I want to thank all constituents who have written to me about the government’s plans for welfare reform.
On this issue, I have been regularly meeting with constituents, engaging with local groups and advice agencies, and taking their views back to Parliament.
It’s clear from listening to people across Portsmouth that the welfare system is broken and must be fixed. I hear frustrations from those who want to work but don’t have the support to do so, and frustrations from those who are let down when the system fails. I have also heard real anxiety from many current claimants as we have debated our proposals for reform.
I have taken on board all feedback from constituents as I have engaged with this legislation. There are three core parts to the government’s reforms, and I’ll address them each in turn.
First, we will take action to support those who can work into work.
To do this, we will rebalance payments in Universal Credit, to address the perverse incentives which push people away from work, and turbocharge support to help people into work.
- We will deliver the first ever sustained, above-inflation rise to Universal Credit. This will equate to a cash increase of £725 per year for a single household aged 25+ – £250 above inflation on current forecasts by the end of the Parliament – and provide a much needed boost to nearly 4 million households.
- We will invest £1bn per year by the end of the parliament to invest on work, health and skills support, which help people on a pathway to work.
- We are legislating for the right to try work so that people can try work safe in the knowledge that trying work will not, in and of itself, lead to a reassessment or award review, breaking down barriers to employment.
- For new UC health claimants only, we will reduce the health top up for newly declared health conditions from April 2026, alongside active support to help people back to health and work.
- Those currently in receipt of the health top up and new claimants who meet the Severe Conditions Criteria or where Special Rules for End of Life apply will now be uprated each year this Parliament to ensure their combined rate of the Universal Credit standard allowance and LCWRA is protected in real terms.
Second, we have launched a review of the PIP assessment process which will be co-produced with disabled people.
This review will include looking at the activities, descriptors and associated points to ensure these properly capture the impact of long-term health conditions and disability in the modern world. We hope to conclude by Autumn of 2026.
Third, we will protect those with the most severe, lifelong conditions who we don’t ever expect to work by not calling them for a reassessment of their UC.
We will also ensure UC is protected in real terms for both customers who meet the Severe Conditions Criteria and those with 12 months or less to live, ensuring future claimants will receive the same, higher rate of UC health as current claimants.
- Everyone applying for UC in the future who meets the Severe Conditions Criteria, or the Special Rules for End of Life, will still receive the same, higher, rate of UC health as current claimants.
- The Bill also guarantees that for both new and existing claims, those who meet the Severe Conditions Criteria will not be called for reassessment in future.
- The UC health element rate for existing recipients and new claimants who meet the Severe Conditions Criteria or where Special Rules for End of Life apply will be uprated each year this Parliament to ensure their combined rate of the Universal Credit standard allowance and LCWRA is protected in real terms.
It is my judgement that this is a package of reforms that will deliver a fairer, more compassionate welfare system – a safety net for those who can’t work and a springboard into employment for those who can.
I will continue to follow developments on this important matter closely, meet with constituents and work with the Government to ensure the system is fair, sustainable and fit for the future.
