The introduction of proposed legislation to reform the welfare system “marks the moment we take the road of compassion, opportunity and dignity”, the Work and Pensions Secretary has said. Liz Kendall’s words come amid a backlash from some Labour MPs who have criticised the “awful” cuts to welfare – which the Government hopes can save up to £5 billion a year.
The reforms – aimed at encouraging more people off sickness benefits and into work – are set to include the tightening of criteria for personal independence payment (Pip), which is the main disability benefit, as well as a cut to the sickness-related element of universal credit (UC) and delayed access to only those aged 22 and over.
Ministers are likely to face a Commons stand-off with backbench Labour MPs over their plans, with dozens of them last month saying the proposals were “impossible to support”.
In what could be seen as an attempt to head off some opposition, the legislation – known as the Universal Credit and Personal Independence Payment Bill – will give existing claimants a 13-week period of financial support.
The Department for Work and Pensions said this will apply to those affected by changes to the Pip daily living component, including those who lose their eligibility to Carers Allowance and the carer’s element of UC.
Ms Kendall said: “Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.
“This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.”
As the Bill was formally introduced to the Commons on Wednesday, and the question asked as to what the next date for debate will be, Labour backbencher and former shadow chancellor John McDonnell could be heard to say “never”. A date has not yet been confirmed.
Sir Keir Starmer said he was “determined” to ensure the reforms go through because he feels the welfare system “doesn’t work for anyone”.
“It doesn’t work for those that want to get back to work, and it certainly doesn’t work for the taxpayer,” the Prime Minister told Good Morning Britain, saying “those that need to be protected should be protected”.
“If you need help in support to get into work, the Government should be providing that support and help to get into work,” he said. “If you do have conditions, disabilities that mean it is impossible for you to work, then you need to be properly protected and supported.”
The latest data, published on Tuesday, showed that more than 3.7 million people in England and Wales are claiming Pip, with teenagers and young adults making up a growing proportion.
The figures, published by the Department for Work and Pensions, showed there were a record 3.74 million people in England and Wales claiming Pip as of April this year. The figure is up from 3.69 million in January and a jump of 200,000 from 3.54 million a year earlier.
Data for Pip claimants begins in January 2019, when the number stood at 2.05 million. Pip is a benefit aimed at helping with extra living costs if someone has a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or getting around because of their condition.
It is thought the restrictions on Pip would slash benefits for about 800,000 people. Ms Kendall previously said there are 1,000 new Pip awards every day – “the equivalent of adding a city the size of Leicester every single year”.
