Working-age Welfare System
Debate between Baroness Sherlock and Baroness O'Grady of Upper Holloway(1Â month ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness O’Grady of Upper Holloway (Lab)
Can my noble friend the Minister confirm that official figures show that spending on non-pensions social security will remain at the same percentage of GDP for this Parliament—at around 5%—and that we should deal with the root causes rather than the symptoms of dependence on social security by creating decent jobs, decent homes and decent healthcare?
Baroness Sherlock (Lab)
My noble friend is absolutely right about the level of GDP. It is around 4.9% of GDP and, as a share of GDP, spending on social security is due to remain broadly stable all the way up to 2030-31—I say in passing that, on that basis, overall welfare spending is in fact forecast to rise by less than half as much as it did under the previous Government. What is most important is that as a Government we are still committed to reforming the system. Certainly, we want to make spending sustainable, but we also want to improve outcomes. It is not good for people to spend most of their lives with no opportunity to work. We know that is the problem. We have to reform the system, and we are committed to doing that.
Parental Leave and Pay Review
Debate between Baroness Sherlock and Baroness O'Grady of Upper Holloway(8Â months, 2Â weeks ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister of State, Department for Work and Pensions (Baroness Sherlock) (Lab)
My Lords, the parental leave and pay review launched on 1 July 2025, and we expect it to run for a period of 18 months. The review will conclude in early 2027 with a set of findings in which the Government will outline next steps for taking any reform forward to implementation.
Baroness O'Grady of Upper Holloway (Lab)
My Lords, I thank my noble friend for that Answer, but does she accept that the case for change is urgent? Most forms of parental leave are unpaid or pitifully low paid: ÂŁ187 a week equates to less than half the national minimum wage, and many mums and dads and partners simply cannot afford to take the pay cut necessary to spend time with their babies and children. The benefits are clear: there is compelling evidence that if, for example, paternity leave were increased to six weeks at 90% of pay, that would improve economic participation and growth and, of course, narrow the gender pay gap. Will my noble friend agree to consider urgently bringing the conclusions of the review forward so that young families can get the start in life they deserve?
Baroness Sherlock (Lab)
My Lords, I pay tribute to the advocacy not only of my noble friend but of her former employer, the TUC. The Government have met with many stakeholders and had many encouragements to act in lots of different directions. My noble friend is absolutely right that the system needs reform. We know that it does not work for everybody at the moment. Having a child is a joyous occasion, but it is a challenge for many parents. We need to get this right. The Government opened a call for evidence, and we had almost 1,500 responses. We need to consider those carefully and find a way forward that provides a proper balance for employers, employees and the Exchequer. We will get this right.