Welfare Reform

12:36:00

This Government are ambitious for our people and our country. We believe that unleashing the talents of the British people is the key to our future success. But the social security system that we inherited from the Conservatives is failing the very people that it is supposed to help and is holding our country back. The facts speak for themselves. One in 10 people of working age are now claiming a sickness or disability benefit. Almost 1 million young people are not in education, employment or training—one in eight of all our young people. Some 2.8 million are out of work due to long-term sickness, and the number of people claiming personal independence payments is set to double this decade from 2 million to 4.3 million, with the growth in claims rising faster among young people and those with mental health conditions. Claims are up to four times higher in parts of the midlands, Wales and the north where economic demand is weakest. These places were decimated in the ’80s and ’90s, written off for years by successive Tory Governments and never given the chances that they deserved. The consequences of that failure are there for all to see. Millions of people who could work are trapped on benefits, denied the income, hope, dignity and self-respect that we know that good work brings. Taxpayers are paying millions more for the cost of failure, with spending on working-age sickness and disability benefits up £20 billion since the pandemic, and set to rise by a further £18 billion by the end of this Parliament to £70 billion a year. It is not like this in most other comparable countries, where spending on these benefits since the pandemic is either stable or falling, while ours continues to inexorably rise. That is the legacy of 14 years of Tory failure. Today, we say, “No more”. Since we were elected we have hit the ground running to get more people into good work through our plan for change. We are investing an extra £26 billion into the NHS to drive down waiting lists and get people back to health and back to work. We are improving the quality of work and making work pay with our landmark employment rights legislation and increases in the national living wage; we are creating more good jobs in every part of the country in clean energy and through our modern industrial strategy; and we are introducing the biggest reforms to employment support in a generation, with our £240 million Get Britain Working plan. Today, our pathways to work Green Paper sets out decisive action to fix the broken benefits system, creating a more proactive, pro-work system for those who can work and so protecting those who cannot work, now and for the long term. As a constituency MP for 14 years, I know that there will always be people who can never work because of the severity of their disability or illness. Under this Government, the social security system will always be there for people in genuine need. That is a principle we will never compromise on. Disabled people and people with health conditions who can work, however, should have the same rights, choices and chances to work as everybody else. That principle of equality is vital too, because, far from what Conservative Members would have us believe, many sick and disabled people want to work, with the right help and support. Unlike the Conservatives, that is what we will deliver. Our first aim is to secure a decisive shift towards prevention and early intervention. Almost 4 million people are in work with a work-limiting health condition and around 300,000 fall out of work every year. We have to do far more to help people stay in work and get back to work quickly, because their chances of returning are five times higher in the first year. Our plans to give statutory sick pay to 1 million of the lowest-paid workers and provide more rights to flexible working will help keep more people in work. The WorkWell programme is trialling new approaches, such as GPs referring people to employment advisers instead of signing them off sick. Our Keep Britain Working review, led by former John Lewis boss Sir Charlie Mayfield, will set out what Government and employers can do together to create healthier, more inclusive workplaces. We will therefore help more employers to offer opportunities for disabled people, including through measures such as reasonable readjustments, alongside our Green Paper consultation on reforming Access to Work so it is fit for the future. Today, I can announce another step. Our Green Paper will consult on a major reform of contributory benefits, merging contributions-based jobseeker’s allowance and employment support allowance into a new time-limited unemployment insurance paid at a higher rate, without someone having to prove that they cannot work in order to get it. Therefore, if someone has paid into the system, they will get stronger income protection while we help them get back on track. Our second objective is to restore trust and fairness in the benefits system by fixing the broken assessment process and tackling the perverse incentives that drive people into welfare dependency. Labour Members have long argued that the work capability assessment is not fit for purpose. Going through the WCA is complex, time-consuming and often stressful for claimants, especially if they also have to go through the PIP assessment. More fundamentally, it is based on a binary can-or-cannot-work divide, when we know that the truth is that many people’s physical and mental health conditions fluctuate. The consultation on the Conservatives’ discredited WCA proposals was ruled unlawful by the courts. I can therefore announce today that we will not go ahead with their proposals. Instead, we will scrap the WCA in 2028. In future, extra financial support for health conditions in universal credit will be available solely through the PIP assessment. Extra income is therefore based on the impact of someone’s health condition or disability and not on their capacity to work, reducing the number of assessments that people have to go through and providing a vital step towards derisking work. And we will do more, by legislating for a right to try, guaranteeing that work in and of itself will never lead to a benefit reassessment and giving people the confidence to take the plunge and try work without the fear that that will put their benefits at risk. We will also tackle the perverse financial incentives that the Tories created, which actively encourage people into welfare dependency. They ran down the value of the universal credit standard allowance. As a result, the health top-up is now worth double the standard allowance, at more than £400 a month. In 2017, they took away extra financial help for the group of people who could prepare for work, so we are left with a binary assessment of whether people can or cannot work, and there is a clear financial incentive for someone to define themselves as incapable of work—a factor the Office for Budget Responsibility, the Institute for Fiscal Studies and others say is likely to be driving people on to incapacity benefits. Today, we tackle this problem head-on. We will legislate to rebalance the payments in universal credit from April next year, fixing the value of the health top-up in cash terms for existing claimants and reducing it for new claimants, with an additional premium for people with severe, lifelong conditions that mean they will never work, to give them the financial security they deserve. Alongside that, we will bring in a permanent, above-inflation rise to the standard allowance in universal credit for the first time ever. This means a £775 annual increase in cash terms by 2029-30, and it is a decisive step to tackle the perverse incentives in the system. We will also fix the failing system of reassessments. The Conservatives failed to switch reassessments back on after the pandemic, so they are now down by more than two thirds, and face-to-face assessments have gone from seven in 10 to only one in 10. We will turn these reassessments back on at scale, shift the focus back to doing more face-to-face, and ensure that they are recorded as standard, to give confidence to claimants and taxpayers that they are being done properly. I can also announce that, for people on universal credit with the most severe disabilities and health conditions that will never improve, we want to ensure that they are never reassessed, in order to give them the confidence and dignity they deserve. We will also fundamentally overhaul the Department for Work and Pensions’ safeguarding approach to make sure that all our processes and training are of the highest quality, so that we protect and support the most vulnerable people. Alongside these changes we will also reform disability benefits so that they focus support on those in greatest need and ensure that the social security system lasts for the long term into the future. Social and demographic change means that more people are now living with a disability, but the increase in disability benefits is double the rate of increasing prevalence of working-age disability in the country: claims among young people are up 150%; claims for mental health conditions are up 190%; and claims for learning difficulties are up by over 400%, according to the IFS. Every day there are more than 1,000 new PIP awards. That is the equivalent of adding a population the size of Leicester every single year. That is not sustainable in the long term, above all for the people who depend on that support, but the Tories had no proper plan to deal with it—just yet more ill-thought-through consultations. So today I can announce that this Government will not bring in the Tory proposals for vouchers, because disabled people should have choice and control over their lives. We will not means-test PIP, because disabled people deserve extra support, whatever their incomes, and I can confirm that we will not freeze PIP either. Instead, our reforms will focus support on those with the greatest needs. We will legislate for a change in PIP so that people will need to score a minimum of four points in at least one activity to qualify for the daily living element of PIP from November 2026. That will not affect the mobility component of PIP and relates only to the daily living element. Alongside that, we will launch a review of the PIP assessment, led by my right hon. Friend the Minister for Social Security and Disability, in close consultation with disabled people, the organisations that represent them and other experts, so that we can ensure that PIP and the assessment process are fit for purpose now and into the future. This significant reform package is expected to save over £5 billion in 2029-30; the OBR will set out its final assessment of the costings next week. Our third and final objective is to deliver personalised support to sick and disabled people who can work so that they can get the jobs they need and deserve. We know from the last Labour Government’s new deal for disabled people, young people and the long-term unemployed the difference that proper employment support can make. More recent evidence from the Work Choice programme and additional work coach time shows that support can make a significant difference in the number of people getting and keeping work and improving their mental health and wellbeing. This Labour Government believe that an active state can transform people’s lives. We know that because we have done it before. Today I can announce that we will invest an additional £1 billion a year in employment support, with the aim of guaranteeing high-quality, tailored and personalised support to help people on a pathway to work—the largest ever investment in opportunities to work for sick and disabled people. Alongside that, for those on the UC health top-up, we will bring in an expectation to engage and a new support conversation to talk about people’s goals and aspirations, combined with an offer of personalised health, skills and employment support. We will go further, because being out of work or training is so damaging for young people’s future prospects. In addition to funding our youth guarantee through the £240 million Get Britain Working plan, we will consult on delaying access to the health top-up in universal credit until someone is aged 22, reinvesting the savings into work support and training opportunities, so that every young person is earning or learning and on a pathway to success. The Conservatives left a broken benefits system that is failing the people who depend on it and our country as a whole. The status quo is unacceptable, but it is not inevitable. We were elected on a mandate for change to end the sticking-plaster approach and tackle the root causes of problems in this country, which have been ignored for too long. We believe in the value and potential of every single person: we all have something positive to contribute and can make a difference, whether that is in paid work, in our families or in our communities alongside our neighbours and friends. We will unleash potential in every corner of the land, because we are as ambitious for the British people as they are for themselves. Today we take decisive action, and I commend this statement to the House.

I call the shadow Secretary of State.

12:53:00

I thank the Secretary of State for advance sight of her statement. She and I agree on one thing: the welfare bill is too high. Left unchecked, it will rise to £100 billion by the end of the decade. Spending more on sickness benefits than we do on defence is not the sign of a strong country. This is not just a question of money. We have 3 million people of working-age who are not in work due to ill health, not filling the roles businesses need, not contributing to our economy and not fulfilling their own potential. The best way to get the welfare bill down is to get people off benefits and into work. That is what we did year after year after taking office in 2010. Despite the once-in-a-century pandemic, 4 million more people were in employment when we left office than when we inherited Labour’s mess. Before the pandemic, economic inactivity was at an historic low, but it is true that we then started to see a new phenomenon: growing numbers of people, and—particularly worryingly—young people, claiming sickness benefits. A system set up with good intentions to protect the most vulnerable in society has over time morphed into something broader, driven in part by a well-intentioned but not always helpful medicalisation of life’s ups and downs. In government, we identified the problem and worked up plans to tackle it, but at every point Labour Members opposed them. In fact, the now Chancellor said that not one single penny could be saved from benefits. When they came into office, not only did they cancel or delay pretty much everything we handed over, but they had no plans of their own. They walked into the Department with empty notebooks. All they had done in opposition was oppose, instead of the hard work of coming up with their own answers. That is why the country has had to wait another eight months for this announcement. In that time, taxpayers have shelled out £7 billion in extra sickness benefits, and nearly half a million people have been signed off sick. In fact, 60 people were signed on to sickness benefits while the Secretary of State was talking. None the less, I have been looking forward to hearing what the right hon. Lady would announce today and which of the many things briefed to the media her spinning policy wheel would eventually land on. Governing is hard—we know that. In the last few weeks, the Government have made it look really hard, but that is nothing compared with how hard life can be for a severely disabled person, somebody for whom getting up, getting dressed and getting breakfast—things most of us found easy this morning—are hard if not impossible. For some people, the last few weeks have been deeply frightening. They will be glad of the uncertainty finally ending. I genuinely want the right hon. Lady to succeed, and I welcome her commitment today to increasing the number of reassessments and to having more of them face to face and recorded. I welcome the investment in employment support for disabled people. I welcome, of course, her reannouncing a host of things that we were doing in government. Scrapping the work capability assessment and creating a single assessment is already Government policy that is due to come in in 2026-27. Her big idea seems to be to delay that until 2028. Merging new-style jobseeker’s allowance and employment and support allowance into a new time-limited higher rate is a proposal that we worked up in government. We launched a consultation on tightening up eligibility for PIP and, by the way, we would have gone much further with that. We consulted on ending reassessments for people whose health conditions will not improve, and the right to try guarantee sounds remarkably similar to our chance to work guarantee. Of course, on the Secretary of State’s continued support for WorkWell, I launched that programme with the now shadow Chancellor, my right hon. Friend the Member for Central Devon (Mel Stride). In fact, the only original idea I can see in the entire announcement is increasing the rate of unemployment benefits—a Labour policy if ever I have heard one. This is a now-or-never chance to seize the moment—a now or never for millions of people who will otherwise be signed off for what could end up being a lifetime on benefits—but today’s announcement leaves me with more questions than answers. How many people will be helped back into work and by when? Surely we have not been waiting eight months for just another Green Paper. Where is the fit note reform crucial to stem the flow of people on to benefits? Where is the action on people being signed off sick for the everyday ups and downs of life? Why is the right hon. Lady planning to save only £5 billion when the bill is forecast to rise to over £100 billion? Do the savings she is announcing today include the £5 billion we had already agreed with the OBR for reforming the work capability assessment? If so, she has made virtually no savings of her own. What is the net saving given the additional expenditure planned? Fundamentally, this is too little, too late. The fact is that £5 billion just does not cut it with a bill so big going up so fast. She needed to be tougher. She should be saying, “No more hard-working taxpayers funding the family next-door not to work, no free top-of-the-range cars for people who do not need them, no more sickfluencers helping people to claim money they do not need.” Before the right hon. Lady puts on her angry voice and leans across the Dispatch Box to shout at me about “14 years”, I gently say to her that everybody in this Chamber and around the country knows that we lost and Labour won. Her job now is to govern and mine is to hold her to account. Our country needs everybody who can work to do so. That principle should be at the heart of our welfare system. It is good for the taxpayer, good for the economy and good for the individual and their family, who benefit from security, dignity and purpose that work brings, and it means that those who genuinely cannot work get the support that they deserve. The fact is that fewer people work under Labour. That has happened every time Labour has been in office, and it is already happening now. The Government should have taken their time in opposition to come up with meaningful reforms, but they did not, and the country is already paying the price.

I personally like the hon. Lady a great deal, but her entire response seemed to be railing against her own party’s failings and lamenting action that her party failed to take. “Too little, too late,” will indeed be the epitaph of the Conservative party. One thing on which I agree with her that this is a now-or-never moment, and I am proud that this Government are taking it. We are taking decisive action, ducking the challenges that have been ignored for too long. I am not interested in being tough. This is about real people with real lives, and we must be careful in how we talk about it. I am interested in taking the right steps to change the system in order to transform people’s lives and, crucially, ensure that we have a social security system that lasts. One in three of us will have a health condition in our lifetime, and one in four is disabled. Unless the country, the welfare state, the world of work and all our public services wake up to that fact, the welfare state that the Labour party created will not be there for future generations. That is what we are determined to secure. This is a substantial package of measures that will save around £5 billion by 2029-30. We will have to wait until the OBR comes up with its final costings on all this at the spring statement. I leave hon. Members with this: a decade ago, former Chancellor George Osborne said: “Governments…let…unemployed people get parked on disability benefits, and told they’d never work again. Why? Because people on disability benefits don’t get counted in unemployment figures that could embarrass politicians.” The Labour party is not embarrassed about this situation; we are ashamed of the state the Tories left the country in. We will face up to our responsibilities; it is time that Conservative Members did the same.

I call the Chair of the Work and Pensions Committee.

I thank my right hon. Friend for her statement. I absolutely agree: our social security system is not fit for purpose. The measures, particularly those to increase employment support by £1 billion a year and to increase the standard allowance of universal credit, which the Opposition failed to do in government, will be positively felt. I appreciate the difficult financial circumstances that we face. Despite the Opposition’s assertion that £5 billion is not a huge figure, this is the largest cut in social security support since 2015. There are alternative and more compassionate ways to balance the books, rather than on the backs of disabled people. I absolutely and fundamentally believe that my right hon. Friend is on the right course, but I implore my party to try to bed in our reforms before we make the cuts, as others have asked. There is so much evidence of the adverse effects that the Conservative party had through cuts to support and restrictions to eligibility criteria when it was in government, including the deaths of vulnerable people. That cannot be repeated. I would be grateful if my right hon. Friend published as a matter of urgency the Government’s analysis of the impacts, particularly mental health impacts, and outlined when we are expected to respond.

I thank my hon. Friend for her response. We will publish the equality and poverty impact analyses alongside the spring statement. I know that she is a lifelong champion of sick and disabled people, and she has rightly raised concerns, including through the Select Committee, of vital issues such as safeguarding. I look forward to receiving the Select Committee’s report on that in order to learn from the evidence that it received. Although this is a substantial package with those estimated savings, spending on working-age sickness and disability benefits will continue to rise over this Parliament. The last forecast was that they would continue to rise by £18 billion. As she says, these are important issues, and we need to work to get this right to ensure that proper support is in place for people. I genuinely look forward to working with the Select Committee to get all these proposals right.

I call the Liberal Democrat spokesperson.

I thank the Secretary of State for sharing her statement in advance—that was extremely welcome. The Liberal Democrats want to see more people in work, including those with disabilities. Sadly, the significant blocker to those people getting into work is the appalling state of the health and social care system left behind by the Tories—to my mind, in more ways than one. We desperately need the new Labour Government to drive forward with reforms to invest in and improve our health service. The devil is in the detail of these proposals. I fear what we will find as we turn over rocks over the next few days, particularly for the most vulnerable. The Secretary of State has described the system as broken, so how will she drive significant change through the measures? I fear that this is just tinkering around the edges when we need real culture change within the DWP and investment in our NHS. That is absolutely essential.

I agree with the hon. Gentleman that we need extra investment in the NHS and to overhaul the culture of the DWP, and that is precisely what we are doing. We are investing an additional £26 billion into the NHS, an extra £172 million into the disabled facilities grant to help disabled people to live independently, and £3.7 billion into social care, which is such an important issue. We need a decisive cultural shift in the DWP. That is why our Get Britain Working plans include proposals to overhaul jobcentres. We have also said today that we need to look fundamentally at our safeguarding approach. Our Pathways to Work programme is genuinely just that. For some people, getting out of the house is an achievement; for others, it is maybe going along to a community group, doing voluntary action or getting skills. That is what we mean, and we will work closely not only with the NHS and social care—and my right hon. Friend the Secretary of State for Health and Social Care—but with voluntary organisations, which have such a vital role in helping people on to a pathway to success.

I welcome my right hon. Friend’s commitment to ensuring that no one is on the scrapheap when it comes to work and that everyone gets the support that they need. I note that she is consulting on delaying access to the health top-up in universal credit until the age of 22. Will she explain the rationale for that age, and what savings does she expect to make if that consultation goes forward?

My hon. Friend raises a really important issue. Patience is not my greatest virtue, but Members will need to wait until the spring statement for the OBR’s full assessment of individual measures and the savings they make. On delaying access to the health top-up for people under 22, there will be a specific exemption for those who are never able to work because their disability is so severe. This is all about matching it with our youth guarantee, announced in the Get Britain Working plan, to make sure every young person is earning or learning. If someone is not in education, employment or training when they are young, the impact can be lifelong and scarring on their health, job prospects and earnings, so we have to put that right.

How precisely will these benefit cuts be realised, given this Government’s anti-business Budget, which has seen businesses close at the fastest rate since Labour was last in office? Of those still standing, 30% are planning to cut staff to cope with the increase in employers’ national insurance contributions. Where are the jobs? We know Labour is the party of the magic money tree; is Labour now the party of the magic jobs tree, too?

The only party that believes in magic money is the Conservative party, who wrote a cheque that they could not pay. Unlike Conservative Members, we believe that good work and rights at work are of benefit to businesses, because the best businesses know that they help retain people and reduce the costs of recruitment. We are overhauling our approach in the DWP to employers, because only one in six ever uses a jobcentre to recruit. We want to have a single account manager for all businesses. We are going to make sure our jobcentres are much more embedded in their local communities, so that they have detailed knowledge of individual employers. That is the way that we get Britain working and growing again.

When the Government made the decision to go down this route, did they understand the pain and difficulty that it will cause millions of our constituents who are using food banks and social supermarkets? These people are on the brink. This £5 billion cut is going to impact them more than her Department gives credence to. I would like to be able to look my constituents in the eye and tell them that this is going to work for them. As things stand, my constituents, my friends and my family are very angry about this, and they do not think this is the kind of action that a Labour Government take.

I have great respect for my hon. Friend, but let me say this to him. I have spent years chairing Feeding Leicester, the programme to end hunger in my city, and I know that I can look my constituents in the eye and say to them: I know that getting more people into better paid jobs is the key to their future success, and I know that dealing with their mental health problems, which are so prevalent, is essential. If someone can work, we will give them the help to get back on their feet, because that is the long-term route to tackling poverty and tackling inequality, which is what this Labour party is all about.

Like the Secretary of State, I was elected in 2010, and I need to tell her that our recollections differ. When I came into this role, after 13 years of Labour government, 7.5% of young people in the Gosport constituency were not in education, employment or training. That number was down to 3% last year. Since Labour has taken office, 83,000 more people across this country of working age are now unemployed. Businesses in the sectors that take on so many young people across our constituencies, from adult social care to childcare to hair and beauty, are telling me that they are not taking on more staff as a result of her Chancellor’s changes to national insurance contributions. Surely the two are mutually incompatible.

Unless we cut waiting times and waiting lists in the NHS, people cannot get back to health and back to work—many employers have said to me that they are deeply concerned about that—and that is the reason we are investing an extra £26 billion into the NHS. We are dealing with precisely those key sectors—health and social care, construction and so on—where employers want people with the skills to do those jobs. We are overhauling our approach in DWP and setting up sector-based work academy programmes specifically tailored to employers’ needs. I know there is more we need to do to work with employers and help them get people back into work, and that is what this Government will deliver.

After 14 years of Conservative failure, there is a 29% employment gap and a 17% pay gap for disabled people in this country. We must therefore ensure that the social model of disability is central to Government decision making, to achieve inclusive growth that enables disabled people to fulfil their potential. I welcome the Secretary of State’s proactive approach to reasonable adjustments and the £1 billion support package to get disabled people back into work where they can work, as well as her recognition that PIP is designed as an in-work benefit to enable people to live independently. Research shows that supportive, incentive-based approaches massively outperform cuts or sanctions in getting disabled people into sustainable employment. What work has she done to develop inclusive growth strategies across all employment sectors, to close the disability employment gap and the disability pay gap?

I absolutely agree with my hon. Friend. At the heart of our mission is providing equal rights and choices for disabled people to work. We will be working with disabled people and the organisations that represent them to develop our pathways to work employment support so that we get it right, because we will not do that unless we work closely with disabled people. We are also working right across Government—we have disability Ministers in every single Department who are driving this agenda forward—and I know that my hon. Friend will give much valued advice and help to make sure we get it right in every part of Government.

Encouraging and enabling people to get back to work is a laudable aim, but how can the Secretary of State assume £5 billion of success in advance of actually rolling out the programme? Surely the right approach is to let the reforms generate savings naturally by a concrete reduction in need, rather than to set an arbitrary target beforehand.

We are not setting an arbitrary target. We are fixing a broken system, and we are taking action immediately, because we believe we have to put in place employment support, health support and social care support at the same time as fixing a broken benefits system. I always start with people—what do we need to do to give people the opportunities they deserve if they can work? What do we need to do to make sure the social security system lasts? We cannot put that off any longer, because it is not good enough for the people we were elected to serve.

PIP is a devolved benefit, known as the adult disability payment in Scotland. Can my right hon. Friend assure me that she will work with partners, including the Scottish Government, to ensure that disabled people across the whole UK get the support they need?

Absolutely—that is very important for me personally and for the Government as a whole. We want people in Scotland to have the same chances and choices to work if they can as everybody else and to make sure people have proper protections. That is essential for us, and I will continue to work closely with the Scottish Government, as I know other Departments will.

Youth unemployment stood at 642,000 as of the last quarter of 2024—a rise of 136,000 on 2023—with a youth unemployment rate of 14.8%. The Secretary of State talked about earning and learning. Does she agree that one way of attracting some people back into work would be to get more young people into His Majesty’s armed forces—the Air Force, the Navy and the Army—and will she discuss that with the Defence Secretary?

I absolutely agree. Indeed, before I was appointed to this position, as a constituency MP in opposition I discussed with my local jobcentre and the armed forces recruitment team precisely these issues, because the exciting careers and opportunities that are available are really important for young people in my constituency and the right hon. Gentleman’s. I will certainly have more conversations with colleagues in the Ministry of Defence to make sure we put this plan into action.

I have heard many people make a moral case for the changes that my right hon. Friend has announced today, but does she agree that over the last 20 years those with large amounts of wealth have done extremely well while average household incomes have stagnated and the standard of living for the overwhelming majority has gone down? So while we make a moral case for changes to the benefits system, should we not also be making the case for how we can tax wealth as opposed to income?

My hon. Friend is right that those with the broadest shoulders should bear the biggest burden, which is why I am very proud that we have closed loopholes in the non-dom tax status, looked at the profits of the energy companies and tackled issues in many other areas. Fairness in the tax system is an absolute principle of the Labour party.

The Government say they will not change our fiscal rules because of their manifesto. They say they will not change their tax policies because of their manifesto. They say they will not change their position on the single market because of their manifesto. Perhaps the Secretary of State could outline to me and to people right across the UK where in her manifesto it stated that they were going to take £5 billion away from disabled people?

I am very happy to send a highlighted version of our manifesto to the right hon. Gentleman, where we said we would reform or replace the WCA, we said we would make sure we dealt with the backlogs in Access to Work, we said we would make work pay, we said we would invest more in the NHS, we said we would improve employment rights, and we said we would create jobs in every part of the country. I am very proud that we are delivering on it and I just ask the right hon. Gentleman to take a look at what is happening in Scotland and at the Scottish Government’s record, because there is probably more they could do.

I am delighted to hear my right hon. Friend announce additional investment in high quality, tailored and personalised support to help people on a pathway to work and the recognition that for so many it is indeed a pathway, not just a series of referrals that merely lead back to square one. Can my right hon. Friend assure me that joint working with local support services like those in Clwyd North, which are already doing great work, will form part of this reform so that a truly local, person-centred approach can be achieved?

Yes. We will not get this right unless we draw on the huge strengths of our voluntary and community organisations. I have never believed that there are hard-to-reach groups; it is just that we need to change what we do. There is a lot we can learn from groups like those my hon. Friend mentions, because it really is a pathway to work. We have got to end this false divide between those who can and cannot work, and instead understand that there are steps towards a better life. That is what this Government want to deliver.

I have two practical questions. First, the Secretary of State said she is joining jobseeker’s allowance and employment and support allowance into a new time-limited unemployment insurance; what is that time limit? Secondly, she said there would be an expectation on people to look for work; what happens when they do not meet that expectation and what discipline is faced if they do not take that up?

The time limit is one of the things we are consulting on in the Green Paper and I look forward to hearing the hon. Gentleman’s views on that. On the expectation to engage, it is interesting that when we have started to free up our work coach time and offer support on the phone and in person, many people have come forward, because we are trying to change the culture. The Conservatives always leap straight to a position where people refuse to get involved. We have got to change that culture; that is the way that we will get more people on to that pathway to success.

I agree with the Secretary of State that many disabled and sick people want to work, but the reality is that cutting PIP will not address the reasons why they do not. She outlined that the reasonable adjustments framework for disabled people is very hard to navigate. It took me six months to navigate it for a member of my staff here in the place where we legislate, so how hard is it going to be for disabled people in the workplace to try to get employers to make those adjustments? Will the Secretary of State outline how she is going to make sure that the workplace is ready for the people who will be accessing it? Can she reassure me about the disability employment gap, which in a sense has nothing to do with benefits, but is to do with the reasonable adjustments that are not being made at the moment?

My hon. Friend is a passionate advocate of these issues and she is right: we have to do far more to work with employers to ensure that those basic reasonable adjustments are made. That is one of the issues that Sir Charlie Mayfield is looking at in our “Keep Britain Working” review, precisely because we know that good employers understand the need to make these changes. I am very happy to meet my hon. Friend to go through this in more detail because she is right: we have to get this absolutely nailed.

First it was the pensioners and their winter fuel allowance, then it was the WASPI women and broken promises, and now it is the sick and the vulnerable. We believe in protecting the taxpayer but also in protecting those who need our support the most, yet there was not a word about abuse or about those who are taking money out of the system when they are not entitled to it. How can the Secretary of State rationalise in her own mind saying in the statement that, on the one hand, she accepts that people’s health and wellbeing can fluctuate but that, on the other hand, she is going to do away with the accumulation of points? To require an applicant to get four points in any one box does away with the ability to recognise that mental ill health in particular manifests itself in many different ways. That accumulation of points has been incredibly important in getting support for those who need it most. If it fluctuates, how come she is doing away with that accumulation?

There is very clear evidence that good work is good for mental health. That is the case for people with anxiety and depression, but also for those with more severe conditions such as psychosis and schizophrenia. There is really clear evidence from the NHS individual placement and support programme that if we can help people get into work, that is not only better for them and their incomes, but it reduces their relapses and spending on the NHS. The right hon. Gentleman asks how I rationalise this; I do so because I am not prepared to accept a system that is miserable for people, that traps them in poverty, and that denies them the chances and support they deserve. I am also not prepared to accept an inexorable rise in costs and spending, much of which is on the costs of failure, precisely because I want to ensure that the social security system lasts for the long term.

I think all Government Members understand the scale of the financial bin fire left by the previous Government, but there are those who are worried and are seeking assurances at home. For the 1 million people potentially losing disability support, what guarantees can my right hon. Friend give that those who are unable to feed or toilet themselves will not lose out on personal care? For the 1 million who can and do want to work, of course we welcome that £1 billion of extra support, but how are the Government going to hold unco-operative employers’ feet to the fire in giving disabled people an equal chance of employment and career success?

I agree with my hon. Friend: I know people are worried and concerned and that is a really important issue. It is why I disagreed with the Opposition spokesman saying that we need to be tough; I am not interested in that because this is about real people and real lives. The changes to PIP are not coming in immediately; they will be coming in from November 2026 for new claimants. Those with severe conditions who will never work will be protected. If people do have a reassessment, it will be done by a fully trained assessor or a healthcare professional and will be based on their individual needs. In order to ensure there is greater confidence in those assessors and the decisions that are being taken, we will overhaul our safeguarding and training and we will record those assessments as standard, because that is essential.

Because working is so beneficial to mental health, will the Secretary of State require claimants to undertake socially useful work in order to retain their benefits?

No.

I thank the Secretary of State for listening to disabled people and their organisations about ending needless, wasteful and extremely expensive repeat reassessments for those with progressive conditions. I hope that has been welcomed by those who have campaigned for it for many years. Will the Green Paper include plans to tackle the disincentives to work for disabled people and others in supported housing? If they work for more than 15 hours a week, it can result in financial penalties. That system was not only ignored by the Conservatives, but actually put in place by the Conservative and Liberal Democrat parties in coalition, when they fumbled the introduction of universal credit. Will this Government fix tax allowances to ensure that work always pays, including for disabled people in supported housing?

My right hon. Friend the Minister for Social Security and Disability is looking at that. I am sure that he will discuss those issues with my hon. Friend, if he would like that.

I have heard nothing today that shows that the Government have listened to disabled people. Any changes to PIP should have been co-produced, but this week, 25 disabled people’s groups and charities wrote to Ministers begging for their opinions to be included, and not as an afterthought. Will the Secretary for State explain why disabled people are feeling so disregarded and scapegoated, and why impoverishing them to the tune of £5 billion is a higher priority than a simple wealth tax?

I think that many disabled people felt disregarded and ignored under the Conservative Government. We will be working with disabled people and the organisations that represent them on many—not all—aspects of what I have announced today. If the hon. Lady has particular issues and concerns that she would like to raise, she can write to me, or I would be very happy for her to meet me or the Minister for Social Security and Disability.

Mr Speaker, you know that there are decisions made in this House that stay with you for the rest of your life. This is one of them. We all agree with the Secretary of State’s objectives of trying to ensure that disabled people have the resources they need for a decent quality of life, and that those capable of work have support to get into work. However, trying to find up to £5 billion of cuts by manipulating the PIP rules and criteria will result in immense suffering and, as we have seen in the past, loss of life. What independent monitoring will take place and be reported to the House, and what threshold of suffering is needed before an alternative route is taken to supporting disabled people?

I take the issues relating to the measures I have announced today very seriously. We want to ensure that all the assessment processes and training are properly scrutinised, and we are overhauling our safeguarding processes. My objective is to improve the lives and life chances of sick and disabled people by supporting into work those who can work, and by protecting those who will never work, through switching off reassessments to give them dignity and respect. I believe that the mission to ensure that those who can work do, and to secure the sustainability of the social security system for the long term, is the responsibility of the Labour party that founded the welfare state.

One of the first acts of this Government was to take away the winter fuel allowance from millions of pensioners on incomes as low as £13,000 a year, including 44,000 who are—or were—terminally ill. Will the Secretary of State reassure all our constituents that in making these changes, she will not be going after those who have a terminal illness?

That is absolutely essential for me personally, and for the Government as a whole, and I give that assurance to the hon. Lady. However, I gently say to her that pensioner poverty increased under the Conservatives, and they left 880,000 pensioners not getting the pension credit they deserve. The Conservatives are suddenly converted to caring about pensioners on low incomes. In contrast, we have decided to act.

As a physio, I know that optimising somebody’s function and independence, whether they are in work or not, saves the system so much money, because it prevents dependency. However, I find that incongruous with the cuts of £5 billion and the changes to the eligibility criteria. Will the Secretary of State ensure that before the measures are brought to the House, disabled people are consulted and involved in the decision making? We must ensure that people maintain their independence, psychological safety and dignity, and that they are not pushed further into poverty.

I agree with my hon. Friend that keeping older people physically independent for as long as possible is vital. That is one of the reasons why we are investing an extra £26 billion in the NHS. Not only are we rolling out employment advisers in talking therapies and mental health services, but we are starting to do so when it comes to physical health, too, including for people with musculoskeletal conditions, because getting people back to health and back to work is so important. We will legislate for the PIP changes, and the House will have the full ability to debate them. Crucially, we will consult disabled people on the employment support programme and how we get that right, so that it is much more joined up with the health support that many sick and disabled people need.

Many of my Hazel Grove constituents are keen as mustard to get back to work, but they are waiting for either a diagnosis or treatment on the NHS. That is made more difficult because of the capital spending needed at Stepping Hill hospital, and because mental health services across Greater Manchester are stretched too thin. What assurance can the Secretary of State give my constituents that her announcements today will not make an already difficult time in their lives even more difficult?

The hon. Lady is right to champion her constituents’ needs. We recently undertook a survey of people on sickness and disability benefits, and two in five of them said that they were on a waiting list. That really concerned us, and it is why we are putting extra investment in place. We need to go further, faster, on driving waiting lists down. We have already achieved the 2 million extra appointments that we said we would deliver in our manifesto—we did that seven months early—and we will do even more to ensure that her constituents get back to health and back to work.

Nearly 1 million young people leaving school are not in employment, training or education. My hon. Friend the Member for St Helens North (David Baines) and I both represent St Helens. A couple of weeks ago, we received a letter from college tutors who were having difficulty getting young people to take up employment, training or education, asking if we could we do anything about that. Will the Secretary of State say a little more about the guarantee of employment for young people, and how we will get them to accept training? Those young people were afraid of a cut in universal credit. I have to admit that I did not know that young people were on universal credit.

I promised I would keep my answers shorter, because so many colleagues want to get in. Our youth guarantee will be rolled out from next month. Mayors and local leaders will bring together work, health and skills support locally. I am very happy to talk to my hon. Friend personally about what more we can do in her constituency, because she is right that we have to get those young people on a pathway to success.

When I fought the last election, I was honest with my electorate, telling them that we would save £12 billion from the welfare budget. Was the Minister honest with her electorate when she talked about Labour’s plans to cut disability welfare, or is she making this policy on the hoof because the Chancellor has destroyed economic growth?

The Conservatives did not have a plan. The former Chancellor, the right hon. Member for Godalming and Ash (Jeremy Hunt), admitted during the general election campaign that the money had already been scored. I will listen more to the hon. Member when the Conservatives put forward a plan that works, instead of having it discredited in the courts.

Too many carers of disabled people end up with physical and mental health disabilities themselves, and end up trapped in the same system as their loved ones. What more can the Secretary of State do with her colleagues in the Department of Health and Social Care and the Department for Education to end that trap?

I have been a lifelong champion of family carers, who give their all to looking after the people they love. My hon. Friend will know that we have already boosted the carer’s allowance earning threshold by £45 a week to £196, benefiting more than 60,000 carers by ’29-30—the biggest ever cash increase in the earnings threshold for carers. We need to do much more to support family carers, including enabling them to balance their work and caring responsibilities. I look forward to talking to my hon. Friend about that.

The Secretary of State says that she will legislate for a change in PIP, so that in future, people must score a minimum of four points in at least one activity to qualify. That means that an individual who needs supervision or assistance with therapy for three and a half hours a week, prompting and assistance with washing, assistance to get into the bath or shower, supervision to manage their toilet needs, and assistance to dress and undress their lower body would no longer qualify for PIP. How many such individuals are there?

It does not mean that. Every single case is assessed on individual need. It is really important that the hon. Lady and her constituents understand that we will protect those with severe disabilities who can never work. Anyone who goes through a reassessment will have it done based on their personal needs.

My right hon. Friend will agree that under the managed decline of the SNP, people in Scotland are more likely to be economically inactive than those in the rest of the UK. She will further agree that we have greater ambitions for the people of Scotland, particularly young people, than the Conservative party. Does she agree that these reforms are absolutely necessary to put more Scots back to work, and back on the road to prosperity?

Yes, I would. People in Scotland deserve the same chances and choices to work. They deserve to get skills and training, to not have young people leaving school without the qualifications they need, to have an NHS that is reducing waiting times, and to have overhauled jobcentres—absolutely. We will continue to work with the Scottish Government to put all those problems right, because we want people in every part of this country to benefit.

I welcome the Secretary of State’s shift towards prevention. Last May, my constituent Alexander McRandal was riding his motorbike on the lanes of east Devon when he struck a pothole and was thrown from his bike. His collision resulted in permanent nerve damage. He has had to leave a 40-year career, and his wife Louise has given up work to look after him. While they will be reassured to hear that the Government will not freeze PIP, does the Secretary of State recognise that more investment in local government is needed to prevent situations like theirs?

I am really sorry to hear about what has happened to the hon. Gentleman’s constituent and his family, and the impact it had on them. There is absolutely more that we need to do to provide local support, which is why the Get Britain Working plan is not all being determined by Whitehall. Local leaders know best what local areas need, which is why we are devolving more resources, powers and responsibilities to local areas to ensure that we shift the focus towards prevention and early intervention and help people get back on their feet.

When cuts to incapacity support were introduced by the last Government through the work-related activity component, we saw severe rises in poverty, no significant increase in employment, and cases of mental ill health skyrocketing. In the north-east, we already have some of the highest rates of poverty and ill health in the country, so what assurances can the Secretary of State give me that these changes will not push people in areas like mine further into poverty and ill health?

This is absolutely about areas like those represented by my hon. Friend—areas that have been written off and denied opportunities for so long. It is really important that we look at this in the round. We are taking action to create more good jobs in every part of the country through the modern industrial strategy, clean energy and building 1.5 million homes. My right hon. Friend the Health Secretary is sending specific teams into the 20 areas with the highest levels of economic inactivity to drive down waiting lists. There is much more that we need to do to focus this on the areas that need help the most, and I look forward to working with my hon. Friend to make that happen.

Today, across the United Kingdom and in my constituency of Upper Bann, so many genuine benefit recipients are fearful of what lies ahead—people who are vulnerable and need a compassionate welfare system to assist them in their day-to-day living. Regrettably, no reassurance has been given to those people today, particularly on the four-point minimum requirement. There has been little mention of fraud and the genuine need to tackle it head-on. Does the Secretary of State not believe that equipping our benefit fraud officers with resources and powers to catch and deal with those committing fraud would be a better starting point than sweeping changes that will be unlikely to outsmart the fraudster, but will hit the most vulnerable?

The hon. Lady may not know, but we have a fraud Bill going through Parliament right now, because we believe that £8 billion being wasted on fraud every single year is unacceptable. I am more than happy to write to her to set out the contents of that Bill; we can then have another discussion.

The reality remains that over the last few weeks, thousands of the most severely disabled people in my constituency and millions across the UK have watched in disbelief as politicians debate cuts to the support that enables their very survival, leaving many at breaking point. Does the Secretary of State understand the real fear and distress that that has caused? Will she today commit at the Dispatch Box to ensuring that not a single person who currently receives PIP will be unfairly punished or left struggling by these plans?

I do understand the worry and anxiety. I hope I have made it clear to the House today that I do not start from a position of being tough: I start precisely from a position of compassion for people who can work and are being denied opportunities and for severely disabled people who will never work. That is one reason why we are overhauling our safeguarding processes to ensure that those who can never work are never reassessed, to give them the confidence and dignity that they deserve.

I welcome any initiative that will see more people getting back into work. Although I have some concerns about the wrong people being targeted—and the fact that there will not be the jobs for them to go to, because of the national insurance contributions increase—I will press the Secretary of State on the detail. I find it strange that she can tell us that this will save £5 billion, but she cannot give us even a ballpark figure—I do not expect it to the penny—for how much she will spend beyond and above the £1 billion she has already announced. I know that it will come out through the OBR, but can she not give us a rough idea of how much her changes will cost?

The hon. Gentleman may know that Government Members strongly believe in and support the independence of the OBR and the processes behind it. We can give overall figures today, but he will have to wait until the OBR assessment is published at the spring statement for the individual costings, how many people will be affected and by how much.

Many constituents have contacted me because they are afraid of losing their benefits. After 14 years of Tory neglect and chaos and several months of scaremongering, there is real vulnerability and fear in my constituency. Will the Secretary of State confirm that we on the Government Benches believe that those who cannot work are nevertheless entitled to a decent standard of living? Like her, I believe that good work is good for us; it is good for mental wellbeing, a sense of worth and economic security, and disabled people are entitled to those. Will she write to me and set out in detail the incremental support, including tech support, that disabled people in Newcastle upon Tyne Central and West can expect as a result of these measures, and when they can expect them?

I absolutely commit to doing that.

In her statement, the Secretary of State referred to right-to-try legislation being brought forward and to de-risking work, but the Treasury’s NIC rises make employing more expensive and the Employment Rights Bill makes it more risky. What assessment has her Department made with other relevant Departments of the impact of recent Government policies on job creation and opportunities for sick and disabled people to try work?

Labour Members believe that good work and employment rights make it more likely that people will take work, and that they will keep people in work—that is why we are bringing those changes forward. We have a lot of employers who want to work with us to get the people they need because they are struggling to fill vacancies. We are overhauling our approach to that, because we want to serve employers to better meet their needs.

Of course, everyone in our country who can work should work, and should receive appropriate support to do so. It is of the utmost importance to many Labour Members that Labour ensures that disabled people who can never work are supported and protected to live the best possible life in dignity. Can the Secretary of State tell me how an adult who cannot work—however much they would have liked to—because, for example, they have cerebral palsy, a visual impairment and learning difficulties, and who is on enhanced PIP and has limited capability for work and work-related activity, will be affected by these changes? What will be the impact on their finances?

I know that my hon. Friend cares passionately about these issues, and I have spoken to her about them many times. I absolutely agree, and we commit that people who will never be able to work because of the severity of their disability or health condition will be protected. In fact, by never going back and reassessing those people, I hope that we will make a positive improvement, giving them the dignity and respect they need and deserve.

Culture matters. Those who have been victims of the carers’ overpayment scandal describe the culture at the DWP as spirit-crushing, but the culture of the Government matters too. Last week, I spoke to my constituent Geoff, who lives in Haywards Heath and is partially sighted. He told me that he and the partially sighted community have been sick with worry about what is being brought forward today. Does the Secretary of State think that the pitch rolling that has gone on over the past 10 days is the right way to make these kinds of announcements?

I hope that from now on, hon. Members will focus on the proposals that we are actually putting forward. Culture really matters—that is why we launched an independent investigation into the carer’s allowance overpayments; we want not just to be told that we are putting things right but for independent voices to say that. Many of our work coaches in jobcentres are absolutely wonderful, but I have heard from other hon. Members about work coaches ringing deaf people. We must start changing that, looking at our training processes and putting all these things right so that everyone is treated with the dignity and respect they deserve.

In Erewash, there are many disabled and sick people who can never work, but who are forced to jump endlessly through hoops for the benefits they need to survive. I welcome the Secretary of State’s plan to switch off reassessments and end the needless stresses that these people must endure. Will she elaborate on those plans?

This is something that is personally important to me and the Minister for Social Security and Disability. We have seen cases in which, unbelievably, people whose disability will never change, or whose health condition will only get progressively worse, are being reassessed. While we switch reassessments back on and make them more face-to-face for people on the health top-up, we really want to ensure that there is dignity and respect for those who can and will never work. I would be more than happy to write to my hon. Friend with more details about that proposal in the Green Paper.

Has the Secretary of State ever been diagnosed with depression? I have—I have been in a situation where just getting up in the morning, having a shower and brushing your teeth feels like the biggest fight. Does she think that putting people who have been diagnosed with a mental health condition through more reassessments will make their mental health condition better or worse?

The hon. Lady will forgive me if I do not talk about any health issues I may or may not have had in the past, although she is brave enough to talk about them in this House. People’s mental health conditions affect them in many different ways; there are people with anxiety and depression who say to me that work has actually given them structure and purpose and helped them deal with the problems, while others have said that sometimes they just cannot get out of bed, let alone out of the house. We need a system that recognises the different and fluctuating nature of these conditions and does whatever is right for that person, to get them back to health and—if they can—back to work.

I was a manager in the employment service. It has always needed reform, whether that is telling people that they have to come back in six weeks to get help or—under the Tory Government—being told to move people from employment benefits on to incapacity benefits in order to say that there are more people in employment. How we go about reforming it is fundamentally important, and I do not think it should be linked to saving money—that is rather crass, and it has caused lots of anxiety for my constituents and for people elsewhere. Patriotic Millionaires has said that a tax of just 2% on assets over £10 million will bring in £22 billion a year. That is a better way to bring money in to help fill the black hole that we have found ourselves in because of the disaster of 14 years of Tory Government. Does the Minister agree that aspiration, compassion, care and fairness will be the hallmarks of this Labour Government?

Aspiration, compassion, care and fairness are absolutely the hallmarks of this Government—that is why we are bringing forward these reforms. As I said earlier to the House, I do not start from a spreadsheet; I start from my belief that everybody has a value and a contribution to make, in whatever way, and that we want people to fulfil their potential. That is what these reforms are about.

Given the announced changes to the personal independence payment, what assessment has the Secretary of State made of the potential impact on injured service personnel claiming the personal independence payment as an interim measure while their compensation claims are processed prior to the awarding of the armed forces independence payment, and will the armed forces independence payment also be within the scope of these changes?

I will look into that issue in detail, and will respond to the hon. Gentleman as soon as I can.

My right hon. Friend co-chairs the child poverty taskforce. Can she tell the House what analysis she has undertaken of the impact on child poverty of the reforms she is announcing today? Will she publish that analysis, and can she assure the House that these reforms will not make child poverty worse for any child living in a family where their parents or carers are in receipt of benefits?

My hon. Friend raises a very important point. As I said earlier, we will publish the equality impact analysis and the poverty impact analysis around the time of the spring statement. It is really important that we look at how more people will benefit from being in work and improving their incomes—that is essential. We will also come forward with our child poverty strategy, because we have a clear manifesto commitment to drive child poverty down. Children growing up in poverty could have their life chances damaged for years to come, and we are determined to put that right.

This whole statement is predicated on saving £5 billion at the expense of people with disabilities in our society. Anyone who has been through the trauma of trying to apply for a personal independence payment knows about the intrusive nature of the questioning, and about the great difficulty of obtaining that payment and then continuing to receive it in future. The Secretary of State’s statement has caused consternation and dismay to many people around the country—particularly those with disabilities—who are understandably alarmed that their benefits will go down and that they will live in greater poverty as a result. Can she say with hand on heart that no disabled person will be worse off after her statement, or will that £5 billion be taken at the expense of those in our society who already live the most difficult lives?

This statement is predicated on stopping people being written off—denied opportunities, denied hope and denied a future. It is about making the social security system sustainable for the long term, which is so important to me. When we have 1,000 new PIP awards every single day, many of those driven by mental health and young people, we have got to look at that. We cannot duck this challenge, because I want a social security system that will be there for centuries to come.

Order. I am hoping to try to get everybody in, but I will be finishing the statement at around 2.30 pm. Please help each other by keeping questions and answers short.

My constituents will welcome the Secretary of State’s commitment today to protecting with dignity those who cannot work because they are so severely disabled or because of illness. There are many sick and disabled people who can work with the right support, so can my right hon. Friend confirm that those people will get the support they need to get into work to build a better life for them and their families?

Yes. Members have rightly said that PIP is not a benefit related to work, but a contribution to the extra costs of living with a disability. Actually, 17% of people on PIP are in work. I want to expand opportunities for disabled people who can work to get into work, because the disability employment gap, which actually fell under the last Government, has flatlined. We want to sort that out, because we believe that disabled people should have the same rights and chances to work, if they can, as everybody else.

Can the Secretary of State offer some reassurance to Sue from Wareham about her 45-year-old son, who is permanently disabled through childhood illness? She told me that he has great abilities and works part-time with support, but every time there is a change of circumstance, he has to prove his permanent disability again. The Secretary of State has confirmed that there will be changes to reassessments by DWP, but will that also apply across other Departments, including the Department for Transport, for matters including bus passes and blue badges? Those reassessments cause huge mental health issues.

The hon. Lady raises an important point. I will look at that and write to her to make sure we address it properly.

While I accept that it is perfectly possible for people with severe mental health conditions to work with the right support—in Warrington, we already have an employment rate above the Government’s national target—is there not a risk that these proposals are premature and that we are legislating for the mental health services we might hope to have in the future, rather than where these services are today? Does the Secretary of State accept that the issue is not over-diagnosis, but the broken mental health services we inherited?

I have always believed we should follow the evidence on this. We have a clear commitment to recruit 8,500 new mental health workers and to have mental health support in every primary and secondary school to prevent problems from happening. We also need to roll out individual placement and support within the NHS. I have seen in my own constituency that it can be life-transforming, but we need to go further and faster to ensure that all people with mental health problems who can work do so.

Wales will be hit hard by these cuts, with the second-highest proportion of disabled people of working age in the UK. Stripping £5 billion from the system will only increase pressure on other services. Has the Secretary of State secured the approval of her Labour Welsh Government colleagues, as they will be the ones who will have to shoulder the cost of these damaging cuts?

Welsh Labour wants to see more people having the chances and choices to get good jobs. That is why we have a modern industrial strategy to create good jobs in every part of the country, why we are building 1.5 million new homes and why we want to see clean energy support. All those things will make a huge difference. We do not believe that the status quo is acceptable or inevitable. That is why our plan for change will create more good jobs in every part of the country. I hope that the hon. Lady and her party will welcome that.

I support the measures set out in this statement to get people who can work into work. I have been contacted by constituents who are worried, such as my constituent Lisa, who has a son with a severe disability. He will never be able to work and relies on support. Can my right hon. Friend assure me that people like my constituent, who cannot work and will never be able to work, will not be worse off under these proposals?

We absolutely will protect those who can never work. One thing I have not said to the House so far is that we are consulting in the Green Paper on whether we should increase the age until which children get DLA from 16 to 18. That is an important point to give people the reassurance they need and deserve.

Parity in our welfare benefits is a key feature of our Union. When the last Government introduced their welfare reforms, the Northern Ireland Executive saw fit to introduce mitigations for which they had to pay by taking money off health and education out of the block grant. If the Northern Ireland Executive decide to mitigate these cuts on this occasion, can the Secretary of State confirm that that money would again have to come out of needed services, such as health and education?

Full details on the impact of these changes on the block grant will be available at the spring statement. The last Budget provided the biggest ever block grant settlement since devolution. I will be working closely with my right hon. Friend the Secretary of State for Northern Ireland and the Northern Ireland Executive to make sure we do everything possible to help people in Northern Ireland into work and off benefits, to ensure that they have the same chances and choices as people right across the United Kingdom.

Peterborough is a youth unemployment hotspot. I know not many Members are left on the Opposition Benches, but one of the most shameful parts of their record has been writing off a generation, with one in eight young people not in education, earning or training. There is nothing progressive or good about a Government who write off young people and put them on benefits. I welcome the work that the Secretary of State has announced about employment support services for young people. Will she speak more about my passion, which is the Government’s youth guarantee and how we put into reality youth jobs for the future?

Young people in my hon. Friend’s constituency are much more likely to be unemployed than young people in the rest of the country, and I know his passion for the youth guarantee. We are investing extra support into the youth guarantee in his area, and I look forward to launching that youth guarantee very soon.

I of course applaud the intention of getting people back to work, but my inbox—like those of everybody else here, I am certain—is full of emails from petrified disabled constituents. The recurring theme is the absolute disbelief that once again, welfare cuts are being imposed by none other than a Labour Government. What will the Secretary of State say to my constituent, Jason, who lives in our city? He has been told by Leicester city council that it will now consider his PIP payment as income and so has increased the council tax he has to pay. How does the Minister expect Jason to find that additional £900?

I am happy for the hon. Gentleman to write to me about that constituent so I can look at the issue.

Three quarters of the people who claim universal credit and disability have gone without essential items in the past six months. The £5 billion cut is likely to make that worse for them. I have had lots of emails from my Liverpool Riverside constituents. As others have asked already this afternoon, will the Minister speak with the Chancellor about looking at a wealth tax? We need a wealth tax and not to be attacking the most vulnerable.

I know that my hon. Friend cares passionately about these issues. Her constituents will not only benefit from the £1 billion investment into employment support, but the first ever above-inflation permanent increase in universal credit, if people are on universal credit and PIP. We have already taken action to ensure that those with the broadest shoulders take a bigger burden, including our action on the non-dom tax status and a tax on the profits of utility companies. That principle of fairness is vital to us all.

I go on the tube twice a week, and the disability seat in the carriage says “Not every disability is visible”. Bearing that in mind, those with severe mental health issues, such as paranoid psychosis, anxiety, depression or post-traumatic stress disorder, already fear phone calls from withheld phone numbers. Will the Secretary of State commit to ensuring that they will not be impacted or hounded in the attempt to root out fraudsters? Does she accept that those with severe mental health issues may not understand their illness, or be able to explain it or grasp it? How will these people—my people; our people—be protected?

I think that everyone’s situation and condition is individual and personal to them, and that is why it is important that any reassessments are done on an individual case-by-case basis. There will be people with psychosis and schizophrenia who can never work, but I have met people in Leicester with precisely those conditions who have got work through the employment advice provided by the NHS’s individual placement and support service. That is why, as I have said, the pathways to work employment support is personalised and tailored to individual need. Given the size and complexity of the social security system, it is not easy for me to provide an answer now for the people whom the hon. Gentleman has mentioned. That is why we must have those personal assessments, and I want much more to be done to ensure that they are carried out properly.

Last night I received a response from the Minister for Social Security and Disability, my right hon. Friend the Member for East Ham (Sir Stephen Timms), to a written question that I had asked about the average payment for the daily living component of PIP. It revealed that the average payment was just £12 a day. The purpose of the daily living component is to cover the cost of extra help needed with everyday tasks such as washing, eating, using the toilet and getting dressed, but the Secretary of State’s proposal to tighten the eligibility criteria could mean that even those who are assessed as needing help on every criterion may not be entitled to PIP. Is it not wrong to balance the books on the backs of sick and disabled people in such a way?

I can confirm that we will focus PIP on those with the greatest needs by changing the assessment so that people will need to score a minimum of four points to qualify for the daily living component. That will apply to new claimants from November 2026. Reassessments will be conducted on a personal, case-by-case basis, and therefore, while I entirely understand why Members raise issues about individuals, we cannot determine those cases from the Dispatch Box.

I represent the second most deprived constituency in the United Kingdom, where nearly one in two children are living in poverty, and I worry about the impact that these measures could have on child poverty numbers. Moreover, the number of young people in my constituency who are not in work, education or training is double the national average, but they cannot gain access to the mental health support that would enable them to get into work. That is happening throughout Blackpool, but it is also happening across the country. What can the Secretary of State do to turbocharge the health service while also putting representatives of the voluntary sector, the third sector and the charity sector into jobcentres, so that people can find mental health support immediately rather than waiting for us to rebuild the NHS that the Conservatives left in such a terrible mess?

We are considering putting jobcentres into GP surgeries and community centres. I believe in a jobs and careers service going to where people are, rather than always expecting them to come to us. I think I am right in saying that authorities in some parts of the country, such as the combined authority in Manchester, have commissioned specific talking therapies for people who are looking for work. That is the direction in which we want to move, and I should be more than happy to discuss it with my hon. Friend in more detail.

Hundreds of disabled people in my constituency want to work, but they often face absolute poverty pay and feel that they would be better off on benefits. On average, disabled workers are paid £2.35 an hour, or £4,300 a year, less than other workers. How will Labour’s commitment in the King’s Speech to a new equality Bill ensure that disabled workers will finally receive equal pay at work, and can choose a good job over being—

Order. I call the Secretary of State.

I am delighted to tell my hon. Friend that today we launched a consultation on equality pay gap reporting, and I hope that that will make a huge difference.

If we do indeed believe in the social model of disability described earlier by my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball), may I encourage the Secretary of State, and indeed everyone, to find a different language in which to talk about this? When we describe disabled people as being unable to work, we ignore the fact that most disabled adults are in work, while many of those who are not are desperate to get into work but are held back by low pay and lack of opportunities. Can we look again at Access to Work to ensure that the largest and most profitable employers are bearing more of the costs of adequate—

Order. May I remind Members that there are a great many more for me to get in? I ask them please to help each other, and keep the questions and answers short.

My hon. Friend is right: there are more disabled people in work than ever before, and we need to recognise that and go further. We are launching a consultation on Access to Work to ensure that more people are able to secure that vital support, and that it goes to the right place at the right time.

I agree with the Government that welfare reform is necessary, but many of my constituents are very worried about the removal of support on which they rely. Fourteen years of austerity under the Conservatives took its toll on our nation, with public service cuts and the cost of living crisis pushing people to the brink. What are the Government doing to address the root causes of people’s inability to work, rather than just focusing on the symptoms?

We are focusing precisely on the root causes. We are focusing on what more we can do to change the world of work, get people back to health and back to work and give them the skills that they need, and on tackling the disincentives in the benefits system. I am not interested in tinkering around; it is too important for people, and life is short. I want to get it right, tackle the root causes, and put the country on a pathway to success.

Many organisations, including our own NHS, use punitive capability processes when scoring the illnesses of people who become sick while in work, which causes additional stress to those who need support the most. How will the Government help employers to ensure that their employees are supported properly when they experience ill health?

Our Keep Britain Working review, led by the former John Lewis boss Sir Charlie Mayfield, is dealing with precisely that issue: what more we can do to help employers to give sick and disabled people more opportunities to obtain work and stay in work.

The Resolution Foundation has warned that as a result of cuts in PIP, 620,000 people could lose about £675 a month, with the poorest families hit the hardest. Given that 870,000 children live in PIP-receiving households and 290,000 of them are already living below the poverty line, how can the Government justify pushing more disabled people and children into poverty rather than pursuing fairer alternatives, such as a 2% wealth tax on assets worth more than £10 million, which would raise £24 billion—five times as much as the suggested savings from the proposed cuts? Is “austerity 2.0” really the change that people voted for?

Spending on working-age sickness and disability benefits will still rise substantially over the current Parliament. The full assessment of the numbers affected, and by how much, will be published alongside the spring statement.

I thank the Secretary of State for her statement. Cuts in social security for disabled people under the last Government led to their living in poverty with little or no increase in employment rates. What assessments have been made of the impact of these changes on their income, and will the Secretary of State ensure that any reforms are compassionate and disabled people have a voice?

Many other Members have asked that question. We will publish the equality impact and poverty impact analyses alongside the spring statement. I believe that we need to treat people with dignity, respect and compassion, but must also face up to the challenges of a failing system that is currently not sustainable, not for the public finances—although that is relevant—but for the very people who will depend on this in future. That is what we are trying to change.

I thank my right hon. Friend for reassuring my constituents with profound disabilities that they will be protected under these reforms. My niece, who herself has autism and has faced significant barriers to work, is a health coach in a local jobcentre, where she is helping other people with disabilities, neurodiversity issues and mental illnesses to find work. However, she is frustrated by her lack of access to fit notes. Will the Secretary of State ensure that jobcentre staff have the time, information and resources that they need to help people with disabilities and health problems to find suitable and rewarding jobs?

As always, my hon. Friend has hit the nail on the head. We want to free up our work coaches’ time from tick-box benefit administration so that they can spend more time with sick and disabled people who need support, and can refer them to, for instance, mental health or debt advice services. When we do that, more people get into work, and both their finances and their mental health improve. We have already announced that we will free up 1,000 work coaches’ time to help more than 60,000 sick and disabled people, and that is just the start: we want it to be rolled out throughout the land.

I am one of the 6% to 8% of people living with a serious mental illness in employment, despite 80% of us wanting to work. I am here despite a mental health system that I have always found unsupportive, and because I went out of my way to forge my own pathway of support and care. Although I welcome the Secretary of State’s offer of a package of support, my plea to her is that she work with her colleagues in the Department of Health and Social Care to make sure that those of us who suffer with a severe mental illness have the true support that we need to access employment.

My hon. Friend is right. One of the things we learned during the pandemic is that a healthy nation and a healthy economy are two sides of the same coin. I believe we need to do much, much more to join up what the DWP does with what the NHS and, crucially, local skills and voluntary organisations do. That is not the way we have worked in the past, but that is what we want to change.

Having worked for all his adult life, my dad had a life-altering stroke in 2013. He was just 55, and PIP kept him alive for 10 further years. As the person who helped to fill in his PIP forms, take him to assessments and make the telephone calls, I can tell the House that, without a doubt, the system is already incredibly difficult to access. Will the reforms help speed up the process for PIP assessments and decisions, which take far too long under the current process?

Yes. We have announced in the Green Paper that, alongside the changes for which we will legislate, we will have a review of the PIP assessment process, led by my right hon. Friend the Minister for Social Security and Disability. We will work with disabled people, the organisations that represent them, and others to sort this out. One of the great tragedies is that it is a miserable system for everybody. I do not want it to be like that—we need to change it—and I really look forward to talking to my hon. Friend to get more of his ideas.

Labour believes in the value and dignity that having a job gives people, but too many disabled people who want a job are being let down and trapped by the current system. Organisations such as SWEDA—the Skills Work and Enterprise Development Agency—in West Bromwich help people with disabilities and long-term conditions into employment with tailored, local support. Can the Secretary of State confirm that this package of reforms will support people into good, fulfilling work via local organisations, and that we will protect people with long-term conditions who will never be able to work?

Yes.

The system is clearly broken, and I welcome the urgent work to get it fixed. What reassurance can the Secretary of State provide to children living in households that receive PIP but are in poverty? What reassurance can she provide to the one in five people in receipt of universal credit and disability benefit, who are reliant on food banks already? What reassurance can she give to my constituents, 6,000 of whom claim PIP, which they need for dignified lives?

Having chaired Feeding Leicester for years—unfortunately, I had to give it up when I got this job—I know only too well the issues that people face right across my city and my hon. Friend’s constituency. Our objective is to get those who can work into good work, because that is the sustainable way to tackle poverty and inequality in this country. We are also committed to developing a bold, cross-Government child poverty strategy, which we hope to publish shortly.

Being healthy is shaped by the world around us, from the homes we live in to the air we breathe and the money in our pockets. Does the Secretary of State agree that there is a moral case for tackling the social determinants of ill health and the causes of poverty, rather than cutting the benefits of the most vulnerable people in our society?

I have worked in health, and one of my first jobs involved tackling health inequalities when I worked at the King’s Fund charity. We are looking at building not only more homes, but more decent homes. We want people not just to get jobs, but to get good jobs. We are looking at raising the income of the poorest people with our new fair repayment rate, which gives an average of £420 a year extra to the 1.2 million poorest families. There is much more that we can do but, right across Government, our purpose is to tackle poverty and inequality by getting more people into good jobs. That is the Labour way.

I strongly congratulate the Secretary of State on the £1 billion package of employment support. Many active labour market policies have been shown to have considerable economic impact. Historically, it has been difficult for the Office for National Statistics to score the positive impacts of active policies, as opposed to the more straightforward impacts of budget reductions. Will the Secretary of State commit to working cross-departmentally to ensure that we have long-term investment in the health of our nation, which is so fundamental to the wealth of our economy?

Yes.

I welcome the reforms outlined today and the commitment to make sure that our most vulnerable disabled people are protected from these changes. In Darlington, we know the value of work, but I have come across constituents with learning difficulties who have been out of work for a long time. They have been in work placements and could work, but they were badly bullied and have been scarred by 14 years of rhetoric about how they are workshy. What reassurances can the Secretary of State give that they will be offered safe and secure work placements?

I am not interested in blaming people to grab easy headlines; we have had that for too long. I know that many people with autism and neuro-divergent people have been treated badly, which needs to change. If my hon. Friend would like to send more case studies and examples from her constituency, I will look at them to see what we can do. We will try to put things right.

Many will see the removal of £5 billion from the social security system not as reforms, but as the continuation of the failed ideology of Tory austerity, which has already cost thousands of lives. I have had hundreds of disabled constituents tell me that they are absolutely terrified by what the Government are planning to do. Does the Secretary of State really believe that it is fair to balance the books on the backs of disabled people and the poor, rather than introducing a wealth tax on the super-rich?

Let us be honest: that is not what we are doing. I do not accept the status quo—it is miserable for people who can work, and miserable for those who cannot. That is what I want to change.

I thank the Secretary of State for the tone that she has struck today. We are talking about people’s lives, not figures on a spreadsheet, and I hope to see that reflected in the delivery of these plans. Disabled people’s trust in the system is low following 14 years of a failed punitive approach by the Conservative party, and speculation in recent days has left my constituents feeling fearful. What assurances can the Secretary of State give that those with the most severe disabilities—those who are genuinely unable to work—will be no worse off under these plans?

I can absolutely give that commitment. Many hon. Members have raised the issue of culture, which is about how people feel they have been treated and the headlines that they see in the papers. It is really important that we change that. I know that we cannot do so overnight, but the entire team in the DWP—our Ministers and officials—want to change things so that we can get people on a pathway to success.

I thank the Secretary of State for her statement. Welfare reform must ensure that incentivising people into work does not produce unintended health consequences, not least by generating fear and uncertainty, as she rightly points out. Does she agree that we need to address the health inequity issues that are delaying treatment of mental illness, and our underlying public health and inequality issues? Welfare reform and NHS transformation must complement each other, to make sure that no one is left behind.

I absolutely agree that we need to tackle these issues, but there is more and more evidence that good work is good for the mental health of people with anxiety and depression, and for those with serious conditions, if support is provided in the right way. I have seen it for myself in my constituency, including through the work that the NHS is doing. We have to spread that far more widely.

We know that helping people to stay well and manage long-term conditions or disabilities is almost always cheaper in the long term. Can the Secretary of State tell me how she will account for the potential wider system costs of changing the amount of money that is available to people with disabilities or long-term conditions?

For many years before I was appointed as a shadow DWP Minister, I worked in health and social care, and I know that helping people to manage their long-term conditions is absolutely essential. We must give people power, control and agency over their lives, rather than telling them that a doctor or somebody else always knows best. I deeply believe in that principle, and I will work closely with my right hon. Friend the Health Secretary, because I know he believes that, too. There is much more we can do, but we will definitely make a start.

Order. I think I will get everybody in at this rate, thank you.

I recently held a child poverty roundtable in my constituency, and one of the issues raised repeatedly was that many people who want to work find themselves worse off when they lose benefits and find themselves pushed into hardship. What assurances can my right hon. Friend provide for my constituents that under these changes they will be better off in work and will no longer be penalised for wanting to improve their life’s circumstances and those of their families?

My hon. Friend raises a really important point, and it would be really good if she talked to my right hon. Friend the Minister for Social Security and Disability, who is reviewing universal credit, as we promised in our manifesto, to tackle poverty and make work pay. We have to make that a reality for everybody in this country, and I am sure that, if she talks to him, he will speak more about what we are doing in this regard.

Last week, my constituent Ellie, who is visually impaired, visited the local jobcentre, but as a full-time student seeking part-time work, she was belittled, spoken over and told that she could not get help because she was on PIP, not on UC. She left feeling devastated by that experience. Can the Secretary of State reassure me and Ellie that such an experience will become a thing of the past for people like her who are desperately seeking work?

That is absolutely my intention. I ask my hon. Friend to send me the details, because I will look into that personally.

Does my right hon. Friend agree that the clue is in the name of our party? Because we believe in dignity in work and enhanced workers’ rights; dignity and far more support for disabled people and people with health conditions seeking work, particularly with the right to try; and dignity and compassion for those unable to work, especially in ending reassessments. Does she also agree that this Labour Government will get Britain working and get welfare working better, with compassion and support at its heart?

I very much agree with my hon. Friend’s sentiments. I do not pretend that this will change overnight, and I know it is a huge agenda, but we are in politics to make a difference—and a big difference—because, as I have said, life is short, and there is much we need to do.

Many of us in this place have fought alongside parents of severely disabled people, not least against our broken SEND system. Can the Secretary of State reassure those parents, who may be looking at the proposed changes to UC health eligibility for under-22s and feeling deeply dismayed right now?

We are consulting on this proposal, and we want to make sure that those severely disabled people who will never work will be protected. However, I also know that there are many young people with special educational needs and learning difficulties who, with the right support, can make a contribution, live independently and get work. I am working closely with my right hon. Friend the Education Secretary to get this right, because it is really important that we ensure all young people get the support and opportunities they deserve.

My right hon. Friend will know that the Tory legacy in coastal communities such as mine in East Thanet is a broken welfare system and a broken economy. The number of people claiming PIP has more than doubled in my constituency since 2018, and the statistics on young people claiming for mental health conditions are particularly heartbreaking. However, two things can be true at once: too many people are being written off without a path to wellness and work; and there must be reliable support for those who cannot work. Can my right hon. Friend explain how reducing support for those who struggle to wash and dress themselves will help tackle either of these challenges?

My hon. Friend, as always, speaks passionately about her constituency and the need to make sure that the support for people who can work is there, but also that we protect those who cannot. I would say that every case needs to be judged on an individual basis, and we will make sure that that happens. I say to the House, and to you, Madame Deputy Speaker, that I know many people would have wanted to ask more questions and to say more, but my door is always open. We want and need to get this right, and we will have more debates about this, but if any hon. Member on either side of the House wants to contact me with more questions, I and the team will do everything we can to address those openly, honestly and quickly.

The final question from the Back Benches will come from Chris Vince.

Thank you, Madam Deputy Speaker. I thank the Secretary of State for her statement. I think we all know that the current system is not only broken, but unsustainable. I welcome her focus on supporting the long-term unemployed, and I would point to some good examples of the work we are doing in my constituency. However, would she agree that we need to support those constituents in Harlow, many with severe disabilities, who cannot work, and end this merry-go-round of constant reassessment?

Madam Deputy Speaker, you were saving the best till last, as always, with my hon. Friend. We absolutely will protect those with severe disabilities who can never work. I do not want to see them having to go through deeply worrying reassessments, and we want to put that right. For people in Harlow who can work but have been denied such opportunities, we will fix the broken system, tackle the perverse incentives left us by the Conservatives, and give people the hope and opportunity that there are better days ahead.

Just to let Members know that about 100 Members have asked questions on the statement.

On a point of order, Madam Deputy Speaker. When I asked a question during the statement, the Secretary of State said, “It does not mean that.” I had raised the list on the Government’s website of the descriptors used to qualify somebody for a certain number of points in relation to the daily living component of PIP. Each of the descriptors I mentioned has two or three points associated with it: “Needs supervision…or assistance to be able to manage therapy that takes…3.5 hours a week. 2 points… Needs assistance to be able to wash either their hair or body below the waist. 2 points… Needs assistance to be able to get in or out of a bath…3 points … Needs supervision…to be able to manage toilet needs. 2 points… Needs assistance to be able to dress or undress their lower body”— needing the physical help of another person—also “2 points.” At the moment, someone with all of those needs would qualify for this component of PIP, but under her new rules they will not. How can I give the Secretary of State the opportunity to correct the record?

That is not a point of order, but the hon. Lady has got her point on the record.