Disability cuts: the big picture is terrifying

Individual benefit changes seem minor, says the head of Scope. But taken together, they present a worrying vision of life for disabled people in Britain.

Disability is set to explode into one of the political issues of 2013. It’s just a case of joining the dots.

This week alone has seen six parliamentary events in four days, each with disability at its heart. It kicked off with the vote on the Benefits Uprating Bill, which, contrary to the Government’s line, doesn’t protect disabled people

Also on Monday, the Minister for Disabled People, Esther McVey, was grilled on changes to Disability Living Allowance (DLA) by the Work and Pensions Select Committee. DLA was then the subject of a Westminster Hall debate on Tuesday, while Lord Freud was put on the spot on the issue in the Lords on Thursday.

This week Lords also raised questions on social care, which we now know is very much a disability issue. While on Wednesday another Westminster Hall debate tackled disability, this time housing benefits and disabled people. 

Amid the hurly-burly of politics, each debate, meeting or question can fly under the radar. But take a step back and they reveal a bigger story than the individual impact of one or other change. Disabled people rely on a house of cards of support and it’s about to come tumbling down. 

Here’s a taste of what it’s like to be disabled in 2013.

If you need help with basics such as getting up, getting dressed, getting fed and getting out, in theory you are entitled to support from your council. But there’s a £1.2bn black hole in funding. As a result 40 per cent of disabled people say their social care doesn’t meet these needs – and the Government’s plans for social care reform, due to be published in spring, will see 100,000 people stop being eligible. 

Once you’ve got help to get up and out, you have to contend with the fact that life costs an awful lot more if you’re disabled. Disability Living Allowance – administered nationally and non-means tested – is designed to address this. It might pay for a taxi to work where there is no accessible transport. The Government is turning DLA into Personal Independence Payment, bringing in a new assessment from April. Worryingly for disabled people, before a single person has been assessed the Government is expecting more than half a million people to lose the payment.

Then if you are disabled and also happen to be one of the country’s 2.49m people out of work, you are entitled to some basic income support and help to find a job. Before you can access either you have to go through the Work Capability Assessment. Given the high levels of successful appeals, and the horror stories of people inappropriately found fit to work, disabled people are very anxious about taking this test.

If you do end up on the right level of support, you can look forward to below-inflation increases (according to Labour 3.4m disabled households will be worse off) and possibly a place on the Work Programme, which has so far struggled to help disabled people find work.

Much like this week’s debates, questions and committees, each of these moves can feel niche, technical, even justifiable on its own. But it’s only when you look at them together that you get a feeling for what it’s like to be disabled right now.

It’s time we started looking at the big picture. Cuts to DLA can’t be discussed without talking about the future of social care. Indeed, I spoke to a visually impaired man from the Midlands whose council tried to justify rationing his social care by telling him to top it up with DLA.

The ministers say: don’t be scared. The Government says it has to save money. But this goes beyond saving money. This is about the kind of society we want to live in. This is Britain in 2013. This is about drawing a line in the sand.

Do we want to live in a country where we shut disabled people away? Do we want to live in one where a disabled person is asked if they really need to have a wash every day? 

Or do we want to live in one in which we are willing to invest in making sure disabled people can get involved in everyday life?

I know what I want.

But what about politicians?  It’s hard to say. I’m waiting for someone – of either party – to come out and say ‘Some people need benefits. It doesn’t make them a scrounger, it doesn’t make them workshy and it doesn’t make them feckless.’

Instead we are fed ‘strivers not skivers’ or ‘training not claiming’. It is time both parties stopped benefits bashing. We spend more on disability benefits than US, France, Italy, Germany and Spain. We should be proud of that. Benefits mean disabled people can do things in day-to-day life that everyone else takes for granted.

Ultimately politicians think they are on safe ground with this one. But here’s one last stat: according to the British Social Attitudes survey, 84 per cent of people would like the state to support them if they became disabled. The public know what kind of society they want to live in too.

Richard Hawkes is chief executive of the disability charity Scope

An amputee learns to walk. Photo: Getty

Richard Hawkes is chief executive of the disability charity Scope.

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/