Timms Review: Interim Report

Debate between Jeremy Corbyn and Stephen Timms

Thursday 9th July 2026 Commons Chamber

[Sir Stephen Timms]

My hon. Friend is right that we need to ensure that the NHS is delivering on all aspects of its work. There is a big problem with long delays and backlogs in the Access to Work scheme. We have recently announced the recruitment of an additional 480 people, which means that the number of people working on Access to Work applications will have more than doubled since the general election. We are confident that that will enable us to eradicate the backlog for Access to Work by September of next year. My hon. Friend is right that all those services need to work well and support people together. That is our aim.

[Jeremy Corbyn (Islington North) (Your Party)]

I thank the Minister for his statement and the recognition that, for many people, claiming PIP is not an easy process; it is deeply stressful, particularly reapplications and reassessments or delays on appeal. There are appalling levels of stress in the community as a whole, and I hope that this can be addressed seriously in the future. Page 8 of the interim report mentions that future PIP spending will be within the envelope predicted by the OBR. Does that mean that there is going to be some form of cash limiting for PIP, or does the report accept the principle that personal independence payments—which are incredibly valuable—are based on an assessment of the needs of people, rather than a Treasury-based limit on spending?

[Sir Stephen Timms]

The right hon. Gentleman is right about the degree of stress involved in the process. I spoke to somebody at a roundtable in Northern Ireland who told me she had been diagnosed with multiple sclerosis in the course of her working life, which came as a terrible shock and was a traumatic experience. A few years later, her condition had deteriorated and she had to apply for PIP; she said that the experience of applying was as traumatising as the original diagnosis. The effects that people have suffered are very serious.

The terms of reference for the review require us to stay within the currently projected OBR spending on PIP. There is not a cash limit, but one can project what the spending is going to be. The steering group is constrained to stick within currently predicted spending. I think that there may well be reductions, because if we do all the things that we have been talking about, we can do a better job for both disabled people and the taxpayers whose taxes are paying for the system.

Social Security Benefits

Debate between Jeremy Corbyn and Stephen Timms

Tuesday 4th February 2025 Commons Chamber

[Sir Stephen Timms]

I have seen representations along those lines. It is not something that we are considering at the moment, but we are, as I have mentioned, committed to reviewing universal credit, and we will do so over the course of this year. I imagine that we will be looking at a very wide variety of representations, and the hon. Gentleman and others will be very welcome to make submissions to us along those lines. Lastly, let me say a word about the draft Guaranteed Minimum Pensions Increase Order 2025.

[Jeremy Corbyn (Islington North) (Ind)]

Before the Minister gets on to the pension issue, may I just say that the order requires the Secretary of State to examine the effects of benefit uprating and the effects of the existing payment of benefits? What studies has he done on the effect of the two-child benefit cap? Secondly, last week we passed a welfare spending cap—a cap that, obviously, could be breached in the future. Will the Government revisit the whole idea of the welfare cap, with a view to abolishing it, so that we ensure that the motive force in deciding on benefits is the level of need, rather than an arbitrary figure decided by the Treasury?

[Sir Stephen Timms]

On the two-child limit, as the right hon. Member knows, we very quickly set up after the general election the child poverty taskforce, which is looking in a very ambitious way at the whole range of levers that the Government have at their disposal for tackling the problem of child poverty. We would very much like to repeat the success of the last Labour Government in reducing child poverty so dramatically in when in office. I say that with particularly strong feeling, having taken the Child Poverty Act 2010 through the House towards the end of that Government’s term. Under consideration certainly will be social security changes—we will look at what changes might be appropriate. We are not able to say whether the two-child limit will be removed, but all those things will be considered carefully during production of the report, which the taskforce will bring forward.

We are not looking, I do not think, at changing the arrangements around the overall welfare cap. Of course, there is always some confusion between the individual benefit cap and the overall welfare cap. As the right hon. Member said, there was a debate last week on the overall cap. There is certainly scope for debate about that and, indeed, the benefit cap as well, but we are not proposing any changes to those arrangements in the short term.

The draft Guaranteed Minimum Pensions Increase Order sets out the yearly amount by which the GMP part of an individual’s contracted-out occupational pension earned between April 1988 and April 1997 must be increased if it is in payment. The increases paid by occupational pension schemes help to provide a measure of inflation protection to people who are in receipt of GMPs earned between those two years. Legislation requires that GMPs earned between those two dates must be increased by the percentage increase in the general level of prices, as measured the previous September, capped at 3%. This year, it means that the order will increase the relevant part of the GMP by the September 2024 consumer prices index figure, which is 1.7%.

The draft Social Security Benefits Up-rating Order, if Parliament approves it this afternoon, commits the Government to increased expenditure of £6.9 billion in 2025-26. The changes will mainly come into effect from 7 April and will apply for the tax year 2025-26. The order maintains the triple lock, benefiting pensioners who are in receipt of the basic and new state pensions; raises the level of the safety net in pension credit beyond the increase in prices; increases the rate of benefits for people in the labour market; and increases the rate of carer’s benefits and support to help with additional costs arising from disability or health impairment.

The draft Guaranteed Minimum Pensions Increase Order requires formerly contracted-out occupational pension schemes to pay an increase of 1.7% on GMPs in payment earned between April 1988 and April 1997, providing people with a measure of protection against inflation, paid for by their scheme. I commend to the House the draft Social Security Benefits Up-rating Order 2025 and the draft Guaranteed Minimum Pensions Increase Order 2025.