Clause 12
Welfare Reform Bill
6:15 pm
Paul Rowen (Rochdale, Liberal Democrat)
I beg to move amendment 56, in clause 12, page 16, line 43, leave out subsection (b).
The amendment would remove the adult dependency increase for carer’s allowance. The proposal in the Bill will allow the removal of adult dependency increases for the state pension from 2010. Existing claimants will continue to receive the adult dependency increase, but that will be phased out from 2010 to 2020. What effect will that have on those affected by the change? The impact assessment says that some carer’s allowance customers will receive £30.20 per week less in benefit income than they would under existing rules. That is £1,570 per year for 17,400 people currently receiving adult dependency increases. About half of the new claimants would also receive income support or pension credit. The Government say that carers who lose their adult dependency increases in 2020 would potentially see a reduction in their income if they were not receiving IS or pension credit. However, the Government say that they are committed to ensuring that future support will be tailored to meet the needs of individuals.
I know that the Minister may think that he is getting fed up of having to give assurances. When I dealt with a statutory instrument a few weeks ago, I learned that an assurance was given by the Minister during the last welfare reform Bill that those on contributory ESA schemes would not lose out. That ESA scheme was introduced last October, no changes have been made, and those people now have a reduced income. So I believe that it is a fair question to ask: given that there will be a loss of income and that 17,400 people are affected, the Minister should place it on the record, and hopefully act on it and ensure that these people do not lose out.
Mr. McNultyrose—