Richard Burgon: ‘Labour MPs must reject massive cut still in disability bill’

When MPs vote on the final stages of the disability benefits Bill this week, one major decision remains: whether to impose around £2 billion of cuts on hundreds of thousands of low-income sick and disabled people.

After last week’s Government concessions in the face of huge opposition, it’s understandable that some MPs may feel relieved that the worst parts of the Bill are gone. But that’s simply not the case.

A huge cut remains. It targets the health element of Universal Credit, formerly known as the Limited Capability for Work and Work-Related Activity (LCWRA) element.

This is due to be halved – from £97 a week to just £50 . Around 750,000 people will lose vital support worth around £3,000 a year by 2030.

A massive cut

That’s a massive cut, made even worse by the fact that it targets those on sufficiently low incomes to be receiving Universal Credit – and so already facing disproportionately high levels of hardship.

It also targets people already assessed by the DWP as too ill either to work or to prepare for work – completely undermining any claim that this Bill is about getting people back into jobs.

Those losing out will include people facing some of the most distressing and difficult circumstances. That includes people unable to turn the pages of a book with either hand, those who cannot bring food or drink to their mouth without help of someone else, those who cannot communicate a simple message such as the presence of a hazard, and those with debilitating incontinence.

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No Labour MP should be backing any of that. That’s why I have tabled an Amendment to prevent this cruel and unnecessary cut – and the damaging two-tier system it would create. The amendment has so far been backed by over 40 MPs, with more expected to sign in the coming days.

This deep cut will take effect from next year. If MPs vote it through this week, they will soon be met with the terrible consequences – week after week  –  in their constituency surgeries, from the very people it will hurt.

Nor can MPs comfort themselves by thinking this will be fixed later through some future review. It won’t be  – and does not form part of the Timms Review into PIP.

Disabled people’s organisations are clear on the need to reject this cut. A huge coalition is urging the Government not to proceed with it and to back amendments like mine to prevent them.

Ellen Clifford from Disabled People Against Cuts said “that the huge Universal Credit cut for new claimants remained in the Bill unchanged… makes a mockery of any claims to be protecting vulnerable people.”

Disability Rights UK highlighted how “While a two-tier PIP system has been avoided, at least for now, we will have a two-tier universal credit system. Debt and poverty are already a fact of life for existing universal credit claimants, with many unable to afford essentials. Factor in the high additional cost of disability, the cut will make a grave situation much, much worse.”

This is all about saving money

Disabled people’s organisations also highlight the real risks that current recipients – not just new claimants –  will be hit by this policy. For example, disabled people who move into work for a period of more than six months but are then unable to continue due to their condition would have to return to Universal Credit as a ‘new claimant’ – and face a £3,000 cut.

Likewise, people who lose their health element following a reassessment and subsequently make a new application would also be forced onto the lower level – which, given that half of Universal Credit decisions that reach appeal are overturned, is a major flaw.

The Government insists those with the most severe conditions will be protected – but even its own impact assessment shows that fewer than 1 in 10 new claimants will meet that high bar. In reality, 700,000 people will be hit by the cut, while just 80,000 will be spared.

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Once again, this is all about saving money – and doing so on the backs of some of the poorest and most severely ill people in the country. No Labour government should be trying to balance the books in that way.

There is a better alternative  – one backed by growing sections of the Labour Party and trade union movement: raising revenue through a wealth tax on the super-rich. Former Labour leader Neil Kinnock is among the latest to back the policy of a 2% wealth tax on assets over £10 million, alongside major trade union leaders from UNISON and USDAW.

Once again, this week MPs will have a choice to make. Even if my amendment is not selected, there will be a separate vote on Clause 2 of the Bill, which introduces these cruel changes.

Let’s stand with sick and disabled people and reject these cuts and the lasting harm they will cause. And let’s truly work with disabled people to build a much better system. This is about the type of Labour government we want to see.

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