Universal Credit and Personal Independence Payment Bill

Meg Hillier Excerpts

2nd reading
Tuesday 1st July 2025 Commons Chamber

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

This is, as has oft been reported this week, the first anniversary of a Labour Government— and have I not been waiting for that for a very long time? It is also the 10th anniversary of the start of my time chairing two Select Committees, first looking in detail at public spending and, for the last year, looking at the Treasury—and what a privilege that has been. I therefore cannot stand here and claim that I did not know that the Labour Government would be inheriting a very difficult financial situation.

Although this matter is not just about money, and should not just be about money, it is a tragedy that too many young people in particular are being pushed into disability benefits. It is a sign of what the Public Accounts Committee would call “cost shunting”— failures in parts of the public sector, where money has been taken away, have seen people pushed into other areas where they could claim the money. Too often, these people are being written off, and I have too many of them in my constituency. I can see the face of one mother who came to my surgery. She was distraught that her two young sons, one of whom is in his early 20s, were in a terrible state and had never been able to work.

A week is a long time in politics, as has famously been said. One week ago, this Bill meant that more than 300,000 people currently receiving personal independence payments were fearful that they would lose them through reassessment. But things have changed since then—I pay tribute to many hon. Friends for that, particularly to many of those who chair Select Committees and to the Government, who have embraced the discussions that we had in good faith. As a result, the Government have agreed to protect existing PIP claimants to make sure that those people are not fearful that they will lose their money and that they can relax and know that they can be secure in their future.

The Government have also ensured that those receiving universal credit and the health top-up are protected in real terms. I pay particular tribute to the Chair of the Work and Pensions Committee, my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), for that proposal.

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

Throughout this process, I have focused primarily on the impact of these changes on people with severe disabilities who are unable to work. Originally, the Bill would have made those people worse off, which was unacceptable to me, but the Government’s changes ensure that their income will be genuinely protected in real terms. Does my hon. Friend agree that that change is vital?

[Dame Meg Hillier]

I completely agree with my hon. Friend. That was one of the biggest concerns that I had with the Bill. It was also why so many hon. Members stood up and said that they did not want this to go ahead on those terms, and the Government listened.

The Government are also introducing important employment support. That presents a huge opportunity for our local councils and for others that provide that support. I am talking about not just the DWP, but charities that specialise in working with people. I have an example of such work. DWP staff in Hackney have worked with a woman, a victim of domestic violence, who at the age of 49 found herself homeless. They helped her into a flat. She was a parent of three and had not worked since she was 16. They found her work, and after a few weeks she came back to them and said, “I like this 10 hours of work a week. I want more.” Intensively done, these efforts can work. It takes time, which is one reason that we needed to protect current PIP claimants.

The co-production of the Timms review is a groundbreaking change. If the DWP adopts that, does it well and makes it the blueprint for the future, it will put disabled people in the driving seat in shaping benefits, not just now but in the future. That is long overdue and it is one of the biggest changes that came out of the discussions in recent weeks.

We all know that work is a noble endeavour. I will not repeat what others have said about that, but it is good for people and people want to work. Many disabled people in my constituency, and up and down the country, are not supported into work. Whether they are receiving PIP or they become well enough to work and do not need PIP, the dignity of work should be open to all. Too many disabled people are excluded from the workplace, so work support is critical to them.

I welcome the work of the Mayfield review. At a roundtable last week, I met employers and people who are putting people into work, who praised the early findings of the Mayfield review—one of the people there had been involved in it. It is demonstrably good value for employers to support people to stay in work because they keep that experience and knowledge.

I also welcome the right to try and all the other payments and support set out in the Bill. We need to reform the welfare system because it is letting too many people down: too many people moulder on benefits and never have the chance to get off them.

[Barry Gardiner (Brent West) (Lab)]

I pay tribute to my hon. Friend for the work that she has put into the changes that have been made to the Bill. She spoke of cost shunting—the way that cuts in one area have forced people to claim in other areas, and those costs have risen. Does she not therefore think that it is important that the Government address those areas where the cuts have been made that forced people out, before we reduce the support for the new claimants that will be coming in?

[Dame Meg Hillier]

My hon. Friend raises an important point. Cost shunting can work both ways, so it is vital that the Timms review examines that. If this Government are serious about mission-led government and working across Departments, it is crucial that the Department of Health and Social Care and others are closely involved.

We all know that government is about hard choices—no one said that to govern is easy. However, I say to the Government that it is about not just what they do but how they do it. I trust that over the past week the Government have really learned that. I am blown away by the talent of Members of the House, particularly new colleagues I have met since 2024. There are people sitting on the Benches on both sides of the House who have huge talent and experience. We are not just message replicators or voting fodder—there is talent, knowledge and expertise in this House that the Government would do well to harness. It is easy to get into a bunker mentality and feel like government is hard—I have been a Government Minister; there is lots to do and there is never a minute to oneself—but listening and engaging is vital and makes for better policy.

The privilege of this place is that every centimetre of the United Kingdom is represented by a Member of Parliament, so we have reach, which is a valuable tool for anybody who takes policymaking seriously. Parliament has a vital role and the Government need to engage better with Members of this House, particularly those who work on the Committee corridor. I pay tribute to my fellow Committee Chairs. We have a constitutional role to play to challenge and cajole Government, but we also have a role to inform and shape policy.

We live in a world where we see leadership in some prominent countries by people with whom we do not have the same values. The world is being taken in a direction that I do not want to see, and that is a risk in this country. Under the last Government, we saw how division rent the party now in opposition asunder. I have spent more than half of my 31 years in elected office under Governments led by the Conservatives—that is miserable, frankly, because it means that we did not have the power to shape things in the way that we do when we are in power.

[Mr Adnan Hussain (Blackburn) (Ind)]

The hon. Member talks about the previous Government. Does she agree that politics is about choices? This Government too have chosen cruelty: they came for the elderly, then the children and now the sick and disabled. Who is next?

[Dame Meg Hillier]

I am absolutely clear that government is about choices. When a party is in government, it has to make choices to run the country. Some 14 of my 20 years in this place have been served when other parties have been in government, and I have seen Conservative Prime Ministers pass through a revolving door, but I would always rather see a Labour Government. Divided parties do not hold power or government. If we want to see our values played out in this country, we need to vote for the Bill today.

There is still a lot to do, a lot of discussion to be had and the Timms review to take place, but major changes were made last week that have significantly altered the Bill in a short space of time. We should bank that and continue to fight, with the passion that hon. Members have demonstrated today, for the rights of disabled people and all of those who want a job, whether they are disabled or not, and need support to get into work.