Welfare Reform (Welsh Valleys)

Lord Murphy of Torfaen Excerpts

Tuesday 11th November 2014 Westminster Hall

[Alun Cairns]

In a moment—with the greatest of respect, I would like to make an element of progress, certainly at the outset.

We have taken steps to deal with the legacy of a welfare system that encouraged dependency and penalised those who wanted to work. The benefits system was clearly broken. It did not work for claimants, for the economy or the people of those communities or for the nation’s finances. According to the Work and Pensions Committee, a parent who increased their hours from 16 to 30 hours of work a week would gain less than £1 for every extra hour they worked. It was hardly a system that incentivised people to do the right thing. That sort of example underlines absolutely the need for reform.

[Paul Murphy (Torfaen) (Lab)]

Does the Minister accept the thrust of the Beatty-Fothergill report? In Torfaen, which is a valleys constituency, £34 million is sucked out of the local economy every year, depriving it of expansion and entrepreneurship in my constituency, just like all the other Welsh constituencies. Do the Government accept that that is a really serious issue that we need to look at?

[Alun Cairns]

I am grateful to the right hon. Gentleman for making that point, but that report does not take account of the incentives that are built into the welfare reforms, nor does it recognise the increased income that the poorest in the community will receive from the universal credit. I will come to that.