Universal Credit and Personal Independence Payment Bill

Nadia Whittome Excerpts

Committee of the whole House & 3rd reading
Wednesday 9th July 2025 Commons Chamber

[Andy McDonald]

The hon. Member makes an important point, and it is critical that that is reflected on the face of the Bill. With all sincerity, we cannot walk away from here thinking that guidance notes are enough. They may change fundamentally in further iterations and say something completely different from what this honourable and decent Minister is saying to us today. Policy for disabled people must be made with them, not imposed upon them.

If we are serious about ending austerity, we cannot keep balancing the books on the backs of the poorest. That means revisiting not just what we spend, but who we tax and how. We have heard about the party of millionaires making their case that this country has done so well by them—they are so privileged to have made a success of their lives and to have flourished—that they are looking at the opportunities they were given and saying, “Please, we can make a further contribution.” It is they who made the argument about a wealth tax that would raise £24 billion. Nigel Lawson, when he was Chancellor, thought that the differential between capital gains tax and income tax was an anathema, and he equalised it, so there are opportunities for us there.

The Employment Rights Bill also presents us with wonderful opportunities. If we could grasp the issue of “single status of worker” and deal with the issue of bogus self-employment, limb (b) employment, zero-hours contracts and the rest of it, that not only represents secure, well-paid, unionised work for people to give them a flourishing life; it also gives us the opportunity to collect currently uncollected tax and national insurance, to the tune of £10 billion per annum. That would also mean supporting people according to their needs. That is not Marx, but the Acts of the Apostles.

This is a moment of reckoning. The country expects better. If we are to lose our nerve now, we will lose more than a vote: we will lose the trust that brought us here. We must reflect that during our discussions about the Bill, each and every one of us has heard the response from our constituents and our offices that this has been a shambles—there is no other word to describe it. Now is the moment to stop the cuts and I implore the Government to rethink the Bill.

[Nadia Whittome (Nottingham East) (Lab)]

I rise to support my new clause 10, as well as a number of other amendments tabled by my right hon. and hon. Friends, including new clause 8, new clause 11 and amendment 38.

I welcome the concessions that the Government have made to the Bill, which I will be supporting. I pay tribute to the disabled and chronically ill people whose tireless campaigning led to those concessions—I have been proud to stand with them. However, the changes do not alleviate all my concerns about the Bill. One in three disabled people are already in poverty. The Bill, even after the Government’s amendments, would take around £3,000 a year from the disabled people of the future, at a time when the extra cost of being disabled is set to rise by 12% in the next five years.

The Government’s analysis states that the measures in the Bill will lift 50,000 people out of poverty. However, analysis from the Joseph Rowntree Foundation and the New Economics Foundation shows that they would actually push 50,000 disabled people into poverty. We know that benefit cuts and loss of payments help to trap women experiencing domestic abuse, make children grow up in poverty and even cost lives, like that of my constituent Philippa Day, who died from a deliberate overdose after her benefits were wrongly cut.

This is particularly pertinent to those with fluctuating conditions, who risk losing LCWRA status during periods of temporary improvement. That is why amendment 38 is so vital, as it would ensure that they are protected. Even with the Government’s concessions, not a single disabled people’s organisation supports this Bill. It is at the request of the disabled people’s organisations forum in England that I have tabled new clause 10, which would require the Government to publish a human rights memorandum before the Bill can be enacted.

No analysis of the impact of the Bill on the human rights of disabled people has been published so far. Last year, the UN found that there had been further regression in the “grave and systemic violations” of disabled people’s rights in the UK, which it reported on in 2016. Last night, the UN wrote to the Government to say that it had “received credible information” indicating that the Bill will “deepen” that regression. We should not proceed with the Bill as it stands.

Disabled people’s organisations remain sceptical about the Timms review into PIP. I am hopeful that the Government will support the amendment tabled by my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball), which would make provision for commitments around co-production and oversight. They must also support new clause 8, which would ensure that changes from the Timms review are introduced as primary legislation. That is essential in ensuring democratic scrutiny—otherwise, MPs will not be able to amend or vote on the legislation. It would also prevent a reduction in eligibility for PIP, which we know would be disastrous and which motivated so many of us on the Government Benches to call on the Government to think again.

I joined the Labour party because of what I experienced and witnessed growing up as a child and a teenager under the Conservatives. As a disabled MP, I have first-hand experience of the disability benefits system. We have all met constituents who are already not getting the support they need. The question today is this: do we let their number grow? If the answer is no, I urge Members to support the amendments that would strengthen protections for disabled people and, ultimately, to vote down this Bill.

[Neil Duncan-Jordan (Poole) (Lab)]

I rise to call for the removal of clauses 2 and 3 from the Bill, because I think they get to the heart of the unfairness contained within it.

There can be no doubt for those of us who were here last week that trust was eroded between the Government and disabled people’s organisations—that trust will need to be slowly rebuilt over the coming months. We should therefore recognise that a positive step in that direction is the Government’s decision to pause on the issue of PIP reform and to place those decisions in the hands of the Timms review. However, that is not enough, because the Bill still contains a proposal to cut £2 billion from the universal credit health element for more than 750,000 future claimants.

From next April, we will have created a two-tier benefits system based not on health needs, but on the date when a claim was made. In fact, there are already nearly 4.8 million disabled people living in poverty today across the country. That is a damning indictment of our welfare system and should be a wake-up call to bring that number down, not to make it go even higher.

The numbers are stark. Taking £3,000 a year, or £250 a month, from disabled people’s income will force families to a crisis point and into further reliance on food banks. The Joseph Rowntree Foundation claims that if the cuts are not removed, an additional 50,000 people will be forced into poverty. Even before this cut, three quarters of all universal credit health element recipients are already experiencing material deprivation and are unable to afford the essentials on which to live. If we are serious about genuinely reforming the benefits system and putting disabled people and their organisations at the heart of any changes, I cannot see why the health element of universal credit would not also be part of the Timms review.

--- Later in debate ---

[Danny Kruger]

The fact is, in our time in government we increased the number of disabled people in work significantly. Two million more disabled people were in work at the end of our time in government than before. There is much to regret about the last years of our time in government, and I was a critic of them myself, but on welfare throughout our time in government we have a proud record of improving the broken system that we inherited.

We are now a year into Labour’s time in government. They have had all this time to come up with a plan and we have absolutely nothing. Clause 5 did have some changes to the system, but they are going to scrap that today. I want to pay tribute to the rebels on the Labour Benches for finding their voice and showing what Parliament can do, and I particularly pay tribute to the hon. Member for York Central (Rachael Maskell)—the real Prime Minister sitting there on the real Front Bench. I respect and honour them all.

As for the Government Front Bench, they are chopping the Bill’s title in half. It is now nothing to do with PIP, so we have no reform to welfare and certainly no savings. This is now a spending Bill, not a savings Bill. Looking at the impact assessment that has just been published—the third in the last three weeks, I think—if we add up the savings from cutting UC health for new claims, which is a little over £5 billion, and minus the cost of raising the standard allowance, which is a little over £5 billion, we get £120 million of extra costs over the next four years, plus the £1 billion of extra employment support. Labour’s idea of saving money on welfare is to spend more by the end of the Bill’s passage. The Government have also spent the money that they thought they were saving from the PIP changes before they did the U-turn. Even now they are on a wing and a prayer financially.

The Office for Budget Responsibility, on which the tottering Chancellor has relied to hold up her sums, assumes that the on-flow to benefits will fall halfway back to their 2019 levels over this Parliament. If they do not, the Chancellor will have to find another £12 billion. Why should new claims reduce under this Government when there is still an incentive of £50 a week to get on to UC health, and there is no reform to PIP for at least another year? The Minister has also said that his famous eponymous review is not aimed at saving money anyway. The hon. Member for Aberdeen North (Kirsty Blackman) challenged him earlier to confirm that, and I think he has confirmed from the Dispatch Box that there will be no savings from his review.

Meanwhile, the UK is haemorrhaging jobs thanks to the national insurance rise, and we have the Employment Rights Bill coming down the track. The OBR did not even include in its forecast the likely impact of the unemployment Bill that Labour is introducing. That is something we can look forward to in the autumn.

We are in a deep fiscal hole, and of course we need welfare reform—in fact, we need welfare cuts. That is why the Opposition wanted to support the Government when they set out their intentions, and we said that we would support the Bill if they reduced spending, got more people into work and pledged that there would be no new taxes, but they did none of that, so we do not support it. We do, however, have a further set of proposals.

My friend, the hon. Member for Hendon (David Pinto-Duschinsky), challenged me to come up with some alternatives, and we have some amendments to that very effect. First, amendment 45 would improve the quality of assessments. There is a bigger piece of work to be done, and I welcome the Government looking closely at the assessments process, but right now we could make one clear and simple improvement. In 2019, 84% of PIP assessments were conducted face to face; last year, the figure was 5%. That was a covid change—[Interruption.] That was absolutely a covid change that was not changed back in time; I totally agree. The fact is, the work-from-home culture really took off at the DWP and with its subcontractors, and that does need to change. I recognise that. Why are the Government not doing that?

As a result, in the system we have, which is not being changed by the Bill, people are at the mercy of some distant, faceless assessor on the end of the phone. Of course, there will be people who cannot manage a face-to-face assessment, and we would authorise the Secretary of State to specify circumstances for that. It is also right not to call people back for repeat assessments. That was a change that the Conservatives were introducing, and I am glad that the Government are sticking with it. But, for the great majority of cases, we have got to get back to face-to-face assessments for the sake of claimants as well as the taxpayer.

Secondly, I turn to amendment 50. We have 1,000 new PIP claims a day—that has doubled since covid—and more than half the increase is in mental health cases. For UC health claims, it is more like three quarters. Of course, distress is real in our society and it is rising—I do not disparage the reality of many of these claims—but as the Minister has said the incidence of disability in our society is rising by 17% while benefit claims are rising by 34%. For some of the less severe mental health claims, it is far worse. In January 2020, there were 7,000 claims for people with anxiety disorders; this year, there are 31,000. In January 2020, there were 155,000 claims for anxiety and depressive disorders mixed; now there are 365,000. Autism was 60,000 and has gone up to 183,000. The hon. Member for Sheffield Hallam (Olivia Blake) mentioned ADHD, which has gone up from 29,000 to 115,000 over the last five years.

[Nadia Whittome]

I wonder whether the shadow Minister realises that according to the DWP’s own statistics the PIP fraud rate is 0.2%. I do not want him to feel like a mug.

[Danny Kruger]

I am not talking about explicit fraud. These awards are being given, and no doubt the assessment is judging them to be eligible. There is not necessarily a deliberate attempt to defraud the system. What we have done is create a system whereby one is incentivised to seek higher and more expensive claims.