Warnings over legal challenge to benefit cuts were ignored

THE Government pressed ahead with announcing budget cuts to the disability allowance for new claimants despite warnings against the move from the Department of Social Protection.

Legal advice to the department warned a legal challenge could arise from any attempt to pay a lower rate to some people based solely on the date of their claim when their circumstances were no different from existing claimants.

It also said difficulties would arise in defining a new claimant, given that some people were existing claimants on one welfare scheme but had to move to another scheme; some existing claimants would hope to sign off their scheme but might have to depend on it again in the future; and some people had claimed in the past and now needed to re-apply.

Other pitfalls to a two-tier payments were the administrative impact of operating the system, the likelihood of delays in having the IT available to assist with the task and uncertainty that the level of savings achieved would make it worthwhile.

“This proposal would add to the complexity of the welfare system,” the department said. “It is likely that implementation of a proposal, as outlined, would not be implementable at an early stage in 2012.”

Despite this, however, the Government announced the changes would take effect in four months’ time.

The advice, recorded in the comprehensive review of expenditure (CRE) which the department had to carry out to assist the Government with its budget decisions, applies equally to any proposal to cut rates to newcomers to the jobseekers’ allowance, illness benefit, the one-parent family allowance and other primary payments.

The CRE also details other potential cuts to welfare payments and supports which the Government did not include in this week’s announcements but which give an indication of what might turn up in future budgets.