Dear Constituent,
Thank you for getting in contact about the Government’s proposed changes to the Welfare System and the eligibility for Personal Independence Payments (PIP).
The purpose of PIP is to support people with the extra costs arising from long-term ill-health and disability which is not means-tested and is available irrespective of whether someone is in work. I supported the former Government's work to look at reforming PIP to tailor it more closely to people’s needs and ensure the system is sustainable while and ensures resources are not open to exploitation. However, I cannot support the current Government’s approach which has been both ill thought through and poorly executed.
Their Universal Credit and Personal Independent Payment Bill (now changed to the Universal Credit Bill) was rushed for the Chancellor. It wasn’t driven by a clear vision for reform, but by a desperate scramble earlier this Spring to find £5 billion in savings after the Chancellor lost control of the public finances. What followed was a shambolic legislative process that showed sheer incompetence and exposed deep divisions and a lack of leadership in the Government.
The economic credibility of this Government collapsed when they abandoned their flagship welfare reforms, and left the Chancellor with a sizeable black hole to fill with likely tax rises to come later this year. Hardworking families across the country will be deeply concerned about the impact this failure may have on their household finances.
Key parts of the Bill were dropped at the last minute, leaving behind a hollowed-out piece of legislation that does little to fix the real problems in our welfare system. The Bills lacks coherence, purpose, and any serious attempt to support people back into work or protect those most in need.
There was an opportunity for a comprehensive rebalancing of our welfare system in a way that is compassionate while ensuring this safety net is sustainable for the long-term and encourages and supports people back to work. Instead, the Government chose a path that was not only unambitious but deeply unfair, placing the burden of savings on the shoulders of the most vulnerable. There is little confidence across all political parties that the Bill, even in its amended form, will achieve any savings. That’s why I voted against the Universal Credit and Personal Independence Payment Bill.
The welfare budget is growing; it is set to reach £100 billion by 2030 and £1 in every £4 raised in Income Tax is spent on sickness and disability benefits. It’s clear that this scale is not sustainable. But neither is a system that lurches from one crisis to the next, with no clear plan and no real engagement with the people it affects.
To effectively address the challenges of our growing welfare bill, reform must be grounded in evidence, be properly planned, and focused on outcomes. We need a system that protects the most vulnerable people when they need it, encourages and supports people into work, and commands public confidence.
The Government’s failure to tackle the root causes of high living costs, like energy and food prices, only makes things worse. When measures like salary or welfare increases are introduced in isolation, without tackling broader economic pressures, they can inadvertently contribute to rising inflation. That’s why we need is a broader economic strategy that promotes growth, reduces the tax burden on working families, and restores confidence in our public finances.
Under the Coalition and Prime Minister David Cameron, the Government made difficult but necessary decisions. They didn’t get everything right, but they were based on years of preparation and a clear mission to help people into work. By 2023/24, the number of disabled people in employment had risen to 5.5 million, and funding for Access to Work had doubled since 2016/17. That’s the kind of progress we should be building on, not undermining it with rushed, incoherent legislation.
I remain committed to a welfare system that is fair, functional, and financially sustainable. One that supports those in genuine need, encourages independence, and ensures that public money is used fairly and effectively.
Although politically convenient, consistent U-turns such as scrapping changes to PIP eligibility and reversing the Winter Fuel Payment decision are entirely unfunded. Together, they create a £4.5 billion shortfall by 2029–30, with further costs likely. If the Chancellor sticks to her fiscal rules, it is clear working people will see more tax hikes in October to cover the gap.
I will continue to advocate for a welfare system that is compassionate, credible and sustainable, and capable of meeting the challenges ahead.
Thank you again for getting in contact.
Yours sincerely,
Richard Fuller MP