The Government's stripped-down welfare Bill will still see hundreds of thousands of disabled people lose £3,000 a year by 2030, MPs have heard.
Furious Labour backbencher Rachael Maskell branded it a "stain on this great party" as she demanded a further climbdown. She voiced her anger after an impact assessment published on Tuesday said 750,000 would be impacted when the health aspect of Universal Credit is cut.
Although ministers propose increasing the Universal Credit standard allowance at least in line with inflation until 2029/30, they also want new claimants who sign up to the "limited capability for work and work-related activity" payment to receive a lower rate.
This change will come in after April 2026, unless they meet a set of severe conditions criteria or are terminally ill. The Government was last week forced to shelve plans to slash £5billion from welfare spending by narrowing eligibility to personal independence payments following a huge rebellion.
Ms Maskell told the Commons: "Last week's chaos and climbdown has been overshadowed by events of the last 48 hours. The impact assessment of last night showed £2billion is still to be stripped for up to 750,000 sick and disabled people by 2029/30 by slashing the health element of Universal Credit in two.
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"By the end of this Parliament someone will lose around £3,000 a year." And she told colleagues: "To pass this Bill tonight will leave such a stain on this great party founded on the values of equality and justice."
And former Labour MP Zarah Sultana, who last week quit as a Labour member more than a year after having the whip withdrawn, said: "This is a Government not only out of touch but also morally bankrupt. It works for billionaires and big businesses but turns its back on disabled people.
"It holds its summer reception at MasterCard's headquarters while disabled people are pushed to foodbanks. It impoverishes the sick and the elderly to satisfy spreadsheets and then dares to speak of tough choices."
Earlier this week the Department for Work and Pensions (DWP) said changes to the Universal Credit and Personal Independence Payment Bill will pull 50,000 children out of poverty. Debbie Abrahams, who chairs the Commons Work and Pensions Committee urged the Government to push back its reforms until November next year.
She said: "This is to allow for the NHS capacity to ramp up and to ensure funding follows health need, so that people with newly required conditions or impairments can receive early treatment and a better aligned labour market that will enable them to return to work quickly.
"Without this, there is the risk that 45,000 more newly disabled people and their children will be pushed into poverty."
Labour MP for Penistone and Stocksbridge Marie Tidball urged the Government to properly work with disabled people in the Pip review, known as the Timms review. Ms Tidball, a disabled MP who tabled a cross-party amendment on the Timms review, said: "While the minister will head up this review, the voices of disabled people must be front and centre.
"The measures in this new clause emphasise the need for disabled people and disabled people's organisations to make up the majority of the taskforce, and to have a significant role in the leadership of the review, and I believe carers could be a part of that."
She said any recommendations must be debated in the Commons before implementation. She said: "Output of this review must also be meaningful and not performative."
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