(6 months, 4 weeks ago)
Commons ChamberOrder. The sitting is now resumed. The reason for the suspension was because the statement, which under the ministerial code should have been delivered at a minimum of 45 minutes prior to the statement being made, was delivered late; I know the Secretary of State will want to look into the matter and report back to the Speaker.
First, may I apologise profusely to the House that a copy of my statement was not provided to Mr Speaker and indeed those on the Opposition Front Benches sufficiently in advance of my statement? May I also take this as my first opportunity in the House to say how saddened I was by the passing of Frank Field, a true champion of welfare reform who was always prepared to work across party? While we did not always agree on all matters, I share and admire his belief that welfare means transforming lives.
With permission, Mr Deputy Speaker, I shall make a statement on the consultation we are launching today on the changes to the personal independence payment, which aim to create a benefits system that can best support disabled people and people with long-term health conditions to live full and independent lives.
This Government’s priority is to make sure that our welfare system is fair and compassionate: fair on the taxpayer by ensuring that people of working age who can work do work; and fair on those in most need of the state’s help. Welfare at its best is about more than just benefit payments; it is about changing lives for the better.
In recent years the Government have delivered successive reforms to create a system that is fairer and more compassionate while providing value for the taxpayer. We have reformed an outdated and complex legacy benefits system and introduced universal credit—a new, modern benefit that ensures people are better off in work than on benefits. Last year we published a landmark White Paper announcing significant reforms to focus the welfare system on what people can do rather than what they cannot. We are delivering our £2.5 billion back to work plan, substantially expanding the employment support to help more disabled people and people with health conditions to start, stay and succeed in work. Our reforms to the work capability assessment will better reflect the opportunities in the modern world of work and ensure that more people get the support they need to move into employment, while protecting those unable to work, and in February we published the disability action plan to make this country the most accessible place in the world for people to live, work and thrive.
In addition, the Government have provided unprecedented help for the most vulnerable, including by implementing one of the largest cost of living support packages in Europe, which prevented 1.3 million people from falling into absolute poverty during a time of global inflationary pressures. We have increased benefits by 6.7% and raised the local housing allowance, benefiting 1.6 million households by an average of around £800 this year.
Our approach to transforming the benefits system for disabled people and people with long-term health conditions is guided by three important priorities: providing the right support to the people who need it most; targeting our resources most effectively; and supporting disabled people to reach their full potential and to live independently.
Although we have made significant progress, the disability benefit system for adults of working age is not consistently providing support in the way that was intended. It has been more than a decade since the introduction of the personal independence payment. The intention was that it would be a more sustainable, more dynamic benefit that would provide better targeted support to help disabled people with the extra costs arising from their disability. However, the nature and understanding of disability and ill health in Britain has changed profoundly since then, and the clinical case mix has evolved in line with those broader changes, including many more people applying for disability benefits with mental health and neurodivergent conditions.
Since 2015, the proportion of the caseload receiving the highest rate of PIP has increased from 25% to 36%. Some 7% of working-age people in England and Wales are now claiming PIP or disability living allowance, which is forecast to rise to 10% by 2028-29. In 2022-23, the Government spent £15.7 billion on extra costs disability benefits for people of working age in England and Wales, and the Office for Budget Responsibility has forecast that the cost will rise to £29.8 billion in nominal terms by 2028-29. There are now more than 33,000 new awards for PIP per month. That figure has almost doubled since the pandemic.
With almost a quarter of the adult population now reporting a disability—up from 16% in 2013—I believe that now is the time for a new conversation about how the benefits system can best support people to live full and independent lives. Today I am launching a consultation to explore changes that could be made to the current PIP system to ensure that support is focused where it is most needed. These options include: making changes to eligibility criteria for PIP; redesigning the PIP assessment to better target it towards the individual needs of disabled people and people with health conditions, including exploring whether people with specific health conditions or disabilities can be taken out of PIP assessments all together; and reforming the PIP assessment so that it is more linked to a person’s condition. We are also consulting on whether we should make fundamental changes to how we provide support to disabled people and people with a health condition.
We know that any additional costs arising from a disability or health condition, which PIP is intended to help with, can vary significantly and are unique to the individual’s circumstances. Some people on PIP may have relatively small one-off costs, such as walking aids or aids to help with eating and drinking, or ongoing additional costs related to their disability or health condition, such as help around the home or running a ventilator. Some claimants’ costs will be fully covered by their award, while others may find the current system does not provide enough support to meet their needs, yet the current system operates a one-size-fits-all model and does not channel people towards bespoke support tailored to an individual’s needs. We recognise that better, more targeted support could be provided by other local services.
Our plans include exploring how the welfare system could be improved with new approaches to providing support, such as: moving away from a fixed cash benefit system, so that people can receive more tailored support in line with their needs; exploring how to better align the support PIP offers with existing services and offers of support available to disabled people and people with health conditions; and exploring alternative ways of supporting people to live independent and fulfilling lives, which could mean financial support being better targeted at people who have specific extra costs, but could also involve improved support of other kinds, such as respite care or physical or mental health treatment, aiming to achieve better outcomes for individuals.
Crucially, we want to explore whether we can achieve our aims within the current structure of health and disability benefits, or whether wider change is needed. We are consulting over the next 12 weeks to seek views from across society, including disabled people and representative organisations, to ensure that everyone has a chance to shape welfare reforms that will modernise the support provided through the benefits system.
We know that these reforms are significant in their scale and ambition, but we will not shy away from the challenges facing our welfare system today. We owe that to the millions of people who rely on it and to the hard-working people whose taxes underpin it. That is what the next generation of welfare reforms is all about. These proposals will help to create a benefits system that can better support disabled people and people with long-term health conditions to live full and independent lives, and they are a crucial part of my mission to ensure that the welfare system is fair and compassionate and that it provides the right help to those who need it most. I commend this statement to the House.
By mentioning “one size fits all”, I am saying that we should explore whether the approach we have at the moment has the best outcomes. We have much to learn from the experience of countries around the world that have a similar benefit but go about its organisation and application in a different way. New Zealand makes payments based on invoices for equipment submitted by those who receive the benefit. Norway does not have assessments in the way that we do; it relies more on evidence provided by medical practitioners. We should go into this with an open mind. Bear in mind that there has been no fundamental review of PIP for over a decade.
I call the Chair of the Select Committee.
I am afraid I simply do not subscribe to the theories that the hon. Gentleman promotes. I think it is probably best to leave it at that.
I thank the Secretary of State for his statement and for responding to questions.
(8 months ago)
Commons ChamberThe hon. Lady refers to “doing the right thing”. Doing the right thing by the people the hon. Lady describes is to look very closely, carefully and diligently at the report. It has been five years in gestation. It is detailed, runs to 100 pages and draws upon a vast reservoir of evidence. It is only right and proper, given that the report was published on Thursday and today is Monday, for all of us to have time to properly consider its findings. [Interruption.]
The hon. Lady refers to the general situation of pensioners. All I can say is that I am pleased and reassured that pensions generally are a reserved matter. We have been able to increase the state pension, last year by 10.1% and this coming year by 8.5%. We have pressed hard on promoting pension credit for poorer pensioners. We had a cost of living payment. Because it is a reserved matter, this Government were able to provide £300 to pensioners last November, alongside their winter fuel payments. As a consequence of that—[Interruption.]
Order. The hon. Lady has asked a question. Please listen to the answer.
I was merely pointing out the fact that we stand four-square behind pensioners across the United Kingdom to support them. That is why under this Government there are 200,000 fewer pensioners in poverty, after housing costs, than there were in 2010.
My hon. Friend is a member of the Work and Pensions Committee and I welcome her question. I reassure her that there will be no undue delay. I thank her for recognising that we need to look at these matters with great care. That does not mean coming forward with some of the things that the Scottish National party may wish us to do on a Monday, given that the report landed with us only last Thursday.
I call the Chair of the Work and Pensions Committee.
Does the Secretary of State agree with the Chair of the Women and Equalities Committee, as I do, that those affected should not have to wait for the outcome of a Select Committee inquiry before learning the Government’s response? The equalisation of the state pension age was legislated for in 1995, giving 15 years’ notice to those affected. The 2011 changes, which accelerated the process, gave much less than 10 years’ notice to those affected. Is one of the lessons about what has gone wrong that we must ensure major changes of this kind provide at least 10 years’ notice, or preferably 15 years’ notice, before those changes take effect?
The hon. Lady is attempting to draw me into coming to premature conclusions on some of the findings in the report, which I am afraid I not going to do for the reasons I have already given. Once again on the issue of timing, there will be no undue delay.
I call the chair of the all-party parliamentary group on state pension inequality for women.
I am most grateful to my right hon. Friend for his statement. The Parliamentary and Health Service Ombudsman is itself WASPI, having been conceived in the 1950s. Does my right hon. Friend agree that a failure by Government to comply with its recommendations would be almost completely unprecedented over the past 70 years, and would in effect drive a coach and horses through an integral part of our system of democratic checks and balances? With that in mind, will he confirm that his Department will work in full haste with Parliament to agree a mechanism for remedy? Will he outline the work he is carrying out to address further concerns that have been raised over systematic failure by the DWP over several decades to properly communicate future pension changes?
May I say to the Secretary of State that he needs to read the room? Let us remember that the ombudsman has said there has been maladministration. There is consensus across the Chamber that compensation should be paid. This is about women who paid national insurance in anticipation of receiving a pension, who were hit with the bombshell that their pension was being deferred—in some cases, by up to six years—with only 15 months’ written notice. Can we imagine what would happen in this place if it was announced that private sector pensions were being put back by six years? Rightly, there would be outrage, and there should be outrage about what happened to the WASPI women.
This was an entitlement taken away from women, who had a reasonable expectation of retiring denied to them. The Government should have recognised the failings and should have compensated those 3.8 million women years ago. Now that we have the determination of maladministration, let us ensure that this is not another Horizon or contaminated blood story and that the Government come back at pace with firm proposals that the House can discuss after the Easter recess.
Order. Can people focus on their questions, please? That would be really useful.
As the right hon. Gentleman will know, I am fully aware of the reports’ findings. As he will know, they raise many questions, which we need to look at carefully. We will not delay in so doing, but that is why I have come to assure the House that we will do exactly that and engage with Parliament in an appropriate way.
(1 year, 8 months ago)
Commons ChamberAs the hon. Gentleman recognised, I am not in a position to comment on the matter he raised, as it is before the ombudsman at the moment, but his comments will have been heard.
I thank the Minister for his statement and for responding to questions for just short of half an hour.
(2 years, 10 months ago)
Commons ChamberWith the leave of the House, I would like to express my gratitude to various individuals who have assisted me in bringing in this Bill. First, I thank the officials at DCMS for their advice and, in particular, Mark Caldon. I thank the Clerks who assisted me with process and particularly Adam Mellows-Facer, who is no longer at the Table so I am sparing his blushes. I thank the Members who helped to take the Bill through the Bill Committee. I thank the Minister and the Opposition, including the shadow Minister, the hon. Member for Manchester, Withington (Jeff Smith), for his very generous words a moment ago. I thank all those who spoke on Third Reading and crammed in so many other Government policies; this is a narrow Bill, but it seems to me that it promises a very great deal beyond its intention. I also thank in advance Lord Vaizey, who will sponsor the Bill, and all those who work in our museums and galleries and who enrich the lives of so many of us.
Question put and agreed to.
Bill accordingly read the Third time and passed.