Welfare Reform

15:37:00

With permission, I will make a statement on the Government’s welfare reforms. This Government believe in equality and social justice, and we are determined to build a fairer society in which everyone has the chance to fulfil their potential and achieve their ambitions, no matter where they were born or what their parents did. We know, as all Labour Governments have known, that the only way of unlocking the potential of individuals, and of our country as a whole, is to collectively provide real opportunities and real support. I am proud of the steps that this Government have already taken to deliver on our promise of a better future for all. [Interruption.] We are creating more good jobs in every part of the country, including through our modern industrial strategy and plans for clean energy. We are—[Interruption.]

Order. I say to those on the Opposition Front Bench that the statement has only just started. You might not be interested, but I know my constituents are. I expect the same courtesy when you speak.

We are investing in our vital transport infrastructure and in skills, and getting the NHS back on its feet. Our landmark Employment Rights Bill will improve the quality of work, and our increases in the national minimum wage are helping make work pay. But alongside these vital steps, we need to reform the welfare state. The principles set out in our “Pathways to Work” Green Paper are rooted in values that I know many MPs share: that those who can work must work, but often need proper support to do so; that those who can never work must be protected; and that the welfare state must be fair both for those who need support and for taxpayers, so that it is sustainable for generations to come. But the system we inherited from the Conservative party is failing on all those fronts. It incentivises people to define themselves as incapable of work just to be able to afford to live. It then writes them off, and denies them any help or support. The result is 2.8 million of our fellow citizens now out of work due to long-term sickness, and almost 1 million young people not in education, employment or training, which is a staggering one in eight of all our young people. The future sustainability of the system has also been put at risk, with the number of people on personal independence payment set to more than double this decade to over 4 million, with awards increasing at twice the rate of increases in the prevalence of disabled people in our society, adding 1,000 new PIP awards every single day. I know that Government Members have welcomed many aspects of our reforms: our plans to bring in the first ever sustained, above-inflation rise to the universal credit standard allowance—the first permanent, real-terms increase in the headline rate of out-of-work benefits since the 1970s—which is an historic change in the direction of public policy; the biggest ever investment in employment support for sick and disabled people, quadrupling what we inherited from the Tories to £1 billion a year; our plans to ensure that people with severe, lifelong health conditions will never be reassessed, removing all the unnecessary and unacceptable anxiety this brings; and our plans to legislate for a right to try, guaranteeing that trying work in and of itself will never lead to a benefit reassessment and giving people the confidence to take the plunge and try work, which many organisations have called for for years. However, there have also been real concerns about our initial proposals. We have listened carefully, and we are making positive changes as a result. First and foremost, many Members of the House, alongside disabled people and their organisations, have been very concerned about requiring existing claimants to score a minimum of four points on at least one activity to be eligible for the daily living component of PIP when they are reassessed after November 2026. They have also been concerned that the pace of change was too fast. I fully understand that even though nine out of 10 people claiming PIP when the changes come in would be unaffected by the end of this Parliament, this has caused deep and widespread anxiety among existing claimants, because they rely on the income from PIP for so many different aspects of their lives. So we will now ensure that the new four-point requirement will apply only to new claims from November 2026. This means that no existing claimants will lose PIP because of the changes brought forward in the Universal Credit and Personal Independence Payment Bill, and existing claimants of passported benefits such as carer’s allowance will continue to get them, too. Some people have said they are concerned that this will create a two-tier system, but I say to the House, including Conservative Members, that our benefits system often protects existing claimants from new rates or new rules, because lives have been built around that support and it is often very hard for people to adjust. For example, some people still receive the severe disablement allowance, which was closed to new claims in 2001. When Labour introduced the local housing allowance in 2008, existing claimants stayed on the old, higher rates of housing benefit, and many people are still on disability living allowance, which PIP replaced in 2013. We believe that protecting existing claimants, while beginning to focus PIP on those with higher needs for new claimants, strikes the right and fair balance. The second important question raised by Members was about seeing more details of our wider review of the PIP assessment before being asked to vote on the changes in the Bill. Many MPs also want to know that the views and voices of disabled people will be heard at the heart of our plans. So we have today published the terms of reference for our wider PIP review, led by the Minister for Social Security and Disability, to ensure that this vital benefit is fit for the future, taking account of changes in society since it was first introduced. The review will look at the role of the PIP assessment, including activities, descriptors and the associated points, to ensure that they properly capture the impact of long-term health conditions and disability in the modern world. It will be co-produced with disabled people, their organisations, clinicians, other experts and MPs before reporting to the Secretary of State by autumn next year, and implemented as soon as possible thereafter. The third issue of concern was that our plans to freeze the universal credit health top-up for existing claimants, and for future claimants with severe lifelong health conditions and those at the end of life, would not protect incomes in real terms, even with the increase in the universal credit standard allowance. I can today confirm that we will ensure, for those groups, the combined value of the universal credit standard allowance and the health top-up will rise at least in line with inflation, protecting their income from these benefits in real terms, every year, for the rest of this Parliament. Together, with the changes to our proposals for PIP, that will ensure that no existing claimants are put into poverty as a result of the changes in the Bill. Finally, while there has been widespread support for the extra investment that we are putting into employment support for sick and disabled people, I know that many Labour Members have been concerned that that is not enough. I can today announce that we are putting an additional £300 million into employment support for sick and disabled people. We will be delivering a total of £600 million for support next year, £800 million the year after and £1 billion in 2028-29, increasing our total spending on employment support for sick and disabled people to £3.8 billion over this Parliament, because disabled people who can work should not wait to have the same rights and chances to work as everybody else. The measures that we are announcing today will cost around £2.5 billion in 2029-30, and the overall savings and costings of our reform package will be certified by the Office for Budget Responsibility in the normal way at the next fiscal event. Welfare reform is never easy, but it is essential because there is no route to equality or social justice based on greater benefit spending alone. The path to a fairer society, where everyone can thrive, where people who can work get the support they need and where we protect those who cannot work—that is the path we seek to build with our reforms. Our plans are rooted in fairness for those who need support and for taxpayers. They are about ensuring the welfare state survives, so that there is always a safety net for those who need it and that it lasts for generations to come. Above all, our reforms are rooted in our fundamental belief that everyone can fulfil their potential and live their hopes and dreams if we provide them with the right help and support. This is the better future that we seek to build for our constituents and our country. I commend this statement to the House.

15:48:00

I thank the right hon. Lady for advance sight of her statement. This is a Government in chaos: open rebellion from their own Back Benchers, unfunded U-turns costing billions, and welfare plans that are not worth the paper they are written on. Their latest idea is a two-tier welfare system to trap people in a lifetime on benefits and deny them the dignity of work, while leaving the taxpayer to pick up the ever-growing bill. It is a long-held Conservative belief that those who can work, should work. Work provides security and purpose. That is why we launched universal credit, simplifying complex benefits and ensuring that work always paid. And it works. In the decade up to the pandemic, we got the number of people on benefits and the benefits bill itself down. Some 800 jobs were created for every day that we were in office, giving millions of people the dignity and security that work brings. But then, during the pandemic, we saw something new. The health and disability bit of our benefits system started to break. The bill is forecast to hit £100 billion by 2030. One in every four pounds of income tax will be spent on health and disability benefits—more than the entire defence budget. That is not fair for the taxpayer, not fair for people who are written off, and certainly not sustainable for the country. Despite Labour having 14 years in opposition and now a year in government, they still do not have a plan to bring down the welfare bill or get people into work. What we have before us now is a rushed and chaotic compromise that is not reform in any sense of the word. It is woefully unambitious about savings, conspicuously lacking in compassion and achieves no meaningful change of a system we all know is broken. Thanks to the Government’s latest climbdown, we are left with a plan that will save just £2.5 billion of a £100 billion bill by introducing a two-tier system. Two people diagnosed with Parkinson’s a week apart will now receive different levels of support—all to clear up an internal Labour argument. The Government’s own impact assessment shows that these plans will not get a single person into work. The idea that work is the guiding motivation for these changes is laughable. There are things that the Government could do. They could reform the fit note system, which sees 94% of people who apply told that they are too sick to do any work at all. They could say today that they would make all sickness benefit assessments face to face. They could get a grip of the rising claims for common mental health problems, such as anxiety and depression. Claims for those and neurodevelopmental conditions such as ADHD are the main reason for the steep rise in the number of people on sickness benefits, making up more than half of all new claims. The Centre for Social Justice has found that the Government could save up to £9 billion by reforming those benefits. However, nothing that we have seen from Labour over the past couple of weeks suggests that it has the courage and conviction to grip that problem. In the meantime, our welfare bill will only continue to rise. We agree on the need for reform and have set out the conditions under which we would support the Government: first, the welfare budget must come down; secondly, we need to get people back into work; thirdly, there must be no new tax rises to pay for increases in welfare spending. But with the welfare bill ever growing, unemployment rising and jobs disappearing, the Bill fails on all accounts. Will the Secretary of State confirm whether the changes she is announcing today will be paid for through borrowing or taxation? Where are these good jobs she claims to be creating, when vacancies are going down and unemployment is going up? Has she read the impact assessment for the Government’s Employment Rights Bill, which makes it clear that it will be harder for people to find work as a result? Why did it take the Government a year to publish the terms of reference for their PIP assessment review, and when can we expect changes if it does not report back until autumn 2026? Could I try one more time to ask what the difference is between the Secretary of State’s right to try guarantee and our chance to work guarantee? Finally, is this it? Are there any more savings? Are the Government not going to get any more people into work? Is this the extent of their ambition for reforming the welfare system during their time in office? In five years’ time, will this be the Secretary of State’s legacy?

I am in listening mode, and I listened carefully to what the hon. Lady said: once again, her strategy seems to be to rail against the problems that she and her party created. She has some chutzpah to talk about a two-tier system, when that is precisely what the Conservatives introduced when they protected people on legacy benefits when they moved on to UC and replaced DLA with PIP. They were part of that, and the hon. Lady should admit that rather than making those points. She said we should bring back face-to-face reassessments. We are doing so—it was the Conservatives who switched them off. To be honest, I am still no clearer about what the Conservatives’ policy actually is. The hon. Lady and the shadow Chancellor, the right hon. Member for Central Devon (Sir Mel Stride), claim that they had a plan to cut £12 billion from the welfare bill in their manifesto, but the truth is that it was nothing but a vague idea about turning PIP into vouchers. She talks about fit notes—I think the Conservatives tried to reform them about three or four times but completely failed, as have all their other efforts. The one change the Conservatives did propose was to the work capability assessment, and their consultation was ruled illegal by the courts. What is beyond doubt is the mess that they left our welfare state and country in. Economic inactivity was rising; it is coming down under Labour. Disability benefits were doubling, with the cost to taxpayers soaring. We are putting in place real reforms based on our values—fair for those who need support and for taxpayers. That is the leadership that this country deserves.

I call the Chair of the Select Committee on Work and Pensions.

I am grateful to my right hon. Friend for her statement. I absolutely agree that we must reform our social security system; under the previous Government, it neither supported nor protected disabled people. I am also very supportive of the principles that the Government have set out. May I query some of the points that the Secretary of State has raised, however, particularly about a new PIP assessment process under the PIP review that my right hon. Friend the Minister for Social Security and Disability will be undertaking? The Secretary of State said that the four-point requirement will not apply until November 2026, and that the review will report in November 2026, but surely the PIP review should determine the new process. If this is being truly co-produced with disabled people and their organisations, the review should determine the new process, the new points and the new descriptors. We should not predetermine it as four points now.

I thank my hon. Friend for her question, and I look forward to giving evidence to the Select Committee about our overall proposals. The Bill brings forward a four-point requirement for all new PIP claims after 2026; I have been very clear that that will apply only to new claimants. We are also committed to the wider review of PIP so that it is fit for the future. That will include considering the assessment criteria, the activities, descriptors and associated points to ensure that they properly reflect the impact of disability in today’s world. The review will conclude by autumn 2026, and we will then implement as quickly as possible any changes arising from it. We have to get the right balance here. I have been a long-standing champion of co-production, including when I was the shadow Minister for social care. We have to do that properly, but the four-point minimum will be in place for new claimants as we look to make changes for the future.

I call the Liberal Democrat spokesperson.

The Prime Minister and many Ministers have identified that the benefits system is broken and its cost is skyrocketing, but balancing the books on the backs of the poor is wrong-headed in the extreme. The proposals today are a leap into the dark. My Liberal Democrat colleagues and I are really concerned that they are rushed proposals. Legislation that is rushed is often wrong, with unintended consequences. As the Member of Parliament for Torbay, I am concerned, as my Liberal Democrat colleagues are, about the disabled and long-term sick, their children, their families and carers. There are some root causes. Our broken NHS and social care system needs to be resolved so that support is there for those most in need. Our Access to Work scheme is broken and needs resolving as a matter of urgency. There are some real challenges, so I hope that the Secretary of State will give some genuine answers. What consultation has she undertaken with carers? What cost shunting for our care and social needs system has she identified in the proposals? Finally, will she consider withdrawing these proposals so that there is adequate consultation and scrutiny to avoid any bystanders being hit?

I know that the hon. Gentleman cares passionately about these issues. He raises the urgent need to ensure that our NHS is back on its feet. We are beginning to make a difference, with waiting lists down for the first time in two years and with 4 million appointments—more than double we promised—created in our first year. The hon. Gentleman talks about the failings of Access to Work. I absolutely agree: that is why, as part of the Green Paper, we are looking to reform it so that it is available to more people in future. We care passionately about family carers. As I said in my statement, existing PIP claimants will be protected as a result of the changes announced today, as will those carers whose carer’s allowance is a passported benefit. We are also looking at the future of social care with the review by Louise Casey. We are bringing these changes forward because we do not think it acceptable that the UK has one of the widest disability employment gaps in western Europe, at 28%, which is much higher than Germany, France and Sweden. We think that is unacceptable and we want to change it. That is why we are making these reforms.

Order. Can we try to speed up questions and answers? No, it is not the Secretary of State’s fault; I am just thinking of the numbers. Everybody wants to make a comment, and I understand why. Johanna Baxter will give us a good example.

I welcome my right hon. Friend’s statement, the additional £300 million for employment support and that the PIP review will be co-produced with disabled people and their representatives, but many of my constituents are relying on the Scottish Government for employment support and for getting waiting lists down to help them back into work. Will she outline what discussions she is having with the Scottish Government to address those concerns?

Our new jobs and careers service applies in all parts of the UK—including Scotland—to help get more people back into work with personalised support. The spending review has delivered an additional £9 billion for Scotland. It is the biggest ever settlement in the history of devolution. I hope that the SNP matches our ambition to get more people into good work instead of cutting the employability budget as it has done in recent years.

I think that the vast majority of people in this country believe in a welfare system that is compassionate to the vulnerable, and particularly to the disabled, but they can no longer understand why so many people here—in contrast to other similar countries—are in this situation where they are not working.

It’s because you were in power for 14 years.

Yes, we were in power for 14 years, and during covid, when I was a Minister, we made decisions such as stopping face-to-face assessments because we could not do them. We all recognise that the recovery from that covid time has not gone as well as it should, but if the Secretary of State cannot deliver a shift in the numbers, the economy will be in a death spiral. She needs to recognise that these changes need to be reset radically to meet the country’s expectations.

I absolutely believe that we have to reset the system. We have to make sure that everybody who can work gets the opportunity to do so and the support they need. That is precisely what we are trying to do with these plans. I gently say to the right hon. Gentleman, who I admire, that it is precisely that failure and that mess that we are now trying to tackle.

I thank the Secretary of State for the movement made in the last week. It would have been good to have had those conversations earlier, but we are where we are. In response to the Chair of the Work and Pensions Committee, my right hon. Friend spoke about the November deadline and the four points kicking in. Will she explain to the House the rationale for settling on those four points in one category prior to the Timms review?

Our objective here is as it always has been, and I am grateful to my hon. Friend and others for all their engagement with us. We are making these changes because we have to both get more people who can work into work and try to begin to focus this really important benefit on those with higher needs so that it is sustainable for the future. That will not affect existing PIP claimants, who will have their incomes protected; that is a very positive change that we are making. The Timms review will look at those descriptors and the points that are allocated as part of a much wider assessment, because we have to ensure that this benefit lasts for the future so that it is always there for those in greatest need.

The Secretary of State tells us that this week’s U-turn will cost £2,500 million a year by 2029. Will she tell the House how she proposes to cover that expense?

This change will be fully funded, and that will be set out in the normal way at the next fiscal event, as I am sure all hon. Members will appreciate.

I welcome progress, but I cannot countenance sick and disabled people being denied support to enable them to be independent in the future, and 150,000 people being pushed into deeper poverty. Nor can disabled people across our country support these measures. It is a matter of conscience. Will the Secretary of State set out why we are voting on these matters tomorrow, when the Timms review means that there could be real changes to the criteria used in assessments for people to score four points? It feels like signing a blank cheque.

I know my hon. Friend cares passionately about these issues, but no existing claimant will be put into poverty as a result of the changes in the Bill. The figures that she is giving are about notional future claimants, and they take into account none of the record levels of employment support that we are putting into the system. We have published very clear evidence that proper support programmes can get sick and disabled people into work and to stay in work, making sure that they can improve their incomes and their lives. We have absolutely committed to co-producing the Timms review; indeed, we will be working very closely with disabled people on our reforms to access to work, and how we ensure that the pathways to work investment gets the best results for disabled people and their families. That work will take time, but we will implement the decisions as soon as possible.

My constituent Steve had been a fit, active working person until about a year ago. Since then, he has been debilitated by ME, which has left him able to get out of the house for only about an hour every fortnight. Even getting dressed leaves him needing a lie down. PIP is already difficult for people like Steve to access. He told me that he would rather have lost both his legs than have got ME. Could the Secretary of State tell Steve why, if he had got ME two to three years later, he almost certainly would not have been eligible for any PIP at all?

I am deeply concerned to hear about what the hon. Lady’s constituent has been through. I have many constituents myself who have real needs but have struggled to get PIP. We absolutely want to make sure that the whole assessment process works as effectively as possible. I urge her and her constituents to feed into the Timms review. Once again, existing claimants like her constituent will not lose their income as a result of the changes in the Bill. It is very common throughout the benefits system to have existing claimants protected on old rules and old rates. That is what we are doing today.

I welcome the words of the Secretary of State that recognise the need to enable disabled people to fulfil their potential. Since April, I have engaged with the Government, making it clear that I could not support the proposals on PIP. Our manifesto committed to championing the rights of disabled people and the principle of working with disabled people. Having no public consultation on these plans excludes the voices of disabled people. This is not just about process; this makes disabled people worse off. The principle of fairness means that disabled people had a legitimate expectation to be consulted, in order to fulfil the public sector equality duty under section 149 of the Equality Act 2010. Why did the Department for Work and Pensions choose not to consult with disabled people on the PIP proposals, and what work will it do to win back the trust of disabled people?

My hon. Friend is a powerful voice, and I know she will always remain so in this House. We are absolutely committed to co-producing this PIP review, led by the Minister for Social Security and Disability. She may know that we are also setting up collaboration committees on access to work and pathways to make sure that we really get this right. I look forward to meeting her and many other disabled people and their organisations to make sure that we get this right as we go forward.

To describe it as fair and equal to treat people with identical conditions differently purely on the basis of whether they are an existing recipient of benefits is Orwellian newspeak on stilts, isn’t it?

So why did the Conservative party do it for 14 years?

I thank the Secretary of State for her statement. Will the Timms review have the powers to review the planned budget savings for future claimants of PIP and universal credit health components? Also, if claimants request a reassessment because of worsening health conditions, will they be assessed on the current criteria or the new eligibility criteria?

The PIP review is not driven by an objective of making savings; it is about making sure that this vital benefit is fair and fit for the future. As is the case now, people can request reassessments whenever they want. Existing claimants will remain under the current rules, unless they request a reassessment, until November 2026. From then onwards, there will be that four-point minimum.

If this is what Labour thinks people voted for and what people wanted when they voted in July last year, why was it not in the Labour manifesto? Why did Labour not put in its manifesto that it was going to cut the winter fuel payment, keep the two-child cap and push 150,000 more disabled people into poverty? Is it perhaps because the Secretary of State realised how deeply unpopular and wrong these changes would be?

I do not expect the hon. Member to have read every line of our manifesto, but reforming the benefit system was in it. So too was our commitment to tackling child poverty, and I am beyond proud that the Chancellor invested the resources we need to extend free school meals to all families on universal credit and lift 100,000 children out of poverty. That is a down payment on our child poverty strategy this autumn.

I call the Chair of the Women and Equalities Committee.

We all agree that the welfare system needs reform but many of us in this place believe that changes to disability support should not take place without listening to disabled people’s voices and experiences. Over the last few days, I have been hopeful that the Government have shown strength in listening and moving on what they have heard. However, I have a question on sequencing. What is the logic of making changes for future claimants before finishing the Timms review, which is now to be co-produced with disabled people? Could this lead to not just two tiers but three: existing claimants; new claimants, who will lose out; and post Timms review claimants?

No, that is not correct. As I set out in my statement, existing claimants on PIP will be protected. The reason we are making the changes for future claimants is that we want to start to focus that, for future claimants, on those with higher needs. For current claimants of both PIP and the universal credit health top-up, no one will be pushed into poverty as a result of the changes in the Bill.

Health and sickness benefit spending is set to hit £100 billion by the end of the Parliament, so why is the Secretary of State not bringing forward proper reforms rather than these rushed cuts imposed by the Chancellor that save only £2 billion, and that duck the difficult decisions to deal with the scale of the challenge that we face?

Perhaps the hon. Member should make that point to those on his Front Bench, who had 14 years.

I welcome the clarity that my right hon. Friend has set out, particularly for existing PIP claimants and those with severe conditions, but my constituents who I met this weekend want to have an active part in designing the changes that affect them. Can she confirm that my constituents will be able to feed their direct lived experience into the PIP review?

Yes; as I set out my statement, we intend to co-produce the Timms review with disabled people, the organisations that represent them, other experts and MPs, so my hon. Friend’s constituents will absolutely be able to feed their views into the review. We want to strike the right balance here, because co-production takes time. We want to do it as quickly as possible, but it has to be done as effectively as possible. I look forward to working with my hon. Friend and involving her constituents’ views.

I spoke to a resident—a friend—in my constituency over the weekend. She is a wheelchair user since a failed back operation some years ago. She currently gets PIP. She gets three points for dressing and undressing and two points for washing and bathing. She needs help with both, yet she fears, as do I, that anybody with her exact needs applying after next November will be left without help. We are right, are we not, to be concerned and to fear that? That is unjust and uncaring, isn’t it?

I repeat to the hon. Gentleman that it is common through the benefit system to protect existing claimants from new rules and rates. I also say to him that we are putting billions of pounds extra into the NHS so people can get the health and social care support they need. We are putting in place the biggest-ever employment support investment for sick and disabled people because we know disabled people who are out of work are twice as likely to be in poverty. That is the investment we are making. His constituents will be protected and will not be put into poverty as a result of the changes in this Bill.

I thank the Secretary of State for her commitment to bring forward a stronger Bill, working with colleagues across the House. The reality is that any one of us in this House could become disabled—disability does not discriminate. It is important for us to recognise the network of informal care that keeps our social care system going. The reality is that a number of carers would not be eligible for carer’s allowance without the PIP eligibility, and so many carers who receive carer’s allowance are in poverty. Those people do not do it for the money; they do it because they want to help a loved one or family friend. I know from personal experience, being a carer for my mum, the toll it takes when you help someone to bathe, to get out of bed, or to cook and clean. These people do not do it for the money, but they are scared. Can the Secretary of State confirm that we will protect those carers in any future PIP changes because it is right that those carers should not be pushed further into poverty?

My hon. Friend is a huge champion of these issues, and I have long championed what unpaid family carers do. As she says, many do not even think they are a carer; they are just a husband, wife, son, daughter, mum or dad looking after the person they love. I want to reassure her, as I said in my statement, that existing PIP claimants and all those who get passported benefits, like carers, will be protected as a result of the changes we have made. Indeed, I know my right hon. Friend the Health Secretary wants to do far more to support family carers in future because without them, our NHS would collapse.

Does the Secretary of State agree that, while necessary at the time of covid, the removal of the requirement for face-to-face assessments was an opening of the door to potential abuse? If so, will she commit in principle to the reinstatement of face-to-face assessments?

That is exactly what we committed to in our Green Paper.

Presumably, the outcome of the Timms review will require some form of primary legislation to enact the changes to the system that will come from the Department for Work and Pensions. In which case, I suggest to the Minister that removing clause 5 from the Bill tomorrow and putting it into any future legislation means the Department can still have its thresholds in the future if it wants to, but only once everybody knows against what criteria those judgments will be made.

We are co-producing this review, and it may result in changes that require primary or secondary legislation or other action, and I do not want to pre-empt that. Let me just bring my hon. Friend and the House back to the purpose of these changes: to ensure that we have a system that is fair for those who need support and fair for taxpayers, and to try to put the welfare state on a more sustainable footing for the future. If we do not do so, my real fear is that it will not be there for the very people who really, really need support going forward.

Today’s statement feels like a panicked political fix to an indefensible attempt to cut benefits from the most sick and from disabled people, but it lacks competence and compassion. Given that the Secretary of State talks about social justice, how can she justify people who might need that support in the future not receiving the support that disabled and sick people rightly receive today? Would the right thing to do not be to shelve these proposals so she can allow time to do what she has promised to do and to genuinely co-produce and consult with disabled people on the right way forward?

I fundamentally disagree with the hon. Gentleman’s proposition. Our changes are rooted in the clear principles that those who can work should work and need the support to do so, and those who cannot work should be protected, but that we need a system that is fair and sustainable. I do not believe that we can wait while disabled people in this country who want to work are denied the opportunities to do so. We cannot have a system where one in eight young people is not in education, employment or training, with all the terrible long-term consequences that brings. We cannot see one in 10 of our fellow citizens trapped out of work and economically inactive, because that is not a good future for them or for our country.

We already know that the Bill as published was flawed, because of the changes that have been made in the past few days and announced today. I welcome the wider review of PIP and the consultation with disabled people, their organisations and clinicians, but given the wider review and that the Timms review is yet to report, why are we pushing ahead at this stage?

Because we have to begin to reform the welfare state, to help those who can work to do so, to protect those who cannot and to begin to put our welfare state on a more sustainable footing. The Bill protects existing claimants—they will not be affected by the changes. It ensures that people have a right to try, and that those with severe, lifelong conditions never face reassessment. It comes alongside the biggest-ever employment support for sick and disabled people. Together, this is a fair and balanced package that meets the needs of existing claimants and reforms the welfare state for the future.

There were almost a million fewer workless households in 2024 than in 2010. One factor behind that was universal credit and reducing the barriers and perceived risks of going back into work if people were not sure how it would work out. Notwithstanding the right to try, if there are to be two different levels of health component outside the severe conditions criteria, will that not raise those barriers back up and do the exact opposite of the right hon. Lady’s stated intent?

I fundamentally disagree with the right hon. Gentleman, for whom I have great respect. I actually think that universal credit sometimes locked people out of work, because they had to define themselves as incapable of working in order to afford to live. Less than 1% of people on UC move into work each month. That is not good enough for them, their incomes and their life chances, and it is not good enough for the taxpayer, either.

I thank the Secretary of State and her colleagues in the Department for their tireless work over the past week, and I very much welcome her commitment to co-production with disabled people in the Timms review. The atrocious handling of the pandemic by the previous Conservative Government has left the economy and disabled people paying the cost. Will the Secretary of State confirm whether the Timms review funding model will have the fiscal baseline of the inherited four-point system? If that is the case, how can that mean meaningful co-production with disabled people?

I agree with my hon. Friend’s comments about the state of the economy. As I said in my statement, the four-point minimum will now not relate to existing claimants. It will come in for new claims in November 2026, but the Timms review and the co-production will look not only at the activities and the descriptors, but the points given to them. It is important that we do not set up a process of co-production and then overrule that. We want a benefits system that enables disabled people to have dignity and independence, and the same choices and chances to live the life that they want as anybody else has. It is a really important process, and I hope that she and many other hon. Members in the House will work with us to get this right.

I recently met a support group in my constituency of those who suffer from ME, chronic fatigue syndrome or long covid. Their description of the devastating impact of those variable conditions was very affecting. If one of those people were to have an improvement in their condition, meaning that they were no longer eligible for PIP, and then to re-present for assessment, would they be entitled to return to the PIP level they were on previously, or would they be treated as new applicants under the terms the Secretary of State has described today?

The hon. Gentleman raises an important point, which is precisely what we want to look at in the PIP review, because it does not take into account fluctuating conditions. That is an important issue moving forward, and we will be absolutely determined to involve him, his constituents, and organisations that represent those with fluctuating conditions in the process of the review.[Official Report, 16 July 2025; Vol. 771, c. 4WC.] (Correction)

I am grateful to my colleagues on the Front Bench for listening to what Back Benchers have been saying for months, and for making so many changes. However, I did not see any changes that affect young people, particularly care-experienced young people. Will the Secretary of State cast some light on what discussions are ongoing with young people about the processes involving them?

I thank my hon. Friend for her question. As part of the process of the Green Paper we are establishing a youth panel to ensure that young people’s voices are heard in our future reforms. Many of the youth guarantee trailblazers that we are putting in place as part of our £240 million Get Britain Working plan are looking to provide extra support for young care leavers, because they are in different circumstances and need extra help. I am sure there is far more that we could be doing in future, and I urge her to work with us to ensure that their views are at the heart of our plans.

Many on the DUP Benches want to support the Government in achieving the objective of getting people back to work, and being fair to those who cannot work, but does the Secretary of State realise how difficult her actions make it for us to give support? Last week the Deputy Prime Minister stood at the Dispatch Box and said, “These proposals will go before Parliament this week. They’re fair, and if they don’t go, there is a black hole in the economy that we cannot fill.” This week we are now told, “Actually, lots of people were vulnerable, and it’s not fair, and they rely on the income, and we will find the money.” The only thing that has changed in the week is that 120 Back Benchers signed letters that would not support the proposals. Does the Secretary of State realise how cynical that appears? This is not about well-thought-out proposals, but simply a way of buying back the Back Benchers who were rebelling.

It might astonish the House that I think leadership is about sticking to our principles and values, and listening to ensure that we get things right. I believe that listening is a strength not a weakness, and I believe that in politics as well as in life.

Does the Secretary of State agree that our welfare system must do much more to support and reward work, and also support people who are looking to re-enter or enter work? What difference does she believe that the right to try guarantee will make in achieving that?

Labour’s historic mission is to help more people who can work into good jobs in every part of the land. That is not only because we believe that is key to improving living standards, but because of the self-respect, dignity and purpose that good work brings. The right to try is an important step—we know that around 50% of sick and disabled people say that the reason they are not trying work is because they fear they will be reassessed for their benefits. We have got to put that right. We have also got to put in place the employment support. We have to create good jobs in every part of the country, and get those waiting lists down so that people can get back to health and back to work. We are taking action on all those fronts, and I look forward to working with my hon. Friend in his constituency so that more of his constituents can benefit.

It seems entirely reasonable that a Government should want to control the amount that they spend on welfare, and entirely reasonable to want to focus that on the most in need. However, I do not understand why they brought out such rushed changes, which have done nothing but cause anxiety and distress, and left them in a worst position in which they have now U-turned and are neither making savings nor reforming welfare. Will the Secretary of State please explain the rationale for the four-point limit that she brought in?

For new claimants, it is because we believe that we need to begin to focus this vital disability benefit on those with higher needs. I am deeply concerned that a doubling in the number of people on PIP over this decade, from 2 million to 4.3 million, with claims and awards rising at twice the rate of the increase in the number of disabled people in society, risks the sustainability of the system in future. We have to ensure that it is there for those who really need it, providing that vital safety net going forward. The hon. Lady talks about having a reasonable approach, and I really do believe that this is reasonable. I believe that protecting existing claimants and beginning to make changes for future claimants, backed by the changes to the right to try, stopping reassessments and investing in real employment support, is the fair and right balance for the people who need support and for taxpayers.

I thank the Minister for her statement and for her engagement. My question is about the co-production proposal. By what mechanism will that be given effect, and how is co-production different from consultation? Will disability groups have any entitlements or powers beyond simply giving their views?

We are not setting out the precise detail of how co-production works; I think that would go against the very essence of it. We are already in discussion with disabled people and their organisations. On our Green Paper, we have already set out what we call collaboration committees, reforms to access to work, our pathways to work and investment in employment support, because we want to get this right. We look forward to those discussions to ensure that people have a proper say and are fully engaged and involved, because we want to make sure that we get this right.

In her statement, the Secretary of State recognised that existing claimants “rely on the income from PIP for so many different aspects of their lives.” One aspect, for many, is work. Why does she think that new claimants will not have the same need and what “aspects of their lives” does she think they should curtail?

The hon. Lady raises a really important point. Access to work is there precisely to support people who have needs over and above the legal requirement on employers to make reasonable adjustments. We need to fix that system because the backlogs are too long and not enough people are getting that support. That is precisely why we are consulting on the future of access to work. We will make the changes that people need, so that they can get the help they need to get good meaningful work and to stay in work, and we will deliver that as soon as possible.

Despite the changes, is it not the case that over 400,000 disabled people—our constituents—who need assistance to cut up their food, wash themselves, go to the toilet and dress themselves, will be denied PIP from next year, when they currently would have got it? Is not the reality that Labour MPs will have to deal with that, week after week, in their constituency surgeries? Would it not be better if, rather than trying to save political face, the Government pulled this artificial, politically imposed deadline of tomorrow? It is important not that we save face, but that we get it right.

Many hon. Members have understandably raised concerns because their constituents who are on PIP, right here and now, are extremely anxious, even though if they are still on PIP at the time when the changes come in, nine out of 10 of them will not be affected—they will be protected in future. The Timms review will look at this vital benefit going forward—the activities, the descriptors and the points they get—and I really hope that my hon. Friend will engage with us throughout the process to ensure that we get it right.

The UK Government’s amendments to the Universal Credit and Personal Independence Payment Bill were not included in the initial statement on the Bill’s compatibility with the European convention on human rights. Discrimination is a real concern, given that two people with the same condition could receive different support, based on when they become sick or turn 18. Will the Secretary of State make an updated statement on compatibility and confirm that her Department has complied with the public sector equality duty under the Equality Act 2010?

I can indeed confirm that we have complied with all our legal requirements.

I do not doubt the Secretary of State’s commitment to getting this right. She will be very aware that, as it stands, the legal advice we have had is that these proposals will breach our obligations under the UN convention on the rights of persons with disabilities. The previous Government did that, and we rightly challenged them on it. So that we do not make the same mistake, will she give a commitment to write into a Bill that these proposals will be compliant with that commitment to ensure that persons with disabilities have social protection and the enjoyment of that right without discrimination on the basis of their disability?

I simply say to my hon. Friend, who knows that I have deep respect for her, that I would not be making any changes that I believed were incompatible with the law.

I am sure that the Chancellor will be delighted that the flip-flopping of the Prime Minister means she has to find another £2.5 billion in taxation on people in this country. Does the Secretary of State think that it is fair that a two-tier system has been created? Why would anybody on the old rate seek work when they know that if they go into work, it does not work out and they claim again, they will get a reduced rate under her Government?

Because PIP is not an in-work benefit.[Official Report, 16 July 2025; Vol. 771, c. 4WC.] (Correction)

The north-east has the highest rate of disability in the country—31%—and more than a quarter of those of working age live in poverty, so the Secretary of State is absolutely right to say that welfare reform is hard, essential and must reflect Labour values and disabled voices. Will she set out how the co-production of the new system with disability groups will ensure that it is a fairer system? How will disability groups in the north-east be able to be involved?

We will absolutely ensure that the views and voices of disabled people right across the country, including in the north-east, are fully involved in our process of co-production. My hon. Friend is a powerful champion of that, and I hope that she, too, will get involved with our plans. The Minister for Social Security and Disability, my right hon. Friend the Member for East Ham (Sir Stephen Timms), will develop the process of co-production in close conduct with disabled people and their organisations, and I am sure that he will update the House shortly as those plans progress.

On page 3 of her statement, the Secretary of State asked herself a rhetorical question about a two-tier system. Somebody who is now eligible for personal independence payment gets it, but can she simply confirm that somebody who suffers the same kind of condition whenever this Bill becomes law will not be eligible for the personal independence payment? Their support will be from friends or family, or they will have no support at all. Is she really happy that we are deliberately creating a two-tier system for people with profound needs and disabilities who quite rightly expect the community as a whole to recognise and support them?

I simply say to the right hon. Gentleman that there are many differences in the benefits system already—people are on different rates and have different rules depending on the time they came into the system. That has always been a part of the social security system, including under previous Labour Governments. The Timms review will look at the different descriptors and the points that are delivered to them, alongside much wider changes. PIP came in more than 10 years ago, and there have been huge changes in the nature of disability, the world of work and society. We have to ensure that this vital benefit stays in future, and that is what the Timms review seeks to achieve.

I think it would be helpful to let Members know that I plan to allow this statement to continue until 5.15 pm. It would therefore be helpful if questions were short.

Over recent months, I have consulted with constituents who have lived experience of disability and the welfare system and their representatives. I know that they will welcome the Secretary of State’s statement that protections for existing claimants will be protected, but one of the most heartbreaking stories I heard in those consultations was about a young constituent who applied for hundreds of jobs and attended dozens of interviews and simply could not find a job. Will the Secretary of State meet me to discuss what more we can do not just to support disabled people in my constituency, but to encourage employers to take on some of the talented, brilliant people living with disabilities in my constituency?

My hon. Friend raises a really important issue, which is the world of work and the need to ensure that employers recruit and retain more people with long-term sickness or a disability. That is precisely why, in addition to the huge advances in our Employment Rights Bill, we have asked Sir Charlie Mayfield, the former boss of John Lewis, to look at what more we can do to support employers to recruit and retain disabled people. We are also overhauling our jobcentres so that they provide more personalised, tailored support. Indeed, we have set our jobcentres a new goal of reducing the disability employment gap, which I believe will also make a huge difference.

I call Cameron Thomas.

Welcome back, Madam Deputy Speaker. The Government’s recent compromise with their own MPs secures PIP for existing claimants, but not for those who come hereafter—a distinction born not of compassion, nor apparently of economics, but to secure the Government’s own political footing. If I am wrong, will the Secretary of State describe the moral foundation for this distinction between those who suffer today and those who will suffer in the future?

I am not going to take any lectures on compassion. I have fought my whole life to tackle poverty and drive up opportunity for people, no matter where they are born, what their parents did, their gender, their sexuality or the colour of their skin. The social security system has many different rules for new and previous claimants. I do not believe that is an unfair system; I believe it is the way in which we protect people who have come to rely on a benefit. I am proud of the changes we have announced today—I think they are positive and get us to a good place. Listening is a sign of strength, and I am absolutely determined to continue to listen.

I thank my right hon. Friend for her statement, and for the steps she has taken to improve the Bill. In launching the Timms review, she has accepted that the current PIP assessment criteria and descriptors are not fit for purpose. Can she confirm that the difference between the timetable for implementing the change that will require applicants to achieve four points in a single category and the timetable for completing and implementing the Timms review will result in some people falling between the old system and the new one? They will be required to achieve four points on criteria that are not fit for purpose. For how long will that happen, who will be affected, and what will happen to those people in future?

I know that my hon. Friend has worked extremely hard on all of those issues. That question was raised previously by another colleague, and the answer is that there will be two sets: the people who are on the existing system, who will be protected; and those who will be on the four points as we go forward. However, the Timms review will indeed look at the descriptors and the different points that they get. Those changes will come in as soon as possible—the review will report by autumn 2026 and we will try to put the changes in place as quickly as possible. We do not yet know what the review will say or how those changes will be enacted, but we are determined to ensure that they are put in place as soon as possible.

Is the problem for the Government not the failure of the Prime Minister to even seek a mandate for what he is trying to do? He said that he would limit spending increases to £9.5 billion a year, but he has increased spending by eight times as much, and the effect on the fiscal rules is the root cause of this problem. He also won the Labour leadership by promising to “abolish Universal Credit and end the Tories’ cruel sanctions regime”, but then he masqueraded as a welfare reformer. Does the Secretary of State now realise that to win a mandate, one needs to be straight with people, including one’s own MPs?

I am very proud of our Prime Minister, who changed our party so that we can change our country, and the mandate can be seen by the number of MPs on the Benches behind me.

Increasing access to employment opportunities for disabled people and improving the retention of disabled workers were urgent before, and they are even more urgent now. My right hon. Friend did not mention the Mayfield review, although she has just mentioned it in response to a question. Can I please push her on that review? First, can she expedite it; secondly, can it include disabled people more meaningfully than it has until now; and thirdly, will it indicate how the Government will implement our manifesto commitment to increase access to reasonable adjustments?

The Mayfield review will be reporting before the Budget. Sir Charlie Mayfield wants to work closely with disabled people and the organisations that represent them. He has seen inspiring examples of what good employers are doing and good things that other countries are doing, and that will provide some insightful lessons. The Minister for Social Security and Disability has already said that we are looking at whether we should put in place a timeframe within which employers need to respond to requests for reasonable adjustments. We want to make sure that those adjustments are made as quickly as possible, so that more disabled people can get work and stay in work.

Why are the proposed PIP cuts still being applied to new claimants, many of whose needs are as urgent and severe as those of existing claimants?

The reason we are protecting existing claimants and beginning to focus PIP on those with higher needs in future is because we want a system that is sustainable and lasts. I do not believe it is sustainable to have a doubling of the number of PIP claims every decade, adding 1,000 people a day. The rate is rising faster than the increase in prevalence of disabled people in this country. The truth is that the parts of the country that have the highest disability benefit claims and incapacity benefit claims are the places that were decimated by the Tories in the ’80s and ’90s, when whole industries closed. Those places are yet to have the investment they need to create jobs and have not had the investment in the NHS. I have always believed in the social model of disability. We have to put these things right urgently, because disabled people deserve a better life than they had under the Conservatives.

I thank my right hon. Friend for her work on this issue and for making the statement today, although I share hon. Members’ concerns that making changes before a review is putting the cart before the horse. I must just press her on this. While I welcome the changes that bring immediate security and protection for existing claimants, can she please confirm whether, if an existing claimant or someone on a legacy benefit is reassessed, the new measures or the existing ones will apply? On carers, future applicants will face increased eligibility criteria. Will carers be included in the co-production review carried out by the Minister for Social Security and Disability?

Absolutely. My right hon. Friend the Minister for Social Security and Disability and I met carers’ organisations and many other disability organisations the day after we published the Green Paper. I want to be crystal clear: people who are currently on PIP and are on PIP by the time these changes come in—November 2026 —will remain on that benefit under those old rules.

In the first lines of her statement, the Secretary of State affirmed that this Government believe in equality. Where is the equality in evaluating one person’s eligibility for the daily living component of PIP on the practical consequences of their disability, and evaluating another on the date of their application?

This is a really common issue in the benefit system. If we could never change it, we could not undertake reforms to make it sustainable for the future. Existing claimants will remain on the current rules, even if and when they are reassessed. Changes will come in for new claimants from November 2026, but our review will look, as I have said many times, at the different activities and descriptors, and the points that they will get, because we need to make sure that this vital benefit is sustainable for the future.

I thank the Secretary of State for coming this afternoon. I welcome her announcement that the Timms review of the PIP process will be undertaken in partnership with people with disabilities; that is critical, because in more than 70% of appeals, PIP outcomes are overturned in favour of the claimant. We need to get the assessment right first time and every time for all applicants. Does she agree?

Yes.

I decided to go into politics because I believed that luck played too great a role in shaping people’s course and their quality of life, but unfortunately the system that has been announced today leaves the fate of many disabled people down to luck—to whether they applied before November 2026, or after. I hope that the Secretary of State will reverse her decision and drop the Bill tomorrow, but in case she will not, may I ask her to commit to engaging with Kathy, a disabled person in my constituency who runs a Facebook group of 44,000 people advising on PIP and disability-related matters, to ensure that their voices are at the centre of the plans?

I will absolutely commit to ensuring that those views and voices are heard, and I am sure that, as a strong champion for his constituency, the hon. Gentleman will do so as well. However, I do not believe that this is about luck; I believe that certain parts of the country, and different types of people, have been repeatedly neglected and denied opportunities and support. There is nothing about luck here. This is about people and places that have been written off and denied opportunities for too long. Governments, if they are determined, can make a difference, and that is what we intend to do.

I have conducted a survey of my constituents on the subject of welfare reform, and I submitted the findings to the consultation. I have also met disability groups across Swansea and disabled constituents to hear their concerns. The problems that I have found to be the most prevalent in Gower are the incompetence of Capita and the inconsistencies of Department for Work and Pensions decision makers. That is why I genuinely welcome the announcement of the Timms review, but what reassurances can the Secretary of State give that the review will address this matter and give people confidence in the decision-making process?

My hon. Friend should, 100%, send me the details of those findings and concerns. One of the reasons we are not only bringing back face-to-face assessments but recording them as standard is our wish to get to the bottom of this and make sure that we put it right.

Over the weekend, I had the privilege of engaging in a number of in-depth conversations with people and families living with disabilities, and I thank Dartford’s Kindness Community for arranging that event. One comment that I heard again and again from the people I talked to was about how poor the health service had been at helping disabled people to manage their conditions over many years. How can the DWP and the Department of Health and Social Care work together to ensure that disabled people are properly supported and helped into work?

My hon. Friend has made an important point. There is far more that the health service can do to help people with long-term sickness and disability to manage their conditions better, because they cannot do it on their own; they need the right help and support. Our joint work and health unit is working on precisely those issues, and I am indeed working closely with my right hon. Friend the Health Secretary, because getting people back to health and back to work is so important. We know that good work is critical to good health, and good health is critical to people getting into work. Those are two sides of the same coin. We must end these false divides and get this sorted out, so that we can help people to fulfil their ambitions and work.

I thank the Secretary of State for her statement. It is vital for us to have a social security system that protects the most vulnerable, the ill and the disabled, so will she clarify one provision in the Bill? Will both the standard element and the health element of universal credit rise in line with inflation? If that does not happen, disabled people will be pushed further into poverty and hardship.

I want to make it very clear that the combined rate of the standard allowance and the health top-up will indeed rise in line with inflation, so that existing claimants are protected in real terms, and the incomes of those with severe lifelong conditions and those at the end of their life are also protected in real terms through the combined universal credit standard allowance top-up.

The Bill still leaves over £3.5 billion of cuts falling on disabled people and unpaid carers, with hundreds of thousands of new claimants set to lose thousands of pounds each year. Protections for existing claimants are welcome, but a two-tier system will generate hardship for many and create societal divisions. We are being asked to vote without vital evidence—without the Office for Budget Responsibility impact assessment, or the Timms and Mayfield reviews. Serious questions remain unanswered, and we are without clarity on outcomes and implementation. Will the Secretary of State continue to listen, withdraw this Bill, and co-design welfare reform with disabled people’s groups?

I say to my hon. Friend, for whom I have great respect, that none of this takes into account the biggest ever investment in employment support for sick and disabled people. People have often said, “Wait for the OBR’s assessment,” but we have published very clear evidence that good employment programmes can help disabled people into work—programmes such as Work Choice, a Labour programme ended by the Tories, which saw 40% more disabled people in work for eight years. That is based not just on economic theory, but on practical reality. That is the difference that this Labour Government want to make.

Disabled people’s organisations have been clear that even with these concessions, they oppose this Bill. The Government talk of co-production of the PIP review, but it is not co-production if the starting point is delivering cuts, and if the Government are asking disabled people where they would prefer those cuts to be, rather than how we can create a system that truly supports disabled people. Does the Secretary of State not accept that, after months of the Government ignoring disabled people, the only way that meaningful co-production can take place is if the Bill is pulled and they go back to the drawing board?

I gently say to my hon. Friend that we will protect existing claimants. That is the very purpose of the announcements we have made today. No existing PIP claimants, or people receiving universal credit and the health top-up, will be put into poverty as a result of this Bill—far from it. We are changing the system so that many more sick and disabled people who want to work can actually get work. That is about building a better life in future. This Labour Government believe that if someone can work and wants to work, they should have the chance and choice to do so. Some 200,000 sick and disabled people say that they would work right now with the right help and support. We are not cutting the support for that; we are actually increasing it, because we believe that work is the key to a better life.

I thank the Secretary of State for her statement, and for the recent move to protect existing claimants. I appreciate that the adult disability payment is devolved to the Scottish Government. However, my constituents are really concerned about the potential for different qualifying criteria across the nations, which may result in limited access to passported benefits from November 2026. What assurances can the Secretary of State give my constituents that they will not lose the benefits to which they currently have access, and the vital support on which their households rely? Following the Secretary of State’s response to my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), it is really unclear whether the House is being asked to agree to a four-point assessment without knowing the outcome of the Timms review with regard to descriptors—or could that review result in more fundamental reforms that would rip up the current PIP system?

On my hon. Friend’s first point, she will know that PIP is devolved to Scotland. I believe that the Scottish Government are reviewing the ADP at the minute, including the eligibility criteria. That will be a matter for them, but I want to be clear to the House that the new four-point minimum requirement will come into force in November 2026 for new claims, and existing claimants will be protected. Of course, the Timms review will look at the different descriptors and the points for them in future, but the four-point minimum and the daily living component for new claimants will remain.

The Conservative party presided over multiple reforms of welfare, and the results were a disaster. Perhaps cruellest of all was the fact that adults who had an irreversible health condition, and who could never work, were forced to go through reassessment after reassessment, and to jump through hoops. Can my right hon. Friend please confirm that, with these Labour reforms, that cruel legacy will be ended once and for all?

Yes, I can. I believe that the unnecessary and unacceptable stress that that created was not right, and we will fix that with the reforms in the Bill, because people need to live in dignity and security.

The Labour party is defined by work and by the dignity of work, and so is my community in Gateshead and Whickham. People have the belief that they should be able to work to provide for themselves, their family and their community, but too many in my community have been let down by successive Governments of all parties who have not created the jobs we need and by a failed system. Not one person who has spoken today—not one—has defended the existing indefensible system. What will the Secretary of State do to ensure that communities like mine, where work or a lack of work is the problem, receive the support we need?

My hon. Friend speaks powerfully about Labour’s historic mission to help people who can work to do so, and about the fact that his constituents have been denied that support for so long. We want to transform that. With an ageing society in which more of us will be living with a disability or with one, two or more long-term chronic conditions and in which we will be caring for people, we believe that we have to change the welfare state. We have to provide more support to help people work, and the world of work needs to change. That is why not only have we commissioned the Mayfield review, but we are putting in the biggest ever employment support for sick and disabled people, with the additional £300 million of support I have announced today.

Order. I encourage Members to keep their questions short, or they will not all get in.

Having met disabled constituents over the last few months, I have no doubt that the initial proposals caused anxiety, so I do welcome the changes for existing claimants and the Timms review. However, can I urge the Secretary of State to look at the sequencing to make sure that the review happens before we assess new claimants? I have one final point about the assessors themselves. There is no doubt but that the involvement of private companies such as Capita and Maximus has caused problems, as has having assessors who do not understand health conditions. Can we make sure that we look at that properly?

Yes, we are absolutely committed to looking at that. In fact, we announced in the Green Paper that we are overhauling our entire safeguarding process, including the training of assessors, because we want to get this right. We will not only bring back face-to-face assessments, but record them as standard, which I believe together will make a real difference to the process and ensure we get the decisions right first time.

These so-called concessions go nowhere near far enough, and tomorrow I will be voting against these cruel cuts, but I want to ask this. Can the Secretary of State name a single disabled person-led organisation that supports this legislation?

I understand why disability organisations are making the points they are. That is their job; our job is different. Our job is to take the right decisions—ones that we believe are fair—to make sure we have a system that works for the people who need support, but that is also sustainable for the future. That is not easy—that is a statement of the obvious—but I believe we have a fair package. It is a package that protects existing claimants because they have come to rely on that support, as is often the case in the social security system. It begins to tackle the perverse incentive that encourages people to define themselves as incapable of work just to be able to afford to live, and it puts in place employment support to help the hundreds of thousands of disabled people and people with long-term conditions who want to work. That is the right way forward, and I hope that my hon. Friend and his constituents will get involved in the Timms review to ensure future changes make this vital benefit fit for the future.

Last week, I spoke to one of my constituents, Mike, a disabled person who speaks on behalf of many disabled constituents across Warwickshire. He is really pleased that he will have the right to try work, and he is also really pleased that disabled people will be treated with dignity and will be part of the co-production of the new proposals. However, he is still fearful that these changes may mean losses and difficult situations for disabled people like him. Can the Secretary of State reassure Mike that one of her Ministers will meet him to discuss these changes? In particular, how will we look at fluctuating conditions such as ME and MS, which my partner suffers from, so that such people do not lose out and so that we make the changes positive for every disabled person up and down the country?

We want to work with MPs, disabled people, their organisations and other experts, as part of co-producing the Timms review. The point about fluctuating health conditions is really important and something we have to crack for the future, because so many people have those conditions. They may be able to work one day and not another, or to work three days at home but not five days. We must make it fit for the future, because the reality is that we are living longer, more of us have disabilities and more of us have two, three or more long-term conditions. The welfare state in its broadest sense—the NHS, as well as the benefits system—and the world of work have to wake up to that. As we live longer, we will have to work for longer, but we have to make that practical and decent.

This is a relatively small Bill, but one core part of it has now been delegated to the PIP review and that will not report until November 2026. Can my right hon. Friend say just how many disabled groups have indicated they want to participate in the PIP review? She has set out a number of red lines today that I doubt they would agree with. If they were to propose that we do not have a two-tier system, what would be the Government’s response?

The Minister for Social Security and Disability and I have met many disabled organisations. In fact, he has spoken to many already about the review. We will continue to discuss with them precisely how the system of co-production will work, but I want to assure my hon. Friend that it is serious. We want to make sure people’s views and voices are heard, and I encourage him, as a Member of Parliament, to get involved in the process too.

As a signatory to the reasoned amendment, I welcome the listening that has gone on, because a lot of people with disabilities will sleep more soundly in their beds knowing that their benefits are protected. However, on a specific point, if someone currently receives PIP but their condition is getting worse and they ask for a reassessment of the level of their PIP, will they be assessed under the current system or under the new one?

They are an existing claimant and they will be assessed—let me be really clear about this—under the existing rules.

I thank the Secretary of State for her statement. PIP is, of course, a passport to freedom for many other things such as the carer’s allowance, and many local authorities use PIP for blue badges and bus passes. Does the Secretary of State have a plan to mitigate the impact of the potential changes to PIP eligibility on access to blue badges and bus passes for disabled people?

As I said in my statement, existing PIP claimants will continue to have that benefit. It will not be affected even if they have a reassessment, and neither will all the passported benefits. Carer’s allowance is the best known, but all passported benefits will be included in that protection.

This morning I met Parkinson’s UK, which is very concerned about the changes to both PIP and universal credit, and in particular that they will not take account of those with variable conditions. Will the Secretary of State make a commitment that Parkinson’s UK will be involved in the co-design of the changes to PIP, universal credit and other welfare benefits, and that any welfare change will fully consider those with Parkinson’s and other variable conditions?

I am absolutely sure that Parkinson’s UK will be involved closely in the PIP review.

Two weeks ago, I held an in-person consultation on the welfare reforms. Many of my constituents were deeply concerned about the proposals, so I welcome the changes the Secretary of State has announced for existing claimants. I want to ask about employment support. I welcome the additional support being brought forward. When will we get more detail on how that will be allocated to schemes across the country, and will the people who need it most be involved in the co-production of those schemes, so that they work effectively?

Yes, we already have what we are calling a collaboration committee on the pathways-to-work funding to ensure that it really meets the needs of sick and disabled people. As I have said in the House before, it really is about a pathway to work—for some people, just getting out of the house, or getting out of bed, is a huge achievement; for others, it might be about going along to a group, beginning to speak to other people and getting their confidence back. It really is a pathway to success. We will be setting out precise allocations of the pathways-to-work funding in due course, but I want to reassure Members that it will be available in every single part of the country.

I grew up caring for two disabled parents. As a kid, I saw at first hand the harms that happen when the British state routinely lets down disabled people. It is why disabled civil rights activists have a phrase, “Nothing about us without us,” and it is why I am looking for genuine and meaningful co-production. On Friday, I brought together seven Bournemouth support organisations and people with lived experience, and they wanted me to raise two issues. The first is continuing concern about the eligibility criteria. The second is whether the mental health support that the Government are rolling out will be in place in sufficient quantity to support potential new claimants by November 2026.

My hon. Friend raises an important point about mental health support. This Government are determined to ensure that there is parity of esteem between physical and mental health. We have already recruited 6,700 of the 8,500 additional mental health workers we promised in our manifesto, and we are putting in place new emergency mental health services and bringing in new Young Futures hubs, which will include mental health support. I know that my right hon. Friend the Health Secretary is determined to ensure that that support is available in every part of the country. I am sure we will hear more in the coming weeks and months.

I thank the Secretary of State for acknowledging at the Dispatch Box the anxiety of disabled people. I am also grateful for the time of the Disability Minister in listening to my concerns about the PIP assessment process—concerns that I now see reflected in the Timms review. I am sure the Secretary of State will be disappointed to hear that at a recent consultation event in the north-east, some of my constituents found that the venue was not fully disability compliant. Will she assure me that the Government will ensure full accessibility for participation in the Timms review?

That is unacceptable, and I will sort it.

I thank the Secretary of State for her statement. I wonder if she will reflect on whether the Bill before us tomorrow is the best way of making welfare policy. Would it not be better to withdraw the Bill and wait for the Timms review to complete its important work?

Welfare touches on the lives of millions of people in this country every single day. Making changes to it is never easy—perhaps particularly for a Labour Government, because tackling poverty and inequality is in our DNA. However, I believe that we must begin to make these changes to ensure that those who can work get the support they need, to protect those who cannot and to begin to slow the rate of increase in the number of extra people going on to sickness and disability benefits. I believe that the route to equality and social justice can never come from extra benefit spending alone; it has to come from putting in place good jobs, a decent health service, skills and transport infrastructure—the good world of work that we know is key to bringing about a better life.

It is clear that the central issues for many on the Government Benches remain. Rushing through legislation without full and meaningful consultation with disability groups is the wrong way round—we do not build policy first and ask questions later. The Government’s arbitrary deadline is not a necessity, but a political choice. They are forcing through decisions that risk pushing hundreds of thousands more disabled people into poverty. I therefore say to the Secretary of State with absolute sincerity on behalf of many Members: do the fair thing—and, more importantly, the right thing—and withdraw this Bill and listen to disabled people.

I believe that we are doing the fair thing and the right thing. We are beginning to make reforms to put our welfare bill on a sustainable footing for generations to come. We are beginning to put in place the employment support that sick and disabled people have been denied for too long. We are making sure that those with severe and lifelong conditions are never again reassessed, and that there is a new right to try. I believe that this is a fair and balanced package. Above all, I believe that it is the right one.

I welcome my right hon. Friend’s statement and the Government’s work to ensure that help is there for those who need it now and in future. Many in this House will be worried that progress on closing the disability employment gap stalled under the Conservative party, at 28 percentage points. Will the Secretary of State confirm that that is one of the metrics that the Government are focusing on in the strategy, and that the gap must and will close under this Government?

We are absolutely determined to achieve that. I do not believe that it is acceptable that in this country the disability employment gap is 28 percentage points. That is one of the widest in all Europe: in France, Germany and Switzerland, I think it is at about 22 to 23 percentage points. We have to tackle that, because if we believe that the rights of disabled people who can work are equal to those of anybody else, we have to start making a difference. I know that this is an issue of deep concern for many Members across the House, but I believe that the package we are putting forward today is a fair one and is the right one. I will continue to listen to Members of this House, but we cannot wait to reform the welfare system. People need us to make changes, and our country demands it.

I thank the Secretary of State for listening to the concerns of Back Benchers and for making some real and meaningful improvements based on the concerns that we have been raising privately. I also thank her for confirming explicitly, a moment ago, that my constituents who are reassessed post November 2026 will be reassessed under the current system. May I gently encourage the Secretary of State to go further and to overhaul and radically rethink the role of jobcentres? Far too often, they hold people back rather than breaking down the barriers to people’s progress into work.

Our Minister for Employment is indeed overhauling our jobcentres so that they provide personalised, tailored support for people to get into work, not some sort of endless tick-box process, and so that they are much more linked to the wider system in local areas: to the local NHS, to skills providers and, above all, to employers. I do not think it acceptable that only one employer in six has ever used a jobcentre to recruit. That is why we are overhauling our strategy with single account managers for employers, to fully involve and engage them, because we need their involvement if we are to help more people to get work and get on in work.

Order. For the final question, I call Sarah Coombes.

My borough, Sandwell, has one of the highest rates in the entire country of young people not in education, employment or training. This generation of young people have been let down by years and years of system failure by the Conservative party. As we go through this necessary piece of reform, we must do it carefully. Will the Secretary of State commit to working with the Department for Education and the Department for Business and Trade? For young people to get the jobs that will transform their life chances, they will need the right qualifications as well as needing the jobs to be available.

I absolutely agree. Let us be honest: today’s economy is brutal for people without skills. We are already setting out our plans to reform the system of apprenticeships. We want to see new foundation apprenticeships. We are bringing in new six-week SWAPs—sector-based work academy programmes—that will give people guaranteed work experience and a guaranteed interview, which I think will make a real difference to young people. There is much more to do, but our commitment to a youth guarantee so that every young person is earning or learning is the key to a better future for young people and for our country as a whole.