Universal Credit Bill

Baroness Ritchie of Downpatrick Excerpts

2nd reading & Committee negatived & 3rd reading
Tuesday 22nd July 2025 Lords Chamber

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, it is an absolute pleasure to follow my roommate and noble friend Lady Bryan of Partick as she makes her valedictory speech today and says farewell to the Chamber. As my roommate in Room 14 on the 2nd Floor, West Front, along with our mentor and boss, my noble friend Lady Gale, and my noble friend Lady Chakrabarti, she formed a very good friendship with all of us. She is a good colleague and a hard-working campaigner for social justice, fairness and equality for all, and in particular for all the residents of Scotland. I hope that, outside this Chamber, she continues that work in whatever guise she decides.

I welcome the maiden speech of the noble Baroness, Lady Shawcross-Wolfson. She is very welcome in your Lordships’ House.

Moving on to the Bill, I welcome the Government’s decision to make concessions in relation to the original Bill with regard to PIPs and disabilities, as well as, on a separate basis, the winter fuel payment. As a former Minister with responsibility for welfare in Northern Ireland—under the principle of parity, the Bill will apply in Northern Ireland—I recognise that welfare is a very challenging issue and requires to be reformed, and that the financial bandwidth has been lessened due to the actions of the previous Government over 14 years and the existential threats posed by Brexit.

None the less, the concessions show a listening Government. But there is a little more that needs to be addressed, as has been referred to in this debate, in the many letters we have received via email and in the various submissions from disability organisations. I hope the Government will be able to lead, listen to the needs of the disabled and provide a solution with particular reference to the health element of universal credit for new claimants. I hope that those measures, which bring benefit to disabled people, will emerge from the Timms review, which will be co-produced with disabled people through listening to and working with them.

Many people have said to me that there is a fear in the wider community of a possible return to austerity. I would like assurances from my noble friend the Minister that that will not be the case and that the most vulnerable, who have faced disproportionate costs for heating and food over many years, will be protected by benefits uprated in line with inflation.

People still find themselves disproportionately affected by rising inflation and the ongoing cost of living crisis. The latest consumer prices index has spiked to 3.6% for June 2025, with the Bank of England predicting possible further rises due to higher food and energy prices. In such circumstances and in the context of the Bill, will my noble friend the Minister commit the Government to social security benefits uprating in line with inflation for those out of work and those in low-paid work? She provided me with some comfort some weeks ago in answer to my question when she stated

“the Bill says that we are guaranteeing an above-inflation increase to the UC standard allowance in each of the next four years”.—[Official Report, 2/7/25; col. 807.]

I hope that that will be the case, notwithstanding the challenges faced by the Treasury and the Government, and taking on board the increase in price inflation figures released some days ago. That is the issue for Advice NI in Northern Ireland, which represents many people in receipt of disability benefits.

I have a further question for the Minister. What if the move to universal credit takes longer to complete than by March 2026? Will anyone who moves from ESA to universal credit after March 2026 be treated as a new universal credit claimant and so be subject to the health element, which would mean a 50% reduction for new claimants? I am looking for some assurances. Therefore, can my noble friend the Minister indicate what the situation will be? None of us want to see people ploughed into endless poverty, disadvantage and financial loss while enduring their disability.

The Cystic Fibrosis Trust and the disability charity Scope, while welcoming the Government’s concessions, are concerned about the fluctuating nature of health conditions for new claimants. Therefore, can my noble friend the Minister outline what further measures could be provided to assuage the concerns around the health element of those potential new claimants for universal credit? Many disability conditions do not disappear with changes in social security regulations or legislation.