] The Government's view seems to be that the negative tone of press

coverage of benefit claimants is unsurprising since it merely reflects the public mood

about the integrity of the benefits system. However, the Government should not ignore

the fact that public opinion can also be positively influenced by the media and we

believe it should take the necessary steps to ensure that its own contribution to mediastories about benefits is accurate and contextualised.

[Paragraph 54] While we accept that the Government does not control the editorial

line taken by the media, we believe it should actively encourage accurate reporting of its

own statistics on benefits. Direct quotations from Ministers can give undue credence to

inaccurate or misleading reports. We recommend that DWP establishes internal

protocols to ensure that significant statistical releases are accompanied by a press

release setting out the context and providing background explanatory notes, together

with quotations from Ministers where appropriate.

The Department is absolutely committed to supporting disabled people to live full, activeand independent lives and whilst laws are in place to ensure equality, the Departmentrecognises the need to work together and do more to challenge and change negativeattitudes towards disabled people. That is why it is in the process of developing a newcross-government disability strategy to give renewed impetus to the Governmentscommitment to disability equality.

One of the key areas that this strategy will look at is changing attitudes and behaviour -promoting positive attitudes and behaviours towards disabled people to enable them to

5 http://statistics.dwp.gov.uk/asd/asd1/adhoc_analysis/2011/dla_growth_in_caseload.pdf


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participate in community life and wider society, tackling discrimination and harassmentwherever they occur.

The Department is also developing a case study approach to illustrate the contribution

disabled people make to society through, for example, work and volunteering. The aim isto provide a more coherent and consistent story about disability, by working closely withemployers and other stakeholders to provide positive images to counter negative reportsand help influence public perceptions in the long term.

Recent examples include features in two of the biggest selling national newspapers onAccess to Work with case studies of disabled people in mainstream employment, placed bythe Departments press office. In addition to this, the Minister for Disabled People writesregular features in two of the major disability magazines recent articles include subjectson Disability Hate Crime and reforms of Disability Living Allowance.

The Department has a robust process for releasing new statistics into the public domainwhich conform with the Code of Practice for Official Statistics. Each new set of statistics isaccompanied by a published ad hoc statistical note which is quality assured by a seniorstatistician. These notes set out background and context for the new information in animpartial manner. As there are a large number of DWP analytical and statisticalpublications every year, it would not be appropriate or proportionate to issue a pressrelease for every one. Following assessments by the UK Statistics Authority, the amount ofcommentary accompanying our National Statistics is being increased to help users better tounderstand and interpret the statistics.

Furthermore, benefit statistics are freely available for everyone to access on our website.6

[Paragraph 58] We look forward to the publication of the new UK Disability Strategy.

It provides an opportunity to address the apparent growth in negative perceptions

about disability. We recommend that it contains proposals to tackle negative reporting

of disability in the media and a Government strategy to get the message across that

disabled people can and do make a positive contribution to society, very often as

taxpayers.

Our press office operates a 24/7 service so there is always someone available to help explainthe statistics to journalists and help ensure accurate reporting. The Department is also inregular dialogue with journalists to correct inaccurate reporting.

The Government recognises that promoting positive attitudes and behaviours towardsdisabled people is vital to ensuring disabled people are able to participate more fully incommunity life and wider society. This is something the Government will seek to drivethrough a new cross-government disability strategy which we aim to publish in late springor early summer. In addition, on 14 March the Government launched Challenge it, reportit, stop it, a new action plan for tackling hate crime. This includes actions to challenge theattitudes and behaviours that drive hate crime against disabled people.

6 http://www.dwp.gov.uk/


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Communication and consultation

[Paragraph 63] The Chancellor of the Exchequer's announcement of the intention to

reform DLA made the Government's communications task a difficult one. This

difficult beginning was compounded by the poor initial consultation on the GreenPaper which was not only shorter than recommended by the Government's own Code

of Practice on Consultation but also took place over the Christmas period. The Bill was

published before the consultation period ended, and well before the responses could be

analysed. The Government's published response appeared not to reflect the full extent

of respondents' concerns, and the full responses were not published.

The Governments Code of Practice on Consultation recommends a minimum 12-weekconsultation period for public consultations, unless there are good reasons for a limitedconsultation period. While the Department fully aspires to the Government Code ofPractice on Consultation and recognises that a 12 week consultation would have been

preferable, it was felt that a 10 week consultation period on Disability Living Allowance(DLA) reform was adequate in this instance.7

The Department has committed to publishing a full set of responses to the DLA reformconsultation, including those from organisations and individuals, after taking steps toanonymise and redact any sections that may compromise personal data. The Departmentintends to begin publication within 6 months and to complete the process by the end of the

year.

The consultation itself was limited to generalprinciples of reform only and was preceded by extensive engagement with a wide range ofstakeholders and disabled people. The Department was clear from the outset that responseswould be used to inform secondary legislation on the detailed design of the benefit.

Since the Government published its response to the DLA reform consultation in April2011 it has continued to engage with disabled people and their representatives to ensurethat they have the opportunity to collaborate on the development of the detailed design ofthe new benefit. A 16 week informal consultation on the initial draft of the assessmentcriteria carried out over the summer of 2011 has been followed by a formal 15 weekconsultation on the second draft that started on 16 January and closed on 30 April. Sincethe Committees report was published, the Government has begun a further consultationon the detailed design of Personal Independence Payment. This will run for longer than thenormal 12 weeks and will close on 30 June.

[Paragraph 64] Since then, DWP has taken steps to involve disabled people in the

process for devising and implementing PIP and this has proved to be effective to some

extent. The Department has listened to many concerns: it dropped the proposals to end

payment of the DLA mobility component for care home residents after the Low Review

and to extend the three-month qualifying period under DLA to six months under PIP.

It is important that DWP now puts even more effort into engaging disabled people in

the introduction of PIP and that it clearly demonstrates the extent to which it has

responded to their legitimate concerns.

7 The consultation period ran from 6 December 2010 and closed on 18 February 2011.


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The Government welcomes the Committees recognition of the steps it has taken to involvedisabled people in developing Personal Independence Payment and the way it has listenedto and acted upon concerns. In addition to the work carried out prior to and during theconsultation on DLA reform, the Department has continued to engage extensively with

organisations that represent disabled people through its Implementation DevelopmentGroup since May 2011. This group has over 50 members that represent a broad range ofnational and local disability organisations. This work will continue throughout 2012 asdesign of the benefit and implementation arrangements are finalised. This includes testingclaimant notifications, such as assessment invitations or award notifications that will bebeing sent to claimants to ensure that they are clear and easy to understand.

The Department has contracted an independent contractor (IFF Research) to undertakeresearch with disabled people to help inform the design of Personal IndependencePayment and to ensure that products, such as claimant notifications, and processes work

effectively. 1,000 disabled people have been recruited to take part in regular focus groupsessions and interviews throughout the design of the new benefit. The Department hasundertaken this research in order to gather views from disabled people on how PersonalIndependence Payment should be designed. This has provided an opportunity to test

versions of the first part of the claims process and discuss how current DLA claimantsshould go through the reassessment process. This research and testing will continue asPersonal Independence Payment is developed in advance of its introduction in April 2013.

The Department is committed to working with a broader range of disabled peoples userled organisations and local disability organisations throughout 2012 and beyond. Work isprogressing on a number of fronts to involve them in delivery of the new benefit, with a

particular focus on how they can help ensure that the Department reaches those claimantswho may need additional help to find out about Personal Independence Payment and whomay need specific support through the new claims or reassessment process. TheDepartment will engage with these organisations to involve them in early implementationlessons learned from April 2013 and during initial reassessment activity from October2013. The intention is to involve them in ongoing and continuous activity for PersonalIndependence Payment including, for example, supporting and advising claimants, co-production of claimant materials and independent reviews.

This engagement at local and national level will ensure that the operational design,implementation and ongoing operation of Personal Independence Payment considers theinformed perspectives of disabled people and their representative organisations.

Payment of DLA mobility component to care home residents

[Paragraph 71] We welcome the Government's decision not to proceed with its plans

for withdrawal of the DLA mobility component from residents of publicly-funded care

homes. We congratulate all involved in Lord Low of Dalstons review, which established

a lack of evidence for the measure and a need for clear guidance to local authorities. We

recommend that the Government now issues clear guidance about funding mobility

needs and the role played by DLA and PIP mobility. We believe that this sequence of

events clearly demonstrates the need for the Government to conduct thoroughresearch, including detailed impact assessments, before the announcement of measures


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that could have a negative impact on disabled people. However, we accept that the

Government listened to the representations of those affected.

The Government welcomed the input of Lord Lows Review as part of the wider debate

around the provisions for mobility needs of those in residential care. Before making theannouncement not to remove the mobility component of Disability Living Allowance andPersonal Independence Payment, the Minister for Disabled People and officials met withdisabled people and their representatives to listen to their concerns and gather furtherevidence.

Officials from the Department of Health have met with the Low Review secretariat todiscuss the recommendations and have agreed to consider improvements to the guidanceprovided to local authorities.

Assessment of the impacts of the introduction of PIP

[Paragraph 75] We believe that the Government cannot fully assess the potential

knock-on impacts of DLA reform on other providers of services for disabled people.

There is evidence to suggest that DLA plays an important role in helping recipients to

manage their conditions, thereby reducing the need for other services. If a DLA

recipient is found ineligible for PIP, yet still needs support, we would not agree with the

Minister that there is already an adequate alternative package of support available to all

current working-age recipients of DLA who may be affected by these reforms.

[Paragraph 76] DLA is unique in providing a universal benefit specifically designed to

contribute to the extra costs of disability. If it is removed from some claimants who stillhave these extra costs, they are very likely to need to draw on services provided by other

public agencies. We recommend that the Government carry out more detailed

assessment of the wider impacts of DLA reform and consult further with local

authorities and the NHS on the implications for their provision of services for disabled

people, now that the updated impact assessment has been published.

The Government recognises the important role that Disability Living Allowance (DLA)plays in ensuring that claimants are able to live full, active and independent lives. TheDepartment has been working closely with other Government departments and theDevolved Administrations to identify impacts that reforms may have in a wider sense to

ensure disabled people continue to receive the support they need. Following theannouncement of reforms to DLA, the Department set up a Cross-Whitehall group toconsider issues arising from reforms as well as to provide a forum to oversee andcontribute to policy, stakeholder engagement and the approach to communications.

DLA is a non-means tested cash benefit which is designed to contribute to the extra costsof disability that claimants face and allow them to spend the money in a way that theychoose. The Department does not currently monitor what claimants spend the benefit onand there are no plans to do this in the future under Personal Independence Payment. TheDepartment will continue to work with the Department of Health and other Government

departments to ensure that disabled people continue to have access to relevant support.Reforms will help to ensure that those claimants who face the greatest barriers to living full,active and independent lives continue to receive the right levels of support.


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[Paragraph 93] DWP has described other organisations projections of the likely

impact of DLA reform as simply speculation. However, accurate analysis by

interested bodies has been extremely difficult and claims have been made devoid of any

factual basis in the absence of DWP impact assessments. Until very recently, the

information released by the Government included no estimate of the number of peoplelikely to be affected or any scenario modelling to indicate the likely impacts on different

groups.

[Paragraph 94] The fact that Government information has been released at a late stage,

and the consequent speculation by interested bodies, has also exacerbated public

concern about the likely impacts of the introduction of PIP and worked against the

Governments aim of reassuring disabled people that reform is intended to be a positive

step for them. It is important that the Government and interested bodies learn from

this. In future, major benefit reform proposals should be accompanied by detailed and

comprehensive analysis of the likely impacts as soon as practicable.The Government recognises the importance of providing analysis of impacts of reformsand that this should be made available as soon as practicable. It is important that theGovernment strikes the right balance between consulting on the detail, developing policycollaboratively on an iterative basis and providing accurate information on the impacts atan appropriate point.

The Department has published analysis at a number of stages throughout the policydevelopment process on the reform of DLA and will continue to do so as new informationbecomes available. It is not yet possible to present analysis on all aspects of the possible

impacts on disabled people because some decisions have yet to be made on theimplementation of Personal Independence Payment. It is important that when analysis isreported to the public that it is based on the most accurate information possible,thoroughly checked and quality assured. As the Committee is aware, the Department hasrecently published new information on the likely impacts on carers and those in receipt ofdisability premia as part of their income-related benefits.8

[Paragraph 95] We are unable to ascertain, from the latest figures released by DWP in

January, from which DLA rate combinations the projected PIP caseload reduction of

500,000 claimants will come and therefore which current DLA recipients are likely to

have their benefit withdrawn altogether. We recommend that, in its response to this

Report, DWP sets out further case studies to show how the introduction of PIP is likelyto affect current working-age recipients of each rate combination of DLA.

In January, the Department published breakdowns of the combinations of PersonalIndependence Payment claimants were estimated to be on in 2015/16, includinginformation on gender and age. As part of the consultation and policy developmentprocess the Department is continuing to refine these estimates. More details will beavailable when the rates of Personal Independence Payment are announced at the AutumnStatement later in the year.

8 http://www.dwp.gov.uk/policy/welfare-reform/legislation-and-key-documents/welfare-reform-bill-2011/impact-assessments-and-equality/


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The Department has carefully considered the Committees request to set out further casestudies. While it would be possible to produce additional case studies, the Department doesnot feel it would be helpful to provide case studies for each DLA rate combination alongthe lines that the Committee have requested. While case studies do provide a useful

illustration of how the assessment criteria will work in practice, they cannot berepresentative of how particular groups of individuals will fare under PersonalIndependence Payment. This is because the assessment will look at individualcircumstances and all disabled people are different. To show the likely effect of PersonalIndependence Payment on the current recipients of any particular DLA rate combinationwould require very significant volumes of case studies to be produced and would providean inaccurate illustration of how the introduction of Personal Independence Payment islikely to affect current working-age recipients of DLA.

Qualifying period

[Paragraph 102] We welcome the Government's decision to support a three-month

qualifying period for PIP rather than extend it to six months. However, there is

evidence of significant financial hardship caused during the current three-month DLA

qualifying period, particularly for those with sudden onset conditions such as the loss

of limbs after a car accident. We see no reason why claimants with sudden onset

conditions, which medical evidence can show to be likely to last at least 12 months,

should not receive support immediately. We recommend that DWP implements a

facility for early eligibility which could operate in the same way as that for terminal

illnesses.

The Government is grateful for the Committees support of its revised approach to therequired period condition. The principal aim of extending the qualifying period from threeto six months was to align the definition of long term disability with the Equality Act 2010.The Government did not expect this measure to provide any significant savings. As theCommittee will be aware, the required period condition is intended to bring a principledapproach to identifying, assessing and paying a valuable, cash benefit for long-term ratherthan short-term needs and when the financial costs become burdensome to all regardlessof income.

The Government has listened carefully to the arguments presented in support of those who

suffer sudden onset conditions such as a stroke or traumatic injury. Whilst the immediateeffects of such a sudden onset condition may be highly debilitating, the Departments viewis that it is for the National Health Service (NHS) to provide support for in-patient care tostabilise, treat and rehabilitate the individual whilst their condition remains acute. Wheretheir position is less acute, and treatment and rehabilitation can take place on an out-patient basis, a range of means-tested and non-means-tested support is in place to helppeople through some of the shorter-term burdens, both financial and practical. Supportprovided in these circumstances may include, but may not be limited to, statutory sick pay,healthcare travel costs, free prescriptions or aids and appliances provided by the NHS orthe Local Authority. Individuals may also be entitled to a range of social security benefitsand support depending on their circumstances and whether they are able to hold down a

job during this period, including Employment and Support Allowance.


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The few months following a sudden onset condition or injury, and the treatment orrehabilitation someone has had or is having, provide vital evidence on which to determinewhether someone will have long-term needs. This may not be clear in the more immediateterm following onset. It is important to note that during this same period the qualifying

period can also start to be satisfied; the qualifying period does not start from the date aclaim is made. This means that for anyone requiring in-patient treatment following asudden onset condition they will have begun, or may even have satisfied, the qualifyingperiod by the time they are able to return home.

The Government is therefore satisfied that the current arrangements for people withsudden onset conditions provide adequate support in the short-term before PersonalIndependence Payment may become payable. The Department has no plans to implementa facility for early entitlement to those with sudden onset conditions and will continue tomonitor these arrangements.

The draft PIP eligibility criteria

[Paragraph 128] We welcome the changes made to the first draft of the PIP assessment

criteria. We believe they demonstrate that the Government has listened to concerns

expressed by disabled people and their representatives. DWP deserves credit for the

way it has involved them in the "co-production" approach it has adopted to the

development of the PIP criteria.

[Paragraph 129] We fully support the Government's intention to ensure PIP is fairer,

more consistent and takes a more holistic, "social model" account of the impacts of

disability. One of the Government's declared aims for PIP is to improve on theassessment used for DLA. So far, mobility descriptors still concentrate heavily on

ability to move a fixed distance and do not include barriers to accessing public

transport, or the difficulties of some locations for individuals where routes to shops,

public transport etc are particularly hilly or stepped. The PIP assessment criteria, as

drafted, tend towards the medical model of disability. We recommend that, as part of

the consultation with disability representative organisations on the second draft of the

criteria now under way, the Government considers how activity descriptors could take

account of the impact of such factors as housing, access to public transport and hilly

locations.

[Paragraph 130] We recommend that the Government undertakes a further trial of the

assessment criteria once they have been revised following the consultation and that the

results of the trial are published before the criteria are laid down in Regulations under

the Welfare Reform Bill.

The Department welcomes the Committees recognition of the process it has undertakento ensure that disabled people have been involved in the development of the assessmentand of the significant changes made to the second draft of the assessment criteria. Workingwith disabled people and their representatives has added real value to the development ofthe assessment and wider benefit proposals and will continue to do so.

The Department has carefully considered whether the assessment criteria, including themobility element, could be modified to focus more on social and environmental factors


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such as housing, access to transport and location. However, as set out in the explanatorynote supporting the second draft of the assessment criteria, published in November 2011, itbelieves that doing so would create a more subjective and therefore inconsistentassessment.9

As noted by the Committee, the Department has undertaken significant consultation, co-production and testing as it has developed the assessment criteria. Should there be a needto carry out further testing as a result of any changes made following the consultation, the

Department will ensure that this is done in full. However, it is not anticipated that furthertesting will be necessary due to the wide range of information gathered during the initialtesting activity, where around 900 sample assessments were carried out in Great Britain.The information gained from the initial testing should allow the Department to re-modelthe impact of any amendments made to the assessment criteria and allow us to testwhether the assessment is working effectively.

It would also create an assessment that delivers varied outcomes depending

on location, which would be inconsistent with the universal nature of a national benefit.The Department continues to believe that the approach of focusing on assessing ability tocarry out key everyday activities is the right one and will lead to effective prioritisation inthe benefit based on individual barriers and need. The Department will, however, considerthe wording of all descriptors in light of the ongoing consultation on the assessment andmake any changes that are appropriate.

PIP eligibility assessment

[Paragraph 139] We were encouraged by the language used by the Minister in

describing the PIP assessment as a conversation between claimant and assessor. It is

vital that the PIP assessment does not take the same mechanistic approach, based on aninflexible computer system, originally adopted for the WCA in 2008. We believe that

healthcare professionals administering the assessments should take an empathetic

approach that allows claimants to describe the impacts of their disabilities or health

conditions on their everyday lives. We recommend that DWP sets out this principle in

the published guidance for healthcare professionals on the assessment process. This

approach will have implications for the time allowed for face-to-face assessments,

which in turn must be reflected in the contract arrangements with the third party

providers of the assessments. We would seek assurances from the Government that this

will be taken into account in the contracting process.

The Department is absolutely committed to ensuring that the assessment and claimsprocesses for Personal Independence Payment are empathetic and supportive of claimants,and give them the opportunity to tell their story and set out the impact their healthconditions and disabilities have on their daily lives. It has learnt from the experience ofdelivering the Work Capability Assessment and from the recommendations of theHarrington reviews and is building these into the design of the new benefit.

The face-to-face consultation, as part of the Personal Independence Payment assessment, isfully intended to be a two-way conversation between the claimant and the healthprofessional, allowing a detailed exploration of how the claimants health condition or

disabilities affect their day-to-day lives. The discussion at the consultations should not be

9 http://www.dwp.gov.uk/docs/pip-second-draft-assessment-criteria-note.pdf


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mechanistic and should be tailored to individuals. This is being clearly expressed topotential providers as part of the tendering for Personal Independence Paymentassessment contracts and will be set out in detail in the supporting guidance for providersand their staff. The guidance will stress the importance of positive interaction throughout

all aspects of the assessment. The contract will require assessors to have excellentinterpersonal and communication skills, including the ability to interact with peoplesensitively and appropriately.

The Department is not placing targets on the time required for face-to-face consultationsand is making clear to potential providers that consultations will need to be as long asnecessary to reach evidence-based conclusions on individual cases.

[Paragraph 152] We agree with the Government that more reassessment of claims is

necessary than has been the case with DLA. However, too frequent reassessment risks

wasting public money and causing stress and anxiety to disabled people. The personal

interview should play a part in assessing many PIP claimants. Face-to-face assessmentshould include the option for home visits where this is agreed to be appropriate. These

steps may help to avoid cases going to appeal, with the accompanying costs and delays

in resolving claims.

[Paragraph 153] We consider that there is a case for automatic entitlement for some

claims. The WCA is being carried out annually in a number of cases, which can cause

considerable stress for some people. The case for annual assessment is less compelling

for PIP than for WCA which is judging people's ability to re-enter employment. We

recommend that there should be flexibility in the frequency of PIP reassessment and

that the Government monitors the impact of this.

The Governments intention has always been that entitlement to Personal IndependencePayment will be based on the degree to which individuals are able to participate in society,not on their health condition or impairment. Health conditions and impairments,including degenerative ones, can affect people in a range of different ways. For this reason,decisions on award durations will be based on individual circumstances, followingappropriate consideration of all the evidence that has been provided.

Decisions on award durations will be taken by DWP Decision Makers following advicefrom trained health professionals. In some cases awards may be fixed for a short period of

time such as one or two years. In others, longer term awards of five or 10 years may bemore appropriate. It is anticipated that ongoing awards would be used in cases wherechanges in need, either positive or negative, are unlikely. This approach will help to ensurethat claimants are not required to go through unnecessary or inappropriate assessments.

It is important to ensure that claimants continue to receive the correct level of award andthat Personal Independence Payment reflects changes in our society and advances inmedicine or support, including treatments. There is a duty to both claimants and thetaxpayer to ensure awards stay correct throughout. All Personal Independence Paymentawards will therefore be reviewed at appropriate intervals.

The frequency and format of reviews will vary depending on the individuals circumstancesand the likelihood of the impact of their health condition or impairment changing. Thesereviews could involve gathering evidence from various sources, including self-report forms,


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information from relevant professionals who support the individual and face-to-face ortelephone discussions. This will depend on the individual circumstances. The Governmentis committed to co-producing guidance with appropriate experts on the duration of anaward of Personal Independence Payment, including the review frequency for awards.

The Department welcomes the Committees endorsement that a face-to-face consultationshould play a part in the assessment process. It considers that for most claimants these willbe essential for gathering sufficient information about the impact of the claimants healthconditions or disabilities on their life and how this will relate to their entitlement to thebenefit. However, the Department intends to deliver the Personal Independence Paymentassessment in a sensible and proportionate way. In some cases, such as an individualclaiming under the terminal illness provisions, or where the Department has gatheredenough evidence from the claimant and professionals involved in supporting them, a face-to-face consultation may not be necessary.

The Department is not mandating where consultations should be carried out and it will befor potential Personal Independence Payment providers to develop proposals around thisas part of their bids. The Department has asked providers to be innovative in theirapproaches and have set out clear requirements around accessibility of any consultationlocations. The Department has also made clear that providers strategies must includeprovision for home visits where claimants are not able to attend other locations on thegrounds of their health condition or disability. The final approach has not yet been decidedand will depend in a large part on the proposals made by potential providers of PersonalIndependence Payment assessments.

Face-to-face assessments

[Paragraph 154] Once the initial assessments for PIP have been completed in the first

geographical area, we recommend that the Government looks again at the value of face-

to-face assessments for PIP claims where the condition is severe and unlikely to change.

The Government should reconsider whether, in many cases, reliance on medical

evidence gathered over a period of time and based on detailed knowledge of the

claimant would have more validity than the snapshot of a claimant's condition and its

impacts on their ability to participate in society which can be gained in a relatively

short interview with a healthcare professional who is not an expert in their condition.

As stated earlier in this response, the Department believes that face-to-face consultationswith a trained health professional should be a key part of the Personal IndependencePayment assessment process for most people, providing an invaluable means of exploringindividuals circumstances and how health conditions and disabilities affect their everydaylives. The consultations are not intended to be snapshots and when carrying outassessments, assessors will consider the impact of impairments over a year-long period.

Consultations are also only part of the evidence gathering process. Full consideration willalso be given to information provided by claimants themselves and from professionals,including specialists, who have been involved in supporting them. Claimants will be

encouraged to provide evidence they think helpful and to tell the Department whichprofessionals are best placed to offer advice. This will ensure that assessments are fully


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evidence based. In some cases, where sufficient evidence already exists on which to carryout the assessment, face-to-face consultations will not be necessary.

The Department will require that health professionals carrying out Personal Independence

Payment assessments meet strict criteria around professional qualifications, experience andcompetence. Each assessor will need to be individually approved by the Department andany who do not meet these standards will not be.

New claims to Personal Independence Payment will begin to be accepted at Bootle BenefitCentre from April 2013 in advance of full national roll out once the Department is satisfiedthat processes are working as intended. It is anticipated that this controlled start willgenerate around 5000 new claims per month which will be monitored and evaluated in a

variety of ways to ensure the Department can identify and resolve problems in advance ofnational roll out in June 2013. The evaluation will include the collection of feedback fromclaimants, scrutiny of the Independent Assessor performance and monitoring of the new

IT system being used to support the Personal Independence Payment process. Lessons willbe learned from the controlled start evaluation and will provide a platform for continuousimprovement for both claimants and operators when necessary.

The Department will ensure that throughout the initial and ongoing implementation ofPersonal Independence Payment there will be continuous and thorough monitoring of allaspects of the claims process, including the assessment. Changes will be made wherenecessary. The operation of the Personal Independence Payment assessment will also besubject to two independent reviews, reporting to Parliament within two and four years ofimplementation.

Contracting

[Paragraph 159] We recommend that DWP contracts with private companies for

delivery of the PIP assessment directly link the payment of public funds to the

production of reliable assessment reports that are right first time. We welcome the

framework approach which has now been adopted for benefit assessment contracts and

request further details about how it will operate, in response to this Report.

The Department will ensure that the need to produce high quality and consistentassessment outcomes is reflected in the ongoing work to develop the funding model and

key performance indicators which will be used to monitor quality and performance and topay for services from the suppliers of the Personal Independence Payment assessment.

[Paragraph 160] Experience with the Work Capability Assessment has demonstrated

the need for large Government contracts with private suppliers which involve sensitive

health and disability assessments to be properly monitored. We therefore request

further information on how the Government plans to oversee and regulate the

contracts for the PIP assessments. We would also like to see the contractors

communication with individuals who are deaf-blind reflecting their communication

barriers.

The Department fully recognises the need to ensure that the delivery of assessments bythird-party suppliers are robustly monitored, that appropriate action is taken to improveperformance and claimant experience where needed and that best practice is shared. The


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detailed proposals for ensuring the quality and consistency of assessments are still beingdeveloped. They are likely to include the quantitative analysis of management informationprovided by providers and qualitative audit of assessment reports. More information willbe provided to the Committee when it is available.

As the tendering process for the Personal Independence Payment assessment has not yetbeen finalised, the Department is not able to share specific details on contractorcommunications. However, the contractor must provide, on request, materials inalternative formats to meet the needs of claimants with a wide range of disabilities andhealth conditions in line with the Disability and Equality Act 2010. This must include, butis not limited to, the provision of large font material, Braille or audio format for visuallyimpaired claimants.

Implementation of PIP

[Paragraph 165] The high number and cost of appeals in the original WCA process

highlights the risk in introducing a new benefit assessment without full consultation

and thorough testing. The challenge of accurately assessing DLA/PIP claims is arguably

greater than incapacity benefit claims. The WCA simply assesses capacity to work. The

PIP assessment will need to provide an accurate indication of the impact of complex

conditions and combinations of conditions on participation in society in a variety of

life contexts. It is therefore essential that DWP allows itself sufficient time to get the

assessment right and to be able to convince disabled people and their representatives

that this is the case. Implementation timescales should not be driven by artificial

deadlines set by HM Treasury before the details of the reform were known.

The Department has developed the assessment criteria in collaboration with a group ofindependent specialists in disability, health and social care, including representatives ofdisabled people. As referred to earlier, significant consultation, co-production and testinghas already been carried out and this is ongoing, with the current consultation on thesecond draft assessment criteria running until April 30. The Department will carefullyconsider all of the responses received, alongside this report, before finalising the criteriaand laying draft regulations before Parliament. Further testing may be carried out should itbe needed. The Department is therefore confident that the assessment criteria will beworking effectively prior to introduction in 2013.

Meanwhile, the procurement processes to identify suppliers to deliver the PersonalIndependence Payment assessment has begun, with providers expected to be in place bythe end of July 2012. The Department is again confident that there is sufficient time forproviders to prepare for the implementation of the new benefit.

The planning to ensure that the Department and in particular the Decision Makers, areready and fully trained for Personal Independence Payment has already started. Inaddition, the implementation planning for the controlled start incorporates activities togather assurance and evaluation on key aspects of the claimant journey and operationalprocesses. This will allow the Department to refine and improve products to ensure we are

getting the end to end delivery of Personal Independence Payment right.


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[Paragraph 166] We welcome the Minister's confirmation that DWP does not intend to

press ahead with a big bang approach to implementation of PIP and his commitment

to begin with new claims only from April 2013. We note that the Government plans

initially to introduce new PIP claims in one geographical area. The area should be

selected on the basis of carefully defined criteria. The period prior to national roll-outshould be used to prepare a methodology for monitoring the early lessons to emerge

from implementation and to ensure that recommendations for changes can be made

quickly, in consultation with interested bodies.

[Paragraph 167] We welcome the Governments decision to bring forward the first

independent review of the PIP assessment to within two years of the assessment

Regulations coming into force and to have a second independent review within four

years of that date.

Bootle Benefit Centre will administer the first new claims from spring 2013 from areas

including Merseyside, North West England, Cumbria, Cheshire and North East England.People in these locations will be the first to claim the new benefit. The primary reason forselecting the Bootle Benefit Centre is that it handles DLA new claims in volumes that willprovide a robust test of Personal Independence Payment processes and new computersystems.

During this initial period, new claimants in all other parts of the country will continue toclaim DLA as now. The controlled start in Bootle Benefit Centre allows the Department togather and evaluate initial data. Some claims will continue to be closely monitoredthroughout the full Personal Independence Payment process. Findings will be evaluated

and the Department will introduce early process improvements where necessary.

Reassessment of existing claims

[Paragraph 168] As has been shown with the WCA/ESA process, reassessment of

existing claims is even more complex and challenging than dealing with new claims. We

therefore believe that reassessment of existing DLA claimants should only proceed once

the Department is confident that the assessment is accurate.

[Paragraph 170] The phasing in of the reassessment for Personal Independence

Payment should take account of the timing for individuals of the Work Capability

Assessment for Employment and Support Allowance. There is likely to be a significantoverlap between the two groups of claimants and many disabled people may already

have had one or more WCAs by the time the PIP reassessment is introduced. The

cumulative impact of frequent reassessment on a vulnerable group of people should not

be underestimated.

The Government acknowledges the additional challenges of reassessing existing DisabilityLiving Allowance (DLA) claimants for Personal Independence Payment. Because of this,the reassessment of these claimants will only start once the processes, including theassessment, have been shown to be working as intended for new claims. Reassessment is

due to start in autumn 2013 for those claimants who report a change in their condition orwhose DLA award is due for renewal. This will be achieved through managing lowvolumes of these cases at around 10,000 per month for the first three months of the


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reassessment period, again checking that processes are working as intended, beforeincreasing numbers early in 2014.

The Government is aware of the particular challenges for claimants who may experience

multiple assessments for different benefits over a short timeframe. Detailed processes arestill being developed but, where possible, the Department will seek to ensure that claimantsundergoing reassessment for Incapacity Benefit and DLA are not called for multiple face-to-face assessments in close proximity. To support this, the Department is exploringoptions for sharing information across the benefits to reduce the need for more than oneface-to-face assessment.

Motability

[Paragraph 172] We recommend that the Government clarifies, in response to this

Report, which rate of PIP mobility component will confer eligibility for the Motability

Scheme. It should also clarify whether a three-year lease for a Motability car, signed

when the claimant was a recipient of higher rate DLA mobility component, will be

terminated if that person is found ineligible for the Motability Scheme under PIP. We

believe it is important for the Government to provide certainty on these issues before

reassessment of the working-age DLA caseload commences.

Motability is an independent charity and is wholly responsible for the administration of thescheme. Currently, eligibility to the Motability scheme is dependent upon a person being inreceipt of the higher rate mobility component of Disability Living Allowance (DLA). If ascheme customer no longer meets this criteria then Motability will seek to withdraw the

vehicle in accordance with their rules. Following conversations with Motability, theDepartment can confirm that the enhanced rate of the mobility component of PersonalIndependence Payment will act as the gateway to the Motability scheme in the future.

All claimants who have been selected for reassessment under either natural or managedreassessment will be told that their DLA will be ending and that they can instead make aclaim to Personal Independence Payment. Should a person not satisfy the eligibilitycriteria for the enhanced rate of the mobility component in Personal IndependencePayment, then eligibility to the Motability scheme will cease and Motability will, as now,terminate the lease regardless of duration. Motability advise that customers in this situationwill not be liable for any remaining lease payments after the allowance ceases to bepaid, and subject to the vehicle being recovered promptly and in reasonable condition, thecustomer would not be subject to any penalty payments. Any advance payment made toMotability would be returned on a pro-rata basis.

The Department is continuing to work with Motability to ensure they are well placed tomanage any changes as a result of the introduction of Personal Independence Payment.This includes the way in which these changes are communicated to their customers.

Child and young adult recipients of DLA

[Paragraph 176] We welcome the Government's decision not to include childrecipients under 16 years of age in the current DLA reforms. We believe that DLA for

children should not be considered until the reassessment of working-age claimants has


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been completed and fully assessed. For clarity, we recommend that the Government

give a commitment that it will conduct a full and separate consultation on any future

changes to DLA relating to children.

The Government has made clear through its response to the Disability Living Allowance(DLA) reform consultation and during the passage of the Welfare Reform Act that it willnot extend Personal Independence Payment eligibility to children when it is introduced inApril 2013. The Governments response to the DLA reform consultation set out itsintention that children below the age of 16 will still be able to claim DLA. The Governmentrecognises that childrens requirements are different to adults, and has committed toconsulting formally before extending Personal Independence Payment to children.

[Paragraph 177] We welcome the work DWP is undertaking on the specific needs of

young disabled people aged 16 to 25. We recommend that this cohort should be the last

to be migrated to the new benefit. We also believe there is a strong case for 16 to 18

year-olds to be treated as a distinct group from the rest of the working agepopulation. One option which should be explored is for the reassessment at the time of

the migration to PIP to take place in, and with the assistance of, the young persons

school or college.

The Department is continuing to explore the specific needs of young people and how theyshould be supported, both within their claim process and afterwards. To help enable this ithas set up and met with a sub-group of the Implementation Development Group called thePersonal Independence Payment Young Persons Panel. This group includes a number ofcharities and organisations with an interest in young people. The Department has held

one-to-one interviews with young people and is also working with focus groups as part ofthe approach to designing processes based on young peoples needs. The Department hasinformally consulted on the transition for young people and developed the processcollaboratively. The Department will test products such as letters with them to ensure theyare fit for their purposes.

The Department also recognises that as young people transition to adulthood they will allhave specific aspirations about what they want to achieve, such as remaining in full timeeducation at school or college, taking up training or entering employment. It will be aprinciple in Personal Independence Payment that a young person will be invited to make aclaim in their own right as soon as they reach their 16th birthday, unless they are

determined as being incapable of managing their own affairs due to their disability andtherefore requiring another adult to be appointed to act for them. This will help enablethem to achieve the aspirations as they move to adulthood and make decisions about otheraspects of their lives.

Every DLA claimant aged between 16 to 64 on 8 April 2013 will be entitled to claimPersonal Independence Payment and will be assessed for that benefit when they do so. Thebasis of determining who will be invited will be random computer-generated selection andevenly spread geographically. While there is provision for certain groups to be held untillast in the reassessment window, for example those in receipt of the Special Rules for the

Terminally Ill entitlement, young people have not been identified as needing such ring-fencing. This is because age 16 is seen as a natural point in which a child transitions to


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adult rules. So long as the young person meets the eligibility criteria they will have no gapsin payment and continue to benefit from passporting arrangements.

The assessment criteria have been designed for the needs of people from age 16 upwards.

The Department recognises that young people with disabilities are encouraged to regardtheir disability in a positive way. The face-to-face consultation will support this. As will bethe case for people of all ages, young people who require support will be able to bringsomeone with them to the face-to-face consultation to help them express their needs andthe assessors will be trained to deal with younger adults.

We are exploring a range of options for how the Department delivers PersonalIndependence Payment, including the location of assessments. Personal IndependencePayment consultations must be carried out in an appropriate venue, taking into accountthe needs of the claimant, the health professional and the security requirements. Theoptions for this will be fully explored during the procurement process for the Assessment

Provider, and will take into account the needs of young people. Amongst these are securityand confidentiality requirements.

The introduction of Personal Independence Payment will ensure that the Government cancontinue to support those people who face the greatest challenges to living an independentlife, whilst ensuring that the benefit continues to remain affordable in the future. TheGovernment welcomes the Committees recognition that DLA needs to be reformed butrecognises that there is further work to do before Personal Independence Payment isintroduced in April 2013. The consultation on the draft assessment criteria has onlyrecently closed and the consultation on the detailed design of the benefit is ongoing and the

Department will continue to engage with stakeholders as Personal Independence Paymentis developed. This work will not stop in April 2013. The controlled start will providevaluable information and an opportunity to identify and resolve problems in advance of afull national roll-out. The operation of the Personal Independence Payment assessmentwill also be subject to two independent reviews, reporting to Parliament within two andfour years of implementation.

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