Universal Credit and Personal Independence Payment Bill

Stella Creasy Excerpts

2nd reading
Tuesday 1st July 2025 Commons Chamber

[Emma Lewell (South Shields) (Lab)]

I thank my hon. Friend the Member for York Central (Rachael Maskell) for her diligent and careful work over recent months. I am sad that we have ended up here. No matter what, and regardless of the concessions, a vote for this Bill today is a vote to plunge 150,000 people into poverty and to tighten the eligibility criteria for those who need support the most.

Some of us have been here before. In 2015, when the Tories pushed through their Welfare Reform and Work Bill, I and other colleagues were persuaded to vote for it on the promise that we could change it in Committee. It did not change, and although we voted against it on Third Reading, the damage was done, because the nuances of the stages of a Bill are completely lost outside this place. The result was that the savings predicted never materialised and employment levels did not increase. Instead, there was an increase in poverty, an increase in suicides, strain on the NHS and other public services, and, in the long run, higher welfare spending and reduced growth.

[Ms Stella Creasy (Walthamstow) (Lab/Co-op)]

My hon. Friend is making an incredibly powerful case. None of us should take any lectures from the Conservatives. She and I were here when the bedroom tax was introduced. We can have many moral arguments about welfare reform, but the bedroom tax saved very little in the end, which shows that this way forward is not the way to help people into work and ultimately cut our welfare bill.

[Debbie Abrahams]

I remember well the UN rapporteur saying that the Conservatives were engaged in cruelty towards people in this country who needed help the most.

What I cannot fathom is why a Labour Government are not first putting in the support and then letting it bed in, which is what will reduce the welfare bill and increase employment levels. The impact of any cuts would then not be as drastic. The starting point should never be cuts before proper support. The review led by my right hon. Friend the Minister for Social Security and Disability, who I have a lot of respect for, is starting to look a little bit predetermined as the change in criteria will happen at the same time as the review concludes. It remains unclear how existing claimants with fluctuating conditions will be assessed, and the impact that these changes will have on the carer’s allowance. However, we do know that disability living allowance claimants and those on other legacy benefits will be assessed under the new criteria, putting almost 800,000 disabled children at risk of losing support.

The north-east region has the highest number of disabled people in England, and the number of people searching for work outpaces the number of available jobs. How on earth will cutting the health element of universal credit incentivise those people to go out and find a job that does not even exist? Since PIP is an in-work benefit, restricting the very support that could keep people in work will only help to increase unemployment. All of this for £2.5 billion of savings, when we know that savings can be made elsewhere and when we know that those with the broadest shoulders could pay more. Instead, we are once again making disabled people pay the price for the economic mess that the Conservative party left us.

As it stands, we are being asked to vote blind today. There is no new Bill, no new explanatory notes and no fully updated impact assessment. There is no time for sufficient scrutiny, and no formal consultation has taken place with disabled people. The majority of employment support will not be in place until the end of the decade, and Access to Work remains worse than ever before. We are creating a two-tier, possibly three-tier, benefit system, and we know for certain that disabled people are going to be worse off. This is not a responsible way for any of us to legislate. It is predicted that disabled people will lose on average £4,500 per year, yet we know they already need an extra £1,095 per month just to have the same standard of living as those in non-disabled households. There is a reason why 138 organisations representing disabled people are against this Bill, and there is a reason why not a single organisation has come out in support of it.

I am pleading with MPs today to please do not do this. For those on my own Labour Benches, staying loyal to your party today may feel good in this place, but once you go home and are in your individual constituency, the reality of this will hit—and it will hit very hard.

Universal Credit and Personal Independence Payment Bill

Stella Creasy Excerpts

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

[Graham Stuart (Beverley and Holderness) (Con)]

It is a pleasure to take part in this debate.

The Bill is being rushed through by a Labour Government desperate to paper over the cracks in an economy that they themselves have brought to a shuddering halt. So many of the questions that are coming before the House at the moment are the result of that economic flatlining and the flailing of a Government who are casting around desperately to see how they can get themselves off that economic hook.

Put simply, the Bill is unaffordable. The Prime Minister’s latest concessions to his unruly Back Benchers—now happy and victorious—have left the Exchequer with a £5 billion gap to plug, which inevitably means higher taxes for hard-working families who are already feeling the pinch. Far too few of those voices will be heard today. Too often in debates in this House, Members are consumed with the idea that more spending is a better thing that can always be afforded, and therefore no responsible decisions need to be made. That was the decision of the Labour Back Benchers who wrested from those on the Front Bench control of one of the flagships of this Government’s agenda, leaving the Government—massively endowed as they are with Members of Parliament—like some gigantic ship that has lost all power and propulsion, listing at sea, waiting for the next wave to come along.

[Ms Stella Creasy (Walthamstow) (Lab/Co-op)]

rose—

[Graham Stuart]

As we in this Chamber know, the next wave that comes along and buffets this Labour Government from the left comes all too often from the hon. Member for Walthamstow (Ms Creasy), to whom I am happy to give way.

[Ms Creasy]

I thank the right hon. Gentleman for giving way. I hope he is not suggesting that the hard-working families who use PIP to be able to get to work are not voices that we should hear in this Chamber.

[Graham Stuart]

I absolutely agree with the hon. Lady that we should consider such people. I think of the lady who came to see me on Saturday at my street surgery. She was concerned about the brutality of the PIP process and the way that she and her husband, who has a degenerative, progressive disease for which there is no cure, are put through the wringer to justify their situation, which anyone with any common sense would see deserves support. But the hon. Lady will be aware of the mushrooming in claims from those with various levels of mental health challenges.

Ultimately, we must balance looking after people with degenerative, progressive diseases in a humane and civilised manner with making sure that we have a system that cuts out fraud, and that seeks to minimise those who do not need aid seeking it and getting it. If only we could have a system in which people did not claim for money that they do not deserve and need, we would be able to look after the people whom I think—this is one area of commonality between the hon. Lady and me—both she and I would agree require fairer and more generous treatment.

--- Later in debate ---

[Ms Creasy]

At Committee stage, we often table amendments to try to understand the nature of the legislation. Many questions are being put forward in this concertinaed process. The first is whether we should make policy by phone-in rather than on an evidence base. That is the only justification I can see for new clause 12 tabled by the Opposition, who appear not to understand that no recourse to public funds guides the lives of many migrants in our community. It contains a fundamentally un-British perspective on people who come here and work for many years in our national health service, and who then have a stroke or perhaps develop MS. Under the Opposition’s proposals, we would deny such people the support they have paid into as taxpayers. It is a dog whistle so loud that I fear the dogs in Battersea right now are having a terrible time. We should not make policy by phone-in but by evidence, and I pay tribute to the incredible words of my hon. Friends the Members for South West Norfolk (Terry Jermy) and for Beckenham and Penge (Liam Conlon), who bring their own experiences to this debate.

I will speak to new clause 4, which I tabled, as well as to other amendments. Those amendments come from my experience of what makes good policymaking in this place and from my concern that we need to protect our constituents from the vagaries of public policy. I think in particular of a 62-year-old constituent of mine who is physically disabled with a mobility condition called ankylosing spondylitis—I will tell Hansard how to spell that. She works full time and lives alone in a rented flat that has been adapted for her. Removing, messing around with and playing with her benefits—as this Bill would do for millions of people around this country—will not save money; it will simply cost more. My constituent would struggle to get to work and to look after herself, which she can do using the welfare support that she gets under the current system. That means we will face higher costs in the long run.

I wish that Members would learn from the evidence on the bedroom tax. The bedroom tax was brought in under the same metric that we heard from the right hon. Member for Beverley and Holderness (Graham Stuart), who is no longer here—that somehow people who are supported by our welfare system are probably making it up. This is not a moral argument I am making; the bedroom tax did not save the money it was meant to save, because it just pushed costs into other parts of the public sector. That is why it is so important that agree to new clause 4 and weave the principles of the UN convention on the rights of persons with disabilities into this legislation. It should be guided by principle not prejudice—in particular the principle that we should respect our fellow human beings and our constituents who have a disability.

New clause 4 covers the question of co-production, and on this point I am sorry that my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball) is not in her place. I want to come back to that question, because there is a very important principle about co-production that we have not bottomed out, and I want to hear from the Minister about it. There is a simple premise that we signed up to in the UN convention, which I hope Members across the House would support, that there should be an adequate standard of living—that is identified in article 28. Crucially, article 19 also sets out that there should be an independent living process for our disabled constituents. That is why in 2017, 2024 and indeed 2025, when the UN criticised the previous Government, we rightly held them to account for it. What do we wish for our disabled constituents, if not an independent and equal standard of living? What do we wish for them, if not the basic human right to be treated equally? We must recognise that the world we live in does not work for them, and we must account for that through our welfare system so that they can live freely and, yes, play a part in the world of work while also living with dignity.

It is about very practical things, such as the freedom that comes from someone having a carer who helps them get dressed so that they can go to work. That is supported by our welfare system. It is also about travel costs, especially for those living in my constituency, where Transport for London seems to be hellbent on breaking down all of the stations so that they are not accessible. Covering those costs means that someone can go out to see family and friends. There is also the food that someone might need if they have a condition like phenylketonuria—a metabolic condition that means a person needs a low protein diet. These are not equal experiences, but by using our welfare state to support those people, we can have ensure that they have the human rights we wish them to have.

New clause 4 is about giving due regard to the principles set out in the UN charter so that benefits are calculated in a way that means they are sufficient to allow people to live a life of freedom equally alongside their fellow human beings. The payments we make must meet those tests so that disabled people in our communities can meet their living expenses. That is a question that many hard-working people who are struggling at the moment in their lives can recognise well.

It is about levelling the playing field. It is not, as the right hon. Member for Beverley and Holderness said, about making fools of us all. Those are principles that I hope the Government will commit to weaving throughout the legislation. That is why new clause 4 matters: it goes beyond the principle of co-production, which I know the Minister has recognised, to the basic principle of how we treat people. That would apply to the universal credit health element of the Bill. If we restricted a benefit, it would call on us to ask why we consider somebody to need X amount at this point in time but Y amount in the future, and to ask whether that will live up to the required standard of living.

I want to touch on co-production in particular. Many have talked about it, but people do not necessarily understand what it means. It is not consultation. Co-production means that whoever is included can say no as well as yes. Without a power of veto, all we have is a better managed consultation. Co-production genuinely empowers every participant to shape things, because they can walk out of the room as well as being part of it.

The Minister has talked about seeking consensus, but it is not an equal relationship if disabled people are not given the clear power to veto what is put on the table, such that the Government have to work with them so that they do not use their veto. That is the principle of co-production—that is why it is not consultation—and that is what we should be seeking.

I have much sympathy for new clause 8—I am sorry that my right hon. Friend the Member for Hayes and Harlington (John McDonnell) is not in his place—because I was here in 2015 when George Osborne used statutory instruments to slash the tax credits that our constituents relied on and 3 million people were pushed further into poverty. I was also here when MPs on both sides of the House expressed frustration about the use of that process. We had to watch the House of Lords clear up our mess and stand up to the Chancellor for using delegated legislation to take £1,300 away from our constituents. I hope the Minister will understand that this is not about this individual Bill or even about his good intentions; I know that he has engaged with all of us. It is about the principle that if we are to change the law, we should be able to amend and adjust that law and scrutinise it on behalf of our constituents.

My hon. Friend the Member for Sheffield Hallam (Olivia Blake) set out many alternative ways in which we could switch spending to invest in order to save money in the long run. There are many different ways in which we can support our economy to grow; it does not have to be off the backs of our disabled constituents. There is also the important principle here—I know many on the Labour Benches believe this—that socialism is the language of priorities. Our priority must be to empower and enable every single one of our constituents to achieve their potential—and yes, that happens through a growing economy, and also through a welfare state.

I hope that the Minister will address the amendments that seek to ask questions about how we get this right. For many of us those unanswered questions are troubling —we cannot bring back answers for our constituents—because they tell us that we may not achieve those things that I have set out. None of us who have lived through George Osborne and the bedroom tax ever want to go back to that again. We want to be able to say to our constituents, who might find themselves in the position of the father of my hon. Friend the Member for South West Norfolk, that we can absolutely be proud of the system we are building today, just as we are proud of my hon. Friend himself.

[Alison Hume (Scarborough and Whitby) (Lab)]

I rise to speak in support of new clause 11 and amendment 38. I am incredibly relieved that the Government have listened—most importantly, they have listened to the people who will be affected by changes to PIP—and taken clause 5 out of the Bill. The terms of reference for the Timms review have already been set without involving disabled people, but there is a chance with new clause 11 to ensure that it moves forward in a truly co-produced way. What worries me is that without the proposals in the new clause, the Bill highlights the need for co-production but provides no assurances that it will be comprehensively done. Disabled people must feel that any changes to the welfare system are made properly with them rather than done to them.

I have walked in the shoes of families in my constituency bringing up children with special educational needs and disabilities. For decades, my son and I have been caught up in the endless cycle of assessments, mandatory reconsiderations and tribunals. That is a situation familiar to many who have turned to the DWP for help to manage life with a disability or disabilities.

This is the reason that so many disabled people are terrified of the Government’s proposed changes: the DWP is too frequently at war with the people it is supposed to protect. Too frequently, it lets down the most vulnerable in our community, and it mostly gets away with it. Recently, the incredible Joy Dove won an eight-year legal fight to link her daughter Jodey Whiting’s suicide to the stopping of her benefits, which the DWP admitted was a mistake. Jodey’s avoidable death is not the only one.

DWP decisions often seem to be completely arbitrary. Once, when I was waiting to go into a tribunal, I received a call from the DWP offering to reinstate my son’s benefits if I dropped the tribunal. That experience cemented in my mind something that I believe to this day: the culture of the DWP is hostile to disabled people. That culture must change if we are to have any chance of building a sustainable, fair and compassionate welfare system for the future.

A constituent of mine in Scarborough and Whitby suffers from a variety of complex physical and mental health conditions, including PTSD, attention deficit hyperactivity disorder, anxiety disorder, polycystic kidney disease and liver disease. In May, after reporting a deterioration in his health, he submitted new evidence to support reassessment for a higher rate of PIP, which led to the DWP removing his award entirely. He was left with no income or support despite his ongoing need for care.

This is the reality: many disabled people who are turned down for PIP rely on the health element of universal credit. Many of my constituents have fluctuating conditions, such as MS, ME and mental health conditions. The reality of their conditions means that during periods of remission they return to employment. However, once their condition deteriorates, they return to universal credit. If that happens, with this Bill they would return on a lower level than before, down to just £50 a week. That completely ignores the realities faced by disabled people and their experience of their conditions. Without the protections provided for in amendment 38, we would create a two-tier system where people with unpredictable conditions would be valued less than those with more predictable ones.

I urge hon. Members to support new clause 11 and amendment 38. I also ask the Government to please pull the Bill. Even at this late stage, let us get it right for the people who really matter; let us get it right for disabled people.

--- Later in debate ---

[Graham Stuart]

rose—

[Ms Creasy]

rose—

[Sir Stephen Timms]

Let me make just a little more headway. I will give away a little bit later.

As my hon. Friend the Member for Penistone and Stocksbridge and I have discussed, I do not agree that the review must be finished within 12 months. We want to complete the review by autumn of next year, and with no four-point threshold, I do not think it is in anybody’s interest to rush it. I accept her proposal, in subsection (4) of her new clause, for a group to co-produce the review, not so much to provide independent oversight as to lead and deliver it. I will chair the group, and we will work with her and others to include disabled people with lived and professional experience in its leadership and in shaping its meetings, with around a dozen members and with capacity to engage others as needed on specific topics.

My hon. Friend has made helpful suggestions for who some members of the group might be. We will want disabled parliamentary representation to be involved in the process as well, and arrangements to involve disabled people more broadly. I agree with her that the majority of the group’s members need to be disabled people or representatives of disabled people’s organisations, and that they need to be provided with adequate support, including towards their costs of travel and taking part.

--- Later in debate ---

[Sir Stephen Timms]

The hon. Gentleman raised that point very reasonably in the debate, and it is certainly something we need to consider as well.

[Ms Creasy]

I welcome the commitment to work with disabled people. The Minister will know that the difference between consultation and co-production is that every participant has to have a veto of the outcomes in order to co-produce. Otherwise, with the greatest will in the world, it is just another form of consultation. Can he give us an assurance that disabled groups will have a veto over the proposals, to engage the consultation process?

[Sir Stephen Timms]

We will aim for a consensus among all those taking part, and that is what I hope we will achieve.