Universal Credit and Personal Independence Payment Bill

Andy McDonald Excerpts

Committee of the whole House & 3rd reading
Wednesday 9th July 2025 Commons Chamber

[Deirdre Costigan (Ealing Southall) (Lab)]

I will speak to the Government amendments and against some other amendments. Before I was elected, I worked for the trade union Unison where I was the national officer for disability equality. In that job, I saw every day how disabled people who love their jobs are often pushed out of the workplace by employers who refuse to make the small changes that would help them to thrive at work.

Through the Mayfield review, this Labour Government are seizing the opportunity to finally make the workplace more accessible for disabled people. The Employment Rights Bill will bring in flexible working, allowing disabled workers to perhaps start a little later in the morning when tablets have kicked in or to work from home to avoid the painful morning rush hour. Alongside that, I have also introduced my own Bill for a deadline for employer responses to reasonable adjustment requests from disabled workers. We are transforming the workplace for disabled people, and Labour is also making work pay. No longer will it be a choice between benefits and a bargain basement job. We have increased wages for 3 million low-paid workers, committed to introducing mandatory disability pay gap monitoring and delivered the biggest upgrade to workers’ rights in a generation.

Government new clause 1 and associated amendments will ensure that for those who cannot work, their universal credit health benefit will increase in line with inflation. The Bill ends the absolute indignity of constant reassessments for those with severe conditions. Almost 15,000 families in Ealing Southall will also see the basic rate of universal credit increase by a record amount, lifting thousands of children out of poverty across the country. New clause 12 would rob those 15,000 families of that money—it must be rejected.

It cannot be right that almost 3 million people are off work long-term sick, 1 million young people are not earning or learning, and a thousand people a day are applying for PIP. We are an outlier internationally. No other country in the world sees the same massive increase in people on sickness-related benefits. It is unique to this country, and we do no favours to people with long-term conditions by ignoring it. The Tories created this broken system where people are better off on sickness benefits than in work and there is no help for those who want a job. Everyone knows the system needs reform, but amendments 2(a), amendment 2(b) from the Chair of the Select Committee my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), Conservative amendments 50 to 55, and new clause 12 would continue to put reform on the long finger and delay change.

Last August, after 14 years of the Tories, when I visited west Ealing jobcentre and asked who I could speak to if I was a disabled person who needed a job that would work around my needs, I was told there was no one—no one at all. That is why we need change now. Under Labour, west London is one of the 14 Get Britain Working trailblazers across the country. People on long-term sickness benefits with back pain and other musculoskeletal conditions, which are the second biggest reason why people claim health-related benefits, have been contacted and asked if they want help to get a job, and hundreds have replied that they do. They have been sat there waiting for us to contact them. Those people were ignored by the previous Government—people who wanted to work but were left on the scrapheap.

Some £8 million from the Government is helping west Londoners into work. The Bill is part of a much bigger £1 billion plan to extend that to every jobcentre and to every disabled person who wants a good job. The new right to try will build a more flexible benefits system that does not force people to put themselves in a box, locked out of work for ever, but allows them to try work without losing benefits.

I am glad that the Government have ensured that no one on PIP will lose it, and that they will co-produce the PIP review with disabled people—it has been over a decade since the PIP system was last reviewed, and since then we have learned more about the impact of mental health conditions and fluctuating conditions—but true co-production means letting the review go ahead without this House trying to control it, so we must reject the rigidness of new clauses 8 and 11 in favour of true co-production.

Disabled people were let down again and again by the previous Government. Labour is finally delivering equality for disabled workers while fixing the broken system that forces almost 3 million people to languish on long-term sickness benefits without help. If colleagues across the House genuinely want reform that builds a better, more flexible benefits system that makes work pay, takes 50,000 children out of poverty and properly supports disabled people who cannot work, they must do more than just talk about it; they must vote for the Bill and get on with the job of changing Britain for the better.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

I rise to speak in support of new clauses 8 and 11, amendment 38 and the Bill more broadly. This informed debate has been conducted respectfully. Throughout the entire process, it has been illuminating to hear from so many Members with such in-depth personal, familial and professional experience. I urge those on the Government Front Bench to look upon such Members from across the House as a resource, because they speak with great authority. I mention in particular the speeches by my hon. Friends the Members for Stourbridge (Cat Eccles), for South West Norfolk (Terry Jermy) and for Beckenham and Penge (Liam Conlon), which were so informative.

May I correct one earlier comment? We heard from one Opposition Member that “no recourse to public funds” means “recourse to public funds.” Well, the clue is in the descriptor. I know that Boris Johnson struggled with that, but “no recourse to public funds” means exactly what it says.

I wish to speak about the impact were the House to pass amendment 2. I recognise that the amendment adopts some of the previously announced concessions and somewhat limits the damage of clause 2. But let me be clear: even with the amendment, the clause is not acceptable. The Bill is not welfare reform; it is a cut—deliberate, far-reaching and deeply damaging. Even after amendments, clause 2 will remove £2 billion from disabled people in the years ahead. Three quarters of those affected are already in material deprivation. Around 750,000 individuals—people who are too ill to work—stand to lose an average of £3,000 a year. Members must consider today which constituents whose doors they knock on will find themselves £3,000 a year worse off. The weekly top-up for those too unwell to work, which is currently £97, will fall to £50 for new applicants—the same condition and need as current claimants, but half the support. That is not fairness; it is the creation of a two-tier welfare system. We are not talking about abstractions; we are talking about people who cannot walk 50 metres, or who need constant supervision, or who cannot operate a keypad unaided. They currently receive £423 per month. Soon, some could receive as little as £217 per month. That is not a budget decision; it is a moral one.

--- Later in debate ---

[Freddie van Mierlo (Henley and Thame) (LD)]

One amendment tabled by the Conservatives seeks to strip foreign nationals of the right to claim benefits. That could mean that some people are left with no support whatsoever, which could include my father, who has been in this country for 40 years and paid into the system. The amendment tabled by the Conservatives is absolutely despicable, and I invite the hon. Member to join me in agreeing with that statement.

[Andy McDonald]

The hon. Member makes a powerful point. We have to raise our heads and look at our brothers and sisters, who are actively and economically engaged in our country, and think about the contribution they make and the payments they make into the Treasury, through tax and national insurance. We must treat them with dignity and respect, rather than trying to other them at every opportunity.

[Simon Hoare (North Dorset) (Con)]

The hon. Member makes an incredibly powerful and telling point about the disincentive of trying to get into work for people who have a varying and fluctuating condition, such as MS. That is an unanswerable point and I will listen with interest to what the Minister has to say in response. Does he agree with me that in conversations that the Minister has with what we are too lazily inclined to refer to as “the disabled community”, unless we are able to break down disabled groups into those who have a permanent condition and those who have a fluctuating condition, and to individually tailor responses to that, it will be a missed opportunity to get this right?

[Andy McDonald]

The hon. Member makes an important point, and it is critical that that is reflected on the face of the Bill. With all sincerity, we cannot walk away from here thinking that guidance notes are enough. They may change fundamentally in further iterations and say something completely different from what this honourable and decent Minister is saying to us today. Policy for disabled people must be made with them, not imposed upon them.

If we are serious about ending austerity, we cannot keep balancing the books on the backs of the poorest. That means revisiting not just what we spend, but who we tax and how. We have heard about the party of millionaires making their case that this country has done so well by them—they are so privileged to have made a success of their lives and to have flourished—that they are looking at the opportunities they were given and saying, “Please, we can make a further contribution.” It is they who made the argument about a wealth tax that would raise £24 billion. Nigel Lawson, when he was Chancellor, thought that the differential between capital gains tax and income tax was an anathema, and he equalised it, so there are opportunities for us there.

The Employment Rights Bill also presents us with wonderful opportunities. If we could grasp the issue of “single status of worker” and deal with the issue of bogus self-employment, limb (b) employment, zero-hours contracts and the rest of it, that not only represents secure, well-paid, unionised work for people to give them a flourishing life; it also gives us the opportunity to collect currently uncollected tax and national insurance, to the tune of £10 billion per annum. That would also mean supporting people according to their needs. That is not Marx, but the Acts of the Apostles.

This is a moment of reckoning. The country expects better. If we are to lose our nerve now, we will lose more than a vote: we will lose the trust that brought us here. We must reflect that during our discussions about the Bill, each and every one of us has heard the response from our constituents and our offices that this has been a shambles—there is no other word to describe it. Now is the moment to stop the cuts and I implore the Government to rethink the Bill.

[Nadia Whittome (Nottingham East) (Lab)]

I rise to support my new clause 10, as well as a number of other amendments tabled by my right hon. and hon. Friends, including new clause 8, new clause 11 and amendment 38.

I welcome the concessions that the Government have made to the Bill, which I will be supporting. I pay tribute to the disabled and chronically ill people whose tireless campaigning led to those concessions—I have been proud to stand with them. However, the changes do not alleviate all my concerns about the Bill. One in three disabled people are already in poverty. The Bill, even after the Government’s amendments, would take around £3,000 a year from the disabled people of the future, at a time when the extra cost of being disabled is set to rise by 12% in the next five years.

The Government’s analysis states that the measures in the Bill will lift 50,000 people out of poverty. However, analysis from the Joseph Rowntree Foundation and the New Economics Foundation shows that they would actually push 50,000 disabled people into poverty. We know that benefit cuts and loss of payments help to trap women experiencing domestic abuse, make children grow up in poverty and even cost lives, like that of my constituent Philippa Day, who died from a deliberate overdose after her benefits were wrongly cut.

This is particularly pertinent to those with fluctuating conditions, who risk losing LCWRA status during periods of temporary improvement. That is why amendment 38 is so vital, as it would ensure that they are protected. Even with the Government’s concessions, not a single disabled people’s organisation supports this Bill. It is at the request of the disabled people’s organisations forum in England that I have tabled new clause 10, which would require the Government to publish a human rights memorandum before the Bill can be enacted.

No analysis of the impact of the Bill on the human rights of disabled people has been published so far. Last year, the UN found that there had been further regression in the “grave and systemic violations” of disabled people’s rights in the UK, which it reported on in 2016. Last night, the UN wrote to the Government to say that it had “received credible information” indicating that the Bill will “deepen” that regression. We should not proceed with the Bill as it stands.

Disabled people’s organisations remain sceptical about the Timms review into PIP. I am hopeful that the Government will support the amendment tabled by my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball), which would make provision for commitments around co-production and oversight. They must also support new clause 8, which would ensure that changes from the Timms review are introduced as primary legislation. That is essential in ensuring democratic scrutiny—otherwise, MPs will not be able to amend or vote on the legislation. It would also prevent a reduction in eligibility for PIP, which we know would be disastrous and which motivated so many of us on the Government Benches to call on the Government to think again.

I joined the Labour party because of what I experienced and witnessed growing up as a child and a teenager under the Conservatives. As a disabled MP, I have first-hand experience of the disability benefits system. We have all met constituents who are already not getting the support they need. The question today is this: do we let their number grow? If the answer is no, I urge Members to support the amendments that would strengthen protections for disabled people and, ultimately, to vote down this Bill.