Legislation and Rights

Benefits

By Ida Petretta

Welfare Reform Bill 2011 –What will this mean for Disability-Living Allowance?

The Welfare Reform Bill (2011) will be introducing radical reforms (starting from 2013) to means-tested benefits and replacing these with a ‘Universal Credit’. The current Disability-Living Allowance will be replaced by the Personal Independence Payment.

What is the Personal Independence Payment?

The Personal Independence Payment will be made up from either or both

·         The Daily Living Component

·         Mobility Component

The Daily Living Component is further divided into two weekly rates:

·         The standard rate

-          where the person’s ability to carry out daily living activities is limited by the person’s physical or mental condition (Section 76)

-          and the person meets the required period condition (Section 76) -where in the previous 6 months and in the next 6 months the ability of that person would have been assessed as either as limited / severally limited by their physical/mental condition. (Section 79)

·         The enhanced rate

-           where the person’s ability to carry out daily living activities is severely limited by person’s physical or mental condition

-          and the person meets the required period condition (Section 76) -where in the previous 6 months and in the next 6 months the ability of that person would have been assessed as either as limited / severally limited by their physical/mental condition. (Section 79)

The Mobility Component is also further divided into two weekly rates:

·         The standard rate

-           where the person is of or over the age prescribed for the purposes of this subsection, where the person’s ability to carry out mobility activities is limited by the person’s physical or mental condition (Section 77)

-          and the person meets the required period condition (Section 77) -where in the previous 6 months and in the next 6 months the ability of that person would have been assessed as either as limited / severally limited by their physical/mental condition. (Section 79)

·         The enhanced rate

–        where the person is of or over the age prescribed for the purposes of this subsection, where the person’s ability to carry out mobility activities is severely limited by person’s physical or mental condition (Section 77)

–        and the person meets the required period condition (Section 77) -where in the previous 6 months and in the next 6 months the ability of that person would have been assessed as either as limited / severally limited by their physical/mental condition. (Section 79)

Section 81 (1) of the Bill also states that persons a person is not entitled to the Daily Living Component / Mobility Component after he/she reaches pensionable age (currently 65 +)

For further details on the Personal Independence Payment can be found from page 55 of the Welfare Reform Bill http://www.publications.parliament.uk/pa/bills/lbill/2010-2012/0075/lbill_2010-20120075_en_1.htm )

Where is the Bill now?

The Bill passed the Second Reading (general debate on the Bill) on 13th September 2011. Yesterday, it was announced the Bill will be referred to the ‘Grand Committee’ from 4th October 2011. To follow the progress of the Welfare Reform Bill (2011) please click on the following link: http://services.parliament.uk/bills/2010-11/welfarereform.html

The current Welfare Reform Bill (2011) can be accessed at http://www.publications.parliament.uk/pa/cm201011/cmbills/154/11154.pdf

Get involved! How will these changes affect you? Please let us know your views on the current Welfare Reform Bill by commenting below.