Clause 3
Welfare Reform Bill
6:45 pm
Jim Murphy (Minister of State (Work), Department for Work and Pensions; East Renfrewshire, Labour)
The amendment—as we heard in the reasonable explanation by the hon. Member for Inverness, Nairn, Badenoch and Strathspey and the informed comments of the hon. Member for Daventry—seeks to create a power to disregard some payments that would otherwise be deducted from the contributory allowance by regulations under clause 3(1)(c). It might help the Committee if I explain how the Government intend to apply this provision and the type of payments we intend to apply it to.
I hope that the hon. Gentlemen have had the opportunity to read the note on page 13 of the draft regulations and supporting material booklet to show that our approach is not changing. The best example of that is one mentioned by the hon. Member for Inverness, Nairn, Badenoch and Strathspey in respect of the councillor’s allowance. Currently the rules for incapacity benefit recognise that an entitlement should not be lost just because someone carries out activities as a local councillor. The rules also recognise that there is a balance to be struck between allowing a person to take an active part in representing their community and protecting the public purse. That is why, as he fairly said, any councillors’ allowances that exceed £86 per week are deducted from a person’s incapacity benefit.
Those amounts do not include expenses reasonably incurred in carrying out their functions as councillors. Our intention is that the contributory ESA should apply those same rules to councillors and their allowances. We will take the same approach across, including the disregard applied to reasonable expenses. I hope that that reassures the hon. Gentlemen. We would do this through regulations under subsection (1)(c). The power in that provision refers to:
“payments of a prescribed description.”
That means that regulations could, for example, state that it is payments after deduction of expenses that are prescribed for the purposes of the deduction. We do not—and this is something that we can consider and reflect on in Parliament more generally—have any plans at this moment, as a matter of policy, to extend the deductions to anyone other than councillors. However, it is important to have the power contained in this clause which would enable that to take place, if that became the Government’s policy or any Government’s policy in the future.
Danny Alexanderrose—
Mr. Boswellrose—