Written evidence from Scope CLP0061

About Scope

We’re Scope, the disability equality charity. We won’t stop until we achieve a society where all disabled people enjoy equality and fairness. At home. At school. At work. In our communities.

We’re a strong community of disabled and non-disabled people. We provide practical and emotional information and support when it’s needed most. We use our collective power to change attitudes and end injustice.

We campaign relentlessly to create a fairer society. And we won’t stop until we achieve a society where all disabled people enjoy equality and fairness.

Summary

In this submission, Scope will be providing evidence to assist the committee in assessing the successes and limitations of the Government’s cost-of-living support. This submission will focus on disabled people’s experiences of receiving cost-of-living payments as well as the eligibility criteria and administration of the payments. Our evidence comes from research, focus groups and polling we have carried out over the last year, as well as data collected from our Disability Energy Support service.

Overall, we have seen that the Government’s cost-of-living payments, where received, have provided some help to disabled people paying for essentials. However, our research has found that the payments were nowhere near large enough to cover the rising cost of essentials, leaving many disabled people in poverty and debt. Many disabled people feel ignored by the Government in their response to the cost-of-living crisis, which was exacerbated by concerns over eligibility and the low rate of the disability cost-of-living payment.

Many disabled households found the payments helped them pay for urgent costs. There were, however, significant concerns surrounding the lack of information and communication from the DWP, which left many disabled households feeling confused. Finally, there is significant anxiety from disabled people about the cost-of-living payments being removed and how families will cover essentials after this lifeline is removed.

Introduction

Scope welcomes the opportunity to respond to the Work and Pensions Committee inquiry into the cost-of-living payments. This response uses evidence from a wide range of sources, including a research panel (described below). We have also used data and statistics from our recently published Disability Price Tag Report and our Cost-of-Living Report published by Scope at the end of last year. Our answers on each of the committees' questions are informed by disabled people across the UK.

1. To what extent have the cost of living support payments been sufficient at helping eligible households meet the cost of essentials such as food and electricity?

The necessity of the cost-of-living payments:

The introduction of the cost-of-living payments was a welcome and necessary urgent step to help disabled people with spiralling costs. During the Autumn and winter months, the number of disabled people contacting Scope in desperation skyrocketed. Calls to our Disability Energy Helpline increased by over 500%, and 9 in 10 people we heard from were worried about paying their bills[1]. Disabled people were having to make devastating decisions about what essentials to prioritise which led to a decline in physical and mental health for many. 52% of disabled people told us that rising costs are negatively impacting their mental health, and for parents and carers, a staggering 88% told us the cost of living is affecting their family’s emotional wellbeing[2].

Disabled people are at particular risk of poverty and debt. Even before the crisis, research showed more than 4 in 10 families who relied on disability benefits were living in poverty[3]. Further, many disabled people need to use more energy than the average household because of vital medical equipment in the home or needing to keep warm. 71% of disabled people who need to use more heating due to their condition were concerned they would not be able to heat their home during winter and 40% told us that going without heating would cause them to be in pain[4]. Disabled households were hit hardest by the cost-of-living crisis and the Government’s intervention to these households was very much needed.

During our panel research with 261 disabled people, participants told us that the payments were welcome, with 73% of respondents who got at least one payment agreeing that it was helpful in paying for essentials.[5]  Disabled people in our research panel survey told us they used the cost-of-living payment for essentials such as energy bills, food and fuel[6]. For so many families, the sharp rise in costs meant the cost-of-living payments became a vital lifeline to those eligible, despite this not being a viable long-term option to address rising costs.

The sufficiency of the cost-of-living payments:

Scope has found the Government’s cost-of-living support has fallen significantly short of having a substantial impact on disabled households during the crisis.

Disabled households face additional costs of £975 per month even after accounting for disability benefits such as PIP[7]. And 43% of callers to our Disability Energy Support service were in energy debt last winter, on average £1,351. For those who received the means-tested cost-of-living payment of £650, this did go far further than the £150 disability cost-of-living payment in funding essentials. However, around 40% of disabled people did not qualify for the means-tested benefit payment[8] and therefore were dependent on the Disability cost-of-living payment of just £150 which did not address the complex and significant financial challenges faced by disabled people during the cost-of-living crisis.

For hundreds of thousands of disabled households, the cost-of-living payment merely offset the amount the Government had taken away from them following changes to the Warm Home Discount. The Government’s changes to eligibility of the Warm Home Discount in November 2022 meant 290,000 disabled people no longer qualify for the £150 rebate on their energy bills.[9]

Specifically on the level of their cost-of-living payments, our research panelists said:

“They helped towards it, but my utilities had increased by £300 a month so I still struggled and had to use food banks etc. I still had to choose between heat and eat”[10]

“Of course I appreciated the extra money, but it was a drop in the ocean compared to the increase in household bills- my energy bills were approximately double what they were the previous winter and a huge proportion of that is the standing charge”[11]

“The payment was not enough to help pay for all essential things as there are so many and the costs are now too much on everything including heating, electricity, food and medical and disability costs making it hard to choose what to use it on as not enough is received to manage” [12]

In 2022 we polled 1000 disabled people to better understand the impact of the crisis, 80% disabled people eligible for the £150 cost of living payment said it would not be enough to cover their increase cost for essentials[13]. Even with Government support schemes in place, over a third of disabled adults feel that their impairment or condition has an impact on their energy usage and 9 in 10 were worried about energy bills in the winter.[14] The payments therefore have not addressed the depth of financial challenges faced by disabled people.

In conclusion, while the cost-of-living payments were welcome and helpful for contributing to paying for urgent essentials. The payment amount, particularly for the £150 disability payment was not enough to be sufficient for the majority of disabled households. The Government should also be looking to create more viable and long-term ways of providing financial support for disabled people.

Recommendations:

-          The Government should ensure that all disabled people and carers qualify for the higher cost-of-living payment, and backdate the previous payments

-          The Department for Work and Pensions should urgently assess the adequacy of benefit levels – in particular, PIP and DLA - in supporting people with essentials and the extra cost of disability.

-          Government must set out what additional support it will provide to disabled people this winter, after the Autumn cost of living payment.

-          Reverse changes to the eligibility criteria of the Warm Home Discount to include those on PIP and DLA

-          As a long-term solution to fuel poverty, the Government should urgently establish an energy social tariff for disabled customers.

2. What role have the following factors played in access to the cost of living support payments:

a) Passporting: Not already being in receipt of certain means-tested benefits, despite being eligible, and consequentially being prevented from accessing emergency support;

Benefits Process:

Many disabled people find the benefits process too complex and challenging to apply or appeal, despite being eligible. We know Work Capability Assessments and PIP assessments can take a significant mental and physical toll on claimants.

The assessment process gets it wrong time and time again, with just under three-quarters (68%) of people who go to tribunal over their PIP decisions winning their case and being awarded benefits[15]. Over 50% of Work Capability Assessments for ESA were overturned at appeal (between October - December 2021)[16]. These startling rates explain why some choose not to engage with this process despite their need for support. The longstanding issues of mistrust between disabled people and the DWP have left many feeling isolated and alienated from engaging with the DWP even when eligible for support. The DWP need to do more work in this area to ensure outreach is happening for disabled people not on benefits and to ensure they are supported throughout the process.

Societal Stigma:

Some disabled people may also be fearful of claiming benefits they are entitled due to societal judgement and stigma about benefits. One respondent to our survey told us:

“I feel awkward talking to my employer about benefits as they work full time and I only work part-time due to my disability and in my workplace there is an openly discussed view that people who claim benefits are lazy and work shy”[17]

b) Cliff-edges: Not being in receipt of a certain means-tested benefit, because households failed to meet certain qualifying thresholds.

Several respondents to our panel survey informed us that they were ineligible for certain means-tested benefits for a number of reasons.

Household income:

Many respondents noted that due to someone in their household working i.e a non-disabled partner, their overall household income makes them ineligible for means-tested benefits due to the threshold:

“My husbands earnings put us over the threshold for claiming universal credit- last time I checked it was a very close call and if we used a different childcare provider with a higher daily cost (£5 per day more) we would qualify for UC”[18]

“Because my husband earns over the benefits cap then we aren't eligible for any additional cost of living help. I am a full time carer and we have one wage which isn't great once all bills are paid. We have a disabled child who uses and relies on electrical equipment so we use more energy that the average person. Thus we are stuck in a gap where we aren't eligible for any help other than the paltry £150 COL DLA payment. Unless we claim UC then no one can help us... Can't access any cheaper social tariff broadband/tv packages as we aren't on UC Can't receive funding help as our income is over their cap ( despite us having higher costs which aren't taken into account).”[19]

“No help for 'border line' households or those who drop income after living off savings for years because they didn't qualify”[20]

Disabled households who do have savings and a working adult in their household still have significantly higher additional costs, with disabled households facing extra costs of around £975 per month[21]. Due to the significantly large extra costs disabled households face, many who can save, do so in case of emergencies relating to their health conditions that require additional funds. The DWP, however, has penalised this group for saving, despite the necessity of saving being vital in disabled households. Disabled households, regardless of salary and savings, have significantly higher energy costs and additional costs, which means many would still have needed this payment, looking at income alone is therefore an insufficient measure of the challenges faced by families during the cost-of-living crisis. We also heard from disabled adults who, due to working part-time were unable to qualify for additional support payments. This is concerning given many disabled people have to work part-time to accommodate their health condition.

Carers of disabled children

Another key concern raised to us was that those who were foster carers to disabled children did not qualify despite being hit by rising energy and living costs.

PIP as a non-qualifying benefit

Another core reason for concern among disabled people was the fact those on PIP did not qualify for the additional payment. Given the additional costs of disability, many felt that PIP should have been included in the eligibility for the larger payment amount. An online Parliamentary Petition has been signed by 24,649 people in support of making those on disability benefits eligible for the £650 cost-of-living payment.[22]

The decision to provide disabled people a lower payment made many feel unsupported and ignored by the Government. The financial strain was significant for those solely dependent on PIP, our respondents noted:

“I only receive PIP so am not eligible for the other payments even though it would help me tremendously”[23]

“Why are disabled [people] treated so unfairly... we get less than those in receipt of means tested benefits and get less help.  Covid was a nightmare that has continued.  The increase in April was swallowed up instantly and still not given us any breathing space”[24]

“I do claim PIP but support was not given to those only claiming PIP. Quite frankly it is a joke. Those on means tested benefits require the support but I also believe so do the majority of people on PIP”[25]

Legacy and Contributions based benefits

Lastly, one of the biggest barriers to receipt disabled people faced was being ineligible due to being in receipt of legacy or contributions-based benefits. From our research and calls to Scope’s helpline there was a significant amount of confusion and frustration as to why those on contributions-based or new-style ESA did not receive cost-of-living payments.

“It’s disgusting that people on legacy benefits don’t get cost of living increases.   I’m just as disabled as those who did and it’s disgusting they discriminate against us constantly”[26]

“Because I'm on legacy benefits, I wasn't eligible like those on Universal Credit were. The only reason we got it was because of Child Tax Credits, which not everyone gets”[27]

“I'm on a legacy benefit, contributions-based Employment and Support Allowance which wasn't eligible for a payment” [28]

Scope would be interested in hearing from the DWP about the decision not to include those on contributions-based ESA in the cost-of-living payments and hopes the committee will investigate this decision.

c) Qualifying period anomalies: issues relating to the timing of benefit payments;

Challenging decisions in the qualifying period:

Scope heard from several disabled people who either missed the qualifying period or were anxious about whether their claims would be backdated. Several disabled people who were challenging PIP assessments noted there was little to no communication from the DWP on whether they would receive the cost-of-living payments backdated or not at all. The lack of clarity on qualifying periods and PIP tribunals is an issue the Department should look to address in the next set of payments.

“I was going through the PIP tribunal process last year. I ended up being eligible for PIP and this was backdated. So I was eligible for the disabled cost of living payments. I’m hoping that because the PIP was backpaid that I might be able to claim for last years cost of living payment. I am in the process of requesting this” [29]

“I was contesting a dwp decision at tribunal during the qualifying period. I don't know if the col payment was included in my back payment or not” [30]

d) Receiving a nil award on a Universal Credit payment, due to reasons such as sanctioning; or

Disabled people are more likely to be self-employed and therefore have varying income which can frequently cause the receipt of nil award on UC, this means many disabled people may well have missed out on the cost-of-living payments.

In summary, on question 2, there were a multitude of factors that have prevented a significant proportion of disabled people from receiving enough cost-of-living payments. Disabled people felt unsupported and unfairly treated by only receiving one smaller cost-of-living payment despite having extra costs of £975 per month on average. There were also concerns raised by those on contributions-based ESA and those whose households earned too much to qualify. Which potentially showcased the Government’s limited recognition of the significant pressures facing disabled people exclusively.

Recommendations:

• All disabled people and carers should be included in the eligibility for the higher rate (£650) cost-of-living payment
• Create a channel for claimants to appeal or challenge ineligibility for the cost-of-living payment, to be reviewed on a case-by-case basis considering their unique circumstances.
• Ensure all claimants with ongoing benefits challenges receive backdated cost-of-living payments to the start of their correct entitlement. This should also be clearly communicated with claimants during their tribunal process.

3. How has the Department’s ad-hoc payment system and its design and use benefitted or limited the delivery of cost of living support?

Due to the nature and urgency of the cost-of-living crisis, we recognised the need for the ad-hoc nature of the design and delivery of payments. However, we have seen there have been several delivery issues with the cost-of-living payments due to their ad-hoc design.

Non-specified payment times:

One of the major concerns is the lack of specified payment times - recipients have little clarity on when their payment will arrive which can not only cause anxiety but leaves many unable to financially plan. Scope receives frequent contact from disabled people asking questions about what dates cost-of-living payments should arrive and the ad-hoc nature can cause distress to many waiting for payment.

Respondents to Scope’s survey shared their experiences with this:

“I knew the payments were coming but while the first payment was scheduled the second was very vaguely scheduled for 'autumn'. It is hard to budget when you don't know when money is coming in. We need more precise dates” [31]

“I was frustrated that the DWP and Universal Credit could not provide a specific date of when I would receive the money other than between two dates as you did not know exactly so could not budget around the uncertainty” [32]

“The payment dates were quite far apart making budgeting awkward as you didn't know exactly when the payment would me made just period when it was due” [33]

Late payments:

The majority of participants in our survey received their cost-of-living payment in time (82%). While the number of late and missing payments was relatively low, we did find that the routes to reporting late payments were challenging and often led to no feedback or tracking.

Waiting times:

Scope has concerns about the time delay between the announcement and implementation of the cost-of-living payments; we already know disabled people are at risk of poverty and debt. The lengthy wait times have caused many families distress. The most recent announcement saw the Government publicly announce the cost-of-living payments on 3 January, the payment scheduled window was then announced on 27 March, and then the payment was administered on 25 April – 17 May. The last 2022 payment should have been received by claimants in November, leaving them 5-6 months for the next payment, which included some of the coldest months.

Inflexibility in DWP administration:

The cost-of-living payment administration highlighted some of the long-standing concerns about the DWP’s administration systems. Given the current climate, the DWP needs a far more advanced, appropriate and fast route to increase or modify benefit levels more swiftly. It is imperative this is also accessible to all benefits, not just Universal Credit.

Inaccessible information:

Disabled people have told us that information on the cost-of-living payments was often hard to find on the Government website. Many disabled people came to Scope for information on payment eligibility and timescales because of inaccessible or a lack of information on the DWP website. Disabled people told us that while there was information online via social media and news outlets, it often created confusion especially with the lack of detail on the DWP website itself.

“Information was available via many channels including social media.  Understanding this information, however, was difficult and confusing.” [34]

“As an adviser in my work role, I could find this information.  Clients had difficulty finding and were confused as to whether they were eligible or not and when they would get paid.  Would assist by going through this with them.  The website is and was not helpful or very clear.” [35]

“I was too ill to go find information, although I assume it was on the government website” [36]

Accessible and clear information should be at the heart of any DWP communication with disabled people and this should be priortised in the forthcoming year.

Recommendations:

• Publish a clear and precise timeline for payment dates for the year in advance so households can financially plan as close to the announcement of payments as possible.
• Ensure community groups, local job centers and charities offering advice are well informed of payment times and eligibility so they can assist in spreading correct information.
• Ensure information is accessible and available to those without computers or internet access.
• Ensure the Department evaluates the adequacy of its current IT administrative system.

Conclusions:

• Disabled households who did receive the cost-of-living payments were grateful for this intervention, given the escalation of rising costs.
• While payments were helpful, they fell far short of providing adequate financial assistance for disabled people who face stark extra costs. Those on PIP alone, who did not qualify for the cost-of-living payments made to those on means tested benefits, felt the payment was far from being a sufficient representation of their increased costs. 
• Disabled people used their cost-of-living payments on essentials such as energy bills, food and fuel.
• Many disabled people feel the DWP does not accurately understand their needs, the DWP should work to improve understanding of disabled people’s circumstances by engaging with them and their networks directly.
• The DWP should ensure disabled people qualify for the higher value means-tested cost-of-living payment amount.
• Cost-of-living payments should be announced with clear and accessible accompanying information on eligibility and payment dates.
• An appeal process should be made available for those with specific circumstances that the DWP have not accounted for I.e. the self-employed and foster carers.
• The DWP needs to put in place a longer-term solution for rising costs, including evaluating the adequacy of benefit levels and providing an energy social tariff.
• When cost-of-living payment support ends, the DWP need to provide reassurance and support for disabled people for whom the support has been a lifeline for.

Scope is always keen to be a part of the Work and Pensions Committee’s inquiries and would welcome any opportunities to give oral evidence.

May 2023