Northern Ireland (Welfare Reform) Bill

Baroness Ritchie of Downpatrick Excerpts

Monday 23rd November 2015 Commons Chamber

[Ms Margaret Ritchie (South Down) (SDLP)]

I welcome the opportunity to participate in this debate, but I regret the fact that the Northern Ireland (Welfare Reform) Bill is not being discussed in the place where it should have been discussed: the Northern Ireland Assembly. All of us should have the higher ambition of ensuring the fulfilment of a meaningful devolution process. As one of the parties that negotiated the Good Friday agreement along with both Governments, supported by the majority of people on the island of Ireland through the two referendums that established the political institutions, we believe that this debate on welfare reform should be taking place in the Northern Ireland Assembly.

As a party, we believe in the principle of welfare reform, but we recognise that people do not choose to be on benefits. It is not a lifestyle choice, as was pointed out during the debate on the Welfare Reform and Work Bill back in July.

For a party that has always supported devolution, it is not just a matter of regret but the cause of a deep sense of anger that the power to deal with this welfare legislation has been passed back to this Chamber from the Northern Ireland Assembly through a legislative consent motion, simply to save the blushes and electoral fortunes of Sinn Féin, with the acceptance and acquiescence of the DUP.

The right hon. Member for Lagan Valley (Mr Donaldson) referred to tax credits. I recall us all going through the No Lobby, but it is interesting that this enabling legislation will facilitate in-work tax credit reductions. The DUP will support that, which is something of an anomaly. That is a difficult situation that it will have to explain to the electorate.

[Mr Jeffrey M. Donaldson]

Will the hon. Lady give way?

[Ms Ritchie]

I am happy to give way to the right hon. Gentleman.

[Mr Donaldson]

I thank the hon. Lady for giving me the opportunity to make it absolutely clear that 105,000 families in Northern Ireland will, as a result of this agreement, be protected in respect of tax credits. That is what the DUP has delivered.

[Ms Ritchie]

It is interesting to note that, according to research carried out by the Library, 112,500 people in Northern Ireland are in receipt of tax credits and the annual £60 million of tax credit top-ups for the next four years will meet only 40% of what Northern Ireland will lose.

[Sammy Wilson]

I do not mean to cut the hon. Lady off during a flourish of rhetoric, but does she accept that the welfare reform legislation does not include changes to tax credits? Those have been made through other legislation that is totally separate. It is wrong to set up a straw man by indicating that there is a connection between this legislation and tax credits.

[Ms Ritchie]

My understanding is that the British Government, whose representatives are here today, including the Secretary of State, are claiming that that is the situation.

The people of Northern Ireland fought long and hard with political parties and both Governments to secure the democratic political structures. The SDLP wants to see the bedding down of those institutions through political stability; economic prosperity; greater devolution in respect of fiscal flexibilities, broadcasting and telecommunications; and the deepening of the north-south and British-Irish structures that were facilitated by the Good Friday agreement and the Northern Ireland Act 1998. We do not want to see power removed from the Northern Ireland Assembly and the Executive to be given to the Secretary of State and this Chamber. That was not the purpose of the Act that we voted for in 1998, when power was given to the Northern Ireland Assembly and the Executive.

[Lady Hermon]

Will the hon. Lady just reflect on the past few months? If she and her colleagues have ever listened to the Stephen Nolan show on Radio Ulster, they will have realised that the prolonged arguments over welfare reform have, most regrettably, managed to bring the Assembly into disrepute. As a committed devolutionist—I know the hon. Lady shares my views—does she agree that unless we settle the argument over welfare reform, the majority of people in Northern Ireland might prefer direct rule? I am sure she would not want that, and it is not something that I wish for, but the issue has to be settled and the Bill will do that.

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[Ms Ritchie]

I thank the hon. Lady for that intervention. As a committed devolutionist I want to see devolution in Northern Ireland, and I want it to grow and deepen. That is why I do not like the fact that the Bill is being discussed in this Chamber. As for what happens on the Stephen Nolan show, I would say that the people of Northern Ireland are sick, sore and tired of in-and-out Ministers who lasted for 10 minutes, and who did not bring a certain level of judgment and decision making to urgent issues such as waiting lists and other things that impacted on the daily lives of our constituents. Let us hope that from this day forward we can all move on and have the ability and capacity to deliver for all the people.

I welcome the top-ups and the mitigation measures, and I hope that they will still exist after the Chancellor’s comprehensive spending review. As the Secretary of State will recall, during questions on her statement I asked her about that specific issue, and she confirmed that that would be the case. I hope that those measures will not be cancelled as a result of cuts that might flow from the comprehensive spending review, or as a result of announcements that the Chancellor might make about mitigation for tax credits that will allegedly come from decisions that were made in the House of Lords on the Welfare Reform and Work Bill some weeks ago.

[Mr Gregory Campbell]

The hon. Lady is waxing eloquent about top-ups, and the DUP agrees with her. Does she find it difficult to reconcile her effusive support for the top-ups in the Bill with her party’s attempt to derail it?

[Ms Ritchie]

The SDLP never tried to derail the top-ups or mitigations. I well recall meetings that we had in 2012. In February 2012 a delegation, including my hon. Friends the Members for Foyle (Mark Durkan) and for Belfast South (Dr McDonnell), met the then Minister in the other place—Lord Freud—to deal with these issues. We suggested that one top-up could deal with the eradication of the bedroom tax, and it took many months for the then Minister for Social Development to come to that realisation. We had a further meeting in November 2012 with Lord Freud at the DWP, and at that stage we again understood from him that a top-up for the bedroom tax would be one mitigation measure. We had no problem with that because we support those mitigation measures and we want to ensure that they are retained and bring a level of comfort and solace.

Let me emphasise again that nobody chooses to be on benefits. It is not a lifestyle choice; it is due to force of circumstance. For example, people do not necessarily have access to employment in the area where they reside, or the necessary travel arrangements to get to particular places of employment; or sadly, as in the constituency of the hon. Member for North Antrim (Ian Paisley), many people have lost their jobs, and do not find suitable employment that corresponds with their academic, engineering or vocational qualifications. That is a matter of deep regret.

The Government, working with the Northern Ireland Executive and the Assembly, must ensure that resources are invested and projects equitably distributed to afford balanced regional development throughout Northern Ireland in a way that allows job opportunities in the west and the south-east to compare with those in the city of Belfast.

This Bill should not be being discussed in Westminster, and its Second Reading and further stages should have been dealt with by the Northern Ireland Assembly. In that respect, the power of devolution has been removed. We have tabled amendments to curtail the Secretary of State’s power over our welfare system—power that has been handed over by Sinn Féin and the DUP. We have heard much about Sinn Féin and Tory cuts, and they are happy to allow the Tory Government to implement those cuts along with the support of the DUP. Devolution was hard fought for and hard won in Northern Ireland, and the SDLP unquestionably refuse to give it up.

[Gavin Robinson (Belfast East) (DUP)]

Rather than reflecting on where we are this evening, would the hon. Lady not do better to spend her time focusing on the SDLP’s failure to promote any consensus on welfare over the past three years in Northern Ireland? If she had focused on those actions, we would not be here tonight.

[Ms Ritchie]

The hon. Gentleman will not be surprised when I say that I disagree with his viewpoint. The SDLP tabled amendments to the Bill in the Assembly, and those revenue-neutral amendments were refused and declined by the DUP and Sinn Féin.

[Mark Durkan]

Does my hon. Friend recall that in 2011 in the Northern Ireland Assembly, when the Welfare Reform Bill was going through this House, the SDLP proposed in the Assembly that a special committee should be set up to undertake parallel scrutiny and to anticipate the implications of that Bill, so that we could have consensus and address Whitehall? That was voted down by the DUP.

[Ms Ritchie]

I thank my hon. Friend. I well recall that because I was a Member of the Northern Ireland Assembly at the time, and I was party to that proposal. I clearly remember that we were trying to achieve consensus on the best way to ensure that the best mitigation measures were put in place. That proposal was refused by the DUP and Sinn Féin—the cosy partners in government who deliver only for themselves and not for the wider public.

I speak as a former Minister for Social Development who had direct responsibility for benefits, and I well remember introducing a household fuel payment Bill, which was separate from measures that existed in Britain. That Bill sought to address fuel poverty and ensure that people who felt it would be difficult to pay for both eating and heating—we agreed with them—did not have to make that choice. The SDLP has always stood by the people and by the principle of consensus, and it is a matter of deep regret that others did not do so. I regret that the Bill is not being dealt with in the Northern Ireland Assembly, and that the power of devolution on these matters has been removed from our colleagues in the Assembly on a cross-community basis.

[Mr Wallace]

We are not taking away the power; we are taking the power in parallel. The power remains in the Northern Ireland Assembly, and should Ministers there wish to do so at any time in the future, they could bring forward welfare legislation. We are not removing the power, we are sharing it in a parallel process.

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[Ms Ritchie]

I thank the Minister for that helpful intervention, but it would be much more helpful if he and his colleagues supported our amendments, which would help to clarify matters and to further delineate such measures. Before he winds up the debate, will the Minister reflect on our amendments as we move to the Committee stage?

[Sammy Wilson]

The hon. Lady does at least engage in debate on these issues. We might appreciate her anger against the welfare reform proposals were it not for the dual standards that her party has adopted. She is railing against some of the measures in the Bill. For example, her party opposes the bedroom tax, as she calls it, but it was her own Minister who introduced the removal of the spare room subsidy for people who live in the private sector. On the one hand, she condemns the Government for picking on people in the public sector, but her own Minister introduced it for people in the private sector, where rents are even higher.

[Ms Ritchie]

I well recall that measure being debated and it related solely to the private rented sector.

I regret that the Bill has not been taken in the Assembly, where it rightfully belongs. I hope the Minister will reflect on our amendments in his winding-up speech and provide greater clarity. I hope Northern Ireland can be a place of work, endeavour and prosperity. That is our job, the job of Parliament, the job of Cabinet and the job of the Northern Ireland Executive.

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[Ian Paisley]

Yes, they should cheer up. We should all cheer up.

I welcome the fact that Westminster is legislating on this matter. This is the sovereign Parliament of the United Kingdom of Great Britain and Northern Ireland, and if the Assembly is incapable or dysfunctional, this place should threaten to take those powers from it—and it should take them. Thankfully, some people, having made threats, saw the light. In that regard, we have seen an important change in the political regime. For years, when Sinn Féin threatened, Sinn Féin got. Mr Blair was quick to bend over for their every wish because they made threats. So I must salute the Government, because when Sinn Féin threatened, Tough Theresa stood up to them. When they threatened, Tough Theresa said no, and I think we should salute her for it. That was no roll-over Unionism from the Government, and we welcome it. We welcome the change of regime and the fact that Sinn Féin cannot go on making threats or suggesting ominously that things could come to a sore and sad end if it does not get its way.

I welcome the fact that that is no longer the case under this regime, but let us look at some of the U-turns that have been performed in the last year and a half, because they are amazing. In an Assembly debate, Martin McGuinness, the Deputy First Minister, made the most derogatory comments about the right hon. Member for Hemel Hempstead (Mike Penning), the Northern Ireland Minister at the time. He said that the Minister had entered into this debate

“in a very clumsy way”

and that he had

“ventured into areas of responsibility for the Assembly and the Executive—areas that he had no right to venture into.”

Last week, Mr McGuinness voted for this Minister to have a direct say in those affairs. He said one day, “You can’t go into that area,” and the next day he voted for this Minister to take these powers and make the decisions for him.

Mr McGuinness is well and truly on record as threatening Tough Theresa, going so far as to say on 5 September this year that

“Any move by the British government to impose…welfare”

reform on Northern Ireland

“would be a huge mistake”

that would seriously undermine devolution. Of course, it was Mr McGuinness—Mad Martin—who made the huge mistake of making a threat and then not being able to follow up on it.

[Ms Ritchie]

In the hon. Gentleman’s elaboration of his debating point, perhaps he could provide some elucidation of why Sinn Féin somersaulted. What happened in that meeting with the Prime Minister on 6 November to precipitate that somersault?

[Ian Paisley]

Here is what happened: an agreement was made—an agreement that the public can cast their eye on and then support or reject. Of course, the Assembly has already indicated that it will support it. We have had the mild approach by the hon. Lady, but she should be standing up to Sinn Féin tonight, poking them in the eye and telling them that they are the ones who have rolled over. She should be joining us and supporting us in this campaign. I welcome the fact that others have stood up to them.

Mr McGuinness also made very critical comments of what he called “millionaires’ row” in this House. He said that it was because of those millionaires that these terrible welfare reforms were being introduced. As it turns out, he has now asked the same millionaires to implement them because he could not do it.

I can understand why the hon. Member for Jarrow (Mr Hepburn) and other Members in this House now look jealously at Northern Ireland. The welfare reform system, with its flexibilities, that we now have in place—and could have had over a year ago if we had been listened to then—is, to quote the Secretary of State, the most generous and best welfare reform system in the world. That is what she said last week. I welcome that fact, and I can understand why other Members are casting envious looks at Ulster at this time. I hope the flexibilities that have been introduced will demonstrate that we were correct to make the effort—both through our Department for Social Development at home and on these Benches—to secure them.

Those flexibilities should be reflected on briefly in this House. We have ensured, for example, that individuals on benefits in Northern Ireland will not be financially worse off as a result of the changes. We are ensuring that the moneys that Northern Ireland will spend will mean that a family on benefits will not be made worse off by the changes that are made—that they will be able to continue to budget on the sort of income that they have now. The frequency of universal payments that we will allow for will enable people to have payments made flexibly over a month, instead of just receiving a one-monthly payment. That is a very important change to help low-income families to manage their incomes wisely.

The split in universal credit will be flexible in Northern Ireland, so that people will not be penalised in the ways that, it is alleged in this House, mainland people in receipt of those payments could be penalised. We have also ensured the direct payment of universal credit to landlords, so that people can avoid getting into rent arrears. That is an important point to make. We have protection for those receiving housing benefit—my hon. Friend the Member for East Antrim (Sammy Wilson) touched on those changes—and we have ensured that the sanctions for those on benefits will be changed. We will ensure that there will not be waste—that the right benefit goes to the right person at the right time—but that, for example, the strict sanctions with civil penalty provisions in the Welfare Reform and Work Bill will not apply and that the sanction period will be reduced to two years. For those who may face sanctions, it is important to make the point that a more forgiving system will be put in place.

Where both people in a home are on benefits and that home breaks up, we have also ensured that one claimant cannot spite the other claimant by stopping their benefit. There will also be good flexibility for joint claims in homes. There will be changes to the medical reports system in Northern Ireland—changes that I know are jealously looked at by Opposition Members from constituencies on mainland Britain. We have lone parent flexibility, which is not available to the same extent here, and there will be an extension of discretionary housing payments in the social sector.

Those measures and many, many more will help low-paid families in Northern Ireland and people on benefits. That is something that we strive to do because it is those families who have put us on these Benches and given us the privilege to speak for them. We are the voice for those voiceless people. We were prepared to speak up for them and make this welfare change, which was coming down the tracks, more palatable than it would have been otherwise. I am very proud of the stand that my party has taken to ensure that we made those changes and secured those flexibilities.

I welcome the point that the Minister of State made to us about how the Executive will be able to reclaim some of the financial penalties that Northern Ireland has already paid—and could be paying—and which the Treasury has already taken from the block grant. I look forward to the Minister calculating what they are and writing a nice big juicy cheque to give the money back to the Northern Ireland Executive at some time in the future.

As part of the “Fresh Start” agreement, a panel will be formed under one of the best known experts, Professor Eileen Evason, who will look at how the legislation is affecting people and will advise us on it. I do not think anyone who knows Eileen Evason or has followed her career could ever say that she is a patsy for anyone or will pull her punches. She will tell it as it is, and I believe people will listen, because her expertise far surpasses that of many people who deal with these issues in Northern Ireland. I think her advice and guidance will be most welcome.

The hon. Member for South Down made some calculations. It is important to put on record the facts about the amount of money that will be available. The Stormont Castle agreement made available an average of £90 million a year to mitigate the most harmful aspects of the Welfare Reform and Work Bill. The fresh start initiative will make available £345 million over a four-year period. That is a significant difference, and that money is for the exact same purpose. In addition, the “Fresh Start” agreement is making available a further £240 million over those four years to deal with the proposed reductions in tax credits. Obviously we await the Chancellor’s statement on Wednesday to see how that will be fully calculated.

This is good for Northern Ireland. It could have been an awful lot worse. We could all easily get depressed, with some Members saying, “We just don’t want anything to do with it,” but we have to be engaged in the art of what is possible and practicable, and that is what we are trying to do as constituency Members in this House.

[Mark Durkan (Foyle) (SDLP)]

My constituency does not have the term “south” in it, although I may have to begin by slightly depressing the hon. Member for North Antrim (Ian Paisley) by responding to one of the final points he made. He made some big claims about the “Fresh Start” deal, talking about how the original Stormont House deal provided for mitigation measures of £90 million a year on average, whereas the “Fresh Start” deal involves £345 million over four years. I think most people would know that four £90 millions comes to £360 million, which is slightly more than £345 million, if we are talking about the average over four years.

Many points have been raised in the debate—points that go far and wide away from the immediate subject of the Northern Ireland (Welfare Reform) Bill. I will have to follow others in covering some of that ground, relating to the provenance of the whole debate and the Bill.

The SDLP, has been castigated and people have said, “Oh, you never tried to build consensus on welfare reform.” As I tried to explain in an intervention on my hon. Friend the Member for South Down (Ms Ritchie), as far back as when the original legislation was going through this House, we tried with other Assembly parties to build a consensus in the then Assembly, to anticipate what the implications would be and not to wait for the legislation to be passed through this House, with the Assembly and a Minister being faced with the need to take forward karaoke legislation that would not be to our taste or liking. We tried in late 2011 to get a special committee set up in the Assembly precisely to do that on an all-party basis and to feed into the legislation as it was coming through this House.

Among the issues that we said we wanted to address at that time was the bedroom tax. When the legislation was going through, the SDLP was the only party from Northern Ireland that spoke about the implications of the bedroom tax for Northern Ireland and said that measures were needed to deal with it. There we were; we were adopting that approach in this Chamber, and we were trying to work with other parties in the Assembly properly to address those issues. As my hon. Friend the Member for South Down has said, as well addressing the issues in this Chamber, we were meeting the Minister for Welfare Reform, Lord Freud. Early in 2012, he acknowledged that many of the claims made by the hon. Member for North Antrim about allowing for flexibility and the split in universal payments were promised to us. He said that if the Assembly had a unified approach to trying to get those measures, they would be made available. We were promised that the Department for Work and Pensions would have no problem if the legislation for Northern Ireland included the direct payment of housing benefit to landlords. We were also promised that the DWP would make sure that the computer system it was bringing forward would allow for that.

Much of what is being called part of the conclusion to this good “Fresh Start” approach was always available—some of us had always worked on that basis and had always advocated it inside the Assembly, yet we were being told by DUP Members, including the hon. Member for East Antrim (Sammy Wilson) who is unfortunately not in his place, that we were scaremongering when we expressed our concerns about the implications of this Bill.

The hon. Member for North Antrim, among others, has referred to the mitigation of sanctions, but again we fought and argued over that issue in the Assembly and in various all-party talks, trying to get agreement with all parties. We had useful discussions, not least with the DUP Minister for Social Development, about that and other matters. I do not think that anyone could say that at Stormont House 2014, the SDLP was found wanting in trying to make sure that we could reach some agreement and resolution on welfare reform.

As I have said, we subsequently ended up being castigated. Sinn Féin accused the SDLP of having sold out or caved in on welfare reform before anybody else, but the point we made in Stormont House was that we wanted to ensure that there would be mitigation and that any mitigation measures would be sustainable and within the devolved budget. That is why we indicated that we could go for a mitigation package. The First Minister told us on a Wednesday evening that officials were telling him that this “option C package”, as it was called—it was a combination of other options—would cost £93 million out of this year’s devolved budget.

The SDLP said that we wanted to see improvement in estimates in some areas, but that we could go with £100 million out of this year’s budget and the projections beyond that. The UUP wanted to see estimates improved and the Alliance had some concerns about the estimate being more than was allowed for in the budget, but said that it would go with the £93 million if it bought about a deal. Sinn Féin on that Wednesday evening said that it would not go with that. It said that it had to be “option C plus”, but it could not tell us what was in that option. It thought it would cost a lot more money. Sinn Féin representatives said that somebody somewhere in the building would be able to tell them, and they would be able to tell us.

By the Thursday evening, the First Minister and the Deputy First Minister came into the Executive room where the five parties were meeting, and the First Minister informed us that he and Martin had been having conversations with each other and with officials, that they now had an agreement and that it would cost £94 million out of the budget. Once again, the SDLP position was that we wanted to see the estimates and that we would allow up to £100 million. That is what helped to bring about the fact that people saw that there was a way of solving welfare reform problems. The Stormont House agreement said that proposals would be developed and would be brought to the Assembly, but whenever the legislation came to the Assembly, it was exactly the same as the draft Bill that had existed before the Stormont House agreement. That is why the SDLP tabled amendments in the Assembly. They were not Bill-shattering amendments in any way, but they nevertheless triggered a petition of concern from the DUP, which had the effect of a veto. In any case, the amendments were voted down by both Sinn Féin and the DUP.

[Ms Ritchie]

Does my hon. Friend agree that those amendments were cost-neutral, which was clearly acknowledged by the Minister for Social Development?

[Mark Durkan]

Several of them were. Some would have had cost implications, but many were cost-neutral. That was one of the arguments that the Minister made at the time. We checked whether the British Government were consulted by the Minister or anybody else and asked whether there would be a problem if the amendments were passed, but the British Government made it clear that they were not consulted and that they had not acted against our amendments in any way. They were not saying that our amendments would have threatened to derail the Stormont House agreement or were in any way in breach of it. It was entirely the decision of Sinn Féin and the DUP to veto our amendments by the petition of concern and by voting against them.

You will not want me to anticipate the Committee stage too much, Madam Deputy Speaker, but the fact is that the amendments we have tabled for the Committee stage capture some of those same amendments. I ask people to read those amendments in the light of what my hon. Friend the Member for South Down has said because they would not derail or damage the Bill.

On the wider politics of this matter I can perhaps reach some agreement with the hon. Member for North Antrim, because they involve a strange change of position on the part of Sinn Féin. All along, Sinn Féin said that it was going to oppose welfare reform completely. All along, it said that no claimant—now or in the future—would be a penny worse off as a result of any changes. SDLP Members said that we could not subscribe to that position. We said that could not pretend that we could guarantee by any tactics, in the Assembly or here, that we could protect every last penny of benefit for any existing claimant or any new claimants into the future. We were very clear, honest and honourable about that.

Sinn Féin election posters this year were on the theme of “Stop the Tory cuts”. Some of us said that Sinn Féin was in no position to stop Tory cuts unless it was in a position to stop a Tory Government, and, as a party that does not take up its seats, that was not going to happen. It was nonsense, but that is what Sinn Féin said. We were told by Conor Murphy:

“The Tories have no mandate in the north for their cuts agenda. The local parties need to make it clear that Tory cuts to public services and the welfare state are unacceptable.”

Now, apparently, those Tory cuts to the welfare state are acceptable to Sinn Féin. Martin McGuiness told us:

“I am not prepared to preside over the austerity agenda that the British government are inflicting on our executive. My conscience would not allow me to do it.”

Well, he has got over his conscience now, and he is quite happy; perhaps he is pretending to himself that he is not presiding over it by virtue of having handed the power to Westminster. I may now receive a voice-activated intervention from the Minister, who will tell us that the power has not been handed over and that Westminster will have a parallel, or concurrent, legislative power, which Stormont will also have. There will be a power switch on both walls, but only the power switch on the Westminster wall will be activated and used for the next 13 months during which, after the Bill is passed, a series of orders and regulations will be made.

We have been told about the sunset clause. Sinn Féin seems to be allowing some people to suggest, in social media, that it is a very clever thing, and that a big line is to be drawn in the sand at the end of 2016, because many of the more nefarious and controversial aspects of the current Welfare Reform and Work Bill are meant to kick in in 2017. The sunset clause, however, will apply only to the decision-making powers that are now being taken by the Secretary of State. It will not apply to the content or effect of any of the decisions that are made by him or her. All the changes that are made in direct rule legislation here, in Orders in Council and in other instruments, will still apply in 2017 and beyond.

We have heard many references to the Assembly’s legislative consent motion. We should bear in mind that it includes the words

“approves the welfare clauses of the Welfare Reform and Work Bill as initially introduced at Westminster”.

Some of us did not approve those clauses as they were initially introduced; we argued against them, and voted against them. I recall members of the DUP expressing concerns about some of those clauses, voting against them, and voting for amendments. Unusually, the legislative consent motion did not even make provision for amendments. Other such motions have not just allowed Westminster to pass a Bill, but allowed amendments to be tabled. For some reason, this motion precluded that.

Many of us are in difficulty because we are being asked, on Second Reading, to approve matters on which we have already voiced and recorded our disapproval. That applies not just to the SDLP, but to a number of other parties. We are being told to do that because it will be the great deal that will move everything forward. Members have touched on other aspects of the deal, but my concern relates directly to the Bill.

I am certainly not saying that we should set aside the mitigations and the other measures that have been so carefully agreed to. Indeed, I think that we should have done more work on those. I also think—I raised this at Stormont House in 2014—that we need to think, collectively, about whether there is the proper demarcation between Westminster and the Assembly in relation to welfare reform.

Perhaps we should look at what has been happening in Scotland. I am not suggesting that we should adopt an exact model of the Scotland Bill, but I think we should take account of some of the issues and ideas that have flowed from those debates. I think we should look to the longer term, and ensure that we do not fall into the trap of either allowing karaoke legislation to be pushed through the Assembly as a result of “budget bullying”, or creating the potential for political crises. There is a different delineation in the scope of the devolution of welfare in Scotland. I think that we may need to examine what is happening there, given the emphasis that many Members here have placed on some of the most sensitive benefits in Northern Ireland, relating to disabilities and other long-term conditions including mental ill health.

It was part of the original Stormont House deal in 2014 that parties would be prepared to look at how wider issues of devolution—not just tax, but benefits—were being handled elsewhere, with the aim of securing a more sustainable adjustment for the future. If we want to avoid the spasmodic crises in which parties end up trying to find a brink on which to teeter every time there is disagreement about important issues such as these, we may need to do something else.

When I raised the need to ensure that we were in a better position in the future and suggested ways of dealing with the medium to longer-term issues, I did not receive much support from members of other parties. The First Minister merely said that my problem was seeing around too many corners too early, and that perhaps we should just let some things go and they would be all right when we got to them. The fact is, however, that we anticipated a great deal of difficulty with welfare reform, which is why we argued for a different approach in the Assembly all those years ago, as well as here. We have been proved right, to the extent that, if we had all taken a different course together, we might be in a better position.

The Bill gives the Secretary of State power not just to translate the rules in relation to benefits from the 2012 Act, but, as the Minister has indicated, to prepare an Order in Council to translate proposals in the Welfare Reform and Work Bill. The legislative consent motion refers to “the welfare clauses”. I note that the shadow Secretary of State did not receive an answer to his very fair question, which my party colleagues also asked in the Assembly last week: what exactly is meant by “the welfare clauses”? Some Members seem to believe that they do not include tax credits, but the Treasury now counts tax credits as welfare for many purposes, including the welfare cap. We have different notions of welfare, and the welfare measures in that Bill are not restricted to conventional social security benefits; they extend to tax credits as well. We have a right to more clarity, and I hope that the shadow Secretary of State will receive a clear answer to his question.

This has been a bit confusing. When my hon. Friend the Member for South Down pointed out that not all the tax credit losses would be covered by this package, we were told that tax credits were nothing to do with it because they did not constitute devolved welfare. At the same time, however, DUP Members have claimed that the mitigation on tax credits has been the significant part of the deal, and the main justification for accepting it. They cannot have it both ways. They cannot say that it must be counted for the purpose of one side of the argument, but not for the purpose of another side.

In response to the challenge presented by the fact that some are not prepared to work for consensus, the Secretary of State may well confirm that in the Stormont House talks we made it clear that we wanted all the parties to agree that the Institute for Fiscal Studies should be invited to provide us with a quick regional analysis of the implications of the Welfare Reform and Work Bill and the tax credit changes. That would also test the Secretary of State’s argument at the time that the Welfare Reform and Work Bill was a good deal for Northern Ireland—she used exactly the same words she is using for this Bill for the Welfare Reform and Work Bill, before the Government were moved to say they would amend it or mitigate it in some way. On these measures, she said that we needed to take account of the changes in terms of the tax thresholds and the national living wage that would make good the loss. We were saying, “Let’s get the IFS to do this so we’re not just relying on figures from our own officials in the Department for Social Development or anywhere else.” Again, however—surprise, surprise—the SDLP put forward an idea for all the parties to go with, that was informed and would have been neutral and constructive, but it was not supported. That was not for lack of action by us to try to take a consensus approach and make sure all parties have a better-informed approach in that regard.

We were being told by the Secretary of State—Sinn Féin and the SDLP in particular were being told this—both publicly from the Dispatch Box and in the talks that there would not be a deal on the past if there was not a deal on welfare reform. It was said that welfare reform had to be settled and move forward or else there would be no progress on the past. But now we have a deal that gives us welfare reform moving forward in the way the Government want—entirely in the Government’s hands—and we do not have a deal on the past moving forward. People want to know how that came about; it is not only the victims who want to know that.

When we listen to Sinn Féin on this, it tells us, on the past, “No deal is better than a bad deal,” but then we ask them about welfare reform, and they tell us, “A bad deal is better than no deal.” It is a complete contradiction; the only consistency is Sinn Féin’s inconsistency and lack of principle. Of course Sinn Fein might well try to tell us, “Oh no, we’ve delivered on our promise,” because Gerry Adams’s big promise was, “No one will have a reduction to any benefit under the control of the Assembly or the Executive.” So how does Gerry keep his promise? He removes it from the control of the Assembly or Executive and hands it to direct rule.

We must remember that it is direct rule we are giving; it is going back to the old Order in Council position. Such measures cannot be amended—indeed, the sponsoring legislation for the system we have tonight cannot even be amended either, unfortunately, because of the way the allocation of time motion works. That is what we are stuck with; that is the choice Sinn Féin has made and it has yet to explain adequately why.

Sinn Féin does not have the protections it says it wants, therefore, and it now tries to pretend that we are in a completely new situation because of 8 July—because the Chancellor announced a Budget on 8 July that changed everything and threatened a lot more people. We all knew there was going to be a Budget on 8 July. In fairness, Sinn Fein, like ourselves, pointed out during the election, and even back last year at Stormont House, that whatever package we had, if the Tories got back into government other cuts could be sought. There was speculation: sums of £12 billion or £16 billion were mentioned. We also knew that, even if Labour returned to government, it was committed to applying the welfare cap on a UK-wide basis. So we knew there were going to be difficulties. Therefore, for Sinn Féin to pretend that a completely new situation that nobody could have predicted came about with the return of the Conservative Government and the Budget of 8 July is completely wrong.

Sinn Féin’s argument back in July was that all parties should work together in facing the Government and we should join forces with Scotland and Wales as well. When some of us looked for that approach at the recent Stormont House talks, we found there were no real takers for it, not even Sinn Féin, which had advertised itself as the main sponsor and advocate of that way forward.

People will want to know why we have come to this position, therefore. They will want to know why Sinn Féin has used the so-called threat of collapse of the institutions to collapse its own position. We have known for some time that the DUP has been in something of a roll-over mode in relation to welfare reform legislation, because the DUP position has been that once the legislation went through Westminster—[Interruption.] The DUP position has been that, once the legislation went through Westminster, we have no choice but to go along with it; that has essentially been the line it has pushed in the Assembly. It also never objected to the fine and never raised any argument against it. One would think that it was almost in on it at the beginning as a tactic. The threat of a fine was never used before in relation to welfare changes, which were not always reflected in Northern Ireland on the basis of parity, but it was used this time. But essentially, the DUP’s position has been to say, “We weren’t really for that legislation when it went through Westminster”, even though there were parts of it that they did not really oppose. DUP Members actually voted down amendments from the House of Lords, including measures to protect child benefit from the benefit cap. The DUP’s position has been to say, “We have to comply with this”, whether in the name of parity or to avoid fines. It has adopted a roll-over approach.

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[Ms Ritchie]

Perhaps the Minister could take a little liberty and spell out some of the mitigation measures relating to in-work credits that the Chancellor might outline on Wednesday as part of the comprehensive spending review.

[Mr Wallace]

As much as I might like to say that the Chancellor rings me up to consult me on such major issues from time to time, I, like the hon. Lady, will have to wait and see.

I thank the hon. Member for Strangford (Jim Shannon) for his kind comments about me and the Secretary of State. I want to place on the record that without the Secretary of State’s determination and patience this deal may never have happened. Patience is a quality that many politicians do not possess, but she certainly does. [Interruption.] I am always for a good career move, but it is true.

It is tempting to follow the hon. Member for North Antrim down the path of his speech about Unionism and the sovereign Parliament, but I shall resist doing so. Suffice it to say that I will help him to lobby the Mayor of London for more buses from Wrightbus in his constituency, and I will do everything I can to help him and Ministers in the Executive to facilitate jobs to mitigate the losses at Michelin. Ministers from the British Government are all here to help job prospects in Northern Ireland, and I will continue to do so.

I say to the hon. Member for Foyle that we had to move forward on the issue of tax credits and welfare reform in Northern Ireland. As I said earlier, the fact is that there was no consensus, and in the end it was important to resolve this issue. Northern Ireland could not continue to lose the money every day and every week because it could not implement the welfare changes that people deserve.