Universal Credit and Personal Independence Payment Bill Debate
Full Debate: Read Full DebateGraham Stuart
Main Page: Graham Stuart (Conservative - Beverley and Holderness)Department Debates - View all Graham Stuart's debates with the Department for Work and Pensions
(2 days, 11 hours ago)
Commons ChamberLet us be clear: this will apply to newly acquired conditions in particular. My argument is that by delaying the changes, we can ensure that people with a newly acquired disability or condition can receive treatment and care quickly by making sure that the NHS ramps up its treatment process. I do not think it is ideal, but it is a reasonable compromise, and I hope the Government will listen.
As I said, people with both new and existing severe conditions will be protected. This, I understand, is covered in Government amendment 2 and new clause 1.
There is significant evidence of the harms that disabled people would potentially have experienced if the Bill had remained in its previous form, but the concessions that have been made over the past couple of weeks have addressed that. I applaud the Government for that; it was definitely the right thing to do when the evidence was provided. When our fiscal rigidity is set to cause harm and undermine what we are trying to do in the longer term, it is right that we think again, and Iusb therefore urge the Government to consider my amendments.
There is strong evidence that the Government will make savings in social security spending in the long term through case off-flows. As I have mentioned before, that will be achieved naturally through the additional capacity in the NHS, the realignment of the labour market and, of course, the bringing forward of the employment support.
It is a pleasure to take part in this debate.
The Bill is being rushed through by a Labour Government desperate to paper over the cracks in an economy that they themselves have brought to a shuddering halt. So many of the questions that are coming before the House at the moment are the result of that economic flatlining and the flailing of a Government who are casting around desperately to see how they can get themselves off that economic hook.
Put simply, the Bill is unaffordable. The Prime Minister’s latest concessions to his unruly Back Benchers—now happy and victorious—have left the Exchequer with a £5 billion gap to plug, which inevitably means higher taxes for hard-working families who are already feeling the pinch. Far too few of those voices will be heard today. Too often in debates in this House, Members are consumed with the idea that more spending is a better thing that can always be afforded, and therefore no responsible decisions need to be made. That was the decision of the Labour Back Benchers who wrested from those on the Front Bench control of one of the flagships of this Government’s agenda, leaving the Government—massively endowed as they are with Members of Parliament—like some gigantic ship that has lost all power and propulsion, listing at sea, waiting for the next wave to come along.
As we in this Chamber know, the next wave that comes along and buffets this Labour Government from the left comes all too often from the hon. Member for Walthamstow (Ms Creasy), to whom I am happy to give way.
I absolutely agree with the hon. Lady that we should consider such people. I think of the lady who came to see me on Saturday at my street surgery. She was concerned about the brutality of the PIP process and the way that she and her husband, who has a degenerative, progressive disease for which there is no cure, are put through the wringer to justify their situation, which anyone with any common sense would see deserves support. But the hon. Lady will be aware of the mushrooming in claims from those with various levels of mental health challenges.
Ultimately, we must balance looking after people with degenerative, progressive diseases in a humane and civilised manner with making sure that we have a system that cuts out fraud, and that seeks to minimise those who do not need aid seeking it and getting it. If only we could have a system in which people did not claim for money that they do not deserve and need, we would be able to look after the people whom I think—this is one area of commonality between the hon. Lady and me—both she and I would agree require fairer and more generous treatment.
Does the right hon. Member agree that the reduction in investment in the NHS and in mental health service support for the people of our country has led to an epidemic of people who have had to wait for support, sometimes for nearly two years, which worsens their condition and makes it harder for them to recover and go back to their normal daily life at work? That also leads to an increased demand on PIP.
I thank the hon. Gentleman for his contribution. We on the Conservative Benches know that throwing money at a problem without proper safeguards is not leadership, is not generous and is not kind, but is an abrogation of responsibility and economic negligence.
Let me be clear: this Bill in its current form locks in billions of pounds of additional welfare spending year after year. Under the current Chancellor, we have already seen Britain’s debt interest forecast soar and the bond markets become jittery—more than that, they are charging far more than after the mini-Budget to which Labour Members so love to refer. And inflation, of course, has proven stubbornly high. Now we have yet another unfunded spending commitment, with no plan to pay for it except reaching deeper into taxpayers’ pockets. The Chancellor might not say it outright, but families in Beverley and Holderness and across the country know exactly where this ends up—with them paying more.
The Prime Minister can indulge in his favourite hobby of U-turning his way throughout his time in office, but that is not governing in the national interest, which is what he promised to do. It is the latest example of the Prime Minister bending to pressure from the left of his party, which is so well represented on the Government Benches today, desperate as he is to shore up support for a drifting Government who have lost all propulsion.
Instead of fixing the underlying problems in our economy—or fixing the foundations, as has oft been repeated—Labour has chosen the easy political route of higher spending, higher borrowing and, inevitably, higher taxes. Those higher taxes will be imposed not on some mythical class of super-rich people, which the Greens like to propose, but on ordinary men and women who get up in the morning, work hard, look after themselves and recognise personal responsibility as a central tenet of their lives. That also needs to be a central tenet of our political lives.
That is why I have tabled two amendments to the Bill. Amendment 41 would ensure that Parliament retains control over future annual above-inflation increases. It would mean that the House of Commons must explicitly approve continuing those rates beyond 2027-28, protecting against open-ended commitments that we cannot afford. New clause 9 would require the Government to report on fraud and error arising from these provisions.
Given the scale of welfare fraud that we have seen in recent years—it already costs the taxpayer more than £8 billion—it is only right that we get a proper handle on where taxpayers’ money is actually going.
I would happily give way if there were Labour Members who had an interest in controlling the public finances rather than running up the national credit card irresponsibly, which is their wont. Those efforts by the Front-Bench team have now come to nought. They have given in to their Back Benchers and they no longer have any control or say on the direction of this Government. Together, these straightforward safeguards to protect the public purse would help reduce waste and misuse.
I have no doubt that the Secretary of State will stand up today and try to paint this as a fair and measured Bill. [Interruption.] Labour Members can shout and scream in frustration, but they will have their time to speak. In reality, this is not a fair and measured Bill. It achieves nothing but a two-tier benefit system, unfunded spending commitments and, ultimately, higher taxes for ordinary working people.
Will the right hon. Member give way on that point about fraud?
If the hon. Gentleman, who is so energetically rising from his place, can tell us how he is committed to ensuring that the public finances of this country are kept in a healthy state, I and the House look forward to it with bated breath.
I am really intrigued, Madam Deputy Speaker, because the right hon. Member suggested that he has a concern about tackling fraud and responsibility in public finances. Can he tell us where he was under the previous Government when fraud in the benefit system hit its highest level ever seen in the history of the UK’s social security system? Where are his references in Hansard? Where was he on Bill Committees and in this House when that fraud was soaring? And where was he when this Government began passing legislation to tackle that horrific level of irresponsible fraud in the benefit system?
The hon. Gentleman will know that, as the benefit system grows, the likelihood is that fraud will grow within it. I applaud all efforts to crack down on fraud. I want to see greater efforts by those on the Front Bench to do that, but he knows that it is those sitting on the Back Benches who are now calling the shots.
Ultimately, all roads lead back to the Treasury. The truth is that the Bill is not the product of serious policymaking—neither in its inception nor its eventual outcome, gutted and filleted as it has been by a triumphant left in the Labour party. Instead, it is the product of panic—a rushed response to economic pressures caused by a feeble Chancellor who has brought the economy to a halt. It has been written not with reform in mind, but with rebellion in the rear-view mirror. The result is a muddled, mean-spirited piece of legislation that satisfies no one, least of all the vulnerable people who will suffer under it, or the British taxpayer who will pay for it.
The right hon. Member is right to bring his speech back to the vulnerable people who will be impacted. He will know the devastating impact of cancer on many families. One in two face the reality of a cancer diagnosis. Young Lives vs Cancer has said that, on average, the disease costs £700 a month and £6,000 in annual income. Does he agree that the Bill, by ensuring that those people do not get the high rate universal credit health element, will be devastating for many cancer patients right across the country?
The hon. Lady is absolutely right to highlight the plight of cancer sufferers and the need to have a system that is more generous to those who genuinely need it, but is also tougher in ensuring that the funding goes to the places where it is most required. Under this Chancellor, as we know, Britain risks a return to the same old Labour habits: spend today, tax tomorrow and leave the mess for someone else to clear up. We saw that under Gordon Brown, and we are seeing it again today. The public deserve better than another Labour tax-and-spend spiral that leaves less money in their pockets and less resilience in our economy.
The Bill in its current form is a short-term fix with long term costs. It fails to tackle fraud, fails to address getting people back into work, despite all the protestations from Ministers that it had anything to do with that, fails to guarantee value for money and fails working families by paving the way for inevitable tax rises. If Labour wants to be taken seriously on economic credibility, it needs to start by showing some discipline on spending and not indulging in a spending spree that Britain simply cannot afford. The Prime Minister promised a serious Government—remember that?—a grown-up Government, yet here we are debating a confused, divisive Bill whose main achievement so far is to split the Prime Minister’s own Benches.
If the hon. Lady wants to tell me that the Bill is not confused or divisive and has not been driven by the ructions on the Back Benches, I look forward to hearing her intervention.
The right hon. Gentleman will understand that it is for me to decide what my intervention will be. I was going to say that I am very pleased to hear him sticking up for people who really need help. What part of new clause 9 actually makes things better for people who need help?
The hon. Lady should recognise that looking after the public finances, minimising fraud and ensuring that this House keeps control of public expenditure is exactly in the interests of the most vulnerable. Who will pay the highest price as this economic spiral goes downwards? As always under a Labour Government, it will be ordinary working people, the increasing numbers of unemployed people and vulnerable and disabled people—they are always the ones who pay the price for a Labour Government.
When the last Labour Government left power in 2010, youth unemployment was up 45%. That is their record on young people, who are most vulnerable to the negative impacts of unemployment. It is those vulnerable groups who are always let down by a Labour Government—and most of all by a Labour Government that is run not by those with some sense of public finance control but by their Back Benchers who are out of control.
Does the right hon. Gentleman not agree that it was 14 years of a Conservative Government that led us to a 29% disability employment gap, a 17% pay gap, 4 million disabled people in poverty, and the UN telling the last Government over the first half of their decade that they failed on almost every single commitment in the convention on the rights of persons with disabilities?
I thank the hon. Lady for her intervention, and I respect her a great deal. She will be aware that under the last Conservative Government millions more disabled people came into the employment market. Around 2.5 million—possibly as many as 3 million—more disabled people entered the employment market and had the dignity of work. The Prime Minister and the Chancellor of the Exchequer have no credible plan to get our economy growing. Hard-working families in Beverley and Holderness and right across the country deserve better than another Labour Government chasing short-term headlines at the cost of long-term economic growth and stability.
Last week’s chaos and climbdown has been overshadowed by events of the last 48 hours. The impact assessment published last night shows that £2 billion is still to be stripped from up to three quarters of a million sick and disabled people by 2029-30 through the slashing of the health element of universal credit in two. By the end of this Parliament, some people will lose around £3,000 a year because of these reforms, including those with fluctuating conditions.
If that was not bad enough, the Office of the United Nations High Commissioner for Human Rights has waded in to protect disabled people where this Labour Government have not. I believe that international laws and conventions must be upheld, but this Government are now under investigation for breaches. No matter what the spin is, passing the Bill tonight will leave such a stain on our great party, which was founded on values of equality and justice. The only way out is to withdraw clauses 2 and 3 so that breaches of the UN convention on the rights of persons with disabilities are not upheld.
The UN’s contention is my contention; sick and disabled people have not been consulted. If someone with a fluctuating physical or mental health condition such as multiple sclerosis, schizophrenia, cystic fibrosis or a recurring musculoskeletal condition had a period of remission and worked but then relapsed and returned to universal credit, unless unequivocally stated otherwise in the Bill, they would return on to the pittance of £50 a week for their health element.
I agree. That is my plea to the Treasury Benchers: There is still time to withdraw the Bill and come back with something better.
These issues should be tackled head-on. It is unjust that, because of the way we have built society, each and every disabled person faces £1,000 in extra costs on average per month. None of that is optional spending; it is the unavoidable price of navigating a society that was not designed with disabled people in mind. There is a whole host of reasons for that spending; they are the non-negotiable realities of having a disability. Disabled people know better than anyone the barriers that keep us from work and what would help, so listen to us.
A non-negotiable reality is that we have must economic growth to fulfil the Government’s priorities, be it looking after the poor or the disabled, or any other priority. Yet under this Government, inflation has nearly doubled, and their unemployment Bill, jobs tax and other measures have brought the economy to a halt. Can Labour Members not understand that if they do not prioritise private enterprise and economic growth, they will never be able to serve the most vulnerable, who depend on that growth the most?
I thank the right hon. Gentleman for interrupting at that point, because I have two suggestions that I think would be good for growth. The first is to ask the British Investment Bank to support disabled people in setting up their own business, as it does women and those setting up a minority-led business. I know many ADHDers who would make great entrepreneurs. Unfortunately, sometimes they end up going down the path of criminality. We should consider how we can ensure that their innovation is enhanced and used properly.
The second suggestion is that we make our economy much more inclusive. There could be a national insurance contribution discount for taking on someone with a disability, who may be in receipt of PIP and may have been out of work for more than six months. I am sure that, through a more inclusive society, we can encourage growth, not discourage it.
I have taken up far too much time, so I will end with this. Disabled people know what is best for us. We should be investing in people’s independence, not leaving them on the sidelines or pushing them into poverty. That is a matter of justice, but in the end, it saves money as well. More than that, it gives people the dignity and freedom to live well. That, surely, should be our purpose.
I am happy to give the hon. Gentleman the same answer that I gave him last week, which is that the figures will be published by the OBR in the usual way.
A number of amendments that have been discussed relate to clause 5, which, as the House knows, we are removing through Government amendment 4, so the Bill will make no changes to PIP. Parallel amendments to schedule 2 cover Northern Ireland and, as has been pointed out, Government amendment 5 changes the Bill’s name, once enacted, to the Universal Credit Act 2025. We will now make PIP fit and fair for the future with the wider review to conclude by autumn next year. The Opposition’s amendment 45, on face-to-face assessments, therefore no longer fits in the Bill, but I would say to the shadow Minister, the hon. Member for East Wiltshire (Danny Kruger), that we are indeed going to get ahead with increasing the number of face-to-face assessments, and the point that he needs to recognise is that that should have been done after the pandemic and it was not done. We are getting on and fixing the problems.
I am grateful to my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball) for giving the House, in her new clause 11, a helpful checklist of the desirable features of our co-produced review. I have committed to Disability Rights UK and to others that I will shortly discuss these matters with them, but let me set out my thinking now in response to my hon. Friend’s new clause. I accept subsection (1) of her new clause. The UN convention on the rights of persons with disabilities has featured a bit in this debate—my hon. Friend the Member for Walthamstow (Ms Creasy) referred to it, as did others. To quote article 4.3 of the convention, we should
“closely consult with and actively involve persons with disabilities”
in carrying out the review. I accept the point, made by my hon. Friend the Member for Penistone and Stocksbridge, that that is what co-production entails.
We will aim for a consensus among all those taking part, and that is what I hope we will achieve.
No, I will not give way.
Some amendments seek to change the new universal credit arrangements. The increase to the standard allowance—the first permanent real-terms increase in the headline rate of out-of-work benefits for decades—is an important step forward, as my hon. Friend the Member for Morecambe and Lunesdale (Lizzi Collinge) highlighted. Balancing that with a lower health top-up for most new claims is key to tackling—
On a point of order, Madam Chair. We were told that the Bill was going to bring a £5 billion saving to the Exchequer, then it was £2.5 billion. Is it in order not to have any idea what this will cost the taxpayer?
That is a point of debate, not a point of order. Continue, Minister.