Universal Credit and Personal Independence Payment Bill

Clive Betts Excerpts

2nd reading
Tuesday 1st July 2025 Commons Chamber

[Liz Kendall]

The hon. Gentleman raises a very important point. Members have asked whether people with fluctuating conditions will meet the severe conditions criteria, which are for those with lifelong conditions that will never improve and mean they can never work. It is the case that, as someone’s condition progresses, if they change and meet those severe conditions criteria, they will be protected. One of the reasons for the Timms review, which I will come on to, is precisely to make sure this vital benefit recognises the impact of fluctuating conditions on people’s lives. That is crucial to make sure this benefit is fit for the future.

[Mr Clive Betts (Sheffield South East) (Lab)]

Will my right hon. Friend give way?

[Liz Kendall]

I will make a tiny bit of progress, and then I will give way.

As I set out to the House yesterday, we have listened carefully to concerns that there would not be enough employment support in place quickly enough by the time the benefit changes come in. We are bringing forward an additional £300 million of employment support for sick and disabled people, delivering a total of £600 million next year, £800 million the year after and £1 billion in 2028-29—increasing our total spending on employment support for sick and disabled people to £3.8 billion over this Parliament—to ensure that anyone who is affected by this Bill will be offered personalised work, health and skills support, including access to a specially trained adviser by the time the legislation comes in.

[Liz Kendall]

Joining up work and health support is essential. I have been to visit some of the projects in place, and they are making a really big difference. We are building on that with additional investment, quadrupling what we inherited from the Conservative party. Joining up work and health support is very important, because good health and good work are two sides of the same coin, but this needs to be available widely across the country.

Let me turn to the specific measures in the Bill. Clauses 1 to 4 begin to tackle the perverse incentives left by the Conservative party, which encouraged people to define themselves as incapable of work by rebalancing the universal credit standard allowance and health top-up. I am very proud that we are delivering the first ever sustained above-inflation rise to the universal credit standard allowance—the largest permanent real-terms increase in the headline rate of out-of-work benefits since the 1970s. Some 6.7 million households—the lowest-income households—will benefit from the increase in the universal credit standard allowance, and it will deliver a £725-a-year increase in cash terms by 2029-30 for a single person aged 25 and over.

Having listened seriously to concerns about our original proposals on the UC health top-up for existing claimants and future claimants with severe conditions and those at the end of their lives, we will ensure that for these groups, the combined value of their universal credit standard allowance and the health top-up will rise at least in line with inflation, protecting their income from these vital benefits in real terms every year for the rest of the Parliament.

Alongside those changes, schedule 1 to the Bill will ensure that people with severe lifelong health conditions will never be reassessed, removing all the unnecessary and unacceptable stress and anxiety this brings, so that they have the dignity and security they deserve. Yesterday we published draft regulations on our new right to try, which will guarantee that, in and of itself, work will never lead to a benefit reassessment, giving people the confidence to try work—something many people have called for for years.

I turn to clause 5 of the Bill, on personal independence payments. Yesterday I told the House that we have listened to the concerns raised by many Members, disabled people and their organisations about the impact of the new requirement for existing claimants to score a minimum of four points on at least one daily living activity to be eligible for the daily living component. Even though nine out of 10 people claiming PIP at the point these changes come in would be unaffected by the end of the Parliament, I know this has caused deep and widespread anxiety and stress, so we have changed our original proposals. The new four-point eligibility requirement will only apply to new claims from November 2026. This means no existing claimants will lose PIP because of the changes brought forward in this Bill, and anyone who currently receives any passported benefits, such as carer’s allowance, will also be unaffected by this change.

[Mr Betts]

The changes to PIP, as far as they go, are very welcome, as is the review to be conducted by the Minister for Social Security and Disability, which will be co-produced with disability groups, as I understand it. However, the Government have committed to make changes in November 2026, when that review may not have been completed. Would it not be far more logical to have the review, bring it to this House for agreement and then make the changes after that?