Work and Pensions spokesman Lord Freud said the government wanted to focus support on the most severely disabled children.
Lord Freud said the government was not expecting "dramatic perceptible increases in homelessness".
For the government, Work and Pensions minister Lord Freud said he agreed with all of the points made during the debate.
Responding, Work and Pensions Minister Lord Freud said he had no fear the proposed changes would put more disabled children in poverty.
Lord Freud said the government would produce statistics "to national statistic standards" once the results of the programme are seen, which would be around autumn.
Explaining the government's decision, Welfare Minister Lord Freud said there had been a "clear consensus" that the three month time limit was the "fairest solution".
Speaking before the work and pensions secretary, welfare reform minister Lord Freud said that under the universal credit there would be a single point of entry into the benefits system for everyone.
BBC: Welfare reform will restore fairness, says Duncan Smith
Lord Freud said the government would offer to legislate for two biennial reviews on the performance of PIP, and commit to undertake a third if the second review demonstrates ongoing problems that need to be addressed.
Conservative spokesman Lord Freud said moves to guarantee free care to the 280, 000 most needy elderly and disabled people in their own homes were "political point-scoring" and would be paid for "by our children and probably our grandchildren".
The Department for Work and Pensions is still working on the details of the new scheme, but Lord Freud said that most people would be expected to go to the service after four weeks of sickness absence unless there is a specified reason not to, such as a serious long-term illness.
She said she was asked to pose for Freud after meeting the artist at a party.
He said the sketches had been difficult to value, as Freud "destroyed so much of his early work".
Speaking on BBC NI's Good Morning Ulster, Mr McCausland said he was due to meet Welfare Reform Minister Lord Freud next week and negotiations were taking place about Northern Ireland's specific needs.
"What we've found is that the unconscious mind doesn't really work the way Freud, Jung and others in the 20th century thought, " he said.
He also said he would speak with Westminster's Welfare Reform Minister, Lord Freud, to ensure universal credit was "better tailored to Northern Ireland customers".
Hambling said she was given the sketches by Cedric Morris, who taught both her and Freud, at different times.
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