Universal Credit and Personal Independence Payment Bill

Nadia Whittome Excerpts

Committee of the whole House & 3rd reading
Wednesday 9th July 2025 Commons Chamber

[Andy McDonald]

The hon. Member makes an important point, and it is critical that that is reflected on the face of the Bill. With all sincerity, we cannot walk away from here thinking that guidance notes are enough. They may change fundamentally in further iterations and say something completely different from what this honourable and decent Minister is saying to us today. Policy for disabled people must be made with them, not imposed upon them.

If we are serious about ending austerity, we cannot keep balancing the books on the backs of the poorest. That means revisiting not just what we spend, but who we tax and how. We have heard about the party of millionaires making their case that this country has done so well by them—they are so privileged to have made a success of their lives and to have flourished—that they are looking at the opportunities they were given and saying, “Please, we can make a further contribution.” It is they who made the argument about a wealth tax that would raise £24 billion. Nigel Lawson, when he was Chancellor, thought that the differential between capital gains tax and income tax was an anathema, and he equalised it, so there are opportunities for us there.

The Employment Rights Bill also presents us with wonderful opportunities. If we could grasp the issue of “single status of worker” and deal with the issue of bogus self-employment, limb (b) employment, zero-hours contracts and the rest of it, that not only represents secure, well-paid, unionised work for people to give them a flourishing life; it also gives us the opportunity to collect currently uncollected tax and national insurance, to the tune of £10 billion per annum. That would also mean supporting people according to their needs. That is not Marx, but the Acts of the Apostles.

This is a moment of reckoning. The country expects better. If we are to lose our nerve now, we will lose more than a vote: we will lose the trust that brought us here. We must reflect that during our discussions about the Bill, each and every one of us has heard the response from our constituents and our offices that this has been a shambles—there is no other word to describe it. Now is the moment to stop the cuts and I implore the Government to rethink the Bill.

[Nadia Whittome (Nottingham East) (Lab)]

I rise to support my new clause 10, as well as a number of other amendments tabled by my right hon. and hon. Friends, including new clause 8, new clause 11 and amendment 38.

I welcome the concessions that the Government have made to the Bill, which I will be supporting. I pay tribute to the disabled and chronically ill people whose tireless campaigning led to those concessions—I have been proud to stand with them. However, the changes do not alleviate all my concerns about the Bill. One in three disabled people are already in poverty. The Bill, even after the Government’s amendments, would take around £3,000 a year from the disabled people of the future, at a time when the extra cost of being disabled is set to rise by 12% in the next five years.

The Government’s analysis states that the measures in the Bill will lift 50,000 people out of poverty. However, analysis from the Joseph Rowntree Foundation and the New Economics Foundation shows that they would actually push 50,000 disabled people into poverty. We know that benefit cuts and loss of payments help to trap women experiencing domestic abuse, make children grow up in poverty and even cost lives, like that of my constituent Philippa Day, who died from a deliberate overdose after her benefits were wrongly cut.

This is particularly pertinent to those with fluctuating conditions, who risk losing LCWRA status during periods of temporary improvement. That is why amendment 38 is so vital, as it would ensure that they are protected. Even with the Government’s concessions, not a single disabled people’s organisation supports this Bill. It is at the request of the disabled people’s organisations forum in England that I have tabled new clause 10, which would require the Government to publish a human rights memorandum before the Bill can be enacted.

No analysis of the impact of the Bill on the human rights of disabled people has been published so far. Last year, the UN found that there had been further regression in the “grave and systemic violations” of disabled people’s rights in the UK, which it reported on in 2016. Last night, the UN wrote to the Government to say that it had “received credible information” indicating that the Bill will “deepen” that regression. We should not proceed with the Bill as it stands.

Disabled people’s organisations remain sceptical about the Timms review into PIP. I am hopeful that the Government will support the amendment tabled by my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball), which would make provision for commitments around co-production and oversight. They must also support new clause 8, which would ensure that changes from the Timms review are introduced as primary legislation. That is essential in ensuring democratic scrutiny—otherwise, MPs will not be able to amend or vote on the legislation. It would also prevent a reduction in eligibility for PIP, which we know would be disastrous and which motivated so many of us on the Government Benches to call on the Government to think again.

I joined the Labour party because of what I experienced and witnessed growing up as a child and a teenager under the Conservatives. As a disabled MP, I have first-hand experience of the disability benefits system. We have all met constituents who are already not getting the support they need. The question today is this: do we let their number grow? If the answer is no, I urge Members to support the amendments that would strengthen protections for disabled people and, ultimately, to vote down this Bill.

[Neil Duncan-Jordan (Poole) (Lab)]

I rise to call for the removal of clauses 2 and 3 from the Bill, because I think they get to the heart of the unfairness contained within it.

There can be no doubt for those of us who were here last week that trust was eroded between the Government and disabled people’s organisations—that trust will need to be slowly rebuilt over the coming months. We should therefore recognise that a positive step in that direction is the Government’s decision to pause on the issue of PIP reform and to place those decisions in the hands of the Timms review. However, that is not enough, because the Bill still contains a proposal to cut £2 billion from the universal credit health element for more than 750,000 future claimants.

From next April, we will have created a two-tier benefits system based not on health needs, but on the date when a claim was made. In fact, there are already nearly 4.8 million disabled people living in poverty today across the country. That is a damning indictment of our welfare system and should be a wake-up call to bring that number down, not to make it go even higher.

The numbers are stark. Taking £3,000 a year, or £250 a month, from disabled people’s income will force families to a crisis point and into further reliance on food banks. The Joseph Rowntree Foundation claims that if the cuts are not removed, an additional 50,000 people will be forced into poverty. Even before this cut, three quarters of all universal credit health element recipients are already experiencing material deprivation and are unable to afford the essentials on which to live. If we are serious about genuinely reforming the benefits system and putting disabled people and their organisations at the heart of any changes, I cannot see why the health element of universal credit would not also be part of the Timms review.

--- Later in debate ---

[Danny Kruger]

The fact is, in our time in government we increased the number of disabled people in work significantly. Two million more disabled people were in work at the end of our time in government than before. There is much to regret about the last years of our time in government, and I was a critic of them myself, but on welfare throughout our time in government we have a proud record of improving the broken system that we inherited.

We are now a year into Labour’s time in government. They have had all this time to come up with a plan and we have absolutely nothing. Clause 5 did have some changes to the system, but they are going to scrap that today. I want to pay tribute to the rebels on the Labour Benches for finding their voice and showing what Parliament can do, and I particularly pay tribute to the hon. Member for York Central (Rachael Maskell)—the real Prime Minister sitting there on the real Front Bench. I respect and honour them all.

As for the Government Front Bench, they are chopping the Bill’s title in half. It is now nothing to do with PIP, so we have no reform to welfare and certainly no savings. This is now a spending Bill, not a savings Bill. Looking at the impact assessment that has just been published—the third in the last three weeks, I think—if we add up the savings from cutting UC health for new claims, which is a little over £5 billion, and minus the cost of raising the standard allowance, which is a little over £5 billion, we get £120 million of extra costs over the next four years, plus the £1 billion of extra employment support. Labour’s idea of saving money on welfare is to spend more by the end of the Bill’s passage. The Government have also spent the money that they thought they were saving from the PIP changes before they did the U-turn. Even now they are on a wing and a prayer financially.

The Office for Budget Responsibility, on which the tottering Chancellor has relied to hold up her sums, assumes that the on-flow to benefits will fall halfway back to their 2019 levels over this Parliament. If they do not, the Chancellor will have to find another £12 billion. Why should new claims reduce under this Government when there is still an incentive of £50 a week to get on to UC health, and there is no reform to PIP for at least another year? The Minister has also said that his famous eponymous review is not aimed at saving money anyway. The hon. Member for Aberdeen North (Kirsty Blackman) challenged him earlier to confirm that, and I think he has confirmed from the Dispatch Box that there will be no savings from his review.

Meanwhile, the UK is haemorrhaging jobs thanks to the national insurance rise, and we have the Employment Rights Bill coming down the track. The OBR did not even include in its forecast the likely impact of the unemployment Bill that Labour is introducing. That is something we can look forward to in the autumn.

We are in a deep fiscal hole, and of course we need welfare reform—in fact, we need welfare cuts. That is why the Opposition wanted to support the Government when they set out their intentions, and we said that we would support the Bill if they reduced spending, got more people into work and pledged that there would be no new taxes, but they did none of that, so we do not support it. We do, however, have a further set of proposals.

My friend, the hon. Member for Hendon (David Pinto-Duschinsky), challenged me to come up with some alternatives, and we have some amendments to that very effect. First, amendment 45 would improve the quality of assessments. There is a bigger piece of work to be done, and I welcome the Government looking closely at the assessments process, but right now we could make one clear and simple improvement. In 2019, 84% of PIP assessments were conducted face to face; last year, the figure was 5%. That was a covid change—[Interruption.] That was absolutely a covid change that was not changed back in time; I totally agree. The fact is, the work-from-home culture really took off at the DWP and with its subcontractors, and that does need to change. I recognise that. Why are the Government not doing that?

As a result, in the system we have, which is not being changed by the Bill, people are at the mercy of some distant, faceless assessor on the end of the phone. Of course, there will be people who cannot manage a face-to-face assessment, and we would authorise the Secretary of State to specify circumstances for that. It is also right not to call people back for repeat assessments. That was a change that the Conservatives were introducing, and I am glad that the Government are sticking with it. But, for the great majority of cases, we have got to get back to face-to-face assessments for the sake of claimants as well as the taxpayer.

Secondly, I turn to amendment 50. We have 1,000 new PIP claims a day—that has doubled since covid—and more than half the increase is in mental health cases. For UC health claims, it is more like three quarters. Of course, distress is real in our society and it is rising—I do not disparage the reality of many of these claims—but as the Minister has said the incidence of disability in our society is rising by 17% while benefit claims are rising by 34%. For some of the less severe mental health claims, it is far worse. In January 2020, there were 7,000 claims for people with anxiety disorders; this year, there are 31,000. In January 2020, there were 155,000 claims for anxiety and depressive disorders mixed; now there are 365,000. Autism was 60,000 and has gone up to 183,000. The hon. Member for Sheffield Hallam (Olivia Blake) mentioned ADHD, which has gone up from 29,000 to 115,000 over the last five years.

[Nadia Whittome]

I wonder whether the shadow Minister realises that according to the DWP’s own statistics the PIP fraud rate is 0.2%. I do not want him to feel like a mug.

[Danny Kruger]

I am not talking about explicit fraud. These awards are being given, and no doubt the assessment is judging them to be eligible. There is not necessarily a deliberate attempt to defraud the system. What we have done is create a system whereby one is incentivised to seek higher and more expensive claims.

Welfare Reform

Nadia Whittome Excerpts

Monday 30th June 2025 Commons Chamber

[John Glen (Salisbury) (Con)]

I think that the vast majority of people in this country believe in a welfare system that is compassionate to the vulnerable, and particularly to the disabled, but they can no longer understand why so many people here—in contrast to other similar countries—are in this situation where they are not working.

[Nadia Whittome (Nottingham East) (Lab)]

It’s because you were in power for 14 years.

[John Glen]

Yes, we were in power for 14 years, and during covid, when I was a Minister, we made decisions such as stopping face-to-face assessments because we could not do them. We all recognise that the recovery from that covid time has not gone as well as it should, but if the Secretary of State cannot deliver a shift in the numbers, the economy will be in a death spiral. She needs to recognise that these changes need to be reset radically to meet the country’s expectations.

--- Later in debate ---

[Liz Kendall]

I say to my hon. Friend, for whom I have great respect, that none of this takes into account the biggest ever investment in employment support for sick and disabled people. People have often said, “Wait for the OBR’s assessment,” but we have published very clear evidence that good employment programmes can help disabled people into work—programmes such as Work Choice, a Labour programme ended by the Tories, which saw 40% more disabled people in work for eight years. That is based not just on economic theory, but on practical reality. That is the difference that this Labour Government want to make.

[Nadia Whittome]

Disabled people’s organisations have been clear that even with these concessions, they oppose this Bill. The Government talk of co-production of the PIP review, but it is not co-production if the starting point is delivering cuts, and if the Government are asking disabled people where they would prefer those cuts to be, rather than how we can create a system that truly supports disabled people. Does the Secretary of State not accept that, after months of the Government ignoring disabled people, the only way that meaningful co-production can take place is if the Bill is pulled and they go back to the drawing board?

[Liz Kendall]

I gently say to my hon. Friend that we will protect existing claimants. That is the very purpose of the announcements we have made today. No existing PIP claimants, or people receiving universal credit and the health top-up, will be put into poverty as a result of this Bill—far from it. We are changing the system so that many more sick and disabled people who want to work can actually get work. That is about building a better life in future. This Labour Government believe that if someone can work and wants to work, they should have the chance and choice to do so. Some 200,000 sick and disabled people say that they would work right now with the right help and support. We are not cutting the support for that; we are actually increasing it, because we believe that work is the key to a better life.

Winter Fuel Payment

Nadia Whittome Excerpts

Monday 9th June 2025 Commons Chamber

[Torsten Bell]

The point about certainty for pensioners is important—I think that is the point the hon. Gentleman is making. As I said earlier, we are setting the £35,000 threshold so that people become aware of it in the coming months. It is a round number, and we do not intend to change it in the years ahead, although further in the future, yes, there will be questions about uprating, which will be considered in the normal way.

[Nadia Whittome (Nottingham East) (Lab)]

I welcome the fact that the Government are responding to the huge public pressure and are expanding eligibility for winter fuel payments. I am concerned that we are about to make a similar mistake, which, once again, we will come to regret, in cutting disability benefits. Will the Treasury drop those cuts before they cause harm to our constituents, instead of reversing them after the fact? I have listened carefully to what my hon. Friend has said. To be clear, I am not asking him to keep the status quo, or to not support people into work; I am simply asking him not to cut disabled people’s benefits.

[Torsten Bell]

I thank my hon. Friend for her question, and we always have interesting conversations. The Minister for Social Security and Disability will have heard the point she made. I gently say that the number of people receiving personal independence payments is forecast to continue to grow in every single one of the years ahead. That is after changes were set out by this Government. That important point sometimes gets lost in this debate.

Personal Independence Payment: Disabled People

Nadia Whittome Excerpts

Wednesday 7th May 2025 Westminster Hall

[Nadia Whittome (Nottingham East) (Lab)]

The Government claim that the proposed cuts are about getting disabled people into work, but they have provided no evidence that they will result in significantly more disabled people in work. Even if that was the result, there would still be some disabled people who are unable to work. They deserve support too, but under the proposals, many of them would not receive it. The proposed disability cuts mean more poverty, suffering and hardship for disabled people.

One young person living with mental illness told Just Treatment, which I hosted in Parliament yesterday:

“I feel suicidal when I get caught up in the thoughts of losing this life changing support.”

Another says that she will not be able to access

“food, shelter, and vital care”

for her condition. A third young person says:

“I am terrified they will take my PIP away, that I will end up homeless, and my only option will be suicide.”

We should be in no doubt that these proposals will cost lives. That is not hyperbolic: the benefits system has already been a key factor in the deaths of disabled people such as my constituent Philippa Day, who tragically took an overdose and was found next to a letter from the DWP refusing a home assessment visit.

If the Government go through with these disability benefit cuts, they will be making a huge mistake that the public will not forgive us for. We must be true to our values as a party and stand up for the whole of the working class, including disabled people, whether they are in work or not. It is not too late for the Government to drop these cuts. If they do not, I will vote against them.

--- Later in debate ---

[The Minister for Social Security and Disability (Sir Stephen Timms)]

I am pleased to serve under your chairmanship, Dr Allin-Khan. Like everyone else, I congratulate my right hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott) on securing the debate and on the way she introduced it. I pay tribute to her for her consistent focus on this very important topic for a long time. To everyone who has spoken, I say that it is absolutely right to be passionate about this topic.

The “Pathways to Work” Green Paper, published in March, set out to deliver three things with a properly thought-through plan—contrary to what the hon. Member for East Wiltshire (Danny Kruger) just said. First, we will provide proper, tailored employment support for people who are out of work on health and disability grounds, with the biggest reforms to support for a generation and a funding commitment rising to an additional £1 billion a year by the end of this Parliament.

Secondly, we will remove the disincentives to work that were left behind in the benefits system by the previous Government’s haphazard benefit freezes, which forced too many people to aspire to so-called limited capability for work and work-related activity status, when it should be supporting people to aspire to work and providing the support to enable them to achieve those aspirations. As has been mentioned, we have announced the first ever permanent real-terms increase in the universal credit standard allowance.

Thirdly—this is where we have focused in the debate—we will make the costs of PIP sustainable and address the unsustainable increases that have led to an almost doubling of the real-terms cost of the benefit, from £12 billion to £22 billion, since the year before the pandemic. Last year alone, it increased by £2.8 billion beyond inflation. I think everybody who has spoken would recognise that we simply cannot let that trend carry on.

I think I am right in saying that 30 years ago my right hon. Friend the Member for Hackney North and Stoke Newington and I served together on the Treasury Committee. She knows as well as anybody the need for funding to be sustainable. It is not in the interests of those for whom PIP is a lifeline, in anything beyond the very short term, for the Government simply to allow the costs to rise as they have done over the last five years.

[Nadia Whittome]

Will the Minister give way?

[Sir Stephen Timms]

I will give way just once, as that is all I can manage.

[Nadia Whittome]

Has the Minister seen the latest analysis from the New Economics Foundation, which estimates that fewer than 50% of disabled people are claiming these benefits, and that the acceptance rate has remained static? It is not actually the case that people are claiming who should not be claiming: people are claiming benefits to which they are entitled.

[Sir Stephen Timms]

My hon. Friend is absolutely right. The people who are getting PIP are the people who meet the criteria. My point is that we cannot simply carry on increasing spending at the current rate. That has to be addressed.

I well understand the concerns among people who claim PIP, and I want to take the opportunity of this debate to address those concerns. We are talking to disabled people, disability charities and disabled people’s organisations. The Green Paper consultation will continue until the end of June, and a White Paper will follow later this year. But we need to act ahead of a White Paper. Claims to PIP are set to more than double this decade, from 2 million to more than 4.3 million. That increase is partly accounted for by a 17% increase in disability prevalence, as mentioned, but the increase in the benefit caseload is much higher. It would certainly not be in the interests of people currently claiming the benefits for the Government to bury their heads in the sand over that rate of increase.

Following the Green Paper, we are consulting on how best to support those affected by the eligibility changes. We are looking to improve the PIP assessment; as mentioned, I will lead a review of that. The current system produces poor employment outcomes, high economic inactivity, low living standards and high costs to the taxpayer. It needs to change. We want a more proactive, pro-work system that supports people better and supports the economy as well.

I will turn specifically to the changes to PIP eligibility. PIP is a crucial benefit that contributes to the extra living costs that arise from disability or a health impairment. The changes we have announced relate to PIP daily living; the PIP mobility component is not affected. We are clear that the daily living component of PIP should not be means-tested, taxed, frozen or anything else that has been suggested. We are committed to continue increasing it in line with inflation. For the majority of current claimants, and categorically for the most vulnerable, who have been highlighted in this debate, it will continue to provide, in full, the support that it currently provides. Employment support for those who are able and want to work will be substantially improved as well.

As has been referenced, we have published data that shows that just over half of those who claim PIP today scored four points in one daily living activity in the last PIP assessment. Understandably, as we have heard, almost half of those who currently claim the benefit will be concerned that they will not be eligible in future. However, we have also published the Office for Budget Responsibility’s assessment, which is that by 2029-30 only around 10% of those who currently claim the daily living component of PIP will lose it as a result of the changes. That is the assumption that has gone into the spending forecasts. We are projecting that spending on PIP will continue to increase in real terms every year, but not at the unsustainable rate of the last five years.

“Get Britain Working” White Paper

Nadia Whittome Excerpts

Tuesday 26th November 2024 Commons Chamber

[Liz Kendall]

The whole point of devolving responsibility and accountability to mayors and local leaders is that they will know best the organisations that they need to involve in tackling economic inactivity, delivering the youth guarantee and embedding jobcentres into local communities. There is an additional £900 million in the shared prosperity fund for 2025-26, and that is a key element that we need to join up with the rest of these measures, but if the hon. Lady will write to me with more detailed information, I shall be happy to look at it.

[Nadia Whittome (Nottingham East) (Lab)]

Barriers to employment and a lack of workplace support for disabled people remain persistent challenges, along with inadequate social security payments for everyone regardless of employment status. Can my right hon. Friend reassure disabled people that the Government’s new support measures will not be conditional on their being able to work, and that no one will be sanctioned for non-attendance at medical appointments?

[Liz Kendall]

Sanctioning people because they use the NHS to make themselves as fit and healthy as possible is completely the wrong approach. I understand why disabled people are worried when they hear talk about helping people into work or reforms of sickness and disability benefits—they are worried because of what has happened over the past 14 years—but we are determined to break down those barriers to work. I think that many disabled people, given the right help and support and the right flexibility to work, could work and would want to work. That is what we are focusing on, and that is what we are determined to deliver.