(2 weeks, 6 days ago)
Commons Chamber
Charlie Maynard (Witney) (LD)
I thank the Minister and everyone involved in the review for their hard work; this is a difficult subject, so it is much appreciated.
Today’s report has confirmed what perhaps all of us knew for many years, which is that PIP is supposed to act as a lifeline, but is administered through a broken system. Disabled people say that the application process actively disincentivises them from staying in work and maintaining an active social life. That is unfair on claimants and damaging for our economy, and it should worry us all. People deserve far better. We welcome this interim report, and we will engage constructively with the Government and play our role in the delivery of genuine improvements to the system. We want a society in which everyone can live independently and with dignity. We need the right support in place to ensure that disabled people and their carers can live their best possible lives, and the PIP system must be built around those principles.
We must, however, recognise the structural underlying challenges in the operation of the system. In 2024 prices, spending on incapacity and disability benefits rose from £34 billion a year in 2019 to £51 billion a year in 2024, under the previous Conservative Government. The number of those economically inactive due to long-term health issues rose from 2.1 million to more than 2.8 million in the same period, and the figure is stuck at a similarly high level now. This is seriously worrying, and the UK is largely an outlier in that regard. On current trends, the total bill for working-age sickness and disability benefits is projected to rise to £78 billion in 2030, which means that it will have more than doubled in 10 years.
Managing these economic pressures in an effective, fair and sustainable way is vital, so could the Minister expand a little on the work done to make sure that the evidence gathered is representative? Is work under way to address the root causes of these challenges in a holistic way, looking at everything from employment support to mental health? Can he also update the House on progress on merging PIP and universal credit incapacity benefit assessments?
I am grateful to the hon. Gentleman for his support for this review, and for his tribute to those who have put a great deal of work into it already, and who will be putting in a lot more between now and the autumn.
The hon. Gentleman is right to make the points that the system is not working well for disabled people at the moment, and that its costs are rising rapidly in a way that is of concern to many, including, rightly, taxpayers. He is right to highlight that this benefit, which is supposed to contribute to independence and participation, too often presents a barrier to those things, because so many people are worried that if they undertake an activity, the Department for Work and Pensions will say, when they get reassessed, “Oh, so you didn’t need your benefit after all, then,” and take it away. There is striking evidence of the scale of the concern about going to work, or taking part in exercise or sport. The current system presents significant barriers, and we want to address those. There are, absolutely, concerns about the rising costs, which we also need to address. All those factors will be in the minds of the steering group as we progress with the review, ahead of our final report in autumn.
The steering group, as I mentioned, is made up almost entirely of disabled people. The concern about the financial sustainability of this benefit is of great concern to them as well, because if it is deemed to be not financially sustainable then there is a risk to its future. We need the support to be present for the long term for the large number of people for whom it is vital.