Universal Credit Bill

Baroness Smith of Llanfaes Excerpts

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

[Baroness Smith of Llanfaes (PC)]

My Lords, I will speak in the gap, if I may. I would like to congratulate the noble Baroness, Lady Shawcross-Wolfson, on her maiden speech. I look forward to her future contributions, particularly with her policy background. I also want to thank the noble Baroness, Lady Bryan, for her service to this House.

I support the regret amendment in the name of the noble Baroness, Lady Bennett, and I have key three key points to add to this evening’s Second Reading of the Universal Credit Bill. First, on Wales, the Joseph Rowntree Foundation calculates that there are almost 900,000 disabled people in Wales—around 30% of the population—with 26% of working-age adults self-reporting as being disabled. The DWP’s own Green Paper evidence pack shows that Wales will be disproportionately affected by any changes to welfare. It shows that 14.7% of the working-age population are on disability and incapacity benefits, the highest in the UK, while 20.4% of working-age people and 26.9% of working-age households in Wales receive universal credit. The Bill has also been highlighted by the First Minister of Wales as having a disproportionate effect on Wales. Will the Minister share with us what specific attention the UK Government have given to these disproportionate effects, and what discussions His Majesty’s Government will be having with the Welsh Government on the effect of this Bill?

My second point is that we already have a two-tier benefit system, and this Bill, as so eloquently pressed by other speakers, will worsen that. What I mean by that is that the two tiers already in existence are in relation to age. I will illustrate this briefly. Universal credit rates are 20% less if you are under 25, and the housing cost elements can be 45% less for those under 35 in some areas. There is a presumption here that all young people have parents or family members to support them, which is not the case. Practically speaking, the cost of food and bills is not, shockingly, cheaper for those who are, say, 24 years old compared to someone over 25. I ask the Minister: are those age rates something that will be addressed in the future? The noble Baroness, Lady Browning, also raised real concerns in relation to the gap in the welfare system for those with lifelong disabilities who are under the age of 22.

Finally, as a former unpaid carer, I would just like to add my voice to the calls for further clarity for unpaid carers under this new system.

[Lord Davies of Brixton (Lab)]

If I may, I will speak briefly in the gap, principally just to—