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Social Security (Miscellaneous Amendments) (No. 4) Regulations 2008

My Lords, I have given the current figures to the noble Lord. As always, they are updated in the Pre-Budget Report and Budget Statements and doubtless he will have a chance to raise those issues again at that time. In disagreeing with the change proposed in the regulations, the noble Baroness, Lady Thomas, made comments on the evidence to support the policy and the fact that regulations were laid during the Recess. Let me first address the issues raised on timing and consultation, and then deal with the change itself. I stress that the Government have been open and clear about the changes and given plenty of notice. The changes were announced by the then Minister for Pension Reform on 5 December last year as part of the annual uprating Statement. He made it very clear that the reduction in the backdating period for pension credit, housing benefit and council tax benefit from 12 months to three months would be introduced from October 2008. An equality impact assessment was also carried out and published by the Department for Work and Pensions in April. This provided evidence on both the rationale for and the impact of the changes in backdating. As noble Lords will be aware, the Social Security Advisory Committee decided to consult on the regulations, and it reported back to the Secretary of State on 14 July. The Government’s response to its report was laid alongside the regulations on 15 September to enable the regulations to come into force on 6 October, as originally announced. The timing therefore reflected the need to take account of and respond to consultation, but there was plenty of time for discussion and debate following the announcement in December last year. I reject the assertion that the regulations were sneaked in under the radar. As the noble Lord, Lord Low, and other noble Lords have said, consultation is an important part of any change, and one that we think about carefully. We held informal discussions with Age Concern and Help the Aged. Although they had reservations about the backdating changes, they both acknowledge the benefits that the wider package will bring. We also consulted local authority associations on the changes to housing benefit and council tax benefit backdating, and listened to their concerns and those of other stakeholders, which were expressed as part of the consultation exercise conducted by the Social Security Advisory Committee. These discussions focused on concerns about working-age customers and the potential adverse impact on certain vulnerable groups. Although we believe that the maximum backdating period for working-age customers should also be three months, we have decided to introduce this change in stages, starting with a period of six months. The rationale for this revision was made clear in the Government’s response, laid alongside the regulations, which also announced that we will review these revised arrangements for working-age customers at the end of 2009—a point pressed on us by the noble Earl, Lord Listowel, and the noble Lord, Lord Kirkwood. The Government did not make changes to the backdating rules lightly; they were agreed as part of a wider package of measures aimed at improving the benefit process and reducing intrusion for pensioners. As such, we cannot consider them in isolation. The changes to backdating rules will reduce the need for customers to provide evidence and documentation for historical circumstances, including any changes over that period. They will also reduce the burden on operational staff when establishing the likely entitlement to benefit for a past period, and will help to simplify the decision-making process. The evidence makes it clear that the changes will not affect existing customers. Indeed, no customer need lose out if they claim as soon as they think they may be entitled to. We do not want people delaying making a claim and missing out on benefits to which they are entitled. The overall package of measures will make the claims process for pensioners easier. The Government are also keen to foster a greater sense of responsibility among customers for their financial affairs. An unintended consequence of lengthy backdating periods is that they can increase the likelihood that people, particularly in the most vulnerable groups, become desensitised to their situation and avoid taking action to tackle their debts. It is therefore important that they do not delay making their claims for housing benefit and council tax benefit, regardless of the length of any backdating period, particularly when rent arrears have started to build up.