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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Promoted by Janus Henderson

Europe: as the politics subside

How long can a resurgence of investor interest in Europe last?

Might Europe be the place to be?

I think European equities tick a lot of the right boxes right now. Economies are recovering – indeed the first quarter of 2017 saw Europe once more grow faster than the US, having outpaced the world’s largest economy in 2016. Valuations are not excessive, either relative to the region’s history or the US equity market. Like almost anything, I believe European equities also look compelling relative to bonds. The final part of the jigsaw puzzle might have been earnings growth, but here too Europe is, at last, getting close to achieving a gold star.

Most of this has been known for quite a few months now and is part of the explanation for the better performance of Europe year to date. Even the euro has strengthened against the US dollar, from about $1.05 at the start of 2017 to $1.12 at the time of writing. Politics looks more settled, after the surprises of the Brexit vote last year in the UK and the election of Donald Trump in the US Presidential election. Perhaps a comment I made at the beginning of 2017, that “by the end of 2017 the UK and the US might look to have been the exceptions” when it comes to successful populist votes, seems more prescient.

Now that the political backdrop is perhaps more settled, with the UK’s potentially tragic Brexit decision an exception, how long can a resurgence of interest in Europe last? One threat is the gradual move towards ‘tapering’ by the European Central Bank (ECB) of its unprecedented quantitative easing program, and the support this provides economies by injecting cash to drive down the cost of borrowing and increase consumer and business spending. But it is already clear that this will be a very slow process. The economic recovery in Europe remains quite slow and inflation, outside the UK, is well below the ECB’s target of ‘below or close to’ 2%. At the same time, the damaging effect of negative interest rates needs to be avoided.

 

What could derail this market?

The one exception to what looks to be a relatively rosy scenario, in my view, remains the UK. The Brexit ball is rolling onwards, following the invocation of the now infamous Article 50, but the calling of a General Election was another distraction. The UK is still no closer to knowing what sort of Brexit is desirable, or more likely, economically feasible. Once the reality of debt, demographics and a weak currency become clear, I suspect that the UK market will continue to struggle against other European peers.

Elsewhere in Europe, economies look well set, and I suspect that more capital spending and investment are likely to be incentivised with tax cuts in Europe, again outside the UK. In this scenario, those capital investment-related names such as Siemens, Legrand and Atlas Copco should continue to do well. Luxury names, and auto makers, many of which have rallied hard so far in 2017, are likely to struggle due to subdued consumer demand. Financials have also seen mixed performance so far, with insurance underperforming banks. This seems an anomaly given the paramount importance of long-term savings to cater for retirement.

It would be entirely healthy for European markets to drift through what will hopefully be a quiet summer, without shocks such as Brexit to contend with. I think all seems well set though for European markets to trade higher than current levels by the end of 2017.

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