Universal Credit and Personal Independence Payment Bill

Vicky Foxcroft Excerpts

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

[Graham Stuart]

I thank the hon. Gentleman for his contribution. We on the Conservative Benches know that throwing money at a problem without proper safeguards is not leadership, is not generous and is not kind, but is an abrogation of responsibility and economic negligence.

Let me be clear: this Bill in its current form locks in billions of pounds of additional welfare spending year after year. Under the current Chancellor, we have already seen Britain’s debt interest forecast soar and the bond markets become jittery—more than that, they are charging far more than after the mini-Budget to which Labour Members so love to refer. And inflation, of course, has proven stubbornly high. Now we have yet another unfunded spending commitment, with no plan to pay for it except reaching deeper into taxpayers’ pockets. The Chancellor might not say it outright, but families in Beverley and Holderness and across the country know exactly where this ends up—with them paying more.

The Prime Minister can indulge in his favourite hobby of U-turning his way throughout his time in office, but that is not governing in the national interest, which is what he promised to do. It is the latest example of the Prime Minister bending to pressure from the left of his party, which is so well represented on the Government Benches today, desperate as he is to shore up support for a drifting Government who have lost all propulsion.

Instead of fixing the underlying problems in our economy—or fixing the foundations, as has oft been repeated—Labour has chosen the easy political route of higher spending, higher borrowing and, inevitably, higher taxes. Those higher taxes will be imposed not on some mythical class of super-rich people, which the Greens like to propose, but on ordinary men and women who get up in the morning, work hard, look after themselves and recognise personal responsibility as a central tenet of their lives. That also needs to be a central tenet of our political lives.

That is why I have tabled two amendments to the Bill. Amendment 41 would ensure that Parliament retains control over future annual above-inflation increases. It would mean that the House of Commons must explicitly approve continuing those rates beyond 2027-28, protecting against open-ended commitments that we cannot afford. New clause 9 would require the Government to report on fraud and error arising from these provisions.

[Vicky Foxcroft (Lewisham North) (Lab)]

Will the right hon. Member give way?

[Graham Stuart]

Given the scale of welfare fraud that we have seen in recent years—it already costs the taxpayer more than £8 billion—it is only right that we get a proper handle on where taxpayers’ money is actually going.

[Vicky Foxcroft]

rose—

[Hon. Members]

Go on, give way.

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[Dr Tidball]

I rise to speak to new clause 11 and Government amendment 4. This Bill has been transformed since Second Reading. I welcome the Government’s significant changes and hard work. I said that I could not support the measures that remained on the face of the Bill last week that would have pushed 150,000 people into poverty. Nor could I accept proposals for a points system which, under previously proposed descriptors, would exclude eligibility for those who cannot put on their underwear, prosthetic limbs or shoes without support. Towards the end of the Second Reading debate, the Government promised to remove clause 5 on personal independence payments, including the eligibility criteria. I wholeheartedly support Government amendment 4, which achieves that.

I am pleased to hear that the new impact assessment by the Department for Work and Pensions has found that the Bill will now lift 50,000 people out of relative poverty by 2030. This matters, to fulfil the Government’s obligations under the Equality Act 2010 and to meet our commitments to the UN convention on the rights of persons with disabilities. In 2016, under the Conservative Government, when the UN produced its inquiry report on the UK’s treatment of disabled people, it said that the Government at that time had to ensure that any measures of welfare reform should uphold the human rights model of disability and did not disproportionately or adversely affect the rights of disabled people to live independently or to access employment.

[Vicky Foxcroft]

I welcome the amendment, but does my hon. Friend agree that co-production needs to go beyond oversight if we want to build trust and engagement with disabled people and their organisations, and that we need to commit to the principles of co-production as outlined in my speech on Second Reading last week?

[Dr Tidball]

I do indeed agree with my hon. Friend, and I will be getting to those points shortly.

Further, the UN said that the voices of disabled people must be at the front and centre of this work and that the UK must actively consult and engage with disabled people and their organisations and give due consideration to their views in any legislation related to these rights. Therefore, Government amendment 4 is a significant step forward in removing those measures that were not consulted on. It also prevents the risks I highlighted in my speech last week on the previously proposed eligibility criteria, particularly on future recipients.

I am also pleased that the Minister confirmed last week that the legislation on changes to PIP eligibility and descriptors will not happen until the completion of the Timms review. This leads me to new clause 11. I am grateful for this new clause being selected. It is important to have a debate on it as a probing new clause, and above all, I will be seeking reassurances from the Minister at the Dispatch Box that the Government will get the detail of co-production right. I am grateful that the measures in this new clause were co-produced and supported by Disability Rights UK and the Spinal Injuries Association, as well as through discussions with a broader group of disabled people’s organisations and charities.

My new clause 11 sets out key measures to deliver on our excellent manifesto commitment to champion the rights of disabled people and enshrine the principle of working with disabled people to ensure that our views and voices are at the heart of all we do. Further, the measures in the new clause create a strong link between the Timms review and fulfilling our Equality Act public sector equality duty, along with the UK’s commitments to the UN convention on the rights of persons with disabilities, including the principle in article 4.3 of the need to

“consult with and actively involve persons with disabilities”.

Thus, in this context, meaningful co-production with the disability inclusion taskforce as part of the Timms review is essential.

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[Graham Stuart]

rose—

[Vicky Foxcroft]

rose—

[Sir Stephen Timms]

I will not give way for a moment or two.

On Parliament’s handling of the review outcome, which is also raised in new clause 11, I would envisage a ministerial oral statement. I can commit on behalf of the Government that there will then be a general debate on it, in Government time, and that the legislation to implement the review outcome will not be brought forward until that has happened.

[Vicky Foxcroft]

Will the Minister give way?

[Sir Stephen Timms]

Not just at the moment.

Clause 1 introduces the first ever sustained above-inflation rise to the universal credit standard allowance. The previous Government ran universal credit down. They did not uprate it; they froze it, forcing mass dependence on food banks. The increase is accompanied by a reduction, as we debated, in the health top-up for most new claimants, as set out in clause 2.

Clause 3 set out that the health top-up would be frozen until 2029-30 for existing claimants and for those with the most severe lifelong conditions or those near the end of life. The Government amendment means that, for existing claimants, the standard allowance plus the health top-up will rise at least in line with inflation up to 2029-30. That also applies to people with severe lifelong conditions who we do not ever expect to work and those near the end of life. Clause 4 and the amendment to it mirror the universal credit changes in employment and support allowance.

The Bill will protect existing claimants in a powerful way, including those with fluctuating health conditions, but it will move decisively to a more proactive, pro-work system. That is what we need, and the protection for those who are on universal credit at the moment—

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[Graham Stuart]

rose—

[Vicky Foxcroft]

rose—

[Sir Stephen Timms]

Let me make just a little more headway.

The protection for those who are on universal credit at the moment and who are on the LCWRA rate is that if they go into work, they are likely—depending, of course, on their income—to stay on universal credit, so that protection will continue while they are in work. If their income rises to the level where they are lifted off universal credit, for six months they will retain that protection, and if they go back, they will return to their original rate, so there is very strong protection there.

--- Later in debate ---

[Sir Stephen Timms]

Thank you, Madam Chair.

[Vicky Foxcroft]

Will the Minister ensure that the universal credit health element forms part of the co-produced Timms review when reviewing the assessment process, as the UC health element will be assessed under the new PIP assessment? Furthermore, can we ensure that all disability benefits and support are in scope, so that we can truly get an assessment process fit for the future?

[Sir Stephen Timms]

My hon. Friend is right that the Green Paper set out our proposal that the PIP assessment will in future also be the gateway to the universal credit health top-up, giving it indeed a broader role. Our aim is specifically a co-produced benefit assessment. If that works well, there may well be a strong case to apply the same approach, maybe even using the same or a similar group to other challenges, and perhaps including other aspects of the health and disability benefits system, but that would need to follow successful completion of the task immediately in hand.

Let me finally make an important point, which was made by my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) and others. The severe conditions criteria in the Bill exactly reflects how the functional tests are applied at present. That is in guidance. It is being moved in this Bill into legislation. It does take account of Parkinson’s and MS because people need to meet these descriptors reliably, safely, repeatedly and in a reasonable timeframe, so I can give a firm assurance to those concerned about how the severe conditions criteria will work for those with fluctuating conditions. The word “constantly” here refers, as I said in my earlier intervention, to the functional criteria needing to apply at all times, not to somebody’s symptoms.

This Bill begins to repair a broken system that holds people back, by removing work disincentives from universal credit. We will provide record employment support for disabled people, for people with health impairments—