(1 month ago)
General Committees
Rebecca Smith (South West Devon) (Con)
I beg to move,
That the Committee has considered the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Decisions and Appeals) (Amendment) Regulations 2026 (S.I., 2026, No. 457).
It is a privilege to serve under your chairmanship, Mrs Hobhouse. I appreciate that it is incredibly warm in here, but bear with me, because this is an important debate. I want to sound the alarm about the statutory instrument: it hands the Government sweeping discretionary powers, with too few safeguards and too little scrutiny, by allowing the Secretary of State for Work and Pensions to extend the length of fixed-term personal independent payments.
The measure is intended to tackle the backlog of award reviews following covid-19, but we believe it takes us backwards, not forwards. Under the previous approach, people’s awards were regularly reviewed to ensure that they received support that reflected their actual circumstances, yet under the new approach, most claimants will get only two checks in 10 years—one review period will last four years, with subsequent reviews lasting six years. That is just not good enough. Taxpayers deserve confidence that support is being targeted correctly. Previously, 77% of PIP awards were for up to two years, according to the Department for Work and Pensions, so many people will experience substantial extensions to their review periods.
We must acknowledge the serious problems with PIP caseloads, which shot up after covid. At best, however, this secondary legislation is a blunt tool to fix a difficult situation; at worst, it grants the Secretary of State discretionary powers that are wide open to future misuse. It moves us away from proper oversight towards a system where awards can continue for ever longer periods without appropriate checks—in simple terms, more benefits, less scrutiny.
The Government’s answer to that objection appears to be little more than a reminder letter. If reviews are pushed further apart, Ministers will rely more heavily on claimants to self-report changes in their circumstances, but given the longer timeframes, will people have a genuine incentive to report changes that could lead to their award being reduced or withdrawn? It is easy to loosen the system, but far harder to tighten it. Once rules have been relaxed, people adjust their expectations—the horse has bolted.
One day, the backlog may be cleared—we hope—and the Department may seek to increase the frequency of reviews again, but if that happens, I worry that claimants will quite understandably resent the return of more frequent checks. There has been no public consultation on this secondary legislation, because it is supposedly a mere administrative tweak to support the delivery of PIP. Labour is in effect using this opportunity to extend assessment periods by the back door.
Responsible welfare reform means building a system that works as best it can for those who need it most. For many, PIP is a lifeline; it helps them to live independently, to stay connected and, for some, to remain in work. In many cases, people with the most severe and lifelong disabilities already receive longer awards, where appropriate—the system already contains that provision.
To maintain confidence in the system, PIP and other welfare entitlements must be accurate and fair. People’s health situations change, circumstances evolve and some conditions naturally worsen, but others improve. For those with less serious needs, this measure will reduce the opportunities to review whether the support being offered is still appropriate. That is not reform; it is retreat—a retreat to the la-la land of ever more state handouts and ever less oversight.
I know that some will say that regular reviews create anxiety, and I understand that. Of course, no one wants unnecessary stress, but we must remember what reviews are for—they are there not to catch people out, but to ensure that support is going to the right people, at the right level and for the right reasons. In fact, for people who continue to have genuine needs, reviews can provide certainty by extending existing rewards. In cases where someone’s condition has deteriorated, they can also lead to higher levels of support.
We believe that this statutory instrument is merely a symptom of a wider problem. As my hon. Friend the Member for Faversham and Mid Kent (Helen Whately) has said, we are becoming far too quick to sign people on to welfare and far too slow to help them into work. We are seeing a passive and permissive approach from this Government when what this country needs is an active and ambitious one.
Oliver Ryan (Burnley) (Lab/Co-op)
The reassessment changes that we are introducing through this statutory instrument and other measures will save something like £2 billion by the end of the Parliament. I am sure we all agree that would be welcome, given the increasing size of the welfare bill. Why is the hon. Member opposing that saving, and how would she fill the gap instead?
Rebecca Smith
Of course we want to save money, but we do not think that this statutory instrument is the right way to do it. We think that it will just reduce the opportunities for people to have those reviews—the assessments that need to take place. Arguably, more money can perhaps be saved if those reviews happen within a quicker timeframe, because there are many people who, if the right things happen, can be moved off benefits much more quickly than we believe the statutory instrument allows for.
Over 4 million people of working age are now on sickness and incapacity benefits, nearly half a million of whom are under 25. One in four people in the UK now report as disabled. At the same time, the Secretary of State has made it clear that the Timms review of personal independence payment is not designed to deliver welfare savings, something that I find extraordinary. How can that possibly be an effective review if it refuses to tackle the elephant in the room—our ballooning benefits bill?
Real compassion means not abandoning people to a life on benefits. State support must act as a springboard, not a destination. As the official Opposition, we believe in supporting the vulnerable, but we also believe in fairness to taxpayers—fairness to those who get up every morning, go to work and expect the welfare system to be properly managed.
The Government’s own rationale regarding work disincentives is also deeply inconsistent. PIP awards will be extended only for claimants aged 25 and over. The Department argues that unemployment can have “long-term scarring effects” on younger people. Therefore, those whose health has improved should not remain on PIP any longer than necessary. Of course, younger claimants are more likely than older claimants to see improvements in their functional capacity, which helps explain why they are exempt from these longer review periods, but the logic just does not hold up, because unemployment can have scarring effects at any age. If regular reviews are important for younger claimants because circumstances can change, why should that principle suddenly cease to apply when someone reaches 25? Either regular reviews matter or they do not. The Government cannot have it both ways.
Speaking of work incentives, Members are being asked to trust the Government with a significant new power under the statutory instrument, but why should we place that trust in Ministers when they cannot even tell us the scale of the backlog in Access to Work? I have been told by the Department that it does not hold information about average waiting times between the approval of an Access to Work application and when support actually starts, because—so it says—it would require a painstaking manual review of individual records. If the Government cannot easily access that kind of basic data, is it any wonder that they have been so reluctant to grasp the nettle on other areas of welfare reform?