Timms Review: Interim Report

With permission, I would like to make a statement on the Timms review of the personal independence payment—to make it fair and fit for the future, both for the disabled people who need it and for the taxpayer.

Today, the Government are publishing an interim report on behalf of the review’s steering group. Copies will be placed in the Library in both Houses. We are committed to openness and transparency, so it sets out the evidence gathered so far and the emerging themes. It will inform the recommendations that will now be developed for the final report, which is to be submitted to my right hon. Friend the Secretary of State for Work and Pensions this autumn.

PIP was introduced more than a decade ago, but the benefit has never been fully reviewed. Since 2013, the number of people reporting a disability has increased significantly; patterns of disability and ill health have changed; and the workplace and wider society have evolved. We have seen a sharp rise in disability and long-term health conditions, including in mental ill health among younger people. The number of people receiving PIP has risen considerably and is forecast to continue growing. Against that backdrop, we are taking a fresh look at whether a system introduced 13 years ago still reflects the realities of modern life, supports independent living and is sustainable for the long term.

The Timms review is the first time that the UK Government have co-produced reforms on this scale. Our aim has been to have a review that is not just about disabled people, but shaped with disabled people. That means working together with disabled people and drawing on their lived experience. The review is led by three co-chairs—me, Sharon Brennan and Dr Clenton Farquharson—and a steering group of 12 people we have recruited, almost all of whom have lived experience of disability or long-term ill health. The group represents a range of impairments, as well as different parts of the country. No single group can represent the full range of experiences of disability, however, so we have set up a wide programme of engagement of varied, accessible opportunities in which people with differing lived and learned experiences can get involved.

The interim report brings together the evidence we have heard so far. It includes a summary of findings from the call for evidence, which received over 38,000 responses, and an evidence pack provided by my Department to the steering group as a starting point for further evidence gathering. It is the strongest evidence base ever assembled on PIP, on the assessment process and on the experiences of those who rely on the payment.

The interim report presents a clear message from the steering group: PIP is hugely valued for managing the additional costs of disability, but its current design and delivery are no longer fit for purpose. The assessment for PIP is often described as stressful and dehumanising, and over 90% of those responding to the call for evidence reported that their experience of the PIP assessment was negative.

I call the shadow Minister.

I thank the Minister for the advance copy of his statement. I put on record my thanks to the 38,000 people and organisations who took part and responded to the call for evidence.

Let us be honest about how we got here. This review was not born out of principle; it was born out of panic. Last summer, the Government brought forward proposals for £5 billion of welfare savings, but 126 of their own Members rebelled, and within days, Ministers had abandoned the lot. The Timms review is a fig leaf draped over that failure—a review commissioned not to fix the system, but to get the Government through a difficult week.

A year on, what do we have? An interim report. Not a decision, not a reform, but a report about a report, with a promise of full findings in the autumn, and perhaps legislation at some later stage. Meanwhile, the welfare bill keeps rising. Spending on PIP alone is forecast to reach £43 billion a year by the end of this decade. Every month of drift is paid for by working people, and every month of uncertainty is endured by nearly 4 million claimants.

The Opposition accept that the system needs reforming. That is why, last month, we launched the Conservative party’s review of disability and sickness benefits. It is a root-and-branch review of a failing system that will look into who should get help, how they should be assessed, what form that help should take, the conditionality of support and how to control the level of overall spending. It asks a much more fundamental set of questions than this review. It sets out to make savings, as well as to build a better system.

The hon. Gentleman has set out some trenchant criticisms of the system that his party set up and left behind, and the question in everybody’s mind is: why did the Conservatives not do anything about it? They had 14 years, and they left the problems to which he has referred. He should be apologising to the House for the system that the party he represents left behind. The biggest ever rise in the welfare bill was in their last year in government.

We previously heard that the Conservative party has a plan for £23 billion of welfare cuts, although nobody has any idea at all what those cuts will be. The hon. Gentleman did not refer to that figure in his statement, so I am not quite sure whether the Conservatives now have a plan. He said that the Conservatives will review PIP; I welcome his belated recognition of the value of a review, but I do not know whether that means that they do not have a plan any more, or that they are throwing away the plan until they have carried out their review.

The hon. Gentleman has rightly expressed concern about the rising costs of the system—the public are rightly concerned about that—and particularly about the steep increase in the number of young people who are claiming, but we have set up work to address that problem. His party abandoned the growing number of young people applying for benefits; we will not do so. We are changing the question that the system is asking, and we are providing employment support and the youth guarantee to give young people the chance of a decent future.

I apologise for the fact that—as I have explained to you, Madam Deputy Speaker—I will have to leave straight after my question to chair Westminster Hall.

I thank my right hon. Friend for doing this very challenging piece of work. I think that the theme of fairness, for the people who need benefits and for taxpayers, is right. I have spoken to him briefly about the complaints from the Link Community Hub in Stradbroke in my constituency about the fact that people there with mental health conditions who are claiming PIP have drug abuse and alcohol abuse conditions, and are using PIP to fund those conditions. I have also complained about the young lads in their 20s driving around in Motability cars in Darnall; someone in the community has been paid to fill in the forms for them. On the other hand, so many constituents with really serious conditions get turned down for PIP, and can get it only if they struggle through the appeal system, sometimes without any help at all. So the system is not fair to anyone at present. I commend him for his suggestions, but is he going to have a real look at the different reasons people give for applying for PIP, and at how to respond to them properly?

My hon. Friend is absolutely right, and I think we have an appointment in the diary to talk about the issues that he has raised about his constituency, and his constituent who has drawn his attention to them. My hon. Friend is right that, at present, the system does not work properly for disabled people, and it does not give taxpayers confidence that the funding is being well used. We are determined to turn things around and to be fair to both, and I am grateful for his support for the efforts we are making.

I call the Liberal Democrat spokesperson.

I thank the Minister and everyone involved in the review for their hard work; this is a difficult subject, so it is much appreciated.

Today’s report has confirmed what perhaps all of us knew for many years, which is that PIP is supposed to act as a lifeline, but is administered through a broken system. Disabled people say that the application process actively disincentivises them from staying in work and maintaining an active social life. That is unfair on claimants and damaging for our economy, and it should worry us all. People deserve far better. We welcome this interim report, and we will engage constructively with the Government and play our role in the delivery of genuine improvements to the system. We want a society in which everyone can live independently and with dignity. We need the right support in place to ensure that disabled people and their carers can live their best possible lives, and the PIP system must be built around those principles.

We must, however, recognise the structural underlying challenges in the operation of the system. In 2024 prices, spending on incapacity and disability benefits rose from £34 billion a year in 2019 to £51 billion a year in 2024, under the previous Conservative Government. The number of those economically inactive due to long-term health issues rose from 2.1 million to more than 2.8 million in the same period, and the figure is stuck at a similarly high level now. This is seriously worrying, and the UK is largely an outlier in that regard. On current trends, the total bill for working-age sickness and disability benefits is projected to rise to £78 billion in 2030, which means that it will have more than doubled in 10 years.

I am grateful to the hon. Gentleman for his support for this review, and for his tribute to those who have put a great deal of work into it already, and who will be putting in a lot more between now and the autumn.

The hon. Gentleman is right to make the points that the system is not working well for disabled people at the moment, and that its costs are rising rapidly in a way that is of concern to many, including, rightly, taxpayers. He is right to highlight that this benefit, which is supposed to contribute to independence and participation, too often presents a barrier to those things, because so many people are worried that if they undertake an activity, the Department for Work and Pensions will say, when they get reassessed, “Oh, so you didn’t need your benefit after all, then,” and take it away. There is striking evidence of the scale of the concern about going to work, or taking part in exercise or sport. The current system presents significant barriers, and we want to address those. There are, absolutely, concerns about the rising costs, which we also need to address. All those factors will be in the minds of the steering group as we progress with the review, ahead of our final report in autumn.

The steering group, as I mentioned, is made up almost entirely of disabled people. The concern about the financial sustainability of this benefit is of great concern to them as well, because if it is deemed to be not financially sustainable then there is a risk to its future. We need the support to be present for the long term for the large number of people for whom it is vital.

I thank the Minister for his work and look forward to welcoming him to Graeae theatre in my constituency, which is an exemplar of how to support disabled people to work and fully participate. In the discussions he has had so far, is he looking at adaptive technology? Money can be one of the barriers to living a full life, but there are now new technologies that can sometimes be in place of some of the funding that has been available for people to buy things themselves. Is he having any discussions with the steering group on that issue?

We are doing quite a lot of work in the Department specifically on assistive technology. In fact, the Secretary of State was at a roundtable recently with representatives of the tech industry. One problem is that the technology is moving on rapidly but a lot of people do not know about it. People are not even aware of the technology that is already in our phones and available without any extra charge. We are doing quite a lot of work on that at the moment. I hope we will, later this year, be able to issue a call for evidence on how to do a better job on exactly the areas my right hon. Friend highlights.

I thank the right hon. Member for his statement. What a shame he has been asked to look at this issue only now, when his party had 14 long years in Opposition to work out what they wanted to do. Given that he acknowledges the system needs reform—as every new Government acknowledge—does he accept that, in today’s world, a system of cash payments to some people with conditions such as attention deficit hyperactivity disorder, where half the claimants are aged between 16 to 24, is not what they need most? Indeed, some of them have no financial needs at all. Does he accept that the money would be best saved—will he confirm that there will be savings?—and some of it invested in better health and community services, technology, and incentivising businesses to employ the six in 10 young people who are not in education, training or work?

I think we can take the hon. Member’s question as a tacit recognition that in 14 years the previous Government should have done something to fix these problems. The steering group is clear that the provision of cash to meet the additional costs of disability is vital. We will not be moving away from the importance of that, but I think there is a question about whether the process can also point people towards help that may be valuable to them in addition to, or in some cases perhaps instead of, a cash payment. There is help and support that people need, and I think the process could help to point people to that. One problem people have had to contend with is the terrible NHS waiting lists, which thankfully are now being reduced, but the system may be able to point people to the right place in the health service. We are looking at all those issues and we will come back with recommendations in our final report.

I thank my right hon. Friend for his statement and I welcome the review’s direction of travel. As we know, the PIP system is not fit for purpose. Indeed, it has created much mistrust, stress and worry. More importantly, it has created a hostile environment for disabled people. At a recent meeting of the all-party parliamentary group on disability, which the Minister attended along with representatives of the steering group, we heard from disabled people about their experiences, and from organisations including Mencap and the Royal National Institute of Blind People that the assessment and PIP do not truly reflect or recognise the lived experience of many disabled people. As we move forward into the second phase of the review, can my right hon. Friend assure me that he will continue to have co-production at the heart of this process? The Minister should be commended for the work he is doing in co-producing the review. It is the first time the Department has taken that step, so we really cannot take lessons from the Conservative party. Can he reassure me that co-production will remain at the heart of this work?

Yes, I can give my hon. Friend that assurance. I pay tribute to her work as the chair of the APPG on disability, and I am grateful to her for her welcome to us the other week. She is absolutely right. I very much hope that people with sight impairments and others looking at the review will feel that the Government have listened to the points that have been made for a long time. I assure her that co-production will be at the heart of the rest of the work as well. It was, of course, a decision of this House that the review should be co-produced. We have worked very hard to ensure that we are properly co-producing it. I think we are gaining the benefits of that approach and that the outcome from this exercise will be significantly better because it is a co-produced review.

Does the review plan to look into the question of what happens when something goes wrong in the arrangements for a disabled person receiving PIP or universal credit? This time last week I raised with the Leader of the House at business questions the fact that my casework team had been trying for six months to get an answer on behalf of someone who lost PIP and UC. We had a holding letter in February, but we have still had no substantive reply and this lady is getting more and more desperate. We did write to the Minister on 8 June. I know he has been very busy, but he should be receiving a letter, if he has not already, from the Leader of the House. When he deals with that individual case, will it perhaps serve as a guide to what is needed more generally to be able to communicate on behalf of our constituents?