Disabled People in Poverty

Ellie Chowns Excerpts

Tuesday 17th June 2025 Westminster Hall

[Oliver Ryan (Burnley) (Ind)]

Let us say it straight: disabled people have been let down by 14 years of Tory Government. The number of disabled people in working households living in poverty doubled under the Tories’ watch, to 1.3 million people last year and the pay gap for disabled people is higher now at 13% than it was a decade ago.

I will touch briefly on the upcoming PIP reforms—I did have a bigger speech planned, but we are short on time. An unsustainable welfare system, one that does not enjoy public support or give disabled people enough good support, does disabled people no favours. What does do them a favour is scrapping the work capability assessment and providing extra funding to get people into to work. To have no answer to the additional 1,000 people a day who are currently going into the PIP system is to keep one’s head in the sand and to provide no real answers to the failure of the current system, which is not flexible or supportive enough.

[Ellie Chowns (North Herefordshire) (Green)]

Will the hon. Gentleman give way?

[Oliver Ryan]

I will not give way. The principle of the social contract of the welfare state is at stake, and this Government are defending it.

--- Later in debate ---

[The Minister for Employment (Alison McGovern)]

It is a pleasure, as ever, to serve under your chairship, Ms Jardine.

I thank my hon. Friend the Member for Poole (Neil Duncan-Jordan) for securing this important debate. It has been a good debate. I would normally run through all the people who have spoken, but there have been so many—I will try to cover some of the points that have been raised. However, I begin by saying that the level of poverty among disabled people demands our attention and action, and it is right that we discuss it today.

Disabled people, like everybody else, have the right to dignity, the right to work and the right to have power, choice and control over their lives. When someone is in poverty, regardless of whether they are disabled, they are robbed of the opportunity to choose how to live their own life, which is why the situation we face today is so very shameful. When the Tories left office, 14 million people were in poverty, including 6.3 million people living in households in which someone is disabled—enough to fill Wembley stadium 70 times over, and more than the population of Scotland. That is a moral, social and economic failure on a colossal scale, and this Government have already taken urgent action to tackle it by delivering our plan for change, putting more money in people’s pockets and raising living standards.

Some of the specific anti-poverty measures in last week’s spending review are really important. For the first time, we have taken a long-term approach to the household support fund so that local authorities can properly plan, and we are turning the fund into a crisis and resilience fund so that we can properly deal with the issues that come up from time to time when a crisis tips somebody into long-term poverty.

Last autumn, we introduced a fair repayment rate for universal credit by reducing the maximum amount that can be taken from people’s benefits to pay for what they owe from 25% to 15%, meaning that 1.2 million of the poorest households will keep an average of £420 more in universal credit. As my dad used to say, “Out of debt, out of danger.”

[Ellie Chowns]

Today the Minister has heard many MPs, representing their constituents, express their huge concern about the effects of the PIP cuts on disabled members of our communities. She says that she cares about disabled people in poverty and about dignity. Why are her Government refusing to raise funds through a wealth tax so that our disabled constituents can have the support they need to live full and supported lives?

[Alison McGovern]

I thank the hon. Lady for her comment. I do not just say that I care about poverty; I have spent nearly a year working on a child poverty strategy to repair the damage the Tory Government did to this country. We will bring forward proposals as soon as we can to deal with the poverty crisis—I have mentioned several of them already.

The hon. Lady asks about a wealth tax. We have put VAT on private schools and private jets. We have removed exemptions from inheritance tax, which is a wealth tax. We have doubled stamp duty, which is a wealth tax. We are increasing capital gains tax and abolishing non-dom status, which meant that wealthy people could escape the taxes they owe. I do not accept that we have not taken steps to raise money through taxes so that we can pay for the public services this country needs so that working-class people can escape poverty. That is what this Government have done. [Interruption.] I will continue before I lose my temper.

We are expanding free school meals in England to all children with a parent receiving universal credit, lifting 100,000 children out of poverty by the end of the Parliament, and that is on top of our roll-out of free breakfast clubs. As I just mentioned, our child poverty strategy, on which Ministers right across Government have been working extremely hard, will reduce costs, support families with better local services and increase incomes, because we know that is the best way to tackle poverty.

As I mentioned, the extra money we are collecting through taxation will help to rebuild our NHS, with an extra £29 billion a year for the day-to-day running of our health service, so that disabled people can get the healthcare they need. We are also extending the £3 national bus fare cap, helping people to maintain their independence.

I want to respond to some of the points that Members have raised, particularly on the PIP review, which is already under way. I know that Members will be involved in that work but, just to be clear, it is already happening.