Secretary of State for Work and Pensions Liz Kendall has announced the £2.5billion cost of Labour's welfare reforms as she admitted changes are "never easy".Delivering a statement to MPs in the House of Commons, Kendall said the Government believes in "equality and social justice", and is "determined to build a fairer society".FULL STORY HERE.
00:00And we are determined to build a fairer society where everyone has the chance to fulfil their potential and achieve their ambitions, no matter where they're born or what their parents do.
00:13We know, as all Labour governments know, that the only way of unlocking the potential of individuals and our country as a whole is when we collectively provide real opportunities and real support.
00:27I am proud of the steps that this Government has already taken to deliver on our promise of a better future for all.
00:37We're creating more good jobs in every part of the country, including through our modern industrial strategy and plans for clean energy.
00:46We're investing in our vital transport infrastructure, in skills, getting the NHS back on its feet.
01:07Our Landmark Employment Rights Bill will improve the quality of work and our increases in the national minimum wage are helping make work pay.
01:18But alongside these vital steps, we also need to reform the welfare state.
01:23The principles set out in our Pathways to Work Green Paper are rooted in values I know many MPs share.
01:33That those who can work must work, but often need proper support to do so.
01:39Those who can never work must be protected.
01:42And that the welfare state must be fair both for those who need support and for taxpayers, so it is sustainable for generations to come.
01:54But the system we inherited from the party opposite is failing on all these fronts.
02:00It incentivises people to define themselves as incapable of work just to be able to afford to live.
02:08It then writes them off and denies them any help or support.
02:13The result is 2.8 million of our fellow citizens now out of work due to long-term sickness.
02:22Almost a million young people not in education, employment or training.
02:26That's a staggering one in eight of all our young people.
02:30And the future sustainability of the system has also been put at risk, with a number of people on personal independence payments set to more than double this decade to over 4 million,
02:43with 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.
02:53Now, I know MPs on this side of the House have welcomed many aspects of our reforms.
03:02Our plans to bring in the first ever sustained above-inflation rise to the Universal Credit Standard Allowance.
03:10The first permanent real-terms increase in the headline rate of out-of-work benefits since the 1970s and historic change in the direction of public policy.
03:21The biggest ever investment in employment support for sick and disabled people, quadrupling what we inherited from the Tories to £1 billion a year.
03:32Our plans to ensure that people with severe, lifelong health conditions will never be reassessed, removing all the unnecessary and unacceptable anxiety this brings.
03:43And our plans to legislate for a right to try, guaranteeing that trying work in and of itself will never lead to a benefit reassessment, giving people the confidence to take the plunge and try work, something many organisations have called for for years.
04:01But, Mr Speaker, there have also been real concerns about our initial proposals.
04:07We have listened carefully and we are making positive changes as a result.
04:14First and foremost, many members of this 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.
04:36I fully understand that even though 9 out of 10 people claiming PIP when the changes come in would be unaffected by the end of this Parliament, that this has caused deep and widespread anxiety amongst existing claimants, because they rely on the income from PIP for so many different aspects of their lives.
05:01So, we will now ensure the new four-point requirement will only apply to new claims from November 2026.
05:11This means no existing claimants will lose PIP because of the changes brought forward in this Bill, and existing claimants of passported benefits like Carer's Allowance will continue to get them too.
05:26Now, some people have said they are concerned it will create a two-tier system, but I would say to the House, including members opposite, 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.
05:49For example, some people still receive the severe disablement allowance, which was closed to new claims in 2001.
05:58When 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 DLA, which replaced PIP in 2013.
06:12So, we believe protecting existing claimants whilst beginning to focus on those with higher needs for new claimants going forward strikes the right and fair balance.
06:23The second important question raised by members was seeing more details of our wider review of the PIP assessment before being asked to vote on the changes in this Bill, and many MPs also want to know the views and voices of disabled people will be heard at the heart of our plans.
06:42So, we have today published the terms of reference for our wider PIP review, led by the Minister for Social Security and Disability, to ensure this vital benefit is fit for the future, taking account of changes in society since it was first introduced.
07:00The review will look at the role of the PIP assessment, including activities, descriptors and the associated points, to ensure these properly capture the impact of long-term health conditions and disability in the modern world.
07:16And 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.
07:33The 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.
07:54So, I can today confirm that we will ensure for these 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 incomes from these benefits in real terms every year for the rest of this Parliament.
08:15Together with the changes to our proposals for PIP, this will ensure no existing claimants are put into poverty as a result of the changes in this Bill.
08:27And finally, Mr Speaker, whilst there has been widespread support for the extra investment we are putting into employment support for sick and disabled people, I know many honourable members on this side of the House have been concerned that this isn't enough.
08:42So, I can today announce that we are putting an additional £300 million into employment support for sick and disabled people.
08:51So, we will be delivering a total of £600 million for support next year, £800 million the year after, and £1 billion in 2018-2019, increasing our total spending on employment support for sick and disabled people to £3.8 billion over this Parliament.
09:09Because disabled people who can work shouldn't wait to have the same rights and chances to work as everybody else.
09:16And the measures we are announcing today will cost around £2.5 billion in 2029-30, and the overall savings and costing of our reform package will be certified by the OBR in the normal way at the next fiscal event.
09:32Mr Speaker, 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.
09:47The 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.
10:02Our plans are rooted in fairness for those who need support and for taxpayers.
10:07They are about ensuring the welfare state survives, so there is always a safety net for those who need it, and so it lasts for generations to come.
10:15But 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.
10:27This is the better future we seek to build for our constituents and our country, and I commend this statement to the House.
