EHRC unable to establish if ministers met equality duty in 2010 spending review

The Equality and Human Rights Commission has said it was unable to establish whether or not decisions made by the Treasury in three areas of the 2010 Spending Review were in full accord with the requirements of equalities duties.

This was “because of a lack of clarity as to a) where the true site of the decisions lay and b) whether or not some decisions were the responsibility of other government departments or the government as a whole”.

The three areas concerned were:

  • Introduction of a household benefits cap. “There was no evidence of any gender analysis or equality screening of the measure provided to HM Treasury ministers prior to the announcement of the measure”;
  • Bus Service Operators Grant (BSOG). “The potential impact on people with disabilities was not included in the advice provided to HM Treasury ministers”;
  • Replacing Education Maintenance Allowance with local discretionary funds. “There was no reference to ethnicity, disability or gender in information provided to HM Treasury ministers.”

However, the EHRC said it would be disproportionate to take further formal action in these areas. The Government has given the Commission an undertaking to address the issues raised in the report.

The EHRC report also found that the Treasury acted in accordance with the requirements of equalities duties in six areas:

  1. Removing Child Benefit from households with a higher rate taxpayer;
  2. Reform of legal aid;
  3. The £2.5 bn pupil premium for disadvantaged children;
  4. Removal of mobility component of Disability Living Allowance from claimants in residential care homes;
  5. A 10% reduction in Council Tax Benefit expenditure, and localization;
  6. Time-limiting the contributory Employment and Support Allowance to one year for those in the Work Related Activity Group.

The Commission commended ministers and officials for “serious” efforts to meet the requirements.

However, it has called for greater transparency in future reviews and the development of a common model of analysis to predict the likely equality effects of policy.

It also recommended earlier use of the equality duties to ensure better targeting of funds and greater value for money.

EHRC chair Trevor Phillips said: "This has been an unprecedented exercise by the Commission. We were helped immensely by the openness of Ministers in particular the Chief Secretary, who gave evidence, and the Chancellor.

“We believe that our recommendations will go a long way to making sure that all parts of government are better able to meet their legal obligations, and more importantly to make decisions which are fairer, and seen to be fairer.”

The EHRC report, Making fair financial decisions, can be downloaded here