Universal Credit and Personal Independence Payment Bill

Neil Coyle Excerpts

2nd reading
Tuesday 1st July 2025 Commons Chamber

[Mrs Badenoch]

The fact that the Government have refused to commit to not raising taxes means it is probably inevitable that they will. However, it is quite clear that Labour MPs will feel emboldened to push for more unaffordable changes to our welfare system, including the two-child benefit cap.

Let us be clear: part of the reason why these plans have been so rushed and badly thought through is the mess the Chancellor has made. This Bill is an attempt to find the quickest and crudest savings possible—to plug the hole in the public finances that she has created—but the Chancellor is not the only one to blame. It beggars belief that the Labour party came into office after 14 years in opposition with no serious plan for reforming welfare. What was Labour doing all that time? The welfare bill is already totally unsustainable, and it is only getting worse.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

As one of the Labour Back Benchers who will be supporting the Government, I would just point out that there are not that many Back Benchers behind the Leader of the Opposition, and there are fewer every week. However, given that she has just said that she wants to cut the budget of the Department for Work and Pensions further, perhaps she could tell us what she would cut. What exactly would she do?

[Mrs Badenoch]

We would cut unemployment.

As I was saying, health and disability benefits are forecast to rise to £100 billion, meaning that one in every four pounds raised in income tax will pay for those benefits. That is not sustainable. Until the pandemic, we in the Conservative party had spent years bringing down the benefits bill and getting people back into work, including millions of disabled people. Talent, energy and ingenuity are not confined to those in perfect health. If we want to afford public services, improve people’s lives and compete globally, we cannot consign so many people to a life out of work—we have to get them into work. I believe that the whole House agrees that the system needs change. We may disagree on what exactly that change looks like, but what we have in front of us today is just a big mess.

--- Later in debate ---

[Steve Darling (Torbay) (LD)]

I associate myself with the speech just made by the hon. Member for York Central (Rachael Maskell). The Liberal Democrats will be supporting the reasoned amendment that we are now debating.

Over the past few weeks that the Green Paper has been under debate, some of the comments from Labour high command, such as describing Labour Back Benchers as “noises off”, have been disturbing in the extreme. People who should know better within the leadership of the Labour party described PIP as “pocket money”, which is utterly shameful. The way the Bill is being dashed through is equally shameful, and it decreases the credibility of Ministers. If the Bill is fine, it should have appropriate levels of scrutiny. We all know that rushed Bills are poor Bills, and the law of unintended consequences will come to haunt the Government if this Bill goes through.

As has been alluded to, this two-tier approach to the system is wrong. I and the Liberal Democrats have grave concerns that it is un-British, unjust and not the way of our world. We have heard the Minister saying that it has been done before, but that does not make it right. It is almost Orwellian that we will have a system where in our law we say that all disabled people are equal, but some are more equal than others.

[Neil Coyle]

Is the hon. Member saying that he regrets the Liberal Democrat-Conservative coalition establishing PIP and abolishing disability living allowance? The Leader of the Opposition gave the example of someone with Parkinson’s. Someone with Parkinson’s who is over 65 could be on DLA, PIP and attendance allowance. Does he regret that decision? Should that situation not exist?

Universal Credit and Personal Independence Payment Bill

Neil Coyle Excerpts

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

It is telling that the Secretary of State has not matched these spending increases with robust plans to tackle fraud and error, or tie any uplifts with measures to help people back into work. In short, the Secretary of State has failed to ensure that there are clear performance measures in place to guarantee value for money for the taxpayer. Without that, taxpayers will continue on their slippery slope of simply paying more while getting less.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

Will the right hon. Member give way on that point about fraud?

[Graham Stuart]

If the hon. Gentleman, who is so energetically rising from his place, can tell us how he is committed to ensuring that the public finances of this country are kept in a healthy state, I and the House look forward to it with bated breath.

[Neil Coyle]

I am really intrigued, Madam Deputy Speaker, because the right hon. Member suggested that he has a concern about tackling fraud and responsibility in public finances. Can he tell us where he was under the previous Government when fraud in the benefit system hit its highest level ever seen in the history of the UK’s social security system? Where are his references in Hansard? Where was he on Bill Committees and in this House when that fraud was soaring? And where was he when this Government began passing legislation to tackle that horrific level of irresponsible fraud in the benefit system?

[Graham Stuart]

The hon. Gentleman will know that, as the benefit system grows, the likelihood is that fraud will grow within it. I applaud all efforts to crack down on fraud. I want to see greater efforts by those on the Front Bench to do that, but he knows that it is those sitting on the Back Benches who are now calling the shots.

Ultimately, all roads lead back to the Treasury. The truth is that the Bill is not the product of serious policymaking—neither in its inception nor its eventual outcome, gutted and filleted as it has been by a triumphant left in the Labour party. Instead, it is the product of panic—a rushed response to economic pressures caused by a feeble Chancellor who has brought the economy to a halt. It has been written not with reform in mind, but with rebellion in the rear-view mirror. The result is a muddled, mean-spirited piece of legislation that satisfies no one, least of all the vulnerable people who will suffer under it, or the British taxpayer who will pay for it.

--- Later in debate ---

[John Milne]

Yes, I agree that that is an additional concern.

The implication has been made, both by this Government and the previous one, that much of the rise in claims is down to benefit chasing and people simply exaggerating their conditions. This is an assumption that needs serious interrogation because it looks to be substantially untrue. For all these reasons and more, the best course of action would be to pull the Bill now and to make a fresh start. Denying adequate support today will only shift the burden tomorrow on to social care, the emergency services and our already overstretched NHS. We have been warned by the UN not once, but three times, that our welfare system is failing disabled people. Amendment 36 is a chance to show that we are listening.

[Neil Coyle]

I am concerned about some of the amendments before us today, in particular those that call for delays to legislation. We are one year into a five-year term—20% of this Parliament is gone—and the public need to see progress, not further delay.

I am mindful that Ministers have already done a huge amount of heavy lifting to rebuild trust with disabled people and disability organisations since the election. We should all recall that in July 2024, the Department for Work and Pensions was under formal investigation by the Equality and Human Rights Commission for unlawful treatment of disabled people. This Government have made considerable progress since then in trying to rebuild trust, including through measures in this Bill and linked to it, such as abolishing the work capability assessment. I have been here for 10 years—some might say it feels like longer—but before entering this place, I campaigned, as the chair of the Disability Benefits Consortium, to abolish the work capability assessment. I know that disabled people and their organisations are grateful and thankful for the inclusion of that measure in the wider package that the Government are bringing forward.

Although it seems to have been lost in some of the debates we have had on the subject, I am also mindful that in my own constituency, the number of claimants for PIP will rise in this Parliament, spending on that will continue to rise in this Parliament, and the 12,700 universal credit claimants in my constituency will get an additional payment under this Government’s plans, which will be the first ever above-inflation rise in universal credit. There is much to gain and much that is supported by disabled people and their organisations in the package that the Government have brought forward.

I particularly welcome the Government’s commitment to support more disabled people into work. We need to challenge ourselves a little more in this place about some of the language of vulnerability. Being seen automatically as vulnerable because of a health condition or impairment is not in line with the social model of disability. Many disabled people find that patronising and offensive, and we need to update our system, just as we updated our system thanks to previous Labour Governments. We had the first ever blind Secretary of State in David Blunkett—now Lord Blunkett—at a time when the benefits system said that blind people were not required to participate in work-related activity. The benefits system is not a static beast: it is an evolving creature that needs to be updated to reflect changes in assistive technology, medication and adaptation and advances in technology.

We must not end up with a system in which people are written off and parked in a system because it is too difficult to get them into work. That is not a Labour solution. We are the party of full employment, which must and should include disabled people if we are committed to disability equality and if we are the party of progress. I will chip in that this party takes no lectures on what is progressive from nationalists, whether it is Scottish nationalists or the populists in Reform. We see the costs to disabled people of parking under the former benefits system and legacy benefits: the longer that somebody is out of work, the more ill health that they experience, including mental health and depression, and the more costs that they incur for the NHS. There are state benefits and individual benefits for getting the right support.

I speak from rather too much personal family experience. My mum has schizophrenia and my dad had a stroke in his 40s. He was told by the jobcentre, “This is what you will get. Now, basically, sod off—we do not want to see you, and we do not expect to provide you with anything.” He found his own way back into work through going to university as a mature student—well, not that mature—at Newcastle University, and he graduated in the same year as me.

We should look at the wider picture of full employment. I particularly welcome the Government’s broader aim of reducing the disability employment gap, which was deeply neglected for 14 years, and transforming jobcentres from benefit administration centres. They had been failing not because of a lack of will or frontline staff, some of whom are absolutely excellent, but simply because the job they were given to do had changed from being about supporting people into work to simply administering a failing system that, as we discussed earlier, had the highest fraud levels ever seen in the UK social security system.

I think most of us believe that disability equality is measured not in the amount of benefits that individuals receive, but in the shared opportunities and access to life chances open to all in our country. I am deeply mindful of that, because while we had a lost generation under the 14 years of the Conservative Government and the Lib Dem coalition Government, we had a previous Government who were deeply committed to those issues. That Government published a report, 20 years ago today, called “Improving the life chances of disabled people” with an implementation and delivery date that was meant to provide those opportunities and equal access by 2025. Sadly, those coalition and Conservative years set back the clock.

The report is still available to all those who want to see it, and it talks about pathways to work and dedicated employment programmes being necessary, such as the new deal for disabled people. Those programmes were largely demolished by the coalition. It talks about the importance of the role of the NHS, GPs, occupational health and rehab. Again, a Labour Government are now fixing the wider NHS problems to make those aims and objectives deliverable today. The then Prime Minister’s strategy in the report committed to changing the system so that it tested functionality and ability to contribute, rather than writing people off. Again, this Government have had to come back to that after a lost decade.

We had a report 20 years ago that talked about the necessity of a better equipment system and the need to improve access to work—something that Ministers are committed to today and are beginning to transform with faster assessment processes and by delivering the kit needed. The report also talks about the importance of engaging with employers and the positive role that Jobcentre Plus could play in engaging employers early in the process. Sadly, we have seen a long delay in delivering those improved life chances, but this is a Labour party back in government and trying to deliver disability equality and improve the life chances of disabled people. The measures in this Bill are integral to that aim.

As I say, I am concerned about some of the amendments before us. I also have some concerns that the Bill needs to go further in tackling barriers to work for disabled people, such as the benefits structure, including for those in supported accommodation. It is great that we have the right to try, but more is necessary. We also need to go a bit further with employers, including around reasonable adjustments and ensuring that employers do not accept resignations based on ill health immediately, but look at the packages of support that might be necessary, as well as working with them to tackle discrimination. The Federation of Small Businesses in particular, which has done work on this issue previously, would be a really useful partner to have going forward.

[Several hon. Members rose—]