Universal Credit and Personal Independence Payment Bill

Debate between Stephen Timms and Vicky Foxcroft

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

[Graham Stuart]

rose—

[Vicky Foxcroft]

rose—

[Sir Stephen Timms]

I will not give way for a moment or two.

On Parliament’s handling of the review outcome, which is also raised in new clause 11, I would envisage a ministerial oral statement. I can commit on behalf of the Government that there will then be a general debate on it, in Government time, and that the legislation to implement the review outcome will not be brought forward until that has happened.

[Vicky Foxcroft]

Will the Minister give way?

[Sir Stephen Timms]

Not just at the moment.

Clause 1 introduces the first ever sustained above-inflation rise to the universal credit standard allowance. The previous Government ran universal credit down. They did not uprate it; they froze it, forcing mass dependence on food banks. The increase is accompanied by a reduction, as we debated, in the health top-up for most new claimants, as set out in clause 2.

Clause 3 set out that the health top-up would be frozen until 2029-30 for existing claimants and for those with the most severe lifelong conditions or those near the end of life. The Government amendment means that, for existing claimants, the standard allowance plus the health top-up will rise at least in line with inflation up to 2029-30. That also applies to people with severe lifelong conditions who we do not ever expect to work and those near the end of life. Clause 4 and the amendment to it mirror the universal credit changes in employment and support allowance.

The Bill will protect existing claimants in a powerful way, including those with fluctuating health conditions, but it will move decisively to a more proactive, pro-work system. That is what we need, and the protection for those who are on universal credit at the moment—

--- Later in debate ---

[Vicky Foxcroft]

rose—

[Sir Stephen Timms]

Let me make just a little more headway.

The protection for those who are on universal credit at the moment and who are on the LCWRA rate is that if they go into work, they are likely—depending, of course, on their income—to stay on universal credit, so that protection will continue while they are in work. If their income rises to the level where they are lifted off universal credit, for six months they will retain that protection, and if they go back, they will return to their original rate, so there is very strong protection there.

--- Later in debate ---

[Sir Stephen Timms]

Thank you, Madam Chair.

[Vicky Foxcroft]

Will the Minister ensure that the universal credit health element forms part of the co-produced Timms review when reviewing the assessment process, as the UC health element will be assessed under the new PIP assessment? Furthermore, can we ensure that all disability benefits and support are in scope, so that we can truly get an assessment process fit for the future?

[Sir Stephen Timms]

My hon. Friend is right that the Green Paper set out our proposal that the PIP assessment will in future also be the gateway to the universal credit health top-up, giving it indeed a broader role. Our aim is specifically a co-produced benefit assessment. If that works well, there may well be a strong case to apply the same approach, maybe even using the same or a similar group to other challenges, and perhaps including other aspects of the health and disability benefits system, but that would need to follow successful completion of the task immediately in hand.

Let me finally make an important point, which was made by my hon. Friend the Member for Dunfermline and Dollar (Graeme Downie) and others. The severe conditions criteria in the Bill exactly reflects how the functional tests are applied at present. That is in guidance. It is being moved in this Bill into legislation. It does take account of Parkinson’s and MS because people need to meet these descriptors reliably, safely, repeatedly and in a reasonable timeframe, so I can give a firm assurance to those concerned about how the severe conditions criteria will work for those with fluctuating conditions. The word “constantly” here refers, as I said in my earlier intervention, to the functional criteria needing to apply at all times, not to somebody’s symptoms.

This Bill begins to repair a broken system that holds people back, by removing work disincentives from universal credit. We will provide record employment support for disabled people, for people with health impairments—