Green Paper Related Discussions - Will it be a money bill?

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System
System Posts: 229 Online Community Programme Lead
This discussion was created from comments split from: Green Paper and Benefits Reform Updates.

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  • charlie72
    charlie72 Online Community Member Posts: 253 Pioneering

    ChatGPT said:

    It is extremely unlikely that the proposed benefit reforms (like the changes to PIP eligibility or "Pathways to Work" reforms) would be passed through Parliament as a Money Bill, and here’s why:

    🔍 What Is a Money Bill?

    A Money Bill (under the Parliament Act 1911, section 1) is a bill exclusively concerned with national taxation, public money, or loans, such as:

    • Imposing or repealing taxes
    • Managing government borrowing
    • Authorising public spending
    • Setting charges on the Consolidated Fund

    Money Bills must be certified by the Speaker of the House of Commons, and:

    • They can only be introduced in the Commons
    • The House of Lords cannot amend or reject them — only delay for one month

    ❌ Why PIP and Benefit Reforms Don’t Qualify

    Although welfare benefits do involve public money, that alone does not make a bill a Money Bill.

    • PIP and UC eligibility rules are policy-based and involve criteria, assessments, and entitlements, not just funding.
    • The Welfare Reform Act 2012, which introduced PIP and Universal Credit, was not a Money Bill — it was treated as a normal Public Bill.
    • Changing eligibility criteria or imposing conditions for receiving benefits is substantive social policy, not purely financial administration.

    💬 Speaker’s Role

    Only the Speaker of the Commons can certify a bill as a Money Bill — and they are very strict about this. Even if the government wanted to fast-track controversial welfare reforms, it's unlikely the Speaker would approve that route if the bill includes:

    • Non-financial provisions (e.g. assessment rules, eligibility changes)
    • Policy goals (e.g. getting more disabled people into work)
    • Significant administrative or structural changes

    ✅ What the Government Can Do

    • Use a regular bill with a government majority to pass reforms
    • Try to insert some changes into the annual Finance Bill — but only if they relate directly to tax/benefit calculations
    • Use secondary legislation (statutory instruments) to make changes under existing Acts (e.g., Welfare Reform Act), but even these must stay within powers Parliament has already granted

    🔚 Conclusion

    No, the proposed benefit reforms and PIP eligibility changes cannot properly be classified as a Money Bill. They would almost certainly go through Parliament as standard Public Bills, which means:

    • They would be debated and voted on in both Houses
    • The House of Lords could amend or delay them (but not ultimately block them if the government uses
  • johnnyy85
    johnnyy85 Online Community Member Posts: 264 Empowering
  • mawempathy
    mawempathy Online Community Member Posts: 145 Empowering

    I think the plan is strip back what they are going to push through as a Money Bill, so they can push the actual cuts to amounts paid through, and other elements of the upcoming reforms will be done in the normal parliamentary way.

    So basically expect the Money Bill to contain the 50% reduction in LCRWA, any cuts to UC, PIP, benefit freezes, etc. The assessment changes and all the other policy ideas will be a separate battle subject to much greater scrutiny and potential judicial challenge.

  • charlie72
    charlie72 Online Community Member Posts: 253 Pioneering

    Thankyou!!! I keep posting the same thing, I have done since last week but nobody is taking notice. No doubt others will continue to post links etc about this so I'm just not taking notice of them, it gets me fed up saying the same thing then someone posts, well on so and so site I found this, so it must be true. ITS NOT GOING THROUGH AS A MONEY BILL!!