Timms Review: Interim Report
Debate between Stephen Timms and Judith Cummins(4 weeks ago)
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The Minister for Social Security and Disability (Sir Stephen Timms)
With permission, I would like to make a statement on the Timms review of the personal independence payment—to make it fair and fit for the future, both for the disabled people who need it and for the taxpayer.
Today, the Government are publishing an interim report on behalf of the review’s steering group. Copies will be placed in the Library in both Houses. We are committed to openness and transparency, so it sets out the evidence gathered so far and the emerging themes. It will inform the recommendations that will now be developed for the final report, which is to be submitted to my right hon. Friend the Secretary of State for Work and Pensions this autumn.
PIP was introduced more than a decade ago, but the benefit has never been fully reviewed. Since 2013, the number of people reporting a disability has increased significantly; patterns of disability and ill health have changed; and the workplace and wider society have evolved. We have seen a sharp rise in disability and long-term health conditions, including in mental ill health among younger people. The number of people receiving PIP has risen considerably and is forecast to continue growing. Against that backdrop, we are taking a fresh look at whether a system introduced 13 years ago still reflects the realities of modern life, supports independent living and is sustainable for the long term.
The Timms review is the first time that the UK Government have co-produced reforms on this scale. Our aim has been to have a review that is not just about disabled people, but shaped with disabled people. That means working together with disabled people and drawing on their lived experience. The review is led by three co-chairs—me, Sharon Brennan and Dr Clenton Farquharson—and a steering group of 12 people we have recruited, almost all of whom have lived experience of disability or long-term ill health. The group represents a range of impairments, as well as different parts of the country. No single group can represent the full range of experiences of disability, however, so we have set up a wide programme of engagement of varied, accessible opportunities in which people with differing lived and learned experiences can get involved.
The interim report brings together the evidence we have heard so far. It includes a summary of findings from the call for evidence, which received over 38,000 responses, and an evidence pack provided by my Department to the steering group as a starting point for further evidence gathering. It is the strongest evidence base ever assembled on PIP, on the assessment process and on the experiences of those who rely on the payment.
The interim report presents a clear message from the steering group: PIP is hugely valued for managing the additional costs of disability, but its current design and delivery are no longer fit for purpose. The assessment for PIP is often described as stressful and dehumanising, and over 90% of those responding to the call for evidence reported that their experience of the PIP assessment was negative.
PIP provides a lifeline for many, but the fear of losing it on reassessment can create serious barriers to participation in work, community life and other everyday activities. That is the direct opposite of the intention, which has always been to support independence and participation. The report also highlights that the benefit has not kept up with wider changes since PIP was introduced.
This work will sit alongside the Milburn review into young people and work, which is looking at the factors behind rising economic inactivity among young people and how the Government can better support participation, opportunity and independence.
The interim report sets out the next steps for the review. It outlines the evidence and engagement programme over the coming months, and how the review will test emerging thinking and develop recommendations that reflect the steering group’s ambitions for radical reform, and that are credible, deliverable and grounded in experience.
We are not looking for quick fixes here. Reform needs to be guided by the evidence, if we are to address the underlying problems in the system and deliver lasting change. The Government are committed to a fairer system that has the trust of both the public and the people who rely on it. We have introduced the recording of health assessments by default, and we are substantially increasing the proportion of face-to-face assessments to 30%, which reverses the sharp decline under the previous Government and helps to improve trust, accuracy and confidence in the assessments.
Our objective is to reform the system so that it works better for disabled people, while ensuring that it is sustainable for the long term, and that the support will be there for future generations who need it. The review has been tasked with developing recommendations that can be delivered within the Office for Budget Responsibility’s forecast for future PIP spending.
I thank everybody who has contributed time, evidence and expertise so far. I thank the steering group, including my fellow co-chairs, Sharon Brennan and Dr Clenton Farquharson, for their support, commitment and determination. Crucially, I also thank the very large number of disabled people who have shared their experiences to help shape this work. The Government are committed to helping to remove the unnecessary barriers that disabled people too often face. This groundbreaking review is only part of that work, but it is an important part. We want to support disabled people in playing as full a part in society as possible. I commend this statement to the House.
Sir Stephen Timms
My hon. Friend is absolutely right, and I think we have an appointment in the diary to talk about the issues that he has raised about his constituency, and his constituent who has drawn his attention to them. My hon. Friend is right that, at present, the system does not work properly for disabled people, and it does not give taxpayers confidence that the funding is being well used. We are determined to turn things around and to be fair to both, and I am grateful for his support for the efforts we are making.
Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson.
Charlie Maynard (Witney) (LD)
I thank the Minister and everyone involved in the review for their hard work; this is a difficult subject, so it is much appreciated.
Today’s report has confirmed what perhaps all of us knew for many years, which is that PIP is supposed to act as a lifeline, but is administered through a broken system. Disabled people say that the application process actively disincentivises them from staying in work and maintaining an active social life. That is unfair on claimants and damaging for our economy, and it should worry us all. People deserve far better. We welcome this interim report, and we will engage constructively with the Government and play our role in the delivery of genuine improvements to the system. We want a society in which everyone can live independently and with dignity. We need the right support in place to ensure that disabled people and their carers can live their best possible lives, and the PIP system must be built around those principles.
We must, however, recognise the structural underlying challenges in the operation of the system. In 2024 prices, spending on incapacity and disability benefits rose from £34 billion a year in 2019 to £51 billion a year in 2024, under the previous Conservative Government. The number of those economically inactive due to long-term health issues rose from 2.1 million to more than 2.8 million in the same period, and the figure is stuck at a similarly high level now. This is seriously worrying, and the UK is largely an outlier in that regard. On current trends, the total bill for working-age sickness and disability benefits is projected to rise to £78 billion in 2030, which means that it will have more than doubled in 10 years.
Managing these economic pressures in an effective, fair and sustainable way is vital, so could the Minister expand a little on the work done to make sure that the evidence gathered is representative? Is work under way to address the root causes of these challenges in a holistic way, looking at everything from employment support to mental health? Can he also update the House on progress on merging PIP and universal credit incapacity benefit assessments?
Employment and Training
Debate between Stephen Timms and Judith Cummins(1 month ago)
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The Minister for Social Security and Disability (Sir Stephen Timms)
I beg to move,
That the draft Industrial Training Levy (Engineering Construction Industry Training Board) Order 2026, which was laid before this House on 1 June, be approved.
In my view, the provisions in this statutory instrument are compatible with the European convention on human rights.
The statutory purpose of the Engineering Construction Industry Training Board is to make better provision for training throughout the engineering construction industry in England, Scotland and Wales. Engineering construction is critical to the Government’s wider ambitions for economic growth, clean energy and energy security. The industry provides the skilled workforce to build, maintain and operate major energy, manufacturing and industrial infrastructure across the country. The continued value of the ECITB and the Construction Industry Training Board was confirmed by a 2023 independent review, which found that a statutory levy remains the most effective model for industry-wide investment in training, and is needed to address persistent structural workforce challenges within the industries covered by the industry training boards.
This order gives effect to the ECITB’s levy proposals for 2026, 2027 and 2028. The levy remains the board’s primary source of funding, and the order is required for the board to raise mandatory assessments on employers that are in scope. It continues to receive strong support from employers: more than 85% of levy-paying employers supported the levy proposals, representing nearly 98% of total levy value—well above the statutory threshold of more than 50% support required from industry.
A 12-week Government consultation has just closed on a proposal to bring the two ITBs together into a single, unified body to support the combined skills needs of the engineering construction and construction sectors. The Government are now carefully considering the views expressed before making decisions on reforms that may be needed to ensure that the system delivers the support that employers need. I cannot prejudge the outcome but, in order to maintain the ECITB for support for employers, we need this levy order. If the Government chose to proceed with the proposed reform, the earliest that a single body could be in place would be the spring of 2028. If reform required a new ITB levy order, it would come to the House through the usual parliamentary process.
I thank the Joint Committee on Statutory Instruments for its detailed review of this levy order. The order retains levy assessment rates from the Industrial Training Levy (Engineering Construction Industry Training Board) Order 2023 and retains the exemption threshold to protect small businesses and microbusinesses that are still eligible for ECITB grants and support.
An estimated £137.9 million will be raised in levy between 2026 and 2028. It will be invested in meeting the skills needs of the engineering construction industry. It will fund programmes to widen participation, raise skill levels, increase opportunity and maintain occupational standards for the industry. It includes targeted grant support for employers to develop the skills pipeline in engineering construction. Since 2023, more than 5,000 apprenticeship starts have been supported through ECITB employer funding, including electrical, mechanical and nuclear-specific apprenticeships. That support includes direct grants for employers, travel and accommodation costs, and costs of additional qualifications that are required.
The funding raised by the ECITB levy directly underpins broader economic priorities. More than 90,000 people are employed in the leviable workforce, contributing an estimated £33 billion in gross value added, which rises to £100 billion when we include the wider sectors serviced by the engineering construction industry. However, the industry faces big, long-standing challenges in recruiting and retaining a skilled workforce, which makes voluntary investment in training harder to secure. Only a statutory levy can guarantee that the skills that industry urgently needs will be provided at the scale required. If this order is not approved, the ECITB will be unable to collect the levy in 2026. That would hit apprenticeships and other vital industry qualifications, employer support programmes, training standards and the future capabilities of one of our most economically significant sectors.
It is estimated that the UK needs an additional 40,000 engineering construction workers, and this order will play an important part in supporting major infrastructure projects nationwide. In addition to industry support, the proposals before the House today have received the full support of the devolved Governments of Scotland and Wales. They recognise, as we do, that the ability of the ECITB to raise and invest levy income is vital to ensuring that employers across all three nations can access the engineering construction skills that they need. I commend the order to the House.
Welfare Spending
Debate between Stephen Timms and Judith Cummins(9 months ago)
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Sir Stephen Timms
I am going to make a bit more progress.
We have seen what happens when social security is not managed properly. We have seen the consequences for child poverty and for the many thousands denied the opportunity to work—people who want to work, and who could work, with the right support. We are taking action now to give people the best chances in life, so that they can support themselves and their family. We are delivering on our plan to make work pay, including by removing the work disincentives from universal credit. We are joining up support, so that people get proper help into work. We are giving children and young people the best possible start in life and are setting them up to succeed in future. Unlike the previous Government, we are not resigned to failure. We are investing in success, in work, in health, and in skills support to provide hope for a better future. We are actively helping people along their own path to work, and creating an opportunity welfare state. We have made a great start, but there is a huge amount still to do, and I welcome this chance to seek the House’s support for our mission.
Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson, Steve Darling.