Personal Independence Payment

The current PIP application process is outdated and can be very difficult to follow. Alongside proposed legislative changes, the Department’s health transformation programme will greatly improve the experience of applying and, I hope, increase confidence in the outcomes of the assessment as a result.

The response to my recent written question on disability benefits applications listed the 18 most common disabilities and health conditions and showed that hundreds of thousands of people were awarded fewer than four points in all living activities and will miss out on the daily living component of PIP. They include people like Jemima in Harpenden, who suffers from severe physical disabilities and thyroid cancer and finds even walking very difficult. Will the Government please commit to reforming the criteria to better reflect the full complexity of claimants’ conditions?

I recognise that many people who are on the PIP daily living component who did not get four points on anything at their last assessment are feeling rather anxious. However, what they need to know—I hope the hon. Member will reassure her constituents on this—is that it is the view of the Office for Budget Responsibility that most of them will nevertheless still have their PIP after their fresh assessment once the changes have been introduced. They will be introduced in November next year and an individual’s assessment will take place whenever their first award review is after that date. The OBR is confident and clear that most of those people will keep their PIP.

Over 4,500 people in Ely and East Cambridgeshire claim PIP, and they are not just anxious, as you put it; they are seriously worried that they are going to lose the payments and, with them, their independence. Contrary to what you said—sorry, contrary to what the Minister said—the Government’s own data suggests that 85% of people getting standard payments and 11.5% of those getting enhanced payments will lose support under the proposed changes. What steps is the Minister taking to support those who will be affected, including to make sure that their health and eligible care needs are met and, most importantly, that they can maintain their independence?

I suggest that, in future, shorter questions might prevent mistakes such as “you”.

It is really important for claimants of PIP that its funding should be sustainable into the future. The trajectory of the past few years has been unsustainable. We are taking action to put that right. The hon. Member is wrong to say that because people did not get four points last time, they will not keep their PIP. As I said, the view of the OBR, which I think is correct, is that most of them will. We are consulting on how to support those who will lose their PIP as a result of the changes that we have announced.

Ministers have highlighted that the PIP recipients who are expected to lose payments make up one in 10 of the total PIP caseload. That suggests that the impact of the cuts will be limited, but it still represents 370,000 current recipients, who are expected to lose £4,500 on average. However, those numbers rest on a set of assumptions that the OBR has described as “highly uncertain”. DWP data shows that 1.3 million people currently receiving PIP daily living payments would not meet the new criteria. Before MPs are asked to vote on imposing such appalling poverty, will the DWP or the OBR provide further evidence underpinning those claims?

The OBR has published its assessment, and my hon. Friend is right that it has assessed that one in 10 of those receiving PIP in November next year will have lost it by 2029-30—one in 10; not the much larger proportion that we were hearing about earlier. Following that, we will be able to introduce the biggest ever investment in employment support for people out of work on health and disability grounds. We do not want any longer to trap people on low incomes for years and years; we want people to be able to enter work and fulfil their ambitions. That is what the investment will allow.

Is it not the simple and sad truth that any MP who votes for the upcoming welfare Bill will be voting to take PIP from disabled people who need assistance to cut up their food, wash themselves and go to the toilet?

No. Members will be voting for reforms to open up opportunities for people who have been denied opportunities for far too long. We are putting that right.

I call the shadow Minister.

I respect the Minister very much, and I know that he cares deeply about people who rely on the social security system. That is why it is such a tragedy that he is presiding over these profound reforms without having consulted disabled people. Can he explain why so many benefit claimants feel that these reforms have been rushed through, not to make a fairer system but because the Treasury demanded cuts to meet the fiscal emergency created by the Chancellor’s job-destroying, growth-stopping Budget? They are right to think that, are they not?

We are putting in place a fairer system. Action was urgently needed. In the year before the pandemic, PIP cost the Government £12 billion at current prices, and last year it cost £22 billion. It also went up last year alone by £2.8 billion. PIP required urgent action, and that is what we are taking.

I am just sorry that there has been so little consultation with the victims of the changes that the Government are introducing. One area where the Government do not seem to be looking for savings is in the Motability scheme. It was supposed to help physically disabled people get around, but now we have 100,000 new people a year joining the scheme, many of them not physically disabled at all. One in five of all new car purchases are bought through this scheme, and it is costing taxpayers nearly £3 billion a year. I know that the Minister will blame us for the system, but the fact is that the Government are not even looking at Motability. They have had a year, and it is their policy now. Will the Minister commit to a proper review of the Motability scheme, and if not, why not?

I am not sure whether the shadow Minister wants me to go further or not so far—he seems to be facing both ways. He is right that we are not at this point proposing any changes to the Motability scheme.

I call the Liberal Democrat spokesperson.

Recently I met Kathryn from my constituency who had to give up a £90,000-a-year job in order to care for her husband. With 150,000 carers set to lose their allowance due to PIP eligibility reforms, some of our country’s most hard-pressed households face losing £8,000 a year. Will the Minister confirm that even if the welfare reforms work out to the most optimistic expectations, there will be far more net losers that net gainers among PIP claimants?

Among households as a whole, there will be more net gainers than net losers from the package. The reason for that is the increase to the standard allowance of universal credit, which according to the Institute for Fiscal Studies is the biggest increase to the headline rate of benefit since at least 1980. We are consulting on support for those who will lose carer’s allowance because of the changes and considering what additional help they may need, including for health and care needs. The hon. Member will have seen in the Bill we have published that we have committed to a 13-week run-on of benefit after an assessment decision so that people have time to adjust to the new situation.