Disabled People in Poverty

Danny Kruger Excerpts

Tuesday 17th June 2025 Westminster Hall

[Danny Kruger (East Wiltshire) (Con)]

I shall be as quick as I can. I am grateful to hon. Members for their contributions. I fully recognise and share all the concerns that people have raised on behalf of constituents facing the cuts that are coming down the line.

Nevertheless, the Government are right in their overall objective of trying to tackle the challenges in our welfare system, which traps too many people in economic inactivity and presents an unsustainable cost to taxpayers. We have seen an onflow to both PIP and the UC health element, which doubled in the last Parliament. The PIP budget alone will rise by 50% in this Parliament, to £35 billion. Those figures are not affordable over the long term.

Nevertheless, the Government’s plans are crude and cruel. The Government are effectively proposing to scrap the standard rate of PIP altogether. Some 87% of people on the standard rate of PIP will fail the four-point test, so we are effectively doing away with that benefit altogether.

Mention has been made of the 14 years of the last Government. The fact is that this Government had 14 years to prepare for government, and—in response to a fiscal crisis that they created—they are having to rush through these crude and cruel benefit plans.

[Johanna Baxter (Paisley and Renfrewshire South) (Lab)]

Will the hon. Gentleman give way?

[Neil Coyle]

Will the hon. Gentleman give way?

[Danny Kruger]

I will give way to the hon. Lady.

[Johanna Baxter]

Talking of cruelty, does the hon. Gentleman agree that it is cruel that the number of people from working households living in poverty more than doubled under the Conservatives’ watch, from 600,000 to 1.3 million? Is that not cruel?

[Danny Kruger]

There were significant issues presented by the benefit reforms that the last Government introduced—again, in response to the fiscal crisis that they inherited. Many of those reforms were very positive in terms of getting people into work. However, I recognise that the axe fell disproportionately on certain members of the community, and I recognise many of the challenges faced by our constituents over the years.

Nevertheless, I insist that the benefit changes introduced some important reforms to help people get into work, as well as significant increases in support for disabled people. Carer’s allowance and disability living allowance increased significantly, and the WorkWell programme introduced at the end of the last Government helped disabled people into work. Some genuinely positive measures were introduced.

[Neil Coyle]

The hon. Gentleman’s point about DLA is interesting, given that his Government and the Lib Dems abolished it. My question is this: has the £12 billion that the Conservatives said they would cut from the Department for Work and Pensions budget during the last election been identified or outlined? What would his party have done and where would those cuts have fallen?

[Danny Kruger]

Let me come on to where I think the Government could be doing a better job.

To conclude my concern with the current plans, we will not see significant savings, as hon. Members have said, because the costs will be shunted elsewhere in the system. We should be very concerned about what will happen to local authority budgets and the NHS. The cause is the Government’s failure to introduce the substantial reforms needed to the way our benefit system, and in fact our wider economy, works.

The solution needs to be a much better assessment system. I am glad that the Government are proposing to review the assessment process for PIP and UC; I think they should be doing that before they introduce these significant cuts to benefits. We need assessments that recognise the fluctuating nature of many of the conditions that people experience. That is particularly the case with mental health, but there are also increasing numbers of young people who come forward with claims and the assessments do not take account of their conditions. We need a more human system, which is why it is important to introduce more face-to-face assessments.

Most importantly, we need more support for people who are far from the labour market. I echo the point made by the hon. Member for Clwyd North (Gill German); we need a process led by civil society. That was a key part of the reforms introduced under the last Government, but I do not think they went nearly far enough. A whole system of universal support, alongside universal credit, is the way to support people who are far away from the labour market. It is about not just the benefit levels, but the support that is given.

We need to listen to disabled people, and I am grateful for the input that I have had from disabled people’s groups as we look forward to the coming changes. We also need to listen to employers and put them in the driving seat with the reforms. We have a real problem in this country: in the UK, only 12% of employers offer phased return to work support, whereas in Germany that figure is 34%. We could do so much better at helping employers to provide support for people who are trying to get back into work.

I will conclude by stressing that Access to Work needs to be improved. We doubled spending on that in the last Parliament, but more needs to be done. Finally, and most of all, we need a growing economy. With unemployment up, inflation up, debt up and taxes up, we have a disjointed approach. Unless we get properly well-paid jobs, we will always struggle with the welfare bill.