Universal Credit and Personal Independence Payment Bill Debate
Full Debate: Read Full DebateLuke Evans
Main Page: Luke Evans (Conservative - Hinckley and Bosworth)Department Debates - View all Luke Evans's debates with the Department for Work and Pensions
(2 days, 8 hours ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
This Bill and our wider welfare reforms seek to fix the broken benefits system that we inherited from the Conservatives and deliver a better life for millions of people across our country. Our plans are rooted in principles and values that I know many in this House share: compassion for those who need our help most, a belief in equality and social justice, that everyone should have the chance to fulfil their potential no matter where they are born or what their parents did, and responsibility for our constituents and our country as a whole, so that we ensure the welfare state is sustainable and lasts for generations to come. But the system we inherited is failing on all those counts.
Conservative Members left us with a system that incentivises people to define themselves as incapable of work just to be able to afford to live. They then wrote people off without any help or support, then blamed them to grab a cheap headline. The result is 2.8 million people out of work due to long-term sickness, and one in eight of all our young people not in education, employment or training, with all the terrible long-term consequences that brings for their future job prospects, earnings and health. The number of people on disability benefits is set to more than double this decade, with awards for personal independence payments increasing at twice the rate of increases in the prevalence of disabled people in our society, adding 1,000 new PIP awards a day—the equivalent of adding a city the size of Leicester every single year.
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.
The last Government introduced WorkWell pilots in 15 areas for 59,000 people, providing a multidisciplinary team package to get them back into work. Am I correct in thinking that the £300 million the Secretary of State is investing is built off the back of that pilot? Are they planning to continue the pilot and grow it? The results seemed to show that it had a strong record of getting people back into work while supporting their health. That is what this House wants to do. Does she agree that that is the case, and is that the funding?
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.