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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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.