Universal Credit and Personal Independence Payment Bill

Siân Berry Excerpts

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

[Siân Berry (Brighton Pavilion) (Green)]

I beg to move amendment 39, page 1, line 21, leave out subsection (4) and insert—

“(4) The relevant uplift percentage for tax years 2026-27 to 2029-30 is 4.8%.”

This amendment would apply the full standard allowance uplift percentage currently specified in clause 1 of the Bill for 2029-30 to all preceding years 2026-27 to 2028-29 as well.

[The First Deputy Chairman]

With this it will be convenient to discuss the following:

Government amendment 1.

Amendment 41, page 2, line 29, at end insert—

“(8) This section, so far as it relates to tax years up to and including 2027-28, comes into force on the day on which this Act is passed.

(9) This section, so far as it relates to tax year 2028-29, comes into force on such day as the Secretary of State may by regulations made by statutory instrument appoint.

(10) Regulations under subsection (9) may not be made unless, on a date not before 1 October 2027, a draft of the statutory instrument containing them has been laid before and approved by a resolution of the House of Commons.

(11) This section, so far as it relates to tax year 2029-30, comes into force on such day as the Secretary of State may by regulations made by statutory instrument appoint.

(12) Regulations under subsection (11) may not be made unless, on a date not before 1 October 2028, a draft of the statutory instrument containing them has been laid before and approved by a resolution of the House of Commons.”

This amendment provides for separate decisions by the House of Commons on the continued effect of Clause 1 for the final two tax years affected.

Amendment 50, page 2, line 29, at end insert—

“(8) This section comes into force when the conditions in section [Commencement requirements relating to welfare reform] have been met.”

This amendment makes the commencement of Clause 1 conditional on the requirements relating to welfare reform set out in NC12.

Clause stand part.

Government amendment 2, in clause 2, page 2, line 31, leave out subsection (1) and insert—

“(1) In the table in regulation 36 of the Universal Credit Regulations 2013 (amounts of elements)—

(a) before the row showing the amount for limited capability for work and work-related activity (“the existing row”) insert—

--- Later in debate ---

Government amendment 11.

[Siân Berry]

When one in five people receiving universal credit and disability benefits has used a food bank in the last month, and when Scope has found that the disability price tag is £1,095 per month, here in Parliament we must do better than this Bill before us today. When the “Pathways to Work” Green Paper has terrified so many of our constituents, and when the basic rate of universal credit cannot cover the basic essentials, here in Parliament we must do better than this Bill before us today. When the ultra-rich are orders of magnitude away from the tough choices disabled people face, and when we have such a deeply unequal society, and a wealth tax would break no manifesto commitments, here in Parliament we must do better than this Bill before us today.

From the Green Paper to where we are now, the Government’s behaviour has been an insult to disabled people, and I think they should be ashamed and should apologise. My constituents who receive benefits, and the people who love and care for them, have been subjected to chaos, confusion and indignity. Instead of making improvements, with careful consideration, to a complex and treacherous benefits system, the Government have rushed to fit the imperatives of the Budget timetable, bypassing evidence gathering and line-by-line scrutiny in a Committee of this House, and further limiting the power of the other place by making this a money Bill.

Yes, a tremendous effort of people power and bravery from Labour Members has won last-minute concessions for current claimants, but the Government should still scrap this unfair and harmful legislation, due to the harm that it will do to people who find themselves in need of support in future. This Bill is not a tough decision; it is the wrong decision. Here in Parliament we must do better than this Bill before us today.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for the proposals that she is bringing forward. This is the crux of the Bill. Does she accept that the reason why people get more money when they qualify for the health element of universal credit is that their illness means more expenditure—a certain diet, the need for a warmer home, and so on? Does she accept that halving it to £217 a month will detrimentally affect the most vulnerable people—the very people she says we should be trying to help?

[Siân Berry]

I thank the hon. Member for giving those examples of the vital things that additional payments are used for. They are so necessary, and it is so necessary not to cut them.

My amendment 39 affects clause 1, the only at all positive clause in the Bill as it stands. The clause uplifts the rate of increase in the standard allowance of universal credit beyond inflation—by 2.3% in the year starting April 2026, rising to 4.8% for 2029. My amendment simply sets the uplift percentage at 4.8% for the whole period. This sustained rise in the basic rate of universal credit is much needed. Setting out the case for an essentials guarantee, the Trussell Trust and the Joseph Rowntree Foundation state:

“The basic rate of Universal Credit should at least cover the cost of essentials like food, household bills and travel, but it is not currently set according to any objective assessment of what people need.”

Amendment 39 goes some way towards ensuring that, and the joint briefing to MPs from 20 charities, service providers and disabled people’s groups highlights this need in its recommendations.

I realise that the question on many people’s minds is, “How can the country pay for this boost to universal credit and the removal of cuts to the personal independence payment?” The answer lies with the Chancellor and something that my Green colleagues and I have called for many times, especially on this issue, ever since the Secretary of State introduced the Green Paper. On that day, 18 March, I asked

“why impoverishing”

disabled people

“to the tune of £5 billion is a higher priority than a simple wealth tax.”—[Official Report, 18 March 2025; Vol. 764, c. 181.]

The hon. Members for Eltham and Chislehurst (Clive Efford), for Liverpool Riverside (Kim Johnson) and for Liverpool West Derby (Ian Byrne) also spoke up for such a tax on the same day. Many hon. Members have asked the same question in the House, and it is not just MPs making this suggestion. It is not just charities such as Oxfam and the Equality Trust, not just campaigners such as Tax Justice UK and Green New Deal Rising, and not just Patriotic Millionaires UK, which says that its polling shows that 85% of people who have more than £10 million would happily pay 2% of their wealth to support a better society and public services. Two former leaders of the Labour party are also now talking about it as a serious option.

There are, I should say, other ways to tax unearned wealth, as part of a wider package, than the way set out in this simple proposal, which is making unlikely allies of Greens, millionaires and Labour leaders. I think the view of this House is clear: when fairer taxes on assets, which absolutely can work and should work for the nation, are finally put into the Budget, first to go should be the cuts target set out in the Department for Work and Pensions spreadsheet, and the two-child benefit cap. It is through such a tax that we should pay for the improvements needed to the Bill.

[Ian Lavery (Blyth and Ashington) (Lab)]

I am a great believer in a wealth tax, rather than taking money from disabled people—simple as, bottom line. What would a wealth tax look like, as far as the Green party is concerned?

[Siân Berry]

I thank the hon. Member for that question. I refer him to Patriotic Millionaires UK. It has done considerable work on this issue, with its considerable resources, and set out proposals for a 2% wealth tax on people who have more than £10 million in wealth. It polled the general public on that, and found that 75% of them hugely supported the measure, not just as an alternative to cuts to welfare, but as a general principle.

Clause 1 would be made into a genuinely good policy by amendment 39, but that change alone will not make this a Bill that the House should pass. Removing clause 5, as Government amendment 4 proposes, will not be enough, either, to make this a Bill that this House should pass. Clause 2, even once amended by the Government, would cut in half the health element of universal credit for nine in 10 new claimants. I will speak later about the severe conditions criteria and fluctuating conditions. Without amendment 2(a), tabled by the hon. Member for Leeds East (Richard Burgon), clause 2 should be removed from the Bill. Clause 3 would freeze the health elements of universal credit for the rest of this Parliament, so clause 3 should also be removed from the Bill. Subsections (2) and (3) of clause 4 would freeze legacy benefits for disabled people, so they should be removed from the Bill, as my amendment 40 proposes.

A Bill that just consists of a much-improved clause 1 and possibly a much-improved clause 2 would almost be a Bill that this House could, in conscience, pass. We have the choice to craft such a Bill today. As well as those changes, amendments such as amendment 12, tabled by the hon. Member for Torbay (Steve Darling), are needed, and there are some new clauses that would help make the Bill even more fit for purpose.

The vital principle we must stand up for today is that any policy changes relating to disabled people must be led by disabled people. On the day the Green Paper was published, I raised the matter of co-production with the Secretary of State. That word has been much talked about by many others with experience of co-producing policy, and by the Government, thanks to strong campaigners and pressure from MPs.

[Robin Swann (South Antrim) (UUP)]

I fully agree with the hon. Member on co-production and co-designing any changes that come forward. Does she agree that it is crucial that young people are also included, given the conditions that they can face, and especially given the challenge in moving from children’s disability living allowance to the personal independence payment, which the Minister has still not addressed?

[Siân Berry]

I thank the hon. Member greatly for that intervention. When I have gathered together young people in my constituency, I have found that the issues that they face are unique, and their voices absolutely must be heard.

The Government have said that they are committed to co-producing the Timms review with disabled people and disabled people’s organisations, but organisations such as Disability Rights UK have told us that those promises are hard to trust. They fear a tick-box exercise, co-production in name only, and that the Government’s original plans will be the inevitable result. That is why I have signed up to new clause 8, tabled by the right hon. Member for Hayes and Harlington (John McDonnell), as well as new clause 11, tabled by the hon. Member for Penistone and Stocksbridge (Dr Tidball).

If clause 2 and its schedule remain, the severe conditions criteria simply cannot stand as written. It appears that the Government either meant to exclude people with fluctuating lifelong conditions such as Parkinson’s or multiple sclerosis from the higher rate of the universal credit health element, or that Ministers completely overlooked that community when rushing all this through. Criteria that withdraw support from people with fluctuating conditions are unacceptable, and that is why I signed amendment 38 tabled by the hon. Member for York Central (Rachael Maskell), and amendment 17 tabled by the hon. Member for Dunfermline and Dollar (Graeme Downie). The severe conditions criteria also say that any diagnosis must be made in the NHS. Again, that is either careless drafting or a deliberate restriction, so I have also signed amendment 33 from the hon. Member for Aberdeen North (Kirsty Blackman).

I am trying to bring to this House the voices of disabled people in Brighton Pavilion and across the nation who are closely watching what we do today. So many of our constituents remain scared by the Bill. Right from the day of the sudden and careless release of the Green Paper, which contained terrifying policy details that were not in the Labour manifesto, they have been forced into a cruel limbo. It is shameful that the Government have chosen this path. This Labour Government are showing themselves far more willing to punish disabled people than ask the most wealthy to shoulder the burden of fair public spending on real social security.

I am so proud of the people power that has been brought to bear on the Bill. Action by disabled people and their allies has forced MPs to listen and take action, and forced the Government to withdraw the most brutal cuts, but still the Bill remains unacceptable without the serious amendments that I have outlined. I look forward to hearing much sense, including what the United Nations has told us, from the many hon. Members in this debate who share my values. My Green colleagues and I are ready to do all in our power to minimise the consequences of the Bill; to make it do good, not harm; and ultimately, if that does not happen, to see it fall. I hope the Government will truly learn from the cruel mess that this has become.

[The First Deputy Chairman of Ways and Means (Judith Cummins)]

I call the Chair of the Select Committee.