Universal Credit Bill

Baroness Stedman-Scott Excerpts

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

[Baroness Stedman-Scott (Con)]

My Lords, I thank the Minister for her introduction to the Bill and for the ability to speak openly to her in the lead-up to today. I completely agree with the Minister that benefits should be easy to access for those who are in genuine need and difficult—even impossible—to access for those who are not in need.

I warmly welcome my noble friend Lady Shawcross-Wolfson to your Lordships’ House and congratulate her on her maiden speech. I have no doubt that my noble friend will make a significant contribution to the work of this House. The strength of that contribution was clearly understood today. My noble friend and I spent many interesting times in the DWP debating the merits of changes to the Child Maintenance Service with our own other noble friend Lady Coffey.

I wish the noble Baroness, Lady Bryan of Partick, well as she leaves your Lordships’ House. I thank her for her service and can confirm 100% that the noble Baroness is no fraud.

I want to focus your Lordships’ minds on the realities facing millions in this country and on the striking absence of ambition in this Bill. I will summarise the issues I believe the Government should address and attempt to solve, and where they ought to have begun before embarking on this legislation. I have always tried to be balanced and measured in my approach to this subject matter, and today will be no exception. I want to discuss the facts, which are important. We should be straightforward about them because, in discussing and debating them, we might get some solutions that benefit the people we exist to serve.

First, I was surprised that there is nothing in the Bill that addresses the deep-rooted challenge of long-term benefit reliance. People have always depended on the state when they see no other path forward. I was delighted that my heart was beating in concert with that of the noble Lord, Lord Liddell, when he talked about it being outrageous that people should get more on benefits than they would if they went to work. There are people who say, “Why should I work when I can get this?” The other day I was with somebody who works goodness knows how many hours a week. He told me that his friend, who is on benefits, was on Brighton beach. I suppose that is legit. When she went for a benefit assessment with her doctor, she used to put thick mascara around her eyes and Vicks underneath to make herself cry. Well, it worked. We should not have those sorts of things.

There is nothing in the Bill for those who have tried and failed; for whom interventions and standardised work programmes have never worked. Some people have been on every government programme that has ever been devised and delivered, but, to our shame, they still remain out of work. In one area of the country, they call these people their “beached population”, because they are completely held out of work by various conditions, or simply a lack of opportunity.

The right reverend Prelate the Bishop of Newcastle made a very good point that we cannot standardise things. One size does not fit all, and having flexibility in the service we offer people is going to be really important. I note the points made by the Minister on PIP assessments. I congratulate her on the commitment to do them face to face. The only reason that face-to-face assessments were stopped was Covid, and I am glad that they are coming back.

We must do better, especially for those living with disabilities and battling severe conditions every day. I recognise the Government’s progress on the Conservative principle of the right to try and welcome recent investments in skills, but without real, personalised, wraparound support, these efforts will continue to fall short for some people who need them. I have had loads of emails, as I am sure other noble Lords have, from people concerned about the impact on disabled people. I completely agree with the noble Baroness, Lady Grey-Thompson, that the media have not helped one little bit in the way that they have frightened people into believing that certain things will happen, when maybe they will not.

Why can we not offer real choices and a sense of purpose to those who have never truly had one—a point well made by my noble friend Lady Browning. Where is the choice for the choiceless? I thought that the noble Baroness, Lady Bennett, had pinched my speech, because we were sharing those words, so we are at one on that. I am very happy to confirm that the family the noble Baroness told us about should get the help that they really do deserve.

Secondly, our labour market is faltering. The most recent figures show that payrolled employees have fallen by 0.6% on the year, vacancies are down by 63,000 in the last quarter and the universal credit claimant count rose again in June to 1.743 million—up on both the month and the year. Yet this Bill offers no road map or plan to reverse the trend.

The West Midlands and London, two of the most populous and diverse economic regions, have experienced some of the weakest labour market recoveries. The constituencies with the highest universal credit claimant rates dominate the top of the list. This is no coincidence. The data reveals a stark truth: high claimant rates correlate directly with underperforming local labour markets. Jobs created are either out of reach or out of sync with the people who need them most. Nothing in the Bill seeks to address this reality. Where is the effort to connect talent to opportunity? Where is the connection for the unconnected?

We also know that adult education and skills training are the key to unlocking potential but, for too many, those doors remain shut. Whether it is basic maths and English or technical qualifications, acquiring skills later in life is profoundly difficult. Even when the financial support is there, awareness is lacking. Claimants are struggling to find tailored practical pathways that fit around the daily grind. Nothing in the Bill seeks to address this reality. Where are the accessible education opportunities for those who need them most? Where are the education opportunities for the forgotten?

In my 32 years of helping people into work, I—like all noble Lords—have seen the battles people face, the demons behind closed doors and the slow grinding effort required to turn lives around. Although the Government can do a lot, they cannot do it alone, and neither should they. Civil society must meet the challenge with urgency, and very often they are the best people to engage with the people we are talking about and trying to help this evening. What we need is not another scheme; we need belief and commitment. We need to support people who walk life’s tightrope every day, to keep them in work—not just for their finances but for their sense of purpose. Nothing in the Bill seeks to address this reality. Where is the direction for those who need it most? Where is the hope for the hopeless?

Nowhere is this more critical than with our young people, especially those who are NEET. This is a group that I and others in this House have worked with very closely, and I am sure we all care deeply about it. Today, over 800,000 young people in the UK fall into this category, and that should be a shock to us all. It should stir us into action—a point well made by the noble Lord, Lord Rook, who mentioned one of my favourite organisations: the Salvation Army. It was William Booth who set up the first labour exchange; the Government nicked the idea, and today we have Jobcentre Plus. Behind that number are real lives—real young people who were told to work hard, go to school and go to university. They did, but they now find that promise broken. How will the Government stop young people becoming NEET in the first place?

Graduate jobs are also vanishing as AI and automation reshape the economy. Up to one-third of traditional graduate roles are expected to disappear. These young people are not lacking in ambition; they are simply not being met with opportunity. The consequences are severe: studies show that time spent NEET leads to worse mental and physical health and a greater likelihood of unemployment or poor-quality work for years to come.

Consider the broader economic picture regarding inactivity. The UK inactivity rate for working-age adults is now 21%. Some 37,000 working days were lost to labour disputes in May alone. We face a softening labour market, falling payroll numbers and growing economic disengagement. At the moment, the Bill does nothing to respond to this. My noble friend Lord Elliott made the point that it is only employers who create jobs. Nobody else does that. You cannot buy jobs; it is only employers who create them. We need to work with employers to make sure that those jobs are created. Even I cannot offer the Minister the offer that my noble friend made, so if I were her I would grab it quickly. Meanwhile, we are told that the Bill delivers value, but the Institute for Fiscal Studies has shown that there are no net savings—yet we still plan to spend £2.2 billion immediately. Where is the fiscal prudence in that?

Hanging over all of this, our welfare bill is forecast to exceed £100 billion by the end of this Parliament. Our national debt, enormous in size, is even more concerning in composition—much of it inflation linked, meaning that prices rise directly and raise the cost of our repayments. This is a dangerous fiscal position. As my noble friend Lady Shawcross-Wolfson said, we cannot borrow, and we cannot borrow our way to opportunity. We need growth and reform and, above everything else, people in work. We will not reduce the bill until we reduce the dependency; that is the fundamental truth at the heart of this debate. We must win the argument that an ever-expanding welfare budget is not an act of kindness—it is a form of cruelty. It traps people, robs them of dignity and hollows out society’s productivity.

The Government, through the NICs Act—I know that it is a sore subject—have taxed work at the expense of people and of what employers are able, or now not able, to do. We need a new vision, one rooted in belief, backed by action and committed to the conviction that everyone deserves the chance to thrive through work. Many may ask, “What does that matter to me?” The answer lies in the long-term health and balance of our economy and of the people impacted. We risk drifting towards a situation where the welfare state outpaces the economy that sustains it—a point made by the noble Lord, Lord Palmer of Childs Hill. A fair and sustainable system depends on a strong workforce and a thriving labour market.

Britain needs people like us who will speak plainly about the scale of the challenge, and many in this Chamber are doing that. Your Lordships’ House knows me well, and I will continue to speak for the voiceless, the choiceless, the hopeless and the workless, and I know that noble Lords will all join me in that. I will continue to challenge the silence in this Bill and continue to fight with noble Lords for a future where work is not only possible but purposeful.