Universal Credit and Personal Independence Payment Bill

Clive Lewis Excerpts

2nd reading
Tuesday 1st July 2025 Commons Chamber

[Clive Lewis (Norwich South) (Lab)]

When coming to a crunchy question or problem, I always think it is wise to take a step or two back and try to unpick some of the assumptions that underpin the issue—to see the bigger picture, if you like. Not everyone will agree with some of the conclusions that I come to, and that is fine—this is a debate, not an echo chamber, although some people may be surprised to hear that—but it is right that we robustly test the proposition before us, to try and understand the structural issues that underpin this Bill.

Let us consider the key issue here: rising welfare costs could lead to the welfare budget becoming unsustainable. The assumption often made is that welfare costs rise because of individual failings, such as people being lazy, unwilling to work or even dishonest—workshy, in other words—but this assumption does not stand up to scrutiny. The welfare bill is not growing because people suddenly became lazy. It is rising because our economy and our society are fundamentally broken. They are broken because of 14 years of cuts and of dehumanised, punitive changes wrapped up as reform but little more than a brutal disciplining of the workforce, compliments of the Conservatives. That workforce are increasingly finding themselves trapped between insecure low pay and in-work poverty, or a humiliating workfare programme that has sucked the marrow out of millions, leaving them drained and burned out and leading to a soaring mental health crisis.

What does explain our dilemma is the fact that work itself has fundamentally changed. Jobs are less secure and often poorly paid, and many who work full time still need benefits because wages do not meet the basic costs of housing, food, childcare and utilities. On top of this, the cost of living crisis is being driven by a toxic mix of structural failures. The climate crisis has increased volatility in the global supply chains of everything from microchips to semiconductors, pushing up food and energy costs. At the same time, companies operating under monopoly and oligopoly conditions, particularly in the energy, water and food sectors, have taken advantage of this disruption to engage in price gouging, driving profits sky high while families struggle to make ends meet.

As has been repeatedly pointed out, the weakness of trade unions has limited workers’ ability to bargain for pay rises that reflect rising costs—costs that, by and large, Governments have failed to cap. Yes, caps on energy prices have been half-heartedly attempted, but what about a cap on rents and on greedy landlords? What about capping the large agri-corporations pushing up food prices or water companies extorting all of us? These are the underlying structural causes. Their collective outcome is a relentless squeeze on real incomes and an increased reliance on welfare simply to survive. In truth, our welfare system is increasingly the state subsidising employers who pay poverty wages, landlords charging unaffordable rents and corporations extracting vast profits, all at society’s expense. All the while our climate and ecology decline, adding to that instability.

The Bill, which at its heart is about balancing the books by tightening welfare eligibility and gatekeeping access, will not address those root causes. It still punishes victims rather than tackling the structural failures, and I cannot support it. That is why I will support the reasoned amendment of my hon. Friend the Member for York Central (Rachael Maskell). The Labour Government have made a start on many of those structural issues—the trade union Bill, GB Energy and the leasehold Bill—but they must go further and faster if we are to make a real impact on who our economy works for and, ultimately, bring down the welfare bill.

Welfare reform should deliver dignity and fairness, not austerity and exclusion. Until we face those deeper truths, we will continue to address the symptoms rather than the causes, perpetuating the very injustices we claim to want to solve and that so many of us came to this place to sort out.