Welfare Benefits Up-rating Bill

Debate between Lord Austin of Dudley and Greg Mulholland

Tuesday 8th January 2013 Commons Chamber

[Greg Mulholland]

It is indeed about choices, and two parties are having to make those choices while the Labour party refuses to make any choices. Labour Members are saying nothing about what they would do or even telling us a single cut that they would reverse.

Ministers from the two parties have sat down and developed a reasonable strategy for reducing the welfare budget. I remind the House that it costs us more than £220 billion a year—more than we spend on health, education and defence combined. Labour Members conveniently forget that they went into the last election with a commitment to reduce that.

At the same time, the Liberal Democrats were clear that there were red lines that we would not cross. We clearly said that we would not accept getting rid of housing benefit for the under-25s; penalising people who have more children; a freeze on benefits; a reduction in benefits; or £10 billion in cuts. What we have now is a much smaller reduction in the budget, but one that is still significant and necessary. The solution is that everybody on benefits, apart, crucially, from those most vulnerable groups, as it is welcome that DLA, attendance allowance, disability carer and pension premiums in the ESA support group have been excluded and will continue to get benefits uprated by CPI—

[Ian Austin]

Will the hon. Gentleman give way?

[Greg Mulholland]

No. The hon. Gentleman has been extremely rude in this debate, and I have taken two interventions, so I am certainly not going to let him intervene. If he gets some manners, I might think about it on a future occasion.

It was a tough choice, but Ministers, to their credit, worked together in the interests of the country and came up with something that was as fair and reasonable as possible. I do not want to have to do this. I do not want to see any reduction in benefits unless absolutely necessary, but we need to remember that this is temporary. This is a temporary measure which can and will be reversed as and when the economy improves.

The one thing I would say to my right hon. Friend the Secretary of State is that we must get the language right. Talk of trying to divide those who work from those who do not has been unhelpful. On worklessness, as a former member of the Work and Pensions Committee in the last Parliament, I can tell the House that there was an appalling benefits trap under that Government, but they did not have the courage to address it. All members of the Committee said that again and again, and this Government are doing something about it. It is not easy and will not be done overnight, but the universal credit will ensure that people have a safety net and that work pays. That is why it is being introduced, and today’s changes also need to be seen in that context.

It was a Liberal who brought in the welfare state, and that is one of our proudest achievements. The principles in the Beveridge report were for a safety net to assist those who cannot work for whatever reason. If those principles were being breached today, I would not support the Bill, but they are not. Indeed, the level of benefits that we have will increase—admittedly not as much as we would like—and I hope that in the future we will review the situation. This is a tough choice, but it is one that I am prepared to make.