Welfare Reform

Baroness Ritchie of Downpatrick Excerpts

Wednesday 2nd July 2025 Lords Chamber

[Baroness Sherlock (Lab)]

I am grateful to the noble Baroness and obviously respect her experience. I can assure her that the last week has felt like a year, so I can understand her confusion. She raises two very important points. First, the regulations will be published. We are absolutely committed to regulations guaranteeing that trying a job will never in and of itself be a reason for being reassessed for a benefit. That feels important, because we must do everything possible to help people. People must not be in a position where they get twice as much money for not being able to work and then are afraid of trying out a job because of what would happen if does not work out. She has hit on an important thing. I hope that she will be assured when she sees the regulations that they are doing what she wants.

On the question of mental health support, we are working very closely with Health Ministers. This week, we are launching our 10-year health plan, which sets out very ambitious plans. Patients will get better access to support, including, for example, self-referral for talking therapies without needing a GP appointment. There will be 85 new dedicated mental health emergency departments and, as I mentioned earlier, significant extra support in schools—our youth guarantee of helping young people to get access to mental health support. We must find ways of supporting people. The noble Lord, Lord Shipley, made the point that, whatever their barrier is, we must help them overcome it. We cannot just tell them to go and work. That simply will not work. So I am grateful to the noble Baroness for raising two important points.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, I welcome the concessions from the Government on welfare reform. Having been a Minister in the Northern Ireland Executive with responsibility for welfare reform and disability benefits, I know that this is a difficult issue.

These concessions will cause a funding gap for the Treasury. Can the Minister say that these concessions regarding welfare reform will not be filled by below-inflation increases to social security benefits, in particular universal credit?

[Baroness Sherlock (Lab)]

I am grateful to my noble friend. Any official decisions will be made in the Budget in the usual way. They are matters for the Treasury. To reassure her on the specific point, the Bill says that we are guaranteeing an above-inflation increase to the UC standard allowance in each of the next four years. That means that, if you are a single person aged 25 or over, the allowance will increase to £106 a week by 2029-30. That is unheard of. As the IFS has said, it is the first time in decades that we have increased beyond inflation the rate of universal credit. So I hope she is not only reassured but delighted.