Universal Credit and Personal Independence Payment Bill

Olivia Blake Excerpts

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

[Zarah Sultana]

Exactly. Those are among the concerns about the requirement for an NHS diagnosis.

Meanwhile, what is the economic justification? Well, there is not one. As a share of GDP, working-age benefits have not risen since 2015. Other countries, such as France, New Zealand and Australia, invest more in their disabled citizens. We have alternatives—for example, we could have a 2% tax on extreme wealth. Just 50 families in this country own more wealth than half the UK population. According to YouGov, three quarters of the public support a 2% tax on those with wealth of more than £10 million, yet this Government will not tax the super-rich. Instead, they choose to take from those with arthritis, cancer and chronic pain. They just cannot decide how much suffering to inflict. While they squeeze the most vulnerable, they have found billions for war, and billions to raise defence spending and back endless foreign interventions—money for war, but not the poor.

The truth is this: Westminster is broken, but the real crisis is deeper. This Government are not only out of touch but morally bankrupt. They work for billionaires and big business, while turning their back on disabled people. They hold their summer receptions at Mastercard headquarters, while disabled people are pushed to food banks. They impoverish the sick and elderly to satisfy spreadsheets, and then dare to speak of “tough choices.” But the public sees through this: 81% of voters believe that disabled people should receive support for basic living costs. That is not a niche opinion; that is mainstream Britain. Disabled organisations, from Disabled People Against Cuts to Disability Rights UK, are united in their opposition to clause 2, because if this cut is passed, the consequences will be felt everywhere, especially in our constituency surgeries. The emails, the letters, the desperation, the suffering—all of it is avoidable.

I voted to protect winter fuel payments, and I would do it again. I voted to scrap the two-child benefit cap, and I would do it again. I will vote against these cuts tonight, because this is not just about benefits; it is about the country we want to be. Do we want to be a country that protects the vulnerable, or punishes them? I know which side I stand on, and I know that I speak for millions across this country when I say that we are not going to take this any more. The two-party stitch-up is finished. There is an alternative, and we will be offering it.

[Olivia Blake (Sheffield Hallam) (Lab)]

I begin by saying how much I respect the sincerity of colleagues who believe that the Bill will help address some of the difficult challenges that our country faces. I know many in this House are motivated by a genuine desire to improve lives and ensure that our welfare system is fair, sustainable and fit for purpose, but I have to say, with the deepest respect and regret, that on this occasion, I think we have got this wrong. Yes, the Labour Government have inherited a broken system on multiple fronts and, yes, we need reform, but we must be clear that reform cannot mean pushing disabled people further into poverty. It cannot mean referring to cuts as modernisation. Poverty has a price tag, and the cost-shunting that will be involved in these cuts will be plain to see in years to come and must be taken into consideration.

I support amendment 37 in the name of my hon. Friend the Member for Stourbridge (Cat Eccles), which highlights the lack of value for money in the contracts for assessment. There are so many successful reassessments and appeals; it is clear that we are not getting value for money from these contracts, and that this is an expensive and ineffective model that Ministers should look at, if they are looking for savings. There are better ways forward, and that is reflected in many of the amendments that I am supporting.

New clause 8, tabled by my right hon. Friend the Member for Hayes and Harlington (John McDonnell), would ensure that any changes to PIP must be brought forward in primary legislation. I strongly agree with that. Given the lack of time we have had to debate and give proper scrutiny to what is before us today, we should slow things down until the recommendations are brought back to us, so that we can have good-quality debate, and put better regulation and safeguards in place to prevent changes that would worsen eligibility for those who are already struggling or at risk of poverty.

New clause 11 tabled by my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball) calls for any review of PIP to be grounded in the principles of the UN convention on the rights of persons with disabilities. In a sense, I am disappointed that such a clause might be needed, but it points to the fact that we need more transparency, independent oversight and, crucially, co-production with disabled people. There can be nothing about us without us, and I hope the Government are listening on that new clause.

Amendment 38, tabled by my hon. Friend the Member for York Central (Rachael Maskell), acknowledges the fluctuating nature of some medical conditions that can be unpredictable and debilitating. The amendment would ensure that people with those conditions are not left vulnerable, and that the process is responsive and serves its purpose of being a safety blanket to those who need it most. Countless organisations have reached out to me and many others to raise concerns. People with conditions including multiple sclerosis, Huntingdon’s, cancer and schizophrenia are concerned about how the changes will impact on them. Their voices must be heard in this place. The amendments do not block reform; I think they strengthen it. They will ensure that the Bill is evidence-led and rooted in fairness.

New clause 12 seeks to prevent people with indefinite leave to remain, refugees and victims of trafficking from accessing PIP and elements of universal credit. Although it is not a shock that the Opposition will use any debate as an excuse to have a game of migrant-bashing, I am disappointed that those ideas have made their way into this proposal. What they will not tell the public is that most migrants in the UK are already excluded from accessing PIP and universal credit because they have no recourse to public funds. That restriction acts as a blanket ban on access to the social security system for 3.6 million migrants. Is it really acceptable to deny access to PIP or other social security to those who have spent years living and working in the UK—paying taxes and astronomical visa fees, and finally securing indefinite leave to remain—based on their nationality rather than on their disability? The new clause threatens the fundamental principle of our immigration system—that those granted indefinite leave to remain should have access to many of the same rights as British citizens.

There are better choices we can make, and better ways to find the money that we are told we need to find. We can scrap the outdated marriage tax allowance, a gimmick of the Cameron Government that still costs us £590 million a year. We can close unjustifiable tax loopholes, such as the carried interest loophole used by private equity bosses, which would raise half a billion pounds. We can apply national insurance to investment income, raising over £10 billion. A modest 2% adjustment to the £207 billion handed out in non-structural annual tax reliefs would raise £4 billion alone each and every year.

Let us talk about those reliefs. There are roughly 1,180 tax reliefs in the UK. His Majesty’s Revenue and Customs has no idea what benefit 815 of them bring to the public. This is about choices—we hear all the time about “tough choices”—so why are we not choosing not to properly examine that £200 billion of public spending while we tighten support for disabled people, who are just trying to live? We can and should reform the system.

[Imran Hussain]

As ever, my hon. Friend is making a passionate case. Does she agree that, for many of us, our principled objection to the Bill remains? It will still balance the books on the backs of the most vulnerable; it will still bring poverty to our streets. Will she join me in my plea for the Bill to be withdrawn, which is the best option for the Government?

[Olivia Blake]

I agree. That is my plea to the Treasury Benchers: There is still time to withdraw the Bill and come back with something better.

These issues should be tackled head-on. It is unjust that, because of the way we have built society, each and every disabled person faces £1,000 in extra costs on average per month. None of that is optional spending; it is the unavoidable price of navigating a society that was not designed with disabled people in mind. There is a whole host of reasons for that spending; they are the non-negotiable realities of having a disability. Disabled people know better than anyone the barriers that keep us from work and what would help, so listen to us.

[Graham Stuart]

A non-negotiable reality is that we have must economic growth to fulfil the Government’s priorities, be it looking after the poor or the disabled, or any other priority. Yet under this Government, inflation has nearly doubled, and their unemployment Bill, jobs tax and other measures have brought the economy to a halt. Can Labour Members not understand that if they do not prioritise private enterprise and economic growth, they will never be able to serve the most vulnerable, who depend on that growth the most?

[Olivia Blake]

I thank the right hon. Gentleman for interrupting at that point, because I have two suggestions that I think would be good for growth. The first is to ask the British Investment Bank to support disabled people in setting up their own business, as it does women and those setting up a minority-led business. I know many ADHDers who would make great entrepreneurs. Unfortunately, sometimes they end up going down the path of criminality. We should consider how we can ensure that their innovation is enhanced and used properly.

The second suggestion is that we make our economy much more inclusive. There could be a national insurance contribution discount for taking on someone with a disability, who may be in receipt of PIP and may have been out of work for more than six months. I am sure that, through a more inclusive society, we can encourage growth, not discourage it.

I have taken up far too much time, so I will end with this. Disabled people know what is best for us. We should be investing in people’s independence, not leaving them on the sidelines or pushing them into poverty. That is a matter of justice, but in the end, it saves money as well. More than that, it gives people the dignity and freedom to live well. That, surely, should be our purpose.

--- Later in debate ---

[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.

[Olivia Blake]

rose—

[Danny Kruger]

I am happy to give way.

[The Chairman of Ways and Means (Ms Nusrat Ghani)]

Order. Before the hon. Member makes her intervention, will colleagues make sure that their language is parliamentary and respectful?

[Olivia Blake]

I want to pull up the shadow Minister on the ADHD statistics. Will he recognise that women were not recognised as having ADHD for many years and thus there is a backlog of women now accessing their right to benefits relating to ADHD? Many women like me were misdiagnosed with depression and anxiety disorders instead of ADHD.

[Danny Kruger]

I am sure that the hon. Lady is right. Those disorders have also increased extraordinarily in recent years. I take her point, and I was struck by the point she made in her speech about how many people with ADHD would benefit from being in the workplace. They could be in work, and they need to be supported for that. It is not right that we are consigning so many people to a life on the sofa with the curtains drawn, being told that they have no value and no contribution to make and will receive no help. Last year, 4,000 more people got PIP because of dyslexia, which was twice the number before covid. It was 10,000 for OCD; again, that number has doubled.

I want to acknowledge that the charity Mind—of course, it wants to increase benefits, so I do not cite it in support of our amendments—has said that what people with mental health conditions need is decent mental health support, proper employment programmes and flexible workplaces. That is what is needed.

Let me finish with new clause 12. The other place where we can look for real savings is with foreign nationals claiming health and disability benefits. I am aware that many visas have no recourse to public funds, but people with indefinite leave to remain do. Some 800,000 people are likely to claim indefinite leave to remain in the course of this Parliament. We do not have enough data from the DWP, so I urge the Government to have more transparency about the information that is received. However, on the basis of the information we have, we believe that some hundreds of thousands of people in this country who are claiming PIP and UC health are foreign nationals—that does not include EU citizens, who have rights under the withdrawal agreement. Welfare is simply not part of the contract that we make with people who come to this country. They are given visas on the basis that they will support themselves and our amendment would make that principle real.

Every pound spent on benefits for someone who could be supported into work is a pound less for someone else who cannot or can never work and who deserves all our sympathy and support. We cannot wait another year for this dithering, hamstrung Government to come forward with the changes we need. Our amendments offer a path to a better system that is fair for claimants and fair for taxpayers, and I commend them to the Committee.