Welfare Reform

Viscount Younger of Leckie Excerpts

Tuesday 18th March 2025 Lords Chamber

[Viscount Younger of Leckie (Con)]

My Lords, I thank the Minister for repeating the Statement on these long- awaited and much-trumpeted welfare reforms. I say at the outset that the Government are right to look at our growing welfare bill, which is far too high—I think we agree on that. Without action, it will rise to £100 billion by the end of the decade. We need to increase the number of reassessments and hold more in-person assessments to ensure that only those who are eligible for welfare payments receive them.

In government, up until July, we extended employment support, and Ministers are right to continue with our Conservative legacy in the form of the tailored pathway. My first question to the Minister is: how will the £1 billion earmarked for this be measured in terms of success and meaningful results?

Above all else, we welcome the reannouncement of a host of projects and initiatives that we, the previous Government, were already undertaking, such as changing work capability assessments and creating a single assessment; merging new-style jobseeker’s allowance and employment and support allowance into a new, time-limited higher rate; and, of course, I should remind the Benches opposite, providing support for WorkWell. The Labour Party’s slow conversion to the idea that our country needs everybody who can work to do so should be welcomed today.

However, after eight months of dither and delay, the taxpayer has forked out £7 billion in extra sickness benefits, while nearly half a million more people have been signed off sick. On that note, or perhaps I should say fit notes, there is considerable surprise that the Government have scrapped them. It remains the case that there is a 94% sign-off rate, and this sits at the heart of the sickness benefit epidemic. Where is the action on people being signed off sick for the everyday ups and downs of life? Where are the steps that we need to take to bring down the number of people who are leaving work every single day? Currently, it stands at 2,000 people a day, and Ministers need to tackle this urgently. We do not blame the doctors, who are so busy. Can the Minister spell out what, after today’s announcement, the process is for assessing whether someone is fit to undertake work of any sort—while recognising, of course, that this is a key challenge for any Government?

Today’s announcement leaves more questions than it provides answers, and on the areas the Government have finally acted on, they need to be tougher. I have to say that £5 billion in savings is a drop in the ocean compared to the explosion in disability benefits, which, as I said earlier, are set to rise to nearly £100 billion by 2029. Do the Government think that this saving is sufficient, and enough to fill their fiscal black hole, which is the real reason why they are expected to take emergency budgetary steps next week? We on these Benches are unclear whether this small saving is net of the costs and commitments to extra expenditure in today’s Statement. Can the Minister tell us whether the savings announced today include the £5 billion the previous Government had already agreed with the OBR for reforming the work capability assessment? If so, today’s announcement will mean no real savings at all for the Government.

Turning to the plans to change PIP, they leave us with yet more uncertainty and will leave those most concerned about the speculation in recent weeks still in the dark. Will the Minister say why there have been so many leaks, semi-announcements and prolonged rumours over several weeks, which have caused genuine anxiety for those most vulnerable? I hope that a post-mortem is going on in the department, or even in No. 10, about this. The proposal to require individuals to score a minimum of four points raises crucial questions. Who decides how these points will be awarded, and thus is ultimate arbiter of who is deserving of the state’s support? Will there be an appeals tribunal process, with an even longer backlog? Ministers say they will consult on this. Can the Minister confirm exactly when this consultation will be completed and when she expects the new assessment system to be operational? Why did the Government cancel our PIP consultation? What is the difference between this one—the Minister referred to a review—and the previous Government’s, apart from an at least eight-month delay?

On the “right to try” initiative, can the Minister give us some more information about how this will work? For example, if someone goes on to the scheme but after, say, two weeks, they say the role is not for them, can they go straight back on benefits? What is the catch, if any? It would be very helpful to have an explanation. With today’s announcements being linked to the Green Paper, I am not clear what happens next. Is there a White Paper or is this the end of the process, but for these announcements?

There is clearly much anecdotal evidence of fraud in the benefit system. The Minister will cite the upcoming fraud Bill, which focuses, as she knows, on interventions by banks, but it is not clear whether the Bill tackles the malicious websites that direct those inclined to abuse the benefit system. Will the Minister give her view on this?

This was a chance to seize the moment and to choose work over a life on benefits, but the Government have fallen short. Our country needs everybody who can work to do so. That principle should be at the heart of our welfare system. Yet still, the fundamental question of how many people will be helped back into work, and by when, remains unanswered by this announcement.

I remind the Benches opposite that, under Parliaments going back to 2010, successive Conservative Governments helped 4 million more people into work, and we will continue to champion work as a means to bring dignity, purpose and security for individuals and their families.

I finish by acknowledging the large number of questions that I have posed to the Minister. I have great respect for the Minister; she knows that. She will know that the tone of my questions is not directed so much at her personally but is a riposte to the overtly and rather unnecessary political stance taken earlier in the other place by the right honourable Secretary of State for Work and Pensions.

[Lord Palmer of Childs Hill (LD)]

My Lords, these welfare reforms aim to reduce benefit spending while encouraging greater workforce participation. I thank the Minister for reading the Statement and the noble Viscount for the useful questions that he has raised. I have respect for both of them, as they know.

From these Benches, we want to see more people in work, including those with disabilities. While the need for reform is clear, the Liberal Democrats are concerned that the current proposals risk worsening the very issues that they intend to address. We all want to see a more efficient welfare system, but that cannot come at the expense of the most vulnerable in society, particularly those with disabilities or health conditions. Instead of focusing on short-term cuts, we must reform the system in a way that is fair and compassionate and ensures dignity for all.

Does the Minister agree that one of the main aims of this reform package is, as the Statement says, to save £5 billion—often at the expense of the vulnerable in society?

One key area of concern are the proposed cuts to benefits for people with disabilities, which could push many into poverty and greater dependence on social care. The chief executive of Citizens Advice has warned that these changes could have “serious long-term consequences”, and we on these Benches passionately agree. For individuals with severe disabilities or health conditions, this reform package may well create further barriers to employment rather than removing them. The Government’s proposal to freeze the health top- up in universal credit for existing claimants, while reducing it for new ones, will only add to the pressure on disabled individuals, undermining their ability to achieve independence and security. Why are new claimants considered less vulnerable than existing claimants? Of course, that is nonsense and worthy of Ebenezer Scrooge.

These Benches welcome the idea of merging contributory benefits and creating a new unemployment insurance, but the fact remains that we are still waiting for an overdue comprehensive overhaul of the Department for Work and Pensions. Until the Government get serious about fixing health and social care—systems that are intrinsically linked to people’s ability to work—the welfare system will continue to struggle. The social care review’s three-year timeline is hugely disappointing and highlights the lack of urgency in addressing these critical issues. If the Government truly want to cut benefit spending, they must first address the root causes, not just apply superficial, short-term fixes borne by those least able to object.

These Benches remain committed to supporting people with disabilities into employment. We agree whole- heartedly with the Government’s aim to provide a right to try to work without the risk of losing benefits. However, from history, I have a sneaking premonition that it will be more difficult, and slow, to get back on to the benefits ladder once you have tried to work. That is what has happened in the past.

The wider changes, including delays in the health top-up for young people and increasing reassessments, must be approached with caution. We need to ensure that any reforms we make are sustainable and focused on long-term support for those who are most in need. Does the Minister agree that a balanced approach is needed—one that addresses the root causes of welfare dependency and puts people’s dignity and well-being at the heart of its reforms?