Scottish Government hit out at DWP welfare overhaul
Sir Keir Starmer will also likely face a sizeable rebellion from many of his own backbenchers when MPs vote at second reading, due at some point in the next two to three weeks.
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In a news release published alongside the Bill, Labour said it inherited a 'broken social security system' when it came into government last year, 'with costs spiralling at an unsustainable rate and millions of people trapped out of work.'
The DWP said almost one million young people are not in education, employment or training, while one in 10 people of working age are now claiming a sickness or disability benefit.
They added that without reform, the number of working-age people on disability benefits is set to more than double this decade to 4.3 million.
Meanwhile, spending on working-age disability and incapacity benefits is up £20 billion since the pandemic and is projected to rise by nearly as much again by the end of this Parliament, to around £70bn a year.
DWP offices in LondonThe DWP said the Universal Credit and Personal Independence Payment Bill, introduced to Parliament on Wednesday, would deliver 'peace of mind' for around 200,000 people with the most severe and lifelong health conditions, as they will be exempt from further assessments and guaranteed the higher health element of Universal Credit, currently worth £97 per week.
The Government has also confirmed a 13-week transition period payment for people who are losing PIP, or their eligibility to carers allowance and the carer's element of Universal Credit.
But the UK Government is also pushing ahead with plans to tighten eligibility for PIP, which is expected to reduce the number of claimants in England and Wales by hundreds of thousands.
The benefit has been mostly devolved to the Scottish Government, which began replacing it with Adult Disability Payment (ADP) in 2022.
As of January this year, more than 433,000 people in Scotland were receiving ADP, while just 35,000 remained on PIP.
The SNP has ruled out replicating the changes, however, any changes to PIP spending will have an impact on the block grant to the Scottish Government.
If UK spending falls due to tighter eligibility rules, so too does the money available to ministers in Edinburgh.
The Scottish Fiscal Commission forecast in December that by the end of the decade, ADP would cost £381 million more per year than Scotland receives through the block grant adjustment for PIP — a shortfall that could grow significantly if UK reforms deliver the savings ministers expect.
Announcing the Bill, Ms Kendall said: 'Our social security system is at a crossroads. Unless we reform it, more people in Scotland will be denied opportunities, and it may not be there for those who need it.
'This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.
'This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot — putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.'
Social Justice Secretary Shirley-Anne Somerville described the reforms as 'exceptionally detrimental'.
'We will not let disabled people down or cast them aside as the UK Government has done. We will not cut Scotland's Adult Disability Payment,' she said.
'The UK Government should follow our lead and protect the social security safety system, rather than dismantling it. If they do not, then disabled people can draw no other conclusion than the UK Government remain content to balance the books on the backs of the most vulnerable.'
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Citizens Advice Scotland head of social justice, Emma Jackson, said they were 'deeply concerned that the UK Government is not sufficiently considering the unique impact of these proposed reforms on people in Scotland.'
She said: 'Around two-thirds of the people accessing support from the Scottish CAB network have a disability or health condition, and our evidence shows that people already cannot afford the essentials. These cuts will force more people into debt, destitution and despair.
'From what we understand, alongside reducing incomes, there is a high risk that welfare reforms could make the claims process even more complicated for people in Scotland, increasing the likelihood that they will not access their full support entitlements.
'It is crucial that the UK Government halts and reconsiders these reforms. Meaningful consultation is required with the Scottish Government, disabled people and the third sector in Scotland. We strongly urge MPs to vote against the proposed welfare reforms because they will expose sick and disabled people in Scotland to significant harm.'
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