Universal Credit and Personal Independence Payment Bill

Iqbal Mohamed Excerpts

2nd reading
Tuesday 1st July 2025 Commons Chamber

[Mrs Badenoch]

I will make some progress.

Despite the obvious flaws in the Bill, we offered to support benefit changes in the national interest. The hon. Member for Gateshead Central and Whickham (Mark Ferguson) asked a question, and I will answer it very clearly for those who have not been paying attention. We agreed to support the Government if they could make three simple commitments; they were not unachievable or unreasonable commitments. First, they had to cut the overall welfare bill, because we are spending far too much already. Secondly, they had to get more people into work. Thirdly, they had to stand by the Chancellor’s own commitment that, with taxes at a record level because of her choices, she would not come back for more tax rises.

What did we get from the Government? A sneery response indicating that they could manage on their own. How’s that going? What happened instead was that the number of MPs opposed to the Bill grew ever larger, until the inevitable U-turn finally came, announced by a press release dispatched after midnight and a panicked letter setting out that the reforms had been gutted. The Bill is now more incoherent than it was at the beginning.

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

Just to reflect on the record of the previous Government, as of 2024, approximately 24% of the UK population—nearly 16 million people—were living in poverty. Between 2019-20 and 2022-23, an additional 2.1 million people were living in poverty. In the year to April 2024, before the Labour Government came into power, 4.45 million children, or 31% of children in the UK, were living in relative poverty. Will the right hon. Lady agree with me that the previous Tory Government failed a majority of the population, including disabled people and children?

[Mrs Badenoch]

I definitely will not agree with the hon. Gentleman. He is talking about relative poverty figures. The fact is that the best way to get people out of poverty is to get them into work—something we did again and again and again.

The Bill is more incoherent now than it was at the beginning. It does not do the job at all. Reforms that were not enough in the first place will now cut only £2 billion from a ballooning budget, instead of £5 billion. They will create a new welfare trap and a two-tier welfare system. Right up until the last moment, the Government kept pushing and pushing, ruling out changes and sending their poor, weary Ministers and ambitious Back-Bench bootlickers out on to the airwaves. At the last moment, as we have seen before, the Government abandon them after all of that—they have been hung out to dry.

The Government do not care how they have made their Back Benchers look, and it is not for the first time. Week after week, the Chancellor was sent here to say with a straight face that she was right to cut the winter fuel payment, that there would be no turning back and that the country’s finances would simply collapse if she did not take pensioners’ fuel money and give it to the trade unions, and her Back Benchers sucked that one up. They muttered and they grumbled, but each of them went back and told their constituents that the winter fuel payments were being confiscated to fix the foundations.

Only once pensioners had sat in the cold all winter, the Chancellor had tanked the economy and Labour MPs had had the door slammed in their face up and down the country did they finally accept that it was a mistake. This time, when asked to line up behind a Bill that takes money from older, disabled people with physical disabilities—a Bill that, according to the Government’s own modelling, gets no one into work—funnily enough, lots of Labour MPs did not fancy another go. Perhaps they will think twice next time the Chancellor comes to them with a bad idea.

--- Later in debate ---

[Debbie Abrahams]

I remember well the UN rapporteur saying that the Conservatives were engaged in cruelty towards people in this country who needed help the most.

What I cannot fathom is why a Labour Government are not first putting in the support and then letting it bed in, which is what will reduce the welfare bill and increase employment levels. The impact of any cuts would then not be as drastic. The starting point should never be cuts before proper support. The review led by my right hon. Friend the Minister for Social Security and Disability, who I have a lot of respect for, is starting to look a little bit predetermined as the change in criteria will happen at the same time as the review concludes. It remains unclear how existing claimants with fluctuating conditions will be assessed, and the impact that these changes will have on the carer’s allowance. However, we do know that disability living allowance claimants and those on other legacy benefits will be assessed under the new criteria, putting almost 800,000 disabled children at risk of losing support.

The north-east region has the highest number of disabled people in England, and the number of people searching for work outpaces the number of available jobs. How on earth will cutting the health element of universal credit incentivise those people to go out and find a job that does not even exist? Since PIP is an in-work benefit, restricting the very support that could keep people in work will only help to increase unemployment. All of this for £2.5 billion of savings, when we know that savings can be made elsewhere and when we know that those with the broadest shoulders could pay more. Instead, we are once again making disabled people pay the price for the economic mess that the Conservative party left us.

As it stands, we are being asked to vote blind today. There is no new Bill, no new explanatory notes and no fully updated impact assessment. There is no time for sufficient scrutiny, and no formal consultation has taken place with disabled people. The majority of employment support will not be in place until the end of the decade, and Access to Work remains worse than ever before. We are creating a two-tier, possibly three-tier, benefit system, and we know for certain that disabled people are going to be worse off. This is not a responsible way for any of us to legislate. It is predicted that disabled people will lose on average £4,500 per year, yet we know they already need an extra £1,095 per month just to have the same standard of living as those in non-disabled households. There is a reason why 138 organisations representing disabled people are against this Bill, and there is a reason why not a single organisation has come out in support of it.

I am pleading with MPs today to please do not do this. For those on my own Labour Benches, staying loyal to your party today may feel good in this place, but once you go home and are in your individual constituency, the reality of this will hit—and it will hit very hard.

[Iqbal Mohamed]

Will the hon. Member give way?

[Emma Lewell]

I am sorry, but I am concluding my comments.

Just as in 2015, constituents will never forgive us, and it will haunt those MPs who vote for this Bill. I, of all people, should know.

--- Later in debate ---

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

I rise not just with grave concern but with absolute conviction. I speak in support of the reasoned amendment tabled by the hon. Member for York Central (Rachael Maskell), and with a plea to the Government to pause, think, reflect and bring back something that will work for the betterment of disabled people. I am afraid to say it, but I have been saddened to hear disabled people being presented in a negative light throughout this debate, although not by all Members. Disabled people are not a burden on society; they are part of society, and they make an invaluable contribution to it. The support that they receive allows them to make that invaluable contribution.

If this Bill passes, it will do unconscionable damage to disabled people, their carers and their families, who are already on the brink in this cost of living crisis. It will deepen poverty, increase hardship and undo decades of progress on social security. I urge the Government to withdraw it now and come back when it is fit for purpose. My independent alliance colleagues and I have been clear and consistent in saying that we are acutely aware of the devastation this Bill will cause. We have fought it and will fight it every step of the way until a Bill that is fit for purpose is before us.

Today we are being asked to sign off on billions of pounds in cuts without any credible data. We have a moving target, as elements of the Bill that are published will no longer apply when it comes back to the House. We have heard the Department’s analysis that 150,000 people would be pushed into poverty, and maybe more than 20,000 children. Despite the talk of concessions that were rushed out and tweaks that were made, they do not change the core injustice.

This Government want to create a two-tier welfare system in which today’s disabled people get help but tomorrow’s disabled people are discarded. New PIP claimants will have to pass a cruel new threshold to qualify for PIP compared with existing claimants. My question to the Secretary of State is: can she explain to my constituents who designed this four-point system? Who defined the criteria by which somebody would qualify or not qualify?

[Mr Adnan Hussain]

Does the hon. Member agree that now is the time when the Government need to confirm what we are voting on? We have had U-turn after U-turn, and I believe Members are confused.

[Iqbal Mohamed]

I will accept a Government who listen, adapt and change their approach in the light of new evidence put before them, so I would congratulate the Government on improving on the proposals. I really do not question the core intentions. Fourteen years of waste and mismanagement have led us to the point of having an unmanageable welfare state, and that absolutely must be assessed and improved, but that cannot be at the expense of support for the most vulnerable in our society.

This Bill will impact not just on disabled people, but on carers. It slashes £500 million from carer’s allowance, which is the largest real-terms cut since the benefit was introduced in 1976. Carers save this country tens of billions of pounds through unpaid labour, and nearly half of them already live in poverty. Is this really the thanks that they deserve?

It gets worse: if an existing claimant loses their PIP on reassessment, which happens all too frequently due to assessor errors, they will be treated as a new claimant and be subject to stricter rules. That includes anyone moving from DLA to PIP. That is punitive and regressive, and will erode trust in the entire system.

We are told that there will be consultation, but what consultation happens when a Bill is pushed through in a single week without adequate scrutiny or engagement with those most affected? The principle of “Nothing about us without us” has been flagrantly ignored.

We have heard from Scope that the extra cost of living with a disability is nearly £1,100 a month, which is not covered by PIP. That is expected to top £1,200 by 2029, yet under this Bill those same people will be expected to survive without the support they rely on. The Government expect disabled people to shoulder £15,000 in extra costs and to offer them less and less.

The public see through this. Only 27% support these reforms, while nearly half of those surveyed believe that they will worsen the health of disabled people, and over half expect more pressure on the NHS. These cuts will make people sicker, more isolated and more dependent on an already overstretched service. The politics of this is damning, but it cannot be about politics—it must be about the people we are in this place to serve. I ask the Government to please go back, wait for the consultation to be completed, and then integrate the learnings and the feedback from the people affected so that this legislation makes a positive contribution to our society, not a negative one.